Red Label Music Publ'g, Inc. v. Chila Prods.
This text of 388 F. Supp. 3d 975 (Red Label Music Publ'g, Inc. v. Chila Prods.) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
Virginia M. Kendall, United States District Judge
Everybody who grows up in Northern Illinois or is a professional football fan knows the legend of the 1985 Chicago Bears. After the single loss in their 15-1 *979season, "da Bears" boldly became the first sports team ever to record a hip-hop song. Two months later, that team rapped and shuffled their way to an historic 46-10 victory over the New England Patriots in Super Bowl XX. The Super Bowl Shuffle arguably guaranteed that win, and in the process, it captured the hearts and imaginations of many. Its popularity remains to this day; indeed, it prompted this federal lawsuit.
The song is an original and artistic expression, so it is the creators' (now owners') intellectual property. The plaintiffs hold the copyrights to the famous record, meaning they determine whether and under what terms others may duplicate it. They allege the defendants infringed these rights because they produced and distributed a documentary that includes clips of the work without first receiving the plaintiffs' permission to do so. The defendants argue this was a "fair use" of the material because their film is a historical commentary on the Bears' season and it only uses brief excerpts of the video. Therefore, they maintain they need not pay the plaintiffs to license their work. Because the documentary was a fair use of the music video, the Court enters judgment for the defendants.
BACKGROUND
Red Label Music Publishing, Inc. owns the copyrights to the words, music, sound recording, and video of the Super Bowl Shuffle. (Dkt. 6 ¶¶ 1, 8, 29.) Red Label's agent, Renaissance Marketing Corporation, licenses the use of these rights to others. Id. ¶¶ 1, 9, 29. Together, Red Label and Renaissance sued Chila Productions, Richard Lenkov, and Scott Prestin in federal court because they produced '85: The Greatest Team in Football History : a film released in 2016 that copied portions of the Super Bowl Shuffle without the owner's or agent's permission.1 Id. ¶¶ 2-3, 6, 10-12, 14, 33-34, 36. Red Label and Renaissance assert that these defendants infringed on their intellectual property rights and therefore violated the Copyright Act. See
The documentary comments on the Super Bowl Shuffle 's role in the season between the 48:50 and 54:01 marks. (Dkt. 47-1.) That portion of the film features eight seconds of the song's music, only four of which contain lyrics.
The defendants moved for judgment on the pleadings (under Federal Rule of Civil Procedure 12(c) ), or in the alternative, for summary judgment (under Rule 56). (Dkt. 46.) The plaintiffs moved to strike the plaintiffs' fair use affirmative defenses (Dkt. 107) and opposed summary judgment on the merits. Because the parties presented matters outside the pleadings and the Court did not exclude them, Rule 12(d) required the Court to treat the defendants' motion as one for summary judgment under Rule 56. (Dkt. 113.) The Court gave all parties a reasonable opportunity to present any material pertinent to this motion.2
*980STANDARD OF REVIEW
Summary judgment is proper when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a) ; see, e.g. , Reed v. Columbia St. Mary's Hosp. ,
Additionally, a court "may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Fed. R. Civ. P. 12(f). In so doing, the court exercises considerable discretion. See Delta Consulting Grp., Inc. v. R. Randle Const., Inc.
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Virginia M. Kendall, United States District Judge
Everybody who grows up in Northern Illinois or is a professional football fan knows the legend of the 1985 Chicago Bears. After the single loss in their 15-1 *979season, "da Bears" boldly became the first sports team ever to record a hip-hop song. Two months later, that team rapped and shuffled their way to an historic 46-10 victory over the New England Patriots in Super Bowl XX. The Super Bowl Shuffle arguably guaranteed that win, and in the process, it captured the hearts and imaginations of many. Its popularity remains to this day; indeed, it prompted this federal lawsuit.
The song is an original and artistic expression, so it is the creators' (now owners') intellectual property. The plaintiffs hold the copyrights to the famous record, meaning they determine whether and under what terms others may duplicate it. They allege the defendants infringed these rights because they produced and distributed a documentary that includes clips of the work without first receiving the plaintiffs' permission to do so. The defendants argue this was a "fair use" of the material because their film is a historical commentary on the Bears' season and it only uses brief excerpts of the video. Therefore, they maintain they need not pay the plaintiffs to license their work. Because the documentary was a fair use of the music video, the Court enters judgment for the defendants.
