Al-Bustani v. Alger

District Court, W.D. Washington·Decided April 27, 2023·No. 3:22-cv-05238·Unknown

Opinion

1 2

3 4 5 6 7 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 8 AT SEATTLE

9 10 AL-HARETH AL-BUSTANI, CASE NO. C22-5238JLR 11 Plaintiff, ORDER v. 12 SEAN B. ALGER, et al., 13 Defendants. 14 I. INTRODUCTION 15 Before the court is Defendant Gen Media Partners LLC’s (“Gen Media”) motion 16 to dismiss Plaintiff Al-Hareth Al-Bustani’s second amended complaint. (MTD (Dkt. 17 # 97); Am. Reply (Dkt. # 102).) Mr. Al-Bustani opposes the motion. (Resp (Dkt. 18 # 100).) The court has reviewed the parties’ submissions, the relevant portions of the 19 20 21 22 1 record, and applicable law. Being fully advised,1 the court GRANTS Gen Media’s 2 motion.

3 II. BACKGROUND 4 Mr. Al-Bustani’s claims against Gen Media arise from its relationship with 5 Defendant Louis Clyde Holder,2 whom Mr. Al-Bustani accuses of direct copyright 6 infringement. (See 2d Am. Compl. (Dkt. # 94) ¶¶ 34-37, 62-71.3) Mr. Holder hosts a 7 nationally syndicated radio program, Ground Zero (the “Ground Zero Show”). (Id. ¶ 34.) 8 Mr. Al-Bustani’s late wife, Tracy Twyman, an author and media personality, was a

9 frequent guest on the Ground Zero Show. (Id. ¶¶ 24-25.) In addition to hosting the 10 Ground Zero Show, Mr. Holder maintains a page on the website Aftermath Media (the 11 “Website”). (Id. ¶¶ 38, 42-43.) According to Mr. Al-Bustani, the Website “bills itself as 12 ‘the Official Digital Playground for Ground Zero with Clyde Lewis’ and a paid 13 membership is required in order to access the content.” (Id. ¶ 38.) Mr. Al-Bustani

14 alleges that after Ms. Twyman died, Mr. Holder posted links to PDF copies of some of 15 her written works (the “Works”) on the Website. (See id. ¶ 38.) Mr. Al-Bustani alleges 16 that the Works are subject to copyright protection, and that Mr. Holder uploaded the 17

18 1Gen Media requests oral argument (see Mot. at 1), but the court has determined that oral argument would not be helpful to its disposition of the motion, see Local Rules W.D. Wash. 19 LCR 7(b)(4).

20 2 Both parties refer to Defendant Louis Clyde Holder by his alias, Clyde Lewis. (See 2d Am. Compl.; MTD.) For clarity, the court refers to Mr. Holder by his legal name. (See Dkt.)

21 3 The court detailed the factual background of this case in its August 9, 2022 order and does not repeat that background here. (See 8/9/22 Order (Dkt. # 35).) Instead, the court 22 discusses only the factual and procedural background relevant to the instant motion. 1 Works for his paid subscribers to access without Ms. Twyman’s authorization. (Id. 2 ¶¶ 26, 38; see also id. ¶ 1 (asserting that Mr. Al-Bustani is registered as the Claimant of

3 the Works).) 4 Mr. Al-Bustani alleges that Gen Media is the parent company to Sun Audio 5 Networks, LLC (“Sun Audio”), which was responsible for marketing and licensing the 6 Ground Zero Show to radio stations. (Id. ¶¶ 39, 41, 44.) Sun Audio first entered a “Sales 7 and Affiliation Agreement” with Mr. Holder on March 27, 2019. (Id. ¶ 39 Ex. B (the 8 “Agreement”).4) In relevant part, the Agreement provided that Mr. Holder (referred to as

