PHYLLIS J. HAMILTON, United States District Judge
Defendants' motions to dismiss the second amended complaint ("SAC") for failure to state a claim came on for hearing before this court on September 30, 2015. Plaintiff Free Kick Master LLC ("Free Kick Master") appeared by its counsel Val Schurowliew, Stanley Josselson, and Eugene Alkana; defendants Amazon.com, Inc. ("Amazon") and Google, Inc. ("Google") appeared by their counsel Michael Page; and defendant Samsung Electronics USA ("Samsung USA") appeared by its counsel John Ulin. (Defendant Apple, Inc. did not move for dismissal.) Having read the parties' papers and carefully considered their arguments and the relevant legal authority, the court hereby GRANTS the motions as follows.
Plaintiff Free Kick Master is a Nevada limited liability company, and the owner of the registered "Free Kick Master" mark. SAC ¶¶ 10-14. Plaintiff alleges that the Apple AppStore offers a "Free Kick Master" application ("app") or game for downloading to Apple devices; that the Amazon AppStore offers a "Free Kick Master" app or game for downloading to Kindle Fire devices; that Google Play offers a "Free
Plaintiff asserts that the defendants' use, sale, distribution, and/or promotion of these "Free Kick Master" apps/games is without authorization or consent from plaintiff and constitutes infringement of plaintiff's trademark; and that it also causes a likelihood of confusion, mistake, or deception in the minds of the public because its "Free Kick Master" mark is identical to the names of the apps or games marketed and/or distributed by the four defendants. SAC ¶¶ 23-25.
Plaintiff contends that it held a "Free Kick Master event" in July 2008 in Houston TX, at which various famous soccer players appeared, and which was televised internationally. SAC ¶ 26. Plaintiff asserts that it held additional events in 2010 in Las Vegas NV, and in 2012 in Buenos Aires, Argentina. SAC ¶¶ 28-29. Plaintiff alleges that the format and rules of the apps/games that are available on defendants' sites are similar to the format and rules utilized in plaintiff's "Free Kick Master" game and events, and that it has developed products based on the "Free Kick Master" events, including electronic and board games and watches.
Plaintiff filed the original complaint in this action on April 14, 2015, in the Northern District of Ohio, alleging trademark infringement under federal law, and deceptive trade practices and unfair competition under Ohio law. Plaintiff filed a first amended complaint on May 12, 2015. Defendants filed motions to transfer venue, or in the alternative, to dismiss for failure to state a claim. On July 21, 2015, the Ohio court issued an order granting the motion to transfer venue to this district. The court did not rule on the alternative motions to dismiss.
After the case was transferred, the parties stipulated to the filing of the SAC. In the SAC, plaintiff alleges six causes of action: (1) trademark infringement under the Lanham Act, 15 U.S.C. § 1114; (2) false designation of origin under the Lanham Act, 15 U.S.C. § 1125(a)); (3) injunctive relief; (4) trademark infringement under California law; (5) unfair, unlawful, and fraudulent business practices under Cal. Bus. & Prof. Code § 17200; and (6) false advertising under Cal. Bus. & Prof Code § 17500. It appears that the six causes of action are asserted against all four defendants.
A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) tests for the legal sufficiency of the claims alleged in the complaint.
To survive a motion to dismiss for failure to state a claim, a complaint generally must satisfy only the minimal notice pleading requirements of Federal Rule of Civil Procedure 8, which requires that a complaint include a "short and plain statement of the claim showing that the pleader is entitled to relief." Fed. R. Civ. P. 8(a)(2)
A complaint may be dismissed under Rule 12(b)(6) for failure to state a claim if the plaintiff fails to state a cognizable legal
The allegations in the complaint "must be enough to raise a right to relief above the speculative level[,]" and a motion to dismiss should be granted if the complaint does not proffer enough facts to state a claim for relief that is plausible on its face.
