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Copyright suit against Russ Whitney and his book publisher by Pete and Tony Youngs

United States District Court, N.D. Georgia.
REAL WORLD ENTERPRISES, INC., Pete Youngs, and Tony Youngs, Plaintiffs,
v.
WHITNEY EDUCATION GROUP, INC., Whitney Leadership Group, Inc., Whitney
Information Network, Inc., Russ Whitney, and Dearborn Financial Institute,
Inc., d/b/a Dearborn Trade Publishing, Defendants.
Civil Action File No. 1:03-CV-1697-TWT.
June 19, 2003.

Plaintiffs' Verified Complaint

COME NOW Plaintiffs REAL WORLD ENTERPRISES, INC., PETE YOUNGS, and TONY YOUNGS, (hereinafter, collectively, Plaintiffs), and hereby file this Plaintiffs' Verified Complaint (Complaint) against Defendants WHITNEY EDUCATION GROUP, INC., WHITNEY LEADERSHIP GROUP, INC., WHITNEY INFORMATION NETWORK, INC., and RUSS WHITNEY, (hereinafter, collectively Whitney) and DEARBORN FINANCIAL INSTITUTE, INC., d/b/a DEARBORN TRADE PUBLISHING, (hereinafter Dearborn) and show the Court as follows:
Jurisdiction & Venue

1.

Plaintiff, Real World Enterprises, Inc., is a Georgia corporation, authorized in all respects to do business within the State of Georgia, and is authorized to bring this action in this Court.
2.

Plaintiffs Pete Youngs and Tony Youngs are residents of the State of Georgia, and are authorized to bring this action in this Court.
3.

Defendant Whitney Information Network, Inc., is a Colorado Corporation doing business in the State of Georgia, Cobb County, and may be served with process through its registered agent: Marie B. Code, 1612 East Cape Coral Boulevard, Cape Coral, Florida 33904.
4.

Defendant Whitney Education Group, Inc., is a Florida Corporation doing business in the State of Georgia, Cobb County, and may be served with process through its registered agent: Marie B. Code, 1612 East Cape Coral Boulevard, Cape Coral, Florida 33904.
5.

Defendant Whitney Leadership Group, Inc., is a Florida Corporation doing business in the State of Georgia, Cobb County, and may be served with process through its registered agent: Marie B. Code, 1612 East Cape Coral Boulevard, Cape Coral, Florida 33904.
6.

Defendant Russ Whitney, is a resident of the State of Florida who has transacted business in the State of Georgia, Cobb County, and may be served at his place of work: 4818 Coronado Parkway, Cape Coral, Florida, 33904.
7.

Defendant Dearborn Financial Institute, Inc., d/b/a Dearborn Trade Publishing, is an Illinois Corporation registered and doing business in the State of Georgia, and may be served with process through its Corporate Secretary: Veronica Dillon, 888 Seventh Ave., New York, New York 10106.
8.

This is an action for infringement of Plaintiffs' federally registered copyrights in violation of the copyright laws of the United States, 17 U.S.C. § 101 et seq. This Court has jurisdiction over the matters complained of pursuant to 28 U.S.C. § 1338; and venue against Defendants is proper under 28 U.S.C. § 1400.
Statement of Facts

9.

Plaintiffs are in the business of authoring, designing, manufacturing, and selling, among other goods, educational seminars, home study video tapes, home study sound recordings and study manuals that instruct customers on the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. A copy of Plaintiffs' copyrighted seminar manuals, seminar video tapes, home study video tapes, home study sound recordings, and home study manuals are attached collectively hereto as Exhibits Al-A11.
10.

Over the course of approximately the last fourteen (14) years, Plaintiff Tony Youngs has authored in the United States a series of educational seminars, seminar manuals, seminar videos, home study videos, home study sound recordings, and home study manuals related to the process of finding, purchasing, and selling real estate that is in the process of foreclosure.
11.

Over the course of approximately the last six (6) years, Plaintiff Pete Youngs has authored in the United States a series of educational seminars, seminar manuals, seminar videos, home study videos, home study sound recordings, and home study manuals related to the process of rehabilitating real estate purchased as investment property during the foreclosure process.
12.

Plaintiffs sell these educational seminars, home study video tapes, home study sound recordings and study manuals that instruct customers on the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure; and sales thereof comprise one hundred percent (100%) of Plaintiffs' business in the United States.
13.

On or about March 27, 1997, The Youngs entered into an agreement with Whitney, such that Whitney would solicit and place students into Plaintiffs' seminars, market Plaintiffs' seminars, and collect tuition for Plaintiffs' seminars. In exchange, laintiffs would train those students on an agreed upon, copyrighted, curriculum, said curriculum based entirely on Plaintiffs' copyrighted works.
14.

