ITN Flix, LLC v. Univision Television Group, Inc.
ITN Flix, LLC v. Univision Television Group, Inc.
Opinion of the Court
MEMORANDUM DECISION AND ORDER DENYING MOTION TO DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT
This memorandum decision and order addresses whether a copyright infringement claim should be dismissed against media broadcasters who broadcasted a motion picture over their networks. The allegations show that the broadcasters did not create the allegedly infringing work which was broadcasted and did not broadcast the copyrighted work. The copyright infringement claim need not be dismissed. Broadcasters who distribute an infringing work may be held -liable for infringing the distribution right of the copyrighted work even if they did not participate in the creation of the infringing work.
Defendants Univision Television Group, Inc.; Univision Salt Lake-City, LLC; Uni-vision Communications, Inc.; and El Rey Network, LLC (collectively “Broadcaster Defendants”) move to dismiss the Second Amended Complaint
BACKGROUND
In October 2015, ITN and Mr. Gil Medina filed a complaint for copyright infringement against Univision Holdings, Inc.; Univision Salt Lake City, LLC; Univision Communications, Inc.; and El Rey Network, LLC (“Original Defendants” which are comprised of all the Broadcaster Defendants
Four months later, in February 2016, ITN and Mr. Medina filed an amended complaint under Rule 15(a) which also asserted a single cause of action against the Original Defendants for copyright infringement.
The order dismissing the first amended complaint held that the copyright infringement claim could not stand because there were insufficient allegations of access and insufficient allegations of similarity between Vengeance and Machete.
The order further explained that the amended complaint alleged that Vengeance was re-shot and re-edited after it was provided to Mr. Rodriguez in 2005. Thus, third party access could not be inferred because Vengeance evolved into a nonidentical work from the version provided to Rodriguez.
The first amended complaint was dismissed and leave was granted to file a second amended complaint by November 21, 2016.
On November 8, 2016, ITN filed the Second Amended Complaint currently under review. The Second Amended Complaint removes Gil Medina as a plaintiff; adds Univision Television Group, Inc. as. a defendant; and, like the original complaint and the first amended complaint, asserts a single cause of action for copyright infringement.
The Second Amended Complaint adds significant allegations that make it meaningfully different from the amended complaint that was dismissed. Among other things, the Second Amended Complaint includes over fifty alleged similarities between Vengeance — the copyrighted work— and Machete — the allegedly infringing work.
• “Rodriguez acknowledged ... that he copied, and used material from Vengeance and offered to pay ... for his use of Vengeance”15 and
• even though “minor edits” were made to Vengeance when it was re-shot and re-edited, “the material given to Rodriguez was identical to the finalized Vengeance in all material aspects.”16
The Broadcaster Defendants move to dismiss the Second Amended Complaint, arguing that the Second Amended Complaint “fails to rectify the pleading deficiencies addressed in the Court’s November 2,2016 Order ....”
MOTION TO DISMISS STANDARD
Dismissal under Rule 12(b)(6) is appropriate when the complaint, standing alone, is legally insufficient to state a claim, for which relief, may be granted.
FACTUAL ALLEGATIONS
The Second Amended Complaint makes the following factual allegations:
' In or about 2004, Mr. Gil Medina met actor Danny Trejo.
Vengeance.
“By the fall of 2005, [ITN] and Trejo had produced a rough cut of a vigilante action feature film with Trejo in the starring role. The film had the working title Jack’s Law, later changed to Vengeance ....”
“Although minor edits were later made to the script and rough-cut DVD given to Rodriguez, the material given to Rodriguez was identical to the finalized Vengeance in all material aspects, including the same plot, characters, pace, mood, dialogue, setting, and sequence of events.”
A theater-ready version of Vengeance was completed in early 2006.
Machete
In or about 2007, Mr. Rodriguez directed and produced a trailer of a film called Machete, a vigilante action hero movie featuring Mr.-Trejo as the lead actor.
Machete was released in ' theaters in 2010, earning approximately $26 million in the United States and $19 million internationally. Machete also made approximately $22 million in “home market earnings.”
