Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 1 of 71 Page ID #:1
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`
`CHRISTINE LEPERA (pro hac vice application to be submitted)
`ctl@msk.com
`JEFFREY M. MOVIT (pro hac vice application to be submitted)
`jmm@msk.com
`LEO M. LICHTMAN (SBN 335779)
`lml@msk.com
`MITCHELL SILBERBERG & KNUPP LLP
`437 Madison Ave., 25th Floor
`New York, New York 10022-7001
`Telephone: (212) 509-3900
`Facsimile: (212) 509-7239
`
`DAVID A. STEINBERG (SBN 130593)
`das@msk.com
`ALEXANDRA ANFUSO (SBN 333440)
`ala@msk.com
`MITCHELL SILBERBERG & KNUPP LLP
`2049 Century Park East, 18th Floor
`Los Angeles, CA 90067-3120
`Telephone: (310) 312-2000
`Facsimile: (310) 312-3100
`Attorneys for Plaintiffs
`
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`WESTERN DIVISION
`ABKCO MUSIC, INC.; BIG MACHINE
` CASE NO.
`MUSIC, LLC; BOOSEY & HAWKES,
`COMPLAINT FOR DIRECT
`INC.; CHERIO CORPORATION;
`COPYRIGHT INFRINGEMENT,
`CONCORD MUSIC PUBLISHING LLC,;
`CONTRIBUTORY COPYRIGHT
`CONCORD MUSIC GROUP, INC.;
`INFRINGEMENT, AND
`DOWNTOWN MUSIC PUBLISHING
`VICARIOUS COPYRIGHT
`LLC; HIPGNOSIS SFH I LIMITED;
`INFRINGEMENT
`HIPGNOSIS SONGS GROUP, LLC;
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`KOBALT MUSIC PUBLISHING
`DEMAND FOR JURY TRIAL
`AMERICA, INC.; MPL
`COMMUNICATIONS, INC.; MPL MUSIC
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`PUBLISHING, INC.; PANTHER MUSIC
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`CORP.; PEER INTERNATIONAL
`CORPORATION; PEERMUSIC LTD.;
`PEERMUSIC III, LTD.; POLYGRAM
`PUBLISHING, INC.; RODGERS &
`HAMMERSTEIN HOLDINGS LLC;
`PULSE 2.0, LLC; RESERVOIR MEDIA
`MANAGEMENT, INC.; SONGS OF
`PEER, LTD.; SONGS OF UNIVERSAL,
`INC.; SOUTHERN MUSIC PUBLISHING
`CO., INC.; SPIRIT MUSIC HOLDINGS,
`INC.; UNIVERSAL MUSIC – MGB NA
`LLC; UNIVERSAL MUSIC – Z TUNES
`LLC; UNIVERSAL MUSIC CORP.;
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`Mitchell
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 2 of 71 Page ID #:2
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`UNIVERSAL MUSIC PUBLISHING,
`INC.; UNIVERSAL MUSICA, INC.,
`Plaintiffs,
`
`v.
`ROBLOX CORPORATION,
`Defendant.
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`Plaintiffs ABKCO Music Inc., Big Machine Music, LLC, Boosey &
`Hawkes, Inc., Cherio Corporation, Concord Music Publishing LLC, Concord
`Music Group, Inc., Downtown Music Publishing LLC, Hipgnosis SFH I Limited,
`Hipgnosis Songs Group, LLC, Kobalt Music Publishing America, Inc., MPL
`Communications, Inc., MPL Music Publishing, Inc., Panther Music Corp., Peer
`International Corporation, Peermusic Ltd., Peermusic III, Ltd., Polygram
`Publishing, Inc., Rodgers & Hammerstein Holdings LLC, Pulse 2.0, LLC,
`Reservoir Media Management, Inc., Songs of Peer, Ltd., Songs of Universal, Inc.,
`Southern Music Publishing Co., Inc., Spirit Music Holdings, Inc., Universal Music
`– MGB NA LLC, Universal Music – Z Tunes LLC, Universal Music Corp.,
`Universal Music Publishing, Inc., and Universal Musica, Inc. (collectively,
`“Plaintiffs”), by their attorneys, for their Complaint against Defendant Roblox
`Corporation (“Roblox”), allege on personal knowledge as to matters relating to
`themselves and on information and belief as to all other matters, as set forth below.
