Grammy

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 1 of 26 Page ID #:1
11 Sandra A. Crawshaw-Sparks, SBN 291101

<scrawshaw@proskauer.com>
22 Jennifer L. Jones, SBN 284624
<jljones@proskauer.com>
33 PROSKAUER ROSE LLP
2049 Century Park East, 32nd Floor
44 Los Angeles, CA 90067-3206
Telephone: (310) 557-2900
55 Facsimile: (310) 557-2193
66 Attorneys for Plaintiff
National Academy of Recording Arts &
77 Sciences, Inc.
88
99
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UNITED STATES DISTRICT COURT

CENTRAL DISTRICT OF CALIFORNIA
NATIONAL ACADEMY OF
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12 RECORDING ARTS & SCIENCES, INC., )
12
a Delaware corporation,
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Plaintiff,
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v.
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)
HOLLYWOOD ENTERTAINMENT
)
16 GROUP LLC, a Nevada Limited Liability )
16
Company, d/b/a VIP CONCIERGE, INC.; )
17 and CRAIG BANASZEWSKI, an
17
)
individual,
)
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)
Defendants.
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Case No. 2:15-cv-594

COMPLAINT FOR DAMAGES
AND INJUNCTIVE RELIEF
DEMAND FOR JURY TRIAL
Plaintiff National Academy of Recording Arts & Sciences, Inc. (The
2 Recording Academy), by its attorneys, Proskauer Rose LLP, for its complaint
3 against defendants Hollywood Entertainment Group LLC, d/b/a/ VIP Concierge, Inc.,
4 and Craig Banaszewski, alleges as follows:
5
6
THE PARTIES
1.
The Recording Academy is a Delaware not-for-profit corporation with
7 its principal place of business located at 3030 Olympic Boulevard, Santa Monica,
8 California 90404. The Recording Academy has over 18,000 members. For more than
9 50 years The Recording Academy has represented the individuals who contribute to
10 the creation and exploitation of recorded music, including recording artists,
11 musicians, songwriters and record producers. Among other activities, The Recording
12 Academy presents the GRAMMY Awards, the only peer-presented awards that
13 honor artistic achievement in the music industry. The annual GRAMMY Awards
14 ceremony is telecast throughout the world. The GRAMMY Awards is a private,
15 invitation-only event that is closed to the general public. The Recording Academy is
16 the owner of the mark MUSICS BIGGEST NIGHT, copyrights and trademarks in
17 its Refreshed Gramophone Design logo (the Gramophone Logo), and
18 copyright-protected photographs from GRAMMY Awards events.
19
2.
On information and belief, defendant Hollywood Entertainment Group
20 LLC is a Nevada limited liability company with its principal place of business located
21 at 9107 Wilshire Blvd., Suite 450, Beverly Hills, CA 90210. Upon further
22 information and belief, Hollywood Entertainment Group LLC does business under
23 the trade name VIP Concierge, Inc. It is a ticket broker for sought-after
24 entertainment, sporting, and other events, and offers to sell and sells such tickets at a
25 substantial premium above the face value, sometimes as part of entertainment
26 packages. It has offered to sell and/or sold such tickets in every state of the United
27 States, including California, through, among other things, its website
28 www.thevipconcierge.com.
2
3.
On information and belief, defendant Craig Banaszewski is an individual
2 residing in or around Los Angeles, California, and the owner and managing member
3 of Hollywood Entertainment Group LLC.
4
5
NATURE OF THE ACTION

4.
This is a complaint for trademark infringement, copyright infringement,
6 false association, unfair competition, interference with contractual relationships,

