Case 2:12-cv-00850-R-E Document 1

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Case 2:12-cv-00850-R-E Document 1

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1 2 1.

INTRODUCTION This is an action for copyright infringement arising out of Defendants

3 repeated and unauthorized reproduction and use of original copyright protected 4 photographs owned and registered by Plaintiff Masterfile. Masterfile seeks 5 injunctive and monetary relief for Defendants repreated and willful copyright 6 infringement under the provisions of the Copyright Act of the United States, as 7 amended, 17 U.S.C. 101 et seq. and for violations of the Digital Millennium 8 Copyright Act, 17 U.S.C. 1201 et seq. 9 10
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

PARTIES 2. Plaintiff is a well known stock photography agency with offices at 3

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HOLMES WEINBERG PC

12 Concorde Gate, Fourth Floor, Toronto, Canada. Plaintiff is in the business of 13 licensing reproduction rights in photographs to users for a fee. 14 3. Upon information and belief, Defendant Chaga is a Nevada

15 corporation engaged in the business of selling anti-aging products with offices at 16 889 South Rainbow Boulevard, Suite 137, Las Vegas, Nevada, 89145. 17 4. Upon information and belief, Defendant Gould is the President and

18 Chief Executive Officer of Defendant Chaga, and personally and intentionally 19 directed and controlled the activities by Chaga complained of herein. 20 5. Upon information and belief, Defendant Todd is the Chairman and

21 Chief Operating Officer of Defendant Chaga, and personally and intentionally 22 directed and controlled the activities by Chaga complained of herein. 23 24 25 6. JURISDICTION AND VENUE This Court has subject matter jurisdiction over this action pursuant to

26 17 U.S.C. 501(b) and 28 U.S.C. 1331 and 1338(a). 27 28

-2COMPLAINT FOR COPYRIGHT INFRINGEMENT

Case 2:12-cv-00850-R-E Document 1

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7.

This Court has personal jurisdiction over Defendants because each

2 Defendant, upon information and belief, transacts and does business in this judicial 3 district. 4 5 1400. 6 7 8 9. FACTS Defendants 2010 Infringement On or about November 21, 2009, Plaintiff discovered that Chaga 8. Venue is proper within this District pursuant to 28 U.S.C. 1391 and

9 published twenty-two (22) copyrighted photographs owned by Plaintiff on four 10 separate websites owned by Chaga: www.chagaproducts.com,
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

11 www.chagafood.com, www.chagamushroom.info, www.chagainternational.net, 12 and www.chagatrade.com (the 2009 Infringed Images). Upon information and 13 belief, Defendants owned, developed, and operated each of the five websites. 14 10. In order to avoid the necessity, risk, expense and inconvenience of

HOLMES WEINBERG PC

15 litigation, Plaintiff agreed to accept a sum of money in settlement of its copyright 16 infringement claim against Defendants, and Defendants agreed to permanently 17 cease and desist from reproducing, distributing, displaying, broadcasting, creating 18 derivative works based on the 2009 Infringed Images, or making any further use of 19 the 2009 Infringed Images. On or about April 7, 2010, the parties executed a 20 Settlement Agreement to this effect (the Settlement Agreement). 21 22 23 11. Current Infringement On or about May 30, 2011, Plaintiff discovered that Defendants were

24 again using thirty four (34) distinct copyrighted photographs owned by Plaintiff 25 (the Infringed Images); twenty (20) Infringed Images were published on 26 www.chagainternational.info, and twenty (20) Infringed Images were published on 27 28
-3COMPLAINT FOR COPYRIGHT INFRINGEMENT

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1 www.healthmushroom.com (collectively, the Websites), for a total of forty (40) 2 unauthorized publications of Infringed Images. 3 12. Upon information and belief, the Websites are owned, developed, and

4 operated by Defendants. 5 13. Plaintiff has complied in all respects with the Copyright Act of the

6 United States and secured the exclusive rights and privileges in and to the 7 copyright in the Infringed Images by registering its claims of copyright in the 8 Infringed Images and receiving certificates of registration from the Copyright 9 Office under the following registration numbers: 10
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Plaintiff Image Identification No. 700-00000727 700-00021335 700-00029652 700-00030281 700-00030828 700-00034149

Copyright

Registration

Website on Which Image Appeared chagainternational.info chagainternational.info healthmushroom.net healthmushroom.net healthmushroom.net chagainternational.info; healthmushroom.net

