Robert Swider, OSB# 82127 

robert@swiderhaver. com 

Andr.ea A. Selkregg, OSB# 092595 

andrea@swiderhaver. com 

SWIDER HAVER 

621 SW Morrison, Suite 1420 

Portland, OR 97205 

Telephone: (503) 226-8122 

Facsimile: (503) 273-8842 

Attorneys for Plaintiff 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF OREGON 

PORTLAND DIVISION 

SPREAD, LLC., an Oregon limited 

liability company, 

Plaintiff, 

v. 

J.C. Penney Company, Inc., a Delaware 

corporation; The Weinstein Company, 

LLC, a Delaware limited liability 

company; Anchor Bay Entertainment, 

LLC, a Delaware limited liability 

company; and Marchesa Holdings, 

LLC, a Delaware limited liability 

company; 

Defendants. 

Case No. 3:15-cv-1714-SI 

FIRST AMENDED COMPLAINT 

FOR COPYRIGHT 

INFRINGEMENT 

DEMAND FOR A JURY TRIAL 

Spread, LLC, hereinafter referred to as "Spread", files its claims against the above-named 

' 

Defendants and alleges as follows: 

First Amended Complaint - 1 
NATURE OF THE ACTION 

1. This is an action for copyright infringement. Plaintiff seeks injunctive and 

compensatory relief. 

PARTIES 

2. Plaintiff, Spread, is a limited liability company organized and existing under the laws 

of the State of Oregon, having its principal place of business in Portland, Oregon. 

3. Upon information and belief, Defendant, J.C. Penney Company, Inc. ("JCP"), is a 

corporation organized and existing under the laws of the State of Delaware, with its principal 

place of business in Plano, Texas, .and at all relevant times hereto, is and was a registered foreign 

business within the jurisdiction of the State of Oregon. 

4. Upon information and belief, Defendant, The Weinstein Company, LLC 

("Weinstein"), is a limited liability company organized and existing under the laws of the State 

of Delaware, with its principal place of business in New York, New York, and at all relevant 

times hereto, is and was doing business within the jurisdiction of the State of Oregon. 

5. Upon information and belief, Defendant, Anchor Bay Entertainment, LLC ("Anchor 

Bay"), is a limited liability company organized and existing under the laws of the State of 

Delaware, with its principal place of business in Beverly Hills, California, and at all relevant . 

times hereto, is and was doing business within the jurisdiction of the State of Oregon. 

6. Upon information and belief, Defendant, Marchesa Holdings, LLC ("Marchesa"), is a 

limited liability company organized and existing under the laws of the State of Delaware, with its 

. . 

principal place of business in New York, New York, and at all relevant times hereto, is and was 

doing business within the jurisdiction of the State of Oregon. 

First Amended Complaint - 2 
JURISDICTION AND VENUE 

7. This action arises under the Copyright Act of 1976, 17 U.S.C. §101 et seq. (the 

"Copyright Act"). This Court has subject matter jurisdiction over this action pursuant to 28 

U.S.C. §§ 1331 and 1338(a) and (b). 

8. This Court also has subject matter jurisdiction over this action pursuant to 28 U.S. C. § 

1332 (a) in that the parties are citizens of different states and the amount in controversy exceeds 

the sum or value of $75,000, exclusive of interest and costs. 

· 9. This Court has supplemental jurisdiction over Plaintiffs related claims under 28 

U.S.C. § 1338(b) and 28 U.S.C. § 1367(a). These claims are related to the other claims in this 

action over which this Court has original jurisdiction in that they form a part of the same case or 

controversy under Article III of the United States Constitution. 

10. Venue is proper in this Court pursuant to 28 U.S.C. § 1391(b) and (c) based on the 

following: 

(a) because a substantial part of the events giving rise to this action, namely the 

copyright infringement, occurred in this judicial district; 

(b) because JCP has sufficient contacts with this district in that it does business and 

has several retail locations within this judicial district; 

(c) because Weinstein has sufficient contacts with this district in that it does business 

and distributes its products and services within this judicial district; 

(d) because Anchor Bay has sufficient contacts with this district in that it does 

business and distributes its products and services within this judicial district; 

First Amended Complaint - 3 
(e) because Marchesa has sufficient contacts with this district in that it does business 

and distributes its products and services within this judicial district; and 

(f) Pursuant to 28 U.S.C. § 1400(a) because this case asserts claims relating to a 

judicial district where the Defendants have committed acts of copyright 

infringement in that the infringing materials were distributed and sold within this 

judicial district. 

FACTUAL BACKGROUND 

Spread: 

11. Plaintiff is a music recording company engaged in the business of recording, selling, 

licensing and distributing sound recordings and musical compositions via the internet and other 

forms of media. 

