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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 1 of 27
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
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`SONY MUSIC ENTERTAINMENT, SONY
`MUSIC ENTERTAINMENT US LATIN
`LLC, ARISTA RECORDS LLC,
`PROVIDENT LABEL GROUP LLC,
`RECORDS LABEL, LLC, and ZOMBA
`RECORDING LLC,
`
` Plaintiffs,
`
` v.
`
`TRILLER, INC.,
`
` Defendant.
`
`
`)
`) Civil Action No. 22-cv-7380 (PKC)
`)
`) FIRST AMENDED COMPLAINT
`)
`) TRIAL BY JURY DEMANDED
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`)
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`)
`)
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`Plaintiffs Sony Music Entertainment, Sony Music Entertainment US Latin LLC, Arista
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`Records LLC, Provident Label Group LLC, Records Label, LLC, and Zomba Recording LLC
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`(collectively, “Sony Music”), by and through their attorneys, for their Complaint against
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`Defendant Triller, Inc. (“Triller”), allege, on personal knowledge as to matters relating to
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`themselves and on information and belief as to all other matters, as set forth below:
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`NATURE OF THE ACTION
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`1.
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`This is a copyright infringement and contract action by Sony Music against Triller
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`for Triller’s willful and unauthorized use of Sony Music’s copyrighted sound recordings in
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`Triller’s commercial social media service; and for Triller’s failure and refusal to pay millions of
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`dollars in contractual licensing fees that Triller agreed to pay for the use of Sony Music’s
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`copyrighted content in Triller’s commercial service.
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`2.
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`Sony Music and its recording artists have been at the forefront of recorded music
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`for over a century. Sony Music produces, manufactures, distributes, sells, and licenses some of
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 2 of 27
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`the most iconic and popular sound recordings, by some of the most important recording artists of
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`all time. Through its enormous investments of money, time, and exceptional creative efforts,
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`Sony Music and its representative recording artists have developed, marketed, and distributed
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`some of the world’s most famous and popular music both in the United States and
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`internationally. As a result of these efforts, Sony Music owns and/or controls exclusive rights to
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`the copyrights in classic works ranging from Janis Joplin’s “Summertime” and Run DMC’s “It’s
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`Tricky,” to contemporary hits such as Doja Cat’s “Say So,” Lil Nas X’s “Old Town Road,”
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`Khalid’s “Location,” and 24kGoldn’s “Mood,” and countless other hits across generations.
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`3.
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`Sony Music works hard to ensure the widespread, authorized availability and
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`enjoyment of its recorded music, including by licensing its sound recordings for use by others.
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`When companies exploit Sony Music’s sound recordings for commercial benefit without
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`authorization, neither Sony Music nor its artists see a dime. Not only does this harm Sony Music
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`and the artists by depriving them of compensation, but it harms the public at large by reducing
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`the incentive to invest in the creation and dissemination of new music.
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`4.
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`Triller is the developer, distributor, and operator of a “social media and music
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`discovery experience” website and application, available at the triller.co domain and on iOS and
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`Android, respectively (collectively, the “Triller App”). The Triller App allows users to search
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`for and pick a sound recording from Triller’s audio library to listen to and include in “celebrity-
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`quality music video[s] starring you and your friends.” These videos are then posted to the Triller
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`App, allowing other users to stream or download the videos. The Triller App “has more than
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`350 million downloads.” Triller’s entire product, service and offering is built upon popular
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`music, including Sony Music’s copyrighted sound recordings, which Triller exploits through the
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`Triller App and its videos.
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 3 of 27
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`5.
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`Triller is a sophisticated party that purports to take intellectual property rights
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`seriously, at least when it benefits Triller. For example, in its Terms of Service, Triller defines
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`its own intellectual property rights in the broadest manner possible, and requires its users to
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`agree, as a condition of use, that any “unauthorized use of the [Triller’s intellectual property]
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`may violate copyright, trademark, privacy, publicity, communications, and other laws, and any
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`such use may result in your personal liability, including potential criminal liability.”
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`6.