7 unfair or deceptive business practices under state law, and inducement of trespass
8 arising out of false and misleading representations defendants made and continue to
9 make through, among other things, (a) the unauthorized offering for sale and sale of
10 non-public tickets to The Recording Academys GRAMMY Awards ceremony; and
11 (b) defendants knowing and willful display and commercial use of The Recording
12 Academys federally registered trademark MUSICS BIGGEST NIGHT, the
13 copyright and trademark-protected Gramophone Logo, and copyright-protected
14 photographs of previous GRAMMY Awards events.
15
5.
In or about January 2015, The Recording Academy learned that
16 defendants were offering for sale and/or selling tickets to the 57th Annual GRAMMY
17 Awards ceremony, scheduled for February 8, 2015, on www.thevipconcierge.com
18 and using The Recording Academys federally protected intellectual property to
19 advertise those unauthorized ticket sales.
20
6.
On January 5, 2015, The Recording Academys attorney wrote to
21 defendants to remind them of, among other things, The Recording Academys
22 restrictions on the transfer or sale of GRAMMY Awards tickets, and that any
23 unauthorized transfer or sale is unlawful, will automatically render the tickets void,
24 and subject the ticket holders to ejection from the GRAMMY Awards ceremony as
25 trespassers. The Recording Academy demanded that defendants cease and desist
26 from direct or indirect references to MUSICS BIGGEST NIGHT and the
27 Gramophone Logo and from offering to sell and selling tickets to the GRAMMY
28 Awards ceremony. Counsel further informed defendants that if they did not remove
3
1 the offending Web page, and permanently cease their unauthorized and unlawful
2 activities with respect to GRAMMY Awards tickets in any year, The Recording
3 Academy would take steps to enforce its legal rights and remedies without further
4 notice.
5
7.
Defendants did not respond to the January 5, 2015 letter, have continued
6 to offer for sale and sell tickets to the February 8, 2015 GRAMMY Awards
7 ceremony, and are using The Recording Academys intellectual property to confusion
8 and deceive consumers into believing that the tickets sold by Hollywood
9 Entertainment Group are authorized by The Recording Academy and valid for entry
10 into the February 8, 2015 GRAMMY Awards ceremony when they are not.
11
8.
Defendants are well aware of The Recording Academys restrictions on
12 tickets to the Annual GRAMMY Awards ceremony, and continue their unlawful
13 activity despite knowing the harm that it causes to both the unwitting members of the
14 public, who pay thousands of dollars for, among other things, the tickets, awards
15 show attire, and travel expenses, only to be refused entry to or worse, ejected from
16 the GRAMMY Awards ceremony, and The Recording Academy, whose goodwill and
17 reputation suffer as a result of the negative attention that results from its having to
18 exclude unauthorized ticketholders from this exclusive event.
19
9.
As detailed in a Complaint defendant Hollywood Entertainment Group
20 LLC filed last year against a ticket reseller whose tickets to the February 10, 2013 55th
21 Annual GRAMMY Awards ceremony The Recording Academy invalidated upon
22 learning they were transferred without permission, The Recording Academy takes the
23 privacy of the GRAMMY Awards ceremony seriously and will invalidate any tickets
24 which it learns are the subject of an unauthorized sale. See Exhibit A at 8
25 (Complaint filed in Hollywood Entertainment Group LLC v. Blakeley, et al, Civil
26 Case No. BC509381 (L.A.S.C. May 17, 2013)).
27
10.
Even prior to the 55th Annual GRAMMY Awards ceremony, The
28 Recording Academy had contacted defendants to warn them that tickets to certain
4
1 non-public GRAMMY Awards events are private, invitation only events and that any
3 and subject the ticket holders to ejection from private GRAMMY Awards events as
4 trespassers.
5
11.
Specifically, counsel for The Recording Academy wrote to defendants
6 three years ago, on January 4, 2012 after The Recording Academy learned that
7 defendants were offering for sale and/or selling tickets to the 54th annual GRAMMY
8 Awards ceremony on www.thevipconcierge.com. The letter advised defendants that
9 the GRAMMY Awards telecast is not open to the general public, that The Recording
10 Academys ticket policy, to which all purchasers agree to be bound, restricts transfer
11 or resale of tickets to the annual GRAMMY Awards telecast, and that anyone who
12 seeks to use a ticket to the annual GRAMMY Awards telecast in contravention of this
13 policy will be denied entrance to and/or ejected from the GRAMMY Awards telecast.
14 Counsel further demanded that defendants cease and desist from this conduct, which
15 confuses the public and damages the reputation and goodwill of the GRAMMY
16 Awards and The Recording Academy, and further demanded that defendants cease
17 using The Recording Academys protected intellectual property.
18
12.
Because (a) defendants responded on January 12, 2012 explaining that
19 they had removed all references to the GRAMMY Awards on their site and would not
20 sell tickets to this event; and (b) The Recording Academy also separately confirmed
21 that on January 10, 2012, the listing offering tickets to the 54th Annual GRAMMY
22 Awards telecast had been removed from the www.vipconcierge.com website, The
23 Recording Academy did not pursue the matter further at that time.
24
13.
Despite having knowledge of The Recording Academys restrictions on
25 the transfer and sale of GRAMMY Awards tickets that any unauthorized transfer or
26 sale is unlawful, will automatically render the tickets void, and subject the ticket
27 holders to ejection from the GRAMMY Awards ceremony as trespassers, defendants
28 have continued to offer to sell and/or sell tickets to the 57th Annual GRAMMY
5
1 Awards ceremony scheduled for February 8, 2015. Thus, defendants are perpetrating
2 a fraud on the public.
3
14.
In their attempt to perpetrate the unauthorized sale of GRAMMY
4 Awards ceremony tickets, defendants are also infringing The Recording Academys
5 intellectual property rights by utilizing the mark MUSICS BIGGEST NIGHT,
6 displaying images of the trademark and copyright-protected Gramophone Logo, and
7 copyright-protected photographs from prior GRAMMY Awards telecasts.
8
9
JURISDICTION AND VENUE

15.
This action arises under the federal trademark statute (the Lanham
10 Act), 15 U.S.C. 1051, et seq. and under the federal copyright laws (the
11 Copyright Act), 17 U.S.C. 101, et seq.
12
16.
This Court has subject matter jurisdiction over this action pursuant to 15
13 U.S.C. 112, and 28 U.S.C. 1331, 1338 and 1367.

14
17.
The Recording Academy is informed and believes, and on that basis
15 alleges, that this Court has personal jurisdiction over defendants because (i) defendant
16 Hollywood Entertainment Group LLC has its principal place of business in the State
17 of California and this judicial district; (ii) defendant Craig Banaszewski is a resident
18 in the State of California and this judicial district; (iii) defendants conduct business
19 within the State of California and this judicial district; (iii) the causes of action
20 asserted in this Complaint arise out of defendants contacts with the State of
21 California and this judicial district; and (v) defendants have caused tortious injury to
22 The Recording Academy in the State of California and this judicial district.
23
18.
Venue is proper in this judicial district pursuant to 28 U.S.C. 1391(b)
24 and (c) because (i) defendant Hollywood Entertainment Group LLC has its principal
25 place of business in the State of California and this judicial district; (ii) defendant
26 Craig Banaszewski is a resident in the State of California and this judicial district; (iii)
27 defendants conduct business within the State of California and this judicial district;
28 (iii) the causes of action asserted in this Complaint arise out of defendants contacts
6
1 with the State of California and this judicial district; and (v) defendants have caused
2 tortious injury to The Recording Academy in the State of California and this judicial
3 district.
4
5
FACTS COMMON TO ALL COUNTS

