ELIZABETH A. KOVACHEVICH, District Judge.
THIS CAUSE comes before the Court upon Plaintiffs' Motion for Default Judgment (Dkt. 71, 73), to which Defendant has not responded. Upon consideration, the motion is
On January 14, 2015, Opinion Corp. and Consumer Opinion Corp. filed the instant action against Roca Labs, Inc., the latest in a string of lawsuits between the parties. (
In this action, Plaintiffs assert violations of the Digital Millennium Copyright Act and a state-law claim for abuse of process based on Roca Labs' transmission of a statutory "takedown notice," which, according to Plaintiffs, falsely charged them with copyright infringement. Plaintiffs also request a declaratory judgment that the website neither infringed Roca Labs' copyrights nor defamed Roca Labs.
Roca Labs initially appeared in this action, but has not filed an answer. Accordingly, on March 9, 2016, the Clerk entered default. (Dkt. 69). On April 8, 2016, Roca Labs' counsel withdrew, citing Roca Labs' position "that the parties no longer have an active dispute and there is no reason to expend additional resources defending this case." (Dkt. 64 at 1). Although counsel provided no further detail, the Court surmises that Roca Labs may consider this action at least partially moot, in light of the disposition of a related case pending before the Honorable Virginia Hernandez Covington (Case No. 8:14-cv-2096). In that case, the parties' positions were reversed, and Judge Covington granted Plaintiffs' motion for summary judgment on each of Roca Labs' eleven claims under Florida law, including defamation claims that overlap with the defamation issues in this case. (Case No. 8:14-cv-2096, Dkts. 114, 220, 221). The Court also notes that on September 24, 2015, the Federal Trade Commission filed an action against Roca Labs, resulting in an asset freeze and other preliminary injunctive relief. (Case No. 8:15-cv-2231, Dkt. 38 at 11; Dkt. 90).
In an effort to bring the instant action to a close, Plaintiffs filed a motion for default judgment on April 11, 2016. (Dkt. 71). Plaintiffs seek declaratory relief, nominal damages, and $85,700.15 in attorneys fees and costs, which they contend should be quadrupled as punitive damages, for a total award of $342,800.60. (Dkt. 71 at 23).
Plaintiff Opinion Corp. operates the website "pissedconsumer.com," which provides a forum for consumers to state their opinions of a product, a company, and a company's customer service. (Dkt. 1 at ¶¶ 2, 29). The website includes negative information about Roca Labs. (
Plaintiff Consumer Opinion Corp. owns the trademarks "PISSED CONSUMER" and "PISSED CONSUMER.COM." (
On October 29, 2014, Roca Labs transmitted to Opinion Corp. a "takedown notice" pursuant to the Digital Millennium Copyright Act. (
On January 13, 2015, Roca Labs' attorney sent an email to Plaintiffs requesting that they remove the following statements from the website: (1) "there have been 52 complaints [against Roca Labs], $110k in claimed losses, $2.1k average loss, and 0 resolved," (2) "Roca Labs, through its chief attorney, Paul Berger, believes it can silence you through fear and intimidation directed at Pissed Consumer," and (3) "Roca Labs first sued us." (Dkt. 1 at ¶¶ 15, 16, 19, 21; Dkt. 7-1 at 2). The email was sent pursuant to Fla. Stat. § 770.01, which requires written notice before a civil action for libel or slander may be commenced. (Dkt. 7-1 at 2). The following day, Plaintiffs filed the instant action. (Dkt. 1).
A default judgment is appropriate when a defendant "has failed to plead or otherwise defend." Fed. R. Civ. P. 55(a)-(b). A defaulting defendant admits the well-pleaded allegations in a complaint, but "is not held to admit facts that are not well-pleaded or to admit conclusions of law."
In order to survive a motion to dismiss for failure to state a claim, a complaint must include "enough facts to state a claim to relief that is plausible on its face."
