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Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 1 of 9

Wayne D. Carroll (Bar No. #024120)
INSPIRED IDEA SOLUTIONS, LLC
39506 N. Daisy Mountain Drive, Suite 122-501
Phoenix, AZ 85086
Phone: 602-361-9017
Fax: 888-965-3627
Email: [email protected]
Attorney for Plaintiff



UNITED STATES DISTRICT COURT
DISTRICT OF ARIZONA - PHOENIX

Plaintiff,



MASTERFILE CORPORATION,



v.

LIFECARE CHIROPRACTIC, INC., an
Arizona corporation;
and JAMES BOGASH, D.C., an individual,




Defendants.












COMPLAINT FOR COPYRIGHT

INFRINGEMENT

AND

DEMAND FOR A JURY TRIAL



Case No.:_________________________



Judge:___________________



Plaintiff MASTERFILE CORPORATION (“Masterfile”), for its Complaint against

Defendants, LIFECARE CHIROPRATIC, INC., and JAMES BOGASH, D.C. (collectively

referred to as “Defendants”), alleges as set forth below.

PARTIES

1. Masterfile is a Canadian corporation with its principal place of business at 3 Concorde

Gate, Fourth Floor, Toronto, Ontario, Canada M3C 3N7. Masterfile is a stock image licensing

agency in the business of licensing reproduction and display rights in images to users for a fee.

Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 2 of 9

2. On information and belief, Lifecare Chiropractic, Inc. (“Lifecare”), is a for-profit

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

of business in Mesa, Arizona. Lifecare may be served through its registered agent, Ronald P.

Adams, c/o Hoopes & Adams PLC, at 2410 W. Ray Road #1, Chandler, AZ 85224.

3. On information and belief, James Bogash, D.C. (“Dr. Bogash”), is an individual and

citizen of Mesa, Arizona, who at all times relevant to this action was the President of Lifecare.

Dr. Bogash may be served at the Lifecare headquarters listed at 1830 South Alma School Road,

Suite 135, Mesa, AZ 85210.

NATURE OF THE CLAIM, JURISDICTION AND VENUE

4. This action arises under the Federal Copyright Act of 1976, as amended, 17 U.S.C. §§

101, et seq. Jurisdiction is founded on 28 U.S.C. §§ 1331 and 1338(a).

5. This Court has personal jurisdiction over Defendants by virtue of their presence in this

District, as well as their transacting, doing, and soliciting business in this District.

6. Venue is proper under 28 U.S.C. §§ 1391(b)(1) and (c) and 1400(a).

7. Plaintiff demands a trial by jury on all of its claims for relief.

JURY DEMAND

OPERATIVE FACTS

8. In 2005, Masterfile obtained the exclusive assignment of the copyright in one (1) image

identified by Masterfile as Image No. 700-00644309, as shown below (the “Image”):



Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 3 of 9

9. Masterfile has complied in all respects with the Copyright Act of 1976, 17 U.S.C. § 101,

et seq., as amended, and all other laws and regulations governing copyrights and has secured the

exclusive rights and privileges in and to the copyright for the Image. The Register of Copyrights

for the U.S. Copyright Office issued Masterfile a Certificate of Registration for the copyright to

the Image, number VA 1-337-371, effective January 13, 2006, shown below.



Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 4 of 9

10. In or about April 2013, Masterfile became aware that Defendants were reproducing and

displaying the Image on a website at www.lifecarechiropractic.com/blog/2012/omega-3-vs-

adhd/, as shown below and indicated by the red arrow (the "Website").



Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 5 of 9



11. The Image as displayed on the Website included Masterfile’s watermark.

12. Upon information and belief, the Defendants control, own, and operate the Website,

through which they advertise their services and solicit customers.

13. On or about April 25, 2013, Masterfile provided notice via overnight courier to

Defendants that the Image appeared on the Website without authorization of Masterfile or the

law.

14. Defendants refused to pay retroactive license fees to Masterfile for the unauthorized use

of the Image on the Website.

15. Defendants are not, and have never been, licensed or authorized to reproduce or display

the Image on the Website.

Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 6 of 9

16. The Image is an original work of authorship fixed in a tangible medium of expression

from which it can be perceived, reproduced, or otherwise communicated, either directly or with

the aid of a machine or device, and as such is protected by copyright.

17. At all times relevant to this action, Masterfile was the sole and exclusive owner of all

right, title, and interest in and to the copyright in the Image.

FIRST CAUSE OF ACTION

Copyright Infringement – 17 U.S.C. §§ 101 et seq. (Lifecare)

18. Masterfile re-alleges and incorporates by reference paragraphs 1 through 17 above.

19. On information and belief, Defendants had access to the Image through the Internet.

20. Defendants' reproduction and display of the Image are substantially similar to the

Plaintiff’s Image which is protected by copyright.

21. Defendants have not compensated Masterfile for their reproduction and display of the

Image.

