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DANIEL M. PETROCELLI S.B. #97802)[email protected] M. LENS (S.B. #283867)
[email protected] H. BISCAY (S.B. #266786)[email protected]’MELVENY & MYERS LLP1999 Avenue of the Stars, 7th FloorLos Angeles, California 90067-6035Telephone: (310) 553-6700Facsimile: (310) 246-6779
Attorneys for Twentieth Century FoxTelevision, a division of Twentieth CenturyFox Film Corporation, and FoxBroadcasting Company
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
TWENTIETH CENTURY FOXTELEVISION, a division ofTWENTIETH CENTURY FOX FILMCORPORATION, a Delaware company,et al.,
Plaintiffs,
v.
EMPIRE DISTRIBUTION, INC., aCalifornia corporation,
Defendant.
Case No. 2:15-cv-02158 PA FFMx)
DECLARATION OF MOLLY M.LENS IN SUPPORT OF FOX’SMOTION FOR SUMMARYJUDGMENT
Judge: Hon. Percy Anderson
Hearing Date: February 1, 2016Time: 1:30 p.m.Place: Courtroom 15
And related counterclaims
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TABLE OF CONTENTS
Title Page
Declaration Of Molly M. Lens In Support Of Fox’s Motion For Summary
Judgment ....................................................................................................................................... 1
Exhibit 1: Local Rule 7-3 Correspondence ................................................................................... 5
Exhibit 2: Fox’s Complaint For Declaratory Relief...................................................................... 7
Exhibit 3: Empire Distribution, Inc.’s Answer To Complaint .................................................... 35
Exhibit 4: Empire Distribution, Inc.’s Counterclaims ................................................................ 47
Exhibit 5: Excerpts Of Empire Distribution, Inc.’s Responses To Fox’s First Set
Of Interrogatories ......................................................................................................................... 72
Exhibit 6: Excerpts Of Empire Distribution, Inc.’s Responses to Fox’s Second Set
Of Requests For Admission ......................................................................................................... 81
Exhibit 7: Ted Cohen’s Expert Report ........................................................................................ 84
Exhibit 8: Deborah Jay’s Expert Report ..................................................................................... 90
Exhibit 9: Phil Johnson’s Expert Report ................................................................................... 110
Exhibit 10: Front & Back Covers Of DVD Set Empire: The Complete First
Season ........................................................................................................................................ 135Exhibit 11: DVD Set Empire: The Complete First Season ......................................................136
Exhibit 12: Labels Of DVDs Of Ten Episodes Of Season 2 Of Empire ..................................137
Exhibit 13: DVDs Of Ten Episodes Of Season 2 Of Empire ................................................... 142
Exhibit 14: Front & Back Covers Of Album Empire: Original Soundtrack From
Season 1 .....................................................................................................................................143
Exhibit 15: CD of Album Empire: Original Soundtrack
From Season 1 ........................................................................................................................... 144
Exhibit 16: Front & Back Covers Of Album Empire: Original Soundtrack Season
2 Volume 1 145
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Exhibit 19: Excerpts Of Amazon.com Sales Page For Empire: Music
From A Man Sinned Against ...................................................................................................... 149
Exhibit 20: Defendant’s Website On September 23, 2015 ....................................................... 151
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I, Molly M. Lens, the undersigned, hereby declare:
1. I am a member in good standing of the State Bar of California, an
attorney in the law firm of O’Melveny & Myers LLP, and counsel for plaintiffs and
counterclaim defendants Twentieth Century Fox Film Television, a division of
Twentieth Century Fox Film Corporation, and Fox Broadcasting Company
(collectively, “Fox”). I submit this declaration in support of Fox’s Motion For
Summary Judgment. I have personal knowledge of the facts set forth herein and, if
called to testify, could and would testify competently thereto.
2. On or about November 23, 2015, I sent an email to defendant’s
counsel, Peter Villar, requesting, pursuant to Local Rule 7-3, that the parties meet
and confer on this motion. A true and correct copy of my L.R. 7-3 correspondence
dated November 23, 2015 is attached hereto as Exhibit 1.
3.
On December 2, 2015, my colleague Cameron Biscay and I met-and-
conferred telephonically with Mr. Villar to discuss Fox’s anticipated motion for
summary judgment. Defendant declined to withdraw any of its claims to address
the issues and arguments we raised in our L.R. 7-3 discussions.
4. Attached hereto as Exhibit 2 is a true and correct copy of Fox’s
Complaint For Declaratory Relief (Dkt. 1), filed on or about March 23, 2015,
including Exhibit A thereto.
5.
Attached hereto as Exhibit 3 is a true and correct copy of Empire
Distribution, Inc.’s Answer To Complaint (Dkt. 15), filed on or about June 4, 2015.
6. Attached hereto as Exhibit 4 is a true and correct copy of Empire
Distribution, Inc.’s Counterclaims (Dkt. 16), filed on or about June 4, 2015.
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8. Attached hereto as Exhibit 5 is a true and correct copy of excerpts of
Empire Distribution, Inc.’s Responses To Fox’s First Set Of Interrogatories, served
on or about November 23, 2015. (Per paragraph 5(a) of the Court’s Scheduling
Order (Dkt. 23), Fox is only submitting excerpts of discovery responses and other
documentary evidence where Fox is only relying on a portion of the document in
question.)
9.
Attached hereto as Exhibit 6 is a true and correct copy of excerpts of
Empire Distribution, Inc.’s Responses to Fox’s Second Set of Requests for
Admission, served on or about December 2, 2015.
10. Attached hereto as Exhibit 7 is a true and correct copy of Ted Cohen’s
expert report, served on or about November 30, 2015.
11.
Attached hereto as Exhibit 8 is a true and correct copy of Deborah
Jay’s expert report, without its exhibits, served on or about November 30, 2015.
12.
Attached hereto as Exhibit 9 is a true and correct copy of Phil
Johnson’s expert report, without its exhibits, served on or about November 30,
2015.
13. Attached hereto as Exhibit 10 is a true and correct copy of the front
and back covers of the DVD set Empire: The Complete First Season. Fox lodged
herewith a true and correct copy of the DVD set Empire: The Complete First
Season, with the DVDs being designated as Exhibit 11.
