UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
FRANK MUSIC CORP., on behalf of
itself and all others similarly
situated,
-against-
COMPUSERVE INCORPORATED,
Defendant.
Civil Action No. 93 Civ. 8153 (JFK)
COMPLAINT
CLASS-ACTION
Plaintiff, by its attorneys, Silverman & Shulman, P.C.,
complaining of the defendant herein, alleges as follows:
Jurisdictional Allegations
1. This action arises under the Copyright Act of the United
States (17 U.S.C. Sec. 101, et seq.). This Court has exclusive
jurisdiction over this action under Section 1338(a) of the
Judicial Code [28 U.S.C. Section 1338(a).] Venue is proper
under Section 1400(a) of the Judicial Code [28 U.S.C. Section
1400(a).]
Class Action Allegations
2. Plaintiff brings this action pursuant to Rule 23(a), (b)(2) and
(3) of the Federal Rules of Civil Procedure, on behalf of itself
and all other copyright owners similarly situated (the "Class"),
who are all music publishers-principals of the The Harry Fox
Agency, Inc., their common licensing and collecting agent, and
whose copyrighted musical compositions are the subject of
those unauthorized uses by defendant hereinafter alleged, in
violation and infringement of the exclusive rights granted to
copyright owners of musical compositions pursuant to Section
106 of the U.S. Copyright Act [17 U.S.C. Section 106.]
3. The class numbers in excess of one hundred forty (140), and
it is therefore impracticable to bring them all before the Court.
The questions of law and fact presented herein regarding
defendant's violation and infringement of rights under the
Copyright Act and its liabilities therefor are common to the
entire Class. The claims of plaintiff herein are typical of the
claims of the Class. Plaintiff will fairly and adequately protect
the interests of the Class in that plaintiff has retained competent
counsel experienced in litigation of this nature, has the
financial support of the Harry Fox Agency, Inc.*, and is
seeking injunctive relief based upon defendant's violation of
the rights of each member of the Class and statutory damages
determinable for each member of the Class. A class action is
superior to individual litigation because it permits a resolution
of all claims in one action; there is no pending litigation of any
of such claims. Any notices required to be given to the Class of
any proceeding in this action can be given to The Harry Fox
Agency, Inc., the Class' common agent, who shall undertake to
transmit such notices to each member thereof.
The Parties
4. Plaintiff FRANK MUSIC CORP. (hereinafter "Frank") is a
New York corporation with its principal office at 39 West 54th
Street, New York, New York 10019.
5. Frank and the members of the Class were and continue to be
copyright owners engaged in the business of publishing,
licensing and otherwise marketing and exploiting musical
compositions.
6. Defendant (hereinafter "Compuserve") is an Ohio
corporation with an office for the conduct of its business at 120
Broadway in the City, County and State of New York, and
accordingly, can be found in this judicial district.
7. Compuserve, a wholly-owned subsidiary of H & R Block
Group, Inc., upon information and belief, has offices and
subsidiaries of its own in over 16 states and in seven foreign
countries, employing more than 1600 persons and has annual
sales in excess of two hundred eighty million ($280,000,000.)
dollars. Compuserve, amongst other things, is engaged in the
business of maintaining a computer-based on-line information
and electronic communication service which involves
Compuserve's maintenance of a large mainframe computer and
the database contained therein consisting of literary, graphic
and musical material. Such mainframe computer and database
are hereinafter sometimes referred to as the "Bulletin Board."
Compuserve grants access to its Bulletin Board to it paid
subscribers, who via a device known as a "modem" and the use
of their own personal computers: a) put into the Bulletin Board,
for storage in the Bulletin Board's database, the literary,
graphic and musical material chosen by such subscribers (a
process known as "uploading"), and b) can select and take from
the Bulletin Board the literary, graphic and musical material
stored in the Bulletin Board's database (a process known as
"downloading".) Each subscriber pays Compuserve a monthly
fee for such access and also pays Compuserve, in the form of
"log on" charges, for the time that it is connected to
Compuserve's Bulletin Board. The material contained in this
Bulletin Board's database is identified in tables of contents
which are known as "menus." The menus list, amongst other
things, the various on-line literary, graphic and musical
material and other communication services which are
accessible to Compuserve's subscribers.
8. Compuserve provides the aforesaid access (to upload to and
download from its Bulletin Board) to subscribers who reside
within this judicial district and elsewhere.
Allegations of Copyright Infringement
9. At all times relevant herein, Frank was and continues to be
the sole copyright owner of the musical composition entitled
"UNCHAINED MELODY" (hereinafter the "Frank Work"):
A. which was written and composed by Alex North and Hy
Zarat, both citizens of the United States (the "authors");
B. which was registered for copyright (under its former title
"ARE YOU STILL MINE") with the U.S. Copyright Office as
an unpublished work on January 10, 1955 and for which the
Registor of Copyright issued registration certificate No.
