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Supreme Court of the State of New York Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 1 of 36 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK -------------------------------------------------------------------X NICK KATSORIS and THE LOUKOUMI MAKE A Case No. DIFFERENCE FOUNDATION, INC. Plaintiffs, VERIFIED COMPLAINT -against- WME IMG, LLC, IMG PRODUCTIONS, LLC and VIACOM INC. d/b/a NICKELODEON JURY TRIAL DEMANDED Defendants. -------------------------------------------------------------------X Plaintiffs NICK KATSORIS and THE LOUKOUMI MAKE A DIFFERENCE FOUNDATION, INC., by their attorneys DUNNINGTON, BARTHOLOW & MILLER LLP, allege as follows: PRELIMINARY STATEMENT 1. This is an action for copyright and trademark infringement pursuant to the Copyright Act, 17 U.S.C. §101 et seq. and the Lanham Act, 15 U.S.C. § 1501 et seq., together with a claim for a declaratory judgment concerning the character “Loukoumi the Lamb” and related intellectual property as well as New York State claims for trademark infringement, dilution, unfair competition, violations of Gen. Bus Law § 349, breach of fiduciary duty, and breach of contract, or, in the alternative, breach of implied contract. Additionally, Plaintiffs seek an injunction in aid of arbitration. 2. Nicholas Katsoris, known professionally as Nick Katsoris (“Katsoris”), is the sole author of an award-winning series of children’s books featuring the copyrighted character “Loukoumi the Lamb” as seen in the graphic below (the “Loukoumi character” or “Loukoumi”). 1 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 2 of 36 3. Having spent over a decade publishing and promoting the Loukoumi series, Katsoris has registered multiple copyrights and trademarks with the U.S. Copyright Office and Patent and Trademark Office (“PTO”), respectively, concerning the Loukoumi character. 4. A website concerning the Loukoumi character, http://www.Loukoumi.com, offers Loukoumi books, audio books and other Loukoumi merchandise for sale. Loukoumi products are also offered for sale at other websites including Amazon.com and BN.com and by retailers across the United States. 5. Over the years, Katsoris has donated a substantial portion of the profits from Loukoumi books to multiple children’s charities and schools including St. Jude Children’s Research Hospital and The Make-A-Wish Foundation. To support this charitable mission, Katsoris has donated certain rights in the Loukoumi character to Plaintiff The Loukoumi Make A Difference Foundation (the “Foundation”). 6. For years, many celebrities have endorsed Loukoumi books and Loukoumi- related activities and supported the work of the Foundation including, but not limited to, Jennifer Aniston, Morgan Freeman, Olympia Dukakis, Gloria Gaynor, Eli Manning, Ernie Anastos, Cat Cora and Nia Vardalos. 2 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 3 of 36 7. In 2007, Katsoris launched a national Dream Day Contest for children. The contest involved children drawing a picture of themselves with Loukoumi in their dream career and completing the phrase: “I WANT TO BE A____________ BECAUSE…” as pictured below: After a successful first year, the contest was adapted to become a video contest where children recorded videos including the sentence: “When I grow up I Wanna Be…” More information about this contest is found at http://www.loukoumifoundation.org/dream_day.html. 8. In 2012, Katsoris pitched a reality show based on the Dream Day Contest to the entertainment and production company IMG. Based on the pitch, IMG agreed to work with Katsoris in representing Loukoumi and the Dream Day project. IMG and Katsoris pitched the Dream Day project to a number of potential purchasers. Katsoris also pitched the Dream Day project to Nickelodeon, a channel owned by Viacom Inc. 9. After a number of unsuccessful efforts, the Foundation hired IMG Productions LLC. IMG produced a pilot television special titled “Make A Difference With Loukoumi” 3 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 4 of 36 which aired on FOX broadcast stations across the United States, including Fox-5 in New York, in October 2014 (the “Special”). 10. The Special, produced by IMG pursuant to a work-for-hire agreement for which IMG was paid in excess of one hundred thousand dollars ($100,000) by the Foundation, featured videos of children expressing their dreams of what they would like to be when they grow up. The Special featured one girl named Sophia actually living her dream day of being a Broadway star. In another video featured in the Special, a child named Jordan discussed his dream of being a professional football player, which Katsoris also made come true by having Jordan meet New York Giants football stars Eli Manning and Odell Beckham, Jr. 11. In August 2011 and July 2015, Katsoris and The Foundation pitched the Special and a Dream Day Reality Television series based on the Special to Nickelodeon. 