AMDL Collections, Inc. v. Coast to Coast Business Management, Inc.

CourtDistrict Court, S.D. Texas
DecidedJanuary 3, 2025
Docket4:23-cv-04146
StatusUnknown

This text of AMDL Collections, Inc. v. Coast to Coast Business Management, Inc. (AMDL Collections, Inc. v. Coast to Coast Business Management, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
AMDL Collections, Inc. v. Coast to Coast Business Management, Inc., (S.D. Tex. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT January 03, 2025 FOR THE SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

§ AMDL COLLECTIONS, INC., § § Plaintiff, § v. § CIVIL ACTION NO. H-23-4146 § COAST TO COAST BUSINESS § MANAGEMENT, INC., d/b/a TEXAS § TOY DISTRIBUTION, § § Defendant. §

MEMORANDUM AND ORDER Both parties in this copyright infringement suit make plush animals in China and import them into this country. The plaintiff, AMDL, alleges infringement as to four plush toys: a bearded dragon named “Pogo”; a bee named “Buzzy”; a Mosasaurus named “Moby”; and a gecko lizard named “Leo.” The defendant, Texas Toy Distribution, makes the allegedly infringing plush toys. The TTD toys at issue are as follows: a bearded dragon; a bee; a mosasaurus; and a Gila monster. The parties have submitted samples of each product to enable the court to do the required side-by- side comparison to decide whether the AMDL’s products are substantially similar to TTD’s. TTD has moved to dismiss and for summary judgment on infringement and filed a separate motion for summary judgment on misappropriation. (Docket Entry Nos. 29, 31, 36). AMDL has responded and cross-moved for summary judgment. (Docket Entry No. 37, 38). The issues are whether AMDL’s stuffed toys feature any protected elements and whether, in a side-by side-comparison, a reasonable person would find any or all the four toys “substantially similar.” “Not all copying is legally actionable.” Peel & Co. v. The Rug Mkt., 238 F.3d 391, 395 (5th Cir. 2001). “To determine whether an instance of copying is legally actionable, a side-by- side comparison must be made between the original and the copy to determine whether a layman would view the two works as substantially similar.” Creations Unlimited, Inc. v. McCain, 112 F.3d 814, 816 (5th Cir. 1997) (internal quotations omitted). To the extent that a copyrighted work

contains unprotectable elements, a court filters out these elements from its analysis to determine whether the defendant infringed the protectable elements of the work. Kepner-Tregoe, Inc. v. Leadership Software, Inc., 12 F.3d 527, 533-34 (5th Cir. 1994). If the confusion between two copyrighted works would stem only from a comparison of the two works in their entirety, including unprotectable elements, there is no infringement. Nola Spice Designs, L.L.C. v. Haydel Enters., 783 F.3d 527 (5th Cir. 2015). “A determination that no substantial similarity exists as a matter of law is ‘appropriate if the court can conclude, after viewing the evidence and drawing inferences in a manner most favorable to the nonmoving party, that no reasonable juror could find substantial similarity of ideas

and expression.’” Rucker v. Harlequin Enters., Ltd., 2013 U.S. Dist. LEXIS 26299, at *12 (S.D. Tex. Feb. 26, 2023) (quoting Gen. Universal Sys., Inc. v. Lee, 379 F.3d 131, 142 (5th Cir. 2004)); see also, Torah Soft Ltd. v. Drosnin, 136 F. Supp. 2d 276, 282 (S.D.N.Y. 2011) (“[N]oninfringement may be decided as a matter of law either when the similarity concerns only noncopyrightable elements of plaintiff’s work, or when no reasonable trier of fact could find the works substantially similar.”). Images of AMDL’s toys and the allegedly infringing toys created by TTD are set out below. I. Pogo v. Bearded Dragon 24 AMDL designed and in 2017 began to sell a plush bearded dragon, Pogo. (Docket Entry No. 1 at J 12-13).

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In 2022, TTD began to sell a plush bearded dragon toy that it refers to as “Bearded Dragon 24 Plush Toy.” (/d. at ¢ 35). AMDL alleges that this toy infringes on the design of “Pogo.” (/d.)

In 2015, AMDL designed a bee plush toy named “Buzzy the Honey Bee.” (/d. at [Jj 17- 18). AMDL began selling Buzzy in 2016. Ud. at § 17).

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In 2022, TTD began selling a bee plush toy, which it refers to as “Bee 14” Plush Stuffed Animal.” (/d. at § 41). AMDL alleges that this toy infringes the design of its “Buzzy the Honey Bee.” (/d.). TTD points out that its “Bee 14” is a rendition of a honeybee, while AMDL’s “Buzzy” is a bumblebee.

In 2018, AMDL designed a dinosaur plush toy named “Moby the Mosasaurus Dinosaur.” (Id. at § 23). AMDL began selling Moby in 2019. (/d. at § 22).

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In 2022, TTD began selling a toy that it referred to as “Mosasaur 19.7” Dinosaur Plush Stuffed Animal.” (/d. at § 47). AMDL alleges this TTD toy infringes the AMDL Moby. (/d.). ** 4 teal Pe i ey. a A 3 □□

In 2018, AMDL designed a gecko lizard plush toy named “Leo the Leopard Gecko.” (/d. at 27-28). AMDL began selling Leo in 2019. (/d. at § 27).

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In 2022, TTD began selling a “Gila Monster 24.5” Plush Stuffed Animal.” (/d. at 53). AMDL alleges that this toy infringes its Leo gecko lizard plush toy.

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1. The Threshold Issues TTD has moved to strike the declaration of Dafne Le, the president of AMDL Collections, Inc. The motion is granted in part and denied in part. (Docket Entry No. 40). Ms. Le’s declaration does not state the basis for the personal knowledge she asserts about many of the details she asserts about TTD. (Docket Entry No. 37-1). She states generally that she is “familiar with AMDL’s positions in this matter and its claims against” TTD. (Docket Entry No. 37-1). The court does not strike the portions of the declaration that describe what AMDL has done. The court does strike the portions of the declaration that describe TTD’s actions. Paragraphs 13, 14, 16, and 18 are stricken. Paragraph 21 is stricken as irrelevant. (/d.). I. The Legal Standards A. The Motion to Dismiss Rule 12(b)(6) allows dismissal if a plaintiff fails “to state a claim upon which relief can be granted.” FED. R. Civ. P. 12(b)(6). Rule 12(b)(6) must be read in conjunction with Rule 8(a), which requires “‘a short and plain statement of the claim showing that the pleader is entitled to relief.” FED. R. Civ. P. 8(a)(2). “[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)). Rule 8 “does not require ‘detailed factual allegations,’ but it demands more than an unadorned, the-defendant-unlawfully- harmed-me accusation.” Id. at 678 (quoting Twombly, 550 U.S. at 555). “A claim has facial plausibility when the plaintiff pleads 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 plausibility standard is not akin to a ‘probability requirement,’ but it asks for more than a sheer possibility that a defendant has acted unlawfully.” Id. (quoting Twombly, 550 U.S. at 556). “Conversely, when the allegations in a complaint, however true, could not raise a claim of entitlement to relief, this basic deficiency should be exposed at the point of minimum expenditure of time and money by the parties and the court.” Cuvillier v. Taylor, 503 F.3d 397, 401 (5th Cir.

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