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`UNITED STATES DISTRICT COURT
`EASTERN DISTRICT OF NEW YORK
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`GENIUS MEDIA GROUP INC.,
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`Plaintiff,
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`v.
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`MEMORANDUM & ORDER
`19-CV-7279 (MKB)
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`GOOGLE LLC and LYRICFIND,
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`Defendants.
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`---------------------------------------------------------------
`MARGO K. BRODIE, United States District Judge:
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`Plaintiff Genius Media Group Inc. commenced the above-captioned action on December
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`3, 2019 in the New York Supreme Court, Kings County, against Defendants Google LLC
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`(“Google”) and LyricFind, Inc. (“LyricFind”). (Notice of Removal ¶ 1, Docket Entry No. 1.)
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`On December 30, 2019, Defendants removed the action to the Eastern District of New York.
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`(Id.) Plaintiff alleges that Defendants misappropriated lyric transcriptions from its website and
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`then used that content for Defendants’ “own financial benefit and to [Plaintiff’s] financial
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`detriment,” and asserts state law claims for breach of contract, indemnification, unfair
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`competition under both New York common law and California statutory law, and unjust
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`enrichment. (Compl. ¶¶ 1–2, 111–209, annexed to Notice of Removal as Ex. A, Docket Entry
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`No. 1.)
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`Plaintiff moves to remand the action to state court. (Pl. Mot. to Remand (“Pl. Mot.”),
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`Docket Entry No. 15; Pl. Mem. in Supp. of Pl. Mot. (“Pl. Mem.”), Docket Entry No. 15-1.)
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`Defendants oppose the motion. (Defs. Opp’n to Pl. Mot. (“Defs. Opp’n”), Docket Entry No. 16.)
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`For the reasons set forth below, the Court denies Plaintiff’s motion and dismisses the Complaint
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`for failure to state a claim.
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 2 of 36 PageID #: 236
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`I. Background
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`According to the allegations in the Complaint, Plaintiff is a “digital media company,” one
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`of whose “primary services is the development and maintenance of . . . annotated music lyrics.”
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`(Compl. ¶ 1.) LyricFind is a Canadian company that maintains a database of music lyrics. (Id.
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`¶¶ 8–9.) Both Plaintiff and LyricFind “license lyrics for display [and distribution] from music
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`publishers.” (Id. ¶¶ 18–19.) Google “owns and operates . . . the internet’s dominant search
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`platform.” (Id. ¶ 14.) Pursuant to an agreement between Defendants, “LyricFind provides lyrics
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`to Google for use in . . . Google’s search results.” (Id. ¶ 12.)
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`a. Plaintiff’s services and business model
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`While music publishers “usually own the copyright in the lyrics for a given song,”
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`companies like Plaintiff and LyricFind “do not typically receive any actual lyrics transcriptions
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`in connection with their licensing agreements,” (id. ¶ 18), and must otherwise generate or obtain
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`the lyrics they have licensed for display, (see id. ¶ 19). Plaintiff “provides a platform” for an
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`online community of “music enthusiasts who transcribe music lyrics.” (Id. ¶ 19.) The
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`transcription process is “arduous,” and Plaintiff has “invested ten years and millions of dollars to
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`build the technology and community that support[] collaborative lyrics transcription.” (Id. ¶ 20.)
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`In addition to this collaborative transcription process, Plaintiff also “obtains lyrics . . . directly”
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`from artists. (Id. ¶ 19.) Plaintiff “earns revenue in several ways,” including by “licens[ing] its
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`database of high-quality lyrics” to “major companies, such as Apple,” and by “generat[ing] ad
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`revenue through web traffic on its website and apps.” (Id. ¶ 22.)