14.
Attached hereto as Exhibit 12 is a true and correct copy of the labels
of the DVDs containing the episodes of Season 2 of Empire that have aired to date.
Each episode is on an individual DVD and, as there are 10 episodes to date in
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15. Attached hereto as Exhibit 14 is a true and correct copy of the front
and back covers of the album Empire: Original Soundtrack From Season 1, which
contains music from Empire’s first season. Fox lodged herewith a true and correct
copy of the Empire: Original Soundtrack From Season 1 album, with the CD being
designated as Exhibit 15.
16.
Attached hereto as Exhibit 16 is a true and correct copy of the front
and back covers of the album Empire: Original Soundtrack Season 2 Volume 1,
which contains music from the first ten episodes of Empire’s second season. Fox
lodged herewith a true and correct copy of the Empire: Original Soundtrack Season
2 Volume 1 album, with the CD being designated as Exhibit 17.
17.
Attached hereto as Exhibit 18 is a true and correct copy of excerpts of
the amazon.com sales page for Empire: Music From The Pilot , which contains
music from Empire’s pilot episode (i.e., the first episode of the first season). The
soundtracks from each episode of Empire from Season 1 follow this format, with
the album art comprised of a gold record label.
18.
Attached hereto as Exhibit 19 is a true and correct copy of excerpts of
the amazon.com sales page for Empire: Music From A Man Sinned Against , which
contains music from the ninth episode of Empire’s second season. The soundtracks
from each episode of Empire from Season 2 follow this format, with the album art
comprised of members of the fictional Lyon family with two lions.
19.
Attached hereto as Exhibit 20 is a true and correct copy of defendant’s
website, www.empi.re, as it existed on September 23, 2015. At my direction and
under my supervision, a paralegal at my law firm captured this image of
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EXHIBIT 1
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From: Lens, Molly
Sent: Monday, November 23, 2015 8:54 AM
To: Villar, Peter N.Cc: Gale, Paul L.; Bowler, John M.; [email protected]; Petrocelli, Daniel;
Biscay, Cameron H.; Ehlers, J. Hardy
Subject: Fox v. Empire Distribution
Peter -
We write to meet and confer in advance of our contemplated motion for summary judgment. We intend tomove for summary judgment on all claims based on the dispositive First Amendment defense; the lack of
likelihood of confusion; and the lack of famousness of Empire Distribution’s alleged marks. Pursuant to L.R.
7.3, please let us know when you are available to meet and confer. When you respond, please let us know ifyou anticipate moving for summary judgment on any claims.
With respect to the schedule, as you should be aware, Judge Anderson’s scheduling order provides that thecurrent deadline for summary judgment hearings is February 1. The scheduling order separately encourages the
moving party to provide more than the minimum twenty-eight (28) day notice for such motions. This means,
under the current schedule, summary judgment motion(s) will be filed prior to the completion ofdiscovery. Further, the motions themselves will likely be filed shortly before the holidays, with oppositions
falling over the Christmas/New Year holidays.
In light of this, we propose the parties stipulate to an extension of the summary judgment hearing deadline to
February 29 (leaving all other case deadlines in place). This would allow the parties to complete discovery
prior to summary judgment briefing and, of lesser importance, avoid any holiday conflicts. While the partiescan meet and confer to discuss the specific schedule, we propose the following, working backwards from theFebruary 29 hearing date: January 25: deadline to move for summary judgment, contemporaneous with the
close of discovery; February 4: opposition date; February 12: reply date (given the holiday of February 15).
To the extent your client is not willing to agree that the parties should jointly request that Judge Anderson move
the hearing to February 29, we ask that Empire Distribution stipulate that it will not oppose our forthcoming
summary judgment motion on 56(d) grounds.
We ask for your response by 10:00 am tomorrow, which will allow the parties to present any agreement toJudge Anderson for his consideration on Wednesday before the Thanksgiving holiday.
Molly ______________________________
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information. If you have received this transmission in error, please notify the sender immediately by reply e-mail and thendelete this message.
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EXHIBIT 2
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MARVIN S. PUTNAM S.B. #212839)[email protected] M. LENS (S.B. #283867)
[email protected]’MELVENY & MYERS LLP1999 Avenue of the Stars, 7th FloorLos Angeles, California 90067-6035Telephone: (310) 553-6700Facsimile: (310) 246-6779
Attorneys for Twentieth Century FoxTelevision, a division of Twentieth Century
Fox Film Corporation, and Fox BroadcastingCompany
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
TWENTIETH CENTURY FOXTELEVISION, a division ofTWENTIETH CENTURY FOX FILMCORPORATION, a Delaware company,and FOX BROADCASTINGCOMPANY, a Delaware corporation,
Plaintiffs,v.
EMPIRE DISTRIBUTION, INC., aCalifornia corporation,
Defendant.
Case No. 2:15-cv-2158
COMPLAINT FORDECLARATORY RELIEF
DEMAND FOR JURY TRIAL
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Plaintiffs Twentieth Century Fox Television (“TCFTV”), a division of
Twentieth Century Fox Film Corporation (“TCFFC”), and Fox Broadcasting
Company (“FBC”) (collectively, “Fox”), for their complaint against defendant
Empire Distribution, Inc., allege as follows:
NATURE OF THE ACTION
1. Fox brings this action to protect its intellectual property rights in and
to its breakout fictional television series Empire. Even though the series onlydebuted on January 7, 2015, Empire has already become a cultural phenomenon.
To date, each episode of Empire has attracted more viewers than the prior
episode—a feat that no other show in the last 23 years has accomplished. FBC
recently renewed the series for a second season.
2. Fox seeks a declaration pursuant to 28 U.S.C. § 2201 that Empire, and
the release of music therefrom, does not violate any of defendant’s purported
trademark rights. This action has been necessitated by defendant’s meritless claims
of trademark infringement and dilution, as well as unfair competition, and its
attendant demands for millions of dollars.