22. Without Masterfile’s authorization, Defendants reproduced and publicly displayed

Masterfile’s copyrightable work in violation of 17 U.S.C. § 501.

23. Defendants' conduct violates the exclusive rights belonging to Masterfile as owner of the

copyright for the Image, including without limitation, Masterfile's exclusive rights under 17

U.S.C. § 106.

24. As Masterfile first discovered Defendants' reproduction, display, and distribution of the

Image in or around April 2013, Masterfile's claims are within the three-year statute of limitations

period pursuant to 17 U.S.C. § 507(b).

25. As a direct and proximate result of its wrongful conduct, Defendants have realized and

continue to realize profits and other benefits rightfully belonging to Masterfile for the Image.

Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 7 of 9

Accordingly, Masterfile seeks an award of actual damages and profits against Defendants plus

attorneys’ fees and costs pursuant to 17 U.S.C. §§ 504(b) and 505.

26. In the alternative, Masterfile is entitled to and seeks statutory damages against

Defendants for their wrongful conduct, including attorneys’ fees and costs pursuant to 17 U.S.C.

§§ 504(c)(1) and 505.

27. Defendants' infringement of the Image was willful and performed with knowledge that

the reproduction and display of the Image were unauthorized; Masterfile is therefore entitled to

the recovery of enhanced statutory damages pursuant to U.S.C. § 504(c)(2).

SECOND CAUSE OF ACTION

Vicarious Liability (Dr. Bogash)



28. Masterfile re-alleges and incorporates by reference paragraphs 1 through 17 above.



29. As President of Lifecare, Dr. Bogash had both a legal right to stop or limit the directly

infringing conduct stemming from Lifecare’s use of the Image, as well as the practical ability to

do so.

30. Additionally, as President of Lifecare, Dr. Bogash gained a direct financial benefit from

the direct infringement of Lifecare through the unauthorized use of the Image.



31. As such, Dr. Bogash had: (1) the right and ability to supervise or control the infringing

activity; and (2) a direct financial benefit from that activity. Therefore, Dr. Bogash is vicariously

liable for the infringing activity.

32. As a direct and proximate result of Dr. Bogash’s vicarious infringement as described

above, Masterfile has suffered injuries and damages.

PRAYER FOR RELIEF

WHEREFORE, Masterfile prays for judgment from this Honorable Court as follows:

Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 8 of 9

33. that Defendants’ unauthorized conduct violates Masterfile’s rights under the Federal

Copyright Act;

34. that Lifecare willfully infringed Masterfile’s rights to the Image under the Federal

Copyright Act;

35. that Dr. Bogash is contributorily liable for the direct infringement of Masterfile’s

copyrights in the Image;

36. that Dr. Bogash is vicariously liable for the direct infringement of Masterfile’s copyrights

in the Image;

37. that Defendants be required to account to Masterfile for all gains, profits, and advantages

derived by each Defendant through the use of the Image;

38. that Defendants be required to pay Masterfile all profits and damages in such amount as

may be found pursuant to 17 U.S.C. § 504 (b) (with interest thereon at the highest legal rate) for

the infringement of the Image;

39. in the alternative, if Plaintiff so elects, that Defendants be required to pay Masterfile

maximum statutory damages in the amount of $30,000 for each infringement pursuant to 17

U.S.C. § 504 (c)(1); or such other amount as may be proper pursuant to 17 U.S.C. § 504;

40. that upon a finding that the infringements were willful, that Defendants be required to

pay Masterfile in the statutory maximum amount of $150,000 for each infringement pursuant to

17 U.S.C. § 504 (c)(2); or such other amount as may be proper pursuant to 17 U.S.C. § 504;

41. that Defendants be required to pay Masterfile its costs, reasonable attorneys’ fees, and

disbursements in this action, pursuant to 17 U.S.C. § 505;

Case 2:14-cv-01786-MHB Document 1 Filed 08/11/14 Page 9 of 9

42. that Defendants are subject to preliminary and permanent injunctions providing that each

Defendant shall deliver to Masterfile all copies of the Image, and all other materials containing

such infringing copies in each Defendant’s possession, custody or control, for destruction;

43. that Defendants, their agents, and servants be enjoined during the pendency of this action,

and permanently, from infringing the copyrights of Plaintiff in any manner and from selling,

publishing, marketing or otherwise using any copies of the Image, including any and all digital

or electronic copies of the Image;

44. for prejudgment and post-judgment interest, and all costs of court; and

45. for such other and further relief as the Court deems just and equitable.







Respectfully submitted this day, August 11, 2014.

































FOR THE PLAINTIFF:







By: /s/ Wayne Carroll
Wayne Carroll (AZ Bar ID 024120)
INSPIRED IDEA SOLUTIONS, LLC
39506 N. Daisy Mountain Dr. Suite 122-501
Phoenix, AZ 85086
Phone: 602-361-9017
Fax: 888-965-3627
Email: [email protected]

ATTORNEY FOR PLAINTIFF