Vydia, Inc. v. Creator Sync, Inc.

CourtDistrict Court, S.D. New York
DecidedJanuary 15, 2026
Docket1:25-cv-05638
StatusUnknown

This text of Vydia, Inc. v. Creator Sync, Inc. (Vydia, Inc. v. Creator Sync, Inc.) 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
Vydia, Inc. v. Creator Sync, Inc., (S.D.N.Y. 2026).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK VYDIA, INC., REPORT AND RECOMMENDATION Plaintiff, ON DAMAGES INQUEST -against- 25-CV-5638 (GBD) (KHP) CREATOR SYNC, INC., Defendant. TO: THE HONORABLE GEORGE B. DANIELS, UNITED STATES DISTRICT JUDGE FROM: KATHARINE H. PARKER, UNITED STATES MAGISTRATE JUDGE

Plaintiff Vydia, Inc. (“Vydia”) commenced this action against Defendant Creator Sync, Inc. (“Creator”) for breach of contract and, in the alternative, for unjust enrichment, conversion, and fraudulent inducement. (ECF No. 1.) The Complaint seeks an award of damages pursuant to an Exclusive Content License Agreement (the “Content Agreement”), and corresponding Advance Addendum (the “Addendum”) (together, the “Agreement”). Upon Plaintiff’s application and in light of Defendant’s failure to appear in or otherwise defend against this action, on September 23, 2025, the Honorable George B. Daniels referred this matter to the understand for a Report and Recommendation on issuance of a default judgment and damages. (ECF No. 13.) Plaintiff seeks damages in the amount of $160,000.00,1 attorneys’ 0F fees in the amount of $30,875.50, and costs in the amount of $566.42. For the reasons stated below, I recommend that the Court enter judgment for Plaintiff and judgment be granted in the amounts set forth below.

1 Plaintiff’s papers on this motion forego its claim for lost profits damages, alleged in the Complaint to total $100,000.00, though its brief in support of the motion notes it “reserves all rights with respect to” its lost profits claim. (See ECF No. 1 ¶¶ 36, 47; ECF No. 31, at 7 & n.2.) 1 BACKGROUND It is well-settled that in light of Defendants’ default, Plaintiff’s factual allegations, with the exception of those related to damages, are accepted as true. See Finkel v. Romanowicz, 577

F.3d 79, 84 (2d Cir. 2009) (citing Au Bon Pain Corp. v. Artect, Inc., 653 F.2d 61, 65 (2d Cir. 1981)). Accordingly, the following facts are established as a result of Defendants’ default: Vydia is a corporation organized under the laws of the State of Delaware with its principal place of business in New York. (ECF No. 1, Complaint or “Compl.” ¶ 12.) Vydia operates an end-to-end technology platform and services company that provides an all-in-one

platform for artists, labels, and managers to distribute, manage, and monetize their content. (Id. ¶ 2.) Defendant purports to operate a platform and marketplace for musical artists to connect with influencers and generate streaming revenues and content. (Id. ¶ 3.) Defendant engaged Plaintiff in connection with two musical artists: Morae Ruffin, p/k/a Morray (“Morray”), and Jeffrey Sidhoo, p/k/a Jay Worthy (“Worthy,” with Morray, the “Artists”). (Id. ¶ 4.) Defendant represented to Plaintiff that it held the rights to furnish the musical content of

both Artists (the “Client Content”) and, based on this representation, Plaintiff advanced $160,000.00 to Defendant against anticipated royalties from exploitation of the Client Content. (Id. ¶ 5.) Upon its breach, Defendant did not repay the amount advanced as required in the Agreement, leading to this action. The particulars are as follows. The parties entered into the Agreement on June 25, 2024, pursuant to which Plaintiff agreed to provide certain content management and royalty

administration services (the “Vydia Services”) to Defendant for the Client Content detailed in 2 the Agreement. (Id. ¶¶ 16-17; ECF No. 29 ¶ 8, Declaration of Jared Leibowitz (“Leibowitz Decl.”), Exh. 1.) This included procuring and/or providing marketing and promotional services for the Client Content (i.e., music produced by the two Artists) with an aggregate value of

$10,000.00. (ECF No. 29-1, at 13, Advance Addendum.) The Agreement provides for application of New York law on all matters relating to contract formation, interpretation, and construction, and both parties agreed to venue in New York, New York. (ECF No. 29-1 § 18.) The Term of the Agreement was 36 months, with 12-month renewal periods. (ECF No. 1 ¶ 19; ECF No. 29-1 §§ 1, 5.)