In 2011, Mr. Trejo “confronted Rodriguez about Rodriguez’s copying of Vengeance in making Machete. Rodriguez acknowledged to Trejo and Medina that he copied and used material from Vengeance and offered to pay Medina for his use of Vengeance.. However, Rodriguez later refused to pay.”
Alleged Similarities Between Vengeance and Machete
The back of Machete’s DVD case describes the plot of Machete. It states:
•Set up, double-crossed and left for dead, Machete- (Trejo) is an ass-kicking ex-Federale who lays waste to • anything that gets, in his path. As he takes on hitmen, vigilantes and a ruthless drug cartel, bullets fly, .blades clash and the body count rises. Any way you slice it, vengeance has a new name — Machete.41
Both films involve Mr. Trejo acting as an ex-law-enforcement officer whose wife and daughter are murdered.
“Each movie contains a scene, similar in the time-stop - and sequence of events of the movies, where - the protagonist [Mr. Trejo’s character] is sitting alone, reminiscing of his- murdered family, having flashbacks of his family’s.murder, and vowing revenge,”
“In each movie, the protagonist is offered a large sum of money by a villain but the protagonist refuses to personally keep the money.”
“In each movie, the protagonist has an opportunity to engage in sexual conduct with a vulnerable female but he refuses to do so.”
Each movie portrays the protagonist struggling between what is legal and what is moral or just from the protagonist’s perspective. The result is that the protagonist breaks the law to bring justice.
Both films involve a well-developed law enforcement character who investigates the protagonist, and then ultimately joins forces with the protagonist in violently opposing the villains.
Both Aims portray the protagonist as religious. Both films show the protagonist visiting a priest in a church to talk about his situation and to seek help. Both films show the protagonist wearing a crucifix.
Both films portray the protagonist as generous. In Vengeance, the protagonist pays a lady for a car and gives her more money than she is asking in an effort to assist her. In Machete, the protagonist gives a large amount of cash to a character to assist poor immigrants.
Both films have a similar pace and sequence of events.
DISCUSSION
The foundational test for copyright infringement is whether the plaintiff can establish (1) ownership of a valid copyright and (2) copying of constituent elements of the work that are original.
ITN Adequately Alleges Ownership
Ownership of a valid copyright is not challenged and has been adequately alleged. ITN alleges that it owns a valid copyright on its film Vengeance, having registered it “with the applicable copyright offices” in 2005 and 2010 and receiving registration numbers 3 Pau 3-559-647 and Pau 3-527-726.
ITN Adequately Alleges Copying
“Copying is ... a shorthand reference to any infringement of the copyright holder’s exclusive rights that are set forth at 17 U.S.C. § 106.”
(1) to reproduce the copyrighted work in copies or phonorecords;
(2) to prepare derivative works based upon the copyrighted work;
(3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other- transfer of ownership, or by rental, lease, or lending;
(4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly;
(5) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and pictorial, graphic, or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; and
(6) in the case of sound recordings, to perform the copyrighted work publicly by means of a digital audio transmission.65
“Copying” may be established “either through the presentation of direct evidence, or through indirect evidence that shows (1) that the defendant had access to the copyrighted [work], and (2) that there are probative similarities between the copyrighted material and the allegedly copied material.”
The prior order dismissing the first amended complaint noted that the first amended complaint had not alleged “direct copying” and that to establish the element of copying, the first amended complaint would have to contain sufficient allegations” of “indirect copying.” The elements required to establish “indirect copying” are “[a] that the defendant had access to the copyrighted [work], and [b] that there are probative similarities between the copyrighted material and the allegedly copied material.”
The Broadcaster Defendants argue that there are no grounds to hold them liable for copyright infringement because they did not have access to Vengeance and did not participate in the creation of Ma-cheteé.
After thorough review, ITN is correct that the Second Amended Complaint sufficiently alleges a copyright infringement claim based on the “chain of distribution” theory. A distributor, publisher, or broadcasters may be liable for copyright infringement if they have disseminated a work that has copied protected elements of a plaintiffs copyright — even if the distributor, publisher, or broadcaster did not know that the work they were disseminating was an infringing work. Several eases explained below support this conclusion.
