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Strick Motion

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    EDWARD C.GREENBERG 1184217 (NY)[email protected] C. Greenberg, LLC.570 Lexington Avenue, 17th FloorNew York, NY 10022Telephone: (212) 697-8777

    THOMAS M. REGELE, Esq. (SBN 089865)KAREN MOSKOWITZ, Esq. (SBN 109681)[email protected] Wilshire Blvd., Suite 1250Beverly Hills, California 90212Telephone: (310) 203-0808Facsimile: (310) 282-9101

    Attorneys for PlaintiffDavid Strick

    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA

    DAVID STRICK, an individual

    Plaintiff,

    vs.

    LOS ANGELES TIMESCOMMUNICATIONS LLC d/b/aLATIMES.COM; and TRIBUNECOMPANY, a DelawareCorporation

    Defendants.

    Case No: CV 11-04043-CBM (Ex)

    Assigned to the Hon. Consuelo B.

    Marshall

    PLAINTIFFS MEMORANDUM OFPOINTS AND AUTHORITIES INOPPOSITION TO DEFENDANTSMOTION TO COMPELARBITRATION AND STAYPROCEEDINGS; SUPPORTINGDECLARATIONS OF RICHARDRUSHFIELD, DAVID STRICK ANDKAREN MOSKOWITZ; AND,

    EXHIBITS A THROUGH K

    Hearing Date: August 1, 2011Time: 11:00 AMCourtroom: 2

    Action Filed: May 11, 2011

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 1 of 18 Page ID #:469

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    MEMORANDUM OF POINTS AND AUTHORITIES

    I. SUMMARY OF FACTSA.Plaintiffs BackgroundPlaintiff David Strick (Strick) has worked as a professional photographer

    since the early 1970s, doing a range of work from portrait to documentary

    photography. His clients have included Vanity Fair, Time Magazine, Newsweek,

    Sports Illustrated, The New York Times Magazine, Business Week, and Forbes,

    among others. Over time, Strick increasingly specialized in a form of candid,

    documentary-style, behind-the-scenes 35mm photography of the entertainment

    industry that was first most notably featured in hisbook Our Hollywood,

    published in 1988 by The Atlantic Monthly Press. (Strick Decl. 2). Strick has

    been referred to as the closest thing Hollywood has to an industry photographer and

    he is frequently given special and unique behind-the-scenes access to television and

    movie sets, where he captures the often poignant interplay between the reality of

    the filmmaking process and the fantasy of the film experience, in what Strick calls

    Hollywoods industrial magic. Strick gives film fans, critics and industry

    insiders alike their first look at the stars and crew actually filming upcoming

    television productions and movies, all of which has created a photography brand

    both distinctive and highly respected. (Complaint 17-18; Rushfield Decl. 2).

    In the mid-1990s, Strick began an 11 year relationship with Premiere

    Magazine, originating and photographing multi-page features as well as a monthly

    photo column that was first entitled The Martini (named for the last shot of the

    day on theatrical productions) and subsequently called David Stricks

    Hollywood. After Premiere folded in 2007, Strick created a proposal for a

    photography feature that would cover the production of movies, television,

    advertising and music videos, and would appear both in print and on the web, and

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 2 of 18 Page ID #:470

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    began discussions with publishing outlets including Entertainment Weekly, Yahoo

    and The Los Angeles Times regarding the possible implementation of his

    idea. Strick worked out an independent contractor arrangement with Defendant Los

    Angeles Times (the Times), and 2 years later when his agreement with the

    Times terminated, he began a similar web/print photo feature for The Hollywood

    Reporter, where his work can currently be viewed on a regular basis both in print

    and online. (Strick Decl. 2).

    B.Stricks Agreement with LA Times.comIn February 2007, Strick made a detailed proposal for an original, online,

    behind-the-scenes Hollywood photography feature to Rob Barrett, General

    Manager of LA Times.com, who in turn referred him to Richard Rushfield, then

    Entertainment Editor for the LA Times.com, who was overseeing the creation of

    the website and who negotiated with Strick for the feature eventually known as

    David Stricks Hollywood Backlot, a unique photo gallery of Stricks original

    and archival work that ran on the Times website and in print in the Times

    Calendar section and in its Sunday Magazine. (Strick Decl. 3; Rushfield Decl.2-

    3). The Backlot feature debuted with an enormously successful launch in May

    2008. Traffic for the first gallery (also referred to as story) for the upcoming

    motion picture Twilight was at such a high volume that the site crashed. Web

    traffic continued to be solid for the duration of the feature, typically in the range of

    200,000 page views per month, and the feature was eventually included as a regular

    gallery in dozens of additional Tribune owned properties throughout the United

    States. (Strick Decl.14).

