Nat'l Council of Strength & Fitness v. Freeplay Music - complaint.pdf

8/17/2019 Nat'l Council of Strength & Fitness v. Freeplay Music - complaint.pdf

1/28

F i l i n g # 4 1 0 1 3 8 9 5

E -F i l ed

0 5 / 0 3 / 2 0 1 6 0 1 : 2 4 : 3 2 P M

IN THE C I R C U I T C O U R T OF THE 11TH

J U D I C I A L C I R C U I T

IN AN D FOR

M I A M I - D A D E C O U N T Y , F L O R I D A

G E N E R A L J U R I S D I C T I O N D I V I S IO N

N A T I O N A L C O U N C I L OF S T R E N G T H &

C A S E N 0

.

F I T N E S S C O R P O R A T I O N ,

a

F l o r i d a

c o r p o r a t i o n

Pla in t i f f ,

v s .

F R E E P L A Y M U S I C , LLC, a D e l a w a r e

l i m i t e d l i a b i l i t y c o m p a n y and T U N E S A T ,

LLC, a

D e l a w a r e l i m i t e d l ia b i li t y c o m p a n y ,

D e f e n d a n t s .

/

C O M P L A I N T

P l a i n t i f f , N a t i o n a l C o u n c i l of S t r e n g t h & F i t n e s s C o r p o r a t i o n ("Plaintiff' or

" N C S F " ) , h e r e b y s u e s D e f e n d a n t s F r e e p l a y M u s i c , LLC ( " F r e e p l a y " ) and T u n e s a t , LLC

( " T u n e s a t " ) ( c o l l e c t i v e l y the " D e f e n d a n t s " ) , an d a l l e g e s as f o l l o w s :

P A R T I E S ,

J U R I S D I C T I O N , AND V E N U E

1 . T h i s

is an

a c t i o n

for

d a m a g e s

in

e x c e s s

of

F i f te e n T h o u s a n d D o l l a rs

( $ 1 5 , 0 0 0 . 0 0 ) , e x c lu s i v e

of

c o s t s , i n te r e s t ,

and

a t t o r n e y ' s f e e s .

2 . At all r e l e v a n t t im e s , N C S F was a F l o r i d a c o r p o r a t i o n , w i t h its p r i n c i p a l

p l a c e of b u s i n e s s in M i a m i - D a d e C o u n t y , F l o r i d a .

3 . U p o n i n f o r m a t i o n

and

b e l ie f , F r e e p l a y

is a

D e la w a r e l im i te d l i a b i li t y


2/28

P a g e

2 of 26

C a s e

No.

4 U p o n i n f o r m a t i o n

and

b e l ie f , T u n e s a t

is a

D e l a w a r e l i m i t e d l ia b i li ty

c o m p a n y , w i t h it s p r i n c i p a l p l a c e of b u s i n e s s in Ne w Y o r k , Ne w Y o r k .

5 . F r e e p l a y and T u n e s a t h a v e c o n d u c t e d b u s i n e s s in M i a m i - D a d e C o u n t y ,

F l o r i d a and h a v e s u b j e c t e d t h e m s e l v e s to the c o u r t s of t h i s j u r i s d i c t i o n .

6 . V e n u e is p r o p e r in M i a m i - D a d e C o u n t y b e c a u s e , at all r e l e v a n t t i m e s ,

F r e e p l a y

and

T u n e s a t c o n d u c t e d b u s i n e s s

in

M i a m i - D a d e C o u n t y

and the

c a u s e s

of

a c t i o n a c c r u e d in M i a m i - D a d e C o u n t y .

N A T U R E O F T H E A C T I O N

7 . T h i s a c t i o n a r i s e s f r o m y e a r s of f a l s e and d e c e p t i v e a d v e r t i s i n g by

D e f e n d a n t s

to

l u r e u n s u s p e c t i n g u s e r s i n t o b e l i e v i n g t h a t

the

m u s i c o f fe r e d

on th e

w e b s i t e w w w . f r e e p l a v m u s i c . c o m is " f r e e . " B e g i n n i n g w i t h it s v e r y n a m e - " F r e e p l a y "

- D e f e n d a n t s ' b u s i n e s s m o d e l is p r e m i s e d on F r e e p l a y e n t i c in g c o n s u m e r s to

d o w n l o a d w h a t is p r o m i n e n t l y a d v e r t i s e d to the p u b l i c to be " f r e e " m u s i c f r o m its

w e b s i t e w w w . f r e e p l a y m u s i c . c o m , and t h e n , u t i l i z in g T u n e s a t to h u n t ou t c o n s u m e r s

w h o s u c c u m b e d

to the

e n t i c e m e n t ,

to

t h r e a t e n

and to

c o m m e n c e , c o p y r i g h t s t r i k e

l a w s u i t s in an a t t e m p t to ex t o rt v a s t a m o u n t s of m o n e y a f t er t he c o n s u m e r a c t u a l l y

u s e s t h a t m u s i c . S i n c e it s i n c e p t i o n in 200 1, F r e e p l a y ha s a s s e r t e d c o p y r i g h t

i n f r i n g e m e n t c l a i m s in at l e a s t two d o z e n l a w s u i t s , e x tr a c t in g s e t t l e m e n t s in t h e s e

l i t i g a t i o n m a t t e r s and, u p o n i n f o r m a t i o n and b e l i e f , in an u n t o l d n u m b e r of o t h e r

i n s t a n c e s w h e r e

the

s i m p l e t h r e a t

of

l i t i g a t i o n

was

e n o u g h

to

e x t r a c t

a

s h a k e d o w n

f r o m c o n s u m e r s who m i s t a k e n l y t h o u g h t t h e y w e r e g e t t in g e x a c t l y w h a t

w w w . f r e e p l a y m u s i c . c o m a d v e r t i s e s - m u s i c th a t was " f r e e " to use .

http://www.freeplavmusic.com/http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/


3/28

P a g e 3 of 26 C a s e No.

p r a c t i c e s to Y o u T u b e , a p la t f o r m u s e d by t e n s , if not h u n d r e d s , of m i l l i o n s of u s e r s

a r o u n d

the

w o r l d

to

u p l o a d v i d e o s . W h e n

a

c o n s u m e r l o o ki n g

fo r

m u s i c

to

i n c o r p o r a t e

i n to

a

Y o u T u b e v i d e o s e a r c h e s G o o g l e w it h

the

t e r m " f r e e m u s i c , "

one of the top

t h r e e

s e a r c h r e s u l t s is F r e e p l a y ' s w e b s i t e , w w w . f r e e p l a y m u s i c . c o m . . A u s e r who c l i c k s

t h r o u g h to F r e e p l a y ' s w e b s i t e t h e n s e e s the f o l l o w i n g o f f e r, p r o m i n e n t l y d i s p l a y e d on

F r e e p l a y ' s h o m e p a g e :

a SEARCH

F r e e p l a y ' s c o p y r i g h t i n fr i n g e m e n t c l a i m s ar e p r e m i s e d on the a b s o l u t e f a l s i ty of t h i s

p r o m i s e

of

"f r e e m u s i c

for

Y o u T u b e . "

9 . F r e e p l a y ' s w e b s i t e ,

as it

e x i s t s today, a l l o w s

a

c o n s u m e r

to "ad d to

c a r t "

a

s p e c i f i c t r a c k or a l b u m - w h i c h a r g u a b l y s u g g e s t s the n e e d to p u r c h a s e the t r a c k . The

u s e r

is

t h e n r e q u i r e d

to

s e l e c t

a

l i c e n s e t y p e

and to

e f f e c t

the

p u r c h a s e . H o w e v e r ,

at all

t i m e s m a t e r i a l h e r e t o , w h e n P la i n ti ff a c c e s s e d the F r e e p l a y w e b s i t e in o r d e r to

http://www.freeplaymusic.com/http://www.freeplaymusic.com/


4/28

P a g e

4 of 26

C a s e

No.

a n y t i m e ,

in th e

f o r m

of an MP3

f i le , w i t h o u t

any

k n o w le d g e , a w a r e n e s s

or

r e q u i r e m e n t

o f f e e s , c h a r g e s

or

l i c e n s e r e s t r i c t io n s .

1 0 .

P la in t i f f ,

,

li k e m o s t

of

F r e e p l a y ' s v i c t i m s , l e a r n e d t h a t F r e e p l a y ' s

p r o m i s e

of

" fr e e m u s i c

fo r

Y o u T u b e "

was

f a l s e o n l y w h e n F r e e p l a y

and

T u n e s a t ,

in

c o l l u s i o n w i t h F r e e p l a y , s e n t

a

d e m a n d

for

p a y m e n t

fo r

c l a im e d d a m a g e s , b a s e d

on

t h e o u t r a g e o u s n o t i o n t h a t

the

u s e r ' s u n w i t t i n g " c o p y r i g h t i n f r i n g e m e n t "

wa s

" w i l l f u l . "

1 1 .

F r e e p l a y ' s f a ls e a d v e r t i s i n g

ha s

h a r m e d P la i n t if f , a l o n g w i t h

an

u n t o l d

n u m b e r

of

c o n s u m e r s

wh o

i n n o c e n t l y

use

F r e e p l a y ' s " f r e e" m u s i c

in

c r e a t i n g

t h e ir Y o u T u b e v i d e o s . T h e s e c o n s u m e r s , i n c l u d in g P la in t i ff , b e c a m e

the

v i c t i m s

of the

D e f e n d a n t s ' e x o r b i t a n t s e t t l e m e n t d e m a n d s

and had to

t a k e t h e i r v i d e o s d o w n .