`NATURE OF CASE
`Plaintiffs are major and independent music publishers that create,
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`produce, acquire, license, and otherwise exploit musical compositions, both in the
`United States and internationally. Collectively, Plaintiffs have invested significant
`resources developing, marketing, and licensing countless iconic musical
`compositions and modern hit songs, including, among many others, the music
`catalogs of Imagine Dragons, deadmau5, Ed Sheeran, Ariana Grande, and the
`Rolling Stones. Plaintiffs, on behalf of themselves and their representative
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`

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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 3 of 71 Page ID #:3
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`songwriters, bring this action seeking redress for Roblox’s willful copyright
`infringement.
`Roblox owns and operates an online video game platform and game
`2.
`creation system marketed specifically to young children and teens. A publicly
`traded company valued at over $55 billion, Roblox has built that value on the
`backs of unpaid music creators, flagrantly disregarding its responsibilities under
`copyright law and systematically committing, encouraging, and inducing the
`infringement of copyrighted musical works on a massive scale, which infringement
`Roblox monetizes for substantial profits.
`Roblox purports to create a “safe” online environment for its users,
`3.
`consisting mostly of children under the age of 13.1 In truth, Roblox actively preys
`on its impressionable user base and their desire for popular music, teaching
`children that pirating music is perfectly acceptable.
`Roblox engages in copyright infringement on a massive scale by
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`deliberately creating a centralized synchronization (or “sync”) library of unlicensed
`songs to be distributed, streamed, publicly performed, and incorporated into game
`content. In creating this library, Roblox reproduces each song included therein,
`charging users to upload music to be incorporated into their games. Roblox is fully
`aware that it is required to obtain licenses to exploit copyrighted music on its
`platform, including obtaining necessary reproduction, sync, and public
`performance licenses, but willfully refuses to do so. Roblox is taking for itself
`Plaintiffs’ creative and financial investments without permission and without
`compensation, on a platform that earns revenue only for Roblox and its users.
`Roblox is well aware that its platform is built and thrives on the
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`availability of copyrighted music. As Jon Vlassopulos, Roblox’s global head of
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`1See Sec. & Exchange Comm., Form S-1 Registration Statement of Roblox
`Corporation, p. 21 (Nov. 19, 2020),
`https://www.sec.gov/Archives/edgar/data/1315098/000119312520298230/d87104d
`s1.htm.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`

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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 4 of 71 Page ID #:4
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`music, publicly stated just last year: “We want developers to have great music to
`build games. We want the music to be, not production music, but really great
`[commercial] music.”2 (Alteration in original). To that end, Roblox actively
`encourages its users to upload audio files containing copyrighted music and
`incorporate them into game content on the Roblox platform. Roblox advertises the
`importance of music in games and makes it easy for users to upload, share, and
`stream full-length songs.
`For instance, Roblox develops, sells, and endorses game items such as
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`“Boomboxes” and “Game Passes” that enable users to listen to music in games,
`and which Roblox expressly promotes with taglines such as “Play the hottest jams
`on ROBLOX all over town.” Such items have spawned a cottage industry of third-
`party websites devoted to indexing and compiling the copyrighted music hosted by
`Roblox to facilitate discovery and sharing of “the hottest jams.”