19.
The Recording Academys GRAMMY Awards ceremony telecast
6 attracts approximately 25 million viewers in the United States and approximately 600
7 million viewers in the rest of the world. The biggest names in the entertainment world
8 attend the ceremony. Attendance in person is a highly sought-after privilege and, for
9 music fans, a cause for great excitement. The Recording Academy offers tickets on a
10 restricted basis only to their dues-paying members and to nonmember grantees such
11 as The Recording Academys promotional and sponsorship partners. Tickets to the
12 GRAMMY Awards ceremony are not for sale to the general public.
13
20.
Each ticket to the GRAMMY Awards ceremony issued by The
14 Recording Academy is, on its face, nontransferable except in a manner specifically

15 authorized in writing by The Recording Academy. The admonition on the tickets
16 states: This ticket is not transferable . Tickets transferred or re-sold without
17 permission will be revoked and their bearers deemed trespassers. Each ticket
18 transferred or sold without such permission is void.
19
21.
Each member of The Recording Academy who is offered the
20 opportunity to buy a limited number of tickets is required to sign and submit an

21 Academy Member Order Form that contains the following language:
22
These tickets are not transferable and require your personal
23
attendance along with your guest.
24
25
PLEASE READ THE FOLLOWING AND SIGN
26
BELOW. Tickets to Recording Academy events,
27
including but not limited to the GRAMMY Awards, are for
28
use by the account holder and its invited guest(s) only, are
7
not transferable by account holder or any of its invited
guests, and may not be sold, otherwise transferred or used
for any other purpose, including promotional, commercial,
advertising, or other trade purposes, without the express
written consent of The Recording Academy. Tickets sold,
otherwise transferred or used in violation of this policy
shall be deemed revoked and void, and their bearers
deemed trespassers at all Recording Academy events. By
accepting delivery of tickets, the account holder and its
10
guests are bound by this Ticket Policy and the account
11
holder agrees to inform with due diligence all of its invited
12
guests of the terms of this Ticket Policy. The Recording
13
Academy reserves all legal rights and remedies. Your
14
signature below is evidence of your agreement to comply
15
with this Ticket Policy.
16 Comparable restrictions govern the distribution of tickets to The Recording

17 Academys nonmember invitees, including under authorized promotional and
18 sponsorship programs.
19
22.
To further emphasize the strict prohibition against unauthorized transfer
20 or sale, the Order Confirmation sent to each invitee who ordered GRAMMY Awards
21 tickets contains the following language:
22
TICKETS ARE NOT TRANSFERABLE
23
Tickets to Recording Academy events, including but not
24
limited to the GRAMMY Awards, are for use by the
25
account holder and its invited guest(s) only, are not
26
transferable by account holder or any of its invited guests,
27
and may not be sold, otherwise transferred or used for any
28
other purpose, including promotional, commercial,

8
holder agrees to inform with due diligence all of its
invited guests of the terms of this Ticket Policy. The
10
11
Recording Academy reserves all legal rights and remedies.

23.
12 or sale, when an invitee of The Recording Academy, or its designee, picks up the
13 GRAMMY Awards tickets from The Recording Academy, the invitee is required to
14 sign a Ticket Release Form and place the invitees initials next to the following
15 language:
16
TICKETS ARE NON-TRANSFERABLE
17
I understand that tickets to Recording Academy events,
18
including but not limited to the GRAMMY Awards, are for
19
use by the account holder and its invited guest(s) only, are
20
not transferable by account holder or any of its invited
21
guests, and may not be sold, otherwise transferred or used
22
for any other purpose, including promotional, commercial,
23
24
25
26
27
28

9
holder agrees to inform with due diligence all of its
invited guests of the terms of this Ticket Policy. The
Recording Academy reserves all legal rights and remedies.
24.
6 or sale, when an invitee picks up GRAMMY Awards tickets from The Recording
7 Academy, the tickets are in an envelope with an affixed label that states:
8
GRAMMY Awards tickets are for use by the account
holder and its invited guest(s) only, are not transferable, and
10
may not be sold or used for any other trade purposes
11
without the express written consent of The Recording
12
Academy. Tickets used in violation of this policy shall be
13
deemed revoked and void, and their bearers deemed
14
trespassers. The Recording Academy reserves all legal
15
rights and remedies.
16
25.
17 or sale, the following language appears on each GRAMMY Awards ticket:

18
This ticket is a revocable license intended for use only by
19
the original purchaser and purchasers invited guest(s)
20
(Holder). This ticket may not be transferred or resold and
21
the rights granted herein may not be assigned. No
22
promotional, commercial, advertising or other trade use of
23
this ticket may be made without the prior express written
24
consent of The Recording Academy. Tickets obtained
25
from unauthorized sources or in contravention of the terms
26
and conditions of this ticket or applicable law will not be
27
honored, and their holders shall be deemed trespassers.
28
10
The violation or breach of any of the terms set forth above
will automatically terminate this license and shall render
the use of this ticket by the Holder for any purpose illegal
and unauthorized.
26.
Notwithstanding the prohibition against unauthorized transfer or sale of
6 GRAMMY Awards tickets, defendants continue to offer for sale and upon
7 information and belief, have sold tickets to the 57th Annual GRAMMY Awards
8 ceremonies.
9
27.
A search for GRAMMY Awards ceremony tickets on
10 www.thevipconcierge.com on January 20, 2015 led to a page advertising eleven

11 tickets for sale to the February 8, 2015 GRAMMY Awards telecast. See Exhibit B.
12
28.
However, merely two days later, in the morning of January 22, 2015,
13 only ten tickets were available for sale to the February 8, 2015 GRAMMY Awards
14 telecast on www.thevipconcierge.com. See Exhibit C.
15
29.
Later in the afternoon on January 22, 2015, only eight tickets were
16 available for sale to the February 8, 2015 GRAMMY Awards telecast on

17 www.thevipconcierge.com. See Exhibit D.
18
30.
On January 26, 2015, www.thevipconcierge.com had apparently sold
19 those eight tickets. See Exhibit E.

