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PostPosted: Sun Dec 08, 2013 4:45 am 
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Yep, that’s right. EMI has filed an amended complaint in their original lawsuit against Slep-Tone (the undisputed leader in today’s karaoke litigation industry). In their complaint filed on 11-13-2013, they ask for an injunction against Slep-Tone to stop them from distributing anymore of their intellectual property, and they ask for recall and destruction of all previously distributed discs under Slep-Tone ownership (that includes all Gem sets licensed by Slep-Tone).

Under their theory of vicarious and contributory infringement (I’ve heard that somewhere before) it seems like there is a possibility that this could come to pass.

The amended complaint is 145 pages and lists 3002 EMI owned songs that are on the Gem Series alone (they also have a long list from the brick and foundation sets).
It seems they are a bit upset with the downstream licensing scheme that is being used to market the Gem sets and are looking for a way to end it.

Here are a few excerpts:
Case 1:13-cv-00749-LLS Document 54 Filed 11/15/13

Quote:
26. Exhibits 1-5 identify various unlicensed recordings appearing on the “sound choice,” “brick,” “foundation,” and “Gem” brands of karaoke discs or, in the alternative, were “licensed”, and/or sold via the http://www.globalmusicservices.biz website, unlicensed audio recordings respectively….


Quote:
28. Plaintiffs are informed and believe, and on that basis allege, since at least as early as 2009, each of the defendants has been variously participating from time to time in the manufacture, reproduction, distribution, advertising, promotion, offering for sale, and actual sales of illegal and unauthorized copies of the subject works. The unauthorized copies have been in the form of “karaoke” type recordings, to the extent that such works have been in existence from time to time. Such recordings largely have been in either the “CDG,” “CD+G,” “SCDG,” “SCD+G,” “DVD,” “MP3,” and/or “MP3+G” format for discs, hard drives, memory devices, and Internet downloads.


Quote:
29. The Global defendants, as a separate and additional course of infringement, have been advertising, distributing, and “licensing” or selling audio recordings of the subject works identified in exhibit “5” for commercial use by businesses requiring recorded music for their products, advertisements, and/or broadcasts.
By "commercial use by businesses," they mean KJs.

Quote:
30. The conduct of the Defendants constitutes direct, contributory, and vicarious infringement of Plaintiff’s music copyrights, depending upon the specific conduct in question. The natural, probable, and foreseeable result of Defendants’ wrongful conduct has been and will to be to deprive Plaintiffs of the benefits of selling the subject works, to deprive Plaintiffs of the usual and customary royalties to which they would be entitled if the subject works were properly licensed with synchronization licenses, karaoke licenses, or advertising/promotional licenses, and to deprive Plaintiffs of goodwill. Defendants’ conduct also rises to the level of willful copyright infringement justifying an award of enhanced statutory damages.


Quote:
33. …..The Slep Defendants have conducted the exploitation of the aforementioned described brands of unlicensed discs under the guise of licensing issued by MCPS (“Mechanical-Copyright Protection Society”); However, all of the aforementioned brands of discs, the specific infringed copyrights with respect to which are identified on exhibits “2” – “4” attached hereto, have been produced and distributed outside the scope of the permission of any MCPS license issued relative to the recording of such discs and such conduct therefore constitutes copyright infringement. The guise of MCPS licensing has been fabricated in part by virtue of MCPS having issued a license to an entity known as “FSC Mediaplas, LTD” which is a dissolved UK corporation and not a party to this action, though believed to be under the ultimate control, if only in part, of the individual Defendant herein, KURT SLEP.
I guess they'll figure out the details in "discovery."

That’s just a few of the highlights.
They have asked the court to enjoin Sound Choice and the Slep Defendants from selling and/or distributing any more of their copyrighted material, to recall any unsold inventory for destruction (this includes the Gem sets that are currently out under “license”, and to award $150,000.00 statutory damages for each infringement (they list more than 4000 infringements).

This probably won’t affect their ability to produce more Sound Choice karaoke tracks to offer up exclusively to their Gem customers, though.

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PostPosted: Sun Dec 08, 2013 5:17 am 
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8) Say it ain't so Kurt. Hope you got plenty of money in the cookie jar. Where does that leave all of the hosts and venues that licensed GEM? No product and out their money or will they sue SC and Kurt also? Stay tuned for another installment of the popular soap opera "As The Karaoke Industry Turns".


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PostPosted: Sun Dec 08, 2013 7:59 am 
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WOW.. Who knew? :roll:


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PostPosted: Sun Dec 08, 2013 8:48 am 
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It has long been speculated that SC went to the UK to escape the restrictions that were imposed on them in the US by copyright holders and publishers (EMI, ASCAP, SESAC, etc.). Then the import restriction came into play in early 2012 and there was more speculation as to the legalities of SC importing the GEMS. I looks like it wasn't a perfect arrangement amongst all parties concerned.


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PostPosted: Sun Dec 08, 2013 1:02 pm 
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I refuse to act surprised.


