PAGE 1 COMPLAINT

Leslie S. Johnson, OSB #954727

Email: ljohnson@kentlaw.com
Christopher H. Kent, OSB #852530
Email: ckent@kentlaw.com
KENT & JOHNSON, LLP
1500 SW TAYLOR STREET
PORTLAND, OREGON 97205
TELEPHONE: (503) 220-0717
FACSIMILE: (503) 220-4299
William Grantham (pro hac vice motion forthcoming)
Email: bgrantham@rufuslaw.com
RUFUS-ISAACS, ACLAND & GRANTHAM, LLP
232 N CANON DRIVE
BEVERLY HILLS, CA 90210
TELEPHONE: (310) 274-3803
FACSIMILE: (310) 860-2430
Attorneys for Plaintiffs Digital Sound Co. and Stars for Art Production FZ LLC
UNITED STATES DISTRICT COURT
DISTRICT OF OREGON
Portland Division
DIGITAL SOUND CO., an Egyptian company;
and STARS FOR ART PRODUCTION FZ
LLC, a Dubai limited liability company,
Plaintiff,
vs.
AUDIO AND VIDEO LABS, INC., a New
Jersey corporation doing business as CD
BABY; MARTIN BERZ GROUP, a legal
person, form unknown; and DOES 1-10,
inclusive,
Defendant.
No.
COMPLAINT
(Copyright Infringement)
JURY TRIAL REQUESTED
Plaintiffs Digital Sound Co. (Digital) and Stars For Art Production FZ LLC
(Stars, and together with Digital, the Plaintiffs), allege as follows:
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page l of 8 Page lD#: l
PAGE 2 COMPLAINT
JURISDICTION AND VENUE
1. This is a civil action seeking damages and injunctive relief for copyright
infringement under the Copyright Act of the United States, 17 U.S.C. 101, et seq.
2. This Court has jurisdiction over the subject matter of this action pursuant
to 28 U.S.C. 1331 and 1338(a).
3. This course has personal jurisdiction over all of the Defendants because,
among other things, Defendants are doing business in the State of Oregon and in this
judicial district, the acts of infringement complained of herein occurred in the State of
Oregon and in this judicial district, and Defendants have caused injury to Plaintiffs and
their intellectual property within the State of Oregon and in this judicial district.
4. In addition, and as more fully set forth below, Defendant Martin Berz
Group has submitted in writing to the jurisdiction of the federal courts of the United
States of America.
5. Venue is proper in this district pursuant to 28 U.S.C. 1391(b) and (c),
and/or 1400(a).
THE PARTIES
6. Plaintiff Stars is a limited liability company organized in Dubai, United
Arab Emirates. It is a wholly-owned subsidiary of the Mazzika Group (Mazzika), the
largest music production and distribution company in the Arab world. It has the right to
distribute music catalogues and libraries of substantial works by major stars dating from
the 1950s to the present day. Stars is a legal and/or beneficial owner of copyright interests
in the musical recordings that are the subject of this complaint.
7. Plaintiff Digital is a joint stock company organized according to the laws
of Arab Republic of Egypt. It is a wholly-owned subsidiary of Mazzika. It is responsible,
among other things, for providing Mazzika-controlled musical recordings to digital
platforms for streaming or download by consumers. At all times relevant herein, Digital
was authorized to act for Stars with respect to digital exploitation of Stars musical
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 2 of 8 Page lD#: 2
PAGE 3 COMPLAINT
catalogues and libraries, and is a copyright owner and claimant in and to the musical
recordings that are the subject of this complaint.
8. On information and belief, Defendant Audio and Visual Labs Inc.
(CD Baby) is a corporation organized according to the laws of New Jersey and
registered to do business in Oregon, including under the assumed business name
CD Baby, with an address at 13909 NE Airport Way, Portland, Oregon 97230. CD Baby
represents itself as a seller and distributor of musical recordings on behalf of the owners
of such recordings.
9. On information and belief, Defendant Martin Berz Group (Berz) is a
legal person, form unknown, with a business address at Rue Du Parc, 16035 Hydra,
Algiers in the Peoples Democratic Republic of Algeria.