EU382542 to and in the name of Frank;
C. which was registered for copyright (under its present title
"UNCHAINED MELODY") with the U.S. Copyright Office
after publication on February 10, 1955 and for which the
Register of Copyrights issued registration certificate NO. EP
87381 to and in the name of Frank;
D. which copyrights were both duly renewed by the authors on
January 6, 1983 and for which the Register of Copyrights
issued renewal certificates Nos. RE 153-688 and RE 151-142,
respectively, and
E. which renewal copyrights are owned by Frank pursuant to
prior written transfers from the authors dated, respectively,
December 29, 1982 (from Alex North) and May 24, 1978 (from
Hy Zarat), which written were recorded in the U.S. Copyright
Office, respectively, in Volume 1954 at page 396 and in
Volume 1666 at page 36.
10. Frank has duly complied with all pertinent provisions of the
Copyright Act and all laws governing copyright with respect to
the Frank Work.
11. Members of the Class are, and at all times relevant herein
were, the copyright owners of certain musical compositions
(the "Class Compositions"), which class compositions:
A. were all identified in the Bulletin Board's menus and
number in excess of five hundred fifty (550);
B. were, together with the Frank Work (as more particularly
hereinafter alleged), the subject of recordings which were
uploaded and downloaded to and from Compuserve's Bulletin
Board by Compuserve's subscribers, and
C. were the subject of copyright registrations in the U.S.
Copyright Office with the Register of Copyrights having issued
appropriate registration certificates therefor, and if appropriate
and required by the copyright act, the subject of duly renewed
copyrights.
12. The members of the Class have duly complied with all
pertinent provisions of the Copyright Act and all laws
governing copyright with respect to the Class Compositions.
13. Compuserve, in providing access to its Bulletin Board (in
particular its "MIDI **/Music Forum" and various "libraries"
therein) by its paying subscribers, is , and at all relevant times
herein was, engaged in the following activities with respect to
the Frank Work and the Class Compositions:
A. permitting, facilitating and participating in the recording of
performances of the Frank Work and the Class Compositions
into, and storing such recordings in, Compuserve's computer
database by permitting and enabling its paying subscribers to
upload such performances thereto,
B. maintaining a storage of unauthorized recordings of The
Frank Work and Class Compositions (uploaded by its
subscribers) in and as apart of Compuserve's computer
database, and
C. permitting, facilitating and participating in the recording
(i.e. re-recording) of the performances of The Frank Work and
the Class Compositions (therefore stored in its computer
database) by permitting and enabling its paying subscribers to
download such recorded performances therefrom.
14. At all times relevant herein Compuserve had, and continues
to have, control over the nature and content of materials stored
in its Bulletin Board and downloaded therefrom.
15. At all times relevant herein Compuserve had actual
knowledge of, or in the exercise of reasonable diligence could
have determined, the nature and content of materials stored in
its Bulletin Board and downloaded therefrom.
16. At all times relevant herein Compuserve had actual notice,
or in the exercise of reasonable diligence could have
determined, the recordings of the Frank Work and the Class
Compositions were uploaded (recorded) to, stored in, and
downloaded (re-recorded) from its computer database.
17. Neither Compuserve, nor its subscribers, sought or obtained
authority from Frank or the members of the Class to upload
(record), store, or download (re-record) performances of their
respective Frank Work or Class Compositions to, in or from
Compuserve's Bulletin Board.
18. The acts and omissions of Compuserve hereinabove
referred to constitute acts of copyright infringement by
Compuserve with respect to the Frank Work and the Class
Compositions.
19. Written demand was heretobefore made upon Compuserve
to cease and desist from is hereinabove alleged activities with
respect to the musical compositions owned or controlled by the
publisher-principals of the Harry Fox Agency, Inc.
20. Despite such written demand aforesaid, Compuserve
continues its hereinabove alleged activities.
21. The acts and omissions of Compuserve hereinabove alleged
are wilful and intentional acts of copyright infringement with
respect to Frank's copyrighting the Frank Work and the Class'
respective copyrights in the Class Compositions and, by reason
of multiple uses of a number of the Class Compositions,
constitute more than six hundred ninety (690) wilful and
intentional acts of infringement in connection with the Frank
Work and the Class Compositions.
WHEREFORE, Frank, on behalf of itself and the Class,
demands relief as follows:
1. That Compuserve be required to pay to Frank and each
member of the Class the sum of not less than $100,000 for each
infringement by Compuserve of the respective copyrights in
the Frank Work and the Class Compositions, as statutory
damages provided in the U.S. Copyright Act.