PARTIES
3. TCFFC is a corporation organized and existing under the laws of
Delaware, having its principal place of business at 10201 West Pico Boulevard, Los
Angeles, California 90064. TCFFC owns the intellectual property rights in and to
the fictional television series Empire and the music therefrom, including copyright
and trademark rights.
4. TCFTV is a television studio engaged in the business of creating and
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6. Defendant Empire Distribution, Inc. is a California corporation with a
principal place of business at 375 Portrero Avenue, Suite 5, San Francisco,
California 94103. On information and belief, defendant is a music record label and
music distribution company engaged in the business of live and recorded music
production, distribution, and sales.
JURISDICTION AND VENUE
7.
This is an action for declaratory relief brought under 28 U.S.C.§§ 2201 et seq.; under the Lanham Act, 15 U.S.C. §§ 1125(a) and 1125(c); and
under state unfair competition law, California Business and Professions Code
§§ 17200 et seq. This Court has federal question subject matter jurisdiction over
the federal claims pursuant to 28 U.S.C. §§ 1331 and 1338(a) and 15 U.S.C. §
1121. This Court has subject matter jurisdiction over the state law claim under 28
U.S.C. § 1338(b) and the doctrine of supplemental jurisdiction.
8. This Court has personal jurisdiction over defendant because defendant
is incorporated and domiciled in California.
9.
Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b)(2)
because a substantial part of the events giving rise to Fox’s claims against
defendant occurred in the Central District of California. Fox created, produces,
distributes, exhibits, and sells the purportedly infringing properties in this District;
attempted to resolve the dispute with defendant in this District; and received threats
of litigation and cease-and-desist letters from defendant in this District. Venue is
also proper in this Court pursuant to 28 U.S.C. § 1391(b)(1) because defendant
directed its cease-and-desist letters to this District and also, on information and
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dealer turned music mogul Lucious Lyon (played by Academy Award-nominee
Terrence Howard) is diagnosed with a fatal disease, viewers watch his ex-wife,
Cookie (played by Academy Award-nominee Taraji P. Henson), and their three
sons fight for future control over Lucious’ powerhouse music and entertainment
company. This fictional company is fittingly called “Empire Enterprises,” as it is a
veritable—and fantastical—conglomerate based in New York City. In addition to
producing hip-hop and R&B hits, Empire Enterprises is portrayed to own anightclub, make champagne and sneakers, and generate over $343 million in annual
revenue.
11. By all accounts, Empire is a massive hit, garnering widespread
attention, critical acclaim, and unprecedented ratings success. For example, Empire
has set multiple viewership records since its debut. Its recently-aired season finale
reached 16.7 million same-day viewers. This represented an entire season in which
each episode attracted more viewers than the last. No program has accomplished
even five weeks of consecutive viewership growth under the modern system for
measuring viewership, in place for over two decades. FBC renewed Empire for asecond season on January 17, 2015.
12. Music is, not surprisingly, featured prominently on Empire. This
music includes original songs produced for the show by Grammy Award-winning
producer Timothy “Timbaland” Mosley. Through Columbia Records, Fox releases
songs following the broadcast of each new episode, and it recently released an
Empire compilation soundtrack (collectively, the “Soundtrack Music”). The album,
Empire: The Original Soundtrack from Season 1, debuted as the number one
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DEFENDANT’S ALLEGED TRADEMARKS
13. Defendant claims rights to three purported trademarks: “Empire,”
“Empire Distribution,” and “Empire Recordings.”
14. Defendant has never applied for federal registration of a trademark in
“Empire.”
15. Defendant’s January 24, 2014 application for registration of “Empire
Distribution” to identify various non-electronic music recordings is pending, andwas initially denied by the United State Patent and Trademark Office (the
“USPTO”) due to a likelihood of confusion with “Empire Entertainment” and
“DVD Empire.” The USPTO has not yet taken action on defendant’s December 10,
2014 application for registration of “Empire Distribution” to identify electronic
delivery of musical recordings.
16. Defendant’s January 24, 2014 application for registration of “Empire
Recordings” to identify various non-electronic music recordings is pending, and it
was initially denied by the USPTO due to a likelihood of confusion with “Empire
Entertainment” and “DVD Empire.”17. Defendant claims to use the logo below:
Fig. 1.
18. Upon information and belief, the Empire Distribution logo does not
generally appear on its album covers.
19 Upon information and belief Empire Distributions Inc was not
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page. None of the other hits on the first six pages were related to defendant. And
the entries on the first six pages are predominantly for other record labels with
“empire” in their name, such as Empire Records, Royal Empire Records, American
Empire Records, and Empire State Recordings.
21. On March 23, 2015, a Google search for “Empire Distribution Inc.”
displayed defendant’s website as the fifth result, with none of the earlier entries
referring to defendant.22. Empire is a common word in trademarks, including in the
entertainment field. For example, just in the State of California, there are
companies doing business as Empire Recordings LLC; Dark Empire Recordings
LLC; Empire Entertainment, Inc.; Empire Entertainment Productions, Inc.; Empire
Media Center; and Empire Publishing, Inc. There is even a film called Empire
Records. Outside the State of California, as well as outside the entertainment field,
there are myriad more Empire-related marks.
FOX’S USE OF THE WORD “EMPIRE”
23.
Empire is the title of Fox’s breakout dramatic series. EmpireEnterprises is the name of the fictional company at the heart of the series. The
Soundtrack Music also prominently bears the Empire series logos along with other
indicia from the series so that consumers can associate it with the television show.
24. Fox has spent hundreds of thousands of dollars to advertise and
promote the series. These efforts included developing consistent branding. For this
reason, Fox uses several, related logos to identify Empire and the music therefrom.
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25. The following two logos are exemplars of those used to promote the
series itself:
Fig. 2.
Fig. 3.
26. The following two logos are exemplars of those used to promote the
Soundtrack Music:
Fi 4
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Fig. 5.
DEFENDANT’S CLAIMS
27. On February 16, 2015—three days after Empire increased viewership
for a then-record fifth straight week and claimed a total viewership of 11.9
million—defendant sent Fox a claim letter, authored by outside counsel, accusing
Fox of using defendant’s alleged marks without authorization. See Exhibit A.