D e f e n d a n t s ' t a c t ic s h a v e d e p r i v e d P l ai nt if f

of the

de

minimis

f a i r

use of

s m a l l

s e g m e n t s

of the

v i d e o s . M o r e s i g n i f ic a n t ly , h o w e v e r ,

in

t h i s a c t i o n , D e f e n d a n t ' s l u ll e d

P l a i n t i f f i n t o b e l i e v i n g

it wa s

e n t i t l e d

to use the

m u s i c , o n l y

to

th e n m a k e

an

u n e x p e c t e d ,

e x t o r t i o n a t e f i n a n c i a l d e m a n d a g a i n s t P l a i n t i f f , w i t h

no

o p p o r t u n i t y

fo r

P l a i n t i f f

to

c a n c e l ,

r e q u i r i n g P l a i n t i f f

to

e i t h e r c a p i t u l a t e

to the

e x t o r t i o n a te d e m a n d

or

i n c u r s i g n i f i c a n t

l e g a l f e e s

to

d e f e n d a g a i n s t D e f e n d a n t s ' i m p r o p e r c l a i m s

of

c o p y r i g h t

" i n f r i n g e m e n t " c a u s e d

by

F r e e p l a y ' s d e l i b e r a t e f a l s e

and

d e c e p t i v e a d v e r t i s i n g .

F A C T S R E L E V A N T T O A L L C L A I M S

1 2 .

N C S F

is an

a c c r e d i t a t i o n a g e n c y w h i c h p r o v i d e s t r a i n in g

for, and

t e s t s

the

k n o w l e d g e

and

s k i l l s

of,

c o a c h e s

and

t r a i n e r s

in the

f i e l d s

of

p h y s i c a l a c t i v i ty , p e r s o n a l

t r a i n i n g

and

a t h l e t i c c o n d i t i o n i n g . N C S F e a r n s

its

r e v e n u e s f r o m

the

s a l e

of

s t u d y


5/28

P a g e 5 of 26 C a s e

No.

g e n e r a t i n g a c t i v i t i e s as p a r t of its m i s s i o n . One s u c h a c t i v i ty is t he e d u c a t i o n of th e

p u b l i c r e g a r d i n g s a f e

and

e f fe c t iv e e x e r c i s e t e c h n i q u e s .

The

v i d e o s c o n t a i n i n g

the

m u s i c w h i c h is th e s u b j e c t of t h i s a c t i o n w e r e i n s t r u c t i o n a l v i d e o s i l l u s t r a t in g t he c o r r e c t

p o s t u r e and t e c h n i q u e to p e r f o r m c e r t a i n p h y s i c a l e x e r c i s e s . Th e v i d e o s w e r e

i n s t r u c t i o n a l and e d u c a t i o n a l in n a t u r e , as t h e y di d not a d v e r t i s e any g o o d s a n d / o r

s e r v i c e s p r o v i d e d

by

N C S F ,

and ,

m o s t i m p o r t a n t l y ,

did not

g e n e r a t e

any

d i r e c t

or

i n d i r e c t r e v e n u e

for

N C S F .

1 3 .

F r e e p l a y p u r p o r t s

to be th e

o w n e r

and

o p e r a t o r

of th e

w w w . f r e e p l a y m u s i c . c o m w e b s i t e .

1 4 .

Tunesat purports to be the enforcement

a g e n c y

for Freeplay and

o t h e r

c o p y r i g h t o w n e r s . A c c o r d i n g to T u n e s a t ' s w e b s i t e , T u n e s a t e m p l o y s an a u t o m a t e d

" l i s t e n i n g " s y s t e m

to

d e t e c t u n a u t h o r i z e d u s e s

of its

c l i e n t s ' m u s i c . T u n e s a t p r i d e s i ts e l f

o n b e i n g a b l e

to

r e c o g n i z e , u s i n g

it s

p r o p r i e t a r y t e c h n o l o g y ,

an

u n a u t h o r i z e d

use of

m u s i c as s h o r t as a t h r e e s e c o n d c l i p , e v e n if th e m u s i c c l ip has undergone a certain

l e v e l of e d i t i n g .

1

H o w e v e r , T u n e s a t ' s s y s t e m d o e s no t h a v e the c a p a b i l i ty to i n q u i r e

a b o u t t he c ir c u m s t a n c e s of the " u n a u t h o r i z e d u s e . " T h a t is, th e " l is t e n i n g " s o f t w a r e d o e s

n o t r e c o g n i z e w h e t h e r

a

t r a c k ,

or

p o r t i o n t h e r e o f ,

is

b e i n g played

in a

c l a s s r o o m

e n v i r o n m e n t ,

or by a

n o n - p r o f it o r g a n i z a t i o n ,

or, as in the

i n s t a n t c a s e

, in the

c o n t e x t

of

p u b l ic e d u c a t i o n a l v i d e o s . I n s t e a d , T u n e s a t ' s s o f t w a r e m e r e l y r e c o r d s any and al l u s e s

o c c u r r e d w i t h o u t a l i c e n s e as " v i o l a t io n s . "

1 5 . F r e e p l a y a l s o p u r p o r t s to be th e o w n e r of v a r i o u s c o p y r i g h t s in m u s i c a l

w o r k s a v a i l a b l e for d o w n l o a d on the w w w . f r e e p l a y m u s i c . c o m w e b s i t e .

http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/


6/28

P a g e

6 o f 26

C a s e

No.

1 6 .

F r e e p l a y h e a v i l y p r o m o t e s i ts e l f

as

o f f e r in g f r e e m u s i c

to

u s e r s .

In

l i gh t

of

t h e l i m i t e d

us e

t h a t P l a i n t i f f

was

i n t e n d i n g

to

m a k e

of the

m a t e r i a l ,

the

a d v e r t i s i n g

b e n e f i t s

to

F r e e p l a y ,

and the

a b s e n c e

of any

c l e a r p r e c l u s i o n

to the

P l a i n t i f f ' s

d o w n l o a d s , P la i n ti ff w h o l l y b e l i e v e d

and

r e l ie d u p o n F r e e p l a y ' s r e p r e s e n t a t i o n s

r e g a r d i n g

the

f r e e n a t u r e

of the

d o w n l o a d s .

On

i n f o r m a t i o n

and

b e l i e f, t h r o u g h

the

d a t e

o f

the

f i l i n g

of

t h i s l a w s u i t ,

the

w w w . f r e e p l a v m u s i c . c o m w e b s i t e c o n t a i n e d h u n d r e d s

of

u s e s

of the

w o r d " f r e e "

in its

m e t a d a t a , i n c l u d i n g

the

s t a n d - a l o n e p h r a s e s " f r ee m u s i c

d o w n l o a d s "

and

" f r e e m u s i c . "

1 7 . The

s t a t e m e n t s

in th e

m e t a d a t a t h at

the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e

o f f e r e d " f r e e c o n t e n t , " " f r e e m u s i c , "

and

" f r e e

music

d o w n l o a d s , " c a u s e d

the


to

a p p e a r t h i r d f r o m

the top in the

r e s u l t s

of

G o o g l e

I n t e r n e t s e a r c h e s

for

" f r e e m u s i c . "

1 8 . The

s t a t e m e n t s

in th e

m e t a d a t a t h at

the

w w w . f r e e p l a y m u s i c . c o m

w e b s i t e o f f e r e d " f r ee c o n t e n t , " " f r e e m u s i c , "

and

" f re e m u s i c d o w n l o a d , " c o n s t i tu t e d

a f f i r m a t i v e r e p r e s e n t a t i o n s

by

F r e e p l a y t h a t

the

m u s i c a v a i l a b l e

on th e


was

i n d e e d f r e e

to

d o w n l o a d

and use.

1 9 . W h e n N C S F d o w n l o a d e d m u s i c f r o m

the

w w w . f r e e p l a y m u s i c . c o m ,

the

w e b s i t e

did not

u t i l i ze

a

s h o p p i n g c a r t

or any

o t h e r p a y m e n t f e a t u r e

to

co l l e c t

p a y m e n t

in

o r d e r

to

d o w n l o a d m u s i c f ro m

the

w e b s i t e . V i s i t o rs

to the

w e b s i t e c o u l d

f r e e l y d o w n l o a d

any

m u s i c a v a i l a b l e

on the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e , w i t h

the

c o m p l e t e

and

r e a s o n a b l e b e l i e f t h a t

the

d o w n l o a d

was

p e r m i s s i b le

and not

i n f r i n g i n g .

2 0 .

N C S F , w h e n

it

d o w n l o a d e d m u s i c f r o m

the

F r e e p l a y w e b s i t e ,

did so

f u l l y

http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/


7/28


i n f r i n g i n g .

2 1 .

W h e n N C S F d o w n l o a d e d

the

m u s i c f r o m w w w . f r e e p l a v m u s i c . c o m ,

the

w e b s i t e did not re q u e s t p a y m e n t nor did it r e q u i r e N C S F to a g r e e to any t e r m s of use in

o r d e r

to

d o w n l o a d m u s i c f r o m

the

w e b s i t e .

2 2 . W h e n N C S F d o w n l o a d e d the m u s i c f r o m w w w . f r e e p l a v m u s i c . c o m . the

w e b s i t e

did not

e v e n r e q u i r e u s e r s

to

r e a d ,

let

a l o n e a g r e e

to, any

w a r n i n g , t e r m s

of use

o r o t h e r i n d i c a t i o n t h a t F r e e p l a y m i g h t r e q u e s t p a y m e n t for use of the m u s i c in o r d e r to

d o w n l o a d m u s i c f r o m the w e b s i t e . S i m i l a r ly , the w e b s i te did not r e q u i r e N C S F to o b t a i n

a l i c e n s e for the d o w n l o a d e d m u s i c p r io r to d o w n l o a d i n g .

2 3 .

F r e e p l a y ' s f a i l u r e

to

i n d i c a t e t h a t F r e e p l a y m i g h t s e e k p a y m e n t

fo r

u s i n g

m u s i c m a d e a v a i l a b l e on the w w w . f r e e p l a y m u s i c . c o m w e b s i t e c o n s t i t u t e s a

n o n d i s c l o s u r e and c o n c e a l m e n t of a m a t e r i a l f a c t r e g a r d i n g F r e e p l a y ' s a l l e g e d a s s e r t i o n

t h a t it is e n t i t l e d to p a y m e n t for c e r ta i n u s e s of m u s i c m a d e a v a i l a b l e on the w e b s i t e .

