Beastie Boys v. Monster Energy Co.
BEASTIE BOYS v. MONSTER ENERGY COMPANY
Attorneys
Kevin Ronald Puvalowski, Paul Wendell Garrity, Theodore Conrad Max, Valentina Shenderovich, Sheppard, Mullin, Richter & Hampton, LLP, Thomas McKee Monahan, Storch Amini & Munves, P.C., New York, NY, for Plaintiffs., Adam M. Cohen, Dana Michelle Susman, Linda Marie Dougherty, S. Reid Kahn, Tanya Claire Pohl, Kane Kessler, P.C., Kevin Ronald Puvalowski, Sheppard, Mul-lin, Richter & Hampton, LLP, New York, NY, for Defendant.
Full Opinion (html_with_citations)
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).
As a result of this lawsuit, Monster has changed its policy. PX 191. Monster now requires that âALL videos will have to be approved by [Monster headquarters] before they get posted. Any time music is used, we will need authorization on the music.â Id.
b. Applicable Legal Standards
In the context of copyright infringement, the Second Circuit has defined âwillfulnessâ to mean â(1) that the defendant was actually aware of the infringing activity, or (2) that the defendantâs actions were the result of âreckless disregardâ for, or âwillful blindnessâ to, the copyright holderâs rights.â Island Software & Computer Serv., Inc. v. Microsoft Corp., 413 F.3d 257, 263 (2d Cir.2005). Accordingly, courts have found willfulness where a defendant engaged in âa pattern of conduct so unreasonable as to constitute reckless disregard,â id. at 264, had âconstructive knowledgeâ of the infringement, Fitzgerald Pub. Co. v. Baylor Pub. Co., 807 F.2d 1110, 1115 (2d Cir.1986), âshould have knownâ that his actions constituted in
Where the defendant is a corporation, it can be held liable for acts of willful infringement committed by its employees within the scope of their employment or for its benefit. See Sygma Photo News, Inc. v. High Soc. Magazine, Inc., 778 F.2d 89, 92 (2d Cir.1985) (citing Shapiro, Bernstein & Co. v. H.L. Green Co., 316 F.2d 304, 308-09 (2d Cir.1963)) (âAll persons and corporations who participate in, exercise control over, or benefit from the infringement are jointly and severally liable as copyright infringers.â); Arista Records LEG v. Lime Grp. LLC, 784 F.Supp.2d 398, 437 (S.D.N.Y.2011) (same). â[A]n employer is responsible for copyright infringement committed by an employee in the course of employment, under the normal agency rule of respondeat superior.â U.S. Media Corp. v. Edde Enter., Inc., No. 94 Civ. 4849(MBM)(MHD), 1996 WL 520901, at *6 (S.D.N.Y. Sept. 12, 1996) (citing Sygma, 778 F.2d at 92).
c. Analysis
At trial, the Beastie Boys pursued a theory of reckless disregard. They argued that Monster had recklessly disregarded the possibility that the video infringed on the Beastie Boysâ copyrights and that its infringement therefore was willful. It argues now that the evidence supported the juryâs finding of willfulness. Although the issue of willfulness was vigorously disputed at trial and certainly could have been resolved for either side, the Court agrees with plaintiffs that there was sufficient circumstantial evidence of reckless disregard to support the juryâs finding.
The central figure as to this issue is Phillips. Notwithstanding his background (in the forestry and skiing industries) and his lack of training in music licensing, there was ample evidence from which a jury could conclude that Phillips well appreciated the concept of copyright and the consequent need to obtain permission to use an artistâs music in the promotional videos he created for Monster. Phillips testified that, before the 2012 Ruckus, he had produced about a dozen recap videos on Monsterâs behalf. Tr. 1103-04 (Phillips Dep. 78-79, 83). To create a soundtrack for each video, Phillips testified, he either contacted the artist to seek permission to use that artistâs music or used music that an artist had explicitly asked him to use. See Tr. 1105-06, 1108-09. Phillips also was familiar with a written sponsorship agreement between Monster and a DJ who performs as âMat the Alienâ that allowed Monster to use that DJâs music. Tr. 1105-06 (Phillips Dep. 40). And Phillipsâ claim to have asked Z-Trip for permission to use the Megamix in the recap video arguably reinforced the inference that he understood the need to obtain some sort of authorization.
Notwithstanding this awareness, Phillips did not seek permission from the Beastie Boys or their manager to use their music.
Furthermore, not only was Phillipsâ testimony on that point directly contradicted by Z-Trip â during cross-examination, Phillipsâ trial testimony was impeached on a number of other points where it was at odds with his deposition testimony. See, e.g., Tr. 1142-43, 1147-48, 1179-80. Phillips also bizarrely refused to acknowledge that Monsterâs signature shade of green appeared in the video he had helped create. See Tr. 1142, 1149, 1157. The self-serving nature of the claim of copyright authorization by Phillips, who remained a Monster employee, gave the jury an additional reason to reject it. See, e.g., PX 170 (July 2012 e-mail from Phillips stating âIâve found myself in a bit of trouble using unlicensed music lately ... HA!â). Making all credibility assessments in favor of the Beastie Boys, as the Court must on Monsterâs Rule 50 motion, see Zellner, 494 F.3d at 370-71, the jury must be taken as having rejected Phillipsâ claim to have sought and received from Z-Trip the authorization, which he claims to have known was needed, to use the Beastie Boysâ music in the video.
Unlike Phillipsâ disputed claim to have received oral authorization from Z-Trip to use the Beastie Boysâ copyrighted music, the May 8, 2012 email exchange between Phillips and Z-Trip is a durable, indisputable fact. At trial, Monster, standing by Phillipsâs testimony, argued that the post-Ruckus email exchange was a good-faith attempt by Phillips to secure the needed authorization to include the Beastie Boysâ music in the recap video. Had the jury accepted Monsterâs reading of the email exchange, it presumably would' not have found willful copyright infringement. But the jury evidently did not credit Monster on that point. And the Court, on its Rule 50(b) review, rejects Monsterâs claim that the Phillips/Z-Trip email exchange disproves that it acted with reckless disregard of the Beastie Boysâ copyright interests.
In his email, Phillips asked Z-Trip to review the video âand let me know if you approve.â Z-Trip replied, âDope!â and asked Phillips to add a plug for his Mega-mix. PX 134. On its face, this exchange does not ask for, and says nothing about, approval of the video on behalf of the Beastie Boys. The Beastie Boys are not referenced at all in Phillipsâ email; and they are referenced in Z-Tripâs response only as part of a descriptor (âmy Beasties mixâ) of the Megamix that Z-Trip, sua sponte, asked Phillips to plug. The email thus is more reasonably read â and a rea
In sum, a reasonable jury could find that Phillips was well aware, including, based on his experience securing approval of other artistsâ music for similar recap videos at Monster, of the legal duty to secure the Beastie Boysâ approval for the use of their music in the companyâs video, but that Phillips recklessly disregarded that duty. See, e.g., Basic Books, 758 F.Supp. at 1543-44 (finding reckless disregard where defendant âshould have knownâ that its conduct infringed plaintiffs copyrights).
Although Phillipsâ knowledge and conduct by itself supported a finding of willful infringement based on a theory of reckless disregard, the trial evidence as to Nichols, Monsterâs director of interactive marketing, reinforces that finding. Nichols was not involved in the creation of the recap video. But he posted it online â also without ever ascertaining that Monster had obtained authorization from the Beastie Boys to use their music. Tr. 1316-17. Nichols was familiar with music licensing procedures, see Tr. 1280-81 (Nichols Dep. 40-43); his job responsibilities required sensitivity to othersâ intellectual property rights, including procuring sponsorship agreements with athletes and video game companies, see Tr. 1184-86 (Nichols Dep. 30, 81-82). Nichols also was responsible for producing and updating Monsterâs social media guide, which instructed employees on how to use YouTube, Facebook, and other websites in promoting the Monster brand. See Tr. 1297-99. Revealingly, Nichols had been vigilant in protecting Monsterâs intellectual property rights: He had, for example, initiated the take-down of websites and advertisements that had used.Monsterâs trademarked logo without authorization. See Tr. 1284-85 (Nichols Dep. 12, 23).
Despite his facility with intellectual property and licensing, and despite his solicitude for Monsterâs intellectual property rights, Nichols never inquired into whether Monster had a license to use the Beastie Boysâ music in its promotional video. Tr. 1280, 1316-17 (Nichols Dep. 42-43). Nichols also was aware that, unlike some earlier recap videos, this video was not produced by a third-party content provider who was responsible for securing the rights to the music. Tr. 1316-17 (Nichols Dep. 30-31, 38.) Yet, before posting the video to Monsterâs website, YouTube channel, and Facebook page, Nichols ensured only that the video âfit with the Monster Energy brand.â Tr. 1266, 1278 (Nichols Dep. 19-20, 38-39). The jury could reasonably conclude that this failure to investigate constituted reckless disregard. See, e.g., Yurman Design, Inc. v. PAJ, Inc., 262 F.3d 101, 113 (2d Cir.2001) (finding willful infringement based on defendantâs âfailure to investigate the possibility of intellectual property violationsâ); Granada Sales Corp. v. Aumer, No. 02 Civ.
Finally, to the extent that Monster depicted its infringement as a sloppy but non-willful act by Phillips, Nichols, and perhaps others, the evidence gave the Beastie Boys a solid rejoinder sounding in recklessness. As the Beastie Boysâ counsel noted in closing argument, see Tr. 1622, Monster, at the time, did not perform any training of employees related to the use of copyrighted or trademarked content; it therefore left Phillips to his own devices in producing the video. See, e.g., Tr. 1109-10, 1134-38 (Phillips Dep. 221-22), 1295 (Nichols Dep. 21). In determining whether there was reckless disregard, the jury could fairly take into account both Monsterâs (1) decision to task an employee who was manifestly unqualified to make sophisticated judgments about intellectual property and licensing with the responsibility for creating and disseminating the recap video, and (2) striking failure to put in place a comprehensive music licensing policy.