In their joint motion, Amazon and Google argue that the claims asserted against them in the SAC should be dismissed for failure to state a claim. Amazon/Google argue that the first and second (federal trademark) causes of action must be dismissed because plaintiff is instead seeking to hold Amazon/Google liable for alleged infringements by third-party app developers, but does not allege that either Amazon or Google knew of the alleged infringement.
Plaintiff asserts trademark infringement claims under 15 U.S.C. § 1114 and § 1125(a). Under 15 U.S.C. § 1114, a defendant is liable in a civil action if he/she/it, without the consent of the registrant, uses in commerce an imitation of a registered mark in connection with goods or services which is likely to cause confusion, mistake, or to deceive.
Under 15 U.S.C. § 1125(a), a defendant is liable in a civil action if he/she/it uses in commerce, in connection with goods or services, any word, term, name, symbol, or device, or any false designation of origin or false or misleading description or representation of fact, which is likely to cause confusion or mistake, or to deceive as to the affiliation, connection, or association of such person with another person, or as to the origin, sponsorship, or approval of his or her goods, services, or commercial activities by another person, or in commercial advertising or promotion, misrepresents the nature, characteristics, qualities, or geographic origin of his or her or another person's goods, services, or commercial activities.
Thus, to establish a claim of direct trademark infringement, a plaintiff must show (1) it has valid, protectable trademarks, and (2) that defendant's use of the marks in commerce is likely to cause confusion.
A manufacturer or distributor can be held liable for the infringing acts of another if it "intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement."
Amazon/Google argue that the first and second causes of action fail to state a claim for contributory infringement because plaintiff alleges no facts showing that they continued to supply their services to third-party app developers engaged in infringement after learning of that infringement. Indeed, they assert, the SAC alleges no facts showing that Amazon/Google had any notice regarding the alleged infringement prior to the filing of this lawsuit.
Amazon/Google argue in addition that the fourth, fifth, and sixth (state law) causes of action are barred by § 230 of the Communications Decency Act (`CDA`), 47 U.S.C. § 230. They contend that the allegations relating to these claims show that the claims are based on the actions of third party app developers, not any actions of Amazon or Google.
The fourth cause of action alleges trademark infringement under California law, based on the same allegations as the federal trademark claims.
The goal of the CDA is to promote the continued development of the Internet and other interactive computer services. 47 U.S.C. § 230(b)(1);
Ultimately, a defendant is entitled to § 230 protection as long as (1) it is a provider or user of an "interactive computer service," (2) the asserted claims "treat the defendant as a publisher or speaker of information," and (3) the challenged communication is "information provided by another content provider."
Amazon/Google assert that plaintiff's California law claims fall within § 230's ambit. They contend that the Amazon and Google app stores are paradigmatic interactive computer services, as they are websites from which customers can locate and download apps developed, written, and branded by third parties.
Amazon/Google argue that the SAC includes no allegations that either of them had any role whatsoever in the creation of the apps at issue, the choice of name for those apps, or any other action that would place either defendant in the role of speaker or author of the accused products.
In opposition, with regard to the motion to dismiss the federal trademark causes of action, plaintiff asserts that it "made factual allegations regarding Amazon's and Google's use of its trademark and/or placement of goods/services using its trademark on their website." Plaintiff's Opposition ("Opp.") at 7. Plaintiff claims that it "supplemented these allegations with actual exhibits taken off the internet to demonstrate why such uses by the [d]efendants were not `speculative' or theoretical, but actually existed on real webpages."
With regard to the argument that plaintiff failed to allege that Amazon or Google had any "knowledge," plaintiff asserts that defendants have "ignore[d]" the allegation that "[u]pon information and belief, [d]efendants' acts have been willful, deliberate, and intended to interfere with [p]laintiff's use of the Free Kick Master mark." Opp. at 7-8 (quoting language in SAC ¶ 36). Plaintiff contends that "it would probably be informative for all concerned for [p]laintiff to address the extent of knowledge and control [d]efendants Amazon and Google had or should have had about the character of the products (including infringements) they advertised and provided to the public." Opp. at 8.