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Registration No. Effective Date VA 1-023-866 VA 1-023-866 VA 1-023-866 VA 1-023-866 VA 1-023-866 VA 1-023-869 July 17, 2000 July 17, 2000 July 17, 2000 July 17, 2000 July 17, 2000 July 17, 2000

700-00038208 700-00046997 700-00064257 700-00067113 700-00158178 700-00158830 700-00170057 700-00177713 700-00177716

VA 1-023-877 VA 1-023-872 VA 1-108-991 VA 1-145-766 VA 1-199-166 VA 1-199-166 VA 1-229-219 VA 1-229-219 VA 1-229-219

July 17, 2000 Nov. 17, 2000 Sept. 24, 2001 Nov. 19, 2001 April 29, 2003 April 29, 2003 August 27, 2003 August 27, 2003 August 27, 2003
-4-

chagainternational.info chagainternational.info healthmushroom.net healthmushroom.net chagainternational.info chagainternational.info healthmushroom.net healthmushroom.net chagainternational.info

COMPLAINT FOR COPYRIGHT INFRINGEMENT

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1 Plaintiff Image 2 Identification No. 3 4 5 6 7 8 9 10

30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

Copyright

Registration

Website on Which Image Appeared chagainternational.info; healthmushroom.net

Registration No. Effective Date VA 1-229-219 August 27, 2003

700-00177724

700-00364360 700-00430003 700-00459874 700-00478824

VA 1-301-526 VA 1-301-527 VA 1-303-399 VA 1-303-399

Nov. 23, 2004 Jan. 11, 2005 March 15, 2005 March 15, 2005

healthmushroom.net healthmushroom.net chagainternational.info chagainternational.info; healthmushroom.net

700-00517663

VA 1-308-886

May 11, 2005

chagainternational.info; healthmushroom.net

11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
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HOLMES WEINBERG PC

700-00519413 700-00523503

VA 1-308-866 VA 1-316-378

May 11, 2005 July 12, 2005

healthmushroom.net chagainternational.info; healthmushroom.net

700-00528107 700-00544282 700-00592586 700-00796243 700-00814387 700-00847099 700-00847183

VA 1-316-378 VA 1-316-378 VA 1-326-965 VA 1-345-179 VA 1-345-179 VA 1-367-783 VA 1-367-783

July 12, 2005 July 12, 2005 Sept. 19, 2005 May 11, 2006 May 11, 2006 July 19, 2006 July 19, 2006

chagainternational.info chagainternational.info healthmushroom.net healthmushroom.net chagainternational.info chagainternational.info chagainternational.info; healthmushroom.net

700-00864495 700-00865462 700-00911150 700-01112192

VA 1-367-783 VA 1-367-783 VA 1-367-783 VA 1-407-986

July 19, 2006 July 19, 2006 July 19, 2006 April 3, 2007

healthmushroom.net chagainternational.info chagainternational.info healthmushroom.net

COMPLAINT FOR COPYRIGHT INFRINGEMENT

Case 2:12-cv-00850-R-E Document 1

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Copies of the certificates of registration for these Infringed Images

2 (without the Continuation Sheets), which were registered with the U.S. Copyright 3 Office as individual images within compilations, are attached hereto as Exhibit 4 A. 5 14. Upon information and belief, twenty (20) of these Infringed Images

6 were among the twenty two (22) photographs which were the subjects of the 7 Settlement Agreement. 8 15. Without Plaintiffs knowledge or consent, Defendants reproduced

9 these Infringed Images and displayed the unauthorized copies on the Websites. 10 Defendants are not, and have never been, licensed or otherwise authorized to use
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

11 the Infringed Images. 12 16. Plaintiff notified Defendants that Defendants unauthorized use of the

HOLMES WEINBERG PC

13 Infringing Images constitutes copyright infringement, and that in light of the 2009 14 Settlement Agreement, the current infringement was willful. Plaintiff provided 15 Defendants with an opportunity to rectify their infringing conduct, but Defendants 16 refused to so rectify their conduct. 17 17. Upon information and belief, Defendants conduct as aforesaid was

18 willful. 19 20 21 22 18. COUNT ONE (Copyright Infringement Under 17 U.S.C. 101 et seq.) Plaintiff incorporates by reference each and every allegation contained

23 in paragraphs 1 through 17 above. 24 19. Defendants actions as described above constitute willful infringement

25 of Plaintiffs exclusive rights under its registered copyrights in violation of 17 26 U.S.C. 106 and 501. 27 28
-6COMPLAINT FOR COPYRIGHT INFRINGEMENT

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20.

