Advanta-STAR Automotive Research Corporation of America v. Search Optics, LLC

District Court, S.D. California·Decided May 9, 2023·No. 3:22-cv-01186·Unknown

Opinion

ADVANTA-STAR AUTOMOTIVE Case No.: 22-CV-1186 TWR (BLM) RESEARCH CORPORATION OF AMERICA, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ Plaintiff, MOTION TO DISMISS THE FIRST v. AMENDED COMPLAINT SEARCH OPTICS, LLC; SEARCH (ECF No. 26) OPTICS, USA, LLC; and SOUTH BAY FORD, INC., Defendants. Presently before the Court is a Motion to Dismiss the First Amended Complaint Pursuant to Federal Rule of Civil Procedure 12(b)(6) filed by Defendants Search Optics, LLC; Search Optics, USA, LLC; and South Bay Ford, Inc. (ECF No. 26, “Mot.”). The Court has also received and reviewed Plaintiff’s Opposition to (ECF No. 28, “Opp’n”) and Defendants’ Reply in Support of (ECF No. 29, “Reply”) the Motion. On April 13, 2023, the Court held a Motion Hearing and took the matter under submission. (ECF No. 32.) After carefully considering the Parties’ arguments, the relevant law, and the allegations in the First Amended Complaint (ECF No. 18, “FAC”), the Court GRANTS IN PART AND DENIES IN PART Defendants’ Motion to Dismiss. / / / I. Factual Allegations According to the First Amended Complaint,1 Plaintiff Advanta-STAR Automotive Research Corporation of America (“Advanta-STAR”) “creates, publishes, and sells detailed reviews, comparisons, and other information related to automobiles and their features.” (FAC ¶ 10.) Plaintiff owns U.S. Copyright Registrations for its “automated database titled Advanta-STAR Consumer Research . . . which is generally revised and updated at least monthly” with “new text, material, and images.” (FAC at 40–42 (“Ex. 4”).)2 Plaintiff obtained these Copyright Registrations in 2018 (TX 8-76-1015) and 2019 (TX 8-760-971). (See Ex. 4; FAC ¶ 13.) This dispute arises over three sets of automobile comparisons purportedly protected by Plaintiff’s Copyright Registrations: (1) a comparison of the 2019 Ford Transit Connect and 2019 Nissan NV200, (FAC at 15–23 (“Ex. 1”)); (2) a comparison of the 2019 GMC Terrain and the 2019 Jeep Compass, (FAC at 24–32 (“Ex. 2”)); and (3) a comparison of the 2019 Jeep Compass and 2019 GMC Terrain, (FAC at 33–39 (“Ex. 3”)), (collectively, the “Content”).3 (See FAC ¶¶ 10, 13.) “Advanta-STAR provides the Content exclusively to licensees under paid, written license agreements.” (Id. ¶ 11.) Typically, Plaintiff’s automobile comparisons are licensed by dealerships which use the information to help salespeople explain the differences between vehicles and to enhance website engagement through search engine optimization. (Id. at 12.) When displayed on Plaintiff’s and licensees’ websites, the Content bears Advanta-STAR’s notices of copyright. (See, e.g., id. ¶ 14.) / / /

1 Facts in a plaintiff’s complaint are accepted as true for the purpose of a motion to dismiss. See Cousins v. Lockyer, 568 F.3d 1063, 1067 (9th Cir. 2009). 2 To avoid ambiguity, citations to the Parties’ briefing refer to the CM/ECF pagination electronically stamped at the top of each page. 3 Exhibit 2 and Exhibit 3 are distinct in that the former emphasizes the strengths of the 2019 GMC Before the events giving rise to this action, Plaintiff had a pre-existing relationship with two of the three Defendants—Search Optics, LLC and Search Optics, USA, LLC (collectively, “Search Optics”). (See generally id. ¶¶ 15–20.) According to their Chief Administrative Officer and General Counsel, Search Optics is “a digital marketing company.” (See id. at 60–61 (“Ex. 10”).) In late 2011 or early 2012, Plaintiff “learned that Search Optics had reproduced and distributed to its customers some of Advanta- STAR’s copyrighted content” without authorization. (Id. ¶ 15.) According to Plaintiff, Search Optics admitted to these actions and then entered into licensing agreements with Plaintiff to utilize the copyrighted material legally. (See id. ¶¶ 16–18.) But in late 2013, after Search Optics’ license had expired for non-payment, Plaintiff again learned that Search Optics was reproducing and distributing Plaintiff’s copyrighted material without authorization. (See id. ¶ 19.) In response, Search Optics once more admitted to the unauthorized use of Plaintiff’s material and paid Plaintiff for such use but did not enter into a new license agreement. (See id. ¶ 20.) Then, in late 2019, Plaintiff again discovered the unauthorized use of its automobile comparisons. (See id. at 21.) Specifically, Plaintiff learned that its Content had been published on websites belonging South Bay Ford, Inc. and Essig Motors.4 (See id. ¶¶ 21, 26.) The Essig Motors website allegedly contained Plaintiff’s copyrighted comparisons of the 2019 GMC Terrain and 2019 Jeep Compass, (see id. ¶ 26), while the South Bay Ford website contained the copyrighted comparison of the 2019 Ford Transit Connect and 2019 Nissan NV200, (see id. ¶ 21). Neither company obtained a license or authorization to use the Content, (see id. ¶¶ 23, 26), and neither website included Advanta-STAR’s notices of copyright, (see generally id. at 43–45 (“Ex. 5”), 52–55 (“Ex. 8”)). Upon learning of this unauthorized use, Plaintiff sent each company a demand letter in November 2019. (See id. ¶¶ 24, 27.) / / /

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