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Full Opinion
Between May 27 and June 5, 2014, the Court presided over a jury trial in which the hip-hop group the Beastie Boys and affiliated plaintiffs
This decision resolves Monsterâs post-trial motions. Monster moves for a judgment as a matter of law under Federal Rule of Civil Procedure 50. As to the Copyright Act claim, Monster argues that the evidence was insufficient to support the finding of willful infringement on which the award of enhanced statutory damages was based. As to the Lanham Act claim, Monster argues that the evidence was insufficient to support either a finding of a false endorsement or that Monster acted with intentional deception. Monster alternatively moves for a new trial under Rule 59 or for a reduction in damages. For the following reasons, Monsterâs motions are denied.
I. Background
A. Factual Background 1. The Parties
The Beastie Boys are a famous hip-hop group that was inducted into the Rock and Roll Hall of Fame in 2012. See Trial Transcript (âTr.â) 103-05, 526-28, 869. During their recording career, which dates to the early 1980s, the Beastie Boys were composed of three members: Adam Horovitz, who goes by the stage name âAd-Rockâ; Michael Diamond, who goes by the stage name âMike Dâ; and Adam Yauch, now deceased, who went by the stage name âMCA.â Tr. 105-06, 864, 870. As of trial, the Beastie Boys had sold more than 20 million albums in the United States and 40 million worldwide. Tr. 527, 1477. The Beastie Boys have licensed their music for movies, television shows, sporting events, charitable causes, and other creative projects, but rarely, if ever, for product advertisements. Tr. 118-20, 275, 864-65.
Monster is a well-known energy drink company. Tr. 997. It is known for its imaginative and decidedly non-traditional approach to advertising. Rather than promoting its drinks in television ads or on billboards, as do many other beverage companies, Monster engages in what it calls âlifestyle marketing.â This entails sponsoring action-sport athletes and musicians, promoting concert and âfestival-styledâ tours, and hosting events. Tr. 1059, 1351-54; PX 221. Monsterâs advertising goal is to create an aggressive and fun âbrand personality,â which will lead consumers to associate its beverages with music, action sports, video games, and attractive girls. Tr. 1001-02; PX 221 (âMonster is a lifestyle in a can.â).
Among the key demographic groups that Monster seeks to reach are fans of extreme sports and hip-hop music. At one point, Monsterâs director of music marketing considered approaching the Beastie Boys about a sponsorship agreement, believing that the Beastie Boysâ core âaudience was similar to a Monster consumer.â Tr. 1379. However, he determined that Monsterâs budget did not permit it to hire such a prominent group. See Tr. 1379.
2. The Infringing Video
As part of its marketing efforts, Monster organizes and sponsors an annual event called the âRuckus in the Rockies,â which consists of a snowboarding competition, and an after-party. Tr. 1092-93. On May 5, 2012, coincidentally the day after Yauch died, Monster held the second annual Ruckus in the Rockies at Lake Louise in Alberta, Canada. Tr. 1101-03; PX 145, PX 200. Monster booked various disc jockeys (âDJsâ) to perform at the after-party. Tr. 359, 454,1096.
One such DJ was Zach Sciacca, who records and performs under the name âZ-Trip.â Tr. 356, 954, 964-65, 1096-99; PX 145, PX 200. In early 2011, Z-Trip had entered into an agreement with the Beast-ie Boys to create a remix of some of their songs to promote the groupâs then-upcoming album, âHot Sauce Committee Part II.â Tr. 194-96, 278-279, 356-57, 954-58, 969. Under the agreement, Z-Trip was authorized to offer the remix for free as a promotional item. However, Z-Trip did not have the right to sell or license the remix, or to authorize third-parties to use it. Nor did he obtain any rights to the underlying Beastie Boys songs. See Tr. 278-279, 306, 358-59, 973, 975-76. On April 30, 2011, Z-Trip posted the remix on his website, where fans could download or stream it for free. Tr. 197-98, 359, 446-47, 451, 971-72; DX 88. The remix was entitled âBeastie Boys All-Access Mega-mixâ (the âMegamixâ). See Tr. 429-30.
At the 2012 Ruckus in the Rockies after-party, Z-Trip performed for 90 minutes. Tr. 457. His set included Beastie Boys music, in part to honor Yauch; other DJs â also played music by the Beastie Boys. Tr. 457-58. At some point, Z-Trip said to the crowd, âRest in peace, MCA.â Tr. 459.