On or about August 26, 2002, Whitney presented Plaintiffs with a new contract requesting that Plaintiffs either assign their copyrights to Whitney and agree to stringent covenants not to compete upon termination of the contract, or cease conducting seminars in conjunction with Whitney.
15.

Plaintiffs rejected Whitney's offer, and, after required notice, ceased conducting seminars in conjunction with Whitney.
16.

Soon thereafter, Whitney began conducting their own foreclosure seminars using materials from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. (See Whitney infringing materials; 2002 Training Camp Curriculum attached hereto as Exhibit B and Foreclosure Advanced Training attached hereto as Exhibit C.)
17.

In early 2003, Defendant Russ Whitney authored a book entitled Millionaire Real Estate Mentor: The Secrets to Financial Freedom Through Real Estate Investing; a significant portion of which consists of information from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. (See Chapters 6 and 10 of Millionaire Real Estate Mentor: The Secrets to Financial Freedom Through Real Estate Investing, attached hereto as Exhibit D.)

Ex Registration Title of Work Author(s)
No.
A4 TXu 775-170 REHAB-101-Money saving tips to fix up and Pete Youngs
maintain property text
A5 PAu 2-300-543 Atlanta Foreclosure Bootcamp (intensified Tony Youngs
training) Seminar Presentation, Pete Youngs
derivative work of books, tapes, manuals,
and videotape training
A6 TX 5-020-748 The Win Win Approach: Buying Foreclosure Tony S.
Property Directly from the Homeowner Text Youngs
A7 PAu 2-410-165 Title Search for Investors Videotape Tony Youngs
Pete Youngs
A8 SR 258-715 The Win Win Approach: Buying Foreclosure Anthony S.
Property Directly from the Homeowner Youngs
Audio Cassettes (Tony)
A9 PA 988-133 Win Win Negotiations Videotape Tony S.
Youngs
A10 TXu 937-828 Foreclosure Bootcamp Intensified Training Tony S.
Manual Text Youngs
A11 TXu 1-046-088 Win-Win Negotiations Script Tony Stephen
Youngs

18.

Whitney's book is published by Dearborn Trade Publishing, a division of Dearborn Financial Institute, Inc.
COUNT ONE COPYRIGHT INFRINGEMENT

19.

Plaintiffs have complied in all respects with all laws governing copyright with regard to the series of educational seminars, home study video tapes, home study sound recordings and study manuals pertaining to the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. Plaintiffs have registered their claims to copyright and received registrations for the following works set forth in Exhibits A1-A11 as follows:

Ex Registration Title of Work Author(s)
No.
A1 PA 420-257 A Foreclosure Property Acquisition Tony Youngs
(on the job training) Videotape
A2 TXu 779-419 Foreclosure Boot Camp Intensified Tony S. Youngs Roy
Training Text A. Pepperdine
A3 PA 862-290 Money for Nothing Videotape Peter M. Youngs Tony
S. Youngs

True and correct copies of the above referenced Certificates of Registration and Deposit Data are attached hereto as Exhibits Al-A11.
20.

At all times herein mentioned, Plaintiffs have been and still are proprietor of all right, title, and interest in and to the United States copyrights in the works referenced above in Paragraph 19.
21.

Whitney owns and has access to each of Plaintiffs copyrighted videotapes, audio tapes, home study course and training manual. With access to the works, and knowledge that the works have been copyrighted by Plaintiffs, Whitney has been and continues to intentionally infringe on Plaintiffs' copyrights (Exhibits Al-A11) by advertising and selling educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. Said advertising and sales of materials and seminars is being conducted in this judicial district and others.
22.

Whitney has been and continues to utilize the internet to advertise and sell educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure; containing information from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure.
23.

Defendants Russ Whitney, Whitney Leadership Group, Inc., and Dearborn have been and continue to sell, in this judicial district, books containing information from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure; as referenced above in Paragraph 19.
24.

Upon information and belief, Defendants Russ Whitney, Whitney Leadership Group, Inc., and Dearborn have been and continue to sell, outside the State of Georgia, and throughout the United States, books containing information from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure; as referenced above in Paragraph 19.
25.

The activities conducted by Defendants, as referenced in Paragraphs 21 through 24 above, are without the consent or permission of Plaintiffs or any authorized agents of Plaintiffs.
26.

By reason of Defendants' aforesaid infringements of said copyrights, Plaintiffs have sustained and will continue to sustain, substantial injury, loss, and damage to their rights in the educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure.
27.

Further irreparable harm and injury to Plaintiffs is imminent as a result of Defendants' conduct.
28.

Plaintiffs are entitled to recover from Defendants the damages sustained by Plaintiffs as a result of Defendants' wrongful acts as previously alleged. Plaintiffs are presently unable to ascertain the full extent of the monetary damages they have suffered by reason of Defendants' aforesaid acts of copyright infringement.
29.