20
31.
Unless enjoined, defendants will continue to offer to sell and sell
21 GRAMMY Awards ceremony tickets to the unwitting public that upon sale or
22 transfer are void.
23
32.
By advertising for sale tickets to the 57th Annual GRAMMY Awards
24 ceremony, and using The Recording Academys intellectual property to do so,

25 defendants have caused, and continue to cause, members of the public to be confused
26 or deceived into believing that defendants are associated with, and or authorized to
27 transfer or sell such tickets by, The Recording Academy, when in fact only The
28 Recording Academy and its licensees are authorized to transfer or sell such tickets.
11
33.
On January 5, 2015, The Recording Academy informed defendants in
2 writing of the restrictions on the transfer or sale of GRAMMY Awards tickets, and
3 that any unauthorized transfer or sale is unlawful, will automatically render the tickets
4 void, and subject the ticket holders to ejection from the GRAMMY Awards ceremony
5 as trespassers. Defendants have ignored The Recording Academys demands that
6 they cease and desist offering to sell and/or selling GRAMMY Awards tickets.
7 Unless restrained by this Court, defendants will continue to offer to sell and sell
8 GRAMMY Awards tickets.
9
34.
As of the filing of this Complaint, the homepage at
10 www.thevipconcierge.com advertised tickets for sale to the GRAMMY Awards

11 ceremony under the trademarked phrase MUSICS BIGGEST NIGHT and a
12 photograph of a famous recording artist standing in front of a backdrop that includes
13 The Recording Academys trademark and copyright-protected Gramophone Logo.
14 See Exhibit F.
15
35.
The United States Patent & Trademark Office issued U.S. Trademark
16 Registration No. 3,089,285 on May 9, 2006 for the mark MUSICS BIGGEST
17 NIGHT in connection with [e]ntertainment services, namely, conducting an annual
18 awards ceremony to recognize artistic progress and achievement in the field of
19 recording arts and science.
20
36.
The United States Patent & Trademark Office issued U.S. Trademark
21 Registration No. 3,742,176 on January 26, 2010 for the Gramophone Logo trademark
22 in connection with, among other things, entertainment services in the nature of
23 televised music awards programs [and] an annual awards program for the
24 presentation of awards in recognition of distinguished achievement in the field of
25 music. A true and correct copy of the Gramophone Logo trademark registration
26 certificate is attached as Exhibit G.
27
37.
The United States Copyright Office issued U.S. Copyright Registration
28 No. VA0001735666 on August 2, 2010 for the Gramophone Logo.

12
38.
Defendants also have used and are using at least six images from prior
2 GRAMMY Awards events without The Recording Academys permission to

3 commercially exploit tickets to the 57th Annual GRAMMY Awards ceremony.
4
39.
For each of these six photographs, which are more fully described below
5 (collectively, the GRAMMY Photographs), The Recording Academy has filed

6 applications for copyright registration with the United States Copyright Office:
7
a.
Macklemore in the press room at the GRAMMY Nominations

Concert Live!! held on December 6, 2013. See Exhibit H.
b.
10
Katy Perry performing at the 51st Annual Grammy Awards held

on February 8, 2009. See Exhibit I.
11
c.
Jay-Z and Rihanna accepting a GRAMMY Award at the 50th
12
Annual GRAMMY Awards ceremony held on February 9, 2008.
13
See Exhibit J.
14
d.
15
GRAMMY Awards held on November 4, 2009. See Exhibit K.
16
e.
17
Shakira performing at the 49th Annual GRAMMY Awards held

on February 11, 2007. See Exhibit L.
18
f.
19
20
David Bisbal and Kany Garcia presenting at the 10th annual Latin
Paul McCartney performing at the 51st Annual GRAMMY

Awards held on February 8, 2009. See Exhibit M.
40.
In addition to infringing The Recording Academys intellectual
21 property, defendants statements on their websites have been and are false and
22 misleading. Defendants have not disclosed to the public that GRAMMY Awards
23 tickets offered for sale and/or sold by or through defendants are invalid, and that any
26 trespassers. By using a false and unauthorized endorsement to offer to sell and/or sell
27 GRAMMY Awards tickets, defendants are causing members of the public to be
28 confused or deceived into believing that The Recording Academy has authorized
13
1 defendants to engage in such conduct when in fact it has not. The false and
2 misleading representations that defendants have made and continue to make in
3 connection with commercial exploitation of their ticket sales misrepresent the
4 qualities of the goods defendants are offering to sell and/or selling purportedly valid
5 GRAMMY Awards tickets that in fact are invalid upon transfer or sale.
6
41.
As a direct result of defendants false and unauthorized endorsement and
7 misleading statements about the nature and qualities of the goods they are offering to
8 sell and/or selling, The Recording Academy is suffering, and will continue to suffer,
9 irreparable injury for which there is no adequate remedy at law. Money damages
10 cannot fully repair the damage that will be done to The Recording Academys
11 reputation and goodwill if it must turn away would-be ceremony attendees on the red
12 carpet because they have unwittingly purchased void tickets from Defendants.
13
42.
Defendants actions were and are undertaken knowingly, willfully and
14 wantonly. In addition to having been warned by The Recording Academy,

