Additional problem for 27 February 2006
Hanson conveys "all my interest in the Drum Dove Alfa song to Eidson, Gallardo, Fox, and Stone as tenants-in common in fee simple absolute." Stone undertakes to commercialize the song. He remixes it and adds rubab, richak and tula tracks. (A rubab is an eleven-string strummed or plucked Afghani instrument; a richak is a two-stringed bowed Afghani instrument; a tula is a fipple-mouthed Afghani whistle flute.) He spends $7,000 sending Al Tahry to Afghanistan to bring back the musical instruments, $2,500 on recording studio time for mixing, mastering, and production of CDs, and the .mp3 and streaming audio files, and $500 on the website, for total expenditures of $10,000. He puts the song up in .mp3 and streaming audio formats on a new website under the label, "Bundle of Styx." The website has e-commerce features, so that consumers can listen to the streaming audio file for 50 cents per play, or they can download the .mp3 file for $5. He also supplies CDs with the song as a single to CDBaby and amazon.com, which sell it. In the frenzy whipped up by references to a Bundle of Styx in a blog maintained by one of his classmates, the song, in these various formats, sells 5,000 copies or plays in the first week, bringing in revenue of $20,000.
Before undertaking these activities, Stone consults with Eidson, Gallardo and Fox. Fox, having been burned by an attempt to perform the song publicly, refuses to get involved in Stone's effort. Eidson militantly opposes spending the money on the trip to Afghanistan, proposing to perform another drumstick click track instead. Stone derisively excludes him from further involvement. Gallardo volunteers to play all three Afghani instruments but Stone rebuffs him, after which Gallardo sits through all the recording sessions, scowling and making sarcastic comments throughout. The classmate continues his blogging, frequently referring to Bundle of Styx. All four refuse to contribute financially to the completion of Stone's project, despite requests and demands from him.
Now, Fox, Eidson, Gallardo and the blogging classmate sue Stone for a one-fifth share each of the $20,000 revenue, or in the alternative for a one-fifth share each in the $10,000 profit. Each also claims $50,000 damages for "depletion," on the grounds that the marketing of Stone's adaptation has undercut sales potention for the original song, which they estimate could have sold 500,000 copies or plays if marketed aggressively, but now has no commercial potential at all.
Stone counterclaims for contributions to his expenditures. What result in the lawsuit?