28. This letter claimed trademark infringement under sections 1114 and
1125(a) of the Lanham Act. Defendant claimed that use of the word “Empire”
somehow confused defendant’s customers, artists, and business partners as to
whether the series and its music are somehow affiliated with defendant. 29. This letter also accused Fox of trademark dilution by tarnishment.
Defendant’s theory is that “ Empire’s portrayal of a label run by a homophobic drug
dealer prone to murdering his friends threatens to tarnish [defendant’s] brand and
harm [its] goodwill.”
30.
Defendant demanded that Fox issue document preservation notices for
all records that are potentially relevant to this dispute.
31. During a subsequent March 6, 2015 telephone call, defendant, also
g gg g #:667
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“options” to settle the claims made against it: (1) Fox could pay $5 million and
include artists that defendant represents as “regular guest stars” on the fictional
television series Empire; (2) Fox could pay defendant $8 million; or (3) Fox could
stop using the word “Empire.”
33. Faced with defendant’s increasing claims and demands, Fox
commences this action to affirm its rights.
COUNT ONE-DECLARATORY JUDGMENTREGARDING FEDERAL TRADEMARK INFRINGEMENT
(28 U.S.C. §§ 2201 et seq . and 15 U.S.C. § 1125(a))
34. Fox repeats and realleges each allegation contained in paragraphs 1
through 33 of this complaint as if fully set forth herein.
35. Defendant has alleged that the fictional television series Empire and
the related Soundtrack Music infringe its purported trademark rights in “Empire,”
“Empire Distribution,” and “Empire Recordings.” Defendant has further made
demands for millions of dollars to settle these purported claims. By virtue of
defendant’s conduct, Fox has a real and reasonable apprehension of litigation and
has been brought into adversarial conflict with defendant.
36. Defendant’s conduct threatens to place a cloud over Fox’s intellectual
property rights in the fictional television series Empire and the Soundtrack Music.
37. By reason of the foregoing, there now exists between the parties an
actual and justiciable controversy concerning Fox’s and defendant’s respective
rights with respect to the use of the word “Empire.”
38. The aforesaid declaration is necessary and appropriate at this time so
#:668
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in connection with the Soundtrack Music does not infringe defendant’s trademark
rights, if any.
COUNT TWO-DECLARATORY JUDGMENT
REGARDING FEDERAL TRADEMARK DILUTION
(28 U.S.C. §§ 2201 et seq . and 15 U.S.C. § 1125(c))
41. Fox repeats and realleges each allegation contained in paragraphs 1
through 33 of this complaint as if fully set forth herein.42. Defendant contends that Fox’s portrayal of the main character in the
fictional television series Empire dilutes, by tarnishment, its purported trademark
rights in “Empire,” “Empire Distribution,” and “Empire Recordings.” Defendant
has further made demands for millions of dollars to settle these purported claims.
By virtue of defendant’s conduct, Fox has a real and reasonable apprehension of
litigation and has been brought into adversarial conflict with defendant.
43. Defendant’s purported marks are not “famous marks” entitled to
protection under 15 U.S.C. § 1125(c)(1).
44.
Defendant’s conduct threatens to place a cloud over Fox’s intellectual
property rights in the fictional television series Empire and the Soundtrack Music.
45. By reason of the foregoing, there now exists between the parties an
actual and justiciable controversy concerning Fox’s and defendant’s respective
rights and obligations with respect to the use of the word “Empire.”
46. The aforesaid declaration is necessary and appropriate at this time so
that Fox’s right to continue its conduct can be affirmed.
47. Fox has no adequate remedy at law.
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2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
COUNT THREE-DECLARATORY JUDGMENT
REGARDING STATE UNFAIR COMPETITION
(28 U.S.C. §§ 2201 et seq. and Cal. Bus. Prof. Code §§ 17200 et seq .)
49. Fox repeats and realleges each allegation contained in paragraphs 1
through 33 of this complaint as if fully set forth herein.
50. Defendant contends that Fox’s use of the mark “Empire” in the title of
its fictional television series, in connection with the fictional entity “EmpireEnterprises,” and in connection with the Soundtrack Music constitutes unfair
competition. Defendant has further made demands for millions of dollars to settle
this purported claim. By virtue of defendant’s conduct, Fox has a real and
reasonable apprehension of litigation and has been brought into adversarial conflict
with defendant.
51. Defendant’s conduct threatens to place a cloud over Fox’s intellectual
property rights in the fictional television series Empire and the Soundtrack Music.
52. By reason of the foregoing, there now exists between the parties an
actual and justiciable controversy concerning Fox’s and defendant’s respectiverights with respect to the use of the word “Empire.”
53. The aforesaid declaration is necessary and appropriate at this time so
that Fox’s right to continue its conduct can be affirmed.
54. Fox has no adequate remedy at law.
55.
Accordingly, Fox seeks, pursuant to 28 U.S.C. § 2201, a judgment
from this Court that Fox’s use of the word “Empire” in the title of its fictional
television series, in connection with the fictional entity “Empire Enterprises,” and
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19
20
21
22
23
fictional television series, in connection with the fictional entity “Empire
Enterprises,” and in connection with the Soundtrack Music does not:
i.
Infringe, dilute, or otherwise violate any of defendant’s
trademark rights;
ii. Violate Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a);
iii. Violate Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(c);
iv.
Violate California Business and Professions Code §§ 17200 et seq.;
v. Violate any applicable common law or statutory unfair
competition law;
B. For a permanent injunction enjoining defendant, and its agents,
servants, employees, attorneys, successors and assigns, and all persons, firms and
corporations acting in concert with it, from making false statements and
representations to third parties asserting that Fox has violated its trademark rights,
if any;
C.
For Fox’s attorney fees and costs incurred; andD. For such other and further relief as the Court deems just and equitable.
Dated: March 23, 2015 MARVIN S. PUTNAM
O’MELVENY & MYERS LLP
By: /s/ Marvin S. Putnam Marvin S. Putnam
Att f T ti th C t F
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20
21
22
23
DEMAND FOR JURY TRIAL
Pursuant to Rule 38(b) of the Federal Rules of Civil Procedure, Fox hereby
demand a trial by jury for all issues triable to a jury.
