Ohio State Univ. v. Redbubble, Inc.
Ohio State Univ. v. Redbubble, Inc.
Opinion of the Court
This matter is before the Court on the parties' Cross Motions of Summary Judgment. (ECF Nos. 17, 23). Plaintiff, The Ohio State University, alleges trademark infringement, unfair competition and passing off, counterfeiting, and violation of right of publicity. (ECF No. 1 ). The parties' summary judgment motions are fully briefed and ripe for review. For the reasons that follow, the Court DENIES Ohio State's Motion and GRANTS Redbubble's Cross-Motion.
I. BACKGROUND
A. Factual Background
The parties do not dispute the facts underlying this case. The Ohio State University ("OSU" or "Ohio State") holds several registered trademarks. These include: (1) "BUCKEYES," (2) "OHIO STATE," (3) "OHIO STATE UNIVERSITY," (4) URBAN MEYER, and (5) several other images. (ECF No. 1 ). A complete list of OSU's claimed trademarks can be found in paragraph 7 of the Complaint, attached to this Order. Ohio State also claims several common law trademarks. (ECF No. 1 at ¶¶ 11 - 15 ).
Redbubble, Inc. operates "a global online marketplace platform hosted at redbubble.com...." (ECF No. 23 at 2 ). Redbubble allows "independent artists" to upload and sell products on redbubble.com. Redbubble's business model relies on the automated use of third-party services: artists are automatically connected with a third-party manufacturer to make the goods, a third-party service to package and ship the goods, and a third-party to process payment for the goods. (ECF No. 23 at 3 ). When an item from redbubble.com is shipped, "the Redbubble name and logo does appear on the packaging that products are shipped in; the name on the return address label is 'An Artist at Redbubble,' and the return address itself is Redbubble's." (ECF No. 23 at 8 ). Some items are also "shipped with a 'hang tag' containing the Redbubble logo that is designed to be removed before the garment is worn." (Id. at n.5). The hang tags also include the artist's name. Many items available for purchase at redbubble.com contain designs that appear to infringe on Ohio State's trademarks.
Ohio State became aware of the allegedly infringing products on redbubble.com at *842least as early as April 12, 2017, when Ohio State's sent a letter to Redbubble's General Counsel, alleging that several products on redbubble.com infringed Ohio State's trademarks and Urban Meyer's right of publicity. (ECF No. 1 at ¶ 32 ). Ohio State's letter included a reference to the search results for the term "Buckeyes." Redbubble sent an email response on April 20, 2017, three days after the date Ohio State had requested for a response. (ECF No. 23 at 16 ). Redbubble asked Ohio State to "identify the designs it believed were infringing by providing the URLs" and that once Ohio State did so, Redbubble would remove the listings. (ECF No. 23 at 16-17 ).
On April 25, 2017, Ohio State sent another letter to Redbubble. In its April 25 letter, OSU stated that it was not going to specifically identify counterfeit or infringing products because to do so "would be a full time job" and because it was "not Ohio State's responsibility to police your website to identify and request removal of counterfeits." (ECF No. 24-7 at 2-3 ). Redbubble responded on April 26 with a different solution: Redbubble would "remove all of the designs on the search results pages, except for those that [OSU] [did not] consider infringing." (ECF No. 24-8 at 2 ).
Ohio State did not respond to Redbubble's last correspondence. Instead, on December 14, 2017, Ohio State sued Redbubble. Redbubble alleges that after the suit was filed, it took every effort to remove the products that Ohio State would consider infringing and even provided Ohio State with a spreadsheet of the possibly-infringing products and their sales numbers. (ECF No. 23 at 18 ).
B. Procedural Background
Ohio State sued Redbubble on December 14, 2017. (ECF No. 1 ). Ohio State alleged violations of the Lanham Act,
II. STANDARD OF REVIEW
A motion for summary judgment is governed by the requirements of Federal Rule of Civil Procedure 56. Summary judgment is appropriate "if the movant shows that there is no genuine issue as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56. A fact is material only if it "might affect the outcome of the lawsuit under the governing substantive law." Wiley v. United States ,
The party seeking summary judgment bears the initial burden of presenting law and argument in support of its motion as well as identifying the relevant portions of " 'the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,' which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett ,
*843Moore v. Philip Morris Cos., Inc. ,
Summary judgment is inappropriate, however, "if the dispute about a material fact is 'genuine,' that is, if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Anderson , 477 U.S. at 248,
III. LAW & ANALYSIS
A. Liability Under the Lanham Act
Ohio State has brought claims under the Lanham Act for trademark counterfeiting, infringement, and passing off and unfair competition. Ohio State has also brought a claim for violation of the right of publicity under Ohio Rev. Code § 2741. An action for trademark infringement under the Lanham Act,
prove that (1) it owns a valid trademark; (2) Defendants used the trademark 'in commerce' and without Plaintiff's authorization; (3) Defendants used the trademark (or an imitation of it) 'in connection with the sale, offering for sale, distribution, or advertising' of goods or services; and (4) Defendants' use of the trademark is likely to confuse consumers.
