141 F. Supp. 3d 258
S.D.N.Y.2015Background
- Plaintiff Charles Wallert alleges he composed and produced the 1978 composition and master recording "The Rock," which Family Records (owned by Wallert) sold to RSO under a 1979 agreement that promised royalties; RSO's successor is Universal International Music B.V. (UIM BV).
- Wallert claims three later works infringe: (1) the 2000–01 French House song "Starlight" (by Atlan, Mani Hoffman, and Lafesse and licensed/distributed by various Universal entities); (2) a 2011 Mango recording of "Starlight"; and (3) a 2008 song "Hot Bitch" (by Serhat Bedük, released by Audiology/Columbia).
- Wallert sued for federal and foreign copyright infringement, breach of contract and related state-law claims against multiple defendants including the Starlight defendants, Universal publishing entities, UMG, Cyclo, Audiology, Bedük, and UIM BV; he seeks injunctive relief and damages.
- Pending motions: Hoffman moved to dismiss for lack of personal jurisdiction (Fed. R. Civ. P. 12(b)(2)); Universal defendants moved to dismiss the Fourth Amended Complaint under Rule 12(b)(6). Wallert sought jurisdictional discovery.
- The court dismissed Hoffman for lack of personal jurisdiction; dismissed federal copyright claims for lack of standing (Wallert failed to allege he owns the composition copyright); declined supplemental jurisdiction and dismissed foreign-law copyright claims on forum non conveniens grounds; and dismissed state-law contract/tort claims against UIM BV and UMG for failure to plead required contractual facts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Personal jurisdiction over Hoffman (NY) | Hoffman transacted business via licensing/clearinghouses (ASCAP/HFA) and post-filing contacts show purposeful availment | No continuous/systematic contacts in NY; no ASCAP contract; post-filing contacts irrelevant | Dismissed for lack of personal jurisdiction — plaintiff failed to make prima facie showing under CPLR §§ 301/302 |
| Standing to bring U.S. copyright claims | Wallert claims ownership via Moonstruck (which he owns) and successor-in-interest status; alternatively alleges beneficial ownership | Corporate entity (Moonstruck) is distinct; no written transfer or dissolution showing; no pleading of beneficial-owner facts | Dismissed for lack of standing to sue under 17 U.S.C. § 501 — Wallert did not adequately allege legal or exclusive ownership |
| Foreign-law copyright claims (supplemental/diversity jurisdiction) | Plaintiff seeks to pursue foreign claims in U.S. court | Defendants argue dismissal if federal claims fail; France is better forum; evidence and witnesses in Europe | Court declines supplemental jurisdiction and — treating diversity as present — dismisses foreign-law claims on forum non conveniens in favor of France |
| State-law claims re: royalty collection (breach, implied covenant, interference) | UIM BV/UMG failed to collect/pay royalties under RSO and UMG–Sony short-form sampling agreements; UIM BV allegedly deprived Wallert of notice and royalties | Complaints fail to allege existence/terms of any short-form license, lack of specific contractual breach, and misread RSO notice obligations; no third-party-beneficiary pleading | Dismissed for failure to state a claim under Rule 12(b)(6); some dismissals with prejudice (state-law claims) |
Key Cases Cited
- DiStefano v. Carozzi N. Am., Inc., 286 F.3d 81 (2d Cir.) (plaintiff bears burden to establish personal jurisdiction)
- In re Terrorist Attacks on Sept. 11, 2001, 714 F.3d 659 (2d Cir.) (prima facie showing to defeat jurisdictional motion)
- Ball v. Metallurgie Hoboken-Overpelt, S.A., 902 F.2d 194 (2d Cir.) (pleading standard for pre-discovery jurisdictional showing)
- Dorchester Fin. Sec., Inc. v. Banco BRJ, S.A., 722 F.3d 81 (2d Cir.) (procedural posture and burdens for jurisdictional allegations)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility pleading standard for Rule 12(b)(6))
- Ashcroft v. Iqbal, 556 U.S. 662 (plaintiff must plead factual content to make legal claims plausible)
- Calder v. Jones, 465 U.S. 783 (forum contacts and due process analysis)
- World-Wide Volkswagen Corp. v. Woodson, 444 U.S. 286 (purposeful availment and foreseeability)
- Dole Food Co. v. Patrickson, 538 U.S. 468 (corporate/separate-entity principle)
- Iragorri v. United Techs. Corp., 274 F.3d 65 (forum non conveniens framework)
- Gulf Oil Corp. v. Gilbert, 330 U.S. 501 (public/private interest factors for forum non conveniens)
- Metropolitan Life Ins. Co. v. Robertson-Ceco Corp., 84 F.3d 560 (time frame for assessing contacts for general jurisdiction)