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`All visitors to Plaintiff’s website are bound by terms and conditions (the “Terms of
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`Service”), “which are accessible to users from all pages of [Plaintiff’s] website.” (Id. ¶ 24.) The
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`Terms of Service prohibit, inter alia, the unauthorized “licens[ing], . . . copy[ing],
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`2
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 3 of 36 PageID #: 237
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`modif[ication], s[ale], . . . [or] transm[ission] for any commercial purpose, [of] any portion of
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`[Plaintiff’s] Service, or access to [Plaintiff’s] Service.” 1 (Id. ¶¶ 112, 115.) The Terms of
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`Service also prohibit, inter alia, the unauthorized “modif[ication], copy[ing], . . . s[ale], [or]
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`distribution” of Plaintiff’s content, other than a user’s own content that a user has “legally
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`upload[ed]” to Plaintiff’s website.2 (Id. ¶ 119.)
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`b. Google’s lyrics information boxes and Plaintiff’s suspicions of misconduct
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`Many visitors arrive at Plaintiff’s website via a search engine, “most typically Google’s,”
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`and Plaintiff “is often the top-ranked organic search result on Google for lyrics search queries.”
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`(Id. ¶¶ 23, 25.) However, even if Plaintiff is the top-ranked organic result for a user’s lyrics
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`search, a Google search feature known as an “Information Box” may still appear “above all other
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`organic search results,” displaying “the complete lyrics for the requested song.” (Id. ¶¶ 28–29.)
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`Such lyrics Information Boxes are often “displayed in such a manner that the user cannot see any
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`other search results without first scrolling down,” (id. ¶ 30), and significantly reduce the “click-
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`1 The Terms of Service provision regarding commercial use provides that:
`Unless otherwise expressly authorized herein or by [Plaintiff’s]
`express written consent, you agree not to display, distribute, license,
`perform, publish, reproduce, duplicate, copy, create derivative
`works from, modify, sell, resell, exploit, transfer or transmit for any
`commercial purpose, any portion of the Service, or access to the
`Service. The Service is for your personal use and may not be used
`for direct commercial endeavors without the express written consent
`of [Plaintiff].
`(Compl. ¶ 115.)
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`2 The Terms of Service provides that:
`Except as expressly authorized by [Plaintiff] in writing, you agree
`not to modify, copy, frame, scrape, rent, lease, loan, sell, distribute
`or create derivative works based on the Service of the [Plaintiff]
`Content, in whole or in part, except that the foregoing does not apply
`to your own User Content that you legally upload to the Service.
`(Compl. ¶ 119.)
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`3
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 4 of 36 PageID #: 238
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`through rate” to Plaintiff’s website, (id. ¶¶ 101–02).
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`When Google introduced the Information Box feature into its lyrics search results,
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`Plaintiff “observed that the lyrics in those Information Boxes were sometimes identical, on a
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`character-for-character basis,” to lyrics on Plaintiff’s website. (Id. ¶¶ 46–47.) Because such a
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`match “is highly unlikely” given the particular nature of the lyrics transcription process, Plaintiff
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`came to suspect that its “lyrics . . . were being misappropriated.” (Id. ¶¶ 48–49.)
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`c. Plaintiff investigates suspected misconduct and puts Defendants on notice of
`its findings
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`In August of 2016, in an effort to further investigate this suspected misappropriation,
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`Plaintiff created a “digital watermark to embed in certain lyrics appearing on its site”
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`(“Watermark #1”). (Id. ¶ 59.) Watermark #1 consisted of a “distinctive pattern of curly . . . and
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`straight apostrophes,” which, when converted into “dots” and “dashes,” “spells out
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`‘REDHANDED’ in Morse code.” (Id. ¶ 60.) In May of 2017, Plaintiff notified Google via
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`email that it had found Watermark #1 in Google’s lyrics Information Boxes, “prov[ing] that
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`Google was displaying lyrics copied from [Plaintiff’s] website.” (Id. ¶ 62.) In response to that
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`initial email and subsequent follow-up communications by Plaintiff, Google informed Plaintiff
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`that it was “looking into the issue.” (Id. ¶¶ 62–63.)
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`In October of 2018, Plaintiff “designed [and implemented] an experiment to more
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`systematically assess the incidence of lyrics misappropriated from [Plaintiff’s] website in
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`Google’s lyrics Information Boxes,” based on which Plaintiff “concluded that the incidence of
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`lyrics irrefutably copied from [Plaintiff’s] website in Google’s lyrics Information Boxes was
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`widespread and that the copying was systematic.” (Id. ¶¶ 64, 67.)
