MIAMI (CN) - Inspired Records, which specializes in children's music, accuses Cleopatra Records of running "a massive digital music piracy operation," in which it "pay(s) nothing for rights and keep(s) all of the proceeds," in Federal Court.
Inspired Records was founded in the 1940s and produced children's records on its Peter Pan label. In the 1960s it diversified and began producing inexpensive pop, jazz, blues and holiday music.
Inspired describes Cleopatra Records as "one of the largest suppliers of digital recordings in the world."
Actually, according to the federal lawsuit, Cleopatra "is a massive digital music piracy operation that is selling hundreds of original music recordings produced and owned by plaintiff without authorization. Cleopatra's business model is simple - pay nothing for rights and keep all of the proceeds. Cleopatra digitizes the genuine recordings and artwork on used vinyl albums, photoshops the original album cover to obliterate all reference to the original record label, and then sells the digitized albums as its own product in online music stores. Cleopatra and the online music stores then split the proceeds from each sale of plaintiff's recordings and pay nothing to plaintiff."
The complaint continues: "Cleopatra goes to great lengths to avoid detection including operating under twenty different record label names, many of which do not appear on Cleopatra's own website. Cleopatra has no right to any of the hundreds of recordings or albums discussed herein, all of which were produced and are owned by plaintiff. Cleopatra was notified that it was infringing plaintiff's rights four months ago as part of a separate lawsuit, but has continued its unlawful conduct, and in fact, expanded it."
Inspired seeks statutory, compensatory and punitive damages for trademark violation, trafficking in counterfeit and illicit labels, false designation, deceptive and unfair trade and unjust enrichment.
It is represented by Justin Leto.