Dated: March 23, 2015 MARVIN S. PUTNAMO’MELVENY & MYERS LLP
By: /s/ Marvin S. Putnam Marvin S. Putnam
Attorneys for Twentieth Century FoxTelevision, a division of TwentiethCentury Fox Film Corporation, and FoxBroadcasting Company
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ExhibitA
#:673
MI
CdE
L
r’OEBS
JR
X
TROUTVAN
SANDERS
LLP
Case 2:15-cv-02158 Document 5 Filed 03/23/15 Page 3 of 20 Page ID #:22Case 2:15-cv-02158-PA-FFM Document 41-4 Filed 12/15/15 Page 26 of 176 Page ID #:674
8/20/2019 Empire Declaration
26/176
l U
V
fl
Bank
of
A
me rc
P za
mcbael
hc
tbs r
cuIrn
asa
des
corn
O Peach ree Streel
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AIa
ta
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og:a
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ephone
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F
ebr
uary 1
6, 20
15
VIA
FED
ERA
L
E
XPR
ESS
Ge
rson
A
. Zw
eifac
h. Es
q.
G
roup
G
ener
al
C
ouns
el
Tw
ent
y-Fi
rst
C
ent
un’
Fox
,
Inc
.
12
11
A
venu
e of A
me
ricas
8
th
Floo
r
N
ew Y
ork
,
N
Y
1
003
6
R
e:
EM
PIRE
TM
Tr
adem
ark
Inf
ringe
men
t
De
ar
Mr
.
Z
weif
ach:
Our
firm
re
pres
ents Em
pire D
istri
bu ti
on In
c. “E
mp ir
e” ,
a we
ll-kn
own mus i
c rec
ord
l
abel
and
m
usic d
istrib
utio
n
co
mpa
ny th
at
has
rele
ased
alb
um s
in
a
w
ide
va
riety
of genr
es ,
but
spec
ifica
lly foc
usin
g
on
h
ip
hop
,
rap ,
and R
B
, un
de r the
ma
rks
EMP
IRE
TM,
EM
PIRE
DISTRIBUTIONTM and
EMPIRE
RECORDINGSTM
t he “Marks”)
see
http://empLre or
ww
w.em
pir
edist
ribu
tion.
com
.
O
ver
th
e
p
ast fiv
e yea
rs,
Em
pir e
has bec
ome
o
ne
of t
he lar
ge st
distr
ibuto
rs and
pro
duce
rs of d
igita
l
m
usic
in the c
oun
try.
It has h
ad
num
ero
us
Bill
boar
d char
ting
re
lease
s
f
rom well
-rec
ogni
zed artis
ts u
nder
its
lab el
,
havi
ng
par
tner
ed
wi
th no
tabl
e ar t
ists
such as
Ke
ndric
k
La
mar
, Mig
os. T
he Fo
reig
n Exc
han
ge a
nd
Sno
op
Dog
g. Song
s
rele
ased
b
y E
MP
IRE
R
EC
ORD
ING
S
h
ave
earn
ed
pla
tinu
m an
d
g
old
r
ecord
s
a
nd
th
e
lab
el
has spon
sore
d
so ld-
ou t
sh
ow c
ases u
nde
r
its
n
ame
a
t
eve
nts su
ch a
s
S
outh
by
Sou
thw
est.
Emp
ire, un
de r
bo t
h
t
he
R
ECO
RD
ING
S
a
nd
DIS
TRIB
UT
ION
M
ark
s, h
as
built
rel
ati on
sh ip
s
acro
ss t
he m
usic i
ndu
stry to
suc
cess
fully r
eco r
d,
p
rom
ote, a
nd
dis
tribu
te
p
latin
um -
and
go ld-certified
records. As part
of
its
par tnersh ip
with
Universal/Repub lic
Records,
Empire
Rec
ordi
ng s was
r
ecog
niz e
d
by
t
he
Reco
rdin
g
In
dus
try A
ssoc
iatio
n
of
A
me ri
ca for its
role
in
selli
ng o
ver
1,5
00 ,0
00
reco
rds
for the
arti
st Sag
e
t
he
Ge
mini
. Se
e
At
tach
men
t
A.)
Th
e Ma
rks
h
ave
be
en
prom
ine
nt ly
u
sed
i
n p
re ss re
leas
es
and
cove
rage
o
f
tho
se re
cord
s. Sep
arate
ly,
Emp
ire
Rec
ordi
ng s is en
gage
d
in an o
ngoi
ng re la
tio ns
hip
wit
h At
lanti
c
Re c
ords
to
co-
deve
lop ,
dis tr
ibu t
e,
an
d m
arke
t arti
sts. Th
rou
gh its
p
artne
rshi
p
w
ith
eO
ne
and
ot
hers,
Emp
ire
h
as
d
istri
bu te
d, ma
rket
ed,
a
nd s
old
tho
usan
ds of p
hysic
al rec
ords und
er
it
s
Ma
rks
do
mes
tical
ly
and
arou
nd
the w
orld.
B
eyo
nd
t
his
w
ides
prea
d
exp
osu
re, the
Ma
rks h
ave b
ee n th e
sub
ject
of
b
road
ad
ve rt
isi ng
and
promot iona l
campaigns
and
online presence. The Marks became
a
recognized
symbol for
A
TLA
NT
A
IJ
ING
CHA
RL
OTT
E
CH
ICA
GO
HON
KONG
N EW Y ORK
O
RAN
GE COU
NT
Y POR
TLA
ND
RA
LE
IGH RIC
Hf I
OND
SAN
D
JEG
O SHA
NG
HAI
TYS
ON
S
C
OR
NER V
IRG
INIA BEA
CH
W
AS
HIN
GTO
N
DC
7 9
7 lv
15EXHIBIT 2
21
TR
OUT
M
N
S N
ER
S
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Ge
rson
A
.