In Metal Morphosis, Inc. v. Acorn Media Publishing, Inc.,
Likewise, in Hamil America, Inc. v. GFI,
In Jacobsen v. Deseret Book Co., the Tenth Circuit reversed dismissal of a copyright infringement.suit against an allegedly infringing author and the author’s publisher.
Whether Dr. Hughes [the allegedly infringing author] and Deseret Book [the allegedly infringing author’s publisher] copied Who Refused to Die [the copyrighted work] “involves two distinct inquiries: first, whether [Dr. Hughes], as a factual matter, copied [Dr. Jacobsen’s] work, and second, whether, as a mixed issue of fact and law, those elements that were copied were protected.89
Thus, in Jacobsen, the Tenth Circuit held that a suit should not be dismissed against a publisher -if it can be shown that the author — a person other than the publisher — copied the copyrighted work. That is, the Tenth Circuit did not require that the publisher created the allegedly infringing work. The allegation that the publisher participated in the distribution of the allegedly infringing .work was enough to avoid, dismissal.
The Broadcaster Defendants “do not dispute that a copyright owner, may proceed against anyone in the chain of distribution for infringement^]” but argue that the element of access cannot be ignored.
The Tenth Circuit’s instruction in Jacobsen, quoted above, is helpful. To determine whether the alleged infringer and the alleged infringer’s publisher were liable for “copying,” the focus was placed on the party who created the allegedly infringing work — in Jacobsen, the author. The first inquiry was “whether [the alleged infringer], as a factual matter, copied [the copyright owner’s] work, and second, whether, as a mixed issue of fact and law, those elements that were copied were protected.
The second inquiry under Jacobsen has also been adequately alleged. The Second Amended Complaint identifies several ways in which Machete is alleged to have copied protected elements of Vengeance.
If any of the alleged similarities were to be viewed in isolation, copyright infringement may not be established against the Broadcaster Defendants. But “it is ordinarily important to compare the whole works,”
Considering as true the allegations in the Second Amended Complaint and viewing the factual allegations in the light most favorable to ITN, the Second Amended Complaint adequately states a claim for copyright infringement against the Broadcaster Defendants. ITN has not simply compiled a random list of similarities scattered throughout the works, but has identified specific similarities with regard to costumes, scenery, theme, mood, pace, sequence, specific lines of script, and characters.
The Broadcaster Defendants are correct that the moods of loss, darkness, pain, and revenge are not copyrightable.
Thus, even though ITN does not allege that the Broadcaster Defendants were responsible for creating the allegedly infringing work, ITN has sufficiently alleged its copyright infringement claim by alleging that someone in the chain of distribution (Mr. Rodriguez) copied the original copyrighted work (Vengeance) and that such copying involved protectable elements of the work. Because of this, the chain of distribution concept is triggered as to the Broadcaster Defendants.
“This approach may seem unfair to ‘innocent resellers.’ Nonetheless, the Copyright Act prioritizes recovery ... to protect against insolvent or unavailable reproducers over fairness to downstream distributors.”
The Second Amended Complaint Is Not Time-Barred, But ITN’s Recovery Is Subject to the Three-Year Statute of Limitations
“Each time an infringing work is reproduced or distributed, the infringer commits a new wrong. Each wrong gives rise to a discrete ‘claim’ that' ‘accrue[s]’ at the time the wrong occurs. In short, each infringing act starts a new limitations period.”
Accordingly, the Second Amended Complaint is not barred. But ITN’s recovery will be limited to acts of infringement that
CONCLUSION
There are sufficient allegations in the Second Amended Complaint to withstand the Motion under Rule 12(b)(6). ITN has adequately alleged ownership and has adequately alleged copying. There exists a set of facts that, if proven, would provide entitle ITN to relief.
ORDER
IT IS HEREBY ORDERED that the Motion
. Second Amended Complaint, docket no. 46, filed Nov. 8, 2016.