3. Lanham Act â Monsterâs Liability for False Endorsement
Monsterâs next challenge under Rule 50(b) is to the juryâs finding of liability on the Lanham Act claim. Specifically, the jury found that âMonster used the Beastie Boysâ persona without permission, thereby suggesting a false endorsement of Monsterâs products.â Verdict Form at 4.
a. Relevant Facts
A detailed account of the video is necessary to assess the Lanham Act claim. The video is four minutes and six seconds long. See PX 211 (âvideoâ). It opens with a full-screen image of the Monster logo crashing down amidst grey smoke and broken-glass sound effects. Video at 0:01. Immediately thereafter, an excerpt of the Beastie Boysâ song âPass the Micâ begins, and Horovitzâs distinctive vocals announce,
With âPass the Micâ continuing to play, the video turns to the main events of the 2012 Ruckus. The first on-site shot is of two âMonster girls,â promotional models in midriff-baring outfits emblazoned with the Monster logo on their low-slung belts and bra tops. Id. at 0:38-0:41. After the Monster girls wave and blow kisses, the video cuts to about 90 seconds of footage of the snowboarding competition. Id. at 0:41-2:12. At 53 seconds, the video shows a snowboard with a Monster logo sticker, and the soundtrack changes from âPass the Micâ to âSo Whatcha Want,â a second Beastie Boys song. Monster logos also appear on the competitorsâ helmets and hats, the sides of man-made snowboarding ramps, and large banners surrounding the snowboarding course. Monsterâs official brand colors are similarly ubiquitous: The textual headers that appear throughout the video are green and grey; even the snow is accented in Monsterâs signature shade of bright green. At 1:05, the video shifts from âSo Whatcha Wantâ to âSabotage,â a third, iconic Beastie Boys song. While snowboarders perform tricks in the heavily branded arena, the Beastie Boys collectively chant, âlisten all of yâall itâs a sabotageâ increasingly loudly, culminating in a distinctive scream by Horovitz. At 1:18, as a snowboarder flies over a Monster-branded ramp, an excerpt from the fourth Beastie Boys song in the video, âLooking Down the Barrel of a Gun,â begins. Between 0:38 and 2:08 of the video, these four Beastie Boys songs provide the only sound in the video.
After a brief shot of the snowboarding competition winners posing with Monster girls and cans of Monster Energy beverages, set to the noise of the cheering crowd, id. at 2:08-2:13, the video transitions to after-party footage. At that point, âMake Some Noiseâ â the fifth Beastie Boys song in the video â begins. Id. at 2:13. The video clips and stills from the after-party prominently display Monster logos on apparel and large video screens mounted on a wall at the venue; DJs and many partygoers hold cans of Monster Energy drink. For a full minute, the video mutes the live music and the crowd, and âMake Some Noiseâ is the sole soundtrack, with one exception: At 2:49, the Beastie Boys sing âmake some noise if youâre with me,â and, with the song still playing in the foreground, the video cuts to a shot of the crowd audibly cheering. Id. at 2:49-2:56. Several seconds later, the music stops while a DJ gives a shout-out to Monster Energy and scratches records on a turntable, id. at 3:10-3:33; âMake Some Noiseâ resumes after that, id. at 3:33.
The Beastie Boysâ song âMake Some Noiseâ continues to play while the credits roll in green-and-grey text. The credits read, in pertinent part:
MUSIC
ALL-ACCESS BEASTIE BOYS MEGA MIX
COURTESY OF Z-TRIP
DOWNLOAD THE LINK FOR FREE AT
ZTRIP.BANDCAMP.COM
Id. at 3:51-3:53. The next screen reads âRIP MCA.â Id. at 3:54-3:58. After that screen slowly fades to black, the video concludes with a Monster Energy can bouncing into a recycling bin sua sponte due to the vibrations of the after-party
On May 9, 2012, Monster posted the video on its website, YouTube channel, and Facebook page. The squib posted on YouTube and cross-posted to Facebook read âBeastie Boys Megamix by Z-Trip. Download âAll-Access A Beastie Boys Me-' gamixâ here: http://ztrip.bandcamp.com.â See Tr. 307, 531, 708, 835, 1119-21, 1124-26, Tr. 1266; PX 135, PX 142, PX 150, PX 200, PX 270. By clicking on that link, viewers could go to Z-Tripâs website and download the Beastie Boys Megamix for free; downloading the Megamix allowed viewers to keep the audio recording of Beastie Boys music on their computers permanently. Tr. 197-98, 306, 715. The video, however, was not downloadable. Tr. 701-02, 716.
Monster also sent press releases to a number of snowboarding magazines and websites. Tr. 1126-29; PX 165, PX 276. The press release included the same language as the YouTube and Facebook posts: âBeastie Boys Megamix by Z-Trip. Download All-Access A Beastie Boys Me-gamixâ here.â PX 276. âDozensâ of websites posted the press release verbatim, including the reference and link to the Beastie Boys Megamix. See, e.g., PX 165, PX 164, PX 276.
b. Statutory Background as to False Endorsement Claims
As originally enacted in 1946, § 43(a) of the Lanham Act read:
Any person who shall affix, apply, or annex, or use in connection with any goods or services, or any container or containers for goods, a false designation of origin, or any false description or representation, including words or other symbols tending falsely to describe or represent the same, and shall cause such goods or services to enter into commerce ... shall be liable to a civil action ... by any person who believes that he is or is likely to be damaged by the use of any such false description or representation.
15 U.S.C. § 1125(a) (1946). This provision had two purposes: âto prevent consumer confusionâ and âto protect âthe synonymous right of a trademark owner to control his productâs reputation.â â Dallas Cowboys Cheerleaders, Inc. v. Pussycat Cinema, Ltd., 604 F.2d 200, 205 (2d Cir.1979) (quoting James Burrough Ltd. v. Sign of the Beefeater, Inc., 540 F.2d 266, 274 (7th Cir.1976)); see also Park âN Fly, Inc. v. Dollar Park and Fly, Inc., 469 U.S. 189, 198, 105 S.Ct. 658, 83 L.Ed.2d 582 (1985) (Lanham Act âprovides national protection of trademarks in order to secure to the owner of the mark the goodwill of his business and to protect the ability of consumers to distinguish among competing producers.â).
The Lanham Actâs legislative history was âconvolutedâ and âinconclusive,â especially with regard to § 43(a). Colligan v. Activities Club of N.Y., Ltd., 442 F.2d 686, 689-90 (2d Cir.1971). Courts initially interpreted the § 43(a) remedy as a âlimited one,â consistent with the Lanham Actâs predecessor, the Trademark Act of 1920. Id. at 690-94. Thus, at first, § 43(a) was used primarily in connection with claims that a business competitor had passed off a trademark as his own or had used a mark so similar that consumers could be confused as to the origin or source of the product or service. See Ethan Horwitz & Benjamin Levi, Fifty Years of the Lanham Act: A Retrospective of Section 43(a), 60 Fordham Intell. Prop. Media & Ent. L.J. 59, 64 (1996); see also Advanced Res. Intâl, Inc. v. Tri-Star Petroleum Co., 4 F.3d 327, 334 (4th Cir.1993) (collecting cases). Paradigmatic § 43(a) cases arose, for example,
In the 1970s and 1980s, courts substantially expanded the range of claims actionable under § 43(a). See J. Thomas McCarthy, Lanharn Act § Jp3(a): The Sleeping Giant is Now Wide Awake, 59 L. & Contemp. Probs. 45, 52 (1996). Courts began applying § 43(a) to infringement of common-law marks (not merely registered trademarks), to trade dress infringement, and to false statements about a competitorâs goods or services. Horwitz & Levi, supra, at 66. Relevant here, courts also began âpermitting Lanham Act claims by plaintiffs who [were] not in commercial competition with the defendantsâ and âgiving a broad interpretation to the concept of a âmark.â â Advanced Res. Intâl, 4 F.3d at 334.
By the 1980s, courts routinely recognized claims of both express and implied false endorsement. Courts found express false endorsement when, for example, âone company had falsely portrayed another as a satisfied customerâ through a fabricated testimonial. Famous Horse Inc. v. 5th Ave. Photo Inc., 624 F.3d 106, 109 (2d Cir.2010) (citing Courtenay Commcâns Corp. v. Hall, 334 F.3d 210, 212 (2d Cir.2003)). False implied endorsement, by contrast, was found when a company or individual had used anotherâs trademark to suggest an association without explicitly stating that a sponsorship or affiliation exists.
A famous example of a false implied endorsement appears in Dallas Cowboys Cheerleaders, Inc. v. Pussycat Cinema, Ltd., in which the Dallas Cowboys Cheerleaders, Inc., sued to prevent the distribution and exhibition of the pornographic film âDebbie Does Dallas.â 604 F.2d at 202. Although defendants (and the film) never expressly stated that the Cowboys Cheerleaders had participated in or approved of the film, the Second Circuit found that the âstriking similarityâ between the Cowboys Cheerleadersâ uniforms and the cheerleading uniforms in the film created a risk of consumer confusion. Id. at 204. Affirming the district courtâs grant of a preliminary injunction, the Second Circuit stated that âthe uniform depicted in âDebbie Does Dallasâ unquestionably brings to mind the Dallas Cowboys Cheerleaders. Indeed, it is hard to believe that anyone who had seen defendantsâ sexually depraved film could ever thereafter disassociate it from plaintiffs cheerleaders.â Id. And, as the Court explained, such an implied association is actionable under § 43(a) because it causes consumer confusion and âhas âa tendency to impugn [plaintiffs services] and injure plaintiffs business reputation.â â Id. at 205 (quoting Coca-Cola Co. v. Gemini Rising, Inc., 346 F.Supp. 1183, 1189 (E.D.N.Y.1972)) (alteration in original).
The line of implied false endorsement cases also came to include cases brought by celebrities whose persona was used to imply a product or corporate endorsement. As the Fourth Circuit has explained, âcourts recognized a § 43(a) injury where the plaintiffs voices, uniforms, likenesses, published words, or names were used in such a way as to deceive the public into believing that they endorsed, sponsored, or approved of defendantâs product.â Advanced Res. Intâl, 4 F.3d at 334 (collecting cases).
A good example is Allen v. National Video, Inc., which involved a magazine advertisement that depicted a Woody Allen look-alike holding a National Video mem
In 1988, Congress enacted the first set of comprehensive amendments to the Lanham Act. See Horwitz & Levi, supra, at 66. As amended, § 43(a) prohibits:
use[ ] in commerce [of] any word, term, name, symbol, or device, or any combination thereof, or any false designation of origin, false or misleading description of fact, or false or misleading representation of fact, which is likely to cause confusion, or to cause mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person[.]