Soon after the 2012 Ruckus, Monsterâs regional marketing director, Nelson Phillips, worked with videographer Clayton Larsen to create a recap video with highlights from the event. Tr. 1114-16. Phillips intended to use the video to promote the Monster brand. Tr. 1159, 1163. For the videoâs soundtrack, Phillips directed Larsen to use excerpts from Z-Tripâs Me-gamix of Beastie Boys songs. Tr. 1114^-15. Monster never obtained, or attempted to obtain, permission from the Beastie Boys or their management to use the Beastie Boysâ music in the video. See, e.g., Tr.
At trial, Phillips testified that he believed that Z-Trip, by his words and conduct, had authorized Phillips to use the Megamix, including the underlying Beastie Boysâ songs, in Monsterâs promotional video. Tr. 1115-16; see also Tr. 1170 (Phillips) (âQ. [Y]ou thought youâd obtained a license from Z-Trip, is that right? A. More or less, yes.â). Phillips testified that Z-Trip had conveyed this authorization to him orally, during a conversation in the after-partyâs âgreen roomâ; Z-Trip denied having any such conversation, or giving any such authorization, or telling anyone at Monster that he had any rights in the Beastie Boysâ music. See Tr. 369-70, 456-57, 496. Phillips further claimed that Z-Tripâs authorization to use the Beastie Boysâ songs in the promotional video could be inferred from a short email exchange in which he sent the video to Z-Trip for âapprov[al],â and Z-Trip responded, âDope!â Tr. 1119, 1121; PX 134. This email exchange, and Phillipsâ and Z-Tripâs respective accounts of their oral communications â both relevant to plaintiffsâ claim of willful copyright infringement â are reviewed at length infra, pp. 437-39.
Monsterâs promotional video is just over four minutes long. See PX 211 (âvideoâ). It consists of footage from the 2012 Ruckus, including a road trip to Lake Louise, the snowboarding competition, and the after-party. Monsterâs green logo is ubiquitous in the video: It appears, among other places, on apparel, snowboarding ramps, banners surrounding the snowboarding course, and cans of Monster energy drinks held by promotional models and DJs. The Beastie Boysâ music is also ubiquitous: The videoâs soundtrack consists of excerpts from five Beastie Boys songs: âPass the Mic,â âSo Whatcha Want,â âSabotage,â âLooking Down the Barrel of a Gun,â and âMake Some Noise.â The video does not contain any voice-overs, narration, or interviews; the .Beastie Boysâ music, which fills all but 32 seconds of the video, is the main aural event.
Near the end of the video, the credits roll in neon green and grey text, Monsterâs official brand colors. In pertinent part, the credits read:
MUSIC
ALL-ACCESS BEASTIE BOYS MEGA MIX
COURTESY OF Z-TRIP
DOWNLOAD THE LINK FOR FREE AT ZTRIP.BANDCAMP.COM
Video at 3:51-3:53. The next screen reads âRIP MCA.â Id. at 3:54-3:58.
On May 9, 2012, Monster posted the video on its website, YouTube channel, and Facebook page. See Tr. 307, 531, 1119-21, 1124-26, 1266; PX 135, PX 142, PX 150, PX 200, PX 270. The description of the video read: âBeastie Boys Megamix by Z-Trip. Download âAll-Access A Beastie Boys Megamixâ â here: http://ztrip. bandcamp.com.â PX 135, PX 150, PX 270; see also Tr. 708, 835. Monster also sent press releases to various snowboarding magazines and websites; these included the same language. Tr. 1126-29; PX 165, PX 276. âDozensâ of websites posted Monsterâs release verbatim, including the reference to the Beastie Boys- Megamix. See PX 165; see also, e.g., PX 164, PX 276.
A few weeks later, Monster received a letter from counsel for the Beastie Boys, which stated that Monster did not have permission to use the Beastie Boysâ music
B. Pre-Trial Procedural History 1. The Beastie Boysâ Complaint
On August 8, 2012, the Beastie Boys filed suit against Monster in this District. Dkt. 1 (âCompl.â). Factually, the Complaint alleged that Monster, without the Beastie Boysâ consent, had used the Beast-ie Boysâ songs in the video, that Monster had thereby sought to associate its products with the Beastie Boys and to convey the Beastie Boysâ endorsement of Monster, that the video text had included the names âBeastie Boysâ and âMCAâ for the same purpose, and that Monster had posted links to the video on various websites to advertise and promote Monsterâs products, events, and corporate goodwill. Compl. ¶¶ 58-68.