`Critically, Roblox deliberately charges users for, and profits from,
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`every song that a user uploads to Roblox’s unlicensed library. In turn, Roblox
`allows its users the option of advertising and charging others for access to a variety
`of other items, including items specifically developed for playing copyrighted
`music, such as Boomboxes and Game Passes, and games that feature popular
`songs, and takes a commission on every transaction. By utilizing “Robux,” the
`virtual currency that users must purchase from Roblox to upload music, Roblox
`has created a thriving business and economy directly and consciously built on
`infringement. Roblox’s clear goal is to incentivize its users to upload popular hits
`and sought-after songs. Indeed, Roblox admitted in a recent disclosure filing that
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`2 See Stuart Dredge, Roblox Head of Music Tells Labels and Artists: ‘We’re open
`for business!’, Musically (July 23, 2020),
`https://musically.com/2020/07/23/roblox-head-of-music-tells-labels-and-artists-
`were-open-for-business.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 5 of 71 Page ID #:5
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`“[w]e primarily generate revenue through the Roblox Platform, based on the direct
`sale of Robux to users.”3
`By offering access to the copyrighted content that users pay to upload,
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`Roblox drives a tremendous and growing number of users to its service. Roblox
`currently averages 36.2 million active users per day, with a total user base of over
`200 million. The availability of unlicensed popular music (such as that of
`Plaintiffs) on Roblox not only attracts paying users—it retains them. Users
`regularly report that the availability of music on Roblox is what keeps them
`coming back, including one user who reported that Roblox was their “favorite
`music game ever!!!!!!!”:
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`There is no question that Roblox has the right and ability to stop or
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`limit the infringement on its platform. But Roblox refuses to do so, so that it can
`continue to reap huge profits from the availability of unlicensed music. While
`Roblox touts itself as a platform for “user-generated” content, in reality, it is
`Roblox—not users—that consciously selects what content appears on its platform.
`Roblox is highly selective about what content it publishes, employing over a
`thousand human moderators to extensively pre-screen and review each and
`
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`3 See Sec. & Exchange Comm., Form S-1 Registration Statement of Roblox
`Corporation, p. 113 (Nov. 19, 2020),
`https://www.sec.gov/Archives/edgar/data/1315098/000119312520298230/d87104d
`s1.htm.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 6 of 71 Page ID #:6
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`every audio file uploaded. Roblox’s intimate review process includes review of
`every piece of copyrighted music, generally identified by title and artist—to ensure
`that it meets Roblox’s stringent and detailed content guidelines and community
`rules. This process ensures that Roblox plays an integral role in monitoring and
`regulating the online behavior of its young users.
`10. Roblox thus unquestionably exercises substantial influence over its
`users and the content on its platform, ostensibly in the name of “safety.” Yet
`Roblox allows a prodigious level of infringing material through its gates, purposely
`turning a blind eye for the sake of profits. Rather than take responsibility, Roblox
`absurdly attempts to pass the obligation to its users—many of whom are young
`children—to represent to Roblox that they own the copyrights to the works they
`have uploaded.
`It is anticipated that Roblox will try to seek cover behind certain legal
`11.
`protections that Congress afforded only to “innocent” qualifying service providers.
`Roblox’s business model and operations demonstrate that it is a clear bad actor
`however, that can never qualify for such protections. Further demonstrating its
`complete indifference to copyright law, Roblox claims on its website that it has
`engaged an agent to whom copyright holders may send notices of infringement;
`however, Roblox has failed to register an agent with the Copyright Office.
`Similarly, contrary to its claims, Roblox has never reasonably implemented a
`policy to terminate users engaging in repeat and egregious acts of infringement.
`Simply put, Roblox’s unlawful and infringing conduct is rampant and deliberate,
`and it cannot hide behind its customer base of children and young adults as an
`excuse for such conduct.
`12. Roblox’s unauthorized use of Plaintiffs’ copyrighted works has
`caused, and continues to cause, Plaintiffs significant and irreparable harm.
`Through its conduct, Roblox is liable for the direct infringement of Plaintiffs’
`exclusive rights under copyright law to reproduce, adapt, distribute, and publicly
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 7 of 71 Page ID #:7
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`perform their works. Roblox is also liable for the infringing acts of its users under
`established theories of contributory and vicarious infringement. Furthermore,
`because Roblox actively selects and stands behind the content on its platform, all
`of the infringement on the platform occurs by reason of Roblox’s own volitional
`involvement in the infringement.
`JURISDICTION AND VENUE
`13. This is a civil action in which Plaintiffs seek damages and injunctive
`relief for copyright infringement under the Copyright Act, 17 U.S.C. § 101, et seq.
`14. This Court has original subject matter jurisdiction over Plaintiffs’
`copyright infringement claims pursuant to 28 U.S.C. § 1331 and 1338(a).
