`
`
`
`
`Peter R. Afrasiabi (SBN 193336)
`pafrasiabi@onellp.com
`John Tehranian (Bar No. 211616)
`jtehranian@onellp.com
`ONE LLP
`23 Corporate Plaza
`Suite 150-105
`Newport Beach, CA 92660
`Telephone: (949) 502-2870
`Facsimile: (949) 258-5081
`BAY ADVOCACY PLLC
`Maximillian Amster (Pro Hac Vice forthcoming)
`Samuel J Salario, Jr. (Pro Hac Vice forthcoming)
`1700 S. MacDill Avenue, Suite 300
`Tampa, Florida 33629
`
`Attorneys for Plaintiff,
`Hollywood Innovations Group, LLC
`
`UNITED STATES DISTRICT COURT
`CENTRAL DISTRICT OF CALIFORNIA
`WESTERN DIVISION
`HOLLYWOOD INNOVATIONS
` Case No. 2:21-cv-9423
`GROUP, LLC, a California corporation,
`
`
`Plaintiff,
`COMPLAINT FOR COPYRIGHT
`INFRINGEMENT
`(17 U.S.C. § 501)
`
`DEMAND FOR JURY TRIAL
`
`v.
`NETFLIX, INC., a Delaware
`corporation; ZIP CINEMA CO., LTD., a
`South Korea corporation; KAKAO
`ENTERTAINMENT CORP., a South
`Korea Corporation; PERSPECTIVE
`PICTURES CO., LTD.,a South Korea
`corporation; and DOES 1-10, inclusive,
`
`Defendants.
`
`
`
`
`
`
`
`COMPLAINT
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 2 of 18 Page ID #:2
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`Plaintiff Hollywood Innovations Group, LLC (“Plaintiff or “HIG”) complains
`against Netflix, Inc. (“Netflix”), Zip Cinema Co., Ltd. (“Zip Cinema”), Kakao
`Entertainment Corp (“Kakao”), Perspective Pictures Co., Ltd. (“Perspective
`Pictures”), and DOES 1 through 10 (collectively, “Defendants”), as follows:
`INTRODUCTION
`Once upon a time, Netflix was the innovative upstart, playing the role
`1.
`of “David” to Blockbuster Video’s “Goliath.” Netflix ultimately won that battle and,
`in the process, became a dominant force in video entertainment content production
`and distribution. Unfortunately, however, in its desperate quest to remain on top,
`Netflix has combined its power and innovation with unscrupulous business
`practices. This lawsuit, like other recent civil actions against the company, concerns
`these illicit activities.
`Netflix identified the South Korean market as its next cash cow. But in
`2.
`its effort to grab valuable market share, it had to return to its innovative roots.
`Regrettably, it innovated in the most nefarious way – by weaponizing breakthroughs
`in language dubbing technology to steal content, repackage it as its own, and release
`the content to a massive global audience, thereby reaping tens of millions of dollars
`in ill-gotten profits along the way.
`Plaintiff, Hollywood Innovation Group (HIG), was the victim of this
`3.
`carefully orchestrated campaign by Netflix and its partners to usurp HIG’s valuable
`intellectual property rights for their unlawful commercial exploitation. Specifically,
`and among other things, HIG owns the exclusive rights to produce and market all
`versions, save Korean language, of a prescient original screenplay, Devour, written
`before the COVID-19 outbreak about one young man’s struggle for survival during
`a global viral pandemic. In 2020, during the height of the COVID-19 crisis, a
`Korean-language motion picture, #Saraidta, based on the Devour screenplay
`became a blockbuster hit in South Korea. HIG was preparing to release an English
`language motion picture, Alone, that was based on the Devour screenplay, and
`
`2
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 3 of 18 Page ID #:3
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`which featured A-list Hollywood talent and a renowned director. But Netflix, along
`with Korean producers, Zip Cinema and Perspective Pictures, beat HIG to the
`marketplace with an unauthorized and unlawful direct competitor to HIG’s movie.