Based on these allegations, the Beastie Boys asserted claims of copyright infringement in violation of the Copyright Act, and false endorsement in violation of the Lan-ham Act. As to copyright, the Beastie Boys asserted two claims of infringement for each of the five songs
On October 4, 2014, Monster filed an Answer.
2. Monsterâs Third-Party Complaint Against Z-Trip
The following day, October 5, 2012, Monster brought a third-party Complaint against Z-Trip. Dkt. 9. Consistent with the affirmative defenses in its Answer, Monster alleged that Z-Trip had caused any damage to the Beastie Boys for which Monster might be found liable by (1) contracting with Monster to allow it to make unrestricted use of the Megamix, and (2) fraudulently leading Monster to believe that Z-Trip had authority to license the Beastie Boysâ recordings contained in the Megamix. Id. ¶¶ 12-23, 28-33. Monster based these claims on the brief interactions between its employee, Phillips, and Z-Trip. Id. ¶¶ 11-12, 15-17. Specifically, Monster alleged that Z-Trip had authorized Phillips to use the Megamix in the video in a brief oral conversation during the Ruckus after-party on May 5, 2012, and in a short email exchange on May 8, 2012. Id. As relief, Monster sought, from Z-Trip, indemnification, compensatory and punitive damages, costs, and fees. Id. ¶¶ 23, 26, 33, 36.
3. Z-Tripâs Summary Judgment Motion
On August 1, 2013, following discovery, Z-Trip moved for summary judgment on Monsterâs claims against him. Dkt. 36, 37 (âZ-Trip Br.â), 38. As to Monsterâs contract claim, Z-Trip argued that, as a matter of law, he could not have entered into a contract authorizing Monster to make unrestricted use of the Beastie Boys recordings in the Megamix because (1) he lacked apparent authority to issue a license for the Beastie Boysâ music, and (2) his perfunctory exchanges with Phillips could not be read to reflect agreement on material terms of any such license. Z-Trip Br. 7-14. As to Monsterâs fraud claim, Z-Trip argued that no reasonable person could have believed that he had authority to license the Beastie Boysâ music for use by Monster in a promotional video. Id. at 15-18. The Beastie Boys filed a memorandum supporting Z-Tripâs motion. Dkt. 39.
On November 4, 2013, the Court granted summary judgment in favor of Z-Trip on both of Monsterâs third-party claims. See Dkt. 51, reported as Beastie Boys v. Monster Energy Co., 983 F.Supp.2d 338 (S.D.N.Y.2013). As to the breach of contract claim, the Court held that, based on the âfleeting oral communicationsâ and âensuing email exchangeâ between Phillips and Z-Trip, âa reasonable juror could not find an offer, sufficiently clear acceptance, or consideration ... let alone all three,â and thus no contract between Monster and Z-Trip could be found. Id. at 348. The Court noted that these informal communications, even read in the light most favorable to Monster, did not include any actual or proposed âbilateral exchangeâ; nor did either party âspecif[y] the legal duties [it] was offering.to undertake.â Id. at 349. Furthermore, these communications were âtoo enigmatic and elliptical to constitute the âclear [and] unambiguousâ acceptance necessary for contract formation.â Id. at 350 (alteration in original). The âsparse communicationsâ also did not establish any non-incidental consideration. Id. Finally, the Court noted, even assuming that Phillips and Z-Trip had entered into some form of contract, it would have taken âan heroic effort of explicationâ and âflout[ed] common senseâ to interpret the contract to include a license to use the Beastie Boysâ music in the video. Id. at 351.
As to Monsterâs claim of fraud, the Court found the record devoid of evidence either that Z-Trip acted with fraudulent
C. Trial
Trial began May 27, 2014. As witnesses, the Beastie Boys called Horovitz and Diamond, the two surviving band members; John Silva, the bandâs manager; Z-Trip, the DJ; Lisa Thomas, a damages expert; and Anthony Ricigliano, a musicologist who analyzed the videoâs use of Beastie Boysâ songs. The Beastie Boys also offered deposition testimony from Lorrie Boula, Z-Tripâs manager, and from Monster employees. Monster, for its part, called four of its employees: Phillips, director of marketing for Monsterâs Canadian business unit; Leroy Nichols, director of interactive marketing; Brent Hamilton, director of music marketing; and Sam Pontrelli, global head of marketing. Monster also called two damages experts: Jon Albert and Erich Joachimsthaler.