    The first of three roll-over Archive License and Services Agreements was

    signed by Strick and the LA Times in December 2007. (Rushfield Decl. 4, Exh.

    A; Strick Decl9). Pertinent to the issue before this Court, in each of his

    agreements with the Times, Strick unequivocally retained his copyright to all

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 3 of 18 Page ID #:471

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    original and archival photographs, worked entirely independent of any supervision,

    direction or editorial control and was at all times the originator as well as the

    creator of his work. (Strick Decl 5-6; Rushfield Decl.5-6). As Rushfield attests

    to in his supporting Declaration: It was a clear understanding of the parties, stated

    expressly and unequivocally in the agreement, that David would at all time retain

    the copyright in and to his photographs and that, if and when the deal was

    terminated . . . all rights licensed to the Times pursuant to the agreement, except for

    those few expressly reserved, would revert back to David and all of his original

    and archival work would be removed from the website. I recall we discussed how

    the Times would take down his work from websites and remove the images from

    the Times database, among other things. These points were of considerable

    importance to David and an expressly negotiated condition of his participating in

    and lending his name to the Backlot feature. (Rushfield Decl.5, emphasis added).

    Rushfield goes on to confirm at Paragraph 6 of his Declaration: The use of the

    words commission and assignment in the cover memorandum and Original

    Agreement are a bit misleading, as there was no commissioned or assigned work

    per se under the Original Agreement. I do not recall a single instance where I or

    anyone else to my knowledge gave David an assignment. David was brought in

    specifically because of his years of work at Premiere and other entertainment

    publications, as well as his book Our Hollywood, which depicted unique behind-

    the- scenes on-set photography. . . David brought with him many years of

    professional contacts and a long track record of coming up with his own stories. A

    large part of Davids value as a photographer was that he had the ability to do an

    unusual range of entertainment stories without editorial or logistical support. . .

    (See, also, Strick Decl. 11).

    As important, the limited license under the Grant of Rights section of the

    agreement, as to original work taken during the term of the contract, only extended

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 4 of 18 Page ID #:472

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    to those images (pictures) that were accepted for publication as agreed upon with

    your editor. The clear intent and mutual understanding of the parties at the time

    the agreement was negotiated was that the Times was not getting a broad license

    to publish any and all pictures taken by David during the term of the contract, but

    only a limited license to publish those images (pictures) that were actually accepted

    for publication and published either online or in print. (Rushfield Decl. 8; Strick

    Decl. 20). In other word, and contrary to the strained interpretation of this

    operative phrase in Defendants moving papers, the simple act of delivering digital

    files to the Times digital holding area (known as the ftp site) for storage and

    safekeeping is not acceptance and, by the plain meaning of the contract and intent

    of the parties, the Times could not unilaterally accept anything. Stricks active

    engagement was essential as the publication of the Backlot feature was a

    collaborative process with his editor: In my experience, including my experience

    at the Times, only the work of staff photographers, or what is referred to generally

    as work for hire, which David was emphatically not, would be automatically

    owned and controlled by the publisher or employer. David was at all times an

    independent contractor, who retained ownership and control of his copyright and

    intellectual property. Further, as agreed upon with your editor in Davids case

    meant just that: No images would be accepted for publication or published before a

    collaborative process between David and a producer employed to work with him by

    The Times that typically occurred within days of the publication of the images and

    the release of the film or other theatrical production. Davids affirmative

    engagement was essential to any publication of his work.. (Rushfield Decl.9).

    C.Termination ofStricks Contract And Subsequent, DeliberateInfringements Of His Copyrights

    The final Archive License and Service Agreement dated January 1, 2010

    (Agreement) was signed by Strick but never executed by the Times. (Strick Decl.

