Wallert v. Atlan

141 F. Supp. 3d 258, 2015 U.S. Dist. LEXIS 145027, 2015 WL 6459219
CourtDistrict Court, S.D. New York
DecidedOctober 26, 2015
DocketNo. 14 Civ. 4099(PAE)
StatusPublished
Cited by25 cases

This text of 141 F. Supp. 3d 258 (Wallert v. Atlan) 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
Wallert v. Atlan, 141 F. Supp. 3d 258, 2015 U.S. Dist. LEXIS 145027, 2015 WL 6459219 (S.D.N.Y. 2015).

Opinion

OPINION & ORDER

PAUL A..ENGELMAYER, District Judge:

This case involves claims of copyright infringement of a musical work and breach of a contract providing for licensing royalties relating to that work. Plaintiff Charles Wallert alleges that in 1978, he composed and produced a musical composition and recording, “The Rock,” that later was infringed upon by a series of malefactors. The infringements began, Wallert alleges, in 2000, when three defendants1 [265]*265wrote and recorded the song “Starlight.” “Starlight” later was licensed in France, the United States, and elsewhere by entities, including three other defendants.2 Next, Wallert alleges, in 2008, defendant Serhat Bedük composed and produced a composition and recording, “Hot Bitch,” which also infringed “The Rock,” and was published and distributed by defendant Audiology Records (“Audiology”). Finally, Wallert claims, defendant Universal International Music B.V. (“UIM BV”), which holds the distribution rights of “The Rock,” has failed to pay. him royalties for its licensing of “The Rock,” including for the sampling of that recording on infringing records; such as “Starlight.” ¡

Based on this narrative, Wallert brings claims of copyright infringement, under the United States Copyright Act of 1976; 17 U.S.C. §§ 101 et seq., and separately on the laws of 11 other nations3; breach of contract; breach of the covenant of good faith and fair dealing; wrongful interference with prospective contractual relations; and unjust enrichment. Defendants are (1) the Starlight defendants; (2) the Universal publishing defendants, UMG Recordings, Inc. (“UMG”), and UIM BV (collectively, the “Universal defendants”); (3) Cyclo Records and Cyclo Music; (4) Bediik, Audiology, and Seyhan Muzik (collectively, the “Hot Bitch defendants”); (5) Does 1-50; and (6) XYZ Corporations 1-50. Wallert seeks injunctive relief, and statutory and punitive damages of at least $5 million.

Two motions are pending: First, Hoffman moves to dismiss for lack of personal jurisdiction, under Federal Rule of Civil Procedure 12(b)(2). Second,.the Universal defendants move to dismiss Wallert’s Fourth Amended Complaint (“FAC”), under Rule 12(b)(6). Wallert opposes both motions, and moves for leave to take jurisdictional discovery.

For the following reasons, the Court grants Hoffman’s and the Universal defendants’ motions to dismiss, and denies Wal-lert’s motion for leave to take jurisdictional discovery.

I. Background

A. Factual Background4

As noted, Wallert brings copyright infringement claims, in addition to an array of claims under state law.

The Court first recounts the composition, production, and distribution history of “The Rock,” and the factual allegations relating to the three instances - in which Wallert alleges copyright infringement. These allegations also underlie Wallert’s claims of wrongful interference with prospective contractual relations and unjust enrichment.

The Court then reviews the allegations relating to the licensing of the recording of “The Rock,” which underlie his claims of breach of contract under California and New York law, tortious-breach of the covenant of good faith and fair dealing under [266]*266California law, and wrongful interference with prospective contractual relations.

1. The composition, production, and distribution of “The Rock”

Wallert, a music producer and composer, has produced and/or composed songs for recording artists including George Benson, Cuba Gooding, and Dionne Warwick. FAC ¶ 21. In 1978, Wallert, with Michael Foreman and A1 Gee, wrote the music and lyrics to a composition called “The Rock” (“The Rock composition”). Id. 22. The Rock composition was copubl-ished by Moonstruck Sounds, Ltd. (“Moonstruck”), of which Wallert is the sole owner and successor in interest to all rights, and Mich-Den Music, which is Foreman’s publishing company. Id. ¶¶ 21-22. Moonstruck and Mich-Den Music also registered The Rock composition in the Copyright Office, at registration number PA37208. Id. ¶ 25. In 1978, The Rock composition also was registered with Broadcast Music Inc. (“BMI”) for licensing. Id: 27.

Also in 1978, Wallert produced and financed a master sound recording of “The Rock” (“The Rock recording”), which was performed by a group of singers and musicians known as “East Coast.” Id. ¶23. The Rock recording was later released that year by Family Music Productions, Inc., which conducted business as Family Records (“Family Records”). Id. Family Records, which ceased to do business in 1980, was a New York corporation solely owned by Wallert; he is the sole successor in interest to all rights held by Family Records. Id.

The Rock recording was a “very popular R & B disco dance hit of the late 1970s” that received nationwide radio and dance club play and appeared for months on national industry and radio musical play charts. Id. ¶43. Family Records later executed an agreement with RSO Records Inc. (“RSO”), selling the rights of The Rock recording in exchange for royalties, as discussed below. Id. ¶ 23.

2. The three instances of alleged copyright infringement

“Starlight”: Before creating “Starlight” (the “Starlight composition”), Atlan contacted an unidentified individual in the United States (defendant “Doe 1”) regarding The Rock composition and recording. Id. ¶ 42. Doe 1 gave Atlan purported authorization to use all or some of The Rock composition and recording to create the Starlight composition and the recording of that composition (the “Starlight recording”). Id. Doe 1, however, lacked authority to authorize use of The Rock composition or recording. Id.

In 2000, the Starlight defendants created the Starlight composition, which, Wal-lert claims, infringed The Rock composition. Id. ¶ 41. In January 2001, Lafesse, with other entities including Cyclo Records, recorded, manufactured, and distributed the Starlight recording, which was recorded by a group known as “The Superman Lovers featuring Mani Hoffman.” Id. Atlan and Hoffman performed on the Starlight recording, and Atlan, who has stated that “R & B/Funk records are his number one influence,” produced the composition. Id. ¶¶ 41, 43. The Starlight recording, a French House recording,5 allegedly infringed The Rock composition and recording. Id. ¶¶ 41, 43.

Since January 2001, the Starlight defendants have sold and/or distributed copies of the Starlight recording in various media (e.g., CDs, cassettes, DVDs, videocassettes, [267]*267videos, digital downloads, and ringtones) directly and through licensed agents, and have licensed and continue to license the Starlight recording for further recording and public performance through performing rights organizations, such as BMI, the American Society of Composers, Authors and Publishers (“ASCAP”), and the Harry Fox Agency, Inc. (“HFA”). Id. ¶ 47.

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141 F. Supp. 3d 258, 2015 U.S. Dist. LEXIS 145027, 2015 WL 6459219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallert-v-atlan-nysd-2015.