Ohio State University v. Skreened Ltd. ,
Redbubble cannot be liable for counterfeiting without first being liable for trademark infringement because "[c]ounterfeiting is a subset of trademark infringement." 2-5 Gilson on Trademarks § 5.19 (2008). See also Skreened Ltd. ,
The precise contours of what constitutes "use in commerce" have not been defined, but it is well-established that selling *844an item constitutes "use." See Lorillard Tobacco Co. v. Amouri's Grand Foods, Inc. ,
Few cases have addressed the liability of companies like Redbubble who conduct their business dealings online. Redbubble has relied significantly on Tiffany (NJ) Inc. v. eBay, Inc. ,
The Sixth Circuit has addressed liability for direct trademark infringement for "companies that operate as Internet domain-name registrars or that provide an Internet auction site for registered domain names...if a third party registers and seeks to sell a domain name that allegedly violates the rights of a trademark owner." Bird v. Parsons ,
A better analogy to Redbubble is Amazon, which deals in physical products. Amazon has generally not been found liable for direct trademark or copyright infringement because it merely facilitates sales between other parties. See, e.g. , Milo & Gabby LLC v. Amazon.com, Inc. ,
In contrast to Amazon's non-use of marks, companies such as CafePress.com, Inc. have been held liable for direct infringement. In Born to Rock Design Inc. v. CafePress.com, Inc. , the Southern District of New York allowed a claim for direct infringement to survive summary judgment. CafePress.com allowed users to upload their designs to CafePress.com. Customers could then choose one of these designs, select an item to have the design printed on (such as a shirt or mug), and then "CafePress [would print] the design on the selected merchandise and ship[ ] it to the customer. CafePress collect[ed] the payment, a portion of which [was] remitted to the CafePress.com user who created and uploaded the design." Born to Rock Design Inc. v. CafePress.com, Inc. , No. 10 Civ. 8588(CM),
SunFrog, of course, not only advertises and offers infringing designs for sale and prints them onto products, it also ships the finished products and handles payment processing. Unlike the showroom [in GMA Accessories ], SunFrog exerts control over nearly every aspect of the advertising, sale, and manufacture of the infringing goods, save designing the mockups. By any measure, then, SunFrog uses the H - D Marks.
H-D U.S.A., LLC ,
Redbubble contends that it does not use Ohio State's trademarks in commerce because it is not the "seller" of the goods. Rather, the independent artists design the items that are listed on the website. Once a customer places an order, the third-party manufacturer produces the product, and a third-party ships the finished item to the buyer. (Decl. of Anuj Luthra, ECF No. 26 ). In this way, Redbubble operates like Amazon, hosting a website where sellers can list goods for sale, and arranging for the shipment of goods for the seller. Ohio State, however, argues that Redbubble cannot merely subcontract its way out of compliance with the Lanham Act. Redbubble makes all of the arrangements for the artist to produce, ship, and sell the potentially infringing products. Additionally, "[t]he products are delivered in Redbubble packaging, with a Redbubble invoice, with Redbubble stickers and care instructions, and a Redbubble tag attached to the product." (ECF No. 39 at 11 ).
Redbubble is not liable for direct infringement on these facts. The caselaw sets up a spectrum against which to measure *846Redbubble's conduct. At one end are companies that function like auction houses and are not liable for direct infringement. At the other end are companies like CafePress and SunFrog that themselves manufacture and ship infringing products to the customer. Redbubble does not fit neatly into either of these categories. But Redbubble's actions put it closer to the auction house side of the spectrum than to CafePress. Redbubble essentially offers to "independent artists" an online platform through which to sell their goods and access to Redbubble's relationships with manufacturers and shippers. Redbubble is not directly producing the goods nor, like SunFrog, is Redbubble maintaining a design database and then placing the designs onto goods that customers order.