15 Hollywood Entertainment Group LLCs own prior pleadings detail what has
16 happened when it sells void tickets to the Annual GRAMMY Awards show the
17 ticketholders are barred or ejected from the ceremony. Yet, Defendants have
18 continued to sell void tickets to subsequent GRAMMY Awards ceremonies to
19 unwitting members of the public.
20
43.
The foregoing actions have occurred in, or in a manner affecting,
21 interstate commerce.
22
44.
On January 5, 2015, having discovered defendants unlawful conduct
23 described herein, The Recording Academy: (a) informed defendants of the

24 restrictions on the transfer or sale of GRAMMY Awards tickets, and that any
27 trespassers; (b) demanded that defendants cease and desist offering to sell and selling
28 GRAMMY Awards tickets; (c) demanded that defendants provide written assurances
14
1 that they will not offer to sell and/or sell GRAMMY Awards tickets in the future and
2 (d) cease using The Recording Academys intellectual property. Defendants have not
3 complied with these demands.
4
45.
Notwithstanding the foregoing, without the Recording Academys
5 authorization or consent, defendants have continued to offer to sell and/or sell

6 GRAMMY Awards tickets to the 57th Annual GRAMMY Awards ceremony.
7 Defendants have done so knowing that their conduct is unlawful and subjects them to
8 liability for, among other things, trademark infringement, copyright infringement,
9 false association, unfair competition, interference with contractual relationships,
10 unfair or deceptive business practices under state law, and inducement of trespass.
11
46.
Unless restrained and enjoined by this Court, defendants will continue to
12 engage in the unlawful activities described herein.

13
COUNT I
14
TRADEMARK INFRINGEMENT IN VIOLATION OF 15 U.S.C. 1114
15
(Against All Defendants)
16
47.
The Recording Academy repeats and realleges every allegation
17 contained in paragraphs 1-46 as though fully set forth herein.

18
48.
The MUSICS BIGGEST NIGHT trademark is an inherently distinctive,
19 strong, valid, and protectable trademark owned by The Recording Academy.

20
49.
The Gramophone Logo trademark is an inherently distinctive, strong,
21 valid, and protectable trademark owned by The Recording Academy.

22
50.
Defendants are infringing The Recording Academys registered
23 trademarks in connection with their unauthorized offering for sale and sale of
24 non-publically available tickets to the GRAMMY Awards ceremony.
25
51.
Defendants have displayed and/or commercially used the marks
26 MUSICS BIGGEST NIGHT and the Gramophone Logo as part of their website
27 advertisements. Defendants display or use of these marks is and has been without the
28 consent or authorization of The Recording Academy and for commercial purposes.
15
52.
Defendants use of the term MUSICS BIGGEST NIGHT and the
2 Gramophone Logo to commit unauthorized sales of GRAMMY Awards ceremony

3 tickets comprises an infringement of The Recording Academys registered
4 trademarks and is likely to cause confusion, mistake and deception of the public as to
5 the identity, origin and validity of defendants goods, causing irreparable harm to The
6 Recording Academy for which there is no adequate remedy at law.
7
53.
By reason of the foregoing acts, defendants are liable to The Recording
8 Academy for trademark infringement under 15 U.S.C. 1114.

9
54.
This is an exceptional case within the meaning of Section 35 of the
10 Lanham Act, 15 U.S.C. 1117, entitling The Recording Academy to, among other
11 things, treble damages and an award of reasonable attorneys fees.
12
COUNT II
13 COPYRIGHT INFRINGEMENT IN VIOLATION OF 17 U.S.C. 106, et seq.

14
15

55.

17
56.
Defendants have displayed and/or commercially used The Recording
18 Academys copyrighted Gramophone Logo in their website advertisements.

19 Defendants display or use of the Gramophone Logo is and has been without the
21 Accordingly, defendants have knowingly and wilfully infringed The Recording
22 Academys copyright in its Gramophone Logo.
23
57.
Defendants have displayed and/or commercially used The Recording
24 Academys copyrighted GRAMMY Photographs in their website advertisements.

25 Defendants display or use of the GRAMMY Photographs is and has been without the
27 Accordingly, defendants have knowingly and wilfully infringed The Recording
28 Academys copyright in its GRAMMY Photographs.
16
58.
The Recording Academy has suffered serious injury as a result of the
2 foregoing infringement of its copyrights, including harm to its goodwill and

3 reputation in the marketplace. In addition, The Recording Academy will continue to
4 suffer serious injury if defendants are not enjoined from displaying on its website or
5 otherwise commercially using the Gramophone Logo and/or GRAMMY
6 Photographs. The Recording Academy has no adequate remedy at law for
7 defendants knowing and willful acts of infringement. Therefore, The Recording
8 Academy is entitled to preliminary and permanent injunctions enjoining defendants
9 acts of infringement and to recover its costs and reasonable attorneys fees from
10 defendants pursuant to 17 U.S.C. 505, in addition to its lost profits and actual
11 damages or statutory damages for defendants knowing and willful infringements of
12 The Recording Academys copyrighted works.
13
COUNT III
14
FALSE ASSOCIATION AND UNFAIR COMPETITION IN VIOLATION OF
15
15 U.S.C. 1125(a)(1)(A)
16
17
59.