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` Despite extolling the importance and value of “innovative technology and
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`intellectual property,” and claiming to hope that its efforts to curb copyright infringement “will
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`set a precedent for us and all content creators going forward that stealing is not going to be
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`tolerated,” Triller displays brazen contempt for the intellectual property rights of Sony Music, its
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`artists, and others.
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`7.
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`Recognizing the need for authorization to use Sony Music’s sound recordings and
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`the value of Sony Music’s catalog, Triller entered into a content distribution agreement with
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`Sony Music, effective September 1, 2016 (inclusive of all subsequent amendments, the
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`“Agreement”). In exchange for a licensing fee and other consideration, Sony Music authorized,
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`or agreed not to object to, Triller reproducing, distributing, publicly performing, creating
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`derivative works, displaying, and otherwise exploiting Sony Music sound recordings, artwork,
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`sound recording clips, user-created clips, and metadata (collectively, “Sony Music Content”)
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`through the Triller App, as detailed in Sections 4, 6 and 7 of the Agreement.
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`8.
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`In the past six months alone, Triller claims to have expanded extensively,
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`acquiring the companies Julius and Fangage, and touting a surge in usage of the Triller App.
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`Despite this self-proclaimed growth, Triller has failed and refused to make the required license
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`payments to Sony Music under the Agreement.
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`9.
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`While Triller had historically failed to make payments in a timely manner under
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`the Agreement, its failures recently escalated. Starting in March 2022, Triller failed to make any
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`monthly payments required under the Agreement, totaling millions of dollars. Failure to pay the
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`licensing fee is a breach of the Agreement. After months of Sony Music requesting that Triller
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`pay its outstanding and overdue fees, and near-total radio silence in response, Sony Music
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`notified Triller on July 22, 2022 that it was in material breach of the Agreement. After Triller
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`failed to substantively respond, much less cure, its breach of the Agreement by making payment,
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`Sony Music terminated the Agreement on August 8, 2022. In doing so, Sony Music expressly
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`informed Triller that its continued use of Sony Music Content would constitute willful copyright
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`infringement.
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`10.
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`After Sony Music terminated the Agreement on August 8, 2022, Triller had no
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`legal rights to use Sony Music Content on the Triller App. Nevertheless, Triller has continued to
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`reproduce, distribute, publicly perform, create derivative works, and otherwise exploit the
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`valuable Sony Music Content in connection with the Triller App.
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`11.
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`Triller’s conduct has caused and continues to cause substantial and irreparable
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`harm to Sony Music and its artists, while enriching Triller at the expense of Sony Music and its
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`artists. By this lawsuit, Sony Music seeks damages for Triller’s breach of the Agreement and
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`its willful infringement of Sony Music’s copyrights since the August 8, 2022 termination of the
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`Agreement; and an injunction to stop Triller’s willful and deliberate campaign of infringement
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`of Sony Music’s and its artists valuable sound recordings.
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`THE PARTIES
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`Plaintiffs
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`12.
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`Plaintiff Sony Music Entertainment is a Delaware general partnership, the
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`partners of which are citizens of New York and Delaware. Sony Music Entertainment’s
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`headquarters and principal place of business are located at 25 Madison Avenue, New York, New
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`York 10010.
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`13.
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`Plaintiff Sony Music Entertainment US Latin is a Delaware Limited Liability
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`Company with its principal place of business at 3390 Mary Street, Suite 220, Coconut Grove,
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`Florida 33133.
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`14.
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`Plaintiff Arista Records LLC is a Delaware Limited Liability Company with its
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`principal place of business at 25 Madison Avenue, New York, New York 10010.
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`15.
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`Plaintiff Provident Label Group LLC is a Delaware Limited Liability Company
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`with its principal place of business at 741 Cool Springs Boulevard, Franklin, Tennessee 37067.
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`16.
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`Plaintiff Records Label, LLC is a Delaware Limited Liability Company with its
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`principal place of business at 25 Madison Avenue, New York, New York 10010.
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`17.