Following this, plaintiff devotes four pages of the opposition to a discussion of certain statements that appear in documents attached to the opposition brief as Exhibits 1-5. Because these exhibits are neither referenced in nor attached to the SAC, the court cannot consider them on a Rule 12(b)(6) motion.
With regard to the argument that the state law claims are barred by application of the CDA, plaintiff asserts that a website operator can be both a "service provider" and a "content provider." In support, plaintiff cites
Opp. at 14. In short, plaintiff's position appears to be that their state law claims are not barred because defendants are not mere "service providers" and there is thus no CDA immunity available.
Plaintiff makes one further argument — that the state law claims cannot be dismissed, under the "intellectual property" exception in 47 U.S.C. § 230(e)(2). That section provides that "[n]othing in this section shall be construed to limit or expand any law pertaining to intellectual property." Plaintiff believes that because the state law claims have the same elements as the federal trademark causes of action, they are therefore "substantially congruent" to the Lanham Act claims and for that reason cannot be dismissed. Plaintiff also refers in this discussion to preemption by the Lanham Act, although that reference is unclear, as Amazon/Google have not argued preemption under any theory.
The court finds that the motion must be GRANTED. With regard to the Lanham Act claims, the SAC refers to "defendants' use of the Free Kick Master mark," SAC ¶¶ 35, 40, but alleges no facts showing that Amazon or Google in fact "used" the mark or that that "use" created a likelihood of confusion. Indeed, plaintiff has effectively conceded that it cannot state a claim of direct infringement against Amazon or Google.
The SAC does not mention contributory infringement, but that is the claim to which plaintiff appears to be directing its arguments in the opposition. As noted above, the U.S. Supreme Court has recognized contributory trademark infringement, which occurs when "a manufacturer or distributor intentionally induces another to infringe a trademark, or if it continues to supply its product to one whom it knows or has reason to know is engaging in trademark infringement."
To state a claim for contributory trademark infringement, a plaintiff must allege that a 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."
The allegation that defendants' acts have been "willful, deliberate, and intended to interfere with [p]laintiff's use of the Free Kick Master mark" is a legal conclusion that is unsupported by facts, and is not sufficient to state a plausible claim under the
Nevertheless, because this is the first time a court has ruled on the adequacy of plaintiff's claims, the court will allow leave to amend the contributory infringement claims, in accordance with the standard set forth above.
Second, the court finds that the state law claims are barred by § 230 of the CDA. Although the SAC does not allege facts showing that Amazon or Google is an "internet service provider," plaintiff does not dispute that Amazon/Google are providers of an "interactive computer service." The gravamen of the complaint, however, is that Amazon/Google were directly involved in the alleged infringement because they have content guidelines and rules, or remove some products for violations of those rules, or provide technical assistance to developers. This is insufficient to avoid § 230 immunity.
In the absence of any allegation that Amazon or Google acted as an author of the challenged content —
Plaintiff's argument about the "intellectual property" exception is also without merit. The Ninth Circuit has held that state intellectual property claims against service providers are also precluded by CDA § 230.
Samsung argues that the claims asserted against it should be dismissed for failure to state a claim. Samsung contends that the dismissal should be with prejudice because this is the third opportunity plaintiff has had to attempt to state a claim, and still is unable to do so.
Samsung asserts that the SAC does not allege facts sufficient to state a claim as to
In addition, Samsung contends that the SAC fails to allege facts showing that Samsung used the "Free Kick Master" mark in commerce or advertising. Samsung argues that the allegation that it "sells many electronic devices and products on the internet and in stores and electronic outlets;" and "advertises downloads of the `Free Kick Master' Android game" and "offers" downloads of the "Free Kick Master" application,
Samsung also asserts that allegations that it "advertises" and "offers" downloads of the "Free Kick Master" Android game cannot support liability because such allegations are contradicted by materials plaintiff has attached to the SAC. In particular, Samsung points to SAC Exhibit VIII, a partial printout from the website app4samsung.com, and asserts that plaintiff has not and cannot allege any facts showing that this website has any connection to this Samsung defendant or to any Samsung entity.
