v.
The New York Performing Arts Academy, Inc.
IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK Case No. 1:23-cv-08120-ER MICHAEL GRECCO PRODUCTIONS, INC., Plaintiff, v. THE NEW YORK PERFORMING ARTS ACADEMY, INC., Defendant. PROPOSED DEFAULT JUDGMENT THIS CAUSE IS BEFORE THE Court upon plaintiff Michael Grecco Productions, Inc.'s ("Plaintiff") Motion for Default Final Judgment (the “Motion”), Doc. 21. The Court has considered the Motion, has noted the Clerk’s default against defendant The New York
Performing Arts Academy, Inc. (“Defendant”), and is otherwise advised in the premises. Pursuant to Rule 55 of the Federal Rules of Civil Procedure, the Court concludes that Plaintiff has met its burden of showing that it is entitled to a final default judgment as to Defendant. Plaintiff has also met its burden of showing that it is entitled to permanent injunctive relief against Defendant as specified herein. Accordingly, it is ORDERED AND ADJUDGED as follows: Findings of Fact1 1. Plaintiff is a celebrity photography agency, owned and operated by award-winning
1 A district court must exercise “independent judgment” in adopting a party’s proposed findings. Bright v. Westmoreland Cnty., 380 F.3d 729, 731-32 (3rd Cir. 2004). In this case, the Court has independently analyzed the evidence presented and has adopted only those findings which the Court has independently deemed appropriate under the circumstances. photojournalist Michael Grecco, that is hired by top-tier media outlets to take photographs of celebrities. Mr. Grecco has photographed legendary musicians, actors, directors, Olympians, technologists, comedians, athletes, fashion models and automobiles – such as Johnny Cash, Steven Spielberg, Will Smith, Chris Rock, Penelope Cruz, Steve Martin, Olympian Janet Evans, the
SnapChat Founders, and Porsche’s 911 sports automobile. [2]. Mr. Grecco’s photographs are widely published in some of the world’s most prominent magazines, including but not limited to, Vanity Fair, Rolling Stone, ESPN Magazine, Time, Forbes and Esquire. 3. This lawsuit concerns one (1) photograph of f New Zealand actress Lucy Lawless as Xena the Warrior Princess titled “19970506_Xena_Lawless_Lucy_MGP_0023” (the “Work”) owned by Plaintiff. 4. The Work was registered by Plaintiff with the Register of Copyrights on on August 29, 2017 and was assigned Registration No. VA 2-064-915. A copy of the Certificate of Registration pertaining to the Work is attached to the Complaint as Exhibit A thereto.
5. Defendant is an academy that provides tuition-based, comprehensive programs for aspiring performing artists in acting, theatre, dance, and voice. Defendant promotes on its website that “students receive world-class guidance and instruction from award-wining instructors here in Manhattan.” 6. On August 25, 2021 (after Plaintiff’s above-referenced copyright registration of the Work), Defendant published a copy of the Work on its website (at https://nyperformingartsacademy.org/2021/08/25/lucy-lawless-foresees-a-xena-reboot- happening-in-the-near-future/): > an re
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7. A true and correct copy of screenshots of Defendant’s website, displaying the copyrighted Work, is attached to the Complaint as Exhibit B thereto. 8. Defendant is not and has never been licensed to use or display the Work. Defendant never contacted Plaintiff to seek permission to use the Work in connection with its Facebook page or for any other purpose. 9. Defendant utilized the Work for commercial use. 10. Upon information and belief, Defendant located a copy of the Work on the internet and rather than contact Plaintiff to secure a license, simply copied the Work for its own commercial use. 11. Through its ongoing diligent efforts to identify unauthorized use of its photographs, Plaintiff first discovered Defendant’s unauthorized use/display of the Work on December 30, 2021. 12. _—_- Following Plaintiffs discovery of Defendant’s infringement, Plaintiff, through counsel, sent (via e-mail) one (1) infringement notice, at least two (2) follow-up emails and at least