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`Plaintiff Zomba Recording LLC is a Delaware Limited Liability Company with
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`its principal place of business at 25 Madison Avenue, New York, New York 10010.
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`18.
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`Sony Music is one of the most important record companies in the world, engaged
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`in the business of producing, manufacturing, distributing, selling, licensing, and otherwise
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`commercializing sound recordings in the United States and the world through various media. It
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`invests substantial money, time, effort, and talent in creating, advertising, promoting, selling, and
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`licensing unique and valuable sound recordings embodying the performances of its exclusive and
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`world-class recording artists.
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`5
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 6 of 27
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`19.
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`Sony Music owns and/or is the exclusive licensee of the copyrights and/or
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`exclusive rights in innumerable sound recordings, including the sound recordings listed on
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`Exhibit A, which is an illustrative and non-exhaustive list of some of the Sony Music works
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`infringed by Triller. All of the sound recordings listed on Exhibit A have been registered, or
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`filed pursuant to 17 U.S.C. § 1401, with the U.S. Copyright Office.
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`Defendant
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`20.
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`Defendant Triller, Inc. is a Delaware Corporation with its principal place of
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`business at 2121 Avenue of the Starts, Suite 2320, Los Angeles, CA 90067. Triller is registered
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`with the New York Secretary of State’s Office as an active business corporation in New York.
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`Triller listed its business address in the Agreement, including for delivery of any required notice
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`under the Agreement, as 133 West 19th Street 5A, New York, New York 10011. According to
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`Triller’s website, it has an office in New York.
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`JURISDICTION AND VENUE
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`21.
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`This is a civil action seeking damages and injunctive relief for copyright
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`infringement under the Copyright Act, 17 U.S.C. §§ 101, et seq. and breach of contract under
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`New York law.
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`22.
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`This Court has subject matter jurisdiction over this action pursuant to 17 U.S.C.
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`§§ 101, et seq., and 28 U.S.C. §§ 1331 and 1338, based on federal question jurisdiction, and 28
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`U.S.C. § 1367, based on the Court’s supplemental jurisdiction.
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`23.
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`This Court has personal jurisdiction over Triller pursuant to § 301 of New York’s
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`Civil Practice Law & Rules. Triller maintains an office in New York, employs individuals in
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`New York, and has pervasive corporate ties to the state that are sufficient to justify the
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`imposition of general jurisdiction in New York state.
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`24.
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`This Court also has personal jurisdiction over Triller pursuant to § 302 of New
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`York’s Civil Practice Law & Rules because, among other things: (a) Triller transacts business in
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`New York, including providing the Triller App to individuals in New York; (b) Triller has
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`committed tortious acts within New York, including publicly performing, reproducing,
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`displaying, distributing and creating derivative works of Sony Music sound recordings to
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`individuals in New York; (c) Triller’s breach of the Agreement and ongoing infringement of
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`Sony Music’s copyrighted works causes injury to, and is directed at, Sony Music, which is
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`mostly domiciled in the state of New York; and (d) Triller consented in Section 19.11 of the
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`Agreement to exclusive jurisdiction of Courts in New York County, New York of any
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`controversies regarding the Agreement.
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`25.
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`Venue is proper in this district under 28 U.S.C. §§ 1391. Venue is also proper in
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`this District because Triller agreed in Section 19.11 of the Agreement that any action concerning
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`the Agreement shall be brought in New York County courts and waived any objection to venue
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`in Courts in New York County, New York.
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`FACTUAL BACKGROUND
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`Sony Music’s Sound Recordings and Licensing Business
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`26.
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`Sony Music is home to some of the world’s most distinguished record labels,
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`including Columbia Records, RCA Records, Sony Nashville, Arista Records, and Epic Records,
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`through which it contracts with its world-class artists. Columbia Records and RCA Records are
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`among the world’s first record labels, dating back to the late 1800s and early 1900s, respectively.
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`27.
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`Sony Music’s roster includes some of the world’s most famous artists, spanning
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`over decades. In addition to well-known artists, Sony Music invests heavily in signing and
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`developing new artists, and in marketing and promoting their recordings.
