LANCE M. AFRICK, District Judge.
Before the Court is defendant New Orleans Tourism Marketing Corporation's ("NOTMC") motion
Accepting the facts in Philpot's complaint as true, they are as follows: Philpot is a freelance photographer who specializes in taking photographs of musicians during live performances.
Philpot first displayed the Willie Nelson photograph (the "photograph") on the internet on May 31, 2011.
On an unspecified date, NOTMC posted the photograph on a website that it owns and operates.
Pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure, a district court may dismiss a complaint or part of a complaint when a plaintiff fails to set forth well-pleaded factual allegations that "raise a right to relief above the speculative level." See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007); Cuvillier v. Taylor, 503 F.3d 397, 401 (5th Cir. 2007). The complaint "must contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 547)).
A facially plausible claim is one in which "the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged." Id. If the well-pleaded factual allegations "do not permit the court to infer more than the mere possibility of misconduct," then "the complaint has alleged—but it has not `show[n]'—`that the pleader is entitled to relief.'" Id. at 679 (quoting Fed. R. Civ. P. 8(a)(2)) (alteration in original).
The Court will generally not look beyond the factual allegations in the pleadings to determine whether relief should be granted. See Hicks v. Lingle, 370 F. App'x 497, 498 (5th Cir. 2010); Baker v. Putnal, 75 F.3d 190, 196 (5th Cir. 1996). In assessing the complaint, however, a court must accept all well-pleaded facts as true and liberally construe all factual allegations in the light most favorable to the plaintiff. Spivey v. Robertson, 197 F.3d 772, 774 (5th Cir. 1999). "Dismissal is appropriate when the complaint `on its face show[s] a bar to relief.'" Cutrer v. McMillan, 308 F. App'x 819, 820 (5th Cir. 2009) (quoting Clark v. Amoco Prod. Co., 794 F.2d 967, 970 (5th Cir. 1986)).
NOTMC moves for the dismissal of Philpot's complaint, contending (1) that both of Philpot's claims are time-barred and (2) that the complaint fails to state a claim for relief for copyright infringement because Philpot does not hold a valid copyright registration for the photograph.
"A statute of limitations may support dismissal under Rule 12(b)(6) where it is evident from the plaintiff's pleadings that the action is barred and the pleadings fail to raise some basis for tolling or the like." Jones v. Alcoa, Inc., 339 F.3d 359, 366 (5th Cir. 2003). It is not evident from Philpot's complaint that his action is time-barred. To the contrary, based solely on the face of the complaint, Philpot's claims are timely.
The parties do not dispute the relevant statute of limitations. Pursuant to the Copyright Act, both of Philpot's claims are subject to a three-year statute of limitations. 17 U.S.C. § 507(b) ("No civil action shall be maintained under the provisions of this title unless it is commenced within three years after the claim accrued."). The Fifth Circuit applies the discovery rule to copyright actions; therefore, under the Copyright Act, "a . . . claim accrues `when [the party] knew or had reason to know of the injury upon which the claim was based.'" Jordan v. Sony BMG Music Entm't, 354 F. App'x 942, 945 (5th Cir. 2009) (quoting Pritchett v. Pound, 473 F.3d 217, 220 (5th Cir. 2006)); see also Groden v. Allen, 279 F. App'x 290, 294 (5th Cir. 2008).
In Petrella, the Supreme Court held that the equitable doctrine of laches ("unreasonable, prejudicial delay in commencing suit") could not bar a copyright infringement claim under the Copyright Act. Petrella, 572 U.S. at 667, 679. However, the Court explicitly passed on the question of whether the discovery rule may nevertheless be invoked in a copyright action.
Without further guidance, this Court will apply the discovery rule in accordance with Fifth Circuit precedent. See, e.g., Design Basics, LLC v. Forrester Wehrle Homes, Inc., 305 F.Supp.3d 788, 792-93 (N.D. Ohio 2018); Energy Intelligence Grp., Inc. v. CHS McPherson Refinery, Inc., 300 F.Supp.3d 1356, 1366 (D. Kan. 2018); Mitchell v. Capitol Records, LLC, 287 F.Supp.3d 673, 678 (W.D. Ky. 2017); Design Basics LLC v. J & V Roberts Invs., Inc., 140 F.Supp.3d 1266, 1282-82 (E.D. Wis. 2015). The Court also notes that, although the Fifth Circuit has not directly addressed Petrella's effect on the use of the discovery rule in copyright actions, it has discussed and applied the rule since Petrella was decided. See, e.g., Graper v. Mid-Continent Cas. Co., 756 F.3d 388, 393 & n.5 (5th Cir. 2014) (summarizing the discovery rule as the "proper inquiry" to determine when a claim has accrued under the Copyright Act); Aspen Tech., Inc. v. M3 Tech., Inc., 569 F. App'x 259, 264 (5th Cir. 2014) (explicitly noting that the discovery rule applies to copyright infringement claims).
