Spurlock v. Thomson Reuters America Corporation

CourtDistrict Court, S.D. New York
DecidedMarch 1, 2022
Docket1:20-cv-09135
StatusUnknown

This text of Spurlock v. Thomson Reuters America Corporation (Spurlock v. Thomson Reuters America Corporation) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spurlock v. Thomson Reuters America Corporation, (S.D.N.Y. 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ---------------------------------------------------------------------- X : BRIAN SPURLOCK et al., : : Plaintiffs, : 20 Civ. 9135 (JPC) : -v- : OPINION AND ORDER : THOMSON REUTERS AMERICA : CORPORATION et al., : : Defendants. : : ---------------------------------------------------------------------- X

JOHN P. CRONAN, United States District Judge:

Plaintiffs, who are freelance photographers, commenced this action against Defendants for the unauthorized and infringing use of Plaintiffs’ photographic works under the Copyright Act of 1976, 17 U.S.C. § 101, et seq. Defendants Thomson Reuters America Corporation, Adobe Inc., and Sipa Press, Inc. (the “Moving Defendants”) move to dismiss the Complaint pursuant to Federal Rule of Civil Procedure 12(b)(6), or alternatively for summary judgment pursuant to Rule 56 or to stay this action pending the outcome of an arbitration commenced by Plaintiffs against non-party Imagn Content Services, LLC (“Imagn”). For the reasons set forth below, the Court grants the Moving Defendants’ motion to stay this action pending Plaintiffs’ arbitration with Imagn, and denies without prejudice their motions to dismiss and for summary judgment. I. Background A. Facts1 1. The Contributor Agreements Plaintiffs are professional freelance photographers and photojournalists “who make their

living primarily by obtaining media credentials to photograph sporting events and then subsequently licensing their photographs to various media outlets.” Dkt. 1 (“Compl.”) ¶ 28. Plaintiffs each license and distribute their photos through non-party Imagn, the photo licensing division of the USA Today Network, pursuant to contractual licensing agreements generally known as contributor agreements (the “Contributor Agreements”2). Id. ¶¶ 29-31. Under the terms of one set of Contributor Agreements, which are operative as to eight Plaintiffs (the “Pre-2020 Contributor Agreements”3), those Plaintiffs granted Imagn “the exclusive worldwide right to use, copy, perform, display, market, distribute, license, sub-license and negotiate the production rights of all photographic images, digital files, video images or footage and all other photographic materials” subject to those Plaintiffs’ “limited right to license the Images to [their] own editorial

1 The following facts are based on allegations in the Complaint and documents incorporated by reference or otherwise integral to the Complaint, specifically, the Contributor Agreements. In the analogous context of a motion to compel arbitration and for a stay, a court applies a standard similar to that for a summary judgment motion, and considers all relevant, admissible evidence submitted by the parties, with all reasonable inferences drawn in favor of the non-moving party. See Sinavsky v. NBCUniversal Media LLC, No. 20 Civ. 9175 (JPC), 2021 WL 4151013, at *1 n.1 (S.D.N.Y. Sept. 13, 2021) (citation omitted). In any event, none of these facts appear to be in dispute. 2 The Contributor Agreements refer collectively to the licensing agreements between each Plaintiff and Imagn. Where there is any variance in the terms for one or more Contributor Agreements, the Court notes such variance as necessary. 3 The Pre-2020 Contributor Agreements are the operative Contributor Agreements for Plaintiffs Adam Hunger, Dkt. 58, Exh. 1 at 53-62, Brian Spurlock, id. 73-82, Greg Cooper, id. at 111-20, James E. Brown, id. at 122-32, Mark Zerof, id. at 141-51, Stewart Milne, id. 160-68, Steven Mitchell, id. at 170-79, and Thomas Russo, id. at 181-88. clients” under certain conditions. Pre-2020 Contributor Agreements § 1. Under the terms of the Contributor Agreements operative as to the remaining three Plaintiffs (the “2020 Contributor Agreements”4), those Plaintiffs granted Imagn “the perpetual worldwide right to reproduce, distribute, publicly perform, publicly display, market, license, sub-license and negotiate the rights

to, edit, and otherwise use, all photographic images” subject to those Plaintiffs’ “limited, non- exclusive right to license the Images to [their] own editorial clients” under certain conditions. 2020 Contributor Agreements § 1. Under both versions of the Contributor Agreements, Plaintiffs retained the copyrights in the photographs covered by the Agreements. Contributor Agreements § 1; Compl. ¶¶ 31-32. Moreover, under section 5 of the Contributor Agreements, Plaintiffs granted Imagn and its affiliates, successors, and assigns: the right, in their sole and absolute discretion, to: (i) determine how the Images will be marketed, displayed and distributed to [Imagn]’s customers; (ii) edit, crop or modify the Images, including the captions and metadata that accompanies the Images; (iii) establish the terms and conditions, including the fees, for the license of the Images to [Imagn]’s customers; and (iv) perform its services without [Plaintiffs’] further approval. Contributor Agreements § 5. The Pre-2020 Contributor Agreements provided that “any Image or Stock Image given to [Imagn] for distribution shall remain available for distribution by [Imagn] for a minimum of five (5) years from the date of receipt by [Imagn].” Pre-2020 Contributor Agreements § 5. Under the 2020 Contributor Agreements, “any Image given to [Imagn] for distribution in the future, or previously given to [Imagn], shall remain available for distribution by [Imagn] in perpetuity on an exclusive basis during the term of this Agreement and on a non-

4 The 2020 Contributor Agreements are the operative Contributor Agreements for Plaintiffs Steve Flynn, Dkt. 58, Exh. 1 at 104-09, Noah Murray, id. at 134-39, and Ian Rutherford, id. at 153-58. exclusive basis after termination.” 2020 Contributor Agreement § 5. The 2020 Contributor Agreements further provided that “[Imagn] may allow [its] corporate affiliates, customers, and/or prospective customers to use Images with or without requiring that compensation be paid to [Imagn].” Id.

Contrary to Plaintiffs’ allegations in the Complaint that they “have never authorized or permitted Imagn to act on their behalf in any respect with regard to potential violations or infringement of their copyrights” and “have never authorized or permitted Imagn to settle or release any copyright claims . . . that Plaintiffs may have against any third parties, including but not limited to claims against Defendants,” Compl. ¶ 34, section 7 of the Contributor Agreements did grant Imagn certain rights to recover for unauthorized use of Plaintiffs’ photographs. Section 7 of the Pre-2020 Contributor Agreements provided: In case of damage, destruction, loss or unauthorized use of any Images by any customer who lawfully obtained Images from [Imagn], [Plaintiffs] hereby grant[] [Imagn] full and complete authority to make claims or to institute proceedings in [Plaintiffs’] name[s] to prosecute such unauthorized use. In no event, however, shall [Imagn] be liable for such unauthorized use nor shall [Imagn] be required to take any action to prosecute such unauthorized use. Any recoveries shall be divided between [Plaintiffs] and [Imagn] 50/50, after deduction for the costs of any such actions incurred by [Imagn], including, without limitation, legal fees or other expenses. All settlements shall be made in [Imagn]’s sole and absolute discretion. If [Imagn] chooses not to pursue any legal action, [Plaintiffs] reserve[] the right to do so after notification from [Imagn]. Pre-2020 Contributor Agreements § 7.

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Bluebook (online)
Spurlock v. Thomson Reuters America Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spurlock-v-thomson-reuters-america-corporation-nysd-2022.