1. Overview of Disputed Issues
Copyright claims. Shortly before trial, Monster conceded liability as to the claims of copyright infringement, and did so again in its opening statement. See Dkt. 141 (âPre-Trial Conf. Tr.â), at 48; Tr. 91-92. Accordingly, trial focused on damages. Under the Copyright Act, a prevailing plaintiff may choose, at any time before entry of final judgment, between actual and statutory damages. See 17 U.S.C. § 504(c). The parties vigorously litigated both types.
The parties agreed that actual damages were measured by the price that a willing buyer and a willing seller would have agreed upon for a license to use the Beast-ie Boysâ musical compositions and sound recordings in Monsterâs video. See PreTrial Conf. Tr. 84, 87; Tr. 525-26 (Thomas), 1478-79 (Albert). But, for two reasons, there was no obvious benchmark for determining the cost of such a license. First, although the Beastie Boys have widely licensed their music for other purposes, it had never done so for a traditional product advertisement. See Tr. 121 (Horovitz), 864-65 (Diamond). But see note 2, supra. Second, Monsterâs four-minute web video, disseminated via YouTube, Facebook, and other websites, was a modern, relatively novel form of product advertisement.
As to statutory damages, the parties disputed whether Monsterâs infringements of the Beastie Boysâ 10 copyrights had been willful, innocent, or neither (which the Court and counsel referred to as âregularâ). The Copyright Act authorizes statutory damages between $750 and $150,000 for willful infringement; between $200 and $30,000 for innocent infringement; and between $750 and $30,000 for âregularâ infringement. See 17 U.S.C. §§ 504(c)(1)-(2); see also Agence France Presse v. Morel, No. 10 Civ. 2730(AJN), 2014 WL 3963124, at *11 (S.D.N.Y. Aug. 13, 2014). The evidence as to this point is reviewed in detail below, in connection with Monsterâs Rule 50 challenge to the juryâs finding of willfulness. See infra pp. 437-43. In brief, in arguing for willfulness, the Beast-ie Boys emphasized Monsterâs sophistication, its failure to take any steps to inquire into whether it could lawfully use the Beastie Boysâ songs in the video, its economic motive to exploit the bandâs music to promote its beverages to the Beastie Boysâ fan base, and the absence of any policies or controls within Monster' to assure that its promotional videos respected artistsâ copyrights. The Beastie Boys also disputed as false Phillipsâ claim that Z-Trip had authorized Monster to use the Beastie Boysâ music to promote its beverages. For its part, Monster denied adopting a corporate strategy that facilitated misuse of copyrighted music. Monster instead depicted Phillips as a lone actor who had inadvertently infringed on the Beastie Boysâ copyrights. Monster argued that Phillips had honestly but mistakenly believed, based on his interactions with Z-Trip, that he had sufficient permission to include the bandâs music in the video.
As to monetary damages on the Lanham Act claim, the parties agreed that the proper measure was the fair market value a willing buyer would pay a willing seller for such an implied endorsement of Monster by the Beastie Boys. See Tr. 574, 1514. Thomas, plaintiffsâ damages expert, drew on her experience negotiating product endorsement deals for celebrity clients, see Tr. 575-77, and estimated the value of such an endorsement fee as $1 million. See Tr. 553, 574. By contrast, Monsterâs expert, Joachimsthaler â the CEO of a brand consulting company, Vivaldi Partners â opined that the purported endorsement had no value. Tr. 1422. He testified that there is âno wayâ that a viewer would have perceived any association between the Beastie Boys and Monster because the video was not memorable, lacked an image of any band member, and was unlikely to be watched repeatedly by a viewer. Tr. 1411-14. Occupying something of a middle ground, Albert, another damages expert who testified for Monster, estimated the value of the use of the Beastie Boysâ music and marks in the video and Face-book link at $50,000. Tr. 1515.
2. Monsterâs Rule 50(a) Motion
On June 2, 2014, after the Beastie Boys rested, Monster orally moved for a directed verdict on the Lanham Act claim under Rule 50(a). Tr. 1192-94. The Court denied the motion. Tr. 1223, 1234-35. The Court, however, invited Monster, in the event of an adverse verdict, to renew its challenge, this time supported by legal briefing. Tr. 1220-22. The Court noted that even if the Lanham Act claim later proved deficient, Monster was not prejudiced by submitting it to the jury alongside the Copyright Act claims. The Court also invited Monster to propose jury instructions that would minimize the risk that the jury might confuse the standards governing the two causes of action. See Tr. 1234-35.