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 5 of 18 Page ID #:473

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    19, Exb. B). On May 29, 2010 Strick received notice that his contract would not

    be renewed and his services no longer required as of June 2010. (Strick Decl. 21).

    Having fulfilled his contractual obligations for the six month period of the final

    contract (January through June 2010), Strick asked the Times, among other things,

    to delete from its ftp storage site 10 stories that were candidates for eventual

    publication in the event his contract was renewed beyond June 2010 (and that could

    only run after that date given the expected release dates of the movies) as the

    galleries remained his sole intellectual property and the Times had no permission or

    license for their use. (Strick Decl.22). The Times refused and months of

    frustrating, time consuming negotiations ensued with the Times inventing new and

    varied claims and cross-claims against Strick in the process. (Moskowitz Decl 2,

    6). Stricks efforts at obtaining a non-judicial intervention of his dispute, including

    by discussing mediation as an alternative dispute mechanism, failed and eventually

    the Times won the war of attrition and Strick walked away without the Times

    having deleted his by then registered copyrighted images from its digital storage.

    (Moskowitz Decl. 3; Strick Decl. 29).

    Beginning in December 2010, the Times and dozens of Tribune owned and

    operated websites began infringing on Stricks copyrights. Every one of the images

    that are the subject of Stricks claims in this action were uploaded to the Times

    ftp site but never accepted for publication or published and are therefore

    entirely outside the scope of the January 1, 2010 Agreement. (Strick Decl. 30

    38). The Times has offered no evidence to the contrary in its moving papers. The

    only competent evidence introduced by the Times was that Strick was paid for his

    services during the contract term January through June 2010 (never disputed) and

    that the Agreement contains an arbitration clause (again, not disputed). Strick

    completely delivered, in fact over delivered, work and services for the final contract

    period (Strick Decl. 37) and the copyrighted images that are the subject herein are

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 6 of 18 Page ID #:474

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    demonstrably outside the contract terms. This dispute should properly be

    adjudicated in Federal Court and Defendants Petition to Compel Arbitration denied.

    II. THE DISPUTE DOES NOT FALL WITHIN THE SCOPE OF THEPARTIES ARBITRATION AGREEMENT

    A.This Court Must Decide All Arbitrability Disputes As The Parties DidNot Clearly And Unmistakably State That It Was Their Intent To

    Submit This Threshold Issue to The Arbitrator

    Because gateway issues of arbitrability would otherwise fall within the

    province of judicial review, a more rigorous, heightened standard applies in

    determining whether the parties have agreed to arbitrate the question of

    arbitrability. The question is an issue for judicial determination [u]nless the parties

    clearly and unmistakably provide otherwise.AT & T Techs., Inc. v.

    Communication Workers, 475 U.S. 643, 649, 106 S.Ct. 1415, 89 L.Ed.2d 648

    (1986) (AT & T Techs., Inc.); First Options of Chicago, Inc. v. Kaplan, 514 U.S.

    938, 944, 115 S.Ct. 1920, 131 L.Ed.2d 985 (1995) (First Options.). In other words,

    it is assumed that the parties agreed that arbitrability issues are to be decided by the

    court unless the moving party proves that the contract language is sufficiently clear

    and unmistakable to constitute a submission of threshold issues of arbitrability to

    the arbitrator. (AT & T Techs., Inc., supra, at 649.) The Supreme Court has

    cautioned that it is not enough that ordinary rules of contract interpretation simply

    yield the result that arbitrators have the power to decide their own jurisdiction.

    Rather the result must be clear and unmistakable, because the law is solicitous of

    the parties actuallyfocusing on the issue. First Options, supra, 514 U. S. at pp.

    944-945, 115 S.Ct. 1920. Hence, silence or ambiguity is not enough.Id.

    Defendants have failed to meet their burden of proving that the parties clearly

    and unmistakably agreed to arbitrate questions of arbitrability. Notably, the

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 7 of 18 Page ID #:475

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    Agreement does notcontain any explicit language providing that the arbitrator is to

    decide all threshold arbitrability issues. Nevertheless, Defendants contend that the

    following language in the 2010 Agreement was sufficient to clearly and

    unmistakably provide that the arbitrator would have jurisdiction to decide his/her

    own jurisdiction:

    any and all claims, disputes or controversies between Plaintiff and

    The Times shall be resolved through mediation and binding

    arbitration in accordance with the most appropriate JAMS

    mediation/arbitration rules in effect at the time of delivery of the

    claim. The rules are incorporated by reference. (Compl., Exh. D

    III.6(b).