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`In April of 2019, Plaintiff “again notified Google, in writing, that it was displaying
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`content misappropriated from [Plaintiff’s] website,” in response to which Google eventually
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`4
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 5 of 36 PageID #: 239
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`“identified LyricFind as the source of the lyrics [in] the examples that [Plaintiff] provided to
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`Google.” (Id. ¶¶ 68, 70.) Plaintiff then “wrote to LyricFind to request that it cease and desist
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`from the misappropriation and commercialization of content appearing on [Plaintiff’s] website.”
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`(Id. ¶ 71.) Despite having been “placed on actual notice of their behavior,” Defendants failed to
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`take “any steps to cease such conduct.” (Id. ¶ 72.)
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`On June 16, 2019, the Wall Street Journal published an article detailing Plaintiff’s
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`allegations that Defendants had copied lyrics from Plaintiff’s website. (Id. ¶ 74.) On June 18,
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`2019, Google stated in a blog post that it had asked LyricFind “to investigate the issue to ensure
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`[it is] following industry best practices in [its] approach,” and affirmed Google’s commitment to
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`“uphold high standards of conduct for [itself] and from the partners [it] work[s] with.” (Id. ¶ 77.)
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`Soon after the article’s publication, Google began adding source attributions to its lyrics
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`Information Boxes, including attributions to LyricFind for lyrics that Plaintiff had previously
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`notified Google appeared to be taken from Plaintiff’s website. (Id. ¶ 81.) Around the same time,
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`Plaintiff “discovered that Watermark #1 had disappeared from Google’s lyrics Information
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`Boxes.” (Id. ¶ 82.) Suspecting “a deliberate effort . . . to conceal [continued] misappropriation
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`of lyrics from [Plaintiff’s] website,” Plaintiff created a second watermark, this time designed to
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`spell out the word “GENIUS” in Morse code (“Watermark #2”). (Id. ¶¶ 83–84.) Plaintiff then
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`watermarked one set of lyrics on its website with Watermark #1, a second group of lyrics with
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`Watermark #2, and a third set of lyrics with both Watermark #1 and Watermark #2. (Id. ¶ 85.)
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`In monitoring the three sets of lyrics, Plaintiff observed Watermark #2 on lyrics in both the
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`second and third groups, but did not observe Watermark #1 on any lyrics in either the first or
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`third group. (Id. ¶ 86.) In a number of instances involving lyrics in which Plaintiff had
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`embedded both Watermark #1 and Watermark #2, Plaintiff observed that Watermark #2, “the
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`5
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 6 of 36 PageID #: 240
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`details of which had not previously been made public,” was present, while Watermark #1 was
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`not. (Id. ¶ 88.)
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`On November 6, 2019, Plaintiff informed Google of these findings, and “demanded that
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`Google stop displaying lyrics misappropriated from [Plaintiff’s] website and address the issue.”
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`(Id. ¶ 90.) In response, Google asserted it had not done anything wrong, and stated that it had
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`“‘obtained additional assurances’ that their data partners ‘do not, and would not, obtain lyrics
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`from [Plaintiff’s] website.’” (Id. ¶ 91.)
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`d. State court action and removal to this Court
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`On December 3, 2019, Plaintiff commenced this action in the New York Supreme Court,
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`Kings County, asserting claims for (1) breach of contract, based on Defendants’ alleged violation
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`of Plaintiff’s Terms of Service, (id. ¶¶ 111–23, 128–40); (2) indemnification for “damages and
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`incurred expenses . . . including . . . attorneys’ fees and lost advertising and licensing revenue,”
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`pursuant to Plaintiff’s Terms of Service, (id. ¶¶ 124–27, 141–44); (3) unfair competition under
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`both New York common law and California Business and Professional Code § 17200 et seq., (id.
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`¶¶ 145–99); and (4) unjust enrichment, (id. ¶¶ 200–09). Plaintiff seeks money damages and
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`injunctive relief. (Id. at 49.)