2 4 . F r e e p l a y ' s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e ,

and

c o n c e a l m e n t , c o u p l e d

w i t h the s t r u c t u r e and o r g a n i z a t i o n of the w w w . f r e e p l a y m u s i c . c o m w e b s i t e , c r e a t e d an

a c t u a l or i m p l i e d l i c e n s e to d o w n l o a d and use the m u s i c t ha t was a v a i l a b l e on the

w e b s i t e and p r o m o t e d as b e i n g " f r e e . "

2 5 . F r e e p l a y ' s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e , c o n c e a l m e n t , and s t r u c t u r e

a n d o r g a n i z a t i o n of the w e b s i t e w w w . f r e e p l a y m u s i c . c o m l e a d s u s e r s in g e n e r a l , and

s p e c i f i c a l l y

led

N C S F i nt o r e a s o n a b l y b e l i e v i n g

and

e x p e c t i n g t h a t

the

m u s i c

on the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e was f r e e as a d v e r t i s e d . It is o n l y a f t e r u s e r s , s u c h as

http://www.freeplavmusic.com/http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/http://www.freeplavmusic.com/


8/28

P a g e

8

o f

26

C a s e N o .

l i ti g a t i o n f o r c o p y r i g h t i n f r i n g e m e n t .

2 6 .

O n i n f o r m a t i o n a n d b e l ie f , F r e e p l a y a n d / o r T u n e s a t s e a r c h w e b s i t e s t o

i d e n t i f y i n s t a n c e s w h e r e m u s i c f r o m t h e w w w . f r e e p l a v m u s i c . c o m w e b s i t e is b e i n g u s e d ,

a n d t h e n im p r o p e r l y d e m a n d p a y m e n t f o r a l l e g e d c o p y r i g h t i n f r i n g e m e n t f r o m t h o s e

u s e r s t h a t d o w n l o a d e d t h e m u s i c b e l i e v i n g t h e m u s i c t o b e f r e e .

2 7 .

O n o r a b o u t S e p t e m b e r 2 0 1 5 , F r e e p l a y a n d / o r T u n e s a t , in c o l l u s i o n w i t h

F r e e p l a y , c o n t a c t e d N C S F , a n d a s s e r t e d t h a t c e r t a i n v i d e o s o n N C S F ' s w e b s i t e

i n c l u d e d m u s i c c o p y r i g h t e d b y F r e e p l a y a n d d e m a n d e d t h a t N C S F c e a s e a n d d e s i s t

f r o m u s e o f t h e m u s i c

2 8 .

N C S F p u r c h a s e d t h e p a i d l i c en s e s t h a t T u n e s a t d e m a n d e d a s s o o n a s

p r a c t i c a b l e a f t e r c o n s u l t a t i o n w i t h c o u n s e l .

2 9 . D e s p i t e N C S F ' s p r o m p t a n d g o o d f a i t h p u r c h a s e o f t h e l i c e n s e s t h a t

T u n e s a t d e m a n d e d , T u n e s a t r e f u s e d t o h o n o r th e l i c e n s e s c l a i m i n g th a t t h e y w e r e n o t

v a l i d b e c a u s e N C F S h a d p u r c h a s e d t h e m i n " b a d f a i t h "

3 0 . N C S F v o l u n t a r i l y t o o k d o w n t h e i d e n t i fi e d v i d e o s p r o m p t l y t h e r e a f t e r.

3 1 . D e s p i t e N C S F ' s p r o m p t r e m o v a l o f t h e v i d e o s id e n t i fi e d b y F r e e p l a y

a n d / o r T u n e s a t , i n c o l l u s i o n w i t h F r e e p l a y , F r e e p l a y a n d / o r T u n e s a t i n c o l l u s i o n w i t h

F r e e p la y , d e m a n d e d a $ 1 0 6 , 0 0 0 . 0 0 p a y m e n t .

3 2 . O n M a r c h 1 , 2 0 1 6 , N C S F , b y a n d t h r o u g h u n d e r s i g n e d c o u n s e l ,

e x p l a i n e d in a d e t a i l e d le t t e r t h a t F r e e p l a y ' s a s s e r t i o n o f c o p y r i g h t i n f r i n g e m e n t w a s

i m p r o p e r , i n p a r t , b e c a u s e o f t h e r e p e a t e d u s e o f t h e w o r d " f r e e " in t h e

http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/


9/28


the website.

33.

Subsequent

to the

time that NCSF downloaded

the

music from

www. f re e p l a ymu s i c . co m. Freeplay revised its website to implement changes. However,

Freeplay did not notify NCSF of those revisions. Nonethe less, Freeplay and/or

Tunesat, in collusion with Freeplay, sought to retroactively impose and enforce the

amended

and

revised terms against NCSF.

FREEPLAY'S FALSE AND MISLEADING OFFER OF FREE MUSIC

34.

NCSF seeks redress for Freeplay's deliberate and unlawful false and

misleading representations that its music is free to use on YouTube videos.

35.

Freeplay

is the

third result shown

in a

Google search

for

free music.

It

appears high in the results of other Internet searches as

well :

G o c g f e f e e music

H A p» Videos Shopping

N w i

Mo ra * Semen t&o i j

Aftoirt 1 WO WBJXti rasuttc ?.i 44 *ee«nd»)

R o y a l t y f r e e t h e m e m u s i c - b o u n d o f f . c o m

*:53 www ta»ur;dcff.com/ "

l

or your pedeast. youtube video, or personal dvd project Preview at

F r e e M u s i c A r c h i v e

i TMiT iua ica rc .n t v ie . o rg / • Fran w w . w w »

Archive of public do main and Creative Commo ns licensed tonga managed «vrth a

curatorial approach

Instrumental

•

Electronic • Rock ••

Pop

J a n g o : F r e e M u s i c O n l i n e - I n te rn e t Ra d i o

www.jango

com.' *

Ja n g o

v

Fr ee internet ra dio, just like Pandora only fewer

ad* and

mare variety. List en

tc

hundreds

of

genre stations

or

create your

own

wit h youi favorite m us ic

Ellie Goulding

-

Bruno Mars

- Wiz

Khalifa

•

Today' e Trjp

100

F r e e p l a y

M u s i c

|

W e l c o m e

| T h e

b e s t m u s i c l i b r a r y

o n th e ...

f r e re i p l a ymu s le .co m/

»

15000 SONGS. FREE MUSIC

FDR

YOUTUBE AND MORE.

THE

SOUND

OF

YOUR

NEXT PROJECT STARTS HERE.

http://www.freeplaymusic.com/http://boundoff.com/http://itmitiuaicarc.ntvie.org/http://itmitiuaicarc.ntvie.org/http://www.jango/http://www.jango/http://frereiplaymusle.com/http://frereiplaymusle.com/http://frereiplaymusle.com/http://www.jango/http://itmitiuaicarc.ntvie.org/http://boundoff.com/http://www.freeplaymusic.com/


10/28

P a g e 1 0 o f 2 6 C a s e N o .

i n t h e G o o g l e s e a r c h f o r " f r e e m u s i c " d o i n f a c t p r o v i d e f r e e m u s i c .

3 7 . It is r e a s o n a b l e a n d j u s t i f i a b l e t h a t a c o n s u m e r t h a t p r o c e e d s t o

F r e e p l a y ' s w e b s i t e ( w w w . f r e e p l a v m u s i c . c o m . w h i c h p r o m i n e n t l y o f f e rs " F R E E M U S I C

F O R Y O U T U B E " ) , a f te r s e a r c h i n g t h e in t e r n e t f o r " f re e m u s i c , " w o u l d a s s u m e t h a t

F r e e p l a y ' s m u s i c is a l s o f r e e .

3 8 . I n d i v i d u a l Y o u T u b e u s e r s w h o a r e l u r e d b y F r e e p l a y ' s r e p r e s e n t a t i o n s o f

" f r e e "

m u s i c f o r t h e ir Y o u T u b e v i d e o s h a v e t h e o p p o r t u n i t y t o b r o w s e F r e e p l a y ' s

c a t a l o g o n it s w e b s i t e . T h i s c a t a l o g i s a l s o d i r e c t l y a c c e s s i b l e f r o m G o o g l e , w i t h o u t

h a v i n g t o n a v i g a t e f i rs t t o F r e e p l a y ' s h o m e p a g e :

Freeplay Music j Welcome j The best music library on the ...

freepiaymus;c.cor?V •*

15000 SONGS. FREE MUSIC FOR YOUTUBE AND MORE THE SOUND OF YOUR

N E X T P R O J E C T S T A R T S H E R E .

B row s e C a t a l og • Log i n - N ew l y A d de d • H ow f t W ork s

3 9 .

B e f o r e , i ts w e b s i t e c h a n g e d , i n o r a b o u t 2 0 1 4 , F r e e p l a y d i d n o t r e q u i r e i ts

w e b s i t e u s e r s t o u s e a n y s h o p p i n g c a r t , o r t o r e a d o r a g r e e t o a n y t e r m s a n d c o n d i t i o n s ,

a n d n e v e r r e q u i r e d u s e r s t o p a y f o r a n y o f t h e m u s i c d o w n l o a d e d f r o m t h e w e b s i t e

w w w . f r e e p l a y m u s i c . c o m . A n y u s e r c o u l d s i m p l y s e l e c t a s o n g o r a l b u m f r o m t h e

h o m e p a g e , a n d t h e n c li c k o n t h e r e q u i r e d l e n g t h o f t h e d e s i r e d d o w n l o a d . A t th i s p o i n t ,

a t y p i c a l d o w n l o a d w i n d o w w o u l d o p e n , a l l o w i n g t h e u s e r t o e i t h e r o p e n o r s a v e t h e

d e s i r e d f i le : n o s h o p p i n g c a r t , n o p a y m e n t o p t i o n s , n o t e r m s a n d c o n d i t i o n s . N C S F

o b t a i n e d t h e m u s i c it d o w n l o a d e d f r o m w w w . f r e e p l a v m u s i c . c o m i n t h i s f a s h i o n .

http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/http://www.freeplavmusic.com/http://www.freeplaymusic.com/http://www.freeplavmusic.com/


11/28

Page 11 of 26

Case No .