    Defendants reason that by incorporating JAMS rules by reference, some of

    which presently contain a rule specifying that the arbitrator shall have the

    power to determine jurisdiction and arbitrability issues (e.g., JAMS

    Comprehensive Rules and Procedures, Rule 11(c)), the parties clearly

    expressed their intention to accord the arbitrator the authority to determine

    this issue. Defendants reasoning is faulty for at least three reasons.

    First, the cited incorporation language is hopelessly vague and

    ambiguous as to the phrase most appropriate. Rather than specifying

    exactly which JAMS Rules are being incorporated, it refers merely to the

    most appropriate rules. Which JAMS Rules, among the multiple types and

    numerous rules within each type, are most appropriate? The Agreement

    does not say and the parties never focused on this issue in their discussion

    leading up to the subject agreements. (Moskowitz Decl 10; Strick Decl. 7).

    The default position on who decides arbitrability issues is undeniably a

    matter for judges, not arbitrators.AT & T, supra, 475 U.S. at pp. 648-649,

    106 S.Ct. 1415. It is reasonable to assume, therefore, that the parties intended

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 8 of 18 Page ID #:476

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    that any JAMS Rule that would empower the arbitrator to determine her own

    jurisdiction (such as the current Rule 11(c)), would notbe appropriate, as

    such arbitrability issues are normally and reasonably the province of the

    court. Id. Certainly, Plaintiff did not intend to vest power in the arbitrator to

    decide arbitrability issues. (Strick Decl., 7). Accordingly, at a minimum,

    there was no meeting of the minds on this term.

    Second, rather than incorporating existing rules, the language refers to

    rules in thefuture - those in existence at the time a claim is delivered. Who is

    to say what JAMS Rules might exist in the future when they are amended

    from time to time? Rule 11(c) might or might not exist. Incorporating future

    unspecified, most appropriate rules fails to even meet the basic

    requirements for a valid incorporation by reference under Californias

    contract law. To have a valid incorporation by reference, the document being

    incorporated must actually exist at the time of incorporation so the parties

    can know exactly what they are incorporating. (SeeIn re Plumels Estate

    (1907) 151 Cal. 77, 80.) To go beyond existing rules and allow for the

    incorporation of afuture unspecified rules, is not the kind of clear and

    unmistakable language that First Options requires.

    Third, the conclusion that the parties to the Agreement did not clearly

    and unmistakably intend to allow the arbitrator to determine arbitrability

    issues is further supported by the fact that the parties carved out a number of

    matters that are not subject to arbitration. The Agreement provides that the

    parties may seek, from a court of competent jurisdiction, provisional

    remedies or injunctive relief in support of their respective rights and

    remedies hereunder (Compl., Exh. D, Agreement III.6(e)) (emphasis

    added.) Plaintiff seeks injunctive relief as part of his statutory remedies in

    cause of action one through four for copyright infringement. Thus, although

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 9 of 18 Page ID #:477

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    one paragraph in the Agreement says that all claims and disputes are to be

    arbitrated, another provision indicates that the courts are the appropriate

    forum for some disputes, including the injunctive relief that Plaintiff seeks

    herein. When an agreement is ambiguous, the court and not the arbitrator

    should decide arbitrability so as not to force unwilling parties to submit a

    matter they reasonably thought a judge, not an arbitrator would decide. First

    Options, supra, 514 U.S. at p. 945;Hartley v. Superior Court(2011) ---Cal.

    Rptr.3d ---, 2011 WL 2535582 (Cal.App. 4 Dist.), *6.

    Defendants cited authorities are not persuasive.Dream Theater, Inc. v.

    Dream Theater(2004) 124 Cal.App.4th

    547,Bank of Am., N.A. v. Micheletti

    Family Pship, No. 08-02902 JSW, 2008 U.S. Dist. LEXIS 117100 (N.D.