2. That Compuserve, its agents, servants, employees,
subsidiaries, divisions, and affiliates be preliminarily enjoined
during the pendency of this action and be permanently enjoined
thereafter from: a) infringing the copyrights in the Frank Work
and the Class Compositions in any manner; b) permitting,
facilitating or otherwise participating in the recording and re-
recording of the Frank Work and the Class Compositions in
any manner including, but not limited to, the uploading and
downloading of performances of the Frank Work and the Class
Compositions to or from Compuserve's computer database, or
otherwise permitting, facilitating or otherwise participating in
the storage of such performances therein.
3. That Compuserve during the pendency of this action be
required to purge its computer database of those files from
which copies or phonorecords of performances of the Frank
Work and the Class Compositions can be made, and otherwise
be required to prevent any access thereto by Compuserve's
subscribers.
4. That Compuserve be required to deliver up to be impounded
during the pendency of this action and to deliver up for
destruction all articles and devices in its possession, custody
and control from which infringing copies or phonorecords of
the Frank Work and the Class Compositions can be made or
derived.
5. That Compuserve be required to pay to Frank and to the
Class the costs and disbursements of this action, together with
reasonable attorney's fees to be allowed by the Court.
6. That Frank and the Class have such other and further relief
as the Court may deem just and proper.
Dated: October 29, 1993.
SILVERMAN & SHULMAN, P.C.
/s/ Alan L. Shulman
Bar No. A99520
136 East 57th Street
New York, NY 10022
(212) 758-2030
Attorneys for Plaintiff
ENDNOTES
* The Harry Fox Agency, Inc. provides licensing and collection
services to over 12,000 music publishers-principals and is the
licensing and collection agent of plaintiff Frank Music Corp.
and all of the members of the Class in this action. The Harry
Fox Publishers' Association, Inc., a not-for-profit corporation
and the principal trade association of music publishers in the
United States.
** "MIDI" is the acronym for "Musical Instrument Digital
Interface." It constitutes the stream of data that flows between
musical instruments in the digital world of computers and
music-producing instruments such as synthesizers. It can be
recorded electronically in a computer's memory, stored
permanently on the floppy disks used in computers, and later
recalled to play back the musical work which is the subject of a
MIDI recording.
=============================================
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UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK
FRANK MUSIC CORP., on behalf of
itself and all others similarly
situated,
-against-
COMPUSERVE INCORPORATED,
Defendant.
Civil Action No. 93 Civ. 8153 (JFK)
STIPULATION AND ORDER-
AMENDMENT OF THE COMPLAINT AND THE ANSWER
IT IS HEREBY STIPULATED AND AGREED by and
between the parties to the above-entitled action, by their
respective undersigned attorneys, that pursuants to Rule 15(a)
of the Federal Rules of Civil Procedures, the Complaint and the
Answer heretofore filed in this action be, and they hereby are,
deemed amended as follows:
1. The Complaint is hereby amended by:
a) Deeming the Schedule "A" annexed to this Stipulation as
being annexed to and made a part of the Complaint;
b) Adding the following sentence at the end of Paragraph "2"
of the Complaint:
"Attached hereto and made part of this Complaint as Schedule
"A" is a list identifying both the "Class Compositions" and the
"Frank Work" (as such terms are hereinafter referred to in
musical compositions as well as the members of the Class,
which in addition to Plaintiff, totals three hundred and eighty-
three (383) music publishers."
c) Substituting the following for the first line of Paragraph "3"
of the Complaint:
"3. The Class, in addition to Plaintiff, numbers three hundred
and eighty three (383),"
d) Substituting the following for the first five (5) lines of
Paragraph "11" of the Complaint:
"11. Members of the Class are, and at all times relevant herein
were, the copyright owners of their respective musical
compositions as identified on Schedule "A" (the "Class
Compositions"), which Class Compositions:
A. number nine hundred and forty-six (946);"
e) Substituting the following for the first three (3) lines of
Paragraph "13" of the Complaint:
"13. Compuserve in providing access to its Bulletin Board (in
particular its "MIDI**/Music Forum" and various "libraries"
therein, as well as over thirty other "Forums" by its paying
subscribers, is, and at all relevant times"
2. The responses set forth in the Answer (as originally filed)
are hereby deemed responsive to the allegations set forth in the
Complaint as herinabove amended.
Dated: October 25, 1995, New York, New York
SILVERMAN & SHULMAN, P.C.
By: /s/ Alan L. Shulman [AS 9520]
136 East 57th Street
New York, New York 10022
(212) 758-2020
Attorneys for Plaintiff and the Plaintiff Class
DEBEVOISE & PLIMPTON
By: /s/Bruce P. Keller
875 Third Avenue
New York, New York 10022
(212) 909-6000
Attorney for Defendant
SO ORDERED:
Dated: November 7, 1995, New York, New York
By:
Hon. John F. Keenan, U.S.D.J.
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