10. The true names and capacities, whether individual, corporate,
associate or otherwise, of the defendants sued herein as Does 1 through 10, are
unknown to the Plaintiffs, who therefore sue said defendants by such fictitious names
(the Doe Defendants). The Plaintiffs will seek leave of this Court to amend this
complains to state the true names and capacities of the Doe Defendants when they have
been ascertained. The Plaintiffs are informed and believe and on that basis allege that the
Doe Defendants are liable to the Plaintiffs as a result of their participation in all or some
of the act set forth hereinafter. CD Baby, Berz and the Doe Defendants are referred to
collectively herein as the Defendants).
11. The Plaintiffs are informed and believe and on that basis allege that at all
times mentioned in this complaint, each of the Defendants was the agent and/or alter ego
of each of the other Defendants and, in doing the things alleged in this complaint, was
acting within the course and scope of such agency.
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 3 of 8 Page lD#: 3
PAGE 4 COMPLAINT
GENERAL ALLEGATIONS
12. Plaintiffs control the worldwide distribution rights in following musical
recordings, all by the Egyptian musical star Tamer Hosny (sometimes transliterated as
Hosni) (the Recordings):
a. Haeesh Hayati, an album of 15 tracks;
b. Ekhtart Sah (sometimes transliterated as Ikhtart Sah), an album of
14 tracks;
c. Elly Gai Ahla, an album of 14 tracks; and
d. Mazzika Mix 3, an album of 9 tracks.
13. Digital or Stars have obtained United States Copyright Office
registrations, or applied for such registrations, with respect to the Recordings as follows:
a. Haeesh Hayati, effective as of October 10, 2013, registration
number SR 736-637. A true and correct copy of this registration is attached hereto as
Exhibit A.
b. Ekhtart Sah, effective as of November 11, 2013, registration
number SR 736-622. A true and correct copy of this registration is attached hereto as
Exhibit B.
c. Elly Gai Ahla, on November 11, 2013, application number
1-1019594093. A true and correct copy of this application is attached hereto as Exhibit C.
d. Mazzika Mix 3, on April 8, 2014, application number
1-1344247921. A true and correct copy of this application is attached hereto as Exhibit D.
14. In or around March 2014, Plaintiffs became aware that the Defendant
CD Baby was illicitly offering nineteen (19) Recordings for paid download at its
website www.cdbaby.com. In addition, Plaintiffs became aware that CD Baby was
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 4 of 8 Page lD#: 4
PAGE 5 COMPLAINT
providing such Recordings to the iTunes service operated by Apple, Inc. so that such
Recordings were available for paid download by iTunes customers. A complete list of the
Recordings offered and uploaded by CD Baby is attached hereto as Exhibit E
(the Infringing Recordings).
15. The Infringing Recordings were represented by the Defendants as being
parts of two albums entitled Tamer Hosny Hits and Beautiful Tamer, with the intention
that these would appear to be bona fide and authorized Tamer Hosny albums. In fact,
these albums were unauthorized compilations of Mr. Hosnys recordings that had never
been released in the manner presented by the Defendants.
16. On March 19, 2014, Plaintiffs served CD Baby with a written notification
of claimed infringement (the Takedown Notice), as provided by the 1998 Online
Copyright Infringement Liability Limitation Act, Pub. L. No. 105-304, 112 Stat. 2680,
2877 (the Act), incorporated into the United States Copyright Act of 1976 at 17 U.S.C.
512. The Takedown Notice requested CD Baby to remove the Infringing Recordings
from the sites where it had placed them. A true copy of the Takedown Notice is attached
hereto as Exhibit F.
17. On information and belief, in response to the Takedown Notice, CD Baby
removed the Infringing Recordings from parts though not all of its own website, but
not from the iTunes service.
18. On March 27, 2014, CD Baby provided Plaintiffs with an alleged
written counter notification dated March 26, 2014 from Defendant Berz
(the Counter Notification) pursuant to the Act, in which Berz, under penalty of perjury,
asserted the right under copyright law to exploit the Infringing Recordings and
(a) submitted to the jurisdiction of the federal courts of the United States of America and
(b) agreed to accept service from Plaintiffs by registered mail. A true and correct copy of
the Counter Notification provided by CD Baby to Plaintiffs is attached hereto as
Exhibit G.
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 5 of 8 Page lD#: 5
PAGE 6 COMPLAINT
19. Despite the sworn assertions of the Counter Notification, Berz has no
distribution rights of any kind in the Infringing Recordings. Distributing the Infringing
Recordings to CD Baby was in violation of Plaintiffs exclusive rights therein under
copyright law.