Zw
eifac
h
Feb
ruar
y
1
6, 201
5
Pa
ge 2
qu
ality
musi
c
an
d m
usi
c ser
vice
s year
s a
go. S
ee A
ttac
hm e
nt B.
As a
res
ult, th
e Ma
rks
are wel
l
known
among the
re levan t
consum ing
public
as
identifying
Em pire’s goods
and
service s. Due
to
the
tr
eme
ndou
s am o
un t
of
va l
uable
goo
dw il
l E
mp i
re has
de
ve lo
ped in th
e
Mar
ks,
it c
ann
ot
to l
erate
the
una
utho
rize
d u
se o
f its M
arks
, be c
ause
such
un
autho
rize
d
use
is li
kely to c
ause
con
fUsi
on
am
on g t
he
pub
lic
as
to
the
so
urce
,
o
rigi
n,
spo
nsor
ship
,
or aff i
liatio
n
of
se
rvice
s
iden
tified
by
the M
ark
s, bu
t not
a
uth o
rize
d by Emp
ire.
Th
e rec
en t de
but
of
FOX
’s
tel
ev is
ion p
rogr
am Em
pire
has
c
reate
d s
ignif
ica n
t con
fusi
on
with
Em
pir e
’s pr
oduc
ts an
d se
rvice
s
i
n
the
mark
etpl
ace
As
yo
u
kno
w,
the
pr
ogra
m
fol
lows
th
e
fi
ction
al hip
hop
m
usic
la
be l nam
ed “Em
pire
Ent
erpr
ise s
” N
um e
rous con
sum
ers,
ar
tists
and
bu
sin e
ss par
tners
have
ex
press
ed con
fusio
n
to
Em
pire wi
th re
gard
s
to w
heth
er
t
he
Em
pire
pro
gram h
as any affili
ation
or
business relationship with
Empire , which
it
does not .
FOX’s
use
o
f
the
“E m
pire
” mar
k belo
w in
all
u
pp e
r cas
e
lette
rs, the
sa
me fo
nt trea
tme
nt
as ou r
c
lien
t, has
signi
fica
ntly
ex
acer
bate
d
this
co
nfus
ion.
E
M
P
IR
E
M
P
R
F
OX
’s u
se of a
city
s
kylin
e
grap
hic
in
con
junc
tion w
ith
the “Em
pir e
” mar
k,
a
c
omb
inati
on
or
igina
ting
w
ith
o
ur
cl
ien t,
in
bo t
h m
arke
ting
mat
eria
ls
and
me
rch a
nd is
e has made
th
e con
fusio
n
betw
een
t
he two
title
s ine
scap
able.
EMPIRE
Mo
reo v
er. F
OX
dver
tises
distr
ibu t
es
a
nd
sell
s mus
ic un
de r
the
“E
mp i
re”
m
ark
.
Be
caus
e th
is
mus
ic sha
res th
e sam
e se
arch
term
s
as E
mp ir
e’s mu
sic, a
nd the
m
usic
al ge
nres
are
iden
tica
l, the
al
bum
s an
d
s
ongs
hav
e been
po si
tio n
ed
in
cl
ose
pro
xim
ity
in
onl
ine
st
ores s
uch
a
s
ilune
s Go
ogle
Play
.
A
ma
zon c
om
Spo
tify a
nd
Rdio
.
See
A
ttac
hme
nt B. Th
is
f
urth
er
p
erpet
uate
s dam
agi
ng publ
ic
co
nfus
ion .
Th
e
fed
eral
L
anha
m Ac
t an
d
sim
ilar
sta te
law
s proh
ibit F
OX
’s use
o
f
a
t
r de
m rk
i
n
com iection w ith the
adve rti sing
or
sale
of
any
goods
or
services
when such
use
is
likely
to
cause
47 9
37 v 16EXHIBIT 2
22
TR
OU
TM
N
S
N
ER
S
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Ge
rson
A
.
Z
we i
fach
Fe
brua
ry 1
6, 201
5
Pa
ge
c
on fu
sio n
a
s to
the
so
urce
of
tho s
e g
oods
or
s
ervic
es.
15
U.S
.C.
1114
,
1125
a .
The
Lan
ham
Act also
prohibits
any person
or
entity
from
us ing
a
word
or name
in
a
manne r
tha t
is
likely
to
c
ause
con
fusi
on
as
to
the
aff
iliati
on ,
conn
ec tio
n
or
ass
ocia
tion
wi
th an
othe
r
pe r
son o
r en
tity.
FOX
’s
u
naut
ho riz
ed u
se
of the
M
arks
has
alrea
dy co
nfus
ed
and
is
li
ke ly
to
c
on tin
ue
to co
nfus
e
me
mbe
rs
of
the
pu
blic
int
o be
liev
ing
tha
t
y
ou
are
an
ap
prov
ed
licen
see o
f
or
o
the r
wise a
ffi lia
ted
with
Em
pire,
th
e
very
typ
e
o
f
dec
eptio
n
that
the
se
law s
pro
hibit
.
Mor
eove
r,
Em
pire’
s
po
nray
al
of
a
lab
el r
un
by a ho
mop
hob
ic
drug
de
aler
pron
e
to
m
urde
ring
his
fr
iend
s
thr e
aten
s
to tar
nish
th
e b
rand
an
d
ha
rm
the
go
odw
ill
bu i
lt
b
y
ou
r
cl
ient .
Re
med
ies
prov
ided
for
unde
r th
e Lan
ham
Ac
t
inc
lude
inju
nc ti
ons a
nd
mo
neta
ry d
am a
ges.
Emp
ire
r
eque
sts
t
hat
with
in
sev
en
7
ca
lend
ar d
ays
of
th
e
date of thi
s
lett
er F
OX
respond
to set
a
meeting
to
discuss these
legal issues.