`15. This Court has personal jurisdiction over Roblox because Roblox
`maintains its principal place of business within California and because Roblox
`conducts systematic and continuous business in California. This Court also has
`personal jurisdiction over Roblox because Roblox has committed a substantial part
`of the acts of infringement alleged in the Complaint within this district.
`16. Venue is proper in this district under 28 U.S.C. § 1391 (b) and (c) and
`§ 1400(a) because a substantial part of the acts of infringement, and other events
`and omissions complained of herein occur, or have occurred, in this district, and
`this is a district in which Roblox resides or may be found.
`THE PARTIES
`
`ABKCO
`17. Plaintiff ABKCO Music, Inc. (“ABKCO”) is a New York corporation
`with its principal place of business in New York.
`Big Machine
`18. Plaintiff Big Machine Music, LLC (“Big Machine”) is a Delaware
`limited liability company with its principal place of business in Tennessee.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 8 of 71 Page ID #:8
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`Concord Music
`19. Plaintiff Boosey & Hawkes, Inc. is a New York corporation with its
`principal place of business in New York.
`20. Plaintiff Concord Music Group, Inc. is a Delaware corporation with
`its principal place of business in Tennessee.
`21. Plaintiff Concord Music Publishing LLC is a Delaware limited
`liability company with its principal place of business in Tennessee.
`22. Plaintiff Pulse 2.0, LLC is a Delaware limited liability company with
`its principal place of business in California.
`23. Plaintiff Rodgers & Hammerstein Holdings LLC is a Delaware
`limited liability company with its principal place of business in New York.
`24. Plaintiffs Boosey & Hawkes, Inc., Concord Music Group, Inc.,
`Concord Music Publishing LLC, Pulse 2.0, LLC, and Rodgers & Hammerstein
`Holdings LLC are referred to herein collectively as “Concord Music.”
`Downtown
`25. Plaintiff Downtown Music Publishing LLC (“Downtown”) is a
`Delaware limited liability company with its principal place of business in New
`York.
`Hipgnosis
`26. Plaintiff Hipgnosis Songs Group, LLC is a Delaware limited liability
`company with its principal place of business in California.
`27. Plaintiff Hipgnosis SFH I Limited is a company organized under the
`laws of England and Wales.
`28. Plaintiffs Hipgnosis Songs Group, LLC and Hipgnosis SFH I Limited
`are referred to herein collectively as “Hipgnosis.”
`Kobalt
`29. Plaintiff Kobalt Music Publishing America, Inc. (“Kobalt”) is a
`Delaware corporation with its principal place of business in New York.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 9 of 71 Page ID #:9
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`MPL
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`30. Plaintiff Cherio Corporation is a New York corporation with its
`principal place of business in New York.
`31. Plaintiff MPL Communications, Inc. is a New York corporation with
`its principal place of business in New York.
`32. Plaintiff MPL Music Publishing, Inc. is a Delaware corporation with
`its principal place of business in New York.
`33. Plaintiffs Cherio Corporation, MPL Communications, Inc., and MPL
`Music Publishing, Inc. are referred to herein collectively as “MPL.”
`Peer
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`34. Plaintiff Panther Music Corp. is a New York corporation with its
`principal place of business in New York.
`35. Plaintiff Peer International Corporation is a New Jersey corporation
`with its principal place of business in New York.
`36. Plaintiff Songs of Peer, Ltd. is a Delaware corporation with its
`principal place of business in New York.
`37. Plaintiff Peermusic Ltd. is a New York corporation with its principal
`place of business in New York.
`38. Plaintiff Southern Music Publishing Co., Inc. is a New York
`corporation with its principal place of business in New York.
`39. Plaintiff Peermusic III, Ltd. is a Delaware company with its principal
`place of business in New York.
`40. Plaintiffs Panther Music Corp., Peer International Corporation, Songs
`of Peer, Ltd., PeerMusic Ltd., Southern Music Pub. Co. Inc., and Peermusic III,
`Ltd. are referred to herein collectively as “Peer.”