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`On December 30, 2019, Defendants removed the action to this Court. (Notice of
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`Removal.) Defendants assert that the state law claims alleged in the Complaint all arise from “(i)
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`the alleged copying of digital transcriptions of copyrighted musical lyrics from [Plaintiff’s]
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`website by LyricFind, and (ii) the display of these copyrighted lyrics on Google’s website,” and
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`that “[t]hese are in essence claims for copyright infringement disguised as various state law
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`causes of action.” (Id. ¶ 4.) Defendants further assert that “this Court has original jurisdiction
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`[over the action] under 28 U.S.C. §§ 1331 and 1338,” and that the action “may be removed to
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`6
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 7 of 36 PageID #: 241
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`this Court [by Defendants], pursuant to 28 U.S.C. § 1441 et seq., because it is a civil action
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`containing purported state law claims which are preempted by Section 301(a) of the Copyright
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`Act, 17 U.S.C. § 301(a) and thus within the exclusive jurisdiction of this Court.” (Id. ¶ 8.)
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`On March 11, 2020, Plaintiff moved to remand the action to state court, arguing that
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`Defendants have not established that the Court has jurisdiction over this action because
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`Plaintiff’s claims are not preempted by the Copyright Act. (See Pl. Mot; Pl. Mem.)
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`II. Discussion
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`a. Standard of review
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`A notice of removal must allege a proper basis for removal under 28 U.S.C. §§ 1441–
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`1445. See In re Methyl Tertiary Butyl Ether Prods. Liab. Litig., 488 F.3d 112, 124
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`(2d Cir. 2007) (“In determining whether jurisdiction is proper, we look only to the jurisdictional
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`facts alleged in the Notices of Removal.”); Bankhead v. New York, No. 13-CV-3377, 2013 WL
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`6145776, at *1 (E.D.N.Y. Nov. 21, 2013) (“An effective petition for the removal of a state action
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`to federal court must allege a proper basis for the removal under sections 1441 through 1445 of
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`Title 28.” (quoting Negron v. New York, No. 02-CV-1688, 2002 WL 1268001, at *1 (E.D.N.Y.
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`Apr. 1, 2002))). The party seeking removal bears the burden of proving that the jurisdictional
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`and procedural requirements have been met. Cal. Pub. Emps.’ Ret. Sys. v. WorldCom, Inc., 368
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`F.3d 86, 100 (2d Cir. 2004) (“Where, as here, jurisdiction is asserted by a defendant in a removal
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`petition, it follows that the defendant has the burden of establishing that removal is proper.”).
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`b. Plaintiff’s claims are preempted by the Copyright Act
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`Defendants argue that “Plaintiff’s claims are wholly premised on Defendants’ alleged use
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`of musical lyrics, which are expressly identified as falling among the ‘works of authorship’
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`protected by the Copyright Act.” (Defs. Opp’n 7–8.) Defendants also argue that of the two-part
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`7
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 8 of 36 PageID #: 242
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`test to determine whether Plaintiff’s claims are preempted by the Copyright Act — the subject-
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`matter and the general scope requirements — “Genius concedes, as it must, that the subject
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`matter requirement is satisfied here.” (Id. at 7.)
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`Plaintiff argues that “the creation, curation, and provision of timely and accurate music
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`lyrics transcriptions . . . is not protected by the Copyright Act.” (Pl. Reply 2, Docket Entry No.
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`17.)
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`“The Copyright Act exclusively governs a claim when (1) the particular work to which
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`the claim is being applied falls within the type of works protected by the Copyright Act under 17
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`U.S.C. §§ 102 and 103, and (2) the claim seeks to vindicate legal or equitable rights that are
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`equivalent to one of the bundle of exclusive rights already protected by copyright law under 17
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`U.S.C. § 106.” Universal Instruments Corp. v. Micro Sys. Eng’g, Inc., 924 F.3d 32, 48 (2d Cir.
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`2019) (citing Briarpatch Ltd., L.P. v. Phoenix Pictures, Inc., 373 F.3d 296, 305 (2d Cir. 2004)).