Plaintiff is entitled to recover damages, which include its actual losses

2 and any and all profits Defendants made by Defendants that are attributable to the 3 infringement and are not taken into account in computing the actual damages. 17 4 U.S.C. 504. 5 21. Plaintiff is entitled to recover actual damages in no less than the

6 amount of $80,400 or in lieu thereof, at Plaintiffs election, statutory damages for 7 willful infringement in not less than the amount of $6,000,000, plus attorneys fees 8 and costs. 9 10
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

COUNT TWO (Intentional Removal of Copyright Management Information Under 17 U.S.C. 1202(b)) 22. Plaintiff incorporates by reference each and every allegation contained

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14 in paragraphs 1 through 21 above. 15 23. The Infringed Images copied contained embedded copyright

16 management information protected under 17 U.S.C. 1202(b). 17 24. Upon information and belief, Defendants intentionally removed the

18 copyright management information with the intent to induce, enable, facilitate, or 19 conceal an infringement of Plaintiffs rights under the Copyright Act. 20 25. Defendants conduct as aforesaid is a violation of 17 U.S.C.

21 1202(b). 22 26. By reason of said violations, Plaintiff is entitled to recover statutory

23 damages under 17 U.S.C. 1203(c) in the maximum amount of $2,500 for each of 24 the forty (40) circumventions, for a total of $100,000, plus costs and attorneys 25 fees. 26 /// 27 /// 28
-7COMPLAINT FOR COPYRIGHT INFRINGEMENT

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1 2

WHEREFORE, Plaintiff prays for the following relief against Defendants: A. A judgment from this Court that Defendants (1) infringed Plaintiffs

3 exclusive rights in the Infringed Images, and that this infringement was willful, and 4 (2) wrongfully removed Plaintiffs copyright management information embedded 5 in the Infringed Images, and that such removal was willful; 6 B. Permanent injunctive relief in the form of an order or orders requiring

7 that Defendants, and their respective officers, directors, principals, representatives, 8 agents, servants, employees, successors and assigns, and all persons acting in 9 concert or participation with each or any of them, or for them, be preliminarily and 10 permanently enjoined and restrained from:
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

11

1.

copying, reproducing or making any unauthorized use of the

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12 Infringed Images or any derivative thereof, in any form; 13 2. importing, manufacturing, producing, distributing, circulating,

14 selling, offering for sale, advertising, promoting, or displaying any simulation, 15 reproduction, counterfeit, or copy of the Infringed Images or any derivative 16 thereof, or causing and/or participating in such importation, manufacturing, 17 producing, distributing, circulating, selling, offering for sale, advertising, 18 promoting, or displaying any such items; and from 19 3. removing any copyright management information from any

20 other of Plaintiffs images; 21 C. Preliminary and permanent injunctive relief in the form of an order or

22 orders requiring that Defendants turn over for destruction all unauthorized copies 23 of the Infringed Images and all derivatives thereof (including without limitation the 24 Infringed Images) and any item or thing displaying such copies, electronic and 25 physical, in their possession, custody or control; 26 27 28
-8COMPLAINT FOR COPYRIGHT INFRINGEMENT

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D.

An award for copyright infringement of actual damages in no less

2 than the amount of $80,400 or in lieu thereof, at Plaintiffs election, statutory 3 damages in no less than the amount of $6,000,000, plus attorneys fees and costs; 4 E. An award of statutory damages for removal of copyright management

5 information in the maximum amount of $2,500 for each intentional removal, for a 6 maximum sum of $100,000, plus attorneys fees and costs; and 7 8 9 Dated: 10
30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

F.

Such other and further relief as the Court may deem just and proper. January 31, 2012 Malibu, California HOLMES WEINBERG, PC

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HOLMES WEINBERG PC

By: ______________________________ Steven M. Weinberg Attorneys for Plaintiff MASTERFILE CORPORATION

-9COMPLAINT FOR COPYRIGHT INFRINGEMENT

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30765 Pacific Coast Highway, Suite 411 Malibu, California 90265

EXHIBIT A TO COMPLAINT

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- 10 COMPLAINT FOR COPYRIGHT INFRINGEMENT

HOLMES WEINBERG PC

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