Plaintiffs are further entitled to recover from Defendants the gains, profits, and advantages Defendants have obtained as a result of their wrongful acts as previously alleged. Plaintiffs are presently unable to ascertain the full extent of the gains, profits and advantages Defendants have obtained by reason of their aforesaid acts of copyright infringement.

WHEREFORE, Plaintiffs pray for judgment that:

A. Defendants, their officers, agents, servants, employees and attorneys, and all those persons in active concert or participation with each or any of them, be temporarily restrained and enjoined preliminarily during the pendency of this action and permanently thereafter, from directly or indirectly infringing Plaintiffs' copyrights in any manner or from utilizing, reproducing, performing, causing, contributing to, or participating in the unauthorized reproduction, use or performance by sale or otherwise of Plaintiffs' copyrighted works;

B. Defendants their officers, agents, servants, employees and attorneys, and all those persons in active concert or participation with each or any of them, be enjoined during the pendency of this action from the sale, transfer, distribution, however denominated, of all infringing works which are in their possession or control, as are herein alleged to infringe Plaintiffs' copyrights, and that all such infringing works in possession or under the control of Defendants be delivered to the control of the Court for impounding during the pendency of this action or otherwise impounded as directed by this Court;

C. Whitney Defendants be required to account for and pay over to Plaintiffs all the profits which they have derived from the willful infringement of Plaintiffs' copyrights in the educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in closure; or to pay such damages to Plaintiffs as this Court shall find just and proper, multiplied pursuant to the provisions of the copyright laws, 17 U.S.C. § 504, but not less than $150,000 for each separate intentional infringement;
D. Dearborn Defendant be required to account for and pay over to Plaintiffs all the profits which it has derived from the infringement of Plaintiffs' copyrights in the educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure owned by Plaintiffs, or to pay such damages to Plaintiffs as this Court shall find just and proper, multiplied pursuant to the provisions of the copyright laws, 17 U.S.C. § 504, but not less than $30,000 for each separate infringement;

E. Defendants pay to Plaintiffs the costs and reasonable litigation expenses incurred herein, including reasonable attorneys' fees, as provided by the copyright laws, 17 U.S.C. § 505;

F. A trial by jury; and

G. For such other and further relief as is warranted and justified by the pleadings and evidence.
Appendix not available.

United States District Court, N.D. Georgia.
PETE YOUNGS and Tony Youngs, Plaintiffs,
v.
WHITNEY EDUCATION GROUP, INC., Whitney Leadership Group, Inc., Whitney
Information Network, Inc., Russ Whitney, and David Keller, Defendants.
Civil Action File No. 1-03-CV-1697-TWT.
August 12, 2003.

Plaintiffs' Amended Verified Complaint

COME NOW Plaintiffs PETE YOUNGS and TONY YOUNGS, (hereinafter, collectively, Plaintiffs), and hereby file this Plaintiffs' Amended Verified Complaint (Complaint) against Defendants WHITNEY EDUCATION GROUP, INC., WHITNEY LEADERSHIP GROUP, INC., WHITNEY INFORMATION NETWORK, INC., and RUSS WHITNEY, (hereinafter, collectively Whitney) and DAVID KELLER, (hereinafter Defendant Keller) and show the Court as follows:
Jurisdiction & Venue

1.

Plaintiffs Pete Youngs and Tony Youngs are residents of the State of Georgia, and are authorized to bring this action in this Court.
2.

Defendant Whitney Information Network, Inc., is a Colorado Corporation doing business in the State of Georgia Cobb County, and may be served with process through its counsel of record: Courtland Reichman, King & Spalding, 191 Peachtree Street, NE, Atlanta, GA 30303.
3.

Defendant Whitney Education Group, Inc., is a Florida Corporation doing business in the State of Georgia, Cobb County, and may be served with process through its counsel of record: Courtland Reichman, King & Spalding, 191 Peachtree Street, NE, Atlanta, GA 30303.
4.

Defendant Whitney Leadership Group, Inc., is a Florida Corporation doing business in the State of Georgia, Cobb County, and may be served with process through its counsel of record: Courtland Reichman, King & Spalding, 191 Peachtree Street, NE, Atlanta, GA 30303.
5.

Defendant Russ Whitney, is a resident of the State of Florida who has transacted business in the State of Georgia, Cobb County, and may be served through his counsel of record: Courtland Reichman, King & Spalding, 191 Peachtree Street, NE, Atlanta, GA 30303.
6.

Defendant David Keller, to the best of Plaintiffs' knowledge and belief, is a resident of the State of Arizona who has transacted business in the State of Georgia, and may be served with process at his place of employment: 4818 Coronado Parkway, Cape Coral, Florida, 33904.
7.