On June 3, 2014, the Court held a conference at which it reviewed its draft jury-charge with counsel. See Tr. 1241-63, 1383-85, 1390-92, 1500-07. For the most part, counsel were in accord with the Courtâs proposed charge.
Monster made two substantive objections. First, it asked the Court not to elicit, on the verdict form, a separate finding as to whether Monster, if liable on the Lanham Act claim, had acted in bad faith. The Court rejected this claim because this finding would be relevant in the event the Beastie Boys sought attorneysâ fees. See Tr. 1255-59, 1384-85; see also Twin Peaks Prods., Inc. v. Publâns Int'l Ltd., 996 F.2d 1366, 1383 (2d Cir.1993). Second, Monster asked for a nominative fair use instruction with respect to the use of the Beastie Boysâ name in describing Z-Tripâs Mega-mix. The Court declined to give that instruction because there had been no need for Monster to use the Beastie Boysâ name when identifying the Megamix. Tr. 1500-07; see also infra, pp. 438-39, 455-56.
Otherwise, as to the Courtâs instructions â including as to willful copyright infringement, actual and statutory copyright damages, the elements of false endorsement and intentional deception under the Lanham Act, and the standards for awarding monetary damages under that Actâ the parties substantially agreed with the Courtâs proposed charge. On June 4, 2014, after Monster rested, the Court charged the jury. See Tr. 1590-1620.
4. The Verdict
On June 5, 2014, the jury returned its verdict. See Dkt. 147 (âVerdict Formâ). On the Copyright Act claims, the jury found each of Monsterâs 10 acts of infringement willful. Id. at 2. In actual damages, it awarded $100,000 to Brooklyn Dust for each infringement of a musical composition copyright and $100,000 to the Beastie Boys for each infringement of a sound recording copyright, for a total of $1 million. Id. As to statutory damages, the jury awarded $120,000 for each of the 10 acts of infringement, for a total of $1.2 million. Id. at 2.
On the Lanham Act claim, the jury found that Monster had âused the Beastie Boysâ persona without permission, thereby suggesting a false endorsement of Monsterâs products.â Id. at 4. It also found that Monster had âintended to deceive consumers concerning the Beastie Boys endorsement of its products,â and had not proven âthat consumers were not, in fact, confused or deceived as to whether the Beastie Boys endorsed Monsterâs products.â Id. On this claim, the jury awarded the Beastie Boys $500,000 in damages. Id.
5. Post-Trial Motions
After the jury returned the verdict, Monster orally renewed its motion for judgment as a matter of law. Tr. 1750. On July 22, 2014, Monster moved under Rule 50(b) for such a judgment, along with a supporting memorandum of law and a declaration. Dkt. 168, 169, 170 (âMonster Br.â). On August 27, 2014, the Beastie Boys filed a memorandum of law and a declaration in opposition. Dkt. 173, 174 (âBeastie Br.â). On September 9, 2014, Monster submitted its reply. Dkt. 175, 176 (âReply Br.â). On October 17, 2014, the Court held argument. Dkt. 177.
II. Discussion
Monster moves for judgment as a matter of law under Rule 50(b) on three issues: whether (1) its copyright infringement was willful, as required to recover enhanced statutory damages under the Copyright Act; (2) it is liable for false endorsement in violation of the Lanham Act; and (3) it intentionally deceived consumers, as required to recover monetary damages under the Lanham Act. Monster concedes that the jury was properly instructed but contends that its verdict was not supported by legally sufficient evidence. "Alternatively, Monster seeks a new trial on all claims pursuant to Rule 59, or a reduction of the juryâs damages awards.