BACKGROUND
Red Label Music Publishing, Inc. owns the copyrights to the words, music, sound recording, and video of the Super Bowl Shuffle. (Dkt. 6 ¶¶ 1, 8, 29.) Red Label's agent, Renaissance Marketing Corporation, licenses the use of these rights to others. Id. ¶¶ 1, 9, 29. Together, Red Label and Renaissance sued Chila Productions, Richard Lenkov, and Scott Prestin in federal court because they produced '85: The Greatest Team in Football History : a film released in 2016 that copied portions of the Super Bowl Shuffle without the owner's or agent's permission.1 Id. ¶¶ 2-3, 6, 10-12, 14, 33-34, 36. Red Label and Renaissance assert that these defendants infringed on their intellectual property rights and therefore violated the Copyright Act. See
The documentary comments on the Super Bowl Shuffle 's role in the season between the 48:50 and 54:01 marks. (Dkt. 47-1.) That portion of the film features eight seconds of the song's music, only four of which contain lyrics.
The defendants moved for judgment on the pleadings (under Federal Rule of Civil Procedure 12(c) ), or in the alternative, for summary judgment (under Rule 56). (Dkt. 46.) The plaintiffs moved to strike the plaintiffs' fair use affirmative defenses (Dkt. 107) and opposed summary judgment on the merits. Because the parties presented matters outside the pleadings and the Court did not exclude them, Rule 12(d) required the Court to treat the defendants' motion as one for summary judgment under Rule 56. (Dkt. 113.) The Court gave all parties a reasonable opportunity to present any material pertinent to this motion.2
*980STANDARD OF REVIEW
Summary judgment is proper when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a) ; see, e.g. , Reed v. Columbia St. Mary's Hosp. ,
Additionally, a court "may strike from a pleading an insufficient defense or any redundant, immaterial, impertinent, or scandalous matter." Fed. R. Civ. P. 12(f). In so doing, the court exercises considerable discretion. See Delta Consulting Grp., Inc. v. R. Randle Const., Inc. ,
Courts will strike pleadings that are insufficient as a matter of law, "meaning they bear no relation to the controversy or would prejudice the movant." Gress v. Reg'l Transportation Auth. , No. 17-CV-8067,
ANALYSIS
Before turning to the defendants' motion for summary judgment based on fair use, the Court addresses the plaintiffs' motion to strike that affirmative defense, seeing *981that if the Court does so then that will necessarily moot the defendants' motion.
I. Motion to Strike
The first issue is whether the plaintiff's motion was even timely. Rule 12(f)(2) empowers parties to move to strike "either before responding to the pleading or, if a response is not allowed, within 21 days after being served with the pleading." Fed. R. Civ. P. 12(f)(2). Here, four defendants answered the amended complaint on February 4, 2019 (Dkt. 45, 51), one defendant answered February 19, 2019 (Dkt. 77), and five other defendants answered on March 6, 2019 (Dkt. 96, 98-101). The plaintiffs then moved to strike the fair use affirmative defenses the defendants asserted in their answers on March 8, 2019. (Dkt. 107.) Because the defendants did not counterclaim, the plaintiffs had no other opportunity to respond to the answers, leaving them with 21 days-or until March 27, 2019-to move to strike. See Fed. R. Civ. P. 12(a)(3), (7). The motion was therefore timely as to the five defendants who answered on March 6 and the one defendant who answered on February 19. But the answer is less clear as to the four defendants who answered on February 4.
The plaintiffs cite Fed. Deposit Ins. Corp. v. Giannoulias , No.
The Court also rejects the plaintiffs' framing of their motion to strike as a cross-motion-constituting part of their response to the defendants' motion for judgment on the pleadings or, in the alternative, for summary judgment-approved for filing on March 8, 2019. That claim has no basis in federal civil procedure. If the plaintiffs truly cross-moved, they would have filed their own motion for judgment on the pleadings, or in the alternative, for summary judgment. They did not. They moved to strike under Rule 12(f), not for judgment on the pleadings under Rule 12(c) nor for summary judgment under Rule 56. Those are two very different procedural devices that request different judicial relief. Because their motion to strike was independent, the deadline in Rule 12(f) applies.