`Specifically, they used new language dubbing technologies to quickly and cheaply
`undermine HIG’s rights by releasing, under the name #Alive, multiple dubbed
`versions (in numerous non-Korean languages, including English) of the original
`Korean title (#Saraitda) on Netflix. So, while Netflix and its partners profiteered
`handsomely from an illicit global streaming smash hit, HIG was left holding a
`worthless property.
`Netflix has known for over a year that it did not own the rights to
`4.
`produce the content in question. It knew or was reckless in not knowing that it had
`no rights to distribute Saraitda dubbed into English or any other non-Korean
`language and that such new versions of Saraitda constituted unlawful derivative
`works. It knew or should have known it was breaking the law, committing flagrant
`copyright infringement. But that did not matter, apparently. Profits, market share
`and subscriber growth were deemed more important, leaving HIG with no choice
`but to litigate this matter.
`
`JURISDICTION AND VENUE
`This is a civil action against Defendants for acts of copyright
`5.
`infringement under the Copyright Act, 17 U.S.C. §§ 101 et seq. This Court has
`subject matter jurisdiction under 28 U.S.C. § 1331, 17 U.S.C. § 501(a), and 28
`U.S.C. § 1338(a) and (b).
`Venue is proper in this judicial district under 28 U.S.C. §§ 1391(b)
`6.
`and (c) and 28 U.S.C. § 1400(a) in that the claim arises in this judicial district and
`the injury suffered by Plaintiff took place in this judicial district. Defendants are
`subject to the general and specific personal jurisdiction of this Court because of
`their systematic contacts with, and purposeful availment of, the State of California.
`
`
`
`
`
`3
`COMPLAINT
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 4 of 18 Page ID #:4
`
`
`Specifically, and among other things, Netflix is headquartered in Los Gatos,
`California and has a primary office in Los Angeles, California. Zip Cinema and
`Perspective Pictures, as alleged below, repeatedly reached out to Plaintiff in this
`forum seeking information about Plaintiff’s movie production to further the
`infringement alleged herein. And on information and belief, Zip Cinema and
`Perspective Pictures regularly contract and do business in the State of California,
`including with corporations headquartered in the state. Each of the following Zip
`Cinema productions is distributed by Netflix, which is headquartered in Los Gatos,
`California: Crazy Romance (2019), Golden Slumber (2018), Default (2018), The
`Priests (2015), Cold Eyes (2013), All About My Wife (2012), and Haunters (2010).
`Moreover, certain of these films, such as All About My Wife, were released in
`theatres throughout North America, including Los Angeles. The Perspective
`Pictures productions Night Moves (2013) and Martha Marcy May Marlene (2011)
`were distributed by Fox Searchlight Pictures and Cinedigm, respectively, both of
`which are headquartered in Los Angeles, California. Furthermore, Perspective
`Pictures is, in its own words, “based in Los Angeles.”1
`
`PARTIES
`Plaintiff Hollywood Innovations Group, LLC (“HIG”) is a limited
`7.
`liability corporation existing under the laws of California, with its principal place of
`business in Los Angeles, California. HIG is a multi-service entertainment company,
`providing film production services domestically and abroad.
`Defendant Netflix, Inc. (“Netflix”) is a corporation existing under the
`8.
`laws of Delaware, with its principal place of business in Los Gatos, California.
`Netflix is an American subscription-based streaming service offering a vast library
`of films and television programs for streaming to millions of subscribers across the
`world.
`
`
`1 See, e.g., https://www.perspective-us.com/company.
`4
`
`COMPLAINT
`
`
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 5 of 18 Page ID #:5
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`On information and belief, Defendant Zip Cinema Co., Ltd. (“Zip
`9.
`Cinema”) is a corporation existing under the laws of South Korea, with its principal
`place of business in Seoul, South Korea. Zip Cinema is a leading Korean film
`production company, known for several popular titles in Korean cinema.
