LYLE E. STROM, Senior District Judge.
This matter is before the Court on plaintiffs' Oriental Trading Company, Inc. and Fun Express, LLC ("plaintiffs"), three separate motions for partial summary judgment. See Filing No.
This case arises out of defendant's business activities. Defendant utilizes Amazon.com, Inc. ("Amazon") to advertise and sell various toys, party supplies, and other novelty products (Filing No.
(Id. at 1-2).
On September 15, 2015, plaintiffs filed their first motion for partial summary judgment (Filing No.
The same day, plaintiffs also filed a third motion for partial summary judgment (Filing No.
Before the plaintiffs filed their reply brief in support of the motion for partial summary judgment for Set 2, the parties entered into serious settlement negotiations and filed an unopposed motion to extend the progression order. See Filing No.
Summary judgment is only proper when the Court determines the evidence "show[s] that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a),(c); Semple v. Federal Exp. Corp., 566 F.3d 788, 791 (8th Cir. 2009) (quoting Fed. R. Civ. P. 56(c)). The evidence must be viewed in the light most favorable to the nonmoving party, giving the nonmoving party the benefit of all reasonable inferences. Kenney v. Swift Transp., Inc., 347 F.3d 1041, 1044 (8th Cir. 2003). At the summary judgment stage, it is not the function of the Court to "weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L. Ed. 2d 202 (1986).
The Court finds genuine issues of material fact exist. For reasons discussed more fully below, the Court finds that plaintiffs have failed to meet the stringent summary judgment standard as to all causes of action for both Set One and Set Two. Therefore, plaintiffs' motions for partial summary judgment as to Set One and Set Two will be denied.
The Copyright Act of 1976, as amended, 17 U.S.C. §§ 101 et seq. (the "Act"), provides copyright owners protection from infringement and relief if infringement is proved. See 17 U.S.C. §§ 101 et seq. Anyone who violates one of the exclusive rights listed in the Act is an infringer. Broadcast Music, Inc. v. Ottis, Inc., No. 8:09CV402, 2010 WL 5288106, at *3 (D. Neb. Dec. 16, 2010) (internal citations omitted). For a plaintiff to prove copyright infringement two elements must be shown: "(1) ownership of a valid copyright and (2) copying of original elements of the copyrighted work." Warner Bros. Entertainment, Inc. v. X One X Productions, 644 F.3d 584, 595 (8th Cir. 2011) (internal citation omitted); see also Taylor Corp. v. Four Seasons Greetings, LLC, 315 F.3d 1039, 1042 (8th Cir. 2003). The second element of copyright infringement may "be shown either by (1) direct evidence of copying, or (2) access to copyrighted material and substantial similarity" between the works. Warner Bros., 644 F.3d at 595 (internal citation omitted).
Plaintiffs fail to meet the summary judgment standard for direct copyright infringement. Although the first element is uncontested, the Court is unconvinced that plaintiffs have shown as a matter of law that the second element has been satisfied. The parties dispute whether Yagoozon, Amazon, or another thirdparty seller is responsible for the displaying of the copyrighted photographs. Plaintiffs allege "two of Yagoozon's decisions demonstrate" defendant's direct copyright infringement: (1) defendant's selection of the Amazon product detail pages on which to sell its products; and (2) defendant's "continued displaying [of] the product detail pages whenever it sold inventory." (Filing No.
The parties have submitted conflicting affidavits concerning how a product is listed on Amazon and how a product detail page can be edited and by whom. Compare Filing Nos. 66, 82, 108, 140 with Filing Nos. 74, 117. However, according to Amazon's own documents, in order to create a product detail page, the seller/creator must be advertising a product that is not already available on Amazon. See Filing No.
In addition, Amazon allows its product detail pages to be edited after their creation. Amazon's website indicates: "[t]he product page you see . . . may reflect details you provide as well as those of others who contribute to that product's information." (Id. at 9) (emphasis added). Amazon's representative testified in his deposition that an algorithm determines which of all the sellers of a particular product has control over the product detail page when multiple sellers request edits. See Filing No.