Additionally, the plaintiffs rely on Doe v. Freeburg Cmty. Consol. Sch. Dist. No. 70 , No. 10-CV-458-JPG,
Even if the motion was timely, the foregoing discussion reflects the problem with the plaintiffs' motion: it seeks a merits disposition on the defendants' fair use defenses, making it inappropriate for resolution on a motion to strike under Rule 12(f). Instead, the proper path to take would have been for the plaintiffs to move under Rule 12(c), or in the alternative, under Rule 56, like the defendants did and as the plaintiffs seemingly now concede they effectively did. That the plaintiffs think their case against fair use is so strong is entirely beside the point. That is not a reason to strike an affirmative defense. The Rule says that a court may only strike an "insufficient defense," not a defense that is colorable yet ultimately a loser on the merits.
As a general matter, fair use is not an insufficient defense in a copyright infringement case. Often, it is the copyright infringement case. Cf. Atkins v. Pickard ,
To be sure, the question of what qualifies as an insufficient defense within the meaning of the Rule remains a bit of an open one in this Circuit. See, e.g. , Maui Jim, Inc. v. SmartBuy Guru Enterprises , No. 1:16 CV 9788,
Fair enough, an affirmative defense comprising bare bones conclusory allegations, to use the terminology, is likely sufficient to strike the defense. But the inquiry is whether it is necessary to strike the defense as it is necessary to dismiss a claim. On the one hand, Rule 8(a)(2) calls for "a short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2). On the other hand, Rule 8(b)(1)(A) requires a party to "state in short and plain terms its defenses to each claim asserted against it." Id. at 8(b)(1)(A). Indeed, "[e]ach allegation must be simple, concise, and direct." Id. at 8(d)(1). Perhaps, then, the Twombly - Iqbal framework should apply, considering the nearly matching text.
*983So says the Second Circuit. Just this year, it noted the divide amongst courts and commentators, then "conclude[d] that the plausibility standard of Twombly applies to determining the sufficiency of all pleadings, including the pleading of an affirmative defense, but with recognition that, as the Supreme Court explained in Iqbal , applying the plausibility standard to any pleading is a 'context-specific' task." GEOMC Co. v. Calmare Therapeutics Inc. ,
In addition, the nature of the affirmative defense matters because the "the facts needed to plead [it] ... may not be readily known to the defendant, a circumstance warranting a relaxed application of the plausibility standard."
The Second Circuit's approach is persuasive, and the Court follows its lead. Twombly and Iqbal provide a helpful frame of reference for the affirmative defense analysis; however, courts should remain cognizant of the specific context within which these issues often arise and therefore typically give defendants some slack in pleading them. Applying this standard here, the defendants' fair use defense is plausible. Although not a model pleading by any stretch of the imagination, the defendants alleged facts that enable the Court to draw the reasonable inference that they are not liable for the misconduct alleged. Consequently, timely or not, the Court substantively denies the plaintiffs' motion to strike.3 Still, the Court appreciates their arguments and takes them seriously, and at this point moves on to the merits to discuss them in their proper place.
II. Fair Use
Fair use is a statutory defense to a claim of copyright infringement. See Kienitz v. Sconnie Nation LLC ,
A. Purpose and Character of the Use
The first fair use factor concerns "the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational *984purposes."
Here, '85: The Greatest Team in Football History is a biographical documentary about the 1985 Chicago Bears, one of the most famous and successful teams in NFL history. Over the course of approximately 100 minutes, the film reviews the span of the entire season through the eyes of former players, coaches, and fans. (Dkt. 47-1.) For around five of those minutes-indeed, halfway through the documentary-it comments on the Super Bowl Shuffle.
The players recorded the song to entertain their fans and raise money for those in need.
It follows, then, that the purpose and character of the documentary is to comment on the sport-social phenomenon that was the 1985 Chicago Bears. This kind of historical commentary that documentary filmmakers often produce adds something new to a music video that was originally intended to entertain and raise money. See § 107 (preamble); Campbell ,
The film uses snippets of the Super Bowl Shuffle "as part of the historical record to tell stories of past drafts, major events in [Bears] history, and player careers."