40 Since that t ime, Freeplay has rev is ed i ts web s i te so that af ter br ow s ing

Free p lay ' s ca ta log and l is ten ing to sa mples , the user has the op t io n to se lec t "Ad d

to Car t " w i th respec t to any so ng . Upon checkout , the user is p rompted to s e le c t f ro m

a dropdow n me nu o f l i cens e opt io ns . Tw o o f these opt ions , s hown be low, are

"YouTube: Persona l use on YouTube on ly " and " In ternet : Persona l Use (YouTube

only):"


12/28

Page 12 of 26

Case No .

$0

^̂ ^̂ ̂w v̂v̂^̂ ^̂ ^̂ ^̂ ^̂ ^̂ vvAV •̂

S e l e c t

S&i&ct

Y o u T u b e

Bus iness Use-Youtube (unlimited URLs )(1 Year(8), $250.00)

B u s i n e s s

Multimedia Unlimited (non-broadcast) [worl0wldej(l Year(s)< 8250.00)

ttu k on Huici [single track](1 Year(8), S25.0Q)

Web Page Us e(1 Vtoarfc), 5100 00)

Multimedia on© us e (nojv broadcaety j wo rsdw id ^ ] (l Day(s), $50.00)

Oame/App Use(1 Yfeanjs), $150 00)

E d u c a t i o n

In-Cl.asaroom Uee(99 Year($). $0 00)

UlL Oris Act Play Co mp eti tion ^ M onth®., S.20.00)

Film

Commercial Film Festival (traek|(? Dayfs). $50.00)

Commercial Unlimited Film Festivals [per

tracNJ


13/28

P a g e 13 of 26

C a s e No.

4 1 . The

c o s t

of

b o t h

of

t h e s e c a t e g o r i e s

of

l i c e n s e s

is

z e r o ,

as

s h o w n

in

t h e i m a g e a b o v e .

4 2 .

W h i c h e v e r o p t i o n

t he

c o n s u m e r s e l e c ts ,

a

p o p u p w i n d o w a p p e a r s

for

a " M a s t e r R e c o r d i n g / S y n c h r o n i z a t i o n L i c e n s e "

( the

" L i c e n s e " ) ; S e c t i o n

4 of the

L i c e n s e s e t s f o r th

t he

p e r m i t t e d u s e s

as

f o l l o w s :

Y o u T u b e on ly ,"

the

L i c e n s e p e r m i ts " Y o u T u b e P e r s o n a l

use on

Y o u T u b e o n l y . "

( Y o u T u b e o n l y ) , "

the

L i c e n s e p e r m i ts " I n t e r n e t P e r s o n a l

U s e

( Y o u T u b e o n l y ) . "

4 3 . The

v i d e o s t h a t u t i l i z e d

the

d o w n l o a d e d

(and

v e r y a b b r e v i a t e d )

s e g m e n t s

of

m u s i c d i s p l a y e d p r o p e r e x e r c i s e

or

w o r k o u t t e c h n i q u e s

to

p r e v e n t i n j u r y

a n d

to

m a x i m i z e e f f e c t i v e n e s s . N C S F e a r n e d

no

f e e s f r o m t h e s e v i e w e r s ' p e r s o n a l

u s e

of the

v i d e o s

nor an y

p r o f i t f r o m

t he

v i d e o s

or the

m u s i c .

4 4 . A f t e r

the

L i c e n s e

is

s h o w n ,

all the

u s e r

has to do to

d o w n l o a d

the

m u s i c

and

o b t a i n

the

" f r e e " l i c e n s e

is to

e n t e r

an

e m a i l a d d r e s s

and

c l i c k

his or her

a c c e p t a n c e

of the

L i c e n s e .

The

l i c e n s e

and

d o w n l o a d t r a n s a c t i o n t a k e s p l a c e

d i r e c t l y

on

F r e e p l a y ' s w e b s i t e w w w . f r e e p l a v m u s i c . c o m . w h i c h , u p o n i n f o r m a t i o n

a n d b e l i e f ,

is

m a i n t a i n e d

and

o p e r a t e d f r o m F r e e p l a y ' s p l a c e

of

b u s i n e s s

in Ne w

Y o r k .

4 5 .

At no

p o i n t

in the

p r o c e s s

of

d o w n l o a d i n g F r e e p la y ' s m u s i c

is the

u s e r

If

the

c o n s u m e r s e l e c t s

the

o p t i o n

for

" Y o u T u b e : P e r s o n a l

use on

If

t he

c o n s u m e r s e l e c ts

the

o p t i o n

for

" I n t e r n e t : P e r s o n a l

Use

http://www.freeplavmusic.com/http://www.freeplavmusic.com/


14/28


a n y way. It is not s u r p r i s i n g t h e n t h a t m a n y , if not m o s t , of th e c o n s u m e r s who

d o w n l o a d F r e e p l a y ' s m u s i c , i n c l u d i n g N C S F , are not a w a r e of the f i n e p r i n t in

F r e e p l a y ' s u n i l a t e r a l " T e r m s of U s e . "

4 6 .

F r e e p l a y 's w e b s i t e and d o w n l o a d i n g m e t h o d s h a v e c h a n g e d s i n c e its

i n c e p t i o n and s i n c e N C S F ' s d o w n l o a d s . U p o n i n f o rm a t i o n and be l i e f , at all r e l e v a n t

t i m e s ,

F r e e p l a y

has

f a l s e l y , d e c e p t i v e l y

and

m i s l e a d i n g l y r e p r e s e n t e d t h a t

it s

m u s i c

wa s

" f r e e "

to use

u n d e r

the

c i r c u m s t a n c e s p r e s e n t e d

in

t h i s a c t i o n .

4 7 . B e c a u s e

of the

p o w e r f u l d r a w

of

"f r e e " p r o d u c t s

and

s e r v i c e s

on

c o n s u m e r s , v i r t u a l l y e v e r y l e v e l

of

g o v e r n m e n t

has

p r o m u l g a t e d r u l es , r e g u l a t i o n s

and

g u i d e l i n e s t h a t s p e c i f i c a l l y p r o h i b i t f a l s e

and

m i s l e a d i n g r e p r e s e n t a t i o n s c o n c e r n i n g

" f r e e " o f f e r s

of the

t y p e F r e e p l a y

has

m a d e .

4 8 .

The

F e d e r a l T r a d e C o m m i s s i o n ,

for

e x a m p l e ,

has

p r o m u l g a t e d

a

" G u i d e

C o n c e r n i n g the Use of the W o r d ' F r e e' and S i m i la r R e p r e s e n t a t i o n s . " ( the " G u i d e " )

2

)

T h e G u i d e e x p l a i n s : " B e c a u s e the p u r c h a s i n g p u b l ic c o n t in u a l l y s e a r c h e s for the b e s t

b u y , and r e g a r d s the o f f e r of ' F re e ' m e r c h a n d i s e or s e r v i c e to be a s p e c i a l b a r g a i n , all

s u c h o f f e r s m u s t be m a d e w i t h e x t r e m e c a r e so as to a v o i d any p o s s i b i l i t y t h a t

c o n s u m e r s w i l l be m i s l e d or d e c e i v e d . ' " 16 C . F . R . § 2 5 1 . 1 ( a ) ( 2 ) . The G u i d e t h u s

p r o v i d e s t h a t " [ w ] h e n m a k i n g ' F r e e ' or s i m i l a r o f f e r s all th e t e r m s , c o n d i t i o n s and

o b l i g a t io n s u p o n w h i c h r e c e i p t and r e t e n t i o n of the ' F r e e ' i t e m ar e c o n t i n g e n t s h o u l d be

s e t f o r t h c l e a r l y and c o n s p i c u o u s l y at the o u t s e t of the o f f e r so as to l e a v e no

r e a s o n a b l e p r o b a b i l i t y t h a t the t e r m s of the o f f e r m i g h t be m i s u n d e r s t o o d . " Id. at §

2 5 1 . 1 ( c ) .


15/28

Page 15 of 26 Case No.

4 9 . S im i l a r l y ,

the

R u l e s of

the City

of

Ne w

Y o r k

("RCNY"),

w h e r e , u p o n


and

b e l i e f, F r e e p la y

and

T u n e s a t

ar e

b a s e d , p r o v i d e t h a t

"[a]

s e l l e r

who

i m p o s e s ac o n d i t i o n on af r e e o f f e r m u s t d e s c r i b e thec o n d i t i o n c lear ly

and

c onsp i c uous l y

The desc r i p t i on of every c o n d i t i o n on af ree of fer m u s t be p laced

near the

wo rd f ree . .

T h i s c o n d i t i o n m u s t

be in

p r i n t

at

l e a s t h a l f

as

l a r g e

as the

p r in t

u s e d for the w o r d ' f r e e . ' " 6R C N Y §5 - 0 6 ( b ) ( e m p h a s i s a d d e d ) .

5 0 .

S i m i l a r l y ,

in

F l o r i d a , " [ a d v e r t i s i n g

in

w h i c h i t e m s

are

o f f e r e d

as

f r e e w i th

c o n d i t i o n s or o b l ig a t io n s n e c e s s a r y toa c c e p t a n c e s h a l l i n c l u d e a

clear and

c onsp i c uous s t a t e m e n t of an y s u c h c o n d i t i o n s or o b l i g a t io n s and a d v e r t i s i n g in

c o m p l i a n c e h e r e w i t h s h a l l

not be

c o n s i d e r e d d e c e p t iv e . "

F/a.

Stat. §8 1 7 . 4 1 5 ( 5 ) ( 2 0 1 5 )

( e m p h a s i s a d d e d ) .

5 1 .

N o t w i t h s t a n d i n g t h e s e r u l es

and

r e g u l a t io n s , F r e e p l a y hasb r a z e n l y

m i s r e p r e s e n t e d to c o n s u m e r s t h at it o f fe r s " F R E E M U S I C FOR Y O U T U B E , " w i t h o ut

t h e r e q u i s i t e " c l e a r

and

c o n s p i c u o u s " d i s c l o s u r e

of the

c o n d i t i o n s t h a t p u r p o r t e d l y m u s t

b e

met for the

o f f e r

of

" f r ee m u s i c "

to

a p p l y .

5 2 .