`10. On information and belief, in a transaction announced in September
`2021 and concluded thereafter, Zip Cinema was acquired by Defendant Kakao
`Entertainment Corp. (“Kakao”), a corporation existing under the laws of South
`Korea with its principal place of business in Seongnam, South Korea. Also on
`information and belief, as a result of the transaction, Kakao has succeeded to or
`otherwise become responsible for the liabilities of Zip Cinema and is thus
`responsible for Zip Cinema’s acts of copyright infringement alleged herein.
`11. On information and belief, Defendant Perspective Pictures Co., Ltd.
`(“Perspective Pictures”) is a corporation existing under the laws of South Korea
`with offices in Los Angeles, California. Perspective Pictures is a film and television
`production company with several popular independent film titles under its name.
`12. DOES 1 through 10, inclusive, are unknown to Plaintiff, who therefore
`sues said Defendants by such fictitious names. Plaintiff will ask leave of Court to
`amend this Complaint and insert the true names and capacities of said Defendants,
`individual or corporate, when the same have been ascertained in discovery. Plaintiff
`is informed and believes and, upon such, alleges that each of the Defendants
`designated herein as a “DOE” is legally responsible in some manner for the events
`and happenings herein alleged, and that Plaintiff’s damages as alleged herein were
`proximately caused by such Defendants.
`
`STATEMENT OF FACTS
`Plaintiff’s Copyright in the Script and Development of the Movie Alone
`13. Matt Naylor (“Naylor”) is the author of an original screenplay entitled
`Devour, also known as Alone (the “Script”). Written before the COVID-19
`
`
`
`
`
`5
`COMPLAINT
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 6 of 18 Page ID #:6
`
`
`pandemic, ironically, the Script details a young man’s struggle for survival and the
`resulting mayhem as he is forced to self-isolate in his urban apartment during the
`outbreak of a global viral pandemic. The Script was timely registered with the
`United States Copyright Office on June 3, 2019, under registration number
`TX0008796763.
`14. Naylor was the sole and exclusive owner throughout the world of all
`rights, including copyrights, in and to the Script until July 18, 2018.
`15. On July 18, 2018, Naylor entered into a license agreement with Zip
`Cinema and Perspective Pictures (the “Korean Producers”), granting them the
`carefully circumscribed right to produce just a “single, feature-length motion picture
`in the Korean language . . . based on the Original Script,” (the “Korean Picture”),
`and the concomitant right to “exploit, exhibit, and distribute” said Korean language
`film (hereinafter the “Zip/Perspective License Agreement”). As such, all other
`rights to the Original Script remained with Naylor and, notably, the Zip/Perspective
`License Agreement did not convey any derivative rights to the Original Script to the
`Korean Producers. Moreover, to make matters even clearer, the parties expressly
`agreed and acknowledged that, among other things, Naylor specifically reserved the
`right to produce and distribute throughout the world an English language version of
`a movie based on the Script. Id.
`16. Then, on April 1, 2019, Naylor entered into an agreement with Rabih
`Aridi (“Aridi”), granting and assigning Aridi all copyright interests and “all rights of
`every kind” in and to the Script (hereinafter the “Literary Purchase Agreement”).
`The only rights not conferred to Aridi were those limited rights expressly granted
`under the Zip/Perspective License Agreement (i.e., the right to produce one Korean-
`language-only movie based on the Script), and live stage and publishing rights, the
`latter of which Naylor reserved for himself. Id. ¶¶1,2. Each of the granted rights
`was freely assignable. Id. ¶ 12.
`
`
`
`
`
`6
`COMPLAINT
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 7 of 18 Page ID #:7
`
`
`
`17. On May 1, 2019, Aridi entered into an assignment agreement with
`Devour LLC, assigning to Devour LLC “all of [his] right, title and interest in and to
`the Literary Purchase Agreement.”
`18. On August 20, 2019, Devour LLC in turn granted to HIG, pursuant to
`an assignment agreement, “all right, title, and interest in and to” an English language
`movie based on the Script together with “all now or hereafter existing rights of
`every kind and character whatsoever therein, . . . including all . . . scripts. . . as well
`as all copies of any and all manuscripts thereof . . . and all versions and translations
`thereof.”
