Cortes v. Sony Corp. of America
108 F. Supp. 3d 18
D.P.R.2015Background
- In 2013 Sony ran a "Super-Song" contest (Contest) for original songs/videos to be considered for the 2014 FIFA World Cup album; entry required signing documents referencing the Contest Rules.
- Cortes-Ramos submitted an original composition and video (Submission) on January 2, 2014, and signed a notarized affidavit stating compliance with the Official Rules (which incorporated the Contest Rules).
- Plaintiff later was not chosen among finalists or the winner; on April 22, 2014 Ricky Martin released a recorded song and video "Vida" that Plaintiff alleges is almost identical to his Submission.
- Plaintiff sued Sony entities alleging copyright infringement (17 U.S.C. § 1101), Lanham Act (15 U.S.C. § 1125) and Puerto Rico Trademark Act claims, and a Puerto Rico contract/deceit claim.
- Defendants moved to dismiss under Rule 12(b)(6) (and alternatively 12(b)(2)/(3)), principally arguing a mandatory arbitration clause in the Contest Rules compels arbitration and that Plaintiff failed to state viable claims.
- The court found the arbitration clause valid and broad, dismissed all arbitrable claims (rather than staying), and dismissed Plaintiff's contract, copyright, Lanham Act, and Puerto Rico Trademark Act claims for failure to state a claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability / scope of arbitration clause | Cortes-Ramos contends he did not read or expressly assent to the arbitration clause and therefore is not bound. | Sony argues plaintiff signed documents incorporating Contest Rules, which contain a broad, mandatory arbitration clause covering disputes. | Court: arbitration clause is valid, incorporated by reference, covers these disputes; plaintiff bound; dismissed arbitrable claims. |
| Contract / deceit (Puerto Rico law) | Plaintiff claims he was misinformed and lured into the Contest (deceit) making the contract voidable. | Sony contends no factual allegations show material misrepresentation, coercion, or deceit that would void assent. | Court: allegations are conclusory and lack concrete facts; contract claim dismissed. |
| Copyright infringement (17 U.S.C. § 1101) — registration and copying | Cortes-Ramos alleges "Vida" is almost identical to his Submission and asserts infringement. | Sony argues plaintiff failed to preregister/register the work and fails to plead factual copying or probative similarity. | Court: plaintiff did not allege registration (jurisdictional prerequisite) or adequate factual allegations of copying/similarity; copyright claim dismissed. |
| Lanham Act & Puerto Rico Trademark Act (dilution/false designation) | Plaintiff invokes §1125 and local trademark statute, alleging misappropriation and harm. | Sony argues plaintiff fails to plead that the Submission is a good/service mark or a "famous" mark and provides no facts on confusion, dilution, or intent. | Court: complaints are conclusory and lack required factual allegations (fame, confusion, intent); Lanham and PR Trademark claims dismissed. |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (pleading standard: conclusory statements insufficient)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (plausibility pleading standard)
- Moses H. Cone Memorial Hosp. v. Mercury Constr. Corp., 460 U.S. 1 (1983) (federal policy favoring arbitration; courts may stay or dismiss if all issues are arbitrable)
- Dean Witter Reynolds Inc. v. Byrd, 470 U.S. 213 (1985) (strong federal policy favoring enforcement of arbitration agreements)
- Int’l Union of Operating Eng’rs v. Flair Builders, Inc., 406 U.S. 487 (1972) (broad arbitration language covers disputes between parties)
- Benitez-Navarro v. Gonzalez-Aponte, 660 F. Supp. 2d 185 (D.P.R. 2009) (incorporation by reference can bind signatory to arbitration clause)
- Combined Energies v. CCI, Inc., 514 F.3d 168 (1st Cir. 2008) (arbitration enforcement principles)