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`“The first prong of this test is called the ‘subject matter requirement,’ and the second prong is
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`called the ‘general scope requirement.’” Briarpatch Ltd., L.P., 373 F.3d at 305 (quoting Nat’l
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`Basketball Ass’n v. Motorola, Inc., 105 F.3d 841, 848 (2d Cir. 1997)).
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`“The subject matter requirement is satisfied if the claim applies to a work of authorship
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`fixed in a tangible medium of expression and falling within the ambit of one of the categories of
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`copyrightable works.” Id. (citing Nat’l Basketball Ass’n, 105 F.3d at 848–49). “A work need
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`not consist entirely of copyrightable material in order to meet the subject matter requirement, but
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`instead need only fit into one of the copyrightable categories in a broad sense.” Id. (citing Nat’l
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`Basketball Ass’n, 105 F.3d at 848–50). “These categories encompass literary works and motion
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`pictures, including those based on preexisting works.” Id. (citations omitted).
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`8
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 9 of 36 PageID #: 243
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`“The general scope requirement is satisfied only when the state-created right may be
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`abridged by an act that would, by itself, infringe one of the exclusive rights provided by federal
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`copyright law.”3 Briarpatch Ltd., L.P., 373 F.3d at 305 (quoting Comput. Assocs. Int’l, Inc. v.
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`Altai, Inc., 982 F.2d 693, 716 (2d Cir. 1992)); Universal Instruments Corp., 924 F.3d at 48 (“‘A
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`state law right is equivalent to one of the exclusive rights of copyright if it may be abridged by
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`an act which, in and of itself, would infringe one of the exclusive rights.’” (internal quotation
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`marks omitted) (quoting Forest Park Pictures v. Universal Television Network, Inc., 683 F.3d
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`424, 430 (2d Cir. 2012)). “In other words, the state law claim must involve acts of reproduction,
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`adaptation, performance, distribution or display.” Briarpatch Ltd., L.P., 373 F.3d at 305 (first
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`citing 17 U.S.C. § 106; and then citing Comput. Assocs. Int’l Inc., 982 F.2d at 716). “‘But if an
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`extra element is required instead of or in addition to the acts of reproduction, performance,
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`distribution or display, in order to constitute a state-created cause of action,’ there is no
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`preemption.” Universal Instruments Corp., 924 F.3d at 48 (quoting Forest Park Pictures, 683
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`3 Section 106 of the Copyright Act establishes the exclusive rights held by a copyright
`right owner in copyrighted works. See 17 U.S.C. § 106. Section 106 provides, in relevant part:
`[T]he owner of copyright under this title has the exclusive
`rights to do and to authorize any of the following:
`(1) to reproduce the copyrighted work in copies or
`phonorecords; (2) to prepare derivative works based upon the
`copyrighted work; (3) to distribute copies or phonorecords of the
`copyrighted work to the public by sale or other transfer of
`ownership, or by rental, lease, or lending; (4) in the case of literary,
`musical, dramatic, and choreographic works, pantomimes, and
`motion pictures and other audiovisual works, to perform the
`copyrighted work publicly; (5) in the case of literary, musical,
`dramatic, and choreographic works, pantomimes, and pictorial,
`graphic, or sculptural works, including the individual images of a
`motion picture or other audiovisual work, to display the copyrighted
`work publicly; and (6) in the case of sound recordings, to perform
`the copyrighted work publicly by means of a digital audio
`transmission.
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`Id.
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`9
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 10 of 36 PageID #: 244
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`F.3d at 430 (internal quotation marks omitted)). “Preemption, therefore, turns on ‘what [the]
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`plaintiff seeks to protect, the theories in which the matter is thought to be protected and the rights
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`sought to be enforced.’” Id. (alteration in original) (quoting Comput. Assocs. Int’l, Inc., 982 F.2d
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`at 716); Briarpatch Ltd., L.P., 373 F.3d at 306 (“To determine whether a claim is qualitatively
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`different, [courts in this Circuit] look at what the plaintiff seeks to protect, the theories in which
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`the matter is thought to be protected and the rights sought to be enforced.” (alterations,
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`quotations, and citation omitted)). The Second Circuit has directed courts to “take a restrictive
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`view of what extra elements transform an otherwise equivalent claim into one that is
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`qualitatively different from a copyright claim.” Briarpatch Ltd., L.P., 373 F.3d at 306.