In the Agreement, Defendant represented and warranted that it “owns or controls all valid right, title, and interest in and to the Client Content.” (ECF No. 1 ¶ 18; ECF No. 29-1 §§ 3(b).) Defendant was supposed to provide to Vydia all Client Content within five business days of the effective date of the Agreement and, thereafter, with respect to any new Client Content, within two business days after it became Client Content. (ECF No. 1 ¶ 20; ECF No. 29-1 § 8.) In the Agreement, Defendant indemnified Plaintiff “from and against any and all damages,

liabilities, costs, losses and expenses (including legal costs and reasonable attorneys’ fees and costs of investigation) . . . arising out of a breach” of the Agreement by Defendant, including a breach of any warranty, representation, agreement, undertaking or covenant contained in the Agreement. (ECF 1 ¶ 21; ECF No. 29-1 § 15.) Plaintiff also agreed to advance Defendant $160,000 as an advance against royalties on the music. (ECF No. 1 ¶ 22; ECF No. 29-1, at 14, Advance Addendum.) The advance was intended to be recouped in installments as the Artists

received royalties on their music that Plaintiff was intending to promote. (ECF No. 29-1, at 14, 3 Advance Addendum.) And the Agreement provided that Defendant could not terminate the Agreement until after the Client Content was delivered and the advance was recouped, except if Plaintiff breached. (Id. at 15 §2(b).) In the event of a breach by Defendant, the Agreement

provides that Defendant must pay back the Advance not otherwise recouped. (Id. at 15 § 6.) Plaintiff provided the full payments to Defendant; however, Defendant never delivered all the Client Content to Plaintiff and, it turns out, did not have the right to deliver the content of Morray. (ECF No. 1 ¶¶ 23-26; ECF No. 29 ¶ 13 & Exh. 2.) Plaintiff alleges had it been aware that Defendant did not have the rights to deliver Morray’s content, it would not have advanced

Defendant $160,000.00 or entered into the Agreement. (ECF No. 1 ¶ 27; ECF No. 29 ¶ 14.) On March 11, 2025, Plaintiff demanded that Defendant return the $160,000.00 advanced and reimburse Plaintiff its legal costs and attorneys’ fees. (ECF No. 1 ¶ 28.) Defendant did not return the money or reimburse Plaintiff its legal costs and fees and, consequently, Plaintiff sought termination of the Agreement and repayment of the $160,000 advance. (ECF No. 1 ¶¶ 29-35; ECF No. 29 ¶¶ 16-17.)

In its motion for a default judgment and damages, Plaintiff seeks $160,000 plus pre- and post-judgment interest and its legal costs, attorneys’ fees, and investigation costs it has incurred in connection with trying to recoup the money it advanced from Defendant and bringing this action. It has attached the affidavit of its counsel, Hillel Parness, with contemporaneous billing records reflecting $30,875.50 in attorneys’ fees. (ECF No. 30, Declaration of Hillel Parness & Exh. D.) Mr. Parness, who bills at the hourly rate of $650.00,

spent 24.1 hours on this matter. His co-counsel, Nicole Chessin, who bills at the hourly rate of 4 $325.00, spent 73.1 hours on this matter. (Id. ¶ 10-12.) Mr. Parness also provided documentation of costs, which total $566.42, which include a $405 filing fee to commence this action, $155 in process server fees, and $6.42 for service of default papers. (Id. ¶ 13.)

PROCEDURAL HISTORY On July 8, 2025, Plaintiff filed the Complaint. (ECF No. 1.) On July 18, 2025, Vydia filed an Acknowledgement of Service of the Summons and Complaint. (ECF No. 8.) Defendant failed to respond to the Complaint. Consequently, Plaintiff sought and obtained a Certificate of Default. (ECF No. 27.) Plaintiff now moves for a default judgment and damages. (ECF Nos. 28-32.)2 The 1F motion for default judgment was served on Defendant. (ECF No.

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Bluebook (online)
Vydia, Inc. v. Creator Sync, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/vydia-inc-v-creator-sync-inc-nysd-2026.