15 U.S.C. § 1125(a). But the twin aims of the law â to protect both consumers and producers â remained the same. As the Senate Report on the amendment to § 43(a) stated, the amendment served âto codify the interpretation it has been given by the courts.â S. Rep. 100-515, at 5603 (1988); see also id. at 5603, 5580 (stating that Senate âexpects the courts to continue to interpret the section,â id. at 5603, and inviting further judicial expansion as new
technologies and ânew avenues for marketsâ emerge, id. at 5580). Courts therefore held that their âprecedents predating the new [statutory] language remain in force.â Bristol-Myers Squibb Co. v. McNeil-P.P.C., Inc., 973 F.2d 1033, 1038 n. 1 (2d Cir.1992); see also, e.g., Waits v. Frito-Lay, Inc., 978 F.2d 1093, 1107 (9th Cir.1992) (â[W]e read the amended language to codify case law interpreting section 43(a) to encompass false endorsement claims.â).
Since the 1988 amendments, courts have continued to recognize claims for implied false endorsement as cognizable under the Lanham Act. See, e.g., Parks v. LaFace Records, 329 F.3d 437, 445-46 (6th Cir. 2003) (collecting cases); EMI Catalogue Pâship v. Hill, Holliday, Connors, Cosmo-pulos Inc., 228 F.3d 56, 63 (2d Cir.2000) (collecting cases). Courts have also âexpanded] the universe of symbols and devices eligible for trademark protectionâ to include a particular sound or color, the title of an artistic work such as a film or song, an entertainerâs distinctive voice or features, and a celebrityâs persona. EMI Catalogue Pâship, 228 F.3d at 62-63. (citing, inter alia, Qualitex Co. v. Jacobson Prods. Co., 514 U.S. 159, 162, 115 S.Ct. 1300, 131 L.Ed.2d 248 (1995)). Thus, for example, § 43(a) claims have been found viable when Oldsmobile cited a basketball starâs former name and accolades in a television commercial, see Abdul-Jabbar v. Gen. Motors Corp., 85 F.3d 407, 409, 413 (9th Cir.1996), and when Doritos used an imitation of a renowned musicianâs voice to tout its corn chips, see Waits, 978 F.2d at 1110-11.
Section 43(a)âs reach has been limited, however, by two considerations. First, courts must construe the Lanham Act narrowly where necessary to avoid conflict with the First Amendment right to artistic expression. See, e.g., Rogers v.
Second, courts have hesitated to extend the Lanham Act to areas where its use would merely duplicate coverage provided by copyright law. See Oliveira v. Frito-Lay, Inc., 251 F.3d 56, 63 (2d Cir.2001); see also, Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23, 34, 123 S.Ct. 2041, 156 L.Ed.2d 18 (2003) (â[I]n construing the Lanham Act, we have been âcareful to caution against misuse or over-extensionâ of trademark and related protections into areas traditionally occupied by patent or copyright.â) (citation omitted). On this ground, courts have rejected false endorsement claims based, exclusively, on an infringing use of a copyrighted song.
(C.D.Cal.2010).
c. Legal Standards as to False Endorsement Claims
As noted, the current iteration of § 43(a) prohibits the use of a protected mark in a way that is likely to confuse or deceive consumers âas to the affiliation, connection, or associationâ of plaintiff and defendant or âas to the origin, sponsorship, or approval of [defendantâs] goods.â 15 U.S.C. § 1125(a). In recent years, courts in this District have found viable false endorsement claims where, for example, t-shirts bore a celebrityâs name and likeness, Bruce Lee Enter., LLC v. A.V.E.L.A., Inc., No. 10 Civ. 2333(KMW), 2013 WL 822173, at *19-22 (S.D.N.Y. Mar. 6, 2013), a websiteâs masthead included an image of a celebrity, Jackson v. Odenat, 9 F.Supp.3d 342, 361 (S.D.N.Y.2014), and an advertisement featured an M & M character dressed in a celebrityâs signature costume, Burck v. Mars, Inc., 571 F.Supp.2d 446, 455-56 (S.D.N.Y.2008).
Courts âhave not established a uniform test for false endorsement under the Lanham Act.â Barbara A. Solomon, Can the Lanham Act Protect Tiger Woods? An Analysis of Whether the Lanham Act Is A Proper Substitute for A Federal Right of Publicity, 94 Trademark Rep. 1202, 1214 (2004) (comparing test used by the Third Circuit with that used by the Second, Sixth, and Ninth Circuits). To prevail on a false endorsement claim in the Second Circuit, a plaintiff must prove that âthe defendant, (1) made a false or misleading representation of fact; (2) in commerce; (3) in connection with goods or services; (4) that is likely to cause consumer confusion as to the origin, sponsorship, or approval of the goods or services.â Burck, 571 F.Supp.2d at 455; see also, e.g., CourtAlert.com, Inc. v. e-Law, LLC, No.
The second and third elements were (and are) not disputed. See Tr. 1615; Monster Br. 7-15. Accordingly, to find liability, the jury had to make two determinations: first, that the video contained a false or misleading representation of fact â ie., that it misleadingly implied that the Beastie Boys had endorsed Monster, when in fact it had not; and second, that consumers were likely to be confused by this false or misleading representation.
d. Was There a False or Misleading Representation of Fact?
The Beastie Boys undisputedly never endorsed Monster. The first Lan-ham Act element therefore turned on whether the video implied that the Beastie Boys had done so, because any such implication was necessarily false. On Monsterâs Rule 50 challenge as to the sufficiency of the evidence supporting the juryâs finding of a false endorsement, it is useful to analyze the issue in two steps: Did the video contain an endorsement of Monster?. And if so, is that endorsement fairly attributed to the Beastie Boys?
As to the first question, the answer is plainly yes. Phillips testified that he created the video to promote the Monster brand. Tr. 1159, 1163 (Phillips Dep. 175). And the video relentlessly does just that. It is a four-minute advertisement for Monster. Viewers are inundated with visual references to Monsterâs product, name, and brand. Monsterâs logo and signature green and grey colors are omnipresentâ on the snow, ramps, and rails that comprise the snowboarding course; on banners surrounding the course; on video screens at the after-party; on apparel worn by snowboarders, DJs, and promotional models; and on cans of Monster Energy beverages. In total, the Monster logo appears more than 100 times in the video.
As to the second question, there was ample basis on which a viewer could conclude that the Beastie Boys joined in the videoâs endorsement of Monster. The Beastie Boys are featured as prominently in the video as Monster â where Monster is dominantly featured pictorially, the Beast-ie Boys are dominantly featured aurally. The Beastie Boysâ music fills almost all of the video. It contains a total of 53 seconds of âPass the Mic,â 12 seconds of âSo What-cha Want,â 13 seconds of âSabotage,â 51 seconds of âLooking Down the Barrel of a Gun,â and 86 seconds of âMake Some Noise.â Tr. 332 (Ricigliano). These are among the Beastie Boysâ most famous songs. Tr. 117 (Horovitz).
Further, the video repeatedly juxtaposes the Beastie Boysâ music with Monster logos, in a way that naturally suggests association. The first thing viewers see is a full-screen Monster logo; the next thing viewers hear is Horovitz singing âIâm the A-D-R-O-C-K,â referring to his stage name. Video at 0:01-0:04. The Beastie Boys song, âPass the Mic,â plays as the video displays Monsterâs promotional models showing off the strategically placed Monster logos on their revealing outfits. Id. at 0:38-0:41. While snowboarders with Monster stickers on their helmets and boards zoom over ramps emblazoned with Monster logos on a course populated by Monster banners, the Beastie Boys chant, âlisten all of yâall itâs a sabotageâ â a recognizable line from one of the bandâs most popular songs. Id. at 1:05-1:18. And, as the video depicts, when the Beastie Boys sing âmake some noise if youâre with me,â the after-party crowd readily complies. Id. at 2:49-2:56.
In addition, the video contains two textual references to the Beastie Boys, both in Monsterâs green and grey colors. As noted, the credits read, in relevant part:
MUSIC
ALL-ACCESS BEASTIE BOYS MEGA MIX
COURTESY OF Z-TRIP
DOWNLOAD THE LINK FOR FREE AT
ZTRIP.BANDCAMP.COM
Id. at 3:51-3:53. The next screen reads âRIP MCAâ and slowly fades to black. Id. at 3:54-3:58.
Finally, in disseminating the video, Monster continued to draw attention to the Beastie Boys. The companyâs description of the video as posted on its website, YouTube channel, and Facebook page, began with a reference to âBeastie Boys Mega-mix by Z-Trip. Download âAll-Access A Beastie Boys Megamixâ here: http://ztrip. bandcamp.com.â PX 135, PX 150, PX 200, PX 270. The press release Monster sent to snowboarding magazines and websites contained the same language. PX 165; see also, e.g., PX 164, PX 276. Finally, a visitor to YouTube, Facebook, or Monsterâs website who clicked on the link to the Megamix would find himself or herself on Z-Tripâs website, able to download the Beastie Boys Megamix for free, Tr. 197-98, 306, 715, apparently compliments of Monster. Indeed, a Monster employee acknowledged that this circumstance connoted sponsorship of Monster by the Beastie Boys. See PX 175 (email from Hartsfield to Nichols acknowledging that âthe fact we used the song and provided a link to download for free makes it look more like we are sponsoring themâ).
In light of this evidence, a jury could easily conclude that Monster used the Beastie Boys persona to suggest, misleadingly, that the band was endorsing Monster Energy. The ubiquity of the bandâs music âunquestionably br[ought] to mindâ the Beastie Boys, and the use of the names âBeastie Boysâ and âMCAâ in the credits drove the point home. Dallas Cowboys Cheerleaders, 604 F.2d at 205. It is, in sum, âhard to believe that anyone who had seen defendantâs video] could ever thereafter disassociate it from plaintiffsâ music].â Id.
There was, therefore, sufficient evidence to establish this element of the Beastie Boysâ false endorsement claim. And Monster, tellingly, does not argue that, were the video viewed as a whole, a consumer would not be left with the impression that the Beastie Boys had endorsed Monster and its products. Instead, Monster primarily argues that, as a matter of law, in determining whether the video constituted
Monsterâs argument is unpersuasive, for several reasons.