N C S F

has

b e e n d e c e i v e d

and

m i s l e d

by

F r e e p l a y ' s f a l s e

and

m i s l e a d i n g


and

r e p r e s e n t a t i o n s .

F R E E P L A Y S F A L S E

A D V E R T I S I N G

AND T U N E S A T S M A N I P U L A T I O N O F T H A T

F A L S E A D V E R T I S I N G HA S H A R M E D P L A I N T I F F AND T H E P U B L I C

5 3 . The

n a t u r a l

and

p r o x i m a t e -

and,

i n d e e d , d e l i b e r a t e - c o n s e q u e n c e of

F r e e p l a y ' s

and

T u n e s a t ' s m i s c o n d u c t

has

b e e n

the

v e r y c o p y r i g h t " i n f r in g e m e n t s " by

w h i c h F r e e p l a y

and

T u n e s a t p u r p o r t

to

h a v e b e e n i n j u r e d .

In

r e a l i t y , F r e e p la y

and


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No.

5 4 . F r e e p l a y

and

T u n e s a t h a v e a s s e r t e d c o p y r ig h t i n f r in g e m e n t c l a i m s

in

d o z e n s

of

a c t i o n s o v e r

the

la s t s e v e r a l y e a r s

and

h a v e t h r e a t e n e d

to

b r in g s u c h

an

a c t i o n a g a i n s t N C S F

in New

Y o r k

-

F r e e p l a y ' s

an d

T u n e s a t ' s h o m e s t a t e

-

w h i c h w o u l d

r e s u l t

in

N C S F i n c u r r i n g s i g n i f i c a n t e x p e n s e ,

to the

e x t r e m e p r e j u d i c e

of

N C S F . U p o n


and

b e l i e f , m o s t ,

if not all , of

F r e e p l a y ' s

and

T u n e s a t ' s p r i o r l it i g a ti o n m a t t e r s

r e s u l t e d

in

m o n e t a r y s e t t l e m e n t s

for

F r e e p la y t h a t e x c e e d e d w h a t

it

c o u l d

or

w o u l d h a v e

e a r n e d

in

l i c e n s e f e e s ,

had the

p u r p o r t e d t e r m s

of

u s a g e b e e n p r o p e rl y d is c l o s e d

on

F r e e p l a y ' s w e b s i t e w w w . f r e e p l a v m u s i c . c o m .

The

f o r c e d e x p e n s i v e s e t t le m e n t

by

l i t i ga t i on

is a key

p a r t

of

F r e e p l a y ' s

and

T u n e s a t ' s b u s i n e s s m o d e l .

5 5 .

U p o n i n f o rm a t i o n

and

be l i e f ,

a

s u b s t a n t i a l p o r t i o n ,

if not the

m a j o r i t y ,

of

F r e e p l a y ' s r e v e n u e

is

e a r n e d f r o m s e t t l e m e n t s f o l l o w i n g

its

t h r e a t s

or

ac tua l i n i t i a t i on

of

l i t i g a t i o n u p o n u s e r s

who

w e r e u n a w a r e

of any

i m p r o p e r u s e s

on

t he i r pa r t

and who

w e r e d e n i e d

any

o p p o r t u n i t y

by

F r e e p l a y

and

T u n e s a t

to

s i m p l y c e a s e

use of the

d o w n l o a d s o n c e T u n e s a t a p p r i s e d t h e m

of the

p u r p o r t e d v i o l a t i o n s .

5 6 .

U p o n i n f o r m a t i o n

and

b e li e f, F r e e p l a y a n d / o r T u n e s a t ,

in

c o l l u s i o n w i t h

F r e e p l a y , h a v e s e n t d e m a n d l e t t e r s

to

o t h e r i n d i v i d u a l s

and

e n t i t ie s w h o m t h e y h a v e

n e v e r s u e d ,

and who

e n t e r e d in t o m o n e t a r y s e t t l e m e n t s w i t h F r e e p l a y a n d / o r T u n e s a t

p r e c i s e l y

to

a v o i d

the

l it i ga t io n t h a t F r e e p l a y a n d / o r T u n e s a t i m p r o p e r l y t h r e a t e n e d ,

but

t h a t

its

v i ct i m s c o u l d

not

a f f o r d

to

d e f e n d .

5 7 . U p o n i n f o r m a t io n

and

b e li e f, F r e e p l a y a n d / o r T u n e s a t ,

in


F r e e p l a y , r o u t i n e l y d e m a n d p a y m e n t s

in

e x c e s s

of

$ 1 0 0 , 0 0 0 f r o m t h e i r v i c t i m s , w h e t h e r



17/28


s t a t e d c o s t to l i c e n s e w o r k s f r o m F r e e p l a y for " b u s i n e s s use" is $ 2 5 0 pe r w o r k , w h i c h is

o f

a

c o n s i d e r a b l e m a g n i t u d e l e s s t h a n

the

a m o u n t

of

F r e e p l a y ' s

and

T u n e s a t ' s

u n c o n s c i o n a b l e d e m a n d s .

5 8 .

O n c e T u n e s a t a d v i s e d N C S F

of the

a l l e g e d in f r i n g e m e n t , N C S F

v o l u n t a r i l y

and in

g o o d f a i t h o f f e r e d

to pay the

l i c e n s i n g

fe e, but

F r e e p l a y

and

T u n e s a t

r e j e c t e d N C S F ' s e f f o r t .

5 9 . In

o r d e r

to

f u r t h e r i n c r e a s e

its

d e m a n d s , T u n e s a t ,

on

b e h a l f

of

F r e e p l a y ,

d o e s

not

no t i fy

the

p o t e n t i a l " t a r g e t s "

of

t h e i r a l l e g e d i n f r i n g e m e n t s i m m e d i a t e l y a f t e r

l e a r n i n g

of said infringements. Instead, Tunesat waits until the

p u r p o r t e d i n f r i n g e m e n t s

a c c u m u l a t e o v e r t i m e , o n l y

to

t h e n s e n d le t te r s d e m a n d i n g o u t r a g e o u s s u m s

of

m o n i e s

f o r p a s t a l l e g e d " i n f r i n g e m e n t s . " S u c h l e t t e r s i n c l u d e

an

e x t e n s i v e li s t

of all the

" v i o l a t i o n s " a c c u m u l a t e d o v e r t i m e ,

as

w e l l

as

t h r e a t s

of

i m m i n e n t l i ti g a t io n .

6 0 . The d e m a n d s m a d e by T u n e s a t , on b e h a l f of F r e e p l a y , are p r e d a t o r y in

n a t u r e ,

and

m a d e

in bad

f a i t h :

a .

Th e demand letter sent by Tunesat, in collusion

w i t h

Freeplay,

d o e s

n o t t i m e l y n o t i f y N I C S F of the a l l e g e d i n f r in g e m e n t , nor d o e s it r e q u i r e , or e v e n p r o v i d e

a n o p p o r t u n i t y

for,

N C S F

to

r e m o v e

the

i n f r i n g i n g m a t e r i a l ; i n s t e a d ,

it

s i m p l y d e m a n d s

m o n e y ;

b.

The

d e m a n d l e tt e r in c l u d e s

a

l i s t

of

a l l e g e d "v i o l a t i o n s . " H o w e v e r ,

s u c h " v i o l a t i o n s " are a m e r e l is t of the p u b l i c " v i e w s " of the v i d e os . W h e n a v i d e o is

p o s t e d to a v i d e o s h a r i n g w e b s i t e , l i k e Y o u t u b e . c o m , m i l l i o n s of v i ew e r s h a v e a c c e s s to

http://youtube.com/http://youtube.com/


18/28


a t t e m p t e d

to

h o l d N C S F a c c o u n t a b l e

fo r

e a c h

and

e v e r y v i e w

the

p u b l i c m a d e

of

t h e s e

t w o v i d e o s , a l l e g i n g in its d e m a n d l e tt e r t h a t e a c h and e v e r y v i e w c o n s t i t u t e s a

" v i o l a t i o n ; " and

c.

The

d e m a n d l e tt e r d o e s

not

a f f o r d

any

r e a s o n a b l e o p p o r t u n i t y

to

c u r e the a l l e g e d i n f r i n g e m e n t . I n s t e a d , it c o n t a i n s t h r e a t e n i n g l a n g u a g e s u g g e s t i n g

i m m i n e n t l i t i g a t i o n , a d d i t i o n a l f e e s , p e n a l t i e s ,

and

i n t e r e s t

on

p a y m e n t s , u n l e s s

the

d e m a n d s are i m m e d i a t e l y s a t i s f i e d .

6 1 .

As a d i r e c t result of F r e e p l a y ' s f a l s e an d deceptive representations and

a d v e r t i s e m e n t s , N C S F , as w e l l as o t h e r v i c t i m s of F r e e p l a y ' s p r a c t i c e s , h a v e b e e n

f o r c e d

to

e x p e n d c o s t l y l e g a l f e e s

to

d e f e n d a g a i n s t F r e e p l a y ' s

and

T u n e s a t ' s ,

in

c o l l u s i o n w i t h F r e e p l a y , p r e d a t o r y l i t i g a t i o n e f f o r t s ,

al l

b a s e d u p o n

the

v e r y a l l e g e d

" i n f r i n g e m e n t s " F r e e p l a y

has

d e l i b e r a t e l y i n d u c e d t h r o u g h

its

f a l s e , d e c e p t i v e

and

m i s l e a d i n g a d v e r t i s e m e n t s

and

r e p r e s e n t a t i o n s . I n d e e d , th i s a c t i o n

is

N C S F ' s o n l y

a l t e r n a t i v e

to the

e x t o r t i o n a t e d e m a n d s t h a t F r e e p l a y

and

T u n e s a t ,

in


F r e e p l a y , are now m a k i n g in o r d e r to f o r e b e a r fr o m b r i n g i n g s u i t a g a i n s t N C S F in Ne w

Y o r k , w h e r e N C S F has no p l a c e of b u s i n e s s and no m e a n s by w h i c h to de f en d i t se l f.