    Cal. Oct. 14, 2008), and Contec Corp. v. Remote Solution Co., 398 F.3d 205,

    208 (2nd

    Cir. 2005) all involved broad, all-inclusive and unambiguous

    arbitration agreements and all involved incorporation ofexisting (not future)

    arbitration rules which were clearly identifiable (not amorphously referred as

    those most appropriate.) In those cases, unlike here, the parties could look

    up the arbitration rules to which they were agreeing beforehand and

    determine that they were conferring on the arbitrators the power to determine

    threshold arbitrability issues.

    More instructive are Gilbert Street Developers, LLC v. La Quinta

    Homes, LLC(2009) 174 Cal.App.4th

    1185, 1190-1194, where the court held

    that an arbitration provision incorporating the AAA rules existing at the date

    of arbitration (as opposedto those that actually existed as of the date of the

    agreement was signed)was not a clear and unmistakable delegation of

    authority to the arbitrator to decide arbitrability issues; James & Jackson,

    LLC v. Willie Gary, LLC(Del.2006) 906 A.2d 76, 78, 8081 (court, not

    arbitrator, decides arbitrability issue where arbitration clause incorporates

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 10 of 18 Page ID #:478

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    AAA rules but also provides that non-breaching party may seek injunctive

    relief and specific performance in court); and Katz v. Feinberg (2d Cir.

    2002) 290 F.3d 95, 9697 (despite incorporation of AAA rules, court, not

    arbitrator, decides arbitrability issue where purchase agreement ambiguously

    contains both a broadly wordedarbitration clause and a specific clause

    vesting accountants with sole authority to determine purchase price.)

    In sum, because the provisions in the Agreement: (1) ambiguously and

    invalidly incorporate future, unspecified JAMS Rules, which may or may not

    include an arbitrators right to determine arbitrability issues; and (2) provide

    that a party may seek provisional remedies and injunctive relief in court,

    which Plaintiff seeks herein, the parties did not clearly and unmistakably

    agree that the arbitrator would have jurisdiction to decide arbitrability issues.

    Accordingly, this Court should decide all arbitrability issues in the first

    instance.

    B.There Is No Reasonable Interpretation Of the Agreement ThatWould Encompass The Subject Copyright Infringements,

    Occurring Months After Defendant LA Times Terminated the

    Contract

    In cases subject to the Federal Arbitration Act, courts apply ordinary state

    law contract principles in deciding whether the parties agreed to arbitrate a

    particular dispute. First Options of Chicago, Inc. v. Kaplan (1995) 514 US 938,

    944; 115 S.Ct. 1920, 1924; Wagner v. Stratton Oakmont, Inc. (9th Cir. 1996) 83

    F3d 1046, 1049.

    In determining what disputes are subject to arbitration, under California law,

    the contract should be read as a whole and are to be interpreted to give effect to the

    mutual intention of the parties at the time of contracting, so far as the same is

    ascertainable and lawful. Cal. Civil Code 1638, 1648; Waller v Truck Ins.

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 11 of 18 Page ID #:479

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    Exchange (1995), 11 Cal.4th 1. Agreements to arbitrate are no different:

    [A]rbitration is a matter of contract and a party cannot be required to submit to

    arbitration any dispute which he has not agreed so to submit. United Steelworkers

    of America v. Warrior & Gulf Navigation Co., 363 U.S. 574, 582, (1960).

    Accordingly, the determination of what disputes are arbitrable is similarly focused

    on the intent of the parties. See, AT & T Techs., Inc.v. Communication

    Workers, 475 U.S. 643, 648-49, (1986).

    Here, the intent of the parties is manifest as to what constituted accepted for

    publication as agreed upon with your editor. (Rushfield Decl. 9; Strick12, 20).

    Despite the efforts of Defendants to create a fictitious narrative wherein the Times

    instructed and directed Strick regarding the work he did, seizing on words such as

    commissioned and assign to create the impression of a staff photographer doing

    work for hire during a certain term , the unambiguous and uncontroverted facts are

    that Strick contracted with the Times to deliver a photography feature consisting of

    a certain minimum number of image galleries per month, with a certain number of

    minimum images per gallery, and he more than fulfilled his end of the bargain.