19
60.
Defendants conduct as described herein has created a likelihood of
20 confusion as to whether The Recording Academy is endorsing the sale of GRAMMY

21 Awards ceremony tickets constitutes false and misleading representations of fact in
22 connection with defendants goods, services and commercial activities.
23
61.
By offering for sale and/or selling tickets to the 57th Annual GRAMMY
24 Awards telecast, defendants have been causing members of the public to be confused
25 and deceived into believing that The Recording Academy authorized, approved or
26 somehow sponsored the sale of such tickets or that defendants are otherwise affiliated
27 with The Recording Academy, when in fact only The Recording Academy and its
28
17
1 licensees are authorized to sell such tickets, and The Recording Academy will not
2 fulfill a ticket order from defendants.
3
62.
Defendants conduct as described herein has caused harm to The
4 Recording Academys goodwill and reputation as a result of the diminution in the

5 glamour and exclusivity associated with the GRAMMY Awards ceremony and the
6 negative publicity associated with the need to exclude unauthorized ticket holders
7 from entering its private event.
8
63.
Accordingly, defendants conduct as described herein constitutes unfair
9 competition and false representations concerning the association and endorsement of

10 goods in violation of 15 U.S.C. 1125(a)(1)(A).
11
64.
This is an exceptional case within the meaning of Section 35 of the
12 Lanham Act, 15 U.S.C. 1117, entitling The Recording Academy to, among other
13 things, treble damages and an award of reasonable attorneys fees.
14
COUNT IV
15
COMMON LAW INTERFERENCE WITH
16
CONTRACTUAL RELATIONSHIPS
17
18
65.

20
66.
Based on The Recording Academy having informed defendants that
21 GRAMMY Awards tickets are nontransferable, the statement on GRAMMY Awards

22 tickets that This ticket is not transferable . Tickets transferred or re-sold without
23 permission will be revoked and their bearers deemed trespassers, and defendants
24 knowledge and experience as a professional ticket broker, defendants have been
25 aware of contracts between The Recording Academy and authorized ticket holders,
26 which provide that the tickets are nontransferable and cannot be sold. On information
27 and belief, defendants have also been aware that The Recording Academys
28
18
1 GRAMMY Awards Ticket Order Form and Ticket Release Form provide that the
2 tickets are void upon transfer or sale.
3
67.
Upon information and belief, defendants intentionally induced The
4 Recording Academys members and invitees to breach their contracts by transferring

5 and/or selling GRAMMY Awards tickets to defendants and/or their customers.
6 Defendants did so with the intent to interfere with and disrupt the contractual
7 relationships between The Recording Academy and certain of its members and
8 invitees. Defendants induced, and unless enjoined will continue to induce, such
9 members and invitees to breach their contracts with The Recording Academy.
10 Defendants conduct has denied, and will continue to deny, The Recording Academy
11 the full benefits of the contracts with its members and invitees.
12
68.
Upon information and belief, certain members and invitees of The
13 Recording Academy have in fact breached their contracts with The Recording
14 Academy by purchasing GRAMMY Award tickets from The Recording Academy or
15 its licensees with no intention of honoring the obligations and restrictions on transfer
16 contained therein, and then by transferring and/or selling the GRAMMY Awards
17 tickets to defendants or their customers. These members and invitees of The
18 Recording Academy have in fact repudiated those obligations and restrictions.
19
69.
As a result of defendants conduct as described herein, The Recording
20 Academy has suffered actual and compensatory damages in an amount to be

21 determined at trial.
22
70.
Defendants conduct as described herein constitutes tortious interference
23 with The Recording Academys aforementioned contractual relationships with

24 certain of its members and invitees.
25
26
27
28
19
COUNT V
UNFAIR OR DECEPTIVE ACTS OR PRACTICES IN
VIOLATION OF CAL. BUS. & PROF. CODE 17200 AND 17500
71.

7
72.
The Recording Academy has rented the Staples Center for the 57th
8 Annual GRAMMY Awards ceremony, and will rent venues for future GRAMMY
9 Awards ceremonies. The Recording Academy has and will have the right to the
10 exclusive possession of such venues during the days and times of the GRAMMY
11 Awards ceremony and related events.
12
73.
Defendants conduct in offering to sell and/or selling GRAMMY
13 Awards tickets constitutes an inducement to The Recording Academys members and

14 invitees to breach their contracts with The Recording Academy, and an inducement to
15 the purchasers of such tickets to commit a trespass.
16
74.
At all relevant times, defendants have been on notice that: (a) the
17 GRAMMY Awards ceremony is a private event; (b) The Recording Academy does
18 not permit the transfer or sale of GRAMMY Awards tickets; and (c) ticket bearers not
19 invited by The Recording Academy possess void tickets and will be subject to
20 eviction from the GRAMMY Awards ceremony as trespassers. Nevertheless,
21 defendants have offered to sell and/or sold GRAMMY Awards tickets, and continue
22 to offer to sell and/or sell such tickets.
23
75.
Members of the public are likely to be confused and deceived into
24 believing that if they purchase GRAMMY Awards tickets from or through

25 defendants, they are welcome to attend the GRAMMY Awards ceremony and access
26 the exterior areas of the ceremony. This is especially true because defendants are
27 commercial ticket brokers that routinely resell tickets to a variety of entertainment
28 events to the public.
20
76.
Defendants conduct as described herein constitutes unfair and
2 fraudulent business acts or practices and deceptive, untrue, and misleading

3 advertising in violation of California Business & Professions Code 17200 and
4 17500.
5
COUNT VI
INDUCEMENT OF TRESPASS
77.