`19. As the owner of all rights to make the English language film based on
`the Script (and all derivative non-Korean language versions and other derivatives,
`also), and all derivative rights to the Script (including even derivative rights to any
`subsequent Korean versions, given the very limited grant of rights in the
`Zip/Perspective License Agreement grant), HIG undertook the production of an
`English language version film based upon the Script.
`20. After exhaustive efforts, HIG was thrilled to secure the legendary
`Donald Sutherland and prominent young actor Tyler Posey in the two lead roles in
`the motion picture, to be named Alone. HIG also attached successful Hollywood
`auteur Johnny Martin to direct the film. This was something of a passion project for
`HIG and its team – an opportunity to realize a longtime dream of producing a
`commercially significant movie. Accordingly, it poured countless hours and
`significant financial resources into the production. With a poignant script, gripping
`story and A-list talent, HIG had every reason to believe that Alone would enjoy
`great box office success, a view that would only be further bolstered by the
`resonance of the work after the outbreak of the global COVID pandemic in early
`2020. HIG began production of Alone in 2019 and had plans for an official release
`in October 2020.
`
`
`
`
`
`7
`COMPLAINT
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 8 of 18 Page ID #:8
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`21. Besides a standard box office release, HIG had its own streaming plans
`in place and had intended to strike a deal with Netflix, which had done prior deals
`with Johnny Martin and HIG principals. HIG had every reason to be optimistic
`about Alone’s prospects, as the film featured a star-studded cast and significant,
`positive support from potential distributors, all owing largely to the fortuitous timing
`of the film’s subject matter given the COVID pandemic and the related lockdowns
`that had struck the world in early 2020.
`
`Defendants’ Infringing Activities and the Resulting Damage to Plaintiff
`22. While HIG was producing its English language version of the film in
`the United States, Zip Cinema and Perspective Pictures produced in South Korea
`their Korean language film, named #Saraitda (later named #Alive on Netflix), based
`on the Script. Released in South Korea in June 2020, at the height of the COVID-19
`pandemic, #Saraitda was a major box office success in the country, enjoying the
`highest first-day viewership of any film since the start of the pandemic, dominating
`62% of the box office, surpassing two million people in theatrical admissions and
`grossing nearly $15 million in theatrical revenues despite the global downturn in
`box office revenues as audiences avoided indoor public venues that put them at risk
`for COVID.
` Following #Saraitda’s theatrical success in Korea, Naylor—now
`23.
`purportedly acting on behalf of the Korean Producers—contacted HIG to discuss the
`potential acquisition of sequel and other derivative rights by Zip Cinema and
`Perspective Pictures. To facilitate discussions, the Korean Producers again made
`clear, and verified, that the right to produce an English language version of the film
`would remain excluded from any future agreement, just as it had been with the prior
`agreement they had with Naylor. The foregoing correspondence dispels any doubt
`that the Korean Producers clearly understood that their rights under the
`Zip/Perspective License Agreement excluded the right to produce or distribute an
`
`
`
`
`
`8
`COMPLAINT
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 9 of 18 Page ID #:9
`
`
`English language version of a film based on the Script (let alone more derivative
`versions in Korean, whether movie sequels or episodic series), thereby rendering
`their conduct particularly egregious and willful.
`24. During HIG’s production of Alone in 2019-20, the Korean Producers,
`who were in the midst of making their Korean language film under their limited
`grant of rights, repeatedly emailed and called the director and producers of Alone in
`California to ascertain various details about the American production, including its
`timeline. The calls seemed curious and irrelevant at the time since each entity was
`making a film in entirely different markets (Korean language for the Korean
`Producers and English/all other languages for HIG). However, the subterfuge at
`play is now clear: the Korean Producers had duplicitously intended to race to
`complete their Korean film and then unlawfully dub it into English and other
`languages to reach a more lucrative market and maximize their profits. And, to take
`full advantage of this tantalizingly rewarding, albeit thoroughly illicit, opportunity,
`the Korean Producers would need to get their dubbed and subtitled version of #Alive
`to market prior to the completion of HIG’s movie production and its release of
`Alone in domestic and foreign cinemas and on streaming services.