In addition to liability for direct copyright infringement, liability can also be found for indirect infringement. See e.g., Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., 545 U.S. 913, 929-30, 125 S.Ct. 2764, 162 L. Ed. 2d 781 (2005); Gershwin Publ'g Corp. v. Columbia Artists Mgmt., Inc., 443 F.2d 1159, 1161-62 (2d Cir. 1971). "One infringes contributorily by intentionally inducing or encouraging direct infringement." Grokster, 545 U.S. at 930 (internal citations omitted).
Plaintiffs argue "if Amazon is to blame for copyright . . . infringement, then Yagoozon is liable as a contributory infringer." (Filing No.
Trademarks are governed by the Lanham Act, 15 U.S.C. §§ 1051 et seq. and protect against "false advertising and unfair competition." United Industries, Corp. v. Clorox Co., 140 F.3d 1175, 1179 (8th Cir. 1998) (citing Two Pesos, Inc. v. Taco Cabana, Inc., 505 U.S. 763, 767-68, 112 S.Ct. 2753, 120 L. Ed. 2d 615 (1992) (quoting 15 U.S.C. § 1127)). To prove trademark infringement an owner of a trademark must "prove that [he] has ownership or rights in the trademark and that the defendant has used the mark in connection with goods or services in a manner likely to cause consumer confusion as to the source or sponsorship of the goods or services." Cmty. of Christ Copyright Corp. v. Devon Park Restoration Branch of Jesus Christ's Church, 634 F.3d 1005, 1009 (8th Cir. 2011) (emphasis added) (internal citations omitted). Courts utilize six factors to determine whether a likelihood of confusion exists. See Cmty. of Christ Copyright Corp., 634 F.3d at 1009. Those six factors are: (1) the strength of the trademark owner's mark; (2) the similarity between the trademark owner's mark and the alleged infringing mark; (3) the degree to which the allegedly infringing products compete with the trademark owner's products; (4) the alleged infringer's intent to confuse the public; (5) the degree of care reasonably expected of potential customers; and (6) evidence of actual confusion. Id. No single factor is outcome determinative and "the inquiry is inherently case-specific." Id.
It is uncontested that plaintiffs own the "Fun Express" and "Oriental Trading" marks. Both marks are federally registered (Filing No.
Even though the first element of direct trademark infringement is met as to the federally registered marks and assumed as to the "OTC" mark, the Court will deny plaintiffs' motion for partial summary judgment as to plaintiffs' direct trademark infringement claims. Defendant argues "[t]he same genuine issues of material fact [preventing summary judgment as to plaintiffs' copyright claims] preclude summary judgment on [p]laintiffs' trademark claims." (Filing No.
"Just as liability for copyright infringement can exist beyond those who actually manufacture or sell infringing materials, our law recognizes liability for conduct that assists others in direct trademark infringement." Fonovisa, Inc. v. Cherry Auction, Inc., 76 F.3d 259, 264 (9th Cir. 1996). To prove contributory trademark infringement a plaintiff must show that the defendant "(1) intentionally induce[d] another to infringe on a trademark or (2) continue[d] to supply a product knowing that the recipient [wa]s using the product to engage in trademark infringement." Fonovisa, 76 F.3d at 264 (citing Inwood Laboratories v. Ives Laboratories, 456 U.S. 844, 854-55, 102 S.Ct. 2182, 72 L. Ed. 2d 606 (1982)).
