Accessninja, Inc v. Passninja, Inc

District Court, S.D. Florida·Decided March 10, 2025·No. 1:24-cv-24745·Unknown

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA CASE NO. 24-cv-24745-ALTMAN ACCESSNINJA, INC. d/b/a ACCESSGRID,

Plaintiff,

v.

PASSNINJA, INC. and RICHARD GRUNDY,

Defendants. _____________________________/

ORDER GRANTING IN PART AND DENYING IN PART MOTION TO DISMISS The Defendants, PassNinja, Inc. and Richard Grundy, have moved to dismiss the Plaintiff’s Complaint. See Motion to Dismiss [ECF No. 13] at 6. They ask, in the alternative, for a more definite statement. Ibid. For the reasons we outline below, the Motion to Dismiss is DENIED as to Counts I and II and GRANTED as to Count III. We also DENY the Defendants’ request for a more definite statement. THE FACTS Our Plaintiff, AccessNinja, is “engaged in the business of developing and exploiting an application programming interface (‘API’) that allows for the issuance and management of Near Field Communication (‘NFC’) passes.” Complaint [ECF No. 1] ¶ 2. NFC passes are “essentially digital ‘tickets’ that can be distributed and scanned at events, attractions, and experiences.” Ibid. They can also be used “as digital ‘keys’ to open physical doors.” Ibid. Defendant PassNinja “is a competitor of [AccessNinja] in the NFC space.” Id. ¶ 3. AccessNinja’s founder and CEO, Auston Bunsen, and Defendant Grundy have known each other for “approximately fifteen years.” Id. ¶ 13. In or around January 2020, Bunsen helped Grundy develop “high level strategy” for PassNinja but was “not interested” in coding for PassNinja at the time. Id. ¶ 14. Despite Bunsen’s assistance, Grundy was not successful in building PassNinja into a “viable, operating business.” Id. ¶¶ 14–15. Bunsen, however, “remained interested in NFC technology” and began writing programming code for the technology in early 2023 (the “Copyrighted Work”). Id. ¶ 16. Nobody else “substantially contributed or assisted” Bunsen in writing the Copyrighted Work. Id. ¶ 22. While he was writing the Copyrighted Work in or around February 2023, Bunsen approached Grundy and proposed “that they

work together to build PassNinja.” Id. ¶ 17. Bunsen would contribute the Copyrighted Work he “started writing in exchange for fifty-one percent (51%) of the stock in PassNinja.” Ibid. Bunsen and Grundy recognized the need to memorialize any potential agreement with “appropriate documentation” and negotiated for months thereafter. Id. ¶ 19. While these negotiations were ongoing, Bunsen granted Grundy “limited access” to the Copyrighted Work “for the limited and exclusive purpose or writing tutorials for potential customers to learn about [NFC] technology and its commercial applications.” Id. ¶ 20. This was done “in a good faith effort to collaborate on the contemplated new venture.” Ibid. The negotiations between Bunsen and Grundy “ultimately fell apart in the summer of 2024,” and the parties “never reached or executed a final agreement regarding equity in PassNinja or its right to use [the Copyrighted Work].” Id. ¶ 23. Bunsen decided to “build his own business” using the Copyrighted Work and “incorporated [AccessNinja] for that purpose on or about August 26, 2024.”

Id. ¶ 24. As the author of the Copyrighted Work, Bunsen was the owner of all copyrights in it “until he assigned those rights to [AccessNinja] on August 27, 2024.” Id. ¶ 25. AccessNinja successfully registered the Copyrighted Work with the U.S. Copyright Office on October 30, 2024. Id. ¶ 26; see also Certificate of Registration [ECF No. 1-1] at 1-2. On September 8, 2024, AccessNinja “revoked the limited authorization Bunsen had previously granted to Grundy” to access the Copyrighted Work. Complaint ¶ 28. Despite being offered the opportunity to license the Copyrighted Work “for a monthly fee,” Grundy and PassNinja instead copied and “exploited it for their own commercial purposes.” Id. ¶¶ 28–29. The Copyrighted Work is now “the primary economic engine for PassNinja’s business.” Id. ¶ 29. Upon learning of the Defendants’ use of the Copyrighted Work, AccessNinja “issued multiple notices of infringement to PassNinja in accordance with the Digital Millennium Copyright Act (‘DMCA’).” Id. ¶ 4. But PassNinja “continues to promote” the Copyrighted Work on its website. Id. ¶ 37.

AccessNinja brought this action to “end PassNinja’s willful and unlawful infringement of [the Copyrighted Work] and recover damages for the harm caused to date.” Id. ¶ 38. Its Complaint asserts three claims against the Defendants: “Copyright Infringement under 17 U.S.C. § 101 et seq. (Against PassNinja)” (Count I); “Contributory Copyright Infringement (Against Grundy)” (Count II); and “Misappropriation of Trade Secrets under FUTSA (Against All Defendants)” (Count III). See Complaint at 7–11. In response to AccessNinja’s allegations, the Defendants have moved to dismiss the Complaint—and, assuming we give AccessNinja leave to amend, they ask us to require AccessNinja to provide a more definite statement. See Motion to Dismiss at 6.1 THE LAW To survive a motion to dismiss under Rule 12(b)(6), “a 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 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). To meet this

“plausibility standard,” a plaintiff must “plead[ ] factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 U.S. at 556). The standard “does not require ‘detailed factual allegations,’ but it demands more than

1 The Motion to Dismiss has been fully briefed and is ripe for review. See Response in Opposition to Motion to Dismiss (“Response”) [ECF No. 26]; Reply to Plaintiff’s Response in Opposition to Defendants’ Motion to Dismiss (“Reply”) [ECF No. 27]. an unadorned, the-defendant-unlawfully-harmed-me accusation.” Id. (quoting Twombly, 550 U.S. at 555). “[T]he standard ‘simply calls for enough fact to raise a reasonable expectation that discovery will reveal evidence’ of the required element.” Rivell v. Private Health Care Sys., Inc., 520 F.3d 1308, 1309–10 (11th Cir. 2008) (quoting Twombly, 550 U.S. at 545). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678. On a motion to dismiss, “the court must accept all factual

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