JANIS L. SAMMARTINO, District Judge.
Presently before the Court are Motions to Dismiss and Motions to Strike filed by various Defendants.
Plaintiff is a professional artist who has extensive experience in, among other things, freehand airbrush, hand-drawn and digital illustration, graphic design, and photo retouching. (First Am. Compl. ("FAC") ¶ 16, ECF No. 38.) Plaintiff has produced original works of art and designs for a number of clients, including, for example, Carlos Santana, the Jimi Hendrix Estate, Tom Petty and the Heartbreakers, and Metallica. (Id. ¶ 15.) This case concerns Plaintiff's work for Defendant Carlos Santana.
After Plaintiff spent some time working at a Fullerton-based company where he created graphics for bands, celebrities, casinos, and the like, (id. ¶ 21), Santana contacted and engaged Plaintiff as an independent contractor to create the art and design for merchandizing in connection with an event, (id. ¶ 30). Santana was so impressed with his work that he invited Plaintiff to his home and said he believed Plaintiff was the artist that had the ability to "turn SANTANA into a brand." (Id. ¶ 33.) The parties entered into a business relationship where Plaintiff submitted original works to Santana and his management company for use in building the Santana brand. (Id. ¶ 176.) Plaintiff retained ownership in these works, but each submitted work contained limited copy and distribution rights. (Id.)
Plaintiff filed a 103-page, 473-paragraph FAC against dozens of Defendants associated with Defendant Carlos Santana. (ECF No. 38.) The gravamen of Plaintiff's claims is that these Defendants infringed his copyrights in several of his works by exceeding the scope of the licenses in those works. (See generally FAC.) Thus, Plaintiff brings claims for: (1) copyright infringement; (2) contributory copyright infringement; (3) vicarious copyright infringement; (4) inducing copyright infringement; (5) breach of contract; (6) intentional misrepresentation; (7) negligent misrepresentation; (8) breach of implied covenant of good faith and fair dealing; (9) unfair business practices; and (10) constructive trust. (Id.)
Federal Rule of Civil Procedure 12(b)(6) permits a party to raise by motion the defense that the complaint "fail[s] to state a claim upon which relief can be granted," generally referred to as a motion to dismiss. The Court evaluates whether a complaint states a cognizable legal theory and sufficient facts in light of Federal Rule of Civil Procedure 8(a), which requires a "short and plain statement of the claim showing that the pleader is entitled to relief." Although Rule 8 "does not require `detailed factual allegations,' . . . it [does] demand more than an unadorned, the-defendant-unlawfully-harmed-me accusation." Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). In other words, "a plaintiff's obligation to provide the `grounds' of his `entitle[ment] to relief' requires more than labels and conclusions, and a formulaic recitation of the elements of a cause of action will not do." Twombly, 550 U.S. at 555 (citing Papasan v. Allain, 478 U.S. 265, 286 (1986)). A complaint will not suffice "if it tenders `naked assertion[s]' devoid of `further factual enhancement.'" Iqbal, 556 U.S. at 677 (citing Twombly, 550 U.S. at 557).
In order to survive a motion to dismiss, "a complaint must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Id. (quoting Twombly, 550 U.S. at 570); see also Fed. R. Civ. P. 12(b)(6). A claim is facially plausible when the facts pled "allow the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Iqbal, 556 U.S. at 677 (citing Twombly, 550 U.S. at 556). That is not to say that the claim must be probable, but there must be "more than a sheer possibility that a defendant has acted unlawfully." Id. Facts "`merely consistent with' a defendant's liability" fall short of a plausible entitlement to relief. Id. (quoting Twombly, 550 U.S. at 557). Further, the Court need not accept as true "legal conclusions" contained in the complaint. Id. This review requires context-specific analysis involving the Court's "judicial experience and common sense." Id. at 678 (citation omitted). "[W]here the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged—but it has not `show[n]'—`that the pleader is entitled to relief.'" Id.
Where a complaint does not survive 12(b)(6) analysis, the Court will grant leave to amend unless it determines that no modified contention "consistent with the challenged pleading . . . [will] cure the deficiency." DeSoto v. Yellow Freight Sys., Inc., 957 F.2d 655, 658 (9th Cir. 1992) (quoting Schriber Distrib. Co. v. Serv-Well Furniture Co., 806 F.2d 1393, 1401 (9th Cir. 1986)).
Given the variety of motions considered in this order, the Court organizes its analysis by each motion.
Defendants Linton Hall and Service First Specialty Food and Marketing, LLC move to dismiss Plaintiff's cause of action against them for breach of contract. (See generally "Contract MTD," ECF No. 72-1.) Specifically, Defendants argue that Plaintiff's allegations are insufficient to state a plausible breach of contract claim. (Id.)