`25. With the global outbreak of the COVID pandemic, the economic
`incentive for the Korean Producers’ malfeasance increased dramatically. HIG and
`the Korean Producers sat on motion pictures that had a remarkable and unique
`resonance with what people around the globe were experiencing in their real lives.
`Audiences were hungry for content that spoke to the struggles they were facing
`during the COVID lockdown. But the rights that the Korean Producers had secured
`(again, for just a single Korean-language-only film based on Naylor’s Script)
`reached only a small fraction of the audience compared to the rights that HIG had
`secured (for, among other things, the English language film based on the Script, any
`non-Korean language movies based on the Script, and all derivative rights to the
`
`
`
`
`
`9
`COMPLAINT
`
`
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 10 of 18 Page ID #:10
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`Script, including but not limited to derivative rights to any Korean-language sequel
`movies).
`26. Putting the lure of profits over the law and using information they had
`obtained about the Alone production under false pretenses, the Korean Producers
`carefully timed their dubbed and subtitled version of #Alive to hit the international
`streaming marketplace, through Netflix, in advance of the release of Alone, thereby
`reaping tens of millions of dollars in ill-gotten gains and utterly annihilating the
`marketplace for Alone in the process.
`27. Among other things, Zip Cinema’s and Perspective Pictures’
`intentional and directed contacts were made into this forum in an attempt to glean as
`much information as possible to aid them in their race to unlawfully beat HIG to the
`lucrative English language and streaming markets with their infringing work,
`thereby underscoring the wanton and willful nature of their illicit activities.
`28. Recognizing #Saraitda’s potential for success in other markets, Netflix
`ostensibly acquired international distribution rights in the Korean language film
`pursuant to a license agreement with an entity named Lotte Entertainment, which
`had acquired whatever rights the Korean Producers possessed and was working in
`concert and privity with said Korean Producers.
`Indeed, Netflix has made a major push in recent years to release foreign
`29.
`films dubbed into English by taking advantage of modern dubbing techniques and
`technologies that Netflix itself recognizes are an “art” form. These new techniques
`enable foreign films to reach wide English-speaking audiences who would, in prior
`decades, largely eschew foreign movies due to the undesirability of reading subtitles
`and the poor quality of dubbing that made such movies difficult to watch in the past.
`As a result of the availability of these new dubbing practices, Netflix has taken
`foreign movies which would have previously only enjoyed niche art-house
`audiences and, by creating derivative versions of these works dubbed in the local
`languages of numerous markets, made them widely accessible to a global audience.
`
`10
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 11 of 18 Page ID #:11
`
`
`For example, the English language version of the Korean series Squid Game, which
`is dubbed in English (among other languages) on Netflix, has become a viral
`sensation and quickly skyrocketed to the top of Netflix’s all-time most-watched
`titles—a list that also includes the English language version of the Spanish show
`Money Heist and the English language version of the French show Lupin, each of
`which have benefited from the creative dubbing improvements of the past few years.
`30. Netflix’s business model has relied heavily on Korean content due to its
`profitability, given South Korea’s unique position as a cultural hub of and barometer
`for success in the broader Asian marketplace. As a result, Netflix has invested
`heavily in South Korean content (to the tune of $500 million this year alone). As
`Ted Sarandos, Netflix’s co-Chief Executive Officer and Chief Content Officer, has
`noted, "Over the last two years, we’ve seen the world falling in love with the
`incredible Korean content.”2 Thus, the lure of profits and increasing its profile as
`the leading outlet for Korean content motivated Netflix’s eager willingness to
`weaponize new dubbing technologies to exploit content from South Korea in the
`absence of appropriate licenses, even when put on specific legal notice thereof by
`HIG’s counsel.
`31. While Sarandos has trumpeted the tagline, “Made in Korea and
`watched by the world on Netflix,”3 the facts of this case suggest a more appropriate
`epigram: “Made in Korea and infringed for the world on Netflix.”