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`28.
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`Sony Music is, and at all times relevant to this proceeding was, the sole owner or
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`exclusive licensee of all right, title, and interest in and to the copyrights in the sound recordings
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`at issue.
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`29.
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`The copyrights in the sound recordings at issue are valid and are registered, or
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`filed pursuant to 17 U.S.C. § 1401, with the United States Copyright Office.
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`30.
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`Sony Music commercializes its sound recording copyrights through physical
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`sales, digital distribution, and through licensing to third parties, among other ways.
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`31.
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`Licensing the use of sound recordings—including for use in internet-based
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`media—is a substantial revenue driver for all music companies, including Sony Music,
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`particularly over the last decade.
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`32.
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`For example, Sony Music regularly licenses its sound recordings for use by
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`streaming companies, such as Spotify and Apple Music, and social media platforms, such as
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`TikTok, Instagram, Facebook, and YouTube.
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`33.
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`Those who use or facilitate others’ use of Sony Music’s sound recordings,
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`whether in streaming services, social media, commercials, videos, or otherwise, are obligated to
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`follow copyright laws and ensure such use is authorized.
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`Background and Function of the Triller App
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`34.
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`Triller operates the Triller App, a music discovery experience and video-sharing
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`social media app first released in July 2015. The Triller App has been downloaded over 350
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`million times worldwide.
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`35.
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`Users of the Triller App can search for Sony Music sound recordings from a
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`music library created by Triller (the “Triller Audio Library”), which is created from copies of
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`copyrighted sound recordings obtained from Sony Music and other content owners. Each Sony
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`Music-owned or controlled sound recording in the Triller Audio Library was delivered to Triller
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`by or on behalf of Sony Music, and Triller is aware that Sony Music owns and controls each
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`such specific sound recording.
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`36.
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` From the Triller Audio Library, users can discover music. Triller streams each
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`sound recording in the Triller Audio Library to users of the Triller App. The Triller App also
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`curates lists of sound recordings in the Triller Audio Library that are “New Releases,” “Top
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`Picks,” and “#Viral.” Users can also search the Triller Audio Library by artist or sound
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`recording title.
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`37.
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`After selecting a Sony Music sound recording to serve as background music for
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`the user’s video, the user can select which portion of the sound recording they want to play
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`during their video, edit the video, and add filters. Triller’s software copies and distributes the
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`Sony Music sound recording to the user for use in the user’s video. The video is then uploaded
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`to the user’s Triller page and can also be saved on the users’ computer or device.
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`38.
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`Once uploaded, a video with the Sony Music Content can be streamed to others
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`on the Triller App, online, or on third-party social media platforms. Users of the Triller App can
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`also download other users’ videos, including Sony Music’s Content, and send a copy of videos to
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`others by email or by multimedia message service. Triller also streams videos to Triller App
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`users on a “For You” feed, which streams a playlist of popular and promoted videos in a row,
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`allowing Triller App users to “swipe” through videos depending on his or her interest.
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`39.
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`Videos on the Triller App are also organized by the sound recording embodied in
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`the video, making it easy for a user to identify the sound recording, view other videos with the
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`same sound recording, and make their own video using the same sound recording. Triller keeps
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`records tracking which sound recordings in the Triller Audio Library are incorporated into user
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 10 of 27
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`videos, how often, when the videos are posted, and how many views each video receives. Triller
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`also tracks which musical compositions are embodied in the sound recordings incorporated into
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`user videos and how often they are played, and reports that information to music publishers and
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`performing rights organizations. Triller has the ability to disable the creation of new videos
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`associated with any particular sound recording in the Triller Audio Library, remove any
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`particular video on the Triller App, and disable or delete the account of any particular Triller
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`App user.
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`40.
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`Triller generates revenue from use of the Triller App in at least the following
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`ways. First, a Triller App user may be served an advertisement or otherwise promoted content
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`on his or her “For You” feed. Second, Triller sells access to certain “Premium Content”
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`available only to users who pay for it, with Triller taking all or some of the revenue generated by
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`the users who purchase access to the Premium Content. Third, Triller sells merchandise through
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`the Triller App, which is accessed by a link on a user’s “For You” feed.