If
we do no t
receive
a
tim ely response,
we
will
ass
ume
FOX
doe
s
n
ot
wi
sh
to
pur
sue
a
res
olut
ion
in
this m
atte
r
a
nd
w
ill adv
ise
Em
pir e
acc
ordi
ng ly
W
e
a
lso
req
ues t
tha t
FOX
i
mme
diat
ely p
reser
ve
a
ll doc
ume
nts ,
d
ata, an
d
ta
ngib
le t
hing
s
her
eafte
r
“Re
cord
s”
in
it
s po
ssess
ion
cus
tody
,
a
nd
c
ontr
ol
that
are
po
tent i
ally
re
lev a
nt
to
the
sub
jec t
m
atte
r
of
t
his
di s
pute
, inc
ludi
ng
all
ele
ctr o
nic al
ly
stor
ed
i
nfor
mati
on , an
d no
t d
estro
y,
d
elete
,
eras
e
or
over
w
rite
any
s
uch m
ate
rials
.
T
he sc
ope
of
prese
rvat
ion
sho
uld
inclu
de,
at a
mi
nim
um
all
Re
cord
s rel
ating
to t
he
c
once
pt io
n, de
velo
pmen
t,
and
la
unc
h
of
the
Emp
ire
pro
gram
;
all c
omm
uni
ca tio
ns a
nd
oth
er
ma t
erial
s
e
xch
ange
d
reg a
rdin
g the
sele
ction o
f
the
Empire
program
name
and its
logo;
and all
cost
and
financial Records
relating
to
the creation and
ro
ll ou
t of
the
prog
ram
.
T
his
lette
r
does no
t
co
nta i
n
a
f
ull an
aly s
is of
all
of t
he le
gal
is
sues
rel
ated
to
this
ma
tte r
an
d
is mad
e
wi th
ou t
a
ny
wa
iver
of
any
r
ights
or
re
med
ies
whi
ch
a
re
ex
press
ly res
erve
d.
Sinc
erely
,
J
a
7
1
_
M
ich
ael
D.
H
obb
s
Jr.
2
4
7 9
4
Iv
17EXHIBIT 2
23
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29/176
Bcc
v ia e-mail
only :
Mr.
Ghazi
Shami
Vinny
Kumar,
Esq.
Scott
Kenily,
Esq.
24 7094
v 18EXHIBIT 2
24
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TT
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47
947
v 19EXHIBIT 2
25
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ce
rtifi
ed
pla
tin um
p
laq u
e c
omm
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rati
ng
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eir sale
of
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r
eco r
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947 Iv
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e E
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ark in
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se
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ide
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epu
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eco r
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ark
in
th
eir
R
20EXHIBIT 2
26
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1.29
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res
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ip H
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ug 05.
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4
v 21EXHIBIT 2
27
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T
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947 22EXHIBIT 2
28
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T
S
T
N
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fl
S
‘
cd
ba
by
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P
R
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iai
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o
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M
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USIC IN
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Y’S
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LAY
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HT O
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lTHE
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ac
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e com
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ay
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3
4
7 94
23EXHIBIT 2
29
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g
haz
2
0
mo
nths
MP R
The
volution
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be
taw
ardsw
eek
end
yo u
ngc
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re
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okin
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enag
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hen s
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ur
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ra
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n Em p
ire M
ark
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incl
uded
am
ong
ot
r pro
min
nt mu
sic
and
co
nsu
mer
br
ands a
t the
BE T
a
ward
s
week
en d
in
J
une
2 13
7O
9 7
Ii 24EXHIBIT 2
30
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TT
H
ME
NT
g
em
pire
mu
sic
W
eb
Vdec
s S
hong
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aps
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age
s
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ore
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ut
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00DflOO
res
ul ts
0
.17
s
econ
ds
m
pire
Mu
sic
on
OX
w.fc
x.co
rrJe
mpIr
e/m
usic
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OX
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atch the lat
est
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sic
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ance
s
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s
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pire
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usIc
spo
nsor
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AT T
hp.fl
v.ww
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ccrn
em
plr
mus
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the
new
s
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ulen
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jest
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ake
ems
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ide
o o
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igh
t’s
mp
ire
c
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ranu
and
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s eg
o
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eke
ems trum
p
card
is r
evea
led
lobe
an opu lent
music
video
whi
ch
w
as me
ücol
ously
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n re
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urg
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cret
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o Tn N
ew
ty
na s
t
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eWr
so.
day n
on
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mp
ie Tack
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e Mu
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ut
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oura
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094
71
vi 25EXHIBIT 2
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7 Emp
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Case 2:15-cv-02158 Document 5 Filed 03/23/15 Page 16 of 20 Page ID #:35Case 2:15-cv-02158-PA-FFM Document 41-4 Filed 12/15/15 Page 39 of 176 Page ID #:687
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EXHIBIT 3
Case 2:15-cv-02158-PA-FFM Document 15 Filed 06/04/15 Page 1 of 12 Page ID #:69Case 2:15-cv-02158-PA-FFM Document 41-4 Filed 12/15/15 Page 41 of 176 Page ID #:689
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T R O U T M A N
S A N D E R S L
L P
5 P A R K
P L A Z A
S U I T E
1 4 0 0
I R V I N E
, C A
9 2 6 1 4 - 2 5 4 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
PAUL L. GALE (SBN 065873) [email protected] N. VILLAR (SBN 204038)
[email protected] SANDERS LLP5 Park Plaza, Suite 1400Irvine, California 92614-2545Telephone: (949) 622-2704Facsimile: (949) 769-2052
JOHN M. BOWLER ( pro hac vice) [email protected]
MICHAEL D. HOBBS ( pro hac vice)[email protected] SANDERS LLPBank of America Plaza600 Peachtree Street NE, Suite 5200Atlanta, Georgia 30308-2216
Attorneys for Defendantmpire Distribution Inc.
UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
WESTERN DIVISION
TWENTIETH CENTURY FOXTELEVISION, a division ofTWENTIETH CENTURY FOXFILM CORPORATION, a Delawarecompany, and FOXBROADCASTING COMPANY, aDelaware corporation,
Plaintiffs,
v.