"[T]he elements of a cause of action for breach of contract are (1) the existence of the contract, (2) plaintiff's performance or excuse for nonperformance, (3) defendant's breach, and (4) the resulting damages to the plaintiff." Oasis W. Realty, LLC v. Goldman, 51 Cal.4th 811, 821 (2011) (citing Reichert v. Gen. Ins. Co., 68 Cal.2d 822, 830 (1968)).
The Court agrees with Defendants. Plaintiff's allegations supporting its breach of contract cause of action are the following:
(FAC ¶¶ 429-434.)
These allegations are insufficient to allow Defendants to appropriately respond. Among other things, these allegations do not provide any specifics regarding the material terms of the verbal contract between Plaintiff and Service First, much less when this contract was allegedly formed and breached. Indeed, even Plaintiff admits that his "allegations for this cause of action are minimal . . . ." ("Contract MTD Opp'n" 6, ECF No. 145.) In short, Plaintiff has failed to allege sufficient factual matter from which this Court may infer a plausible claim for the existence and breach of a contract.
To be sure, Plaintiff provides additional details about this oral agreement, including supporting exhibits, in the introduction portion of his opposition brief. (See Contract MTD Opp'n 2-3 (describing, among other things, the dates of certain agreements, the approximate hours worked in reliance on those agreements, and the alleged money owed for breaching those agreements).) Such details would likely be sufficient to state a plausible claim for the existence and breach of a contract, if they appeared in the FAC. Because they do not, however, the Court may not consider them in assessing the adequacy of Plaintiff's allegations. See Schneider v. Cal. Dep't of Corr., 151 F.3d 1194, 1197 n.1 (9th Cir. 1998) ("In determining the propriety of a Rule 12(b)(6) dismissal, a court may not look beyond the complaint to a plaintiff's moving papers, such as a memorandum in opposition to a defendant's motion to dismiss.") (emphasis in original)). Accordingly, the Court
Various Defendants
Defendants first argue that Plaintiff's copyright claims are defective because they seek damages that precluded as a matter of law. (Claims MTD 10.) Specifically, Defendants argue that Plaintiff erroneously seeks (1) punitive damages; (2) damages based on a judgment that a party "injured the business reputation and business" of a plaintiff; (3) damages for unfair trade practices; and (4) both profits
In response, Plaintiff "does not challenge the motion to the extent it seeks to dismiss Plaintiff's claim for punitive damages under the Copyright Act, attorneys' fees pursuant to Cal. Civ. Code § 3344 for claims of copyright infringement, a declaration that defendants have damaged his business reputation, or that he's entitled to damages for unfair business practices." ("Claims MTD Opp'n" 6, ECF No. 141.) Plaintiff further argues that his copyright infringement claims are otherwise adequately pled and should not be dismissed on this basis, (id.), which Defendants do not appear to contest, (see Claims MTD; "Claims MTD Reply," ECF No. 154). Given Plaintiff's concessions, the Court
As to requesting both statutory damages and profits, Plaintiff argues he "is entitled to recover profits from one defendant and statutory damages from another and his prayer for relief can be read as requesting one or the other from each Defendant." (Claims MTD Opp'n 6.) Thus, Plaintiff appears to understand that statutory damages and actual damages (including profits) are alternative damages bases under the Copyright Act. See 17 U.S.C. § 504(a) (noting that a copyright infringer is liable for
Defendants argue that Plaintiff fails to state a claim for inducing copyright infringement. (Claims MTD 11.)
Induced infringement is a species of contributory infringement since "one contributorily infringes when he (1) has knowledge of another's infringement and (2) either (a) materially contributes to or (b) induces that infringement." Perfect 10, Inc. v. Visa Int'l Serv. Ass'n ("Perfect 10 I"), 494 F.3d 788, 795 (9th Cir. 2007). "The Supreme Court has held that `one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties.'" Perfect 10, Inc. v. Giganews, Inc. ("Perfect 10 II"), 847 F.3d 657, 672 (9th Cir. 2017) (quoting Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., 545 U.S. 913, 936-37 (2005)). In the Ninth Circuit, a claim for inducement has "four elements: (1) the distribution of a device or product, (2) acts of infringement, (3) an object of promoting its use to infringe copyright, and (4) causation." Id. (quoting Columbia Pictures Indust., Inc. v. Fung, 710 F.3d 1020, 1032 (9th Cir. 2013)).