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`41.
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`Users of the Triller App are required as a condition of their use to agree to the
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`Triller Terms of Service (“Terms”), and these Terms generally confirm the ways Triller
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`generates revenue. The Terms require a user of the Triller App to agree that Triller “may
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`generate revenues, increase goodwill, or otherwise increase the value of [Triller], from your use
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`of the [Triller App] and any [user-generated content], and you will have no right to share in any
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`such revenue, goodwill or value whatsoever.” Separate “Premium Content Terms,” which
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`“govern any User-Generated Content certain users make available to other users in exchange for
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`payment” require a user to agree that “Users that make Premium Content available will be
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`provided the amount paid by each user for access to such Premium Content, subject to [Triller’s]
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`right, at its discretion, to retain, for itself, the partial or full payment made by users.”
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`42.
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`Triller’s revenue-generation methods are dependent upon the availability of Sony
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`Music Content, the creation of high-quality user-generated videos generated from Sony Music
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`Content, and other users watching and engaging with those videos containing Sony Music
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`Content. More and better videos generate more engagement, keeping users on the Triller App
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`for longer periods of time such that Triller can serve that user more ads. Higher-quality videos,
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`such as those containing Sony Music Content, may be sold as Premium Content, and users who
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`are generally engaged with and spend more on the Triller App are more likely to purchase
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`Premium Content.
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`43.
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`In addition, Triller uses the number of users, videos (including those containing
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`Sony Music Content), views (including of videos containing Sony Music Content), and other
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`metrics of activity on the Triller App to induce investment. Triller announced a planned IPO in
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`June of 2022. In connection with a recent press release regarding this anticipated IPO, Triller
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`touted that the Triller App has “over 750 million monthly interactions and over 300 million users
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`across all of its platforms.” Triller uses metrics like these to advertise the growth of its platform,
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`its potential for revenue generation, and induce investors to invest in Triller.
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`44.
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`Triller lures talented and popular video creators to the Triller App by including
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`Sony Music Content in the Triller Music Library and advertising Sony Music as a “Triller
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`Partner” on the same webpage that Triller touts the ability to “search from over 80MM songs and
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`stream right in the app.” These video creators see Sony Music’s popular and high-quality sound
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`recordings, know that they can use them to generate high quality user generated videos, and are
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`thus drawn to post videos on the Triller App. Triller App users, in turn, understand that their
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`favorite Sony Music sound recordings are included in user videos on the Triller App, and are
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`drawn to the Triller App to hear their favorite sound recordings and see the ways in which users
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 12 of 27
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`incorporate those sound recordings into videos. As explained above, all of this activity on the
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`Triller App leads directly to revenue to Triller.
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`45.
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`Triller retained the right and ability to supervise, approve, reject, and remove
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`users’ videos through the Terms, including for copyright infringement. The Terms require users
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`to agree that they will not “[i]nfringe our rights (including intellectual property rights) or those of
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`any third party in relation to your use of the [Triller App].” Triller further reserves the right
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`under the Terms to “remove, block, hide or otherwise delete” content that a user uploads to the
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`platform. Triller reserves the right to remove content that may be infringing with or without
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`notice to the infringer. Triller further reserves the right to “disable your account, suspend or
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`terminate your use of, or access to, the Platform (either in whole or in part),” “for any reason to
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`the extent possible under law.”
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`The Agreement
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`46.
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`Recognizing the need for a license to exploit Sony Music sound recordings,
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`Triller entered into the Agreement with Sony Music, effective September 1, 2016. The parties
`
`amended the Agreement several times, including the Eleventh Amendment, which was signed in
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`December 2021 and had an effective date as of December 1, 2020.
`
`47.