6 2 . The

h a r m

to

N C S F e x t e n d s b e y o n d l eg a l f e e s . B e c a u s e N C S F re l i e d

on

F r e e p l a y ' s d e c e p t i v e o f f e r

of

" fr e e m u s i c "

and

u s e d d o w n l o a d e d m u s i c

in its

v i d e o s

(in

m o s t c a s e s , fo r de minimis d u r a t io n s ) , t h e s e v i d e o s w e r e r e m o v e d f r o m Y o u T u b e a f te r

F r e e p l a y a n d / o r T u n e s a t , in c o l l u s i o n w i t h F r e e p l a y , i s s u e d t a k e d o w n n o t i c e s to

Y o u T u b e .

The

w a s t e d t i m e , p r o d u c t i o n ,

and

e f f o r t t h w a r t e d N C S F ' s a b i l i ty

to

f u r t h e r

its


19/28


r e p r e s e n t a t i o n s h a v e t h e r e f o r e d a m a g e d N C S F

in its

r e p u t a t i o n

and

g o o d w i l l .

6 4 .

F r e e p l a y ' s

and

T u n e s a t ' s c o n d u c t

has

c a u s e d r e p u t a t i o n a l i n ju r y

by

f a l s e l y c a s t i n g N C S F as a c op y r i g h t i n f r i nge r .

6 5 . U n l e s s F r e e p l a y ' s

and

T u n e s a t ' s p r e d a t o ry b u s i n e s s p r a c t i c e s

are put to a

h a l t , N C S F

and

m e m b e r s

of the

p u b l i c w i l l c o n t i n u e

to be

h a r m e d ,

as

Y o u T u b e u s e r s

c o n t i n u e

to

d o w n l o a d

and use

w h a t t h e y b e l i e v e

to be

e x a c t l y w h a t F r e e p l a y a d v e r t i s e s -

" F R E E M U S I C FOR Y O U T U B E . "

C O U N T I

F E D E R A L

F A L S E

A D V E R T I S I N G

( A g a i n s t F r e e p l a y )

6 6 N C S F a d o p t s

and

r e - a l l e g e s

the

a l l e g a t i o n s

in

p a r a g r a p h s

1

t h r o u g h

6 5

as if

f u l l y

set

f o r t h h e r e i n ,

and

a l l e g e s f u r t h e r :

6 7 .

F r e e p l a y

has

m a d e f a l s e , d e c e p t iv e ,

and

m i s l e a d i n g d e s c r i p ti o n s

and

r e p r e s e n t a t i o n s of f a c t in its c o m m e r c i a l a d v e r t i s i n g c o n c e r n i n g the n a t u r e ,

c h a r a c t e r i s t i c s ,

and

q u a l i t i e s

of its

g o o d s , s e r v i c e s ,

and

c o m m e r c i a l a c t i v i t i e s ,

in

v i o l a t i o n of the L a n h a m Act, 15 U . S . C . S e c t i o n 1 1 2 5 ( a ) ( 1 ) ( B ) .

6 8 .

F r e e p l a y ' s f a l s e , d e c e p t i v e ,

and

m i s l e a d i n g d e s c r i p t i o n s

and

r e p r e s e n t a t i o n s t h a t

its

m u s i c

is

" f re e , " w i t h o u t a d e q u a t e d i s c l o s u r e

of the

c o n d i t i o n s

a n d l i m i t a ti o n s u n d e r w h i c h

its

m u s i c

is

p u r p o r t e d l y

not

" f r e e ," h a v e d e c e i v e d ,

and are

l i ke ly

to

d e c e i v e , p u r c h a s e r s

and

c o n s u m e r s , s u c h

as

N C S F .

69 . F r e e p l a y ' s f a l s e , d e c e p t i v e , and m i s l e a d i n g a d v e r t i s i n g h a v e c a u s e d

d a m a g e

to

N C S F

as

d e s c r ib e d

in

P a r a g r a p h s

61

t h r o u g h

65

a b o v e .

70 . F r e e p l a y ' s f a l s e , d e c e p t i v e , and m i s l e a d i n g a d v e r t i s i n g has c a u s e d ,


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C a s e

No.

v i e w e r s h i p ,

for

w h i c h t h e r e

is no

a d e q u a t e r e m e d y

at law.

P u r s u a n t

to 15

U . S . C .

S e c t i o n

1116,

N C S F

is

e n t i t l e d

to an injunction restraining

F r e e p l a y ,

its agents

( i n c l u d i n g T u n e s a t ) e m p l o y e e s , r e p r e s e n t a t i v e s and all p e r s o n s a c t in g in c o n c e r t w i t h it,

f r o m d i r e c t l y or i n d i r e c t l y e n g a g i n g in f u r t h e r a c t s of fa l s e a d v e r t i s i n g , and o r d e r i n g

r e m o v a l

of all of

F r ee p l a y 's f a l s e a d v e r t i s e m e n t s .

7 1 .

P u r s u a n t

to 15

U . S . C . S e c t i o n

1117,

N C S F

is

e n t i t l e d

to

r e c o v e r

the

d a m a g e s s u s t a i n e d

as a

r e s u l t

of

F r e e p l a y ' s a c t s

in

v i o l a t i o n

of

L a n h a m

Act

S e c t i o n

4 3 ( a ) ,

in an a m o u n t to be p r o v e n at t r ia l .

7 2 . P u r s u a n t to 15 U . S . C . S e c t i o n 1117, N C S F is e n t i t l e d to r e c o v e r f r o m

F r e e p l a y

the

p r o f it s t h a t

it has

o b t a i n e d

as a

r e s u l t

of its

f a l s e , d e c e p t i v e ,

and

m i s l e a d i n g a d v e r t i s i n g

7 3 . F r e e p l a y ' s c o n d u c t

is and , at all

r e l e v a n t t i m e s ,

has

b e e n w i l l fu l ,

d e l i b e r a t e , i n t e n t i o n a l , and in bad f a i t h . P u r s u a n t to 15 U.S.C S e c t i o n 1117, N C S F is

t h u s e n t i t le d to r e c o v e r a d d i t io n a l d a m a g e s , p r o fi t s and r e a s o n a b l e a t t o r n e y s ' f e e s .

W H E R E F O R E , N C S F d e m a n d s j u d g m e n t a g a i n s t D e f e n d a n t F re e p l a y M u s i c ,

L L C for compensatory d a m a g e s , t r e b l e d a m a g e s , pre - and p o s t - j u d g m e n t i n te r e s t ,

a t t o r n e y ' s f e e s and c o s t s , i n j u n c t i v e r e l ie f , and s u c h f u r t h e r r e l i e f as t h is C o u r t d e e m s

j u s t and p r o p e r .

C O U N T II

V I O L A T I O N OF F L O R I D A S D E C E P T I V E AND U N F A I R

T R A D E P R A C T I C E S A C T

( A g a i n s t F r e e p l a y an d T u n e s a t )


21/28


7 5 .

F l o r i d a ' s D e c e p t i v e

and

U n fa i r T r a d e P r a c t i c e s

Act,

F l o r i d a S t a t u t e s ,

S e c t i o n

501 20 1,

et seq.

( " F D U T P A " ) , p r o h i b i t s " u n f a i r m e t h o d s

of

c o m p e t i t i o n ,

u n c o n s c i o n a b l e a c t s

or

p r a c t i c e s ,

and

u n f a i r

or

d e c e p t i v e a c t s

or

p r a c t i c e s

in the

c o n d u c t

of any

t r a d e

or

c o m m e r c e . "

Fla.

S t a t .

§

5 0 1 . 2 0 4

7 6 . The

s t a te d p u r p o s e

of

F D U T P A

is to

p r o t e c t p e r s o n s f r o m " t h o s e

who

e n g a g e

in

u n fa i r m e t h o d s

of

c o m p e t i t i o n ,

or

u n c o n s c i o n a b l e , d e c e p t i v e ,

or

un f a i r ac t s

or

p r a c t i c e s

in the

c o n d u c t

of any

t r a d e

or

c o m m e r c e . "

Fla.

S t a t .

§

5 0 1 . 2 0 4 .

7 7 .

Florida

Statutes,

S e c t i o n 8 1 7 . 4 1 5 ( 5 ) r e q u i r e s t h a t: " [ a d v e r t i s i n g

in

w h i c h

i t e m s

are

o f f e r e d

as

f r e e w i t h c o n d i t i o n s

or

o b li g a t i o n s n e c e s s a r y

to

a c c e p t a n c e s h a l l

i n c l u d e

a

c lear and consp icuous s t a t e m e n t

of any

s u c h c o n d i t i o n s

or

o b l i g a t i o n s

and


in

c o m p l i a n c e h e r e w i t h s h a l l

not be

c o n s i d e r e d d e c e p t i v e " ( e m p h a s i s

a d d e d ) .

7 8 .

F r e e p l a y

and

T u n e s a t h a v e c o l l u d e d

in a

s c h e m e

to

p ro f i t

in

d e r o g a t i o n

a n d p u r p o s e f u l v i o l a t i o n

of the

r e q u i r e m e n t s

of

S e c t io n 8 1 7 . 4 1 5 ( 5 )

and

F D U T P A .

7 9 .

F r e e p l a y

and

T u n e s a t e n g a g e d

and

c o n t i n u e

to

e n g a g e

in the

c o n d u c t

of

t r a d e a n d / o r c o m m e r c e

in

F l o r i d a

and the

d e c e p t i v e c o n d u c t a l l e g e d h e r e i n

was

i m p l e m e n t e d

in

F l o r i d a

and

c a r r i e d

out

a c r o s s

the

c o u n t r y , i n c l u d i n g

the

M i a m i - D a d e

C o u n t y , F l o r i d a .