This is an action for infringement of Plaintiffs' federally registered copyrights in violation of the copyright laws of the United States, 17 U.S.C. § 101 et seq. This Court has jurisdiction over the matters complained of pursuant to 28 U.S.C. § 1338; and venue against Defendants is proper under 28 U.S.C. § 1400.
8.

Additionally, this is an action under the laws of the State of Georgia with an amount in controversy in excess of $75,000, and all Plaintiffs and all Defendants have complete diversity of citizenship from one another. This Court has jurisdiction over the matters complained of pursuant to 28 U.S.C. § 1332, and venue against Defendants is proper under 28 U.S.C. § 1391.
Statement of Facts

9.

Plaintiff are in the business of authoring, designing, manufacturing, and selling, among other goods, educational seminars, home study video tapes, home study sound recordings and study manuals that instruct customers on the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. (See Copyright Certifications attached to Plaintiffs' Verified Complaint as Exhibits Al-A11.10, said Plaintiffs' Verified Complaint is re-alleged and re-pled as if fully set forth herein.)
Over the course of approximately the last fourteen (14) years, Plaintiff Tony Youngs has authored in the United States a series of educational seminars, seminar manuals, seminar videos, home study videos, home study sound recordings, and home study manuals related to the process of finding, purchasing, and selling real estate that is in the process of foreclosure.
10.

Over the course of approximately the last six (6) years, Plaintiff Pete Youngs has authored in the United States a series of educational seminars, seminar manuals, seminar videos, home study videos, home study sound recordings, and home study manuals related to the process of rehabilitating real estate purchased as investment property during the foreclosure process.
11.

Plaintiffs sell these educational seminars, home study video tapes, home study sound recordings and study manuals that instruct customers on the Process of finding purchasing, rehabilitating and selling real estate that is in foreclosure; and sales thereof comprise one hundred percent (100%) of Plaintiffs' business in the United States.
12.

On or about March 27, 1997, The Youngs entered into an agreement with Whitney, such that Whitney would solicit and place students into Plaintiffs' seminars, market Plaintiffs' seminars, and collect tuition for Plaintiffs' seminars. In exchange, Plaintiffs would train those students on an agreed upon, copyrighted, curriculum, said curriculum based entirely on Plaintiffs' copyrighted works.
13.

On or about August 26, 2002, Whitney presented Plaintiffs with a new contract requesting that Plaintiffs either assign their copyrights to Whitney and agree to stringent covenants not to compete upon termination of the contract, or cease conducting seminars in conjunction with Whitney.
14.

Upon information and belief, Whitney recruited Defendant Keller to attend Plaintiffs seminar in the Atlanta area in an attempt to copy the materials presented by Plaintiffs therein.
15.

On March 21, 2003, Plaintiffs gave Whitney required notice, and, pursuant to the contract provision, ceased conducting seminars in conjunction with Whitney.
16.

Defendant Keller approached the Plaintiffs at the Russ Whitney Building Wealth Conference, held in Orlando, Florida, on February 13 through 15, and informed Plaintiffs that Defendant Keller had attended Plaintiffs' seminar in Atlanta in order to plagiarize Plaintiffs' materials, use Plaintiffs' materials to author a similar or identical seminar, and conduct said similar or identical seminar for himself and Whitney.
17.

Soon thereafter, Whitney began conducting their own foreclosure seminars using materials from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. (See Whitney infringing materials; 2002 Training Camp Curriculum attached to Plaintiffs' Verified Complaint as Exhibit B and Foreclosure Advanced Training attached to Plaintiffs' Verified Complaint as Exhibit C.)
18.

On June 7, 2000, Defendant Russ Whitney, by and with the other Whitney Defendants, approached Plaintiffs and asked Plaintiffs, along with other Whitney instructors, to co-author a book related to real estate investing. Plaintiffs were to produce chapters reflecting the materials taught in their seminars and be credited with authorship in an appropriate fashion
19.

In early 2003, Defendant Russ Whitney authored a book entitled Millionaire Real Estate Mentor: The Secrets to Financial Freedom Through Real Estate Investing; a significant portion of which consists of information from Plaintiffs' educational seminars, home study video tapes, home study sound recordings and study manuals regarding the process of finding, purchasing, rehabilitating and selling real estate that is in foreclosure. (See Chapters 6 and 10 of Millionaire Real Estate Mentor: The Secrets to Financial Freedom Through Real Estate Investing, attached to Plaintiffs' Verified Complaint as Exhibit D.)
20.

The book contains information from Plaintiffs' seminars beyond the scope of the information submitted for inclusion in book and does list Plaintiffs as coauthors as promised in negotiations between the parties.