Adobe Systems, Inc. v. South Sun Products, Inc.

187 F.R.D. 636, 1999 U.S. Dist. LEXIS 11034, 1999 WL 518904
CourtDistrict Court, S.D. California
DecidedJuly 20, 1999
DocketNo. 99-CV-1407 TW JAH
StatusPublished
Cited by25 cases

This text of 187 F.R.D. 636 (Adobe Systems, Inc. v. South Sun Products, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Adobe Systems, Inc. v. South Sun Products, Inc., 187 F.R.D. 636, 1999 U.S. Dist. LEXIS 11034, 1999 WL 518904 (S.D. Cal. 1999).

Opinion

AMENDED ORDER DENYING PLAINTIFFS’ EX PARTE APPLICATION FOR A TEMPORARY RESTRAINING ORDER

WHELAN, District Judge.

I. Introduction

Plaintiffs, makers of various popular computer software titles, commenced this action for copyright infringement under Section 106 of the Copyright Act of 1976, 17 U.S.C. §§ 106, 501(b). Plaintiffs accuse a local business, Defendant South Sun Products, Inc., of making and using unauthorized copies of Plaintiffs’ software products, a practice commonly known as “software piracy.”

Plaintiffs filed an emergency ex parte application for a temporary restraining order pursuant to Rule 65(b) of the Federal Rules of Civil Procedure. To date, Defendant has not been served with a summons and complaint and has no notice of this action or the instant application.

This court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1338(a). For the reasons expressed below, Plaintiffs’ ex parte application for a temporary restraining order is DENIED in its entirety.

II. Background

Plaintiffs Adobe Systems Inc. (“Adobe”), Lotus Development Corporation (“Lotus”), Microsoft Corporation (“Microsoft”), and Symantec Corporation (“Symantec”) are companies engaged in the business of developing and marketing computer software. (See Compl. ¶¶ 10, 17, 24, 30). They hold registered copyrights over numerous popular computer software titles, including Adobe Premiere, Adobe PhotoShop, Lotus 1-2-3, Microsoft Windows, Microsoft Office, Symantec Norton Utilities, and Symantec PCAnywhere. (See Decl. of Robert M. Kruger (“Kruger Decl.”) ¶ 6). Plaintiffs package and distribute these products with user manuals, end-user license agreements, and other documentation. (Compl. ¶¶ 12, 18, 25, 31).

Defendant South Sun Products, Inc. (hereinafter “South Sun” or “Defendant”) distributes and wholesales jewelry. (See Decl. of David Haynes (“Haynes Decl.”) ¶ 4). The company operates a 10-person showroom in New York City and is headquartered in San Diego, California. (Id.). At its two locations, South Sun collectively employs 40 persons and operates between 20 and 30 personal computers (“PCs”). (Id.; Compl. 1138).

According to Plaintiffs, South Sun and its employees infringed Plaintiffs’ copyrights by purchasing single copies of certain software packages and installing them on several, and in some cases all, of South Sun’s PCs. (See Haynes Decl. ¶¶ 7, 8, 9; Compl. Hit 38, 40). In addition, South Sun allegedly obtained “cracked” versions of Plaintiffs’ software (versions that have been illegally modified to facilitate unauthorized use) and used them on two occasions to install software on a number of its PCs. (Haynes Decl. ¶¶ 11, 12). Plaintiffs obtained evidence of South Sun’s alleged software piracy from Mr. David Haynes, a former employee who was terminated by South Sun in March 1999 due to personality conflicts with other company personnel. (Id. U 5). During his employment with South Sun, Mr. Haynes worked as the company’s computer network administrator. (Id.).

On July 8, 1999, Plaintiffs commenced this action, asserting that South Sun’s activities constitute copyright infringement in violation of Section 106 of the Copyright Act of 1976. See 17 U.S.C. §§ 106, 501(b). The complaint asserts a single claim for copyright infringement and seeks injunctive relief, damages, attorney’s fees, and costs. (Compl. ¶¶ 44-56). Plaintiffs have not served the Defendant.

With their complaint, Plaintiffs included an application for an emergency temporary restraining order. The application urges the [638]*638court to order South Sun’s business premises searched for evidence of copyright infringement. Plaintiffs’ reasons for seeking this relief without notice to the Defendant are as follows:

It is critical that this relief be granted without notice to the Defendant. Because the evidence of Defendant’s infringements is located on its computers, Defendant can easily and quickly destroy the evidence with a few keystrokes or a few clicks of a mouse... Indeed, past experience shows that there is a substantial risk that, when notified in advance of proceedings to restrain infringement and seize unauthorized copies of computer software, a defendant will attempt to erase, destroy, remove, or hide infringing materials before they can be seized or impounded... If Defendant deletes or otherwise disposes of its illegal copies of Plaintiffs’ software prior to seizure and impoundment, Plaintiffs’ efforts to obtain redress will be severely if not totally frustrated.

(See Pis.’ Mem. P. & A. Supp. T.R.O. at 3:6-14). In other words, if South Sun receives notice of this action, it could easily destroy evidence proving that it copied Plaintiffs’ software, making it difficult for Plaintiffs to establish copyright infringement.

To prevent this anticipated destruction and concealment of evidence, Plaintiffs’ application seeks extraordinary judicial relief. First, Plaintiffs seek an order directing the United States Marshal to enter Defendant’s business premises to search for and to seize any infringing copies of Plaintiffs’ software.1 Second, Plaintiffs seek authorization to manually search the contents of Defendant’s PCs and to conduct an “audit” of those PCs to detect unauthorized copies of Plaintiffs’ products. The audit would scan the hard disk drives of South Sun’s PCs and record the name, size, date, and time of every file, including files contained within compressed archives. (See Decl. of Herbert M. Gottlieb (“Gottlieb Deck”) ¶¶ 6-9). The audit program would then store this information onto a floppy disk. (Id. ¶ 8(i)). Third, Plaintiffs request expedited discovery and an order authorizing them to conduct depositions of South Sun’s employees within two business days. Finally, Plaintiffs seek leave to file the complaint, the restraining order application, and all accompanying documents under seal.

III. Discussion

Plaintiffs vigorously argue that they have established a likelihood of success on the merits of their copyright infringement claim and are entitled to a presumption of irreparable injury. See Johnson Controls, Inc. v. Phoenix Control Systems, Inc., 886 F.2d 1173, 1174 (9th Cir.1989) (citing Apple Computer, Inc. v. Formula Int’l Inc., 725 F.2d 521, 525 (9th Cir.1984)) (for purposes of temporary injunctive relief, irreparable injury is presumed when the plaintiff demonstrates likelihood of success on a claim for copyright infringement).

However, the court cannot reach this argument until it addresses the threshold question that arises anytime a party seeks a restraining order ex parte: have Plaintiffs presented an adequate justification for failing to give notice to the Defendant?

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187 F.R.D. 636, 1999 U.S. Dist. LEXIS 11034, 1999 WL 518904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adobe-systems-inc-v-south-sun-products-inc-casd-1999.