NOTMC also argues that, even if the rule applies, Philpot has not alleged any reason why he could not have discovered the alleged infringements sooner.
Philpot alleges that he discovered the infringements on October 1, 2015. Pursuant to the Rule 12(b)(6) standard, and for the purposes of resolving the present motion, the Court accepts that fact as true. Consequently, the complaint is sufficient to survive a Rule 12(b)(6) challenge based on a statute of limitations defense. See EPCO Carbon Dioxide Prods., Inc., 467 F.3d 466, 470 (5th Cir. 2006) ("Although dismissal under [R]ule 12(b)(6) may be appropriate based on a successful affirmative defense, that defense must appear on the face of the complaint."); Federal Deposit Ins. Corp. v. Dawson, 4 F.3d 1303, 1308 (5th Cir. 1993) ("[R]aising the limitations defense in a motion to dismiss may easily be premature because facts tolling the running of the statute do not necessarily appear in the complaint.") (citation omitted).
Having concluded that Philpot's complaint is not facially barred by the statute of limitations, the Court must determine whether Philpot's copyright infringement claim must nonetheless be dismissed based on NOTMC's assertion that Philpot does not hold a valid copyright registration.
Philpot's complaint alleges that the photograph was registered as part of a collection on September 5, 2012, and he attached a copyright registration certificate with that date to his complaint.
According to NOTMC, Philpot filed his copyright registration application for a collection of unpublished works.
To state a claim for copyright infringement, a plaintiff must sufficiently allege "(1) ownership of a valid copyright, and (2) copying of constituent elements of the work that are original." Vallery v. Am. Girl, L.L.C., 697 F. App'x 821, 823 (5th Cir. 2017) (quoting Feist Publ'ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 361 (1991)). Philpot alleges in his complaint that he registered the photograph as part of the collection subject to the certificate at issue.
Accordingly,
Neither of the two attachments are referred to in Philpot's complaint. The Court declines to convert the motion to dismiss into a motion for summary judgment, and it will not consider the attachments.
NOTMC asserts that the Court may nonetheless take judicial notice of the deposition testimony. R. Doc. No. 8-1, at 6; R. Doc. No. 14, at 3. When deciding a Rule 12(b)(6) motion to dismiss, "the court may consider . . . matters of which judicial notice may be taken." Lovelace v. Software Spectrum Inc., 78 F.3d 1015, 379 (5th Cir. 1996) "The court may judicially notice a fact that is not subject to dispute because it: (1) is generally known within the trial court's territorial jurisdiction; or (2) can be accurately and readily determined from sources whose accuracy cannot reasonably be questioned." Fed. R. Evid. 201(b).
According to NOTMC, because the statements in the deposition transcript were made by Philpot, he cannot reasonably dispute them. R. Doc. No. 14, at 3. The Court rejects this argument. Although the Court could take judicial notice of the existence of the deposition testimony, courts have consistently held that statements contained in testimony from other judicial proceedings cannot simply be noticed as true. See Logan v. Bd. of Educ. of Sch. Dist. of Pittsburgh, 742 F. App'x 628, 632 (3d Cir. 2018) ("Under the Rule 12(b)(6) standard, courts also may consider deposition testimony, but only for the existence of the testimony—not for the truth of the facts asserted therein."); In re Omnicare, Inc. Secs. Litigation, 769 F.3d 455, 468 (6th Cir. 2014) ("Importantly, `a court cannot notice pleadings or testimony as true simply because these statements are filed with the court.'") (citation omitted); Liberty Mut. Ins. Co. v. Rotches Pork Packers, Inc., 969 F.2d 1384, 1388 (2d Cir. 1992) ("A court may take judicial notice of a document filed in another court `not for the truth of the matters asserted in the other litigation, but rather to establish the fact of such litigation and related filings.'") (citation omitted); see also Presby Constr., Inc. v. Clavet, No. 00-457, 2001 WL 951375, at *1 (D.N.H. Aug. 9, 2001) (denying the defendants' request to take judicial notice of the plaintiff's testimony in a previous proceeding, explaining that the "request . . . is beyond the scope of judicial notice because it seeks notice of the truth of the statements, not just the fact that the statements were made").