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`i. Plaintiff’s claims satisfy the subject matter prong
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`The transcribed song lyrics that are the subject matter of Plaintiff’s claims fall within the
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`type of works protected by the Copyright Act and therefore satisfy the subject matter prong.
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`To satisfy the “subject matter” prong, “a claim must involve a work ‘within the subject
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`matter of copyright.’” Forest Park Pictures, 683 F.3d at 429 (quoting 17 U.S.C. § 301(a)); see
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`also Briarpatch Ltd., L.P., 373 F.3d at 305 (“The subject matter requirement is satisfied if the
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`claim applies to a work of authorship fixed in a tangible medium of expression and falling within
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`the ambit of one of the categories of copyrightable works.”). “Copyright protection exists for
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`‘original works of authorship fixed in any tangible medium of expression,’ but does not extend to
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`an ‘idea, . . . regardless of the form in which it is described, explained, illustrated, or embodied.’”
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`Forest Park Pictures, 683 F.3d at 429 (quoting 17 U.S.C. § 102(a)–(b)). The Second Circuit has
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`held, “however, that works may fall within the subject matter of copyright, and thus be subject to
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`preemption, even if they contain material that is uncopyrightable under section 102.” Id. “The
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`10
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`scope of copyright for preemption purposes, then, extends beyond the scope of available
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`copyright protection.” Id. at 429–30.
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`“Under the Copyright Act, ‘[a] work is “fixed” in a tangible medium of expression when
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`its embodiment in a copy . . . , by or under the authority of the author, is sufficiently permanent
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`or stable to permit it to be perceived, reproduced, or otherwise communicated for a period of
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`more than transitory duration.’” Mourabit v. Klein, No. 19-2142-CV, 2020 WL 3042131, at *3
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`(2d Cir. June 8, 2020) (quoting 17 U.S.C. § 101). “The Act defines ‘[c]opies,’ in turn, as
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`‘material objects, other than phonorecords, in which a work is fixed by any method now known
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`or later developed, and from which the work can be perceived, reproduced, or otherwise
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`communicated, either directly or with the aid of a machine or device.’” Id. “The work is a form
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`of intangible property that can be physically embodied in (i.e., fixed in) any number of different
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`material objects (i.e., tangible mediums of expression).” Id. (quoting Matthew Bender & Co. v.
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`West Pub. Co., 158 F.3d 693, 699 n.9).
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`Plaintiff alleges in the Complaint that lyrics are copyrightable and that “music publishers
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`and/or songwriters usually own the copyright in the lyrics for a given song . . . .” (See Compl.
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`¶ 18; Pl. Opp’n 12 & n.4.) Because the subject of Plaintiff’s claims is the transcribed song
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`lyrics, and Plaintiff concedes that the lyrics themselves fall under federal copyright law, the
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`subject matter prong of the preemption test is met. See Saint-Amour v. Richmond Org., Inc., 388
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`F. Supp. 3d 277, 290 (S.D.N.Y. 2019) (concluding that “[t]he subject matter of the [p]laintiffs’
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`claims [was a] [s]ong” and “[t]he [s]ong [was] a musical composition and as such a paradigmatic
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`work protected by the Copyright Act” and finding the subject matter requirement met because
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`the plaintiffs “challeng[ed] the validity of the copyrights in a song, which fits into the
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`copyrightable category of musical works” (citing 17 U.S.C. § 102(a)(2))); Affiliated Records Inc.
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`11
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 12 of 36 PageID #: 246
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`v. Taylor, No. 09-CV-9938, 2012 WL 1675589, at *5 (S.D.N.Y. May 14, 2012) (“[T]here is no
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`question that the lyrics in the [s]ongs constitute copyrightable subject matter under [s]ection 102
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`of the Act.” (citing 17 U.S.C. § 102(a)(2))).