    Defendants are attempting to capitalize on the fact that Strick uploaded digital files

    months in advance of publication, dictated by the production and release dates of

    the movies he photographed, in anticipation of his contract being renewed.

    Conflating delivery with acceptance and possession with ownership, Defendants

    simply want something of value for nothing.

    And, however broad the wording, an arbitration clause does not and cannot

    apply to disputes unrelated to matters covered by the contract.Lawrence v. Walzer

    & Gabrielson (1989) 207 Cal.App.3d 1501, 1506.

    III. THE RIGHT TO COMPEL ARBITRATION, IF APPLICABLE,SHOULD NOT APPLY TO TRIBUNE COMPANY.

    Tribune Company is neither a party nor a signatory to the Agreement. A

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 12 of 18 Page ID #:480

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    non-signatory to an agreement can only invoke the rights of the agreement and a

    right to compel arbitration if the claims against it are inextricably intertwined and

    inherently inseparable from those against a signatory to the agreement, or similarly

    based on a theory of equitable estoppel (See, Goldman v. KPMG, LLP, 173 Cal.

    App. 4th 209, 218 (Cal. App. 2d Dist. 2009);Molecular Analytical Systems v.

    Ciphergen Biosystems, Inc., 186 Cal. App. 4th 696, 715 (Cal. App. 6th Dist. 2010) ;

    Amisil Holdings Ltd. v. Clarium Capital Mgmt. LLC, 622 F. Supp. 2d 825, 830

    (N.D. Cal. 2007)). As shown below, Tribune cannot enforce the right to compel

    arbitration under the Agreement between Plaintiff and the LA Times under either

    situation.1

    A. Neither Tribune, Nor LA Times, Was A Signatory To TheAgreement.

    Preliminarily and notably, the January 1, 2010 Agreement was never fully

    executed, and never signed by the LA Times. Thus, Tribune makes a novel attempt

    to seek the benefits of an agreement never even signed by its subsidiary, LA Times.

    Defendants have not cited to any authority holding that a non-signatory to an

    arbitration agreement can compel a purported party to an unexecuted arbitration

    agreement to arbitrate its claims against the non-signatory, especially when the

    unexecuted agreement concerns copyrights and licensing arrangements where the

    United States Constitution and Federal statutes mandate that the intent of the parties

    be unambiguous, clear and manifest. For that reason alone, Tribune does not have

    standing and cannot compel Strick to arbitrate his claims.

    ///

    ///

    1As a non-signatory demanding arbitration, Tribunes status is first determined bythis Court, not an arbitrator. See, e.g., Carpenters 46 No. Calif. CountiesConference Bd. v. Zcon Builders (9th Cir. 1996) 96 F.3d 410, 414 (court mustdecide whether nonsignatory has standing to arbitrate);American Builder's Ass'n v.

    AuYang (1990) 226 Cal.App.3d 170, 179 (same).

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 13 of 18 Page ID #:481

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    B.The Claims Against Tribune And LA Times Arise Independent OfThe Unexecuted Agreement And Are Neither Identical Nor

    Inextricably Intertwined With Each Other; Rather, They Are

    Separate And Distinct.

    The case law relied upon by Defendants (Motion, pp. 13-14) presupposes

    that the claims against both the non-signatory and signatory are based on the

    agreement containing the arbitration clause, have identical factual allegations, and

    are inherently inseparable. Here, none of these predicates, let alone all three, is

    present.

    First, as explained in Section II, supra, Stricks claims against LA Times and

    Tribune do not arise from, and are outside of, the scope of the arbitration

    agreement. Simply put, the contemplated license and scope of the Agreement

    pertains only to those images accepted for publication or published by

    LATIMES.COM as agreed upon with your editor. Such images are neither in

    dispute, nor the subject of this action. (See 37 of the Strick Declaration for a

    description of the photo galleries that were licensed to the Times during the term of

    his last agreement, none of which images are at issue in this action). It is other

    specifically identified photographsby Strick, which were not accepted for

    publication or published by LATIMES during the term of the Agreement which

    are the subject of this lawsuit. (Rushfield Decl. 8-9; Strick Decl. 12, 20, 30-36.