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`The Agreement contained several promises, covenants, representations, and
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`warranties from both Sony Music and Triller. Among these, and relevant to this complaint, Sony
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`Music granted Triller a non-exclusive, non-transferrable, non-delegable right to exploit Sony
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`Music sound recordings in the specific, limited ways identified in Section 4.01 of the Agreement,
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`and agreed not to object to Triller’s use of Sony Music’s Content in user-created videos in
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`Section 4.02 of the Agreement. In addition, in Section 5 of the Agreement, Sony Music agreed
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 13 of 27
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`to deliver to Triller Sony Music Content for use in the Triller Audio Library and by Triller users
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`as described in the Agreement.
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`48.
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`For its part, Triller agreed to pay a licensing fee to Sony Music in Section 6.01 of
`
`the Agreement. Under the Eleventh Amendment, Section 6.01 required Triller to make an initial
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`payment due at execution, followed by payments due on the first day of each month from March
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`1, 2022 through November 1, 2022. Collectively, the licensing fee covered Triller’s and its
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`users’ exploitation of Sony Music’s Content under the Agreement for the period of December 1,
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`2020 through November 30, 2022, totaling millions of dollars. To date, Triller has not paid any
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`of the monthly payments due under the Eleventh Amendment.
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`49.
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`Not surprisingly, the Agreement makes clear that Triller’s failure to make a
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`timely payment constitutes a Default Event. Section 1 of the Agreement defines a “Default
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`Event” as: Triller’s “failure to make timely payments required hereunder … which has not been
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`cured by [Triller] within ten (10) business days of [Triller’s]’s receipt of written notice thereof
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`(email being sufficient).”
`
`50.
`
`Under Section 7.05, Triller is required to pay interest on any payment that is not
`
`made on or before its due date.
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`51.
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`The Agreement further provided in Section 13.01 that “[i]mmediately following
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`the occurrence of any [Triller] Default Event…, in addition to any other rights and remedies
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`which either Party may have under this Agreement or otherwise, the non-defaulting party may,
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`upon written notice to the defaulting party, immediately terminate this Agreement and the
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`Term.”
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`52.
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`Section 7.01 and 7.03 of the Agreement also require Triller to provide Sony
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`Music with certain monthly and weekly reports, on a specific schedule, containing detailed
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`13
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 14 of 27
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`information about, among other things, the number of Triller users and activity involving Sony
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`Music’s sound recordings. Under Section 7.01(b), as amended by the Eleventh Amendment,
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`Triller is required to pay Sony Music certain non-recoupable, non-refundable Late Reporting
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`Fees, as defined therein, for each month that Triller fails to timely deliver required reports. Such
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`Late Reporting Fees “shall not apply in reduction of, or be cross-recoupable against, the Fees set
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`forth in Section 6.01(a) above, or any other fees or payments required to be made by Company
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`hereunder.”
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`53.
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`Section 13.02 of the Agreement provides that upon termination of the Agreement,
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`(1) all rights granted to Triller under the Agreement immediately terminate, including the right to
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`make use of any Sony Music Content, (2) Triller must immediately remove all references and
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`links to any and all Sony Music Content from the Triller App , and (3) all amounts then due or to
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`become due to Sony Music under the Agreement “become immediately due and payable without
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`presentment, demand, protest or other notice of any kind, all of which are hereby waived by
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`[Triller].”
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`54.
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`Section 13.03 of the Agreement specifies which provisions of the Agreement
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`“shall survive the termination or expiration of the Term.” None of the Section 4 grants of rights
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`described above are listed as surviving the termination of the Agreement.
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`55.
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`Triller also agreed in Section 19.07 of the Agreement that the Sony Music
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`Content “has a special, unique and extraordinary character which gives it a peculiar value, and
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`that, in the event of a material breach of any term, condition, representation, warranty, covenant
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`or agreement contained in this Agreement relating to the [Sony Music] Content, Sony Music
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`may be caused irreparable injury, including loss of goodwill and harm to reputation, which
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`cannot be adequately compensated in monetary damages.”
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 15 of 27
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`Default and Termination
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`56.
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`Despite signing the Eleventh Amendment in December 2021, Triller failed to
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`make the first monthly payment to Sony Music, due on March 1, 2022. Triller has failed to
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`make each and every monthly payment due under the Agreement thereafter. Triller also has not
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`paid interest on overdue fees.