A. Monsterâs Rule 50(b) Motion
1. Applicable Legal Standards .
â[J]ury verdicts should be disturbed with great infrequency.â Raedle v. Credit Agricole Indosuez, 670 F.3d 411, 418 (2d Cir.2012). To grant a motion for judgment as a matter of law, the Court must find that â âa reasonable jury would not have a legally sufficient evidentiary basis to find for [the non-moving] party on that issue.â â Stampf v. Long Island R.R. Co., 761 F.3d 192, 197 (2d Cir.2014) (quoting Fed.R.Civ.P. 50(a)). This determination is appropriate âonly where there is such a complete absence of evidence supporting the verdict that the juryâs findings could only have been the result of sheer surmise and conjecture, or there is such an overwhelming amount of evidence in favor of the movant that reasonable and fair minded men could not arrive at a verdict against him.â Bucalo v. Shelter Island Union Free Sch. Dist., 691 F.3d 119, 127-28 (2d Cir.2012) (citations omitted).
In resolving a Rule 50 motion, the Court reviews all the record evidence. Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133, 150, 120 S.Ct. 2097, 147 L.Ed.2d 105 (2000). However, the Court must disregard evidence favorable to the moving party that the jury was not required to credit (i.e., because it was impeached or disputed). Id. at 150-51, 120 S.Ct. 2097. And the Court must view the evidence âin the light most favorable to the [non-moving] partyâ and âgive deference to all credibility determinations and reasonable inferences of the jury.â Galdieri-Ambrosini v. Natâl Realty & Dev. Corp., 136 F.3d 276, 289 (2d Cir.1998).
In sum, the Court âmay grant a motion for judgment as a matter of law âonly if it can conclude that, with credibility assessments made against the moving party and
2. Copyright Act â Willfulness
Monster does not dispute that â without seeking or obtaining a license or other form of authorization from the Beastie Boys or their manager â it used excerpts of five Beastie Boys songs as the soundtrack for its recap video. See, e.g., Tr. 106-07, 121-22, 256, 875-76, 1115-16, 1173, 1316-17. At trial, Monster therefore conceded liability on the Copyright Act claims, disputing only damages. As to the statutory damages inquiry, a key issue was whether Monsterâs infringements were willful. The jury held that they were, and this finding elevated the maximum damages per infringement to $150,000; had the jury found either an innocent or a âregularâ (neither innocent nor willful) violation, the maximum damages per infringement would have been $30,000. See 17 U.S.C. §§ 504(c)(l)-(2); Agence France Presse, 2014 WL 3963124, at *11. Accordingly, if. the evidence did not support a finding of willfulness, the Court must reduce the statutory damages award from the present $120,000 per violation to, at most, $30,000 per violation. This reduction would not, however, affect the juryâs award of $100,000 per violation in actual damages,
a. Relevant Facts
Phillips, director of marketing for Monsterâs Canadian business unit, planned the 2012 Ruckus and produced the recap video. Tr. 1088, 1092, 1114-16. Before joining Monster, he had completed one semester of college, spent several years in the forestry and ski industries, and worked in sales and marketing for an apparel company. Tr. 1089-90. He had no training in music licensing. Tr. 1135-38. Phillips testified that, at the time he created the video, he believed that Z-Trip had authorized him to use the Beastie Boys music in the video and that he did not need to obtain permission from anyone else. Tr. 1115-16, 1170. Z-Trip, by contrast, denied that he had ever granted such permission. Tr. 369-70, 456-57, 496.
According to Phillips, he and Z-Trip first discussed Z-Tripâs Beastie Boys Me-gamix in person on May 5, 2012. Shortly before Z-Tripâs performance at the after-party, Z-Trip and Phillips had a brief conversation in the green room. Tr. 456, 1111-12. Z-Trip and Phillips had very different recollections of this conversation. Phillips testified as follows:
Q. Can you describe the conversation?
A. We had just â we had just entered the green room and we â from the green*438 room we could overlook the crowd, and I quite simply said, âDo you have any music that we can use for a recap video?â
Q. Okay. What did Z-Trip say after you asked him if he had any music you could use for the recap video?
A. He said yes, he had this All Access Beastie Boys Megamix available on his website, and he suggested that it would be the perfect music for us to use for a recap video for this weekend, or for this event.
Q. Had you ever heard of the All Access Beastie Boys â had you ever heard of the All Access Beastie Boys Megamix before Z-Trip mentioned it to you?
A. No.
Q. What did you say in response to Z-Tripâs suggestion?
A. Well, I canât tell you the exact words, but I was fairly excited and I thought that was a great idea, I told him so, and we carried on.
Tr. 1111-12. In contrast, Z-Trip testified that he and Phillips had âa brief conversation ... about the drinks that were on my hospitality rider not being correct.â Tr. 456. Z-Trip also recalled saying âsomething along the lines of, like, Iâm really excited to play or something or Iâm ready to go.â Tr. 456. Z-Trip testified that he did not remember any other conversation with Phillips in the green room. Tr. 456-57.