`32. On September 8, 2020, after it had already been previously released in
`South Korea by the Korean Producers, Netflix released #Saraitda as #Alive on its
`streaming platform. Drawing on Netflix’s dubbing prowess, Netflix and the Korean
`Producers created a high-quality dubbed and subtitled version of #Alive in English,
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`2 Lucas Shaw & Ziaoying Zhao, Netflix Plans $500 Million Spending in Korea to Crack
`Asia, BLOOMBERG | QUINT (Feb. 24, 2021),
`https://www.bloombergquint.com/onweb/netflix-plans-500-million-korea-budget-this-
`year-to-crack-asia.
`3 Id.
`
`
`11
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 12 of 18 Page ID #:12
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`as well as high-quality dubbed and subtitled versions in an additional 30 languages
`for release on Netflix’s streaming platform during the COVID-19 pandemic.
`#Alive was an instant international sensation and massive hit for
`33.
`Netflix. Two days after its release, the film achieved a first place ranking on the
`global platform.4 By December 2020, #Alive was on the top ten list in some 90
`different countries, including the United States, making it one of the most popular
`titles globally on Netflix that year and, in fact, ever.5
`Johnny Martin and HIG were shocked at the release of #Alive. Martin,
`34.
`who had known Matt Naylor for many years, immediately called Naylor, who had
`been interfacing with the Korean Producers, to discuss this illicit English release of
`the film based upon the Script and attempt to resolve the situation before being
`forced to involve legal counsel. Naylor did not answer and ignored Martin’s
`voicemail.
`35. Predictably, Netflix’s release of #Alive devastated the market for Alone
`and its October 2020 release. By the time Alone premiered, audiences around the
`world had already streamed #Alive – with its virtually identical plotline – in English
`(and 30 other non-Korean languages), rendering Alone commercially unviable with
`a massive lost opportunity to monetize the value of the now-produced film. This is
`to say nothing of the years of passion, work, and resources HIG had poured into the
`project, which were now all for naught.
`36. Adding insult to injury, critics and audiences alike have incorrectly
`derided Alone as knock-off of #Alive. All told, the illicit release of #Alive in English
`thoroughly undermined the ability of HIG to secure attention and support for its
`film, costing HIG millions of dollars in damages for its own English-language film
`at a peak moment in terms of its resonance with audiences worldwide during the
`
`4 Kwak Yeon-soo, Zombie Thriller “#Alive” Becomes Netflix’s Most Popular Film,
`KOREA TIMES (Sept. 11, 2020),
`https://www.koreatimes.co.kr/www/art/2020/09/689_295880.html.
`5 The Stories That Helped Us Escape At Home, NETFLIX (Dec. 10, 2020),
`https://about.netflix.com/en/news/what-we-watched-2020-on-netflix
`12
`
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 13 of 18 Page ID #:13
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`COVID pandemic. In addition, Defendants’ actions have also squelched the
`possibility of a sequel to Alone, on which HIG had actively been working. Indeed,
`HIG had already prepared parts of a sequel script, including the ending, and it had
`engaged in preliminary discussions with Lionsgate regarding the sequel’s
`production and distribution.
`37. Moreover, due to Netflix’s release of new versions of #Alive in other
`non-Korean languages (e.g., French, Spanish, German, Russian, etc.), HIG was
`deprived of its contracted-for ability to create additional derivative works by
`dubbing and releasing Alone into other languages and, as such, lost significant
`foreign business opportunities to release Alone worldwide in non-English languages
`(other than Korean) as the actions of Defendants desiccated those markets.
` On September 18, 2020, counsel for HIG sent a letter to Netflix
`38.
`demanding the immediate takedown of the film’s dubbed versions from its
`streaming platform. Netflix refused and continued streaming and marketing #Alive.
`39. On September 21, 2020, counsel for HIG also sent Zip Cinema a letter
`demanding that it immediately instruct Netflix to remove #Alive from its streaming
`platform and permanently cease and desist all unauthorized dubbing and subtitling
`of the film and distribution of such translations. Zip Cinema was also notified that
`Alone would be premiering domestically in early October 2020, making it
`imperative that Defendants immediately halt their infringing activities. Zip Cinema
`ignored these requests.