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`Moreover, the fact that the lyric transcriptions are fixed in writing further supports a
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`finding that Plaintiff’s claims are within the subject matter of copyright. See Forest Park
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`Pictures, 683 F.3d at 30 (“[B]ecause the ideas that are the subject of the claim were fixed in
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`writing — whether or not the writing itself is at issue — the claim is within the subject matter of
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`copyright.”).
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`Accordingly, the Court finds that the subject matter prong is met.
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`ii. Plaintiff’s claims satisfy the general scope requirement
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`Because the Court finds that the subject matter prong is met, the Court next considers
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`each of Plaintiff’s state law claims to determine whether they include an “extra element” in
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`addition to acts of reproduction, adaptation, performance, distribution or display that would
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`preclude preemption.
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`1. Breach of contract claims
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`In addressing its breach of contract claims, Plaintiff argues that “Defendants are bound by
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`[Plaintiff’s] Terms of Service, which impose on Defendants an obligation not to copy or scrape
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`[Plaintiff’s] Service for ‘commercial purposes,’” and that “[u]nder the law of the Second Circuit,
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`this independent, contractual obligation constitutes an ‘extra element’” which renders Plaintiff’s
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`claims asserted pursuant to its Terms of Service “qualitatively different from a Copyright Act
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`claim.” (Pl. Mem. 15.) In support, Plaintiff argues that “in order to prove its contract claims,
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`[Plaintiff] not only needs to prove that Defendants scraped content from its website, but also that
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`Defendants used it for ‘commercial endeavors,’” which Plaintiff asserts is an “‘extra element’
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`12
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`[that] makes [Plaintiff’s] breach of contract claims qualitatively different from its copyright
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`claim.” (Id. at 17.)
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`Defendants argue that the restrictions in Plaintiff’s Terms of Service “do no more than
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`protect against the unauthorized use, reproduction, adaptation, and distribution of the work in
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`question, which plainly falls within the general scope requirement of 17 U.S.C. § 106.” (Defs.
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`Opp’n 15.) In response to Plaintiff’s assertion that its breach of contract claims are different
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`from a copyright claim because Plaintiff must demonstrate both that Defendants scraped content
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`from its website and that they used the content for commercial endeavors, Defendants argue that
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`these assertions fail for separate reasons. As to the first provision of the Terms of Service
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`Plaintiff alleges Defendants breached, which “broadly states that a user may not ‘modify, copy,
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`frame, scrape, rent, lease, loan, sell distribute or create derivative works,’” this argument fails
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`because the “provision is nothing more than a recitation of exclusive rights reserved for true
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`copyright owners under [s]ection 106.” (Id. at 16 (quoting Compl. ¶¶ 119–20).) As to the
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`second provision, “which states that users may not use copyright content ‘for any commercial
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`purpose,’” the argument fails because “[Plaintiff] does not cite a single case that suggests that the
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`presence of ‘commercial use’ in a provision in a contract renders a breach claim qualitatively
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`different from a claim for copyright infringement.” (Id. (quoting Compl. ¶¶ 115–16, 132–33).)
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`In support, Defendants argue that each case cited by Plaintiff in which the court found no
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`preemption also involved a contractual provision that “had nothing to do with the unauthorized
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`use of copyrighted material,” and assert that “that plainly is not the situation here.” (Id. at 16
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`n.3.) Defendants further argue that the fact “that one provision of [Plaintiff’s] [Terms of
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`Service] agreement requires ‘commercial use’ may limit the scope of Plaintiff’s claim, but it
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`does not change its fundamental nature — what Plaintiff’s own Complaint describes as ‘conduct
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 14 of 36 PageID #: 248
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`breach[ing] [Plaintiff’s] Terms of Service regarding the copying and reproduction of [Plaintiff’s]
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`Content.’” (Id. at 17 (quoting Compl. ¶¶ 122, 139 (second alteration in original)).)