8 0 . The

p o l i c i e s , a c t s

and

p r a c t i c e s a l l e g e d h e r e i n w e r e i n t e n d e d

to

r e s u l t

and

d i d r e s u l t

in the

p a y m e n t

of

m i l l i o n s

of

d o l l a r s . S p e c i f i c a l l y :

a . F r e e p l a y and T u n e s a t h a v e e n g a g e d in u n f a i r and d e c e p t i v e p r a c t i c e s


22/28

P a g e

22 of 26

C a s e

No.

b . D e f e n d a n t s engaged in unfair and d e c e p t i v e p r a c t i c e s by i n t i m i d a t i n g

P la i n t i f f

and

o t h e r c o n s u m e r s w i t h

the

t h r e a t

of

l i t i g a t i o n

if

t h e y w e r e

no t

p a i d

an

e x o r b i t a n t

and

b a s e l e s s s e t t le m e n t

su m;

c . F r e e p l a y ' s f a l s e , m i s l e a d i n g ,

and

d e c e p t i v e s t a t e m e n t s

and

representat ions that its mus i c is " f ree," wi thout adequate disc los ure of the condi t ions

a n d l i m i ta t i o n s u n d e r w h i c h its m u s i c is p u r p o r t e d l y not " f r e e , " ar e d e c e p t i v e and

m a t e r i a l l y m i s l e a d i n g .

8 1 . D e f e n d a n t s ' s c h e m e was d e v i s e d and c a r r i e d out in F l o r i d a , w h i c h has an

i n t e r e s t

in

p r o h i b i t i n g v i o l a t i o n s

of

F D U T P A w i t h in

the

s t a t e

and

t h e n c a r r i e d

out

a c r o s s

t h e c o u n t r y .

8 2 . N C S F

has

s u s t a in e d d a m a g e s

as a

d i r e c t

and

p r o x i m a t e r e s u l t

of

D e f e n d a n t s ' u n f a i r and u n c o n s c i o n a b l e p r a c t i c e s . F l o r i d a S t a t u t e S e c t i o n 5 0 1 . 2 1 1 ( 2 )

p r o v i d e s N C S F a p r i v a te r i g h t of a c t i o n a g a i n s t D e f e n d a n t s , and e n t i tl e s N C S F to

r e c o v e r

its

a c t u a l d a m a g e s

and to

i n j u n c t i v e re l i e f, i n c l u d in g

an

o r d e r th a t D e f e n d a n t s

i m m e d i a t e l y c e a s e

and

d e s i s t t h i s u n c o n s c i o n a b l e p r a c t i c e .

8 3 .

D e f e n d a n t s ' c o n d u c t

is and , at all

r e l e v a n t t i m e s ,

has

b e e n w i l l f u l ,

d e l i b e r a t e , i n t e n t i o n a l ,

and in bad

f a i t h .

8 4 . N C S F

has

s u f f e r e d

and

w i l l c o n t i n u e

to

s u f f e r i r r e p a r a b l e h a r m

if the

D e f e n d a n t s c o n t i n u e

to

e n g a g e

in

s u c h d e c e p t i v e

and

u n f a i r p r a c t i c e s .

W H E R E F O R E , N C S F d e m a n d s j u d g m e n t a g ai n s t

the

D e f e n d a n t s

for

c o m p e n s a t o r y d a m a g e s , t re b l e d a m a g e s , pre- and p o s t - j u d g m e n t i n te r e s t , a t t o r n e y ' s

f e e s and c o s t s p u r s u a n t to F l o r i d a S t a t u t e § 5 0 1 . 2 1 0 5 , in j u n c t i v e r e li e f, c o s t s i n c u r r e d in


23/28

Page 23 of 26 Case No.

C O U N T III

D E C E I T - -

I N T E N T I O N A L

M I S R E P R E S E N T A T I O N ,

N O N D I S C L O S U R E

AND

C O N C E A L M E N T

( A g a i n s t F r e e p l a y )

8 5 . P l a i n t i f f a d o p t s

an d

r e a l l e g e s

the

a l l e g a t i o n s

in

p a r a g r a p h s

1

t h r o u g h

6 5

as if

f u l l y

se t

f o r t h h e r e i n ,

an d

a l l e g e s fu r th e r :

86 .

F r e e p l a y ' s w e b s i t e n a m e , w w w . f r e e p l a y m u s i c . c o m .

wa s, at all

r e l e v a n t

t i m e s , a

r e p r e s e n t a t i o n t h a t

the

m u s i c p r o v i d e d

on

th a t w e b s i t e

is

f r e e . T h i s

was an

a f f i r m a t i v e r e p r e s e n t a t i o n t h a t F r e e p l a y w o u l d not d e m a n d p a y m e n t for use of m u s i c

d o w n l o a d e d f r o m

the

w e b s i t e .

8 7 . On i n f o r m a t i o n and be l ie f , at all re l e v a n t t i m e s , and at l e a s t f r o m 2 0 0 8

t h r o u g h

the

d a t e s

of

N C S F ' s d o w n l o a d s

in

a p p r o x i m a t e l y

2010,

F r e e p l a y ' s w e b s i t e

i n c l u d e d s t a t e m e n t s

in the

m e t a d a t a t h a t

the

w w w . f r e e p l a y r n u s i c . c o m w e b s i t e o f f e r e d

" f r e e "

c o n t e n t , " f r e e m u s i c , "

and

" f r ee m u s i c d o w n l o a d . " T h e r e w e r e a l s o a f f i rm a t i v e

r e p r e s e n t a t i o n s t h a t F r e e p l a y w o u l d

not

d e m a n d p a y m e n t

for use of

m u s i c d o w n l o a d e d

f r o m

the

w e b s i t e .

8 8 . On


and

be l ie f ,

at all

re l e v a n t t i m e s ,

and at

le a s t f r o m 2 0 0 8

t h r o u g h the d a t e s of N C S F ' s d o w n l o a d s in a p p r o x i m a t e l y 2010 , the

w w w . f r e e p l a y r n u s i c . c o m w e b s i t e di d not h a v e any r e q u i re m e n t that u s e r s pay for m u s i c

o r e v e n a g r e e

to pay for

m u s i c

as a

c o n d i t i o n

of

d o w n l o a d i n g m u s i c f r o m

the

w e b s i t e .

F r e e p l a y k n o w i n g l y

and

w i l l f u l l y c o n c e a l e d

and

f a i l e d

to

d i s c l o s e m a t e r i a l f a c t s

r e g a r d i n g

the

a c t u a l c o s t

to

N C S F

to

d o w n l o a d m u s i c . F r e e p l a y e n g a g e d

in

t h i s n o n

d i s c l o s u r e

an d

c o n c e a l m e n t w i t h

the bad

f a i t h i n te n t i o n

of

s u b s e q u e n t l y e x p l o it i n g s u c h

http://www.freeplaymusic.com/http://www.freeplayrnusic.com/http://www.freeplayrnusic.com/http://www.freeplayrnusic.com/http://www.freeplayrnusic.com/http://www.freeplaymusic.com/


24/28


8 9 . On i n f o r m a t i o n and b e l ie f , F r e e p l a y k n e w t h a t its a f f i r m a t i v e

m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e

and

c o n c e a l m e n t w e r e f a l s e

and

m i s l e a d i n g w h e n

it

i n c l u d e d f r e q u e n t u s e s of the w o r d " f r e e " in the m e t a d a t a in o r d e r to d r a w u s e r s to the

w w w . f r e e p l a v m u s i c . c o m w e b s i t e w h e n

users conducted

I n t e r n e t

searches for "free

m u s i c . "

9 0 .

On


and

b e l ie f , F r e e p l a y s p e c i f i c a l l y w r o t e

the

t e r m s " f r e e , "

" f r e e m u s i c , " and " f re e m u s i c d o w n l o a d " i n to the m e t a d a t a k n o w i n g th a t it p l a n n e d to

a s s e r t t h a t m u s i c on the w w w . f r e e p l a y m u s i c . c o m w e b s i t e was not f r e e . F r e e p l a y ' s

f a i l u r e to i n d i c a t e t h a t it and T u n e s a t , in c o l l u s i o n w i t h F r e e p l a y , w o u l d l a t e r c o n t e n d

t h a t p a y m e n t

was

r e q u i r e d

to use the

m u s i c c o n s t i t u t e d i n t e n ti o n a l m i s r e p r e s e n t a t i o n ,

n o n d i s c l o s u r e , and c o n c e a l m e n t of m a t e r i a l f a c t s .

9 1 . A s i d e f r o m

any

d u t y a r i s i n g f r o m g o o d f a i t h , fa i r d e a l i n g , e t h i c a l b u s i n e s s

c o n d u c t , or s t a t u t o r y r e q u i r e m e n t s , F r e e p l a y had a d u t y to d i s c l o s e the m a t e r i a l

i n f o r m a t i o n t h a t F r e e p l a y in t e n d e d

to

a s s e r t t h a t p a y m e n t

was

r e q u i r e d

to use the

" f r ee "

m u s i c a v a i l a b l e on the w w w . f r e e p l a y m u s i c . c o m w e b s i t e b e c a u s e of th e b u s i n e s s n a m e

i t e l e c t e d

to use, its

o r g a n i z a t i o n

and

p r o m o t i o n

of the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e ,

a n d the s p e c i f i c i n c l u s i o n of the t e r m s " f r e e , " " fr e e m u s i c , " and " f re e m u s i c d o w n l o a d " in

it s w e b s i t e ' s m e t a d a t a , .

9 2 . On i n f o r m a t i o n and b e l ie f , F r e e p l a y i n t e n t i o n a l l y c o n c e a l e d and d i v e r t e d

u s e r s ' a t t e n t i o n a w a y f r o m the t e r m s and c o n d i t i o n s on its w e b s i t e , p u r p o s e f u l l y m a d e

t h e l i c e n s i n g s t r u c t u r e c o n f u s i n g and s e e m i n g l y f r e e , r e v i s e d the t e r m s and c o n d i t i o n s

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25/28


p r o c e s s .

93.

F r e e p l a y 's m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e

and

c o n c e a l m e n t s w e r e

s t a t e m e n t s r e g a r d i n g i m p o r t a n t f a c t s th a t w e r e no t t r u e .

9 F r e e p l a y k n e w

and

i n t e n d e d t h a t N C S F

and

u s e r s

of the

w w w . f r e e p l a v m u s i c . c o m w e b s i t e g e n e r a l l y w o u l d be d e c e i v e d by t h e s e

m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e s

and

c o n c e a l m e n t i n t o b e l i e v i n g t h a t

the

m u s i c

was

f r e e

to

d o w n l o a d

and use.

