Capitol Records, LLC v. Redigi Inc.

Filing 315

PROPOSED CLERK'S CERTIFICATION OF A JUDGMENT TO BE REGISTERED IN ANOTHER DISTRICT. Filing fee $ 11.00, receipt number ANYSDC-16313397. Clerk's Certification of a Judgment to be Registered in Another District to be Picked up by Party. Document filed by Capitol Christian Music Group, Inc., Capitol Records, LLC, Virgin Records IR Holdings, Inc.. (Attachments: # 1 Exhibit Judgment) Document Number of Related Judgment: 222 . (Mandel, Richard) Proposed document to be reviewed and processed by Clerk's Office staff (No action required by chambers).

Case 1:12-cv-00095-RJS Document 222 Filed 06/03/16 Page 1 of 5

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF NEW YORK

---------------------------------------------------------------- )(
CAPITOL RECORDS, LLC, CAPITOL
CHRISTIAN MUSIC GROUP, INC. and
VIRGIN RECORDS IR HOLDINGS, INC.,
Plaintiffs,

12 Civ. 0095 (RJS)

USDSSDNY

DOCUMENT

-against-

ELEC~i~ONICALLY

REDIGI INC., JOHN OSSENMACHER and
LARRY RUDOLPH a/k/a LAWRENCE S.
ROGEL,

I

DOC it:

:LCD

_6_:=? ·~ ~ ·

DATE F-IL-ED-:

Defendants.

---------------------------------------------------------------- )(
STIPULATED FINAL JUDGMENT
SUBJECT TO RESERVATION OF RIGHT OF APPEAL
WHEREAS, on January 6, 2012, Capitol Records, LLC ("Capitol") commenced this
action (the "Action") against ReDigi Inc. ("ReDigi"), alleging that aspects of the ReDigi music
service, which asserted that it provided an online marketplace for among other things the alleged
"re-sale" of digital music files, constituted copyright infringement of Capitol's sound recordings
under the United States Copyright Act and the common law of the State of New York; and
WHEREAS, on March 30, 2013, the Court issued a Memorandum and Order in the
Action (ECF No. 109) granting Capitol's motion for summary judgment finding ReDigi directly
and secondarily liable for copyright infringement based on the unauthorized reproduction and
distribution of Capitol' s sound recordings (the "Summary Judgment Order"); and
WHEREAS, on August 30, 2013, Capitol filed a First Amended Complaint in the Action
adding ReDigi's founders, John Ossenmacher ("Ossenmacher") and Larry Rudolph a!k/a
Lawrence S. Rogel ("Rudolph"), as additional defendants ; and

Case 1:12-cv-00095-RJS Document 222 Filed 06/03/16 Page 2 of 5

WHEREAS, on October 30, 2014, Capitol, Capitol Christian Music Group, Inc.
("CCMG") and Virgin Records IR Holdings, Inc. ("Virgin") filed a Second Amended Complaint
in the Action adding CCMG and Virgin as additional plaintiffs; and
WHEREAS, on November 2, 2015, the Court entered an order approving a joint
conditional stipulation as to the individual liability of Ossenmacher and Rudolph for copyright
infringement; and
WHEREAS, the Court has scheduled a trial for April11, 2016 in order to determine the
amount of damages to which Capitol, CCMG and Virgin (collectively, "Plaintiffs") are entitled
against ReDigi, Ossenmacher and Rudolph (the "ReDigi Parties") for the copyright infringement
claims previously adjudicated in the Summary Judgment Order; and
WHEREAS, in order to avoid the expense and burden of a damages trial, while reserving
Defendants' right to appeal the Summary Judgment Order, the parties have agreed to enter into
this Stipulated Conditional Final Judgment to fix the amount of damages and the form of an
injunction and permit the parties to proceed to an appeal of the Summary Judgment Order.
NOW, THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED as
follows:
1.

This Court has jurisdiction over the parties hereto and over the subject matter in

issue, and venue is proper in this District.
2.

In the interest of efficiency and judicial economy, Plaintiffs and the ReDigi

Parties agree to stipulate to the amount of damages set forth in paragraph 4 below and the form
of a final injunction set forth in paragraph 5 below in order to permit this case to proceed to an
appeal of the Summary Judgment Order. The relief awarded in paragraphs 4 and 5 below is
expressly conditioned on the ReDigi Parties' reservation of their right of appeal as set forth in

-2-

Case 1:12-cv-00095-RJS Document 222 Filed 06/03/16 Page 3 of 5

paragraph 3 below.
3.