two (2) phone calls to Defendant to notify it of the impermissible use. Defendants ignored the infringement notice and did not otherwise respond to Plaintiff prior to this lawsuit being filed. II. Conclusions of Law A. Applicable Legal Standards
Federal Rule of Civil Procedure 55 sets forth two steps to obtain a default judgment. First, when a defendant fails to plead or otherwise defend a lawsuit, the clerk of court may enter a clerk’s default. Fed. R. Civ. P. 55(a). Second, after entry of the clerk’s default, the Court may enter default judgment against the defendant so long as the defendant is not an infant or incompetent. Fed. R. Civ. P. 55(b)(2). “The effect of a default judgment is that the defendant admits the plaintiff’s well-pleaded allegations of fact, is concluded on those facts by entry by the judgment, and is barred from contesting on appeal the facts thus established.” Buchanan v. Bowman, 820 F.2d 359, 361 (11th Cir. 1987). The Court must review the sufficiency of the complaint before determining if a moving party is entitled to default judgment. See Brown v. Gabbidon, 2007 U.S. Dist. LEXIS 35134
(S.D.N.Y. May 14, 2007); Sony Pictures Home Entm't, Inc. v. Chetney, 2007 U.S. Dist. LEXIS 13314, 4-5 (S.D.N.Y. 2007). “While a complaint . . . does not need detailed factual allegations,” a plaintiff’s obligation to show its entitlement to relief “requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007). If the admitted facts are enough to establish liability, the Court must then ascertain the appropriate amount of damages and enter final judgment in that amount. See Nishimatsu Constr. Co. v. Hous. Nat'l Bank, 515 F.2d 1200, 1206 (5th Cir. 1975). An evidentiary hearing on damages is not required by Rule 55, and it is within the Court’s discretion to choose whether to hold such a hearing. See Fed. R. Civ. P. 55(b)(2); Coventry Enters. Ltd. Liab. Co. v. Sanomedics Int'l Holdings, Inc., 2017 U.S. Dist. LEXIS 122615, at *3 (S.D.N.Y. July 25, 2017); Cement & Concrete Workers Dist. Council Welfare Fund v. Metro Found. Contractors Inc., 699 F.3d 230, 234 (2d Cir. 2012). B. Copyright Infringement
The Copyright Act, 17 U.S.C. § 501(a), provides that “[a]nyone who violates any of the exclusive rights of the copyright owner as provided by sections 106 through 122 [17 U.S.C. §§ 106-122] or of the author as provided in section 106A(a) [17 U.S.C. § 106A(a)] ... is an infringer of the copyright or right of the author, as the case may be.” 17 U.S.C. § 501(a). “Copyright infringement [has] two elements [that] must be proven: (1) ownership of a valid copyright, and (2) copying of constituent elements of the work that are original." Clanton v. UMG Recordings, Inc., 556 F. Supp. 3d 322, 327 (S.D.N.Y. 2021) (quoting Feist Publ'ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 361 (1991)). With respect to the first element, a certificate of registration “made before or within five years after first publication of the work shall constitute prima facie evidence of the validity of the
copyright and of the facts stated in the certificate. The evidentiary weight to be accorded the certificate of a registration made thereafter shall be within the discretion of the court.” 17 U.S.C. § 410(c). Here, the Complaint alleges that the Work was not registered until later than 5 years from first publication. The registration certificate therefore does not constitute “prima facie” evidence of validity, but it certainly is evidence enough to satisfy the first element of an infringement claim. See, e.g., Ultra-Images, LLC v. Franclemont, No. 05-60538-CIV, 2007 U.S. Dist. LEXIS 93610, at[*11] -12 n.3 (S.D. Fla. Dec. 20, 2007) (“Defendants also urge this Court to find invalidity of the registration because the registration was made over five years after the Jesse Portrait was published…. Based on the record at this stage in the proceeding, the Court cannot find, as a matter of law, that the certificate of registration is invalid.”); Lifetime Homes, Inc. v. Residential Dev. Corp., 510 F. Supp. 2d 794, 801 (M.D. Fla. 2007) (“Although Plaintiff did not file the copyright registration within the five year time period, Plaintiff has produced the certificate of registration for the Model A and Defendants have not pointed to any evidence indicating that
