Advanta-Star Automotive Research Corporation of America v. DealerCMO, Inc

CourtDistrict Court, E.D. Louisiana
DecidedJanuary 20, 2022
Docket2:20-cv-01150
StatusUnknown

This text of Advanta-Star Automotive Research Corporation of America v. DealerCMO, Inc (Advanta-Star Automotive Research Corporation of America v. DealerCMO, Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Advanta-Star Automotive Research Corporation of America v. DealerCMO, Inc, (E.D. La. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF LOUISIANA

ADVANTA-STAR AUTOMOTIVE CIVIL ACTION RESEARCH CORPORATION OF AMERICA

VERSUS NO. 20-1150

DEALERCMO, INC., ET AL. SECTION “R” (3)

ORDER AND REASONS

Before the Court is defendants DealerCMO, Inc. (“DealerCMO”) and Edward Dodd’s motion for summary judgment.1 Plaintiff Advanta-STAR Automotive Research Corporation of America (“Advanta-STAR”) opposes the motion.2 For the following reasons, the Court grants defendants’ motion.

I. BACKGROUND

Advanta-STAR creates vehicle comparisons that are favorable to a particular make and model by highlighting features of the car that will compare favorably to other models.3 Plaintiff provides these comparisons to paid subscribers, often car dealerships, who, in exchange for a fee, can

1 R. Doc. 70. 2 R. Doc. 81. 3 R. Doc. 81-2 ¶¶ 3, 9 (Lemmon Declaration). feature Advanta-STAR’s comparisons on their website “to increase Search Engine Optimization (‘SEO’), website traffic, and time-on-site.”4 Advanta-

STAR maintains a copyrighted database that contains hundreds of thousands of vehicle comparisons. According to plaintiff, the three specific vehicle comparisons at issue in this case are protected by U.S. Copyright, specifically registration numbers TX 8-760-971 and TX 8-761-015.5

Advanta-STAR represents that it periodically searches the internet for any possible unauthorized distribution of its copyrighted content by searching for “distinctive phrases” that are used in its database.6 It was

during one of these searches that Advanta-STAR found allegedly infringing material on the website of Hyundai of Slidell.7 Specifically, plaintiff found that its protected content had been copied verbatim on three vehicle comparisons posted on Hyundai of Slidell’s website: (1) the 2019 Hyundai

Tucson vs. the 2019 Nissan Rogue, (2) the 2019 Hyundai Sonata vs. the 2019 Toyota Camry, and (3) the 2019 Hyundai Santa Fe vs. the 2019 Kia Sorrento SUV.8 Plaintiff represents that the “text and information on the Infringing Webpages contained entire paragraphs that are identical to the copyrighted

4 Id. ¶ 7. 5 Id. ¶ 12. 6 R. Doc. 81-2 ¶ 16 (Lemmon Declaration). 7 Id. ¶ 19. 8 Id. content of Plaintiff Advanta-STAR, except that the copyright notices and all identification of Plaintiff Advanta-STAR had been removed.”9

Following this discovery, plaintiff represents that it conducted an investigation, during which it learned from Hyundai of Slidell that one of the dealer’s vendors, DealerCMO, had placed the allegedly infringing material on the website.10 It is undisputed that DealerCMO never purchased or

obtained a licensing agreement that would permit it to publish Advanta- STAR’s content online.11 Advanta-STAR subsequently sent two demand letters to DealerCMO, but asserts that it received no “substantive

response.”12 On April 9, 2020, plaintiff filed suit against DealerCMO in this Court, asserting claims of (1) copyright infringement under 17 U.S.C. § 501, and (2) removal and falsification of copyright management information under 17

U.S.C. § 1202.13 On April 26, 2021, Advanta-STAR filed an amended complaint, adding Edward Dodd as a defendant in the litigation.14 Plaintiff alleges that Dodd is the President and CEO of DealerCMO, and that he “had

9 R. Doc. 53 ¶ 16 (Amended Complaint). 10 R. Doc. 81-2 ¶ 2o (Lemmon Declaration). 11 Id. ¶¶ 27-30. 12 Id. ¶ 20. 13 R. Doc. 2. 14 R. Doc. 48-2 at 2. the ability to supervise the infringing activity by DealerCMO, had a financial interest in that activity, and/or personally participated in that activity.”15 On

November 30, 2021, defendants moved for summary judgment on both of plaintiff’s claims, and requested that the Court award defendants their attorney’s fees.16

II. LEGAL STANDARD

A. Summary Judgment

Summary judgment is warranted when “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 (1986); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994) (en banc) (per curiam). “When assessing whether a dispute to any material fact exists, [the Court] consider[s] all of the evidence in the record but refrain[s] from making credibility determinations or weighing the evidence.” Delta & Pine Land Co. v. Nationwide Agribusiness Ins., 530 F.3d 395, 398-99 (5th Cir. 2008). All reasonable inferences are

drawn in favor of the nonmoving party, but “unsupported allegations or

15 R. Doc. 53 ¶ 22 (Amended Complaint). 16 R. Doc. 70-3. affidavits setting forth ‘ultimate or conclusory facts and conclusions of law’ are insufficient to either support or defeat a motion for summary judgment.”

Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985) (quoting 10A Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2738 (2d ed. 1983)); see also Little, 37 F.3d at 1075. “No genuine dispute of fact exists if the record taken as a whole could not lead a rational trier of

fact to find for the nonmoving party.” EEOC v. Simbaki, Ltd., 767 F.3d 475, 481 (5th Cir. 2014). If the dispositive issue is one on which the moving party will bear the

burden of proof at trial, the moving party “must come forward with evidence which would ‘entitle it to a directed verdict if the evidence went uncontroverted at trial.’” Int’l Shortstop, Inc. v. Rally’s, Inc., 939 F.2d 1257, 1264-65 (5th Cir. 1991) (quoting Golden Rule Ins. v. Lease, 755 F. Supp. 948,

951 (D. Colo. 1991)). “[T]he nonmoving party can defeat the motion” by either countering with evidence sufficient to demonstrate the “existence of a genuine dispute of material fact,” or by “showing that the moving party's evidence is so sheer that it may not persuade the reasonable fact-finder to

return a verdict in favor of the moving party.” Id. at 1265. If the dispositive issue is one on which the nonmoving party will bear the burden of proof at trial, the moving party may satisfy its burden by pointing out that the evidence in the record is insufficient with respect to an essential element of the nonmoving party’s claim. See Celotex, 477 U.S. at

325. The burden then shifts to the nonmoving party, who must, by submitting or referring to evidence, set out specific facts showing that a genuine issue exists. See id. at 324. The nonmovant may not rest upon the pleadings, but must identify specific facts that establish a genuine issue for

resolution. See, e.g., id.; Little, 37 F.3d at 1075 (“Rule 56 ‘mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the

existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.’” (quoting Celotex, 477 U.S. at 322)).

B. Copyright Infringement

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