EMPIRE DISTRIBUTION, INC., aCalifornia corporation,
Defendant
Case No. 2:15-cv-02158-PA-FFM
Hon. Percy Anderson
EMPIRE DISTRIBUTION, INC.’S
ANSWER TO COMPLAINT
DEMAND FOR JURY TRIAL
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T R O U T M A N
S A N D E R S L
L P
5 P A R K
P L A Z A
S U I T E
1 4 0 0
I R V I N E
, C A
9 2 6 1 4 - 2 5 4 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
Defendant Empire Distribution, Inc. (“Empire”) hereby answers the
Complaint for Declaratory Relief (“Complaint”) of Plaintiffs Twentieth Century
Fox Television, a division of Twentieth Century Fox Film Corporation, and Fox
Broadcasting Company (collectively “Fox”) as follows:
NATURE OF THE ACTION
1. Empire admits that Fox brought this suit as a preemptive action
intended to deprive Empire of its natural position as plaintiff, in anticipation of
Empire’s filing suit against Fox for trademark infringement. Empire is without
knowledge or information sufficient to form a belief about the truth of the
remaining allegations in paragraph 1, which therefore are denied.
2. Empire admits that Fox seeks a declaration that it does not violate
Empire’s trademark rights, but denies that Fox is entitled to any such relief. Empire
denies the remaining allegations in paragraph 2.
PARTIES
3. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 3, which therefore are denied.
4. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 4, which therefore are denied.
5. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 5, which therefore are denied.
6. Empire admits that it is a California Corporation, but that its principal
place of business is at 16 Maiden Lane, Fourth Floor, San Francisco, CA 94108.
JURISDICTION AND VENUE
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T R O U T M A N
S A N D E R S L
L P
5 P A R K
P L A Z A
S U I T E
1 4 0 0
I R V I N E
, C A
9 2 6 1 4 - 2 5 4 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
FOX’S ALLEGED INTELLECTUAL PROPERTY
10. Empire admits that Empire is a television series with music. Empire is
without knowledge or information sufficient to form a belief about the truth of the
remaining allegations in paragraph 10, which therefore are denied.
11. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 11, which therefore are denied.
12. Empire admits that music appears on Empire. Empire is without
knowledge or information sufficient to form a belief about the truth of the
remaining allegations in paragraph 12, which therefore are denied.
DEFENDANT EMPIRE’S TRADEMARKS
13. Empire denies that its trademarks are “purported.” Empire admits the
remaining allegations in paragraph 13.
14. Empire denies that it has not applied for federal registration of the
mark “EMPIRE.” Empire specifically shows that it is also the owner of U.S.
Trademark Application Nos. 86/477,123, 86/476,822 and 86/174,484 for EMPIRE
DISTRIBUTION and U.S. Trademark Application No. 86/174393 for EMPIRE
RECORDINGS.
15. Empire admits that its application for EMPIRE DISTRIBUTION
(Serial No. 86/174,484) filed January 24, 2014 was initially refused by the USPTO.
Empire denies that the USPTO has not taken action on its applications for EMPIRE
DISTRIBUTION (Serial Nos. 86/477,123 and 86/476,822 ) filed December 10,
2014.
16. Empire admits the allegations in paragraph 16.
Case 2:15-cv-02158-PA-FFM Document 15 Filed 06/04/15 Page 4 of 12 Page ID #:72Case 2:15-cv-02158-PA-FFM Document 41-4 Filed 12/15/15 Page 44 of 176 Page ID #:692
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T R O U T M A N
S A N D E R S L
L P
5 P A R K
P L A Z A
S U I T E
1 4 0 0
I R V I N E
, C A
9 2 6 1 4 - 2 5 4 5
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
20. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 20, which therefore are denied.
Empire specifically shows that in a search of the Internet using the Google search
engine conducted April 15, 2015, Empire was referenced in the first, third and sixth
organic search results among many others.
21. Empire is without knowledge or information sufficient to form a belief
about the truth of the allegations in paragraph 21, which therefore are denied.
Empire specifically shows that in a search of the Internet using the Google search
engine conducted April 15, 2015, Empire was referenced in the second and fifth
organic search results among many others.
22. Empire denies the allegations of the first sentence in paragraph 22.
Empire admits that its affiliated companies, Empire Recordings, Inc. and Empire
Publishing, Inc., do business in the State of California. Empire is not aware of any
California entity named Empire Recordings, LLC and is otherwise without
knowledge or information sufficient to form a belief about the truth of the
remaining allegations in paragraph 22, which therefore are denied.
FOX’S USE OF “EMPIRE”
23. Empire admits that Fox’s television series is named Empire. Empire
further admits that Empire Enterprises or Empire Entertainment is the name of the
company featured in the Empire series. Empire further admits that Fox promotes,
markets and sells music featured on the Empire series using the “Empire” name and
logos. Empire is without knowledge or information sufficient to form a belief
about the truth of the remaining allegations in paragraph 23, which therefore are
1 25 E i d i h h l d i d i h 25
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25. Empire admits that the two logos depicted in paragraph 25 are
examples of the different logos used by Fox to promote the Empire series.
26. Empire admits that the two logos depicted in paragraph 26 are
examples of the different logos used by Fox to promote the sale of the music
featured on the Empire series.
DEFENDANT EMPIRE’S CLAIMS
27. Empire admits that its outside counsel sent a letter to Fox’s General
Counsel dated February 16, 2015 asserting trademark infringement. To the extent
paragraph 27 purports to describe, characterize or quote the terms of the February
16, 2015 letter, the document speaks for itself, should be read as a whole, and
provides only as stated therein. Empire refers the Court to the document for a full
and complete statement of its content. Empire is without knowledge or information
sufficient to form a belief about the truth of the remaining allegations in paragraph
27, which therefore are denied.
28. Empire admits that its outside counsel’s February 16, 2015 letter
asserted trademark infringement and likelihood of confusion against Fox. To the
extent paragraph 28 purports to describe, characterize or quote the terms of the
February 16, 2015 letter, the document speaks for itself, should be read as a whole,
and provides only as stated therein. Empire refers the Court to the document for a
full and complete statement of its content. Empire denies the remaining allegations
in paragraph 28.
29. Empire admits that its outside counsel’s February 16, 2015 letter
asserted that Fox threatens to tarnish the brand and harm the goodwill built by
1 30 E i d it th t it t id l’ F b 16 2015 l tt
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