Plaintiff's certificate of registration is not valid. Further, Defendants make no argument nor present any evidence to support a finding that Plaintiff does not in fact own the copyright for the Model A plans.”). As succinctly explained in Southall v. Force Partners, LLC, No. 1:20-cv-03223, 2021 U.S. Dist. LEXIS 164680, at *7 (N.D. Ill. Aug. 31, 2021): The last sentence is crucial here: Section 410(c) confers discretion on the court on how to treat a certificate obtained five years after publication. In other words, the statute mandates a presumption of validity for pre-five-year certificates, but the statute does not forbid2 a presumption of validity for post-five-year certificates. Post-five-year certificates are still eligible to qualify as prima facie evidence of a valid copyright. Yurman Design, Inc. v. Golden Treasure Imps., Inc., 275 F. Supp. 2d 506, 515-16 (S.D.N.Y. 2003) (holding that late registrations can be considered prima facie evidence of valid copyright); Telerate Sys., Inc. v. Caro, 689 F. Supp. 221, 227 n. 7 (S.D.N.Y. 1988) (explaining "[e]ven if the certificate were ... issued more than five years after the actual date of first publication, the court would be inclined to give the certificate the weight of prima facie evidence, as permitted under Section 410(c)."). In any event, the strength of the presumption is not a matter that should be resolved at the pleading stage. The parties must develop facts in discovery before the certificate's evidentiary weight can be presented to the Court for decision.3 The copyright- infringement claim survives. Here, Plaintiff registered the Work pursuant to 17 U.S.C. § 411(a) with the Register of Copyrights as set forth above. By virtue of its default, Defendant does not have any right to challenge Plaintiff’s registration/ownership of a valid copyright. [2] Emphasis in original. 3 Emphasis added. The copying element of an infringement claim has two components. Warner Bros. Entm't Inc. v. RDR Books, 575 F. Supp. 2d 513, 533 (S.D.N.Y. 2008). First, a plaintiff must demonstrate that the defendant copied the plaintiff's work as a factual matter, either through direct or indirect evidence. Id. Second, “the plaintiff must establish that the copying amounts to unlawful or
improper appropriation.” Id. “The plaintiff demonstrates that the copying is actionable ‘by showing that the second work bears a “substantial similarity” to protected expression in the earlier work.’” Id. (quoting Castle Rock Entm't, Inc. v. Carol Publ'g Group, Inc., 150 F.3d 132, 137 (2d Cir. 1998). Here, the screenshots of Defendant’s website unequivocally show Defendant’s copying of the Work. Defendant’s default further constitutes an admission as to such copying. There is no factual or subjective issue of “substantial similarity” here as Defendant copied and published a duplicate image of the Work. Thus, Defendant undisputedly copied Plaintiff’s copyrighted work and a Final Default Judgment should be entered against Defendant on Count I of the Complaint. C. Willfulness
Willful infringement occurs when “the defendant was actually aware of the infringing activity, or (2) that the defendant's actions were the result of ‘reckless disregard’ for, or ‘willful blindness’ to, the copyright holder's rights.” Mattel, Inc. v. 2012Shiningroom2012, No. 18-cv- 11648 (PKC), 2020 U.S. Dist. LEXIS 176838, at[*19] (S.D.N.Y. Sep. 25, 2020) (quoting Island Software & Computer Serv., Inc. v. Microsoft Corp., 413 F.3d 257, 263 (2d Cir. 2005)). “Moreover, this Court may infer that Defendants willfully infringed Plaintiffs’ copyrights because of Defendants’ default.” Arista Records, Inc. v. Beker