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`In response, Plaintiff argues that “Defendants cite to a number of cases where a party
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`who owns or controls copyright rights in the work at issue asserts contract claims — either in
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`addition [to] or in lieu of Copyright Act claims,” (Pl. Reply 6), and asserts that none of the other
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`cases cited by Defendants are “at all instructive here, as it is undisputed that the parties to this
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`action are not copyright holders and do not seek to possess or exercise the rights of a copyright
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`holder,” (id. at 7).4 Plaintiff argues that the fact “[t]hat parties like Google have paid to license
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`music lyrics transcriptions from companies like LyricFind demonstrates the value of licensing
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`the music lyrics transcriptions separate and apart from the value of the necessary predicate
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`license from the copyright owners” and that “companies . . . pay to license transcriptions from
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`[Plaintiff], often the very lyrics transcriptions Defendants are misappropriating.” (Id. at 2.)
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`The Second Circuit has noted that “preemption cannot be avoided simply by labeling a
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`claim ‘breach of contract,’” but rather, “[a] plaintiff must actually allege the elements of an
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`enforceable contract (whether express or implied-in-fact), including offer, acceptance, and
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`consideration, in addition to adequately alleging the defendant’s breach of the contract.” Forest
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`Park Pictures, 683 F.3d at 432. In Forest Park Pictures v. Universal Television Network, Inc.,
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`the Second Circuit considered whether the Copyright Act preempted the plaintiff’s implied-in-
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`fact breach of contract claim and “held the contract at issue not to be preempted because it
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`included an ‘extra element’ of a promise to pay, and plaintiff sought contract damages when
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`defendant used plaintiff’s copyrighted work without paying for the privilege.” Universal
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`4 Plaintiff also makes this same argument regarding the cases cited by Defendants as to
`Plaintiff’s state law claims for unjust enrichment and unfair competition. (See Pl. Reply 8 n.8, 9
`n.9.)
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`Case 1:19-cv-07279-MKB-VMS Document 22 Filed 08/10/20 Page 15 of 36 PageID #: 249
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`Instruments Corp., 924 F.3d at 49 (quoting Forest Park Pictures, 683 F.3d at 429). Although in
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`reaching its decision, the Second Circuit explicitly declined to “address whether preemption is
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`precluded whenever there is a contract claim, or only when the contract claim includes a promise
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`to pay,” Forest Park Pictures, 683 F.3d at 432, district courts in this Circuit have decided the
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`issue and are divided on the question of “‘whether the promise inherent in every contract is
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`sufficient to establish an “extra element.”’” Shepard v. Eur. Pressphoto Agency, 291 F. Supp. 3d
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`465, 472 (S.D.N.Y. 2017) (quoting BroadVision Inc. v. Gen. Elec. Co., No. 08-CV-1478, 2008
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`WL 4684114, at *4 (S.D.N.Y. Oct. 15, 2008)). Some district courts “follow the holding
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`in Architectronics, Inc. v. Control Systems, Inc., 935 F. Supp. 425 (S.D.N.Y. 1996), which held
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`that ‘[p]rotection from breach of contract, however, is not equivalent to copyright protection
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`because a contract claim requires an ‘extra element,’ that renders the claim qualitatively different
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`from a claim for copyright infringement: a promise by the defendant.’” Id. at 472–73 (quoting
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`Architectronics, Inc., 935 F. Supp. at 438); see also id. (collecting cases). Other district courts
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`“follow the holding in American Movie Classics Co. v. Turner Entertainment Co., 922 F. Supp.
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`926 (S.D.N.Y. 1996), which held that ‘a breach of contract claim is preempted if it is merely
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`based on allegations that the defendant did something that the copyright laws reserve exclusively
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`to the plaintiff (such as unauthorized reproduction, performance, distribution, or display).’” Id.
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`(quoting Am. Movie Classics Co., 922 F. Supp. at 931); see id. (collecting cases).
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`In recent years, the majority of district courts in this Circuit have followed the approach
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`taken in American Movie Classics Co. and have engaged in an analysis of the contractual
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`promises alleged in order to determine whether the Copyright Act preempts a breach of contract
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`claim. See, e.g., Be