Soon after the 2012 Ruckus, Phillips worked with Larsen, a videographer, to create a recap video. Tr. 1114-17. Although Larsen handled the mechanics of video editing and decided which audio and video clips to include, Phillips dictated the general structure of the video and directed Larsen to use the Megamix as the soundtrack. Id.
On May 8, 2012 at 2:14 p.m., Larsen sent a âpreviewâ of the video to Phillips and two other Monster employees, Dano Pendygrasse and Jay Vaillancourt. PX 133. Both Phillips and Pendygrasse responded with several requested changes. PX 132, PX133. For instance, the preview video did not include a music credit, so Phillips suggested adding âRe-mix provided by ZTrip,â PX 133, and Pendygrasse proposed âCourtesy of Z-Trip,â PX 132.
Later on May 8, 2012, at 11:47 p.m., Phillips sent Z-Trip the following email, including a link to the video as it then stood:
Hey Zach,
Please have a look at the video from this past weekend and let me know if you approve. (I think weâll remove the logo[ ]s at the end since theyâre redundant and the rest will get cleaned up just a little bit more.)
Thanks again for an amazing weekend!!
Once you approve, weâll post on youtube and notify our 16M fans on fb
[Facebook].
the password is: ruckus
http://vimeo.com/41825355
PX 134. On May 9, 2012, at 3:50 a.m., Z-Trip replied:
Dope!
Maybe at the end when you put up the info about my Beasties mix, you could post below it âDownload the mix for free at http://ztrip.bandcamp.comâ
That way people can pause it and go get it if they want ... Also maybe a proper link on the description they can click thru once itâs posted proper?
Dope though ... Love the can at the end.
No 45 footage?
*439 And, btw [by the way] ... Thanks again for everything ... still high off the weekend!
Z
PX 134 (ellipses in original).
At trial, Phillips and Z-Trip offered significantly different understandings of Phillipsâ email and Z-Tripâs response. Phillips testified that when he wrote âlet me know if you approve,â he âmeant to approve everything that there is, all aspects of this video.â Tr. 1119. Z-Trip, by contrast, testified that he interpreted Phillipsâ request to pertain only to â[his] likeness and [his] involvement in the video.â Tr. 369-70. He did not understand Phillips to request his approval to use the Beastie Boys music as the videoâs soundtrack, because the music did not belong to him. Tr. 370, 496. Rather, as he testified, he assumed that Monster had separately reached out to the Beastie Boys to secure permission to use their music. Tr. 481; see also DX 7 (June 5, 2012 email from Z-Trip to his manager Boula, stating of Monster, âI figured theyâd also reach out to the Beasties to clear their tunes too ... Didnât know they hadnât.â).
On May 9, 2012, Pendygrasse sent the video to Leroy Nichols and Ryan Hartsfield, copying Phillips and Vaillaneourt. Tr. 1162, PX 135. Nichols and Hartsfield, both Monster employees, were responsible for reviewing all video content before it was posted to Monsterâs social media pages. Tr. 1187-88, 1281 (Nichols Dep. 19-20, 31-32, 38-39). Nichols reviewed the video to make sure âit fit with the Monster Energy brand,â Tr. 1266, 1278 (Nichols Dep. 19-20, 38-39), but he did not consider whether the necessary music rights had been secured, Tr. 1280 (Nichols Dep. 42-43). Instead, he testified, his practice was to trust that the content producers had secured the rights for any music used in promotional videos. Tr. 1280-81 (Nichols Dep. 15-18, 22-23, 43, 101). Nichols was familiar with some of Monsterâs third-party content providers and believed that licensing music was part of their job. Tr. 1280-81, 1300 (Nichols Dep. 15-18). With regard to the Ruckus video, however, Nichols was aware that Monsterâs primary third-party content providers had not been involved; he did not know who had created the recap video. Tr. 1316-17 (Nichols Dep. 38). He also knew that Monster, at that time, did not provide any training or guidance related to the use in its videos of copyrighted or trademarked content. See Tr. 1296 (Nichols Dep. 21). Yet Nichols reviewed the video only for âfitâ with Monsterâs brand and then posted it to Monsterâs YouTube channel. Tr. 1266 (Nichols Dep. 19-20, 38-39).