JCP: 

12. Plaintiff is the exclusive owner ofthe following registered copyright(s): 

a. The sound recordings in the album "Shadow on Stars" which includes the sound 

recording "I'll be the Light" ("Sound Recording"); and 

b. The musical composition in "I'll be the Light" ("Musical Composition") (collectively 

the "Works"). 

13. JCP is an American chain of department stores selling a variety of clothing and 

household goods at its nearly two thousand retail locations throughout the United States and 

Puerto Rico and via its website atjcpenny.com. 

14. On information and belief, and according to JCP Securities and Exchange 

Commission filings, in 2013, after suffering massive fiscal losses in year 2012, JCP reorganized 

First Amended Complaint - 4 
the company and introduced new product lines in an attempt to recapture customers from 

competitor department stores. As part of JCPs attempted "renaissance", in or around February 

2013, JCP announced its collaboration with Georgina Chapman of famed fashion house 

Marchessa, for a limited capsule collection called "Pearl by Georgina Chapman of Marchesa" 

(the "Pearl Line"). 

15. The Pearl Line was launched on March 1, 2013 for sale at JCP retail locations and at 

the JCP Website. It is alleged on information and belief that the Pearl Line was a major success 

for JCP. 

Marches a: 

16. Marchesa is a brand specializing in high end womenswear, established in 2004 by 

Georgina Chapman ("Chapman") and Keren Craig. Chapman is an internationally recognized 

fashion designer who has starred· on the hit reality television program, Project Runway. 

Marchesa designed gowns are often seen on celebrities at major red carpet events including the 

Oscars and Emmys. 

17. On information and belief, in or around 2012, Marchesa, eritered into a venture with 

JCP to design and sell the Pearl Line at JCP stores and the JCP website. 

Weinstein and Anchor Bay: 

18. The Weinstein Company is a multimedia production and distribution company 

launched in October 2005 by Bob and Harvey Weinstein, the brothers who founded Miramax 

Films in 1979. Weinstein has released a broad range of mainstream, geme and specialty films 

that have been commercial and critical successes. Chapman is married to Harvey Weinstein. 

First Amended Complaint - 5 
19. In or around November 2012, Weinstein released the film Silver Linings Playbook 

("SLP") in theaters. starring Robert De Niro, Bradley Cooper and Jennifer Lawrence. SLP 

achieved major critical success receiving eight Academy Award nominations, including Best 

Picture, Best Director, Best Adapted Screenplay; and with Jennifer Lawrence winning the 

Academy Award for Best Actress. It also achieved four Golden Globe Award nominations, three 

BAFTA nominations, four Screen Actors Guild nominations; and five Independent Spirit Award 

nominations. 

20. Anchor Bay acquires and distributes feature films, original television programming, 

and other filmed entertainment on DVD and Blu-ray formats. Anchor Bay markets and sells 

feature films, series, television specials and short films to consumers worldwide. Anchor Bay is 

owned, in part, by Weinstein. 

21. On or about April 30, 2013, Anchor Bay and Weinstein released SLP on DVD and 

Blu-ray. 

The License Agreement: 

22. On or about February 7, 2013, Audiosocket, acting as agent for Spread, entered into 

a licensing agreement ("License") with an advertising firm identifying JCP as "Third Party 

Rights Holder" for use of the Sound Recording in a project titled JCP/Pearl Behind the Scenes. 

Audiosocket has assigned all rights it may have had as licensee, to Spread. 

23. The License provided the following essential terms: 

a. Use of the Sound Recording for a term of six months beginning February 

22, 2013 and ending August 22, 2013; 

First Amended Complaint - 6 
b. Use of the Sound Recording limited to internet use and in-store use only; 

and 

c. All other uses restricted including, specifically, DVD sales. 

24. Pursuant to the License, the advertising firm, on JCP's behalf, created a one minute, 

seven second (1 :07) video advertisement with a behind the scenes look at the Pearl Line (the 

"Advertisement"). 

25. The Works are featured throughout the entire Advertisement. 

26. It is alleged on information and belief that pursuant to the Agreement, the 

. Advertisement was displayed in JCP stores and on the JCP website in or around the first of 

March 2013 to coincide with the release of the Pearl Line. 

Infringing Uses: 

27. In or around May 2013, shortly after its release, Spread discovered the entire 

Advertisement, including the Works, featured at the beginning of the SLP DVD. It is unclear at 

this time if the Advertisement was included on any other Weinstein and Anchor Bay DVDs 

and/or if the Advertisement was included before screening ofSLP in theaters. 

28. It is alleged on information and belief that Chapman and JCP directed Weinstein and 

Anchor Bay to include the advertisement on the SLP DVDs despite knowing the License 

specifically excluded use of the Works on DVDs. 