Reinforcing this finding, the portions of the protected video and audio are-in large part-not present in the documentary. The filmmakers used the song for eight seconds in the 100-minute documentary, only four of which contain lyrics. '85: The Greatest Team in Football History does not utilize any of the famous players' individual verses in the song, nor does it play the chorus in its entirety. As a matter of fact, the song's title, the Super Bowl Shuffle , never appears in the relevant clips. The video portions, for whatever they are worth, comprise 59 seconds total. The producers broke them up into 16 separate clips that last between one and eight seconds, only one of which includes music.
The Super Bowl Shuffle is not serving its original function of entertainment in the film. In fact, "[i]t serves [almost] no expressive *985function at all, but instead acts simply as a historical guidepost ... within a video[ ] that construct[s] new narratives about the history of the [Bears] and the NFL."
It is '85: The Greatest Team in Football History that now serves an expressive function. See
It is no answer that the defendants produced the documentary for commercial gain. This really only comes up when the alleged infringement substitutes for the copyrighted work in the market. See Campbell ,
The first factor weighs in favor of fair use because the Shuffle 's presence in the film is "purely descriptive and designed merely to preserve a specific aspect of [Bears] history."
B. Nature of the Copyrighted Work
The second factor focuses on "the nature of the copyrighted work."
*986C. Amount and Substantiality of the Portion Used
The third fair use factor considers the amount taken by the infringers "in relation to the copyrighted work as a whole."
As previously determined, the filmmakers' use of the Super Bowl Shuffle -heartful or not-was insubstantial.4 The documentarians only used eight seconds of the song's music in the film, and of those eight seconds, only four include the lyrics. The song itself is nearly six minutes long, so the defendants' use of a fraction of it (2%) was no more than necessary to serve as a historical reference point in the commentary. The 16 one-to-eight second video clips, totaling 59 seconds, fare no different. They make up a small portion of the Shuffle (17%) and an even smaller portion of '85 (1%). That leads the Court to weigh this factor in favor of fair use.
D. Effect of the Use Upon the Potential Market
Finally, that brings the analysis to the fourth factor: market effect. See
Still, "[m]arket harm is a matter of degree, and the importance of this factor will vary, not only with the amount of harm, but also with the relative strength of the showing on the other factors."
In this case, the plaintiffs do not argue that '85: The Greatest Team in Football History affected the market for full recordings, whether they be audio or audiovisual, of the Super Bowl Shuffle. Rightly so, because no one would purchase the right to view '85 as a substitute for purchasing the Shuffle. It is frankly inconceivable that hearing a clip of the song in the documentary would dissuade a listener from purchasing it if she was otherwise predisposed to do so.
That said, "a copyright holder is entitled to demand a royalty for licensing others to use its copyrighted work, and that the impact on potential licensing revenues is a proper subject for consideration in assessing the fourth factor." Am. Geophysical Union v. Texaco Inc. ,
Although confused in the briefing, the defendants fail to consistently deal with the fact that the 'market' in fair use cases means the potential market for not only the original work, but also derivative uses and licensing rights. See, e.g. , Thomas Plotkin & Tarae Howell, "Fair Is Foul and Foul Is Fair:" Have Insurers Loosened the Chokepoint of Copyright and Permitted Fair Use's Breathing Space in Documentary Films? ,
They would not be alone in doing so. See Campbell ,
The plaintiffs, though, are publishers, so they "can ... be expected to have the evidence as to availability of licenses for their own works. It is therefore reasonable to place on the [p]laintiffs the burden of going forward with the evidence on this question." Cambridge Univ. Press v. Patton ,
Regarding their evidence, the plaintiffs start by asserting that the defendants never paid them licensing fees, so they have at least lost that money they are owed. But "a copyright holder can always assert some degree of adverse affect on its potential licensing revenues as a consequence of the secondary use at issue simply because the copyright holder has not been paid a fee to permit that particular use." Am. Geophysical Union ,