The cases on which Ohio State relies are inapposite. Ohio State argues that Johnson & Johnson and Lifescan, Inc. v. South Pointe Wholesale, Inc. stands for the proposition that intermediaries can be liable for direct infringement "where (i) the intermediary...was communicating with the consumer, (ii) customers of the defendant believed they were doing business with the intermediary, and (iii) invoices for the infringing goods were paid to the intermediary instead of to the real supplier of the goods." (ECF No. 39 at 10 ) (citing Johnson & Johnson and Lifescan, Inc. v. South Pointe Wholesale, Inc. , 08-CV-1297 (SLT) (SMG),
Ohio State cites to Nike, Inc. v. Eastern Ports Custom Brokers, Inc. , for the proposition that intermediaries that are as involved as Redbubble have been held liable for infringement and counterfeiting. Nike, Inc. v. Eastern Ports Custom Brokers, Inc. , No.: 2:11-cv-4390-CCC-MF,
Ohio State takes the language from Lorillard Tobacco Co. v. Amouri's Grand Foods, Inc. out of context. Ohio State relies on Lorillard Tobacco Co. to argue that "Redbubble's argument that it has hired third-party contractors and therefore does not produce, package, ship, or distribute the infringing products has already been found unpersuasive by the Sixth Circuit." (ECF No. 39 at 5 ). Not so. While Lorillard Tobacco Co. does say "[w]e also find...no reason to restrict liability to those who actually create, manufacture or package the infringing items," Lorillard Tobacco Co. ,
Lastly, Ohio State relies on Skreened Ltd. as evidence of this Court's previous rejection of defenses similar to Redbubble's. (ECF No. 17 at 2 ). But Judge Frost in Skreened Ltd. specifically noted that "[s]ubject to a few exceptions...Defendants do not dispute...whether Defendants used the trademark...." Skreened Ltd. ,
Ohio State has made some conclusory references to Redbubble's advertising of the allegedly infringing products. Ohio State has argued in its Response to Redbubble's Cross-Motion for Summary Judgment that Redbubble "advertis[es] the counterfeit goods on its site," (ECF No. 39 at 10 ), and "advertises the infringing goods for sale," (ECF No. 39 at 11 ). These allegations are too conclusory to form a basis for direct trademark infringement or counterfeit liability. Ohio State also argues that "[t]he fact that OSU's trademarks are displayed on Redbubble's website with products offered for sale" also constitutes use. (ECF No. 39 at 5 ). Ohio State points to
Therefore, Redbubble is not liable for direct trademark infringement. Because liability for counterfeiting first requires a finding of liability for trademark infringement, Redbubble cannot be liable for counterfeiting. And since Ohio State has based its unfair competition and passing off claim on Redbubble's alleged use of the Ohio State and Meyer trademarks, Redbubble is not liable for unfair competition and passing off.
B. Right of Publicity Claim under State Law
Ohio State has also claimed a violation of their Right of Publicity in the Urban Meyer persona under Ohio Revised Code § 2741. To state a claim for a violation of the right of publicity under Ohio law, the defendant must have used an "aspect of an individual's persona for a commercial purpose." ORC § 2741.02. Commercial purpose is defined as follows:
(B) "Commercial purpose" means the use of or reference to an aspect of an individual's persona in any of the following manners:
(1) On or in connection with a place, product, merchandise, goods, services, or other commercial activities not expressly exempted under this chapter;
(2) For advertising or soliciting the purchase of products, merchandise, goods, services, or other commercial activities not expressly exempted under this chapter;
(3) For the purpose of promoting travel to a place;
*848(4) For the purpose of fundraising. Ohio Rev. Code § 2741.01.
Ohio State has argued that Redbubble meets the "use" requirement under state law for the same reasons Redbubble meets the "use" requirement under federal law. Redbubble argues that the statutory right of publicity requires a more intentional "use" than federal law. Redbubble argues that "a defendant must take affirmative steps to...exploit the persona in question and cannot be held liable for a right of publicity claim based on content uploaded by a third party." (ECF No. 45 at 22 ). This Court need not decide whether Ohio's statutory right of publicity requires such exploitative use, because Redbubble has not "used" Ohio State's marks under the more lenient federal definition.
IV. CONCLUSION
For the foregoing reasons, Ohio State's Motion for Summary Judgment (ECF No. 17 ) is hereby DENIED. Redbubble's Cross-Motion for Summary Judgment (ECF No. 23 ) is GRANTED. This case is CLOSED.
IT IS SO ORDERED.
Reference
- Full Case Name
- The OHIO STATE UNIVERSITY v. REDBUBBLE, INC.
- Status
- Published