First, this argument should have been made at the time the Court, with counselâs input, formulated instructions as to the facts that the jury could properly consider in deciding the Lanham Act claim. At the charge conference, the Court invited counsel âto comment on each page [of the draft jury instructions] on which you have an issue.â Tr. 1241. Although Monster raised other issues, see, e.g., Tr. 1250-52, it did not object to the proposed instructions or seek an instruction excluding the five Beastie Boys songs used in the video from the evidence the jury could consider in determining if there had been a false endorsement. See Tr. 1241-63, 1383-85, 1390-92, 1500-07. To the contrary, in discussing Monsterâs request for an instruction on nominative fair use, the Court had the following exchange with Monsterâs counsel:
THE COURT: [A]s I understand the false endorsement claim, it is really based on three things. First and foremost, itâs based on the fact of the music being used, second, itâs based on the MCA reference; and third â and this is the only part that your instruction goes to â it would be the fact that the Beastie Boys are referenced in the title of the Megamix. And so to the extent that youâre seeking this instruction, it goes only to defend as against that third part, correct?
MR. KAHN: Thatâs correct.
Tr. 1502 (emphasis added). To the extent Monsterâs present argument implicitly challenges the jury instructions given at trial, it is waived.
Second, to the extent Monster seeks judgment as a matter of law on this theory, the argument also was waived. A party may move for judgment as a matter of law âat any time before the case is submitted to the jury.â Fed.R.Civ.P. 50(a). After an unfavorable verdict, the party may ârenew[]â its motion. Fed. R.Civ.P. 50(b). The renewed motion, however, is âlimited only to the grounds specifically raised in the prior motion for judgment as a matter of law; new grounds may not be added post-trial.â AIG Global Sec. Lending Corp. v. Banc of Am. Sec., LLC, 386 Fed.Appx. 5, 6 (2d Cir.2010) (summary order) (citing Tolbert v. Queens Coll., 242 F.3d 58, 70 (2d Cir.2001)). Rule
In arguing that it satisfactorily raised this issue, Monster relies on a three-sentence part of its colloquy with' the Court regarding its Rule 50(a) motion. See Reply Br. 7. Monster there stated: â[H]ere the music ... is subsumed by the copyright law. The music is being licensed, itâs Beastie Boysâ music. Theyâre singing it, theyâre licensing it and that is protected by the copyright.â Tr. 1196 (Kahn). Although hinting at the point, Monster hardly made it with the required specificity. Its counselâs statement might be taken to mean that the Beastie Boys cannot pursue claims for both copyright infringement and trademark infringement. But Monsterâs counsel did not argue that the Beastie Boys music used in Monsterâs video could not properly be considered in determining whether the video constituted a false endorsement. Nor did counsel cite Oliveira v. Frito-Lay, Inc. or, for that matter, any case authority â let alone âthe law and facts that entitle the movant to the judgment.â Fed.R.Civ.P. 50(a)(1). Monster appears instead to have developed its theory of evidentiary insufficiency based on Oliveira only after trial.
Third, and most important, Monsterâs argument fails on the merits. Relying primarily on Oliveira, Monster argues that âa claim based on use of the work is within the exclusive province of copyright law, not trademark law,â Monster Br. 8, and that âSecond Circuit precedent holds that an artistic work itself cannot form the basis of a false endorsement claim,â id. at 7. But this argument misconstrues â it substantially overreads â Oliveira. Oliveira and its progeny do not bar a finding of false endorsement based on the facts here: Monsterâs use, in a single promotional video, of lengthy excerpts from five Beastie Boys songs, a textual reference to the Beastie Boys, and a separate reference to a member of that group (MCA).
Contrary to Monsterâs characterization, the Second Circuit in Oliveira did not treat copyright infringement and false endorsement as inherently incompatible causes of action, such that a successful action pursuing one could never succeed as to the other. Rather, the Court first acknowledged:
The fact that musical compositions are protected by the copyright laws is not incompatible with their also qualifying for protection as trademarks. Graphic designs, of course, may be protected by copyright; that does not make them ineligible for protection as trademarks. The Act defines a âtrademarkâ as including âany word, name, symbol, or device, or any combination thereof used by a person ... to identify and distinguish his or her goods ... from those manufactured or sold by others and to indicate the source of the goods.â 15 U.S.C. § 1127. We can see no reason why a musical composition should be ineligible to serve as a symbol or device to identify a personâs goods or services.
Accordingly, under Oliveira, a single signature song, considered alone, cannot form the basis of a false endorsement claim. See also, e.g., Henley, 733 F.Supp.2d at 1168 (âPlaintiffs cannot maintain a Lanham Act claim based purely on the use of Henleyâs songs.â) (emphasis added). As the Second Circuit explained in Oliveira, this rule is necessary to vindicate the copyright laws. Were suits by the artist for false endorsement permitted based solely on use of the artistâs song, a person who lawfully acquired a license to use this copyrighted work could be chilled from doing so by-fear of a suit brought under the Lanham Act. The facts of Oliveira aptly illustrated the point. Frito-Lay had spent more than $200,000 to acquire, under the copyright laws, a license and synchronization rights from the. record owners of The Girl from Ipanema. 251 F.3d at 58. Gilberto, who had provided lead vocals but had no established proprietary interest in the song, then sued Frito Lay under the Lanham Act for trademark infringement based on a theory of false endorsement. Id. at 58-59. In ruling for Frito-Lay, the Second Circuit explained that allowing Gilbertoâs Lanham Act claim âwould be profoundly disruptive to commerceâ because â[njumerous artists who could assert claims similar to Gilbertoâs would bring suit against entities that had paid bona fide license fees to all known holders of rights.â Id. at 63.
For two reasons, Oliveira does not assist Monster in this lawsuit. First, the Beastie Boys did not base their claim of false endorsement on Monsterâs use of a single Beastie Boys song in an advertisement. Instead, Monsterâs promotional video incorporated a variety of elements referencing the Beastie Boys â extensive excerpts from not one but five songs, a textual reference to the Beastie Boys, and another reference (âRIP MCAâ) to the well-known stage name of one of the bandâs three members.
At trial, the Beastie Boys contended that the use of these elements, synergis-tically and in combination, associated the band with Monster and its products in the minds of viewers of the video, constituting an endorsement. See Tr. 1641, 1656-57. Although Oliveira precludes an artist from claiming false endorsement based solely on the use of a single song, that decision does not speak to the circumstance in which such use is claimed to be one part of a broader effort to falsely convey an endorsement by the artist of a product or company. And a rule of law that prevented a factfinder from examining the allegedly endorsing advertisement holistically, and artificially required it to excise and ignore the portions of the ad comprised of copyrightable works, would invite abuse. Here, the Beastie Boys argued, the videoâs numerous references to the band (five ex
Second, the policy concern that drove Oliveira does not support Monster here. There, the Second Circuit understandably was concerned about the deterrent effect upon bona fide holders of copyright licenses to perform musical works if performance of such a work were held sufficient to support a Lanham Act claim of a falsely implied endorsement. But that concern is not present where, as here, the Lanham Act defendant did not hold (or claim to hold) a copyright license and in fact conceded copyright infringement. Holding such a defendant liable for false endorsement based on an advertisement that exploited (among other things) an artistâs copyrighted works does not threaten, at all, to âupset[ ] reasonable commercial expectations.â Oliveira, 251 F.3d at 63.
In a final challenge to the juryâs finding of a falsely implied endorsement, Monster argues that the videoâs use of the term âBeastie Boysâ in describing the video was protected under the ânominative fair useâ doctrine, and therefore the jury could not consider it in deciding whether the video implied an endorsement by the band. Specifically, Monster argues that âthere was no other way for Monster to refer to Sciaccaâs Megamix than by its proper title.â Monster Br. 11. The Court rejected this argument during trial when Monster requested a jury instruction on nominative fair use. See Tr. 1500-07. Monsterâs par
The doctrine of nominative fair use originated in the Ninth Circuit. See generally New Kids on the Block v. News Am. Pub., Inc., 971 F.2d 302 (9th Cir.1992). The premise of the doctrine is that, in some instances, âthere is no descriptive substituteâ for a trademarked name or term, and so âuse of the trademark does not imply sponsorship or endorsement of the product because the mark is used only to describe the thing.â Id. at 306. Applying this doctrine, the Ninth Circuit found no trademark infringement where a newspaper used the name of a band in a survey that asked readers to identify their favorite band member. Id. at 308-09. Similarly, the First Circuit found no infringement where a news channel used the trademarked term âBoston Marathonâ in reporting on that event. WCVB-TV v. Boston Athletic Assân, 926 F.2d 42, 44-46 (1st Cir.1991). Courts have also applied this principle in commercial contexts. For example, the Ninth Circuit held that an automobile repair shop could not advertise its expertise in repairing Volkswagens without using that trademarked name. See Volkswagenwerk Aktiengesellschaft v. Church, 411 F.2d 350, 352 (9th Cir.1969).
The Second Circuit has not adopted the Ninth Circuitâs formulation of this doctrine. See Tiffany (NJ) Inc. v. eBay Inc., 600 F.3d 93, 102 (2d Cir.2010). But it has recognized that âa defendant may lawfully use a plaintiffs trademark where doing so [1] is necessary to describe the plaintiffs product and [2] does not imply a false affiliation or endorsement by the plaintiff of the defendant.â Id. at 102-03 (numerals added); see also EMI Catalogue Pâship, 228 F.3d 56 at 65 (âWhere a mark incorporates a term that is the only reasonably available means of describing a characteristic of anotherâs goods, the otherâs use of that term in a descriptive sense is usually protected by the fair use doctrine.â).
Neither of these two requirements is satisfied here. First, it was not necessary for Monster to use the Beastie Boys name to describe Z-Tripâs Megamix. The Megamix, which provided the soundtrack for the entire video, was readily identifiable without using the name âBeastie Boys.â As Monster employees suggested in the course of editing the video, the credits could have read music âcourtesy of Z-Trip,â PX 132, or âre-mix provided by ZTrip,â PX 133. And although Monster argues that Phillips added the Beastie Boysâ name to the videoâs credits to satisfy Z-Trip, see Monster Br. 18, the email in which Z-Trip asked Phillips to mention his Megamix in the recap video said nothing of the sort. Z-Trip instead suggested adding â[download the mix for free at http://ztrip. bandcamp.com.â PX 134. In any event, even if Monster had needed to use the Beastie Boys name to identify the videoâs soundtrack in the credits, there was no need for it to include the additional reference to MCA,
Second, for the reasons reviewed above, the use of the Beastie Boysâ name in conjunction may have implied a false affiliation or endorsement, given that the name was accompanied by lengthy excerpts of five of their songs and by a separate reference to MCA. Cf. Chambers, 2003 WL 749422, at *3 (finding false endorsement claim plausible where a website used trademarked names to accurately identify unauthorized MP3s available for consumers to download). This case thus differs from ones in which the use of a trademarked name was done in the course of journalistic reporting. Indeed, Monsterâs own employees testified that Monster had added Beastie Boys music to the montage of the Ruckus event to make the Monster brand âlifestyleâ seem âcool.â See Tr. 1159, 1163 (Phillips Dep. 175), 1278 (Nichols Dep. 19-20, 38-39). Monsterâs use of the Beastie Boysâ trademark therefore did not qualify as nominative fair use, and the jury was entitled to consider it in resolving the endorsement element.
e. Was the Video Likely to Cause Consumer Confusion?