The parties stipulate that the the ReDigi Parties have expressly reserved their right

on appeal to challenge solely the judgment of liability for copyright infringement as addressed in
the Summary Judgment Order and no other rulings or orders in this case. If the judgment of
liability for copyright infringement is reversed or vacated on appeal, wholly or partially, this
Stipulated Final Judgment shall be set aside to the extent inconsistent with any such decision on
appeal or ruling of this Court on remand. For the purpose of clarity, to the extent the question of
the ReDigi Parties' liability for copyright infringement is reversed, reversed in part, or vacated
and remanded, in whole or in part, both the damages award and the injunction will be set aside to
the extent inconsistent with such a ruling. Otherwise, the parties agree that the provisions of this
Stipulated Final Judgment, including the award of damages and injunction set forth in paragraphs
4 and 5, shall be fully binding on all parties. Enforcement of this Stipulated Conditional Final
Judgment shall not be stayed pending appeal.
4.

Subject to paragraphs 2-3 above, the parties stipulate that the amount of damages

awarded to Plaintiffs against the ReDigi Parties jointly and severally shall be three million five
hundred thousand dollars ($3,500,000). For purpose of this judgment, the amount of damages is
stipulated to be an equal amount for each recording Plaintiffs have accused Defendants of
infringing.
5.

Subject to paragraphs 2-3 above, the ReDigi Parties and any of their respective

officers, agents, servants, representatives, directors, affiliates, employees, successors, assigns and
licensees and any other entities which the ReDigi Parties control, to the extent such persons or
entities are working under the ReDigi Parties' control, and all persons or companies in active
concert or participation with any of them or acting on their behalf, are permanently enjoined and

-3-

Case 1:12-cv-00095-RJS Document 222 Filed 06/03/16 Page 4 of 5

restrained from directly engaging in the United States or assisting others in engaging in the
United States in the unauthorized sale, offering for sale, or distribution, or reproduction
facilitating such sale, offer for sale or distribution, of any copyrighted sound recordings or
musical compositions owned by Plaintiffs, UMG Recordings, Inc. or any of their parents,
subsidiaries, affiliated or related companies, divisions or record labels (collectively, "UMG
Content"), or any other direct or secondary infringement of the copyrights in UMG Content in
the United States, including, without limitation, by operating, offering, using or otherwise
exploiting the services known as ReDigi 1.0 and ReDigi 2.0 ..
6.

The parties agree that costs (other than attorneys' fees) shall not be awarded.

However, Plaintiffs shall have the right under this Judgment to move for an award of attorneys'
fees, provided that the amount of such fees to be sought by Plaintiffs shall be capped at not more
than five hundred thousand dollars ($500,000) and the ReDigi Parties shall retain the right to
oppose any such motion for an award of attorneys' fees. Nothing contained herein shall have any
effect on the right of Plaintiffs or the ReDigi Parties to seek an award of attorneys' fees in
connection with the appeal of this Stipulated Conditional Final Judgment or any future
proceedings in the District Court that may occur following the entry of this Stipulated
Conditional Final Judgment.
7.

This Court shall retain continuing jurisdiction over the parties to this Stipulated

Conditional Final Judgment and over the subject matter of the Action for the purposes of
interpreting and enforcing the terms of this Stipulated Final Judgment, subject to the ReDigi
Parties' right of appeal set forth above

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Case 1:12-cv-00095-RJS Document 222 Filed 06/03/16 Page 5 of 5

AGREED AS TO FORM AND SUBSTANCE:

CO~&·LA~A:~·§

MISHCON DE REYA NEW YORK LLP

114 West 47lh Street
New York, New York 10036
[phone]

Mark S. Raskin
Two Park Avenue. 20th Floor
New York, New York 10016
(212) 612·3270

~~~
Richard S. Mandel
·

By:~~

Attorneys for Plaintiffs
ADELMAN MATZ, P.C.
0

By:

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Gary P, Adelman
1173A Second Ave., Suite 153
New York, New York, 10065
[phone]

Attorneys for Defendants
REDIGI INC.

VJROIN RECORDS IR HOLDINGS, INC.

By:~
Name:
Me MIC llt..t
A-I~ at~ j.

Title: ~ ~~

L.it.,.t,;..,

::CARRY RUDOLPH alk/a
LAWR.ENCE S. ROGEL