10
78.
The Recording Academy rented entertainment venues for past
11 GRAMMY Awards ceremonies, has rented the Staples Center for the 57th Annual
12 GRAMMY Awards ceremony, and will rent venues for future GRAMMY Awards
13 ceremonies. Accordingly, The Recording Academy has and will have the right to the
14 exclusive possession of such venues during the days and times of GRAMMY Awards
15 ceremony and related events.
16
79.
Permission to enter the GRAMMY Awards ceremony, including its
17 related areas, is restricted to invitees of The Recording Academy.

18
80.
Members of the public who in the future may purchase tickets to attend
19 GRAMMY Awards ceremonies, including the 57th Annual GRAMMY Awards

20 ceremony at the Staples Center scheduled for February 8, 2015, will be trespassers, as
21 will defendants themselves for causing the trespasses.
22
81.
By enabling members of the public to attend the GRAMMY Awards
23 ceremony, defendants intentionally and wrongfully intruded, and will continue to

24 intrude, into a private event.
25
82.
Defendants conduct as described herein constitutes an inducement of
26 trespass by those members of the public who purchase GRAMMY Awards tickets
27 from or through defendants.
28
21
83.
The Recording Academy has suffered, and will suffer, damage resulting
2 from defendants unjustified and wrongful conduct. Such damage includes the
3 trespasses into the GRAMMY Awards ceremony by people who are not members or
4 invitees of The Recording Academy, interference with The Recording Academys
5 efforts to protect against potential security breaches, and harm to The Recording
6 Academys goodwill and reputation caused by the diminution in the glamour and
7 exclusivity associated with the GRAMMY Awards ceremony and the negative
8 publicity associated with the need to exclude and eject unauthorized ticket holders
9 from entering the private event. Such damage is incalculable and irreparable. The
10 Recording Academy is, therefore, entitled to preliminary and permanent injunctive
11 relief.
12
PRAYER FOR RELIEF
13
WHEREFORE, The Recording Academy prays for judgment as follows:
14
1.
Temporarily, preliminarily and permanently enjoining Hollywood
15 Entertainment Group LLC, its officers, agents, servants and employees, and all
16 persons in active concert and participation with it, and Craig Banaszewski from:
17
(a)
Offering or attempting to offer to buy or sell, or soliciting the
18 purchase or sale of, any ticket, badges, credentials or anything entitling access to any
19 GRAMMY Awards ceremony, pre- and post-ceremony events such as the
20 GRAMMY Celebration Party, or any other event sponsored by or affiliated with The
21 Recording Academy, the GRAMMY Foundation, Inc., and/or the MusiCares
22 Foundation, Inc. (including without limitation the MusiCares Person of the Year
23 event);
24
(b)
Offering to perform, attempting to perform, or performing any act
25 as an intermediary, broker or middleman relating to the purchase, sale or transfer of

26 tickets, badges, credentials or anything entitling access to any GRAMMY Awards
27 ceremony, pre- and post-ceremony events such as the GRAMMY Celebration Party,
28 or any other event sponsored by or affiliated with The Recording Academy, the
22
1 GRAMMY Foundation, Inc., and/or the MusiCares Foundation, Inc. (including

2 without limitation the MusiCares Person of the Year event);
3
(c)
Advertising or publishing any offer to purchase, sell, transfer or
4 broker, or to otherwise act as an intermediary, broker or middleman, relating to the

5 purchase, sale or transfer of tickets, badges, credentials or anything entitling access to
6 any GRAMMY Awards ceremony, pre- and post-ceremony events such as the
10 event);
11
(d)
Entering or attempting to enter any GRAMMY Awards
12 ceremony, pre- and post-ceremony events such as the GRAMMY Celebration Party,
13 or any other event sponsored by or affiliated with The Recording Academy, the
14 GRAMMY Foundation, Inc., and/or the MusiCares Foundation, Inc. (including
15 without limitation the MusiCares Person of the Year event);
16
(e)
Participating in, aiding or facilitating, or attempting to participate
17 in, aid or facilitate, any effort by any person to gain unauthorized entry into any
18 GRAMMY Awards ceremony, pre- and post-ceremony events such as the
22 event);
23
(f)
Receiving any compensation, whether in money, in kind or
24 otherwise, for any of the acts proscribed in subparagraphs (a) through (e) above;
25
(g)
Using or displaying for any purpose any registered mark, or any
26 depiction, image, photograph, picture, illustration or other visual representation

27 containing any registered mark owned by The Recording Academy and/or any of its
28
23
1 affiliates, including without limitation the GRAMMY Foundation, Inc. and/or the
2 MusiCares Foundation, Inc.; and
3
(h)
Using or displaying for any purpose any registered copyright, or
4 any depiction, image, photograph, picture, illustration or other visual representation

5 containing any copyrighted material owned by The Recording Academy and/or any
6 of its affiliates, including without limitation the GRAMMY Foundation, Inc. and/or
7 the MusiCares Foundation, Inc.
8
2.
Requiring defendants, their officers, agents, servants and employees,
9 and all persons in active concert and participation with them, to: (a) engage in
10 corrective advertising on any and all websites that have contained an offer to sell
11 tickets to the GRAMMY Awards ceremony; (b) inform consumers that defendants
12 are not authorized to sell GRAMMY Awards tickets, and any unauthorized transfer or
13 sale of such is unlawful, will automatically render the tickets void, and subject the
14 ticket holders to ejection from the GRAMMY Awards ceremony as trespassers; and
15 (c) return and refund to all consumers all sums paid to defendants for GRAMMY
16 Awards tickets and related travel packages;
17
3.
Requiring defendants, their officers, agents, servants and employees,
18 and all persons in active concert and participation with them, to immediately disclose
19 to The Recording Academy any and all past and present sources of GRAMMY
20 Awards tickets, including tickets to the 57th Annual GRAMMY Awards ceremonies,
21 that defendants have reserved for sale, offered to sell, and/or sold;
22
4.
Directing that defendants account to The Recording Academy for all
23 gains, profits, and advantages derived from their wrongful conduct described herein;
24
5.
Directing that defendants pay The Recording Academy such damages as
25 it has sustained as a consequence of defendants wrongful conduct described herein,