Granted, the potential uses of the Super Bowl Shuffle include the selling of permission to reproduce portions of it in shows or films like the defendants' documentary. The plaintiffs, for their part, demonstrated that they do license such reproduction, so *988a licensing market does exist here. It is not determinative, however, that the plaintiffs license excerpts of the Shuffle. "In other words, the fact that [the] [p]laintiffs have made paying easier does not automatically dictate a right to payment." Cambridge Univ. Press ,
Here, the plaintiffs failed to articulate any tangible way that the defendants' documentary reduced or will reduce the potential licensing market for clips of the Super Bowl Shuffle. The documentary's use of the clips is "too few, too short, and too small in relation to the whole" to undercut the market for clips of the Shuffle. Monster Commc'ns, Inc. v. Turner Broad. Sys., Inc. ,
The insignificant reproduction of portions of the Super Bowl Shuffle in a documentary serves a different market function than the song does standing alone. The secondary use does not supplant or substitute for the primary. Driving this conclusion is the fact that this case "concerns not the market for [the] [p]laintiffs' original works themselves or for derivative works based upon those works, but rather a market for licenses to use [the] [p]laintiffs' works in a particular way." Cambridge Univ. Press ,
Because the evidence shows that there is some market for clips of the Super Bowl Shuffle , the value of plaintiffs' copyrights may have suffered a little damage. More to the point, widespread use of similar unlicensed experts could cause substantial harm to the potential market. The problem is that the defendants are not in the business of licensing audiovideo clips like the plaintiffs are. The parties operate in significantly different markets. The defendants do not compete with the plaintiffs in any way, shape, or form.
The contrast between a feature-length film and a series of seconds-long snippets could not be starker. It would be a different story if, instead of selling a Chicago Bears documentary, the defendants sold Super Bowl Shuffle clips. As a result, if the defendants streamed just the clips over the internet, then they might replace the plaintiffs' clips in the market. For instance, web sites wishing to show portions of the Super Bowl Shuffle could choose to enter licensing agreements with the defendants rather than the plaintiffs. On top of that, internet users searching for Shuffle clips may be drawn by the defendants' clips to web sites other than the plaintiffs', depriving them of their opportunity to advertise and sell other products to those users. But nothing like that happened here. See Video Pipeline, Inc. v. Buena Vista Home Entm't, Inc. ,
*989The relevant market that fair use concerns itself with is "the market for plaintiffs' 'expression,' and thus it is the effect of [the] defendants' use of that expression on [the] plaintiffs' market that matters, not the effect of [the] defendants' work as a whole." NXIVM Corp. v. Ross Inst. ,
Factor four is necessarily intertwined with factor one, and as stated previously, the potential purchasers of Super Bowl Shuffle clips will not purchase the documentary from the defendants instead of the clips themselves from the plaintiffs. Cf. Elvis Presley Enterprises, Inc. v. Passport Video ,
* * *
All told, the first and third factors weigh in favor of fair use, while the second and fourth are neutral at best. Taken together, the defendants' use of Super Bowl Shuffle clips in '85: The Greatest Team in Football History was a fair use of the plaintiffs' copyrights. Importantly, "a finding of fair use here does not translate to a finding of fair use in each instance where plaintiff's copyrighted works have been infringed. Thus, potential infringers of plaintiff's copyrighted works, to the extent that they exist, are likely to seek a license to avoid ... litigation." Hofheinz v. AMC Prods., Inc. ,
Fair use "protects filmmakers and documentarians from the inevitable chilling effects of allowing an artist too much control over the dissemination of his or her work for historical purposes." Bouchat ,
Were we to require those wishing to produce films and documentaries to receive permission from copyright holders for fleeting factual uses of their works, we would allow those copyright holders to exert enormous influence over new depictions of historical subjects and events. Such a rule would encourage bargaining over the depiction of history by granting copyright holders substantial leverage over select historical facts. It would force those wishing to create videos and documentaries to receive approval and endorsement from their subjects, who could 'simply choose to prohibit unflattering or disfavored depictions.'
Bouchat ,
*990CONCLUSION
At day's end, the defendants' use of the plaintiffs' copyrights was fair. The Court accordingly grants the defendants' motion for summary judgment (Dkt. 46) and denies the plaintiffs' motion to strike (Dkt. 47).
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