12. On September 22, 2015, Nickelodeon announced the 2016 launch of a children’s television series titled “I Wanna Be” starring and executively produced by Cam Newton. Newton is an IMG client and the star quarterback for the Carolina Panthers National Football League (“NFL”) team. 13. As set forth above, Nickelodeon and IMG had access to Katsoris’ and The Foundation’s valuable copyrighted and trademarked materials as well as other information constituting trade secrets or otherwise confidential materials. As described more fully below, the Nickelodeon “I Wanna Be” television series is a derivative work that infringes upon protected elements of Katsoris’ copyrights as well as the distinctive trademark phrase “I Wanna Be” in violation of the Lanham Act as well as New York’s trademark and unfair competition laws. Because “I Wanna Be” has not yet been published by Nickelodeon, additional evidence of 4 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 5 of 36 infringement is likely in the exclusive custody of Defendants and therefore cannot be pleaded at this time. Plaintiffs require discovery to supply additional relevant evidence in this action. 14. The production and publication of Nickelodeon’s infringing “I Wanna Be” series would be likely to cause consumer confusion, tarnish the “I Wanna Be” mark and dilute the strong Loukoumi brand that Katsoris and the Foundation have created over the years. Because of this imminent and irreparable harm, temporary and permanent injunctive relief is warranted. 15. Apart from the statutory claims, this action involves a breach of trust and a breach of fiduciary duty between Katsoris and IMG, his agent of many years. As described more fully below, IMG acted as a wolf in sheep’s clothing in using the Foundation’s money and the fluffy little lamb, Loukoumi, to open doors for IMG’s pecuniary gain at the Foundation’s expense. Specifically, once Katsoris and Loukoumi opened the doors at Viacom, IMG usurped Katsoris’ and the Foundation’s business opportunity by swapping Loukoumi for IMG’s client, football star Cam Newton, despite the clear duties owed to Katsoris. IMG’s conduct robbed Katsoris and the Foundation of a valuable business opportunity with Viacom channel Nickelodeon and worse, deprived charities supported by Katsoris and the Foundation of donations. Thus, even if the finder of fact were to find aspects of Katsoris’ work unprotected by federal copyright or trademark law, New York laws of contract, agency, unfair competition, unjust enrichment and equity generally would protect Katsoris’ labors and interests in developing Loukoumi, the Special, the reality show, and associated property, including the phrase “I Wanna Be”, from use by Defendants without permission and just compensation. 16. Given the relation in time between the Special, the pitch and negotiations with Nickelodeon, it is clear that “I Wanna Be” infringes upon the materials developed by Katsoris and the Foundation. As such, any contract between Nickelodeon and IMG or its client, Cam 5 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 6 of 36 Newton, is based on the unlawful copying, infringement and misappropriation of the work and corporate opportunities belonging to Katsoris and the Foundation and should be voided, rescinded or equitably amended. 17. To preserve the status quo ante, pending an arbitration between The Foundation and IMG, Plaintiffs respectfully request that, pursuant to the Federal Arbitration Act (“FAA”), a preliminary injunction be issued restraining Defendants from creating, broadcasting or disseminating a derivative work based on Plaintiffs’ intellectual property or trade secrets. PARTIES 18. Plaintiff The Loukoumi Make A Difference Foundation, Inc. is a 501(c)(3) New York not-for-profit corporation with a principal place of business in New York. The Foundation’s mission statement is “Teaching children to make a difference in their lives and the lives of others.” 19. Plaintiff Nick Katsoris is the sole creator of the Loukoumi character, author of the Loukoumi children’s book series, President of the Foundation, and a resident of Eastchester, New York. 20. Defendant WME IMG, LLC is a Delaware corporation doing business in New York County with a principal place of business located at 200 5th Avenue, 7th Floor New York, New York. 21. Defendant IMG Productions, LLC is a New York corporation doing business in New York County with a principal place of business located at 432 West 45th Street, New York, New York. 6 Case 1:16-cv-00135-RA Document 1 Filed 01/07/16 Page 7 of 36 22. Upon information and belief, WME IMG, LLC is the successor-in-interest or parent of or otherwise responsible for satisfying any judgment against IMG Productions, LLC (together, “IMG”). 23. Defendant Viacom Inc. is a Delaware corporation with a principal place of business located at 1515 Broadway, 52nd Floor, New York, New York. Viacom is a global mass- media company with interests in, among other things, cinema and cable television, including the Nickelodeon channel.
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