Monster also disputes the sufficiency of the evidence as to the other disputed Lan-ham Act element: whether there was a likelihood of consumer confusion as to the Beastie Boysâ sponsorship or endorsement of Monster and its products. See EMI Catalogue Pâship, 228 F.3d at 62 (âIf consumers believe that the trademark owner sponsors or endorses the use of the challenged mark, the confusion requirement is satisfied.â). To evaluate whether plaintiffs have shown a likelihood of confusion, courts in this Circuit consider the eight factors set out in Polaroid Corp. v. Polarad Elecs. Corp., 287 F.2d 492 (2d Cir.1961). See, e.g., Kelly-Brown v. Winfrey, 717 F.3d 295, 307 (2d Cir.2013) (discussing the Polaroid factors). As the Court instructed the jury, without objection, the Polaroid factors relevant in this case included: â(1) the level of recognition that the Beastie Boys have among purchasers of Monsterâs products; (2) the similarity between the Beastie Boysâ music and names and the music and names used by Monster; (3) any evidence of actual consumer confusion regarding whether the Beastie boys endorsed Monsterâs products; (4) Monsterâs intention in selecting the Beastie Boysâ music and names; and (5) the sophistication of Monsterâs potential customers.â Tr. 1615-16 (citing Polaroid, 287 F.2d at 495).
The Beastie Boys did not offer evidence of actual consumer confusion. See Beastie Br. 16-17. But such evidence was not required: â[A]ctual confusion need not be shown to prevail under the Lanham Act, since actual confusion is very difficult to prove, and the Act requires only a likelihood of confusion as to source.â Lois Sportswear, U.S.A., Inc. v. Levi Strauss & Co., 799 F.2d 867, 875 (2d Cir.1986) (emphasis added). And the other factors, for the most part, supported a finding of likely confusion-
The first factor, familiarity with the Beastie Boys among Monster consumers, strongly supported the verdict. The jury received evidence of Beastie Boysâ long and successful career, see, e.g., Tr. 103-05, 526-28, 869, in which they have won Grammy and MTV awards and performed thousands of concerts at famous venues (e.g., Madison Square Garden) around the world. Tr. 103-105. The evidence showed that the Beastie Boys are particularly popular among young men, Monsterâs target demographic. See Tr. 727-29, 1133 (Phillips Dep. 57-58). For that reason, multiple DJs played Beastie Boys music at the Ruckus in the Rockies after-party, Tr. 457-58, and Hamilton,
The second factor, the similarity between the Beastie Boysâ music and names and the music and names used by Monster, also strongly supports the verdict. The recap video used the Beastie Boysâ actual music and, verbatim, the groupâs name and Yauchâs âMCAâ stage name. See, e.g., Tr. 332-33 (Ricigliano); PX 211.
There also was evidence from which the jury could find that the fourth factor, Monsterâs intention in selecting the Beastie Boysâ music and names, favored the Beastie Boys. Phillips testified that he produced the video, in the form he did, to promote Monsterâs brand. Tr. 1159, 1163 (Phillips Dep. 175). And the construct of the video itself bespoke an intention to liberally draw upon the Beastie Boys music. On those bases, the jury could have reasonably concluded that Monster included the Beastie Boysâ music and names to advance the goal of promoting Monster â âto appropriate the cachet of one product,â the Beastie Boys, âfor another,â Monster. Abdul-Jabbar, 85 F.3d at 413 .(citation omitted); see also, e.g., Jackson, 9 F.Supp.3d at 359 (finding âsufficient evidence for a jury to conclude that this factor weighs in [plaintiffs] favorâ based on defendantâs âknowledge of [plaintiffs] personaâ and use of his trademark without permission).
The fifth factor, the sophistication of Monsterâs consumers, also supported the verdict. Monsterâs expert testified that energy drinks are âan impulse purchase.â Tr. 1434 (Joachimsthaler). As the jury could also appreciate, such beverages are inexpensive, and are unlikely to require extended pre-purchase cerebration. On these bases, the jury could fairly conclude that Monsterâs consumers are relatively unsophisticated and vulnerable to confusion. See Starbucks Corp. v. Wolfeâs Borough Coffee, Inc., No. 01 Civ. 5981(LTS), 2004 WL 2158120, at *7 (S.D.N.Y. Sept. 28, 2004) (citation omitted) (âThe expense of the products, the manner and market conditions in which the products are purchased,- and whether purchasers may be subject to impulse ĂĄre relevant in determining the sophistication of the buyers.â); see also Natural. White, Inc. v. Dentorium Prods. Co., 210 F,3d 355, 356 (2d Cir.2000) (summary order) (â[C]ongumers are less careful when making small purchases.â). Indeed, the case law recognizes that purchasers of inexpensive snacks are less likely than purchasers of expensive or luxury items to carefully consider alternatives or closely probe marketing gambits. Compare Merit Diamond Corp. v. Suberi Bros., No. 94 Civ. 4572(SHS), 1996 WL 11192, at *9 (S.D.N.Y. Jan. 11, 1996) (purchasers of diamonds likely sophisticated), and Deere & Co. v. MTD Prods.,. Inc., 860 F.Supp. 113, 124 n. 4 (S.D.N.Y.1994) affd, 41 F.3d 39 (2d Cir.1994) (purchasers of lawn tractors likely sophisticated), with Malaca Leaf, AB v. Promotion In Motion, Inc., 287 F.Supp.2d 355, 377 (S.D.N.Y.2003) (purchasers of fish-shaped gummy candies likely not sophisticated), and FunDamental Too, Ltd. v. Gemmy Indus. Corp., 111 F.3d 993, 1004 (2d Cir.1997) (â[P]otential buyers of toilet-shaped coin banks, generally speaking, lack the sophistication to distinguishâ between competing products.).
Considering these factors, and considering the evidence in the light most favorable to the verdict, the jury could have reasonably concluded that the Polaroid factors supported a finding of a likelihood of consumer confusion. Deference to the verdict is particularly appropriate on this issue because â[t]he question of whether
4. Lanham Act â Intentional Deception
Monster, finally, challenges in its Rule 50 motion the juryâs finding of intentionally deceptive conduct by Monster, a finding which authorized the imposition of money damages on the Lanham Act claim.
a. Applicable Legal Standard
Upon a finding of liability for false endorsement under the Lanham Act, a plaintiff may petition for injunctive relief. PPX Enters., Inc. v. Audiofidelity Enters., Inc., 818 F.2d 266, 271 (2d Cir.1987).
The Beastie Boys did not offer evidence of actual consumer confusion. See Tr. 1207-08, Beastie Br. 16-17. Accordingly, the Court instructed the jury that, to obtain money damages on the Lanham Act claim, the Beastie Boys were required to prove that Monster âintended to deceive the public.â Tr. 1616.
As to this issue, unlike with respect to proving willful copyright infringement under the Copyright Act, reckless disregard does not suffice. See, e.g., Reed Constr. Data Inc. v. McGraw-Hill Co., 49 F.Supp.3d 385, 415-16, No. 09 Civ. 8578(JPO), 2014 WL 4746130, at *22 (S.D.N.Y. Sept. 24, 2014). Instead, âa plaintiff must show that the âdefendant adopted [the plaintiffs] mark with the intention of capitalizing on [the] plaintiffs reputation and goodwill and any confusion between his and the [defendantâs] product.â â Borghese Trademarks Inc. v. Borghese, No. 10 Civ. 5552(JPO)(AJP), 2013 WL 143807, at *11 (S.D.N.Y. Jan. 14, 2013) (quoting Cadbury Beverages, Inc. v. Cott Corp., 73 F.3d 474, 482-83 (2d Cir.1996)) (first and second alterations in original).
âOnce it is shown that a defendant deliberately engaged in a deceptive commercial practice, ... a powerful inference may be drawn that the defendant has succeeded in confusing the public.â Res. Developers, Inc., 926 F.2d at 140. The burden then âshifts to the defendant to demonstrate the absence of consumer confusion.â Id.
b. Analysis
In seeking judgment as a matter of law on this point, Monster notes, accurately, that there was no direct evidence at trial of intentional deception by Phillips (or other Monster employees involved with the video). Phillips did not, for example, admit in his testimony that he had acted with intent to deceive consumers as to whether the Beastie Boys had endorsed or were otherwise affiliated with Monster. Nor was there contemporaneous evidence (e.g., emails) containing any such admission.
But, as noted, intentional deception can be proven by circumstantial evidence. Here, two firmly established facts supplied a basis on which a jury could infer intentional deception, to wit, that Monster intended to capitalize on the Beastie Boysâ goodwill and reputation and to convey the impression of an endorsement while knowing that the group had not endorsed Monster. First, Phillips, the Monster employee who produced the video, knew â and at trial admitted knowing â that the Beastie Boys had not endorsed Monster. See Tr. 1173 (Phillips Dep. 124). Second, despite knowing this, Phillips constructed a video promoting Monster that for four minutes was suffused with Beastie Boysâ songs (and contained references to the band). See Tr. 1147-48, 1155-56 (Phillips Dep. 106, 111).