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PostPosted: Sun Dec 08, 2013 1:34 pm 
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If SC licensed the gems and imported them before Jan 2011 then this suit seems like it is trying to retroactively make something illegal that was legal at the time it was done. ???


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PostPosted: Sun Dec 08, 2013 2:02 pm 
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Rules seem to change and be reinterpreted all the time. Look at what is happening to our constitution. Maybe they changed their mind. One day it's OK the next day it's not. What's wrong with that!!! If lawyers can't agree on a law what chance do we have. :argue:


Last edited by mrmarog on Sun Dec 08, 2013 2:54 pm, edited 1 time in total.

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PostPosted: Sun Dec 08, 2013 2:22 pm 
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leopard lizard wrote:
If SC licensed the gems and imported them before Jan 2011 then this suit seems like it is trying to retroactively make something illegal that was legal at the time it was done. ???


From what I read- and I may have certainly misunderstood- it seems that they claim the MCPS licensing was issued to the now defunct FCS MediaPlas ( a company they claim is was all or partially controlled by Kurt- and note that it folded after GEM production), NOT Sound Choice?

Folks, please keep in mind that while this only affects the producers NOW, a certain non-thinking or non-caring party ( take a guess) HAS awakened the giants, and we are the next step if they wish to go beyond the producers. Make sure you have all your ducks in a row.

Of course, EMI hasn't won the suit-yet.

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PostPosted: Sun Dec 08, 2013 2:42 pm 
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Maybe you should reread this quote from the amended complaint again. Sums it up for me.

Quote:
33. …..The Slep Defendants have conducted the exploitation of the aforementioned described brands of unlicensed discs under the guise of licensing issued by MCPS (“Mechanical-Copyright Protection Society”); However, all of the aforementioned brands of discs, the specific infringed copyrights with respect to which are identified on exhibits “2” – “4” attached hereto, have been produced and distributed outside the scope of the permission of any MCPS license issued relative to the recording of such discs and such conduct therefore constitutes copyright infringement. [color=#FFBF00]The guise of MCPS licensing has been fabricated in part by virtue of MCPS having issued a license to an entity known as “FSC Mediaplas, LTD” which is a dissolved UK corporation and not a party to this action, though believed to be under the ultimate control, if only in part, of the individual Defendant herein, KURT SLEP.[/color]


The original complaint was filed against KTS Karaoke, Inc.,Tommy Sun Ton,Slep-Tone Entertainment Corporation, Derek Slep & Kurt Slep. Since then the KTS & Tommy have been dismissed:

Quote:
In 09/09/2013 38 ORDER TO PLAINTIFFS' MOTION TO DISMISS DEFENDANTS KTS KARAOKE INC AND TIMMY SUN TON ONLY, WITH PREJUDICE, PURSUANT TO FRCP 41(a)(2) AND FOR EXPEDITED CONSIDERATION: The Plaintiffs' claims for copyright infringement against the KTS Defendants are hereby dismissed with prejudice; The Plaintiffs' claims against the Co-Defendants, SLEP-TONE ENTERTAINMENT CORPORATION, a North Carolina Corporation, d/b/a "SOUNDCHOICESTORE.COM," "SOUNDCHOICE," "SOUND SOURCE STUDIOS," GLOBAL MUSIC SERVICES, INC., a Delaware corporation, d/b/a "GLOBALMUSICSERVICES.BIZ," DEREK SLEP, individually and KURT SLEP, individually, are not dismissed and any claims against non-parties/coinfringers are not precluded by this dismissal and are expressly reserved by Plaintiffs; and as further set forth in this Order. (Signed by Judge Louis L. Stanton on 9/9/2013) (tn) (Entered: 09/09/2013)


The Sleps have several attorneys on the case so I'm sure they have nothing to worry about, right? I know I've seen this case explained on this forum somewhere but I'll just wait for a Judgement before I decide who to believe :D


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PostPosted: Sun Dec 08, 2013 2:59 pm 
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Wonder where this leaves all the KJ's/venues that bought all they're SC discs via supply houses such as Karaoke.com or AceKaraoke.com, etc.? Luckily the place where I KJ has less than 10 and I personally own only about 30. So no real big hits involved for us or me .

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PostPosted: Sun Dec 08, 2013 3:19 pm 
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What is being requested is that all "unsold" disc be recalled and destroyed, this would not effect discs that were sold even if the judge approves the injunction. The Gem Series is not sold to KJ's it is licensed to them with ownership remaining with SC, I do not think a judge could retroactively impose a change for a product that was completely legal at the time it was made.

Those who are jumping for joy at this situation need to THINK REAL HARD. If EMI succeeds ALL overseas (and Canadian) tacks could also be made ILLEGAL retroactively and we would lose all access to anything not produced and licensed in the USA


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PostPosted: Sun Dec 08, 2013 3:37 pm 
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kjflorida wrote:

1) What is being requested is that all "unsold" disc be recalled and destroyed, this would not effect discs that were sold even if the judge approves the injunction. The Gem Series is not sold to KJ's it is licensed to them with ownership remaining with SC, I do not think a judge could retroactively impose a change for a product that was completely legal at the time it was made.