. Defendants' Motion to Dismiss Plaintiff’s Second Amended Complaint Pursuant to Fed. R. Civ. P. 12(b)(6) ("Motion”), docket no. 53, filed Dec. 6, 2016.
. Plaintiff’s Memorandum in Opposition to Defendants' Motion to Dismiss Plaintiff’s Second Amended Complaint Pursuant to Fed. R. Civ. P. 12(b)(6) ("Opposition”), docket no. 62, filed Jan. 17, 2017.
. Reply in Support of Defendants’ Motion to Dismiss Pursuant to Fed. R. Civ. P. 12(b)(6) ("Reply”), docket no. 67, filed Jan. 31, 2017.
. Defendant Univision Holdings, Inc. is not a moving party because, according to the Broadcaster Defendants, Univision Holdings, Inc. has not been served with a copy of the Second Amended Complaint. Motion at i, n. 1.
. Complaint, docket no. 2, filed Oct. 13, 2015.
. Amended Complaint, docket no. 12, filed Feb. 16, 2016.
. Id.
. Memorandum Decision and Order Granting Motion to Dismiss ("45 Order”) at 6-10, docket no. 45, filed Nov. 2, 2016.
. Id. at 5-6.
. Id. 6-7.
. Id. at 12.
. Second Amended Complaint ¶¶ 54-76.
. Id. ¶¶ 37-53.
. M. ¶ 31.
. Id. ¶ 20.
. Motion at i.
. See Sutton v. Utah State Sch. for the Deaf & Blind, 173 F.3d 1226, 1236 (10th Cir. 1999).
. See Cory v. Allstate Ins., 583 F.3d 1240, 1244 (10th Cir. 2009).
. See Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). See also Brown v. Zavaras, 63 F.3d 967, 972 (10th Cir. 1995).
. Sutton, 173 F.3d at 1236.
. The allegations provided in this section derive from the Second Amended Complaint. For purposes of this memorandum decision and order, the plaintiffs factual allegations are assumed to be true.
. Second Amended Complaint ¶ 15.
. Id. 1f 15.
. Id. ¶¶ 15, 16.
. Id. ¶ 17.
. Id. ¶ 18.
. Id.
. Id. ¶ 9.
. Id. ¶ 20.
. Id. ¶21.
. Id.
. Id. ¶ 24.
. Id. ¶¶ 25-27.
. Id. ¶ 28.
. Id. ¶ 30.
. Id.
. Id. ¶ 32.
. Id. ¶¶ 35, 36.
. Id. ¶ 31.
. Id. ¶ 38 (emphasis added by ITN).
. Id. ¶¶ 39, 40.
. Id.
. Id.
. Id. ¶ 43.
. Id.
. Id.. ¶ 44.
. Id. ¶ 45.
. Id.
. Id. ¶ 46.
. Id.
. Id. ¶ 47.
. Id. ¶ 48.
. Id.
. Id. ¶ 50.
. Id. ¶ 51.
. Id. ¶ 53.
. Id.
. Id. ¶¶ 38-53.
. Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 361, 111 S.Ct. 1282, 113 L.Ed.2d 358 (1991); La Resolana Architects, PA v. Reno, Inc., 555 F.3d 1171, 1177 (10th Cir. 2009); Palladium Music, Inc. v. EatSleepMusic, Inc., 398 F.3d 1193, 1196 (10th Cir. 2005); Jacobsen v. Deseret Book Co., 287 F.3d 936, 942 (10th Cir. 2002); Gates Rubber Co. v. Bando Chem. Indus., Ltd., 9 F.3d 823, 831 (10th Cir. 1993).
. Jacobsen, 287 F.3d at 941-42.
. Second Amended Complaint ¶¶ 25-27, 55, 56.
. Gates Rubber, 9 F.3d at 832.
. Id. at 832 n, 6 (emphasis added).
. 17 U.S.C. § 106.
. Gates Rubber, 9 F.3d at 832.
. Id. at 833.
. 45 Order at 4 (quoting Gates Rubber, 9 F.3d at 833).
. 45 Order at 6, 7.
. Opposition at. 4 n. 3.