26 with the precise amount to be determined at trial;
27
6.
Directing that the defendants pay The Recording Academy such
28 statutory damages as authorized by law;

24
7.
Directing that the aforesaid amounts be multiplied or otherwise
2 enhanced as authorized by law;

3
8.
Directing that defendants pay to The Recording Academy punitive
4 damages in an amount to be determined at trial;

5
9.
Directing that defendants pay to The Recording Academy pre- and
6 post-judgment interest;
7
10.
Directing that defendants pay to The Recording Academy the costs of
8 this action and reasonable attorneys fees pursuant to 15 U.S.C. 1117 and 17 U.S.C.
9 505; and
10
11.
Granting The Recording Academy such other and further relief as the
11 Court may deem just and proper.

12
13 DATED: January 27, 2015
14
Sandra A. Crawshaw-Sparks
Jennifer L. Jones
PROSKAUER ROSE LLP
15
16
17
18
19
_________________________________
/s/ Jennifer L. Jones
Jennifer L. Jones
Attorneys for Plaintiff
Sciences, Inc.
20
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DEMAND FOR JURY TRIAL
Plaintiff National Academy of Recording Arts & Sciences, Inc. hereby
3 demands a trial by jury.

4
5
6
DATED: January 27, 2015
Sandra A. Crawshaw-Sparks
Jennifer L. Jones
PROSKAUER ROSE LLP
7
8
9
10
11
_________________________________
/s/ Jennifer L. Jones
Jennifer L. Jones
Attorneys for Plaintiff
Sciences, Inc.
12
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Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 1 of 26 Page ID #:1

11 Sandra A. Crawshaw-Sparks, SBN 291101

UNITED STATES DISTRICT COURT

Case No. 2:15-cv-594

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 2 of 26 Page ID #:2

Plaintiff National Academy of Recording Arts & Sciences, Inc. (The

The Recording Academy is a Delaware not-for-profit corporation with

On information and belief, defendant Hollywood Entertainment Group

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 3 of 26 Page ID #:3

On information and belief, defendant Craig Banaszewski is an individual

NATURE OF THE ACTION

This is a complaint for trademark infringement, copyright infringement,

6 false association, unfair competition, interference with contractual relationships,

In or about January 2015, The Recording Academy learned that

On January 5, 2015, The Recording Academys attorney wrote to

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 4 of 26 Page ID #:4

Defendants are well aware of The Recording Academys restrictions on

As detailed in a Complaint defendant Hollywood Entertainment Group

Even prior to the 55th Annual GRAMMY Awards ceremony, The

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 5 of 26 Page ID #:5

Specifically, counsel for The Recording Academy wrote to defendants

Because (a) defendants responded on January 12, 2012 explaining that

Despite having knowledge of The Recording Academys restrictions on

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 6 of 26 Page ID #:6

In their attempt to perpetrate the unauthorized sale of GRAMMY

JURISDICTION AND VENUE

13 U.S.C. 112, and 28 U.S.C. 1331, 1338 and 1367.

The Recording Academy is informed and believes, and on that basis

Venue is proper in this judicial district pursuant to 28 U.S.C. 1391(b)

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 7 of 26 Page ID #:7

FACTS COMMON TO ALL COUNTS

The Recording Academys GRAMMY Awards ceremony telecast

Each ticket to the GRAMMY Awards ceremony issued by The

14 Recording Academy is, on its face, nontransferable except in a manner specifically

Each member of The Recording Academy who is offered the

20 opportunity to buy a limited number of tickets is required to sign and submit an

These tickets are not transferable and require your personal

attendance along with your guest.

PLEASE READ THE FOLLOWING AND SIGN

BELOW. Tickets to Recording Academy events,

including but not limited to the GRAMMY Awards, are for

Case 2:15-cv-00594-MMM-MAN Document 1 Filed 01/27/15 Page 8 of 26 Page ID #:8

not transferable by account holder or any of its invited

guests, and may not be sold, otherwise transferred or used

for any other purpose, including promotional, commercial,

advertising, or other trade purposes, without the express

written consent of The Recording Academy. Tickets sold,

otherwise transferred or used in violation of this policy

shall be deemed revoked and void, and their bearers

deemed trespassers at all Recording Academy events. By

accepting delivery of tickets, the account holder and its

guests are bound by this Ticket Policy and the account

holder agrees to inform with due diligence all of its invited

guests of the terms of this Ticket Policy. The Recording

Academy reserves all legal rights and remedies. Your

signature below is evidence of your agreement to comply

with this Ticket Policy.

16 Comparable restrictions govern the distribution of tickets to The Recording

To further emphasize the strict prohibition against unauthorized transfer

TICKETS ARE NOT TRANSFERABLE

Tickets to Recording Academy events, including but not

limited to the GRAMMY Awards, are for use by the

account holder and its invited guest(s) only, are not

transferable by account holder or any of its invited guests,