2Those who are jumping for joy at this situation need to THINK REAL HARD. If EMI succeeds ALL overseas (and Canadian) tacks could also be made ILLEGAL retroactively and we would lose all access to anything not produced and licensed in the USA



1) As I see it, being licensed rather than sold would mean that the GEMS could be recalled per that request. The users don't own them, and would have to return them- IF there is no licensing. I would wonder if a full refund to users would ensue... Also, the way I read it a recall WOULD include user discs. As for the "sold", if you read the whole thing you would note that the action is not limited to the GEM series discs, but includes any series.

With all due respect to you, KJFlorida ( and you ARE due respect), you cannot verify the veracity of the claims EMI has made regarding licensing at the time of production. That would be for the court to decide.

That being said,

2 I fully and 100% agree with you here. No celebrating for me, because I know we are the next to feel the effects. Where we differ in opinion is where the blame lay for the publisher/owner's recent upswing of interest in the karaoke industry. Yes, those who have awakened them may have been bitten first, but we all could well suffer from the results. Way to go....

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PostPosted: Sun Dec 08, 2013 3:51 pm 
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it's beginning to look like my homemade tracks, that I never attempt to sell, are more legal to possess than a GEM Series. When you do something for the love of it and not the love of money; you find yourself above the fray.


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PostPosted: Sun Dec 08, 2013 4:34 pm 
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kjflorida wrote:
What is being requested is that all "unsold" disc be recalled and destroyed, this would not effect discs that were sold even if the judge approves the injunction. The Gem Series is not sold to KJ's it is licensed to them with ownership remaining with SC, I do not think a judge could retroactively impose a change for a product that was completely legal at the time it was made.

not if it was made legally.
i wonder if they would have to allow the remainder of the lease to stand and take the GEM back only after the lease has expired.

kjflorida wrote:
Those who are jumping for joy at this situation need to THINK REAL HARD. If EMI succeeds ALL overseas (and Canadian) tacks could also be made ILLEGAL retroactively and we would lose all access to anything not produced and licensed in the USA

not true. they are not calling the MCPS license illegal, they said that SC went beyond the licensing that MCPS covered. maybe it was the lease of the GEM that is not covered (just speculating a thought, i don't know if that is it) but they are very specific " have been produced and distributed outside the scope of the permission of any MCPS license issued relative to the recording of such discs and such conduct therefore constitutes copyright infringement."
overseas MCPS licensed music is not illegal, they sold stuff that was not licensed or sold stuff beyond their license.

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PostPosted: Sun Dec 08, 2013 9:00 pm 
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I believe the Sleps knew exactly what they were doing and thought they could get away with it. How ironic, once again, a karaoke producer is nailed for copyright infringement, the same thing they were bringing legal action on KJs for (see Chartbuster). Little wonder HarringtonLaw hasn't been around lately, he must be working himself to death with the clients he has. Hope he gets his $ upfront.


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PostPosted: Sun Dec 08, 2013 10:46 pm 
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Once again it proves that the best action to take is hang on to those old CDGs.
Down the road I think they will become more and more valuable.


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PostPosted: Sun Dec 08, 2013 11:08 pm 
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rickgood wrote:
Little wonder HarringtonLaw hasn't been around lately, he must be working himself to death with the clients he has. Hope he gets his $ upfront.

HarringtonLaw clicked a "Liked" on LL’s post above – therefore, it’s safe to say that Jim is present & currently monitoring this thread. :wink:

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PostPosted: Mon Dec 09, 2013 12:50 am 
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Brian A wrote:
HarringtonLaw clicked a "Liked" on LL’s post above – therefore, it’s safe to say that Jim is present & currently monitoring this thread. :wink:



I noticed. It may take awhile to phrase properly, but I foresee an in-depth and very interesting damage-control post in the near future.

No matter. Whatever anyone says- as always- it's up to the court.

BTW- this has nothing to do with "retro-active changes in the law". No legal precedent has yet been set. Up until now, the owner/publishers pretty much just sat it out. Nothing was yayed or nayed. NOW- thanks to you-know-who, they are involved.

While the outcome will affect all of us, I'm glad that the "starter" got bit first, and will join us in what happens next.

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PostPosted: Mon Dec 09, 2013 12:58 am 
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JoeChartreuse wrote:
I noticed. It may take awhile to phrase properly, but I foresee an in-depth and very interesting damage-control post in the near future.

perhaps something like "they are reading the law incorrectly, none of that happened, i don't even know why the judges are allowing this to continue..."lord knows we heard it before.
anyone else hear locusts?

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PostPosted: Mon Dec 09, 2013 3:21 am 
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I'm not going to comment on this case specifically, as per my stated policy. Not all of the relevant facts have been made public yet, but when they are, some of you will be eating crow.


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