20. On March 27, 2014, CD Baby notified Plaintiffs in writing that, based on
the Counter Notification, CD Baby intended to restore the Infringing Recordings by
April 11, 2014. However, CD Baby continued to offer at least ten (10) of the Infringing
Recordings for sale on its website, as evidenced by the listings downloaded on April 8,
2014, and attached hereto as Exhibit G. By continuing to offer Infringing Recordings for
sale, CD Baby has lost the safe harbor offered by the Act and is accordingly liable for
copyright infringement.
21. In addition, by making the Infringing Recordings available through
iTunes, CD Baby did not function as service provider within the meaning of the Act.
1
Instead, it functioned as an active distributor of copyrighted material to iTunes and is
thereby subject to liability for copyright infringement with respect to any unauthorized
distribution.
1
17 U.S.C. 512(k): (1) SERVICE PROVIDER. (A) as used in subsection (a), the
term service provider means an entity offering the transmission, routing, or providing
of connections for digital online communications, between or among points specified by
a user, of material of the users choosing, without modification to the content of the
material as sent or received.
(B) As used in this section, other than subsection (a), the term service provider
means a provider of online services or network access, or the operator of online services
or network access, or the operator of facilities therefor, and includes an entity described
in subparagraph (A).
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 6 of 8 Page lD#: 6
PAGE 7 COMPLAINT
FIRST CAUSE OF ACTION
COPYRIGHT INFRINGEMENT
(17 U.S.C. 106 AND 501)
22. The Plaintiffs incorporate herein by this reference all of the allegations of
paragraphs 1 through 21, inclusive.
23. Through their conduct alleged herein, the Defendants have infringed the
Plaintiffs copyright in the Infringed Recordings in violations of Sections 106 and 501 of
the United States Copyright Act of 1976, 17 U.S.C. 106 and 501.
24. The Defendants acts of infringement are willful, intentional and
purposeful, in disregard of and with indifference to Plaintiffs rights.
25. On information and belief, the Plaintiffs allege that, as a direct and
proximate result of their wrongful conduct, the Defendants have realized and continue to
realize profits and other benefits rightfully belonging to the Plaintiffs. Accordingly, the
Plaintiffs seek an award of damages, costs and fees under 17 U.S.C. 504 and 505.
26. The Defendants infringing conduct has also caused and is causing
substantial and irreparable damage and injury to the Plaintiffs in an amount not capable
of determination, and, unless restrained, will cause further irreparable injury, leaving the
Plaintiffs with no adequate remedy at law.
REQUEST FOR A JURY TRIAL
The Plaintiffs hereby request a trial by jury.
PRAYER FOR RELIEF
THEREFORE, the Plaintiffs pray for judgment against the Defendants, jointly
and severally, as follows:
1. For damages in such amounts as may be found, or as otherwise permitted
by law.
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 7 of 8 Page lD#: 7
PAGE 8 COMPLAINT
2. For an accounting of, and the imposition of constructive trust with respect
to, the Defendants profits attributable to their infringements of the Plaintiffs copyright
in the Infringed Recordings.
3. For a preliminary and permanent injunction prohibiting the Defendants
and their respective agents, servants, employees, officers, successors, licensees and
assigns, and all persons acting in concert or participation with each or any of them, from
continuing to infringe the Plaintiffs copyright in the Infringed Compositions.
4. For prejudgment interest according to law.
5. For the Plaintiffs attorneys fees, costs and disbursements in this action.
6. For such other and further relief at the Court may deem just and proper.
DATED this 10
th
day of April, 2014.
KENT & JOHNSON, LLP
/s/ Leslie S. Johnson
Christopher H. Kent, OSB#852530
ckent@kentlaw.com
Leslie S. Johnson, OSB#954727
ljohnson@kentlaw.com
1500 SW Taylor Street
Portland, OR 97205
(503) 220-0717 (Telephone)
(503) 220-4299 (Fax)
William Grantham (pro hac vice motion forthcoming)
bgrantham@rufuslaw.com
RUFUS-ISAACS, ACLAND & GRANTHAM, LLP
232 N Canon Drive
Beverly Hills, CA 90210
(310) 274-3803 (Telephone)
(310) 860-2430 (Fax)
Attorneys for Plaintiffs Digital Sound Co. and
Stars for Art Production FZ LLC
79390
Case 3:l4-cv-00598-PK Document l Filed 04/l0/l4 Page 8 of 8 Page lD#: 8