Case Overview
Celsius Network was a multi-billion dollar business that, among other things, mined cryptocurrency, was a depository for cryptocurrency, and engaged in institutional lending.
Celsius and its affiliates filed for bankruptcy. A few hours prior to the bankruptcy filing, Our client, Lyndon Perry made a post on the “@lporiginalg” twitter account comparing a statement Celsius had made about customers having unlimited access to their funds with a Reuters headline about Celsius pausing all transfers and withdrawals.
Shortly thereafter Mr. Perry posted a collage about the company juxtaposing a Celsius employee, Jessica Khater, who was noted in a Forbes 30-under-30 piece about managing $300 million in bitcoin assets for Celsius, with a still from an interview with Ms. Khater, (where she was fully clothed) in a prelude to a pornographic film she appeared in, talking about studying business and marketing. Mr. Perry commented “Same company, btw.”
The alleged infringement is of a single frame of the 46 minute and 27-second long film, wherein a fully-clothed woman named Jessica is asked what she studies, and she responds “Ummm…business…marketing. I think… I really don’t know anymore, but…yeah it’s kind of where I’m going.” And, that frame is superimposed on the appearance of Jessica Khater in the Forbes 30 Under 30 for 2020, highlighting her management of a book of $300 million in bitcoin assets for Celsius Network.
Khater (effectively, but through an LLC) claims to own the copyright to the movie from which that still image was taken, and claims that the single still image is an infringement upon her copyright.
Mr. Perry should have every right to use a single still image as an illustration of his critique of Celsius and its business practices, which ultimately led to its bankruptcy.
The matter remains pending.