Enters., 298 F. Supp. 2d 1310, 1313 (S.D. Fla. 2003); see also Fallaci v. The New Gazette Literary Corp., 568 F. Supp. 1172, 1173 (S.D.N.Y. 1983) (inference of willfulness drawn by “defendant's failure to appear and defend this action,” particularly in light of plaintiff's allegation of willfulness); Original Appalachian v. Yuil Int'l Corp., 5 U.S.P.Q.2d (BNA) 1516, 1524 (S.D.N.Y. 1987) (“willfulness may be inferred from a defendant's failure to appear and defend in an action such as this”). When awarding increased damages in the context of Section 504(c)(2), “deterrence of future violations is a
legitimate consideration” because “defendants must not be able to sneer in the face of copyright owners and copyright laws.” Cable/Home Communication Corp. v. Network Productions, 902 F.2d 829, 851 (11th Cir. 1990) (internal quotation omitted). Here, Plaintiff took the extra step of notifying Defendant of its infringement pre-lawsuit. Defendant ignored multiple communications by Plaintiff’s counsel (by Federal Express, e-mail, telephone, and voicemail), although it did finally remove the Work from the website. Defendant’s refusal to pay a reasonable licensing fee and engage in reasonable license negotiations demonstrates that Defendant had actual knowledge, or at least acted with reckless disregard, of the fact that its conduct infringed upon Plaintiff’s exclusive copyrights in the Work. Willfulness is likewise demonstrated by the inclusion on Defendant’s website of a
copyright disclaimer/notice (“© 2024 The MusicSquared Foundation, Inc.”). The inclusion of such disclaimer indicates that Defendant understands the importance of copyright protection and that it actually owns the content (including photographs) published on its website. See, e.g., Bell v. ROI Prop. Grp. Mgmt., LLC, No. 1:18-cv-00043-TWP-DLP, 2018 U.S. Dist. LEXIS 127717, at *3 (S.D. Ind. July 31, 2018) (“[T]he willfulness of ROI’s infringement is evidenced by the fact that at the bottom of the webpage on which the Indianapolis photograph was unlawfully published appeared the following: ‘Copyright © 2017.’ By placing a copyright mark at the bottom of its webpage that contained Mr. Bell’s copyrighted Indianapolis Photograph, Mr. Bell asserts ROI willfully infringed his copyright by claiming that it owned the copyright to everything on the webpage); John Perez Graphics & Design, LLC v. Green Tree Inv. Grp., Inc., Civil Action No. 3:12-cv-4194-M, 2013 U.S. Dist. LEXIS 61928, at[*12] -13 (N.D. Tex. May 1, 2013) (“Once on Defendant’s website, Defendant asserted ownership of Plaintiff's Registered Work by including a copyright notice at the bottom of the page. Based on these allegations, the Court finds Plaintiff has
sufficiently pled a willful violation….”). Accordingly, Defendant’s default and the well-pled facts of the Complaint, which are admitted by Defendant’s default, establish that Defendant’s infringement of the Work was willful and deliberate. D. Plaintiff’s Damages in this lawsuit has prevented Plaintiff from discovering any profits received by Defendant that would be recoverable pursuant to 17 U.S.C. § 504(b) in addition to Plaintiff’s actual losses. To establish Defendant’s profits subject to disgorgement under § 504(b), a “copyright owner is required to present proof only of the infringer’s gross revenue, and the infringer is required to provide his or
[*11]her deductible expenses and the elements of profit attributable to factors other than the copyrighted work.” 17 U.S.C. § 504(b). Defendant solely controls all information concerning the gross revenue related to the infringing uses of the Work, and it has stymied Plaintiff’s ability to present that evidence to the Court. In view of the foregoing, actual damages are insufficient due to Defendant’s refusal to appear and participate in discovery, and Plaintiff thus elected to seek an award of statutory damages for Defendant’s willful infringement of Plaintiff’s copyrighted Work.
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