The Court agrees with Defendants. Among other things, Plaintiff's fourth cause of action for inducing copyright infringement fails to identify any service, device, or product that encourages another person to commit copyright infringement. (See FAC ¶¶ 420-28.) Moreover, Plaintiff concedes that he "will not be pursing . . . inducement claims against the defendants bringing this motion . . . ." (Claims MTD Opp'n 9.) Accordingly the Court
Defendants argue that Plaintiff's sixth through ninth claims for intentional misrepresentation, negligent misrepresentation, breach of the implied covenant of good faith and fair dealing, and unfair business practices are all preempted by the Copyright Act. (Claims MTD 11-14.) But as with his inducement cause of action, Plaintiff concedes that he "will not be pursing his state court . . . claims against defendants bringing this motion . . . ." (Claims MTD Opp'n 9.) Accordingly, the Court
Defendants also move to dismiss certain individual Defendants
Defendants argue that Plaintiff fails to state a copyright infringement claim against Casa Noble. (Indiv. Def.'s MTD 20-21.) "To establish a prima facie case of direct infringement, a plaintiff `must show ownership of the allegedly infringed material' and `demonstrate that the alleged infringers violated at least one exclusive right granted to copyright holders under 17 U.S.C. § 106.'" Perfect 10 II, 847 F.3d at 666 (quoting A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004, 1013 (9th Cir. 2001)). In this case the exclusive rights include the right of reproduction, the right to prepare derivate works, and the right of distribution. 17 U.S.C. § 106. "In addition, direct infringement requires the plaintiff to show causation (also referred to as `volitional conduct') by the defendant." Id. (quoting Fox Broad. Co., Inc. v. Dish Network L.L.C., 747 F.3d 1060, 1067 (9th Cir. 2013)).
The Court agrees with Defendants. The sole allegation against Casa Noble is that it is listed as a registrant of the domain name www.casanoble.com and that some of Plaintiff's registered works appear on that site. (FAC 35 (providing chart noting that two of Plaintiff's registered works appear on the website).) But there are no actual allegations that satisfy the causation element of direct infringement (e.g., that Casa Noble posted those works on its site, created derivative versions of the copyrighted works, or offered for sale the allegedly infringing merchandise). Merely alleging that an entity owns or operates a domain name is not enough to plausibly demonstrate that the entity caused, for example, a copy of Plaintiff's copyrighted work to appear on its site. See, e.g., Perfect 10 II, 847 F.3d at 668 ("The sole evidence Perfect 10 points to in support of its argument that Giganews was not merely a passive host shows only that images and thumbnails were accessed through the Giganews platform. The evidence does not demonstrate that Giganews—as opposed to the user who called up the images—caused the images to be displayed."); Carell v. Shubert Org., Inc., 104 F.Supp.2d 236, 271 (S.D.N.Y. 2000) (dismissing direct copyright infringement claims against certain defendants because the complaint failed to provide "any description of acts that could lead to the conclusion of direct copyright" infringement).
To be sure, Plaintiff provides additional allegations and exhibits against a group of Defendants he labels "CASA NOBLE" Defendants. (FAC ¶ 113 (labeling Casa Noble Holdings LLC and Casa Noble Holding, LLC as "CASA NOBLE").) But this group does not include Casa Noble Spirits, LLC. Indeed, as discussed, the only references to Casa Noble Spirits, LLC are in the case caption and regarding its status as a domain name registrant for www.casanoble.com. The Court will entertain a reasonable level of group pleading in assessing the adequacy Plaintiff's FAC, but a prerequisite to that, of course, is that the group actually include the moving Defendant. And here it does not. Accordingly, the Court
As above, supra Part II, various Defendants (hereinafter, the "DPC Defendants"
Defendants argue that Plaintiff fails to state a claim for direct copyright infringement against each DPC Defendant. (DPC MTD 10-12.) The Court partially agrees.
To begin, the Court finds that Plaintiff's charts showing (1) a domain name, (2) the alleged owner/operator of that domain name, and (3) the "registrations infringed" presumably on those sites are insufficient to state a claim for direct copyright infringement. Specifically, as discussed above, supra Part II, this information is insufficient to plausibly allege the causation element of direct infringement (i.e., that Defendant acted in some way to infringe Plaintiff's copyrighted works). Nor does Plaintiff identify any other material allegations in its opposition against the majority of the DPC Defendants. (See DPC MTD Opp'n 6-9 (arguing that its charts are sufficient to state a claim for direct infringement against certain Defendants).)
But Plaintiff does provide additional allegations against Defendant Dorfman-Pacific, Inc. For instance, Plaintiff alleges that Dorfman "infringed the HANDRAWN ABRAXAS ANGEL by copying and/or distributing same on hat boxes containing SANTANA's hats." (FAC ¶ 213.) Plaintiff also alleges that Dorfman "directly infringed the New Lion works by making unauthorized derivative works and/or copying and distributing the originals and/or derivatives via their online 2015-2017 eCatalogs, hard copies of same, and the hats, boxes and merchandizing and marketing materials sold through their catalogs and the above websites." (Id. ¶ 327; see also Ex. 88 (depicting relevant pages of the Dorfman eCatalogs).) This is sufficient to state a claim of direct infringement against Defendant Dorfman-Pacific, Inc. Accordingly, the Court
Defendants further argue that Plaintiff fails to state a claim for secondary copyright infringement against the DPC Defendants. (DPC MTD 13-14.) Plaintiff does not address these arguments in his opposition to Plaintiff's motion.
For the reasons stated above, the Court