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`57.
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`During the exact same months that Triller was failing to make licensing payments
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`to Sony Music, it went on a purchasing spree, announcing on March 28, 2022 the purchase of
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`Julius, an influencer marketing software platform, and announcing on April 25, 2022 the
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`purchase of Fangage, a platform for creators to host and sell content to their fans. In the press
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`releases announcing these acquisitions, Triller touted its app as an “open garden technology
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`platform for creators,” and highlighted the benefits the acquisitions would have for creators on
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`Triller. All the while, Triller neglected its payment obligations under the Agreement, preventing
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`Sony Music from compensating its creators—the world-class performers and artists who created
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`the sound recordings Triller incorporated into its users’ videos—for Triller’s use of their music.
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`58.
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`In response to Triller’s failure to make payment due under the Agreement in
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`March and April 2022, Sony Music contacted Triller in April 2022 inquiring when Sony Music
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`could expect payment. Triller stonewalled in response. Though Triller’s counsel indicated in
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`May 2022, that Triller would “like to make payments in a few weeks, or by the end of June,”
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`Triller still has not done so. Triller also failed to make any payment in May, June, July, or
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`August 2022.
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`59.
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`On July 22, 2022, Sony Music sent Triller a formal Notice of Material Breach of
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`the Agreement. Sony Music notified Triller that it had materially breached the Agreement by
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`failing to make the required payments due on March 1, 2022, April 1, 2022, May 1, 2022, June
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 16 of 27
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`1, 2022, and July 1, 2022. Sony Music further advised Triller that failure to cure this material
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`breach within ten business days would constitute a Default Event under the Agreement, pursuant
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`to which Sony Music would be entitled to terminate the Agreement.
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`60.
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`Notwithstanding the formal notice and demand, Triller failed to make any
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`payment in response to the Notice of Material Breach. Accordingly, on August 8, 2022, Sony
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`Music notified Triller via FedEx and email that the Agreement was terminated, and that any
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`further use of Sony Music’s Content by Triller would be, among other things, willful copyright
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`infringement.
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`61.
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`Triller has also failed to satisfy its reporting obligations under the Agreement,
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`including by failing to provide reports on the timeline and with the detail required under the
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`Agreement. For example, the limited reporting Triller provided does not include complete or
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`consistent information on Triller activity involving Sony Music’s sound recordings and the
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`reporting Triller has provided is often late.
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`Post-Termination Infringement
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`62.
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`After Sony Music terminated the Agreement on August 8, 2022, Triller had and
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`still has no license or authorization to exploit Sony Music Content on the Triller App.
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`Nevertheless, Triller continues to exploit Sony Music Content on the Triller App, and these
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`actions constitute willful direct and secondary copyright infringement.
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`63.
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`In particular, some Sony Music sound recordings provided to Triller in connection
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`with the Agreement remain available in the Triller Audio Library and continue to be streamed
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`from the Triller App and used in user videos. For purposes of this Complaint, Sony Music has
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`identified a sample of 55 Sony Music sound recordings available in the Triller Audio Library
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`after the termination of the Agreement on August 8, 2022, and confirmed that Triller publicly
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`Case 1:22-cv-07380-PKC Document 13 Filed 09/22/22 Page 17 of 27
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`performed these sound recordings weeks after the termination of the Agreement on August 8,
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`2022.
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`64.
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`Triller has also directly reproduced, distributed, and created derivative copies of
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`Sony Music’s sound recordings for incorporation into videos weeks after the termination of the
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`Agreement on August 8, 2022.
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`65.
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`Triller has also incorporated Sony Music sound recordings into Triller users’
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`videos, which Triller has distributed without authorization to Triller users who have saved such
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`videos weeks after the termination of the Agreement on August 8, 2022. For purposes of this
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`Complaint, Sony Music has confirmed that Triller distributed videos containing unauthorized
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`copies of Sony Music’s sound recordings weeks after Sony Music terminate