`Reservoir
`41. Plaintiff Reservoir Media Management, Inc. (“Reservoir”) is a
`Delaware corporation with its principal place of business in New York.
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 10 of 71 Page ID #:10
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`Spirit
`42. Plaintiff Spirit Music Holdings, Inc. (“Spirit”) is a Delaware
`corporation with its principal place of business in New York.
`Universal
`43. Plaintiff Universal Music Corp. is a Delaware corporation with its
`principal place of business in California.
`44. Plaintiff Universal Music Publishing, Inc. is a California corporation
`with its principal place of business in California.
`45. Plaintiff Songs of Universal, Inc. is a California corporation with its
`principal place of business in California.
`46. Plaintiff Universal Music – MGB NA LLC is a California limited
`liability company with its principal place of business in California.
`47. Plaintiff Polygram Publishing, Inc. is a Delaware corporation with its
`principal place of business in California.
`48. Plaintiff Universal Music – Z Tunes LLC is a New York limited
`liability company with its principal place of business in California.
`49. Plaintiff Universal Musica, Inc. is a Florida corporation with its
`principal place of business in California.
`50. Plaintiffs Universal Music Corp., Universal Music Publishing, Inc.,
`Songs of Universal, Inc., Universal Music – MGB NA LLC, PolygGram
`Publishing, Inc., Universal Music – Z Tunes LLC, and Universal Musica, Inc. are
`referred to herein collectively as “Universal.”
`Zimmerman
`51. Plaintiff Joel Thomas Zimmerman p/k/a deadmau5 (“Zimmerman”) is
`an individual domiciled in Ontario, Canada.
`Roblox
`52. Defendant Roblox is a Delaware corporation with its principal place
`of business at 970 Park Place, San Mateo, California 94403. Roblox owns and
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 11 of 71 Page ID #:11
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`operates an online platform that features countless musical works for which
`Roblox neither owns nor controls the copyrights, and for which Roblox has not
`obtained the necessary licenses from the copyright owners.
`PLAINTIFFS’ BUSINESSES AND THEIR COPYRIGHTS
`53. Plaintiffs are highly respected music publishers and songwriters
`and/or their representatives whose music has been exploited on the Roblox
`platform without license or compensation. Each Plaintiff invests substantial
`money, time, effort, and talent to develop, produce, publish, acquire, license, and
`otherwise exploit the copyrights in their musical works.
`54. Plaintiffs own and/or control in whole or in part the exclusive rights to
`millions of musical works, including the compositions listed on Exhibit A, which
`is illustrative and non-exhaustive. All of the musical works listed on Exhibit A
`have been registered with the U.S. Copyright Office, or are foreign works
`otherwise exempt from the Copyright Act’s registration requirements.
`55. ABKCO is one of the world’s leading independent music publishers.
`Founded over 60 years ago, ABKCO holds rights in the catalogs of countless
`iconic songwriters, including Sam Cooke (for example, “A Change Is Gonna
`Come,” as recorded by Sam Cooke) and Mick Jagger/Keith Richards (for example,
`“You Can't Always Get What You Want,” as recorded by the Rolling Stones),
`among many others.
`56. Big Machine represents the publishing side of Big Machine Records,
`an independent music powerhouse based in Nashville. Big Machine holds rights to
`the catalogs of numerous leading country artists, including Luke Combs and Brett
`Young.
`57. The entities comprising the Concord Music Plaintiffs are part of
`Concord, the independent, worldwide leader in the development, management and
`acquisition of sound recording, music publishing and theatrical performance rights.
`The Concord Music Plaintiffs collectively hold rights in over four hundred
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`

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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 12 of 71 Page ID #:12
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`thousand copyrighted musical works by celebrated songwriters, composers and
`lyricists, spanning nearly two centuries of song, through a vast array of genres,
`including, for example, “7 Rings” (as recorded by Ariana Grande), “Eye of the
`Tiger” (as recorded by Survivor), and “Sicko Mode” (as recorded by Travis Scott).
`58. Downtown is a global independent rights management and music
`services company that holds rights in nearly 100 years of popular music from
`acclaimed writers and artists.
