<b><i>Online Extra</b></i> Troll or Copyright Crusader? Freeplay Trades Lawsuits with YouTube Giants

A week after being labelled a 'troll' for allegedly extorting licensing fees from businesses that manage YouTube video channels, the music publisher Freeplay Music Inc. showed it's nowhere near backing down from enforcing its copyrights.

Freeplay tapped Baker & Hostetler to fire off'a trio of lawsuits'on last month in Manhattan federal court, asserting infringement claims against BroadbandTV Corp., Awesomeness LLC and its Big Frame Inc. unit, and The Walt Disney Co.'s Maker Studios Inc.

The defendants are all 'multi-channel networks' that offer managed channels through YouTube. Freeplay claims they're using songs in its catalogue without permission.

'If this conduct continues unchecked, it will continue to harm Freeplay Music and the hundreds of composers it represents,' BakerHostetler intellectual property partner Oren Warshavsky said in a statement announcing the lawsuits. 'We seek to right that wrong through this action.'

Freeplay, which has been in the music publishing business since 2001, shares the same founder and CEO as a related company called TuneSat LLC, which offers music identification software. Warshavsky said the two companies worked together to 'identify an industry wide problem' ' namely, managed YouTube channels using copyrighted music without authorization. Freeplay says hundreds of its songs have been used without permission in videos aired on the multi-channel networks' YouTube channels.

After identifying the alleged infringement, Warshavsky said, Freeplay approached the multi-channel networks to reach a solution, but found them 'unreceptive,' forcing Freeplay to resort to litigation.

Not surprisingly, some multi-channel networks have a different view of Freeplay's conduct. On Feb. 9,'Machinima Inc., which offers more than 30,000 YouTube channels, and'Collective Digital Studios, which runs nearly 1,000 channels, sued Freeplay in Los Angeles federal court. The suits claim Freeplay dupes consumers into downloading 'free' music and then conspires with TuneSat to shake them down for licensing fees.

Machinima and Collective Digital, represented by lawyers at Los Angeles-based Freedman & Taitelman, each asked for declaratory judgments that they aren't infringing Freeplay's copyrights. The Machinima complaint slams Freeplay for allegedly issuing 'aggressive demands' to multi-channel network operators even if the MCNs have never subscribed to Freeplay's service or downloaded any music.

'Unlike the legitimate businesses operating in this market niche, Freeplay's business model is premised on enticing consumers with the promise of 'free music' and then, after the consumer has availed himself of this offer, turning around and attempting to extort great sums of money,' Machinima's lawyers wrote. 'By its conduct, Freeplay aptly fits the definition of the term 'copyright troll.”

In addition to Warshavsky, Freeplay's legal team includes Baker & Hostetler's Tatiana Markel.

Freedman & Taitelman's Bryan Freedman and Sean Hardy represent Machinima and Collective Digital. We weren't immediately able to track down counsel information for BroadbandTV, Awesomeness LLC and Maker Studios. We also reached out to representatives for those companies about Freeplay's lawsuits, but didn't immediately hear back.

Scott Flaherty writes for The Litigation Daily, an ALM sibling of Internet Law & Strategy.

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A week after being labelled a 'troll' for allegedly extorting licensing fees from businesses that manage YouTube video channels, the music publisher Freeplay Music Inc. showed it's nowhere near backing down from enforcing its copyrights.

Freeplay tapped Baker & Hostetler to fire off'a trio of lawsuits'on last month in Manhattan federal court, asserting infringement claims against BroadbandTV Corp., Awesomeness LLC and its Big Frame Inc. unit, and The Walt Disney Co.'s Maker Studios Inc.

The defendants are all 'multi-channel networks' that offer managed channels through YouTube. Freeplay claims they're using songs in its catalogue without permission.

'If this conduct continues unchecked, it will continue to harm Freeplay Music and the hundreds of composers it represents,' BakerHostetler intellectual property partner Oren Warshavsky said in a statement announcing the lawsuits. 'We seek to right that wrong through this action.'

Freeplay, which has been in the music publishing business since 2001, shares the same founder and CEO as a related company called TuneSat LLC, which offers music identification software. Warshavsky said the two companies worked together to 'identify an industry wide problem' ' namely, managed YouTube channels using copyrighted music without authorization. Freeplay says hundreds of its songs have been used without permission in videos aired on the multi-channel networks' YouTube channels.

After identifying the alleged infringement, Warshavsky said, Freeplay approached the multi-channel networks to reach a solution, but found them 'unreceptive,' forcing Freeplay to resort to litigation.

Not surprisingly, some multi-channel networks have a different view of Freeplay's conduct. On Feb. 9,'Machinima Inc., which offers more than 30,000 YouTube channels, and'Collective Digital Studios, which runs nearly 1,000 channels, sued Freeplay in Los Angeles federal court. The suits claim Freeplay dupes consumers into downloading 'free' music and then conspires with TuneSat to shake them down for licensing fees.

Machinima and Collective Digital, represented by lawyers at Los Angeles-based Freedman & Taitelman, each asked for declaratory judgments that they aren't infringing Freeplay's copyrights. The Machinima complaint slams Freeplay for allegedly issuing 'aggressive demands' to multi-channel network operators even if the MCNs have never subscribed to Freeplay's service or downloaded any music.

'Unlike the legitimate businesses operating in this market niche, Freeplay's business model is premised on enticing consumers with the promise of 'free music' and then, after the consumer has availed himself of this offer, turning around and attempting to extort great sums of money,' Machinima's lawyers wrote. 'By its conduct, Freeplay aptly fits the definition of the term 'copyright troll.”

In addition to Warshavsky, Freeplay's legal team includes Baker & Hostetler's Tatiana Markel.

Freedman & Taitelman's Bryan Freedman and Sean Hardy represent Machinima and Collective Digital. We weren't immediately able to track down counsel information for BroadbandTV, Awesomeness LLC and Maker Studios. We also reached out to representatives for those companies about Freeplay's lawsuits, but didn't immediately hear back.

Scott Flaherty writes for The Litigation Daily, an ALM sibling of Internet Law & Strategy.

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