Under these circumstances, a jury could reasonably conclude that Phillips intended the natural consequences of his actions. The video he created drew so heavily upon the Beastie Boysâ music (and names) that an objective observer â at least one who knew enough to recognize the five songs as performances by the Beastie Boys of their music â would likely have regarded the Beastie Boys as a co-equal subject of the video, along with Monster. Two of Phillipsâ colleagues at Monster in fact recognized just this â that the video suggested an affiliation between Monster and' the Beastie Boys. See PX 175 (emails between Hartsfield and Nichols stating that âthe use of their name in the description and in the video creating associationâ was âbad,â and âthe fact we used the song and provided a link to download for free makes it
Where the natural implication of the promotional video (i.e., to falsely imply that the Beastie Boys'were backing Monster) was apparent, the lack of direct proof of Phillipsâ deceptive intent was not fatal. See Fort Wayne Books, Inc. v. Indiana, 489 U.S. 46, 84 n. 27, 109 S.Ct. 916, 103 L.Ed.2d 34 (1989) (âFrequently the most probative evidence of intent will be objective evidence of what actually happened rather than evidence describing the subjective state of mind of the actor. For normally the actor is presumed to have intended the natural consequences of his deedsâ) (citation omitted); see also Rice & Hutchins v. Vera Shoe Co., 290 F. 124, 126 (2d Cir.1923) (â[Ajdopting the word âVeraâ in its corporate name, which is an arbitrary selection, the appellee must be held to have intended the natural consequences of its act. It is very likely that appelleeâs shoes would soon become known as âVeraâ shoes, with the resulting confusion.â).
Moreover, aspects of Phillipsâ testimony reinforced the inference that he appreciated the false impression of association with the Beastie Boys that the Monster recap video would create. He testified, for example, that he had created the video to promote Monsterâs âbrand lifestyleâ and âpersonality.â Tr. 1159, 1163 (Phillips Dep. 175). He further testified that he was a fan of the Beastie Boys, grew up listening to their music, and knew that the band was important to his peer group. Tr. 1101, 1145 (Phillips Dep. 111-12). He also admitted that he had been âfairly excitedâ to use the groupâs music in the video, Tr. 1112, and that he had suggested adding the âRIP MCAâ insignia at the end of the video because the Beastie Boys were âheroesâ to and had a âheavy influenceâ on Monsterâs target demographic, Tr. 1147-48 (Phillips Dep. 57-58, 111-12). Further, to the extent that Phillips denied exploiting the Beastie Boysâ name .in the service of his employer, his testimony contained enough contradictory or jarring elements to justify the jury in disregarding such a claim. See supra pp. 440-41.
Based on this testimony, the jury could have inferred that Phillips, acting on behalf of Monster, used the Beastie Boysâ music and marks âwith the intention of capitalizing on [its] reputation and goodwill and [on] any confusionâ that resulted. Nora Beverages, Inc. v. Perrier Grp. of Am., Inc., 269 F.3d 114, 124 (2d Cir.2001) (quoting Lang v. Ret. Living Pub. Co., 949 F.2d 576, 583 (2d Cir.1991)). To be sure, Monsterâs counsel forcefully argued the opposite to the jury, see, e.g., Tr. 1680-81, and, on the trial evidence, the jury could well have accepted Monsterâs argument that no endorsement was intended. A verdict for either side on this point had an anchor in the evidence. But on a motion for judgment as a matter of law, the Court
Once the jury found that Monsterâs employee, Phillips, intended to deceive the public, a presumption arose that Monsterâs conduct led to actual consumer confusion. See Res. Developers, 926 F.2d at 140. The burden then shifted to Monster to establish a lack of actual confusion. Id. Monster did not attempt to rebut this presumption. Accordingly, because the evidence permitted the jury to infer intentional deceptiveness on the part of Phillips and thereby Monster, the jury was entitled to find for the Beastie Boys on this issue.
B. Monsterâs Rule 59 Motion
The burden for granting a new trial under Rule 59 is lighter than that for granting judgment as a matter of law under Rule 50. United States v. Landau, 155 F.3d 93, 104 (2d Cir.1998). In resolving a Rule 59 motion, a court âmay weigh the evidence and the credibility of witnesses and need not view the evidence in the light most favorable to the verdict winner.â Raedle, 670 F.3d at 418. A court may grant a new trial âeven if there is substantial evidence to support the juryâs verdict.â Garuolo v. John Crane, Inc., 226 F.3d 46, 54 (2d Cir.2000) (citation omitted). In general, however, a court should not grant a new trial unless âthe jury has reached a seriously erroneous result or the verdict is a miscarriage of justice.â Carrion v. Agfa Constr., Inc., 720 F.3d 382; 387 (2d Cir.2013) (citation and internal quotation marks omitted).
1. Copyright Act
The Court declines to grant a new trial on the Copyright Act claims for two reasons. First, although the Court is not required to âview the evidence in the light most favorable to the verdict winnerâ in resolving a motion for a new trial, Raedle, 670 F.3d at 418, the juryâs credibility determinations still merit a âhigh degree of deference,â ING Global, 757 F.3d at 98. Here, the critical disputed issue was whether Monsterâs infringement was willful â Monster had conceded the fact of infringement â and Monsterâs defense on that point turned significantly on Phillipsâ testimony. The verdict suggests that the jury rejected Phillipsâ claim that Z-Trip had granted permission for Monster to use the Beastie Boysâ music in its promotional video, and that it credited Z-Tripâs testimony on that point. That judgment was reasonable. The Court declines to disturb it.
More broadly, there is no injustice in holding Monster accountable for recklessly disregarding the Beastie Boysâ copyright interests. For the reasons reviewed earlier, the record contained an ample basis on which to find that Phillips and Nichols, Monsterâs employees and agents, each acted with such disregard. Beyond that, the record strongly supported the conclusion that Monsterâs infringement of the Beastie Boysâ copyrights derived from a gross lack of attention at the corporate level to other entitiesâ intellectual property rights. Monster had no comprehensive music licensing policy; it tasked unqualified and untrained employees with the job of creating and disseminating promotional recap videos that presented a goodly risk of trenching on othersâ rights; and it protected its own intellectual property interests with far
2. Lanham Act
The Court also declines to grant a new trial on the Lanham Act claim. Monsterâs exploitation of the Beastie Boysâ music and marks associated the Beastie Boys with Monster Energy âin such a way that consumers [were] likely to' be misled about the celebrityâs sponsorship or approval of the product.â ETW Corp., 332 F.3d at 925-26. Indeed, if an ordinary viewer familiar with the Beastie Boysâ music were asked to watch the video once and were then asked what it was about, the viewer would almost certainly list two things â Monster and the Beastie Boys. After viewing the video, it is difficult to disassociate the two. See Dallas Cowboys Cheerleaders, 604 F.2d at 205. In the Courtâs view, the juryâs finding that the video gave rise to the false impression that the Beastie Boys endorsed Monster was clearly correct.
The juryâs finding that Monsterâs deceptiveness was intentional, thereby entitling the Beastie Boys to money damages on this claim, presented a much closer question. The jury could have fairly resolved it either way. But in the Courtâs judgment, on the evidence presented, it is reasonable to infer that Phillips â and other Monster employees who viewed the video knowing that the Beastie Boys had not endorsed the company â appreciated that the video would give rise to just that false association in viewersâ minds. There is no injustice in the juryâs verdict that Monster, through its employees, published the video appreciating that it would mislead consumers into believing that the Beastie Boys endorsed Monster. As to its Lanham Act verdict, too, the juryâs verdict was neither âseriously erroneousâ nor a âmiscarriage of justice,â Carrion, 720 F.3d at 387, and the Court declines to disturb it.
Finally, as to all claims, Monster received a thoroughly fair trial. It, like the Beastie Boys, had the benefit of excellent legal representation. Counsel vigorously litigated the case, both pretrial and at trial, and assured that the jury was presented with all relevant evidence and all fair inferences from that evidence. The jury acted within fair bounds in returning the verdict that it did. A retrial would serve only to give Monster an undeserved second bite at the apple.
C. Reduction in Damages
Monster, finally, asks the Court to reduce the damages award on both claims. Once liability has been established, the â âcalculation of damages is the province of the jury.â â Zeno v. Pine Plains Cent. Sch. Dist., 702 F.3d 655, 671 (2d Cir.2012) (quoting Ismail v. Cohen, 899 F.2d 183, 186 (2d Cir.1990)). The Court âmay set aside a juryâs award only if it is âso high as to shock the judicial conscience and constitute a denial of justice.â â Id. (quoting Manganiello v. City of New York, 612 F.3d 149, 168 (2d Cir.2010)). In reviewing a motion for remittitur, the Court âexamine[s] awards in similar casesâ to âdetermine whether the award is âwithin [a] reasonable range,â â Kuper v. Empire Blue Cross & Blue Shield, No. 99 Civ. 1190, 2003 WL 359462, at *2 (S.D.N.Y. Feb. 18, 2003) (quoting Ismail, 899 F.2d at 187), or âwhether the juryâs award is so excessive that the Court should intrude on its prerogative to set damages,â Agence France Presse, 2014 WL 3963124, at *15.
As noted, the Copyright Act authorizes a prevailing plaintiff to elect to recover the higher of statutory and actual damages. 17 U.S.C. § 504(c)(1). The Court declines to reduce the juryâs award as to either category of damages, because the damages awarded here â $1 million in actual damages and $1.2 million in statutory damages â were both consistent with the trial evidence.
As to actual damages, the Court instructed the jury, without objection, that âactual damages means the amount of money adequate to compensate the copyright owner for the fair market value of a defendantâs infringing use.â Tr. 1609 (citing On Davis v. The Gap, Inc., 246 F.3d 152, 166 (2d Cir.2001)). The Beastie Boysâ damages expert, Thomas, opined that the market value of the licenses was $100,000 per song, per side for each of the five songs, a total of $1 million. Tr. 549-50. In reaching this figure, Thomas considered the amounts actually paid to the Beastie Boys for other licenses; the ways in which the unusual forum presented by Monsterâs video compared and contrasted to other fora in which the Beastie Boys had licensed their works; and the five-week term of use that the Court directed the partiesâ respective experts to assume. Tr. 549-50; see also Dkt. 89, reported as Beastie Boys v. Monster Energy Co., No. 12 Civ. 6065(PAE), 2014 WL 888235, at *3 (S.D.N.Y. Mar. 6, 2014) (â[D]amages stemming from the Video must be based on its actual period of availability on YouTube, which the parties have stated is approximately five weeks.â).
Monster here argues that âThomasâ testimony was so riddled with contradictions as to be unhelpful to the jury.â Monster Br. 25. It is true that Thomas, who was testifying for the first time, was not a model witness. As Monster notes, there were contradictions in her testimony, and she struggled in particular in responding to hypothetieals and assumed facts. But her assessment of damages was within the realm of reason, particularly given the idiosyncratic nature of the license she was asked to assume (to use five iconic musical compositions and sound recordings, at length, in a four-minute promotional video published in various web fora), and it was anchored in prices actually paid for past licenses to play the Beastie Boysâ music. The jury was permitted to accept Thomasâs testimony if, on balance, the jury found it credible, see Reeves, 530 U.S. at 151, 120 S.Ct. 2097, and in the Courtâs estimation, the jury reasonably could have done so.