. Id. (emphasis added).
. Id. at 6.
. Motion at 3-6; Reply at 4-6.
. See also Stabilisierungsfonds Fur Wein v. Kaiser Stuhl Wine Distributors Pty. Ltd., 647 F.2d 200, 207 (D.C. Cir. 1981) (stating that in “copyright infringement cases, any member of the distribution chain can be sued as an alleged joint tortfeasor”); Toksvig v. Bruce Pub. Co., 181 F.2d 664 (7th Cir. 1950) (affirming judgment against publisher); and MCA, Inc. v. Wilson, 425 F.Supp. 443, 456 (S.D.N.Y. 1976) (holding defendant distributor liable even though it had "no personal knowledge” of the infringement).
. Metal Morphosis, Inc. v. Acorn Media Publishing, Inc., 639 F.Supp.2d 1367 (N.D. Ga. 2009).
, Id. at 1370.
, Id. at 1372.
, Id.
, Id. (alterations omitted).
, Id.
, Id.
. Id. at 1373.
. Reply at 7 (quoting Metal Morphosis, 639 F.Supp.2d at 1374).
. Metal Morphosis, 639 F.Supp.2d at 1370 (explaining that defendant obtained the allegedly infringing item "from Brown County Silver”).
. Hamil Am. v. GFI, 193 F.3d 92 (2d Cir. 1999).
. Jacobsen, 287 F.3d at 955.
. Id. at 942.
. Id.
. Reply at 4.
. Id. at 7.
. See Leonard v. Stemtech Int’l, Inc., 834 F.3d 376 (3d Cir. 2016); Columbia Pictures Television, Inc. v. Krypton Broadcasting of Birmingham, Inc., 259 F.3d 1186, 1189-90 (9th Cir. 2001); Playboy Enters., Inc. v. Starware Pub. Corp., 900 F.Supp. 433, 438 (S.D. Fla. 1995).
. Jacobsen, 287 F.3d at 942.
. Metal Morphosis, 639 F.Supp.2d at 1372 (emphasis added).
. Second Amended Complaint ¶ 31.
. Id.n 38-53.
. Id.
. The Broadcaster Defendants invite the court to "review Vengeance and Machete” rather than the allegations in the Second Amended Complaint. Reply at 3, n.2 (quoting Jacobsen, 287 F.3d at 941-42). But Jacobsen does not state that review of the original work and the allegedly infringing work is mandatory. Instead, Jacobsen stated: “When a district court considers the original work .... ” Jacobsen, 287 F.3d at 941. Accordingly, Vengeance and Machete have not been reviewed in their entirety. Only the Second Amended Complaint, Motion, Opposition, Reply, and related exhibits have been considered.
. Madrid v. Chronicle Books, 209 F.Supp.2d 1227, 1238 (D. Wyo. 2002).
. Id.
. Kindergartners Count, Inc. v. Demoulin, 249 F.Supp.2d 1214, 1227-28 (D. Kan. 2003).
. Second Amended Complaint ¶¶ 38-53.
. Reply at 11.
. Metal Morphosis, 639 F.Supp.2d at 1373.
. Opposition at 12 (citing Shapiro, Bernstein & Co. v. H.L. Green Co., 316 F.2d 304, 308 (2d Cir. 1963)).
. Petrella v. Metro-Goldwyn-Mayer, Inc., - U.S. -, 134 S.Ct. 1962, 1969, 188 L.Ed.2d 979 (2014) (alteration in original).
. Id. at 1970.
. Reply at 12.
. Id.
. Defendants' Motion to Dismiss Plaintiffs Second Amended Complaint Pursuant to Fed. R. Civ. P. 12(b)(6) ("Motion”), docket no, 53, filed Dec. 6, 2016.
Reference
- Full Case Name
- ITN FLIX, LLC, a Utah limited liability company v. UNIVISION TELEVISION GROUP, INC., a Delaware corporation Univision Holdings, Inc., a New York corporation Univision Salt Lake City, LLC Univision Communications, Inc., a Delaware corporation and El Rey Network, LLC
- Status
- Published