`59. The entities comprising Hipgnosis form Hipgnosis Songs Fund, which
`was founded in 2018 and has quickly acquired a vast catalog of hit songs such as
`“Treat You Better” (as recorded by Shawn Mendes).
`60. Kobalt is one of the world’s largest, most innovative music
`companies. Kobalt holds rights to an extensive roster of songwriters and artists old
`and new.
`61. The entities comprising MPL make up one of the world’s largest
`privately owned music publishers, covering nearly 100 years of music.
`62. The entities comprising Peer make up peermusic, which is the largest
`independent music publisher in the world. Founded over 90 years ago, the Peer
`Plaintiffs hold exclusive rights to seminal classic works and contemporary works
`alike, including for example, “Yummy” (as recorded by Justin Bieber), “Firework”
`(as recorded by Katy Perry), and “Mambo No. 5” (as recorded by Lou Bega).
`63. Reservoir is an independent music company based in New York, with
`offices in Los Angeles, Nashville, London, Toronto, and Abu Dhabi. Reservoir
`holds over 130,000 copyrights to famous musical works, dating back over a
`century, including, for example, “Take Me Home, Country Roads” (as recorded by
`John Denver), “Cry Me a River” (as recorded by Justin Timberlake), and “Candy
`Shop” (as recorded by 50 Cent).
`64. Spirit is one of the world’s leading independent music publishers.
`With a deep catalog spanning seven decades and every musical genre, including
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 13 of 71 Page ID #:13
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`“Shape of You” (as recorded by Ed Sheeran), “Holiday” (as recorded by
`Madonna), and “Livin’ La Vida Loca” (as recorded by Ricky Martin), Spirit is a
`tireless promoter of its songs in film, television, and advertising productions, as
`well as a range of new media.
`65. The entities comprising Universal are part of Universal Music
`Publishing Group, one of the largest music publishers in the world, with rights to
`an extensive music catalog, representing iconic standards and hit pop songs alike,
`including, for example, “Hello” (as recorded by Adele), “Power” (as recorded by
`Kanye West), and “Ain’t No Sunshine” (as recorded by Bill Withers).
`66. Zimmerman, known professionally as “deadmau5,” is an independent
`award-winning, platinum-selling recording artist, songwriter, music producer, and
`performer, known for writing and producing numerous hit songs, such as
`“Pomegranate” and “Bridged by a Lightwave,” which Zimmerman owns or
`controls in whole or in part.
`67. Each of the Plaintiffs owns and/or exclusively controls rights set forth
`in 17 U.S.C. § 106 of the Copyright Act with respect to the musical works listed on
`Exhibit A, and many more. Anyone else who wants to exercise these rights must
`obtain a mechanical license to reproduce and distribute the musical works, a sync
`license to release musical works in connection with visual images (such as video
`games), and a performance license to perform these musical works. Roblox has
`neither obtained nor even sought such licenses from Plaintiffs to use their musical
`works.
`
`THE ROBLOX PLATFORM
`68. Roblox owns and operates an online video game platform and game
`creation system, available through the website www.Roblox.com (the “Website”)
`and various downloadable software applications provided in connection therewith.
`Founded by David Baszucki and Erik Cassel in 2004, Roblox released its software
`to the public in 2006 for personal computers, and versions of Roblox’s software
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`Knupp LLP
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 14 of 71 Page ID #:14
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`were subsequently released on mobile devices, via Apple iOS and Google Android,
`and most recently on the Microsoft Xbox One video game console.
`In addition to the Roblox Website, the Roblox platform contains three
`69.
`elements: the Roblox Client, the Roblox Studio, and the Roblox Cloud.
`70. The Roblox Client, downloaded via the Roblox Website or via online
`app stores, contains software that provides users access to games created by other
`users, as well as games developed or sponsored by Roblox. Users access these
`games and interact with other users on the Roblox Client with their user “avatar,”
`which users can customize with different types of gear, clothing, and other items.
`71. The Roblox Studio, also downloaded via the Roblox Website, is a
`separate piece of software that provides a development toolkit to users who wish to
`develop games and other in-game content for the platform. Using the Roblox
`Studio, these users—sometimes referred to as “developers”—can develop and
`upload 3D models, images, audio files, and video files to the Roblox platform,
`which are then accessible in the Roblox Studio, as well as via the Roblox Website
`and Roblox Client.