Further, the Beastie Boysâ extensive licensing history was received in evidence, and it both corroborated Thomasâs opinion and supplied data that would have permitted the jury, on its own, to reasonably calculate damages as it did. See PX 219, PX 220. For example, the Beastie Boys received $125,000 for use of a song in a 30-second trailer for the film The Hangover Part II. PX 219, at 5. Accepting $125,000 as the fair market value for ĂĄ license to use 30 seconds of a single Beastie Boys
As to statutory damages, the Court instructed the jury, again without objection, that it could award âbetween $750 and $150,000 for each of the 10 works infringedâ if it found that Monsterâs conduct was willful. Tr. 1612 (citing 17 U.S.C. §§ 504(c)(l)-(2)). The Court further instructed the jury that, in evaluating willfulness, it could consider factors including âMonsterâs state of mindâ; âthe expenses saved, and profits earned, if any, by Monster in connection with the infringementâ; âthe deterrent effect of such an award on
Monster and third partiesâ; âwhether Monster cooperated in providing evidence concerning the value of the infringing materialâ; âthe revenue lost by the plaintiffs, if any, as a result of the infringementâ; and âthe conduct and attitude of the parties.â Tr. 1613 (citing Psihoyos v. Wiley, 748 F.3d 120, 127 (2d Cir.2014)). Applying these factors is necessarily a subjective and fact-intensive exercise. The Court declines to second-guess the juryâs assessment, particularly because several factors â including Monsterâs state of mind, and the deterrent effect of such an award on Monster and third parties â can fairly be argued to justify a substantial damages award. See Feltner v. Columbia Pictures Television, Inc., 523 U.S. 340, 355, 118 S.Ct. 1279, 140 L.Ed.2d 438 (1998) (â[T]he Seventh Amendment provides a right to a jury trial on all issues pertinent to an award of statutory damages under § 504(c) of the Copyright Act, including the amount itselfâ).
Also relevant, a comparison with damage awards in other cases bearing some similarity to this one reveals that the award here falls within a reasonable range. See, e.g., Agence France Presse, 2014 WL 3963124, at *16 (upholding juryâs award of $1.2 million in statutory damages for defendantâs unauthorized use of eight photographs); TigerCandy Arts, Inc. v. Blairson Corp., No. 09 CIV. 6215(GBD)(FM), 2012 WL 1948816, at *3 (S.D.N.Y. May 30, 2012) (awarding $1 million in statutory damages for sock-puppet kits that violated nine of plaintiffâs copyrights).
2. Lanham Act
As to Lanham Act damages, the Court instructed the jury, again without objection, that it should fix damages based on âthe market value of the license fee that [the Beastie Boys] were entitled to charge for their endorsement.â Tr. 1617 (citing Waifs, 978 F.2d at 1111). On this point, Thomas opined that the fair market value of the endorsement was $1 million. Tr. 574. Her calculation considered various factors including the âstature and prominence of the artist,â âthe value that they would bringâ to the particular endorsement, the âterritory,â the âdurationâ of the use, and the âmediaâ and âcontextâ of the use. Tr. 551. Here, too, Monsterâs able cross-examination of Thomas gave the jury bases to discount or discredit her opinion, see, e.g., Monster Br. 23-24, but not so much that the jury was precluded from giving her testimony weight, see Reeves, 530 U.S. at 151, 120 S.Ct. 2097, and Thomasâs opinion was not, on its face, unworthy of belief. That the jury awarded $500,000 rather than the $1 million urged by Thomas suggests that the juryâs damages determination was independent and discriminating.
Moreover, as with the Copyright Act claim, the jury could have reached the conclusion that it did on other grounds. The Beastie Boysâ history of music-licensing arrangements revealed ample fees for licenses granted for contexts in which the viewer might perceive an endorsement by the group, including in motion pictures and movie trailers. See PX 219, PX 220. Further, the jury heard testimony that Monster had paid, substantial sums for endorsement deals. For example, Monster paid Slash â the former guitarist for the rock band Guns Nâ Roses â $750,000 for a promotion that included a one-hour performance and the right to use Slashâs name in connection with Monster beverages. Tr. 1060-62 (Pontrelli). The .$500,000 award is also in line with the few comparable reported cases that have resulted in jury verdicts. See, e.g., Waits, 978 F.2d at 1102-06 (affirming jury award of $2,375,000 under state tort law parallel to the Lanham Act for a commercial that imitated singer Tom Waitsâ voice). The Court therefore holds that the damage award does not âshock the conscienceâ and does not warrant remittitur. Zeno, 702 F.3d at 671.
CONCLUSION
For the foregoing reasons, Monsterâs motions pursuant to Rules 50 and 59 are denied. The Clerk of Court is respectfully directed to terminate the motion pending at docket number 168. An order as to next stĂ©ps in the case â and in particular, soliciting information from the parties necessary to complete the final judgment that will close this case â will issue shortly.
SO ORDERED.
. The Beastie Boys are a New York partnership. The other plaintiffs are Michael Diamond, a Beastie Boys member; Adam Horo-vitz, a Beastie Boys member; Dechen Yauch, executrix of the Estate of Adam Yauch, a late Beastie Boys member; and Brooklyn Dust Music, a distinct entity through which the Beastie Boys did business.
. At trial, Monster elicited evidence that in 2011, the Beastie Boys had licensed four songs for use in snowboarding videos produced by Nixon, a watch company. Tr. 137-38, 873-74, 886-88. The group also authorized Nixon to create a watch bearing Diamondâs image. Tr. 125,275, 871. Horovitz and Diamond testified that they had agreed to this use of their songs and Diamondâs image because Nixonâs co-founder was a friend of Diamondâs, Tr. 136, 871, and that they donated the proceeds they earned from the watch sales to charity, Tr. 134, 872-73.
. The video is described in detail, infra pp. 443-45, in the course of the Court's analysis of whether the video conveyed an implied endorsement by the Beastie Boys of Monster and its products.
. The Complaint originally identified only four Beastie Boys songs used in the video: "So Whatcha Want,â "Sabotage,â âLooking Down the Barrel of a Gun,â and "Make Some Noise.â Compl. ¶¶ 70-100. Later, however, a music analyst discovered that the video used an excerpt from a fifth Beastie Boys song, "Pass the Mic.â Dkt. 74, at 3. On March 18, after obtaining leave from the Court, see Dkt. 90, at 6-10, the Beastie Boys filed an Amended Complaint that asserted copyright infringement claims for all five songs used in the video. Dkt. 91, at ¶¶ 33-72. The Amended Complaint also dropped additional claims the original Complaint had asserted under the Copyright Act and New York Civil Rights Law. See Compl. ¶¶ 101-08, 118-22.
. On April 1, 2014, Monster filed an Answer to the Amended Complaint, Dkt. 98, which was substantively identical to the original Answer.
. The Beastie Boys had intended to offer, on their case, excerpts of the deposition testimony of several Monster employees including Phillips. Because Monster planned to call those employees as live witnesses on their case, the Court, to promote efficiency, asked the Beastie Boysâ counsel to offer those excerpts later, at the time they cross-examined those witnesses during the defense case. Counsel agreed to this approach. However, to assure that the Beastie Boys were not prejudiced. by this procedure in connection with the resolution of Monster's Rule 50(a) motion, made at the close of plaintiffs' case, the Court permitted the Beastie Boys to designate, for purposes of that motion, the deposition excerpts that they had planned to offer, and the Beastie Boys did so. See Tr. 909-12. The testimony elicited during examination of Monsterâs employees substantially tracked the designated deposition testimony. Because Monsterâs Rule 50 motion is a renewed mo
. When a single entity owns the copyright to a musical composition and the copyright to a sound recording, the Copyright Act treats those two copyrights as one and permits only one award of statutory damages for that work. See Teevee Toons, Inc. v. MP3.com, 134 F.Supp.2d 546, 548 (S.D.N.Y.2001). But when distinct entities hold the composition and sound recording copyrights to a single song, even if those entities are related, each entity is entitled to an award of statutory damages. See id. Because the Beastie Boys and Brooklyn Dust were distinct entities, Tr. 1240, the jury was permitted to award two sets of statutory damages. The Court, however, invited the jury, in tabulating such damages, to take into account the fact that statutory damages were being awarded to related entities based on two distinct copyright infringements involving the same song. Tr. 1613-14. Counsel all consented to the Courtâs instruction authorizing the jury to consider this factor, among others, in calculating statutory damages. See Tr. 1241-63.
. The jury also found that Monster had acted in bad faith in causing the false endorsement. That finding would be relevant to an award of attorneyâs fees. See Twin Peaks Prods., 996 F.2d at 1383. Pending resolution of Monster's post-trial motions, no such award has yet been sought.
. On October 5, 2014, the Court requested briefing on whether Monster, in its Rule 50(a) motion, preserved its challenge to the jury's verdict on the Copyright Act claims. Dkt. 178. Monster and the Beastie Boys submitted letters on October 8 and October 10, respectively. Dkt. 179, 180. Although Monster made only a brief reference to these claims at the end of its Rule 50(a) colloquy with the Court, see Tr. 1223, the Court holds that the claims were preserved. Considered in the context of the partiesâ preceding colloquies, Monsterâs brief reference to these claims was sufficient to put plaintiffs on notice of the nature of Monsterâs claims of evidentiary insufficiency. See Negron v. Wesolowski, 536 Fed.Appx. 151, 153 (2d Cir.2013) (summary order) (noting that the purpose of Rule 50(a) is " âto alert the opposing party to the supposed deficiencies in her proof â (quoting Galdieri-Ambrosini, 136 F.3d at 287)). Indeed, that the Beastie Boys did not contend in their initial briefing that this issue was waived suggests that Monster's arguments as to Copyright Act willfulness were not a surprise.
. The Court instructed the jury, without objection, that reckless disregard means that a defendant âharbored actual doubts about its right to distribute a video containing the copyrighted music and yet willfully proceeded to do so without investigating further.â Tr. 1611 (citing Agence France Presse, 2014 WL 3963124, at *4).
