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Respondent provided separately the talking points to be covered in each video.
11. According to the statement of work, the videos produced by the five influencers were
Respondent’s property, “work-made-for-hire with Machinima as sole owner of all rights,
title, and interest, including any and all copyright therein, worldwide, in perpetuity.”
Pursuant to a separate promotion agreement with Respondent applicable to all of
Respondent’s campaigns, the influencers “agree[d] to keep confidential at all times in
perpetuity all matters relating to” their agreement with Respondent.
12. The five influencers were required to create and upload the videos to YouTube before the
Xbox One and Launch Titles were available to the general public. To facilitate the
creation of the videos, Microsoft provided Respondent with pre-release versions of Ryse
and the Xbox One console, and Respondent made them available to its influencers.
13. In November 2013, each of the influencers uploaded to their individual YouTube
channels the two videos ordered by Respondent. Respondent, Starcom, and Microsoft
reviewed and approved each of the videos. Respondent compensated each influencer in
accordance with the influencer’s statement of work with Respondent.
14. Neither the statements of work nor the master promotion agreement with the influencers
required the influencers to disclose in their videos that they had been compensated.
Respondent did not otherwise oblige the influencers to disclose in their videos that they
had been compensated.
15. Respondent paid influencer Adam Dahlberg $15,000 for the two video reviews that he
uploaded to his YouTube channel “SkyVSGaming.” In his videos, Dahlberg speaks
favorably of Microsoft, Xbox One, and Ryse. Dahlberg’s videos appear to be
independently produced and give the impression that they reflect his personal views.
Nowhere in the videos or in the videos’ descriptions did Dahlberg disclose that
Respondent paid him to create and upload them. Dahlberg’s first video received more
than 360,000 views, and his second video more than 250,000 views.
16. Respondent paid influencer Tom Cassell $30,000 for the two video reviews that he
uploaded to his YouTube channel “TheSyndicateProject.” In his videos, Cassell speaks
favorably of Microsoft, Xbox One, and Ryse. Cassell’s videos appear to be
independently produced and give the impression that they reflect his personal views.
Nowhere in the videos or in the videos’ descriptions did Cassell disclose that Respondent
paid him to create and upload them. Cassell’s first video received more than 730,000
views, and his second video more than 300,000 views.
PHASE TWO OF RESPONDENT’S INFLUENCER PROGRAM
17. In Phase Two of the influencer program, Respondent recruited members of its entire
network of influencers to produce and upload videos. Respondent promised to pay each
influencer $1.00 for every 1,000 views of an influencer’s video, up to an aggregate cap of