    38, 40). These subject images were outside the scope of the Agreement and thus

    not subject to the terms therein, including Section III.6 (Arbitration). See,

    Mundi v. Union Sec. Life Ins. Co., 555 F.3d 1042 (9th Cir. Cal. 2009) (holding that

    the District Court properly denied defendants motion to compel arbitration because

    the claims were outside the scope of the arbitration provision); Goldman v. KPMG,

    LLP, 173 Cal. App. 4th 209, 230 ( 2009) (denying defendants motion to compel

    arbitration because the claims were not founded in or inextricably bound up with,

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 14 of 18 Page ID #:482

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    the terms of the operating agreement.) It does not follow that because Strick

    merely mentions the Agreement in the complaint, the claims are founded in,

    dependent upon or inextricably intertwined with the Agreement. See, e.g., Positive

    Software Solutions, Inc v. New Century Mortg. Corp., 259 F.Supp.2d 531, 540

    (N.D. Tex 2003). Stricks claims against Tribune are soundly based upon rights

    granted and guaranteed by the United States Constitution and Federal Statutes.

    Defendants inaccurately suggest (Motion, p. 14) that Plaintiff is attempting to

    play fast and loose with its commitment to arbitrate, honoring it when

    advantageous and circumventing it to gain undue advantage. Quite to the

    contrary, Plaintiff here never agreed to arbitrate over issues concerning the images

    which are the subject of this litigation and wholly outside the scope of the

    arbitration provisions. It is fundamental that the public policy favoring arbitration

    does not apply to disputes the parties have not agreed to arbitrate (See,AT&T

    Techs. v. Communs. Workers of Am., supra, 475 U.S. at 648;Engineers &

    Architects Assn. v. Community Development Dept. (1994)30 Cal.App.4th 644, 652-

    653. Under these circumstances, the equitable estoppels doctrine does not apply.

    Second, the claims against Tribune and LA Times are based on separate

    and distinctfactual allegations. While Strick alleges that LA Times unlawfully

    published numerous of Plaintiffs images to the LA Times website without

    Plaintiffs license, authorization, or consent, he separately avers that Tribune itself

    wrongfully published hundreds of Stricks images to websites that the Tribune, not

    LA Times, owns and controls, inter alia, KTLA-TV (CW) Los Angeles

    (www.ktla.com), KSWB-TV (FOX) San Diego (www.fox5sandiego.com), WPHL-

    TV (MY) Philadelphia (www.myphl17.com), KTXL-TV(FOX) Sacramento

    (www.fox40.com), WGN-TV (CW) Chicago (www.WGNtv.com), CLTV

    Chicagoland Television 24-Hour News (www.CLTV.com), WCCT-TV (CW)

    Hartford (www.ct.com), ddd, 5 news, wgn, Sun Sentinel (www.SunSentinel.com),

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 15 of 18 Page ID #:483

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    Daily Press (www.DailyPress.com), The Morning Call (www.mcall.com), and

    many others, in violation of his Constitutional and statutorily granted rights. 17

    U.S.C. 501 et seq., The Copyright Act. (Complt., 62-78; Strick Decl., 30

    - 36). In short, this is not a case where the parent company is named in the claims

    based upon misconduct solely committed by its subsidiary under a vicarious

    liability theory, agency allegation or the like, but rather, the parent company itself,

    separately and independently, violated Stricks copyrights.

    Third, Stricks claims against Tribune are separate and distinct from his

    claims against LA Times. Under Copyright Law, each infringement of a separate

    image, and each infringement by a separate infringer, constitutes a separate and

    distinct infringement (see, 17 U.S.C. 501; 504(c); Microsoft Corp. v. Evans,

    2007 U.S. Dist. LEXIS 77088, 16-17 (E.D. Cal. Oct. 16, 2007); Playboy Enters. v.

    Sanfilippo, 1998 U.S. Dist. LEXIS 5125 (S.D. Cal. Mar. 24, 1998)). Thus, each

    infringement by Tribune on websites other than the LA Times website constitutes

    an infringement separate and distinct from those claimed against LA Times (Id.).

    Here, if Strick had no claims against LA Times, then he would still have claims

    against Tribune as such claims involve separate and independent infringements of

    Plaintiffs copyrighted images. (Complt., First and Second Claims for Relief for

    Copyright Infringement under 17 U.S.C. 501, et seq. of the Copyright Act.)