`40. As sophisticated and established global players in the motion picture
`industry, Defendants are deeply steeped in the world of intellectual property, have
`full knowledge of the strictures of intellectual property law, vigorously enforce their
`own intellectual property rights, and understand the basic requirements for licensing
`the use of copyrighted content for commercial exploitation. Yet, notably, in
`response to the above-mentioned demand letters, neither Netflix nor Zip Cinema
`offered any other agreement predating the Literary Purchase Agreement that would
`
`13
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 14 of 18 Page ID #:14
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`justify any claim to superior rights or provided any viable factual or legal basis upon
`which to justify their conduct, thereby further establishing the brazen nature of
`Defendants’ infringing conduct, which continues unabated to this day.
`41. The wanton and willful infringing acts of Defendants have translated
`into substantial ill-gotten commercial advantage. Netflix has generated considerable
`profits and value from its unlawful distribution of the derivative versions of the
`Korean Picture in English and other languages. On information and belief, based on
`publicly disclosed viewership figures for comparable Netflix releases, #Alive likely
`received between 40 and 60 million views, translating to tens of millions of dollars
`of value for Netflix alone. Furthermore, to the extent that Netflix’s release of #Alive
`and its dubbed versions translated into new subscribers for the company, HIG is
`entitled to that portion of Netflix’s monthly subscriber revenue generated by
`Defendants’ conduct.
`42. The exact number of views #Alive received on Netflix, both organic
`and as generated by social media links to drive traffic, and the potential subscriber-
`base value Netflix secured due to the film are unknown to Plaintiff but are known to
`Netflix and will be the subject of discovery.
`43. Defendants’ infringement continues to date, as #Alive remains available
`for streaming by audiences across the world on Netflix. To make matters even
`worse, Korean Producers are planning a forthcoming television series based on
`#Alive and, upon information and belief, Netflix is also involved in the unlawful
`project.
`
`FIRST CLAIM FOR RELIEF
`(Copyright Infringement, 17 U.S.C. § 501, against all Defendants)
`44. Plaintiff incorporates herein by reference the allegations in paragraphs
`1 through 43 above.
`45. Plaintiff is the rightsholder to the relevant copyrights in and to the
`Script and Film, which substantially consist of wholly original material that
`
`14
`COMPLAINT
`
`
`
`
`
`
`
`Case 2:21-cv-09423 Document 1 Filed 12/06/21 Page 15 of 18 Page ID #:15
`
`1
`2
`3
`4
`5
`6
`7
`8
`9
`10
`11
`12
`13
`14
`15
`16
`17
`18
`19
`20
`21
`22
`23
`24
`25
`26
`27
`28
`
`
`
`constitutes copyrightable subject matter under the laws of the United States.
`Plaintiff has complied in all respects with the Copyright Act and all the laws of the
`United States governing copyrights, and the Script and Film were both timely
`registered with the U.S. Copyright Office (the Film Alone under Registration
`Certificate Number PA0002248290, and the Script Devour as alleged above under
`Registration Number TX0008796763).
`46. Defendants have directly, contributorily and/or vicariously infringed,
`and, unless enjoined, will continue to infringe Plaintiff’s copyrights in the Script and
`Film by preparing, reproducing, publicly displaying and exhibiting, and distributing
`derivative works in myriad languages based on the Script for purposes of trade in
`violation of 17 U.S.C. § 501 et seq.
`47. Defendants have also knowingly induced, caused, or materially
`contributed to the infringing conduct of third parties and/or have obtained a direct
`financial benefit therefrom while possessing the right and ability to control the
`infringing conduct of third parties.
`48. Defendants’ actions are and have been willful and in wanton disregard
`of Plaintiff’s rights.
`49. Defendants have received substantial benefits in connection with the
`unauthorized preparation, reproduction, public display and exhibition, and
`distribution of unauthorized derivative works in myriad languages based on the
`Script for purposes of trade.
`50. The actions of Defendants were, and are continuing to be, performed
`without the permission, license, or consent of