. In any event, even if Phillipsâ account were credited, nothing was said in his conversation with Z-Trip about the Beastie Boysâ copyrights or to the effect that Z-Trip had legal authority to permit Monster to use the bandâs songs. According to Phillips, he asked Z-Trip only, "Do you have any music that we can use for a recap video?â and Z-Trip and alerted Phillips to the existence of the Megamix. Tr. 1111-12.
. Further undermining Phillipsâ claim, his colloquial email with Z-Trip was a far cry in form and solemnity from the written sponsorship agreement between Monster and a DJ which was the one prior instance that Phillips was aware of in which a DJ had authorized Monster to use the DJâs music. See Tr. 1105-06.
. The evidence established that, despite its frequent use of othersâ copyrighted works, Monster did not have in place a comprehensive music licensing policy. For example, both Hamilton, Monsterâs director of music marketing, and Pontrelli, its global head of marketing, knew that Monster frequently posted event recap videos on its YouTube channel. See Tr. 1007, 1050-51 (Pontrelli), 1360, 1365 (Hamilton). When the content of these videos was created by outside production companies, these companies were responsible, under Monsterâs contracts with them, for securing the rights to music within the videos. Tr. 1012-13 (Pontrelli). But, as Hamilton and Pontrelli each admitted, promotional videos were sometimes produced internally, by Monster employees, see Tr. 1013 (Pontrelli), 1359-61 (Hamilton), and as to such videos, Monster had no policy in place to ensure that music licenses were obtained. See, e.g., Tr. 1134-37 (Phillips), 1371 (Hamilton). Hamilton testified, in fact, that he had concerns about the absence of music clearance procedures for some such videos, Tr. 1371-73, and had warned a sports marketing employee about the need to obtain clearances for sports marketing recap videos that use music. Tr. 1359-61, 1364-65, 1367. The jury could reasonably conclude that it was as a result of Monsterâs blase approach to licensing that each Monster employee who viewed the recap video before it was posted online assumed (or claimed later to have assumed) that someone else had had responsibility for securing music rights. Phillips testified that he relied on his superiors to handle it, Tr. 1140-41; Nichols testified that he had trusted others at Monster, presumably Phillips, Tr. 1280-81. Where, as here, the evidence supports that it was likely only a matter of time before infringement occurred, a finding of reckles.s disregard is merited. See Island Software, 413 F.3d at 263-64 ("A jury could, without doubt,â find reckless disregard where defendant had a " 'casual' response to claims of counterfeitingâ and "did not take extensive measures to prevent the receipt and sale of high-quality counterfeit merchandise.â).
. This issue has arisen recently in the context of the campaign use by political candidates of songs as to which they have received licenses from performing-rights organizations, but as to which they have not received permission for such use from the artist. Scholars have argued for an amendment to, or a construction of, the Lanham Act, to allow the artist to sue the candidate for false endorsement in these circumstances. See Michelle Lin, Keep on Rockinâ in the Free World: Trademark Remedies for Musicians, 93 J. Pat. & Trademark Off. Soc'y 98 (2011); Kimber-lianne PodĂas, I Do Not Endorse This Message! Does a Political Campaignâs Unauthorized Use of a Song Infringe on the Rights of the Musical Performer?, 24 Fordham Intell. Prop. Media & Ent. L.J. 1 (2013); John Tehranian, Guantanamoâs Greatest Hits: The Semiotics of Sound and the Protection of Performer Rights Under the Lanham Act, 16 Vand. J. Ent. & Tech. L. 11 (2013).
. An analogy is illustrative: Had Phillips chosen as the videoâs soundtrack songs by The Beatles that were comparably prominent within that bandâs body of work, he might have chosen "Love Me Do,â "Yesterday,â "Let It Be,â "Here, There and Everywhere,â and "Hey Jude.â
. Under Rule 51, a party must âarticulate and lodge their objections to jury charges before they are delivered so that âthe trial court [will have] an opportunity to cure any defects in the instructions before sending the jury to deliberate.' " ING Global v. United Parcel Serv. Oasis Supply Corp., 757 F.3d 92, 97 (2d Cir.2014) (quoting Jacques v. DiMarzio, Inc., 386 F.3d 192, 200 (2d Cir.2004)) (alteration in original). Any objection must be made "on the record, stating distinctly the matter objected to and the grounds for the objection.ââ Fed.R.Civ.P. 51(c)(1). By failing to do so, Monster waived any argument challenging this portion of the jury instructions, at least absent "plain error.â Rasanen v. Doe, 723 F.3d 325, 332-33 & n. 2 (2d Cir.2013). As discussed below, the instructions were not error, let alone "plain error.â
. To be sure, the Court "may reach the waived issue if to ignore it would result in manifest injustice,â or if it reflects a "purely legal error.â Fabri v. United Techs. Int'l, Inc., 387 F.3d 109, 119 (2d Cir.2004). But Monster has not argued that either of these exceptions applies here, and, for the reasons discussed infra, they do not.
. Dastar Corp. v. Twentieth Century Fox Film Coip. is similarly inapt. There, the- Supreme Court held that the unauthorized use of a copyrightable television series, considered alone, cannot support a reverse "passing-offâ claim under § 43(a). 539 U.S. at 37-38, 123 S.Ct. 2041. Dastar does not address whether a defendant's unauthorized use of copyrighted works, when occurring in conjunction with the defendantâs unauthorized use of protected marks, can support a § 43(a) claim of an implied endorsement.
. Even if the videoâs use of the Beastie Boysâ performance of their five copyrighted songs was barred from its consideration, a jury conceivably could have reached the same verdict based on the video's use of the bandâs and MCA's names. See, e.g., Abdul-Jabhar, 85 F.3d at 413 (jury could reasonably find false endorsement based on a car companyâs reference to basketball starâs former name and accolades in a commercial); Chambers v. Time Warner, No. 00 Civ. 2839(JSR), 2003 WL 749422, at *3 (S.D.N.Y. Mar. 5, 2003) (finding a false endorsement claim plausible based on the use of trademarked names on a website). The Court, of course, can do no more than speculate as to the bases of the juryâs verdict. It is, however, notable that plaintiffs' damages expert, Thomas, opined that damages on the Lanham Act claim were $1 million, of which Thomas attributed $500,-000-$600,000 to the use of the Beastie Boysâ music, and the balance to the use of the Beastie Boys' names. See Tr. 802-03. The jury â which had been instructed that in determining Lanham Act damages it could take into account any overlap with copyright damages, Tr. 1618 â awarded plaintiffs $500,000 on the Lanham Act claim. Conceivably, the jury could have arrived at this $500,000 award by attributing that sum to the videoâs use of the band's and MCAâs trademarked names.
. Monster argued to the jury that its reference to MCA was intended and would be understood as an homage to the recently deceased Yauch and that the jury therefore should not consider it in determining whether the video constituted an endorsement. See Monster Br. 11-12, 18-20. The jury was free to accept or reject that argument.
. At argument, Monster has acknowledged that, if the Lanham Act verdict stands, injunctive relief is appropriate. See Oral Arg. Tr. 28-29.
. As the Court noted in a pretrial decision, judges in this District have reached different conclusions as to whether Congressâ 1999 amendments to the Lanham Act abrogated the Second Circuitâs rule governing Lanham Act damages. Dkt. 90, reported as Beastie Boys v. Monster Energy Co., 983 F.Supp.2d 354, 366 (S.D.N.Y.2014) (collecting cases). For the reasons given there, the Court held that this Circuit's rule survived the 1999 Amendments. Id. at 366-67; see also, e.g., GMA Accessories, Inc. v. BOP, LLC, 765 F.Supp.2d 457, 469-71 (S.D.N.Y.2011) aff'd sub nom. GMA Accessories, Inc. v. Elec. Wonderland, Inc., 558 Fed.Appx. 116 (2d Cir.2014) (summary order).
.Monster now argues that, to find intentionally deceptive conduct, the jury was obliged to separately find that this conduct was "egregious.â Monster Br. 16; Reply Br. 1. That is wrong. The Second Circuit has indeed stated that "[g]iven the 'egregious natureâ of deliberate conduct, 'we see no need to require [plaintiff] to provide consumer surveys or reaction tests in order to prove entitlement to damages.â â Res. Developers, Inc. v. Statue of Lib
. Relitigating a claim it pressed before the jury, Monster argues that Phillips included the textual reference to the "Beastie Boysâ in the video because Z-Trip asked him to do so, not out of intent to deceive consumers. Monster Br. 18. For two reasons, this argument fails. First, as noted, Z-Trip did not ask Phillips to add the words "Beastie Boysâ to the video; rather, Z-Trip suggested that Phillips add the phrase "[d]ownload the mix for free at http://ztrip.bandcamp.com,â PX 134, and Phillips went beyond that request, adding the words "Beastie Boys.â See supra pp. 438-39, 455-56. Second, the two purposes (placating Z-Trip and promoting the video by heightening the association between Monster and the Beastie Boys) are not mutually exclusive. Even if Phillips was prompted to act by a desire to please Z-Trip, he nevertheless could also have appreciated that referring to the Beastie Boys would enhance the association between Monster and the band.
. Before trial, Monster moved to preclude Thomasâs testimony as unreliable under Daubert v. Merrell Dow Pharm., 509 U.S. 579, 113 S.Ct. 2786, 125 L.Ed.2d 469 (1993). Dkt. 66-68. Although the Court denied the motion, it agreed with Monster in one respect: To be relevant and reliable in this case, Thomasâs testimony had to base the fair market value of a license on a five-week term of use, not the perpetual term of use assumed in Thomasâ initial expert report. See Dkt. 89, reported as Beastie Boys, 2014 WL 888235, at *3. The Court therefore directed Thomas to revise her expert report to take account of that assumption.
. $125,000 is a representative figure. For other movie trailers, the Beastie Boys have received between $88,000 (for use of a song they co-wrote in a trailer for I Love You, Man), PX 220 at 9; and $800,000 (for 30 seconds of "visual vocalsâ in a trailer for Hancock), id. at 11; Tr. 261. The Beastie Boys also rejected an offer of $500,000 to use 60 seconds of the song "Sabotageâ in a trailer for an Arnold Schwarzenegger thriller of the same name. PX 206; Tr. 866-67.
. Monster cites only one case in which a Court reduced an award of statutory damages under the Copyright Act, Home Box Office v. Champs of New Haven, Inc., 837 F.Supp. 480 (D.Conn.1993). There, defendant sought re