Sirius Technology Advanced Research v. Chicken Soup for the Soul Entertainment

Background

Sirius Technology Advanced Research, LLC and Star Unacknowledged, LLC sought proceeds from the streaming of three films: The Lost Century and How to Reclaim It (2023), Close Encounters of the Fifth Kind (2020), and Unacknowledged (2017). The plaintiffs had agreements concerning distribution of the films with TOFG, LLC, also identified as 1091 Pictures, and with Orchard Enterprises NY, Inc., 1091 Pictures’ predecessor-in-interest. The plaintiffs sued 1091 Pictures, Chicken Soup for the Soul Entertainment, Inc. (identified as 1091 Pictures’ successor-in-interest), and ten Doe defendants, seeking a share of streaming proceeds under those agreements.

Motion and governing standard

The plaintiffs moved for a preliminary injunction, which is a temporary court order intended to prevent likely serious harm before the case is resolved. They asked the court to prohibit the defendants from collecting proceeds from the films or further performing under the agreements, require notice to third-party streaming platforms that the agreements had been terminated, and clarify that the platforms should take down the films pending an agreement with a new distributor.

The court explained that a party seeking a preliminary injunction must show likely irreparable harm, either a likelihood of success on the merits or serious merits questions combined with a hardship balance strongly favoring the moving party, and that an injunction would serve the public interest. The court emphasized that likely irreparable harm is the first and most important requirement; if that showing is absent, the court need not address the other requirements.

Court’s analysis

The court found that the plaintiffs did not establish irreparable harm. The plaintiffs described the case in their filings as a straightforward contract, collection, or breach-of-contract dispute and sought money damages. Their claimed lost revenue, reduced performance and sales, and interference with promotion and marketing were therefore injuries that could be compensated with money, rather than irreparable injuries.

The plaintiffs also argued that information in The Lost Century was time-sensitive because of current events, congressional hearings, and pending public-interest legislation. The court found that the plaintiffs provided no evidence or argument beyond conclusory statements. The court said this was insufficient to show that failing to issue an injunction would actually cause irreparable harm.

In their reply brief, the plaintiffs submitted unsworn testimony from Dr. Steven M. Greer concerning public and congressional education campaigns and the UAP Disclosure Act of 2023. The court held that this argument appeared for the first time in the reply and was therefore waived. The court added that, even if it considered the testimony, it described the film as a tool that might help educate members of Congress and persuade them to enact a hypothetical new law concerning advanced energy technologies. The court characterized that possible harm from delayed streaming availability as remote and speculative, rather than actual and imminent.

Disposition

For these reasons, Judge Dale E. Ho denied the plaintiffs’ motion for a preliminary injunction. The order did not address the motion’s other preliminary-injunction requirements after finding no likely irreparable harm. The clerk was directed to close the motion at Docket No. 13.