9 5 Freeplay knew

and

in tended that NCSF ,

and

u se r s

of the

w w w . f r e e p l a y m u s i c . c o m w e b s i t e g e n e r a l l y , w o u l d r e a s o n a b l y r e l y to t h e i r d e t r i m e n t on

t h e m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e ,

and

c o n c e a l m e n t

by

d o w n l o a d i n g

and

u s i n g

t h e m u s i c b e l i e v i n g it was f r e e .

96. On i n f o r m a t i o n and b e l i e f , at the t i m e F r e e p l a y m a d e its m u s i c a v a i l a b l e

f o r d o w n l o a d on its w e b s i t e , F r e e p l a y f a i l e d to d i s c l o s e , and c o n c e a l e d the f a c t t h a t the

m u s i c

on

w w w . f r e e p l a y m u s i c . c o m

was in

f a c t

not

" f r e e , " w i t h

the

p u r p o s e

and

i n t e n t

of

c r e a t i n g a d e c e p t i v e t r a p . T h i s tr a p c o n s i s t e d of N C S F and o t h e r u s e r s d o w n l o a d i n g

m u s i c , b e l i e v i n g

it to be

f r e e , w h e r e a f t e r F r e e p l a y w o u l d h a v e T u n e s a t d e t e c t t h e s e

u s e s of m u s i c d o w n l o a d e d f r o m the w w w . f r e e p l a y m u s i c . c o m w e b s i t e , F r e e p l a y and

T u n e s a t w o u l d a s s e r t a c o p y r i g h t i n f r i n g e m e n t c l a im a g a i n s t N C S F , and any o t h e r

c o n s u m e r t h a t d o w n l o a d e d m u s i c f r o m its w e b s i te , and F r e e p l a y and T u n e s a t w o u l d

d e m a n d an e x t o r t io n a t e s e t t l e m e n t f r o m N C S F and o t h e r u s e r s .

9 7 N C S F r e a s o n a b l y

and

j u s t i f i a b l y r e l i e d

on

F r e e p l a y ' s r e p r e s e n t a t io n s

in

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26/28

Page

26 of 26

Case

No.

9 8 .

N C S F w o u l d

no t

h a v e d o w n l o a d e d

and

u s e d

the

" f r e e " m u s i c

on th e

w w w . f r e e p l a v m u s i c . c o m w e b s i t e a b s e n t F r e e p l a y ' s m i s r e p r e s e n t a t i o n s ,

n o n d i s c l o s u r e s and c o n c e a l m e n t s

9 9 . As a d i r e c t and p r o x i m a te c o n s e q u e n c e of the w r o n g f u l c o n d u c t

d e s c r i b e d a b o v e , N C S F

has

b e e n i n j u r e d

as set

f o r th h e r e i n a b o v e

at

p a r a g r a p h s

60

t h r o u g h

65, , as

w e l l

as th e

t i m e

and

e x p e n s e a s s o c i a t e d w i t h h a v i n g

to

r e m o v e

and

r e p l a c e v i d e o s

and

h a v i n g to p u r s u e t h i s a c t i o n .

1 0 0 . F r e e p l a y ' s i n te n t io n a l m i s r e p r e s e n t a t i o n s , n o n d i s c l o s u r e s and

c o n c e a l m e n t s w e r e s u b s t a n t i a l , d i r e c t

an d

p r o x i m a t e f a c t o r s in c a u s i n g N C S F ' s h a r m .

W H E R E F O R E ,

N C S F d e m a n d s j u d g m e n t a g a i n s t D e f e n d a n t F re e p l a y M u s i c ,

L L C for c o m p e n s a t o r y d a m a g e s , pre- and p o s t - j u d g m e n t i n t e r e s t , c o s t s i n c u r r e d in

b r i n g i n g t h i s a c t i o n ,

and fo r

s u c h f u r t h e r r e l i e f

as

t h i s C o u r t d e e m s j u s t

and

p r o p e r .

D E M A N D FOR

J U R Y T R I A L

N C S F d e m a n d s a t r i a l by j u r y on all i s s u e s t r i a b l e as of r i g h t by a j u r y .

D a t e d t h i s

3

r d

d ay of May, 201 6.

R e s p e c t f u l l y s u b m i t t e d ,

M A R K O M A G O L N I C K , P.A .

A t t o r n e y s

for

N C S F

3 0 0 1

S.W. 3rd

A v e n u e

M i a m i ,

F l o r i d a 3 3 1 2 9

T e l e p h o n e .

(305)

2 8 5 - 2 0 0 0

F a c s i m i l e : ( 3 0 5 ) 2 8 5 - 5 5 5 5

B y . sl J o e l S. M a g o ln i c k



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Filing # 41013895 E-Filed 05/03/2016 01:24:32 PM

F O R M 1 . 9 9 7 . C I V I L C O V E R S H E E T

T h e

c i v i l c o v e r s h e e t

an d

t h e

i n f o r m a t i o n c o n t a i n e d h e r e i n n e i t h e r r e p l a c e n o r s u p p l e m e n t

t h e

fi l ing an d s e r v i c e

of

p l e a d i n g s

o r

o t h e r p a p e r s

a s

r e q u i r e d

by

law.

T h i s form s h a l l be

fi led

by th e plaint i f f or

p e t i t i o n e r for the use

of

t he C l e r k

o f th e C o u r t for the p u r p o s e

of

r e p o r t i n g j u d i c i a l w o r k l o a d d a t a p u r s u a n t

to

F l o r i d a S t a t u t e s

s e c t i o n

2 5 . 0 7 5 .

I. C A S E S T Y L E

IN

T H E C I R C U I T C O U R T O F T H E ELEVENTH J U D I C I A L C I R C U I T ,

IN A N D F O R

M I A M I - D A D E

C O U N T Y , F L O R I D A

C a s e N o . :

J u d g e :

N A T I O N A L C O U N C I L OF S T R E N G H & F I T N E S S C O R P O R A T I O N

Plaintiff

v s .

F R E E P L A Y M U S I C. L L C , a

Delaware

L L C . T U N F .S A T . L L C

D e f e n d a n t

I I.

T Y P E

O F C A S E

• C o n d o m i n i u m

• C o n t r a c t s and i n d e b t e d n e s s

• E m i n e n t d o m a i n

• A u t o n e g l i g e n c e

U N e g l i g e n c e - o th e r

•

B u s i n e s s g o v e r n a n c e

B u s i n e s s t o r t s

•

E n v i r o n m e n t a l / T o x i c t o r t

•

T h i r d p a r ty i n d e m n i f i c a t i o n

•

C o n s t r u c t i o n d e f e c t

•

M a s s t o r t

•

N e g l i g e n t s e c u r i t y

LJ

N u r s i n g h o m e n e g l i g e n c e

n

P r e m i s e s l i a b i l i t y - c o m m e r c i a

•

P r e m i s e s l i a b i l i t y - r e s i d e n t i a l

• P r o d u c t s l i a b i li t y

• R e a l P r o p e r t y / M o r t g a g e f o r e c l o s u r e

• C o m m e r c i a l f o r e c l o s u r e SO - $ 5 0 , 0 0 0

• . C o m m e r c i a l f o r e c l o s u r e $ 5 0 , 0 0 1 - $ 2 4 9 , 9 9 9

• C o m m e r c i a l f o r e c l o s u r e $ 2 5 0 , 0 0 0 or m o r e

• H o m e s t e a d r e s i d e n t ia l f o r e c l o s u r e $0 - 50,000

• . H o m e s t e a d r e s i d e n t ia l f o r e c l o s u r e $50,001

-

$ 2 4 9 , 9 9 9

• H o m e s t e a d r e s i d e n t ia l f o r e c l o s u r e $ 2 5 0 , 0 0 0 or

m o r e

• N o n - h o m e s t e a d r e s i d e n ti a l f o r e c l o s u r e $0 -

$ 5 0 , 0 0 0

O O th e r r e a l p r o p e r t y a c t i o n s $0 - $ 5 0 , 0 0 0

L J O t h e r r e a l p r o p e r t y a c t i o n s $ 5 0 , 0 0 1

-

$ 2 4 9 , 9 9 9

• O t h e r r e a l p r o p e r t y a c t i o n s $ 2 5 0 , 0 0 0 or m o r e

• . P r o f e s s i o n a l m a l p r a c t i c e

•

M a l p r a c t i c e - b u s i n e s s

•

M a l p r a c t i c e - m e d i c a l

•

M a l p r a c t i c e - o t h e r p r o f e s s i o n a l

O t h e r

•

A n t i t r u s t / T r a d e R e g u l a t i o n

L.I

B u s i n e s s T r a n s a c t i o n

[ I

Ci r cu i t C i v i l -

Not

A p p l i c a b l e

•

C o n s t i t u t i o n a l c h a l l e n g e - s t a t u t e or

o r d i n a n c e

I I

C o n s t i t u t i o n al c h a l l e n g e - p r o p o s e d

a m e n d m e n t

J I

C o r p o r a t e T r u s t s

o

D i s c r i m i n a t i o n - e m p l o y m e n t or o th e r

[

I

I n s u r a n c e c l a i m s

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In te l l e c tu a l p r o p e r ty

fl

L i b e l / S l a n d e r

LI .

S h a r e h o l d e r d e r i v a t i v e a c t i o n

L I

S e cu r i t i e s l i t i g a t i o n

L i

T r a d e s e c r e t s

I I Tr u s t l i t i g a t i o n


28/28

C O M P L E X

B U S I N E S S C O U R T

T h i s a c t i o n is a p p r o p r i a t e for a s s i g n m e n t to C o m p l e x B u s i n e s s C o u r t as d e l i n e a t e d an d m a n d a t e d by the

A d m i n i s t r a t i v e O r d e r . Ye s D N o K

III. R E M E D I E S

S O U G H T

( c h e c k al l t h a t a p p l y ) :

M o n e t a r y ;

• _ N o n - m o n e t a r y

Jg . N o n - m o n e t a r y d e c l a r a to r y or i n j u n c t i v e r e l ie f

Nat'l Council of Strength & Fitness v. Freeplay Music - complaint.pdf

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