Samsung contends that taken together, the SAC and the attached exhibits show that plaintiff seeks to impose liability on Samsung notwithstanding its failure to actually allege any facts showing that Samsung used the "Free Kick Master" mark or advertised infringing games/apps, as opposed to merely selling mobile devices that certain consumers allegedly used to download infringing games or apps from third-party websites.
With regard to the state law claims, Samsung's primary argument is that the state law claims require a pleading of the same elements as the federal trademark claims, and that the state law claims should be dismissed on the same basis.
In opposition, plaintiff contends that it has discovered that app4samsung.com "is not the only provider of Samsung-compatible apps (including versions of `Free Kick Master')." Opp. at 6. Plaintiff points to several exhibits attached to its opposition brief, which appear to be printouts from third-party websites, and claims that these documents show that the third-party websites "provide and advertise `Free Kick Master' apps which are compatible with Samsung, Apple, and other devices." Opp. at 7-9. However, plaintiff does not explain in any comprehensible fashion how these documents show Samsung's use, distribution, or promotion of "Free Kick Master" apps or games. Moreover, as explained above with regard to Amazon/Google, in ruling on motion to dismiss for failure to state a claim, the court does not consider documents attached to an opposition if those documents were not previously referenced in the complaint.
The court finds that the motion must be GRANTED. As with the claims asserted against Amazon and Google, plaintiff has now conceded that it is pursuing a theory of contributory trademark infringement — not direct infringement — against Samsung. However, the SAC does not allege facts showing that Samsung intentionally induced any infringement of the "Free Kick Master" mark, or that Samsung supplied a product or service to individuals with knowledge that they were infringing plaintiff's mark. Nor does the
Samsung opposes granting leave to amend, arguing that if the complaint were amended in the manner plaintiff suggests, it would still not contain sufficient allegations showing that Samsung had the requisite knowledge of specific instances of ongoing infringement by identified individuals or that it monitored and controlled the third-party websites on which allegedly infringing games were sold. While it is true that the SAC is the third iteration of the complaint that plaintiff has filed, the present motions to dismiss present the first opportunity for a court to rule on the adequacy of the claims. Thus, while the court is not convinced that plaintiff will be able to allege facts sufficient to state a claim, it will allow plaintiff leave to file a third amended complaint to attempt to plead such a claim.
As indicated above with regard to Amazon/Google, to state a claim for contributory trademark infringement, plaintiff must allege facts showing that Samsung USA "intentionally induce[d] another to infringe on a trademark" or "continue[d] to supply a product knowing that the recipient [wa]s using the product to engage in trademark infringement."
The court also agrees that the state law claims fail to state a claim. Plaintiff's opposition does not address the state law claims. Common law and statutory trademark infringement are merely "specific aspects of unfair competition."
Thus, given that leave to amend is being granted as to the federal trademark claim for contributory infringement, the court will also permit amendment of the common law trademark infringement claim. Leave to amend is also granted as to the § 17200 claim to the extent it alleges an "unlawful" business practice or an "unfair" business practice. However, plaintiff has alleged no facts whatsoever that even hint at any fraudulent activity on the part of any defendant. Thus, the court sees no reason to permit amendment as to the "fraudulent" prong of the § 17200 claim. Finally, the § 17500 claim is not supported by sufficient facts, and leave to amend will also be granted as to that claim.
In accordance with the foregoing, the court finds that the motions must be granted. The first and second causes of action are DISMISSED with prejudice, to the extent that they allege a claim of direct infringement. The first and second causes the action are DISMISSED with leave to