The Complaint alleges violations of the Digital Millennium Copyright Act based on false statements in the takedown notice (Counts I and II), a state-law claim for abuse of process based on improper use of the takedown notice (Count III), a request for a declaratory judgment that Plaintiffs have not infringed Roca Labs' copyrights (Count IV), a request for a declaratory judgment that the statements on the website do not constitute defamation (Counts V and VI), and a request for a declaratory judgment that Roca Labs and a related company are alter egos for purposes of joint and several liability (Count VII). (Dkt. 1). Plaintiffs move for default judgment on all claims. (Dkt. 71).
The Complaint omits the requisite "short and plain statement of the grounds for the court's jurisdiction." (Dkt. 1 at ¶¶ 2-10); Fed. R. Civ. P. 8(a)(1). As a result, the Court undertakes jurisdiction solely under 28 U.S.C. § 1331, based on the federal-question claims presented in Counts I, II, and IV. For the reasons explained below, Count I, II, and IV do not currently state a plausible cause of action. Counts I, II, and IV are therefore dismissed
The Digital Millennium Copyright Act ("DMCA") provides that a service provider, such as Google, may avoid liability for storing infringing content if the service provider expeditiously removes or disables access to the content after receiving a takedown notice from the copyright holder. 17 U.S.C. § 512(c)(1)(C);
Relevant to this action, the DMCA provides that a copyright holder may be subject to liability for misuse of the takedown procedure. In particular, "[a]ny person who knowingly materially misrepresents under this section . . . that material or activity is infringing . . . shall be liable for any damages." 17 U.S.C. § 512(f). The damages are recoverable when they are "incurred by the alleged infringer . . . who is injured by such misrepresentation, as the result of the service provider relying upon such misrepresentation in removing or disabling access to the material or activity claimed to be infringing[.]"
In this case, even assuming that the Complaint plausibly alleges a knowing and material misrepresentation, the Complaint does not allege that the service provider — which is not identified in the Complaint — "remov[ed] or disabl[ed] access" to the allegedly infringing material. 17 U.S.C. § 512(f). Absent some indication that a "takedown" actually occurred, Plaintiffs fail to allege the requisite injury under Section 512(f), and thus fail to state a plausible claim under the DMCA.
The motion for default judgment is therefore denied with respect to Counts I and II. Counts I and II are dismissed,
In addition to the damages claims under the DMCA, Plaintiffs request a declaration that they have not infringed Roca Labs' copyrights. In particular, Plaintiffs seek a declaration that: (1) Opinion Corp.'s use of the name "Roca Labs" in URLs such as "roca-labs.pissedconsumer.com" does not constitute copyright infringement because there is no copyright in a name, (2) Consumer Opinion Corp. is not involved in any of the alleged infringing activity because it is not the operator of the website, and (3) the use of a thumbnail image of Roca Labs' website constitutes "fair use" under the Copyright Act. (Dkt. 1 at ¶¶ 36, 43-46, 54-55, 57, 72-75).
As to the first issue, the request for declaratory judgment is denied. Plaintiffs are correct that there is no copyright in a name. 37 C.F.R. § 202.1 ("[w]ords and short phrases such as names, title, and slogans" are not subject to copyright). But given the obviousness of this principle,
As to the second issue, Plaintiffs contend that Consumer Opinion Corp. was not involved in the allegedly infringing activity because it has no responsibility for the website. Notably, the Complaint includes no facts suggesting that Consumer Opinion Corp. and Roca Labs have the requisite "adverse legal interests."
As to the third issue, the Complaint conclusorily asserts that Opinion Corp.'s use of Roca Labs' copyrighted work was "fair use," but fails to include the requisite supporting facts. (Dkt. 1 at ¶ 36);
Additionally, and more significant, the Complaint lacks any allegation that the infringement is ongoing, sufficient to establish a "continuing controversy" that would be usefully served by the issuance of a declaratory judgment.
Based on the foregoing, Plaintiffs' motion for default judgment as to Count IV is denied. Count IV is dismissed with prejudice,
The remaining claims for abuse of process (Count III) and a declaratory judgment regarding defamation (Counts V and VI) sound in state law and do not effectively invoke this Court's federal-question jurisdiction.
Assuming,
Based on the foregoing, it is
(1) Plaintiffs' Motion for Default Judgment (Dkt. 71) is
(2) Count IV of the Complaint is