Shady Records, Inc. v. Source Enterprises, Inc.

351 F. Supp. 2d 74, 71 U.S.P.Q. 2d (BNA) 1355, 2004 U.S. Dist. LEXIS 10796, 2004 WL 1325795
District Court, S.D. New York·Decided June 8, 2004·No. 03 Civ. 9944(GEL)·Published·Cited by 1 cases

Opinion

OPINION AND ORDER

LYNCH, District Judge.

In this action for copyright infringement, Shady Records, Inc. (“Shady”), a music publisher, sues Source Enterprises, Inc. (“Source”), a magazihe publisher, and related defendants, claiming that Source infringed its copyrights in two pieces of recorded music. Shady claims to hold copyrights in the songs as the assignee of Marshall Mathers (a prominent recording artist professionally known as Eminem) and a co-author. Shady charges that Source, whose magazine has been critical of Mathers, infringed those, copyrights by posting the two recordings, as well as the complete text of their lyrics, on its website. Source counterclaims against Shady and Mathers, claiming in turn that it holds the rights to the songs. Mathers moves to dismiss the counterclaims as to him on various grounds, and for sanctions pursuant to Rule 11, Fed.R.Civ.P. The motion to dismiss will be granted, and the motion for sanctions, denied. .

BACKGROUND

Source publishes a magazine devoted to the genre of popular music known as rap and the broader cultural movement known as hip-hop. Like several other genres of American popular music, rap originated in the African-American community. While the music is enjoyed by many people of all races, nearly all of its most popular and creative practitioners have been African-American.

Mathers is the most prominent of the handful of white hip-hop artists who have been artistically or commercially successful. Like other white musicians who have been successful in musical genres or forms pioneered by Africans or African-Americans, from Benny Goodman to Elvis Presley to Paul Simon¡ Mathers has been accused of exploiting black culture; he in turn has asserted his respect for his black role models and peers, and has maintained that he comes by his hip-hop success honestly, as a young man from a poor urban background who has long been associated with African-American friends, neighbors and mentors. Source’s principals have been vocal critics of Mathers, and have derided his claims to hip-hop authenticity.

It was thus a matter of some significance in this on-going cultural debate when Source came into possession of a tape recording of two rap songs purportedly recorded by Mathers as a youth, before the onset of his commercial fame and success, which use crude racist invective to denigrate black women. Source loudly publicized its discovery, asserting that the emergence of these youthful recordings *76 proved its point about Mathers’s exploitative relation to black people and black culture. Mathers apologized for what he described as youthful indiscretions occasioned by romantic disappointment. ■

It is for fans of hip-hop, and not for this Court, to decide what if anything this episode means for their opinions of Mathers as a man and as an artist. The First Amendment fully protects Mathers’s musical commentaries on life, his critics’ attacks on him and his music, and everyone else’s right to listen to the music or not and form his or her own opinions. But the controversy over Mathers, his music, and his relation to black culture helps explain the bitterness surrounding what would otherwise be a rather straightforward copyright case.

In support of its journalistic scoop and critical commentary, Source chose to make the sounds and texts of the allegedly racist recordings available to its public in their entirety on its website. While acknowledging Source’s right to make fair use of the recordings in reporting the news and expressing its opinions of Mathers’s life and work, Shady brought this action, maintaining that Source’s publication of the entirety of the recordings and lyrics went beyond fair use, and infringed its copyright.

Shady sought and obtained a temporary restraining order from this Court prohibiting Source’s use of more than a limited portion of the recordings. A consolidated trial on Shady’s motion for a preliminary injunction and on the merits of the underlying action has been scheduled. In the meantime the parties have skirmished on a number of fronts, including the precise contents of the restraining order that remains in place, various discovery issues, and a contempt motion in which Shady contends that Source deliberately failed to comply with the Court’s order. That motion is addressed in a separate Opinion, also issued today.

In addition to answering the complaint, Source counterclaimed, seeking a declaratory judgment that it owned the rights to the songs, deriving its ownership from yet another purported co-author. Shady has answered these counterclaims, which, insofar as they affect Shady, are simply the flip side of Shady’s own claims. The eventual trial of the case will determine, among other things, which party has a valid copyright in the songs. Mathers, however, moves to dismiss the counterclaims as to him. That motion is the subject of this opinion.

DISCUSSION

I. STANDARD FOR MOTION TO DISMISS

In the context of a motion to dismiss, the Court accepts “as true the facts alleged in the complaint,” Jackson Nat’l Life Ins. Co. v. Merrill Lynch & Co., 32 F.3d 697, 699-700 (2d Cir.1994), and may grant the motion only if “it appears beyond doubt that the [pleader] can prove no set of facts in support of his claim which would entitle him to relief.” Thomas v. City of New York, 143 F.3d 31, 36 (2d Cir.1998) (internal citations omitted). The court must view the pleading in the light most favorable to the non-moving party, and resolve all doubts in his or her favor. Albright v. Oliver, 510 U.S. 266, 267, 114 S.Ct. 807, 127 L.Ed.2d 114 (1994). The “issue is not whether [the. claimant] will ultimately prevail but whether the claimant is entitled to offer evidence to support the claims.” Bemheim v. Litt, 79 F.3d 318, 321 (2d Cir.1996) (internal quotation marks and citations omitted). When deciding such a motion, the Court may consider documents attached to the complaint as exhibits or incorporated in it by refer *77 ence, and such facts as axe suitable for judicial notice pursuant to Fed.R.Evid. 201. Kramer v. Time Warner Inc., 937 F.2d 767, 773 (2d Cir.1991).

II. CLAIMS AGAINST MATHERS

A. Copyright Claims

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Shady Records, Inc. v. Source Enterprises, Inc., 351 F. Supp. 2d 74, 71 U.S.P.Q. 2d (BNA) 1355, 2004 U.S. Dist. LEXIS 10796, 2004 WL 1325795 (S.D.N.Y. 2004).

351 F. Supp. 2d 74 (Shady Records, Inc. v. Source Enterprises, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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