Wake Up & Ball LLC v. Sony Music Entertainment Inc.

119 F. Supp. 3d 944, 2015 U.S. Dist. LEXIS 107261, 2015 WL 4763657
CourtDistrict Court, D. Arizona
DecidedAugust 13, 2015
DocketNo. CV-14-02403-PHX-DGC
StatusPublished
Cited by3 cases

This text of 119 F. Supp. 3d 944 (Wake Up & Ball LLC v. Sony Music Entertainment Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wake Up & Ball LLC v. Sony Music Entertainment Inc., 119 F. Supp. 3d 944, 2015 U.S. Dist. LEXIS 107261, 2015 WL 4763657 (D. Ariz. 2015).

Opinion

ORDER

David G. Campbell, United States District Judge ■

Defendant Sony Music Entertainment (“Sony”) has filed a motion to dismiss for lack of personal jurisdiction, improper venue, and failure to state a claim. Doc. 35. Defendants Deepfreeze Entertainment, LLC (“Deepfreeze”) and Robert Carr have also filed a motion to dismiss for failure to state a claim. Doc. 51. The motions are fully briefed. The Court will deny the motions, but allow jurisdictional discovery so that the personal jurisdiction issues may be addressed in a more complete factual context.1

I. Background,

Plaintiff Wake Up and Ball,. LLC (“Wake Up”) is an Arizona limited liability company with its principal place of business in Maricopa County, Arizona. Doc. 25, ¶ 1. Wake Up’s business model is based on the discovery, production, and distribution of hip-hop musicians and sound recordings. Id., ¶ 17. Alonzo Harris and Kareem Rogers formed Wake Up on December 9,2013. Id., ¶¶ 16, 31. Felipe Delgado was a former principal member of Wake. Up, but left in October 2014. Id., ¶ 16.

According to Wake Up, Delgado approached hip-hop artist Robert Carr (a.k.a. “Judge da,Boss”) after Carr recorded the composition “Judge da Boss, Hell Yeah” in October.2013. Id., ¶¶ 18, 20. Delgado alleg[947]*947edly discussed with Carr the possibility of Wake Up financing a music video for the Hell Yeah composition. Id., ¶ 20. Wake Up alleges that Carr “verbally indicated” that he would sign a recording contract if Wake Up financed the production of the music video. Id., ¶ 27. Harris and Delgado then met with music video producer Irin Daniels, whom Harris subsequently hired to produce the Hell Yeah video. Id., ¶¶ 21-24. Harris provided Daniels with $4,000, and video production began on January 4, 2014. Id., ¶¶ 25, 32. On February 16, 2014, Daniels finished production of the video. Id., ¶ 35. Wake Up alleges that Daniels maintained complete creative control of the video, a fact Carr understood and never disputed. Id., ¶¶ 28, 29, 39-44. In April 2014, Daniels assigned his copyright in the video to Wake Up. Id., ¶ 50.

Wake Up claims that on February 7, 2014, Harris had his attorney draft a recording contract for Carr to sign, and that throughout February and March the two parties exchanged several drafts and met many times. Id., ¶¶ 45, 46. During the negotiations, Harris expressed his desire to own both the lyrics and beat to the Hell Yeah composition, and Carr verbally indicated that he owned the xdghts to the lyrics and beat and was free to sign a recording contract with Wake Up. Id., ¶¶ 47, 48. In March, Harris learned that Marshae Green had obtained the rights to the lyrics and beat of the Hell Yeah composition. Id., ¶ 49. Green later notified Wake Up that Carr had signed with Defendant Deep-freeze, an Arizona company with its principal place of business in Glendale, as his managing company. Id., ¶¶, 3, 53. Deep-freeze expressed its desire to purchase rights to the Hell Yeah video from Wake Up, and the two parties negotiated over the sale price but did not reach an agreement. Id., ¶¶ 54-56.

On May 8, 2014, Harris learned that Carr had signed with Defendant Sony, a Delaware corporation' with its principal place.of business in New York. Id., ¶¶ 2, 59. On August 9, the Hell Yeah video was published on YouTube, apparently by Delgado on behalf of Wake Up. Id., ¶ 62. Wake Up claims that Sony caused the video to be removed from YouTube the same day. Id., ¶ 63. Wake Up . further claims that on September 21, 2014, Sony published the video on several websites and online services, including MTV and iTunes. Id., ¶ 64. Wake Up applied for and obtained a copyright registration for the Hell Yeah video effective September 29, 2014. Id., ¶ 68. It claims that it provided notice to Sony of its infringement of Wake Up’s copyright, but that Sony disregarded the notification. Id., ¶¶ 14, 15. The video has remained publically available ever since. Id., ¶ 64.

Wake’Up filed suit against Sony, Deep-freeze, and Robert Carr. Wake Up seeks relief for copyright infringement against Sony and Deepfreeze, and seeks declaratory judgment as to its copyright ownership. Additionally, Wake Up has pled a claim for fraud and misrepresentation against Carr. Id., ¶¶ 80-88.

II. Sony’s Motion to Dismiss.

A. Personal Jurisdiction.

1. Legal Standard.

“Federal courts ordinarily follow state law in determining the bounds of their jurisdiction, over persons.”, Daimler AG v. Bauman, — U.S.-, 134-S.Ct. 746, 753, 187 L.Ed.2d 624 (2014). Arizona has authorized its courts to exercise jurisdiction to the maximum extent permitted by the Due Process Clause of the Constitution. See Ariz. R. Civ. P. 4.2(a). Under the Due Process Clause, a federal district court may exercise jurisdiction over a person who is not physically present within the territorial jurisdiction, of the court. Walden v. Fiore, — U.S. ——, 134 S.Ct. [948]*9481115, 1121, 188 L.Ed.2d 12 (2014). The nonresident generally must have certain minimum contacts with the forum so that the maintenance of the suit does not offend traditional notions of fair play and substantial justice. Int’l Shoe Co. v. Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 90 L.Ed. 95 (1945).

In this circuit, specific jurisdiction exists only if: (1) the defendant purposefully availed himself of the privileges of conducting activities in the forum, thereby invoking the benefits and protections of its laws, or purposely directed conduct at the forum that had effects in the forum; (2) the claim arises out of the defendant’s forum-related activities; and (3) the exercise of jurisdiction comports with fair play and substantial justice — in other words, it is reasonable. In re W. States Wholesale Natural Gas Antitrust Litig., 715 F.3d 716, 741-42 (9th Cir.2013). In tort cases, the inquiry under the first part is whether a defendant purposefully directed his activities at the forum state. Yahoo! Inc. v. La Ligue Centre Le Racisme Et L’Antisemitisme, 433 F.3d 1199, 1206 (9th Cir. 2006). This requirement, sometimes referred to as the “effects test,” “requires that the defendant allegedly have (1) committed an intentional act, (2) expressly aimed at the forum state, (3) causing harm that the defendant knows is likely to be suffered in the forum state.” Schwarzenegger v. Fred Martin Motor Co., 374 F.3d 797, 803 (9th Cir.2004) (quoting Dole Food Co. v. Watts, 303 F.3d 1104, 1111 (9th Cir.2002) (citing Colder v. Jones, 465 U.S. 783, 104 S.Ct. 1482, 79 L.Ed.2d 804 (1984))).

The effects test does not “ ‘stand for the broad proposition that a foreign act with foreseeable effects in the forum state always gives rise to specific jurisdiction.’” Wash. Shoe Co. v.

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119 F. Supp. 3d 944, 2015 U.S. Dist. LEXIS 107261, 2015 WL 4763657, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wake-up-ball-llc-v-sony-music-entertainment-inc-azd-2015.