29. Spread didnot give JCP or Marchesa or Weinstein and Anchor Bay authority to use 

the Sound Recording or Musical Composition on the SLP DVDs. 

30. Upon discovery of the infringing use, Spread contacted the Defendants demanding 

they immediately cease and desist from infringing use. Specifically, Spread demanded, among 

First Amended Complaint - 7 
other things, that (1) the Works and any advertisement containing the same be removed from all 

DVDs; (2) to destroy all existing.DVDs containing the infringing material; and (3) to inform all 

third-party distributors of the infringing DVDs of the infringing use. 

31. Despite demand, DVDs containing the infringing materials continue to be offered for 

sale in the marketplace. 

32. In addition to the above, in or around the same time the infringing DVD was 

released, Spread entered into an agreement to license the Sound Recording and Musical 

Composition to Lord & Taylor, a JCP competitor, for a limited 3 month use in Lord & Taylor 

advertising to be shown in cinemas throughout the Eastern United States. When Lord & Taylor 

discovered that the Sound Recording and Musical Composition had been included on the SLP 

DVD, albeit unlawfully, Lord & Taylor terminated the agreement with Spread. 

FIRST CLAIM FOR RELIEF 

Federal Copyright Infringement (17 U.S.C. § 101 et. seq.) as to all Defendants 

33. Spread repeats, re-alleges and incorporates by reference, as though fully set forth 

herein, the allegations contained in all proceeding paragraphs. _ 

34. Spread is the owner of all rights, title and interest in and to the Sound Recording and 

Musical Composition. 

35. Weinstein and Anchor Bay have infringed Spread's copyrights in the Works by 

reproducing, distributing, performing and displaying the Works without authorization. 

36. JCP and Marchesa have infringed Spread's copyrights in the Works by directing 

Weinstein and Anchor Bay to reproduce, distribute, perform and display the Works without 

authorization. 

First Amended Complaint ..: 8 
37. Weinstein, Anchor Bay, JCP and Marchesa's above described conduct constitutes 

infringement of Spread's copyrights in the Works and exclusive rights to the same under the 

Copyright Act in violation of Section 106, 114 and 501 of the Copyright Act. 

38. Each infringement of Plaintiffs rights in and to the Works constitutes a separate and 

distinct act of infringement. 

39. The foregoing acts of infringement by Defendants have been willful, intentional and 

purposeful, in disregard of and indifferent to Plaintiffs rights. 

40. As a direct and proximate result of Defendants' infringement of Plaintiffs exclusive 

rights Plaintiff is entitled to its damages as well as Defendants' profits pursuant to 17 U.S.C. § 

504(b). 

41. Plaintiff is further entitledto its costs pursuant to 17 U.S.C. § 505. 

42. Defendants' conduct is causing, and unless enjoined and restrained by this Court will 

continue to cause, irreparable injury that cannot be fully compensated for in money. Plaintiff has 

no adequate remedy at law. Pursuant to 17 U.S.C. § 502, Plaintiff is entitled to injunctive relief 

prohibiting further infringements of its copyrights in the Works. 

PRAYER FOR RELIEF 

WHEREFORE, Spread prays for relief as follows: 

1. An Order that Defendants, their officers, directors, agents, servants, partners, employees, 

attorneys, licensees, assigns, and all persons acting for, with, by, through or in concert 

with it be enjoined preliminarily and permanently from: 

a. copying, reproducing, distributing, adapting and/or publicly displaying the 

Works; 

First Amended Complaint - 9 
b. infringing Spread's copyrights in each of the Works; and 

c. advertising, marketing, promoting, offering for sale, or selling any goods that 

infringe Plaintiffs Works. 

2. That Defendants be required to deliver up to Plaintiff for destruction any DVDs 

including any ofthe Works or any other works deemed to be infringing. 

3. That Defendants, within thirty days after service of judgment with notice of entry 

thereofupon it, be required to file with the Court and serve upon Spread's attorney a 

written report, under oath, setting forth in detail the manner in which Defendants have 

complied with Paragraphs 1 and 2 above. 

4. Plaintiffs damages and Defendants' profits pursuant to 17 U.S.C. § 504(b), in such 

amount as may be proven at trial. 

5. Prejudgment interest. 

6. Cost of suit 

7. Such other and further relief as the Court may deem equitable. 

Dated: January 12, 2016 

II 

II 

II 

First Amended Complaint - 10 

SWIDER HAVER LLP 

Andrea A. Selkregg, OSB 092595 
JURY DEMAND 

Pursuant to Rule 30 ofthe Federal Rules of Civil Procedures, Plaintiffhereby demands a 

trial by jury as to all issues set forth in the Complaint. 

Dated: January 12, 2016 

SWIDER 

~ 

HAVER LLP 

Andrea A. Selkregg, OSB 092595 

First Amended Complaint - 11