`72. The Roblox Cloud contains the underlying infrastructure to host and
`deliver content throughout the Roblox platform via Roblox’s content delivery
`networks throughout California, the United States, and the world.
`73. Together with the Roblox Website, these elements interact to create a
`cohesive environment for developing and sharing games and “assets,” or files
`containing content for in-game use, which Roblox copies and disseminates to its
`users via an elaborate content delivery system. Among the most popular “assets”
`are audio files containing unlicensed commercial music, which Roblox has
`encouraged its users to upload and unlawfully stream, distribute, and synchronize
`with game content.
`74. To sign up for a Roblox account, users, made up predominantly of
`young children, must agree to Roblox’s terms and conditions (“Terms of Use”).
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`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 15 of 71 Page ID #:15
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`Pursuant to the Terms of Use, a user agrees to “respect the intellectual property
`rights of others,” and must represent and warrant that they “are the creator and
`owner of, or have the necessary licenses, rights, consents and permissions” to
`authorize Roblox to exploit any content that they upload. Roblox reserves the
`unfettered right to limit use when those terms are violated, including by
`terminating the accounts of, and blocking access to the service, to those who
`“repeatedly or egregiously infringe[] other people’s copyrights or other intellectual
`property rights.”
`75. Roblox also requires all users to adhere to Roblox’s community rules
`(“Community Rules”), which set forth guidelines for how users are to conduct
`themselves on the platform. These Community Rules provide users with an
`extensive list of the categories of content that Roblox deems to be “inappropriate”
`or “unsafe” for children, such as speech that is discriminatory or offensive to
`certain groups, sexual or overly violent content, profanity, implying that an avatar
`is naked or wearing underwear, activities that are “dangerous” or “unethical,”
`content that impersonates others, games that redirect users away from the Roblox
`platform, promotions that offer prizes, and a multitude of other content and user
`activity that Roblox prohibits.
`76. Despite Roblox’s written policies, users regularly upload files
`containing copyrighted music. The act of “uploading” a file to Roblox involves
`the user making a copy of the file and distributing it to Roblox, where it is then
`hosted on Roblox’s servers.
`77. To upload an audio file, a user simply opens the Roblox Studio and
`clicks on a tab marked “Audio,” which then prompts the user to choose a file on
`their local hard drive, in either .mp3 or .ogg format to be copied and distributed to
`Roblox’s servers.
`78. Roblox makes the process of uploading infringing music extremely
`easy for users. Roblox even published an article designed to encourage developers
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`Mitchell
`Silberberg &
`Knupp LLP
`13242039.2
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`Case 2:21-cv-04705 Document 1 Filed 06/09/21 Page 16 of 71 Page ID #:16
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`to add music to their games, which explains: “While building a game, it’s easy to
`overlook the importance of sounds and music.” (Emphasis added).4 That page
`gives users step-by-step instructions on how to copy and distribute their music files
`to the Roblox platform.
`79. When a user uploads a file containing music, the file is transmitted
`and an initial copy is created on a Roblox server.
`80. Roblox entices users with free membership, making its money largely
`through micro-transactions via Robux, a virtual currency that Roblox charges users
`to purchase. Users can purchase 400 Robux for $4.99, 800 Robux for $9.99, or
`1700 Robux for $19.99. Users can also purchase “Value Packs” of 4,500 Robux
`for $49.99 or 10,000 Robux for $99.99.5 Additionally, users can purchase a
`subscription for a “premium” membership, which grants the user a set allowance of
`Robux per month and 10% additional Robux with every Robux purchase.
`81. Every audio file that is uploaded to the library on Roblox’s platform is
`accompanied by a Robux charge, commensurate with the length of the audio file,
`which Roblox represents accounts for “the time it takes moderators to review every
`sound file that users upload.”6 Audio files that constitute 2-7 minutes cost the most
`to upload, at 350 Robux per upload, or approximately $4 USD. In other words,
`Roblox has designed its system so that it earns more money when us