9 “Owner”) would “develop, host and produce the Shows,” and was “responsible for the 10 day to day management of the staff and process to distribute the Shows for broadcast, 11 including . . . websites.” (Agreement § 3(a)-(b).) Sun Audio and Mr. Holder mutually 12 represented in the Agreement that, “no material furnished about the Shows or 13 promotional materials[] will infringe upon the rights of any third party, including but not

14 limited to copyright, trademark, and rights of privacy.” (Id. § 9(b).) The Agreement 15 further provided that either party could terminate the Agreement “for cause,” which 16 included any “material violation of law” or “breach of either part[y’s] obligations under 17 this agreement.” (Id. § 8(b).) The Agreement was effective between May 1, 2019, and 18 December 31, 2020. (Id. § 8(a).)

19 20 4 The court considers the Agreement because it is attached to the second amended complaint. See, e.g., United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003) (noting that a 21 court may consider documents attached to the complaint on a 12(b)(6) motion to dismiss); Fed. R. Civ. P. 10(c) (“A copy of a written instrument that is an exhibit to a pleading is a part of the 22 pleading for all purposes.”). 1 Mr. Al-Bustani alleges that the Website “acted as a draw and created a wider 2 audience for the [Ground Zero] Show[], which, in turn, resulted in increased revenues.”

3 (2d Am. Compl. ¶ 43.) The allegedly increased revenues, Mr. Al-Bustani asserts, created 4 “an economic incentive for Sun [Audio] to tolerate [Mr. Holder’s] infringing conduct 5 (without paying licensing fees to Plaintiff) and a direct financial benefit for Sun [Audio].” 6 (Id.) According to Mr. Al-Bustani, Sun Audio “could have terminated the Agreement, 7 thereby leaving [Mr. Holder] without the means and ability to reach the broad audience 8 the Agreement had allowed him to reach, but Sun [Audio] chose instead to tolerate the

9 infringement on the Website until late 2020” when the parties’ relationship ended. (Id.) 10 Mr. Al-Bustani filed the instant action on April 11, 2022, and named Gen Media 11 as a defendant in an amended complaint filed September 22, 2022. (See Compl. (Dkt. 12 # 1); FAC (Dkt. # 44).) On Gen Media’s motion to dismiss Mr. Al-Bustani’s first 13 amended complaint, the court dismissed with prejudice each of Mr. Al-Bustani’s claims

14 against Gen Media, but dismissed without prejudice Mr. Al-Bustani’s claim for vicarious 15 copyright infringement. (See 2/6/23 Order (Dkt. # 91) at 20-21.) Mr. Al-Bustani filed a 16 second amended complaint with leave of the court. (See id.; see also 2d Am Compl.) 17 Gen Media now moves to dismiss Mr. Al-Bustani’s amended claim for vicarious 18 copyright infringement with prejudice. (MTD at 2.)

19 III. ANALYSIS 20 The court first reviews the legal standard for a motion to dismiss before turning to 21 Gen Media’s motion. The court then determines whether leave to amend is appropriate. 22 1 A. Legal Standard for a Motion to Dismiss 2 Federal Rule of Civil Procedure 12(b)(6) provides for dismissal when a complaint

3 “fail[s] to state a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). 4 Under this standard, the court construes the complaint in the light most favorable to the 5 nonmoving party, Livid Holdings Ltd. v. Salomon Smith Barney, Inc., 416 F.3d 940, 946 6 (9th Cir. 2005), and asks whether the complaint contains “sufficient factual matter, 7 accepted as true, to ‘state a claim to relief that is plausible on its face,’” Ashcroft v. Iqbal, 8 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570

9 (2007)). The court is not, however, required to accept as true legal conclusions or 10 “formulaic recitation[s] of the legal elements of a cause of action,” Chavez v. United 11 States, 683 F.3d 1102, 1008 (9th Cir. 2012), or “allegations that are merely conclusory, 12 unwarranted deductions of fact,” Daniels-Hall v. Nat’l Educ. Ass’n,

Al-Bustani v. Alger, (W.D. Wash. 2023).

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