    Defendants reliance on Fujian Pac. Elec. Co. v. Bechtel Power Corp., 2004

    U.S. Dist. LEXIS 23472 (N.D. Cal. Nov. 18, 2004), which held that a non-

    signatory parent may enforce the arbitration clause of an agreement executed by its

    subsidiary if failure to do so would render the arbitration proceedings with the

    subsidiary meaningless, is misplaced. Here, if Strick proceeded in litigation against

    Tribune, such would not affect an arbitration (if such were to occur) between

    Plaintiff and LA Times, as his claims against Tribune are separate and distinct, and

    stand on their own merit, from those as against LA Times. See,Mundi v. Union

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 16 of 18 Page ID #:484

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)MOTION TO COMPEL ARBITRATION AND STAY PROCEEDINGS

    Security Life Ins. Co., 555 F.3d 1042, 1047 (9th

    Cir. 2009); Goldman v. KPMG,

    LLP, supra, 173 Cal.App.4th at 230;Jones v. Jacobson (2011) 195 Cal. App. 4th

    1, 20- all finding that plaintiffs claims were not inextricably intertwined with or

    inherently inseparable from the agreement containing the arbitration provisions.

    For the many foregoing reasons, Plaintiff respectfully requests that if the

    Court grants defendant LA Times motion to compel arbitration, it should deny

    same with respect to Tribune, allowing Plaintiff to continue to litigate as against

    Tribune and exercise its discretion to stay any arbitration proceedings with the LA

    Times until such time as the Federal case against Tribune has resolved through

    judgment or otherwise.

    IV. CONCLUSIONPredating the Bill of Rights, the framers we so concerned with the rights of

    creators and their effect on society that at Article I, Sec. 8. Clause 8 of the United

    States Constitution, they provided for such rights lest they be left to less substantial

    documents by inserting, To promote the Progress of Science and useful Arts, by

    securing for limited times to Authors and Inventors the exclusive Right to their

    respective Writings and Discoveries. This right to secure a copyright is so central

    that it cannot be transferred, abrogated, waived or assigned except under very

    limited and specific, written conditions. The Copyright Act, USC Title 17, further

    specifies the rights and remedies available to creators as Congress has deemed

    appropriate time and again over the centuries.

    It is axiomatic that Federal Courts have exclusive jurisdiction over any civil

    matter arising under copyrights (28 U.S.C.S. 1338: Vestron, Inc. v. Home Box

    Office Inc., 839 F.2d 1380, 1381 (9th Cir. 1988).

    It is undisputed that Strick was the creator of and holds the copyrights in the

    subject images in this action. Rights granted by the Constitution are not easily or

    casually waived. In order for a copyright holder to validly and exclusively license

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 17 of 18 Page ID #:485

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    PLAINTIFFS MEMORANDUM OF POINTS AND

    AUTHORITIES IN OPPOSITION TO DEFENDANTS CV 11-04043-CBM (Ex)

    his work to another, his intent must be clearly and manifestly memorialized in an

    unambiguous writing (17 U.S.C. 204; Konigsberg Int'l v. Rice, 16 F.3d 355, 356-

    357 (9th Cir. Cal. 1994); Bieg v. Hovnanian Enterprises, Inc. 157 F.Supp.2d 475

    480 (E.D. Penn 2001). The reasoning is clear; the writing must be clear, specific

    and unambiguous to ensure both that the copyright holder does not give away his

    work and property rights inadvertently and that the parties understand precisely

    what they are bargaining for and describe the bounds of intangible rights that

    cannot be seen or felt.

    Here, there is no clear and manifest expression of intent on the part of Strick

    to license his copyrights. Plaintiff should be entitled to litigate his important

    property rights in this Court, and Defendants Motion to Compel should be denied.

    Respectfully Submitted on July 11, 2011.

    Edward C. Greenberg, LLC.

    EDWARD C.GREENBERG

    THOMAS M. REGELEKAREN MOSKOWITZ

    By:_____________/s/_______________Karen Moskowitz, Esq

    Attorneys for PlaintiffDAVID STRICK

    Case 2:11-cv-04043-CBM -E Document 17 Filed 07/11/11 Page 18 of 18 Page ID #:486


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