Plaintiffs contend "[t]hroughout this litigation, Yagoozon has attempted to avoid liability for trademark infringement by arguing that Amazon is responsible. . . . Yagoozon's argument fails because it
"`Trademark infringement is but a part of the broader law of unfair competition, and facts supporting a suit for infringement and one for unfair competition are substantially identical.'" WWP, Inc. v. Wounded Warriors, Inc., 566 F.Supp.2d 970, 977 (D. Neb. 2008) (quoting Heaton Distrib. Co. v. Union Tank Car Co., 387 F.2d 477, 483 (8th Cir. 1967)). "Likelihood of confusion is the hallmark of any mark infringement claim, and is necessary to prevail on claims for mark infringement under § 1114(1) and unfair competition under § 1125(a)." Kuper Industries, LLC v. Reid, 89 F.Supp.3d 1005, 1010 (D. Neb. 2015) (citing Min. Min. & Mfg. Co. v. Rauh Rubber, Inc., 130 F.3d 1305, 1308 (8th Cir. 1997); A & H Sportswear, Inc. v. Victoria's Secret Stores, Inc., 237 F.3d 198, 210 n.5 (3d Cir. 2000)).
Under the Nebraska Uniform Deceptive Trade Practices Act ("NUDTPA"), Neb. Rev. Stat. § 87-302, "a person engages in a deceptive trade practice when, in the course of business, he causes a likelihood of confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services, or causes likelihood of confusion or misunderstanding as to affiliation, connection, or association with another." Peter Kiewit Sons', Inc. v. Wall Street Equity Group, Inc., No. 8:10CV365, 2014 WL 4843674, at *8 (D. Neb. Sept. 29, 2014) (citing Neb. Rev. Stat. § 87-302; Prime Home Care, LLC v. Pathways to Compassion, LLC, 809 N.W.2d 751, 764 (Neb. 2012); Stenberg v. Consumer's Choice Foods, Inc., 755 N.W.2d 583, 591-92 (Neb. 2008); Reinbrecht v. Walgreen Co., 742 N.W.2d 243, 247 (Neb. Ct. App. 2007)). To demonstrate a violation of the NUDTPA, a plaintiff must show "that a likelihood of confusion exists. . . ." Lovely Skin, Inc. v. Ishtar Skin Care Products, LLC, 745 F.3d 877, 887 (8th Cir. 2014). This likelihood of confusion standard is the same as for claims of trademark infringement. See Lovely Skin, 745 F.3d at 887.
The Nebraska Consumer Protection Act ("NCPA"), Neb. Rev. Stat. § 59-1602 makes "[u]nfair methods of competition and unfair deceptive acts or practices in the conduct of any trade or commerce" unlawful. Neb. Rev. Stat. § 59-1602. To prove a violation of the NCPA a plaintiff must show that the defendant (1) "engaged in an act or practice that constitutes an unfair method of competition or a deceptive trade practice in the conduct of any trade or commerce"; (2) that the defendant's "conduct affected the public interest"; (3) that the plaintiff "was injured in its business or property by [the defendant's] unfair method of competition or deceptive trade practice"; and (4) that plaintiff suffered damages. WWP, Inc. v. Wounded Warriors Family Support, Inc., 628 F.3d 1032, 1042 (8th Cir. 2011) (internal quotations omitted).
Because the Court will deny plaintiffs' motions pertaining to direct and contributory trademark infringement, the Court will likewise deny plaintiffs' motion as to the unfair competition and Nebraska state law claims. The Court finds the same reasoning applicable.
Defendant's answer to plaintiffs' complaint put forth eleven affirmative defenses (Filing No.
1) Plaintiffs' partial motion for summary judgment as to Set One is denied.
2) Plaintiffs' partial motion for summary judgment as to Set Two is denied.
3) Plaintiffs' partial motion for summary judgment as to defendant's affirmative defenses is granted.
Coach, Inc. v. Sapatis, 994 F.Supp.2d 192, 202 (D.N.H. 2014) (quoting Fonovisa, 76 F.3d at 264 (citing Hard Rock Café Licensing Corp. v. Concession Servs., Inc., 955 F.2d 1143, 1149 (7th Cir. 1992))).