Bungie, Inc. v. Thorpe

CourtDistrict Court, N.D. California
DecidedNovember 8, 2021
Docket3:21-cv-05677
StatusUnknown

This text of Bungie, Inc. v. Thorpe (Bungie, Inc. v. Thorpe) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bungie, Inc. v. Thorpe, (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 BUNGIE, INC., et al., Case No. 21-cv-05677-EMC (DMR)

8 Plaintiffs, ORDER DENYING WITHOUT 9 v. PREJUDICE EX PARTE APPLICATION FOR LEAVE TO TAKE 10 ANDREW THORPE, et al., LIMITED EARLY DISCOVERY 11 Defendants. Re: Dkt. No. 11

12 13 Plaintiffs Bungie, Inc. (“Bungie”), Ubisoft Entertainment, and Ubisoft, Inc. (together, 14 “Ubisoft”) own and publish two popular online multiplayer video games. They claim that 15 Defendants Andrew Thorpe, Jonathan Agueda, Wesam Mohammed, Ahmad Mohammed, and a 16 number of unnamed defendants (the “Doe Defendants”) operate an online business venture called 17 Ring-1 that sells software that provides cheats and hacks to Plaintiffs’ games. Plaintiffs allege 18 violations of copyright, trademark, and related laws. 19 Plaintiffs make this ex parte application for leave to take limited early discovery pursuant 20 to Federal Rule of Civil Procedure 26(d) and Civil Local Rule 7-10 to identify nine anonymous 21 Doe Defendants. Application for Leave (“Appl.”) [Docket No. 11]. The Honorable Edward M. 22 Chen referred this matter to the undersigned for resolution. This matter is suitable for 23 determination without oral argument. Civil L.R. 7-1(b). The court denies Plaintiffs’ application 24 without prejudice. 25 I. BACKGROUND 26 Plaintiffs are the owners and publishers of the online multiplayer video games “Destiny 2” 27 and “Tom Clancy’s Rainbow Six: Siege” (“R6S”) (the “Games”). Compl. ¶ 1 [Docket No. 1]. 1 against computer-controlled opponents or fight against one another. Id. ¶¶ 22-23. Bungie offers 2 Destiny 2 to the public for free; players simply download the software online. Id. ¶ 43. Players 3 must purchase in-game currency to acquire optional items, unlock new characters, or gain access 4 to exclusive content. Id. Bungie owns all rights to Destiny 2 and multiple trademarks associated 5 with that software franchise. Id. ¶¶ 29-30. Bungie is incorporated in Delaware with its principal 6 place of business in Bellevue, Washington. Id. ¶ 9. 7 R6S, created by Ubisoft, is a game in which a player assumes the role of an elite special 8 forces operative. Id. ¶ 27. Each player must cooperate with other team members against a 9 competing team to complete certain military-themed objectives. Id. Players must purchase a copy 10 of the game or a license from a digital retailer. Id. ¶ 44. Players may acquire more items in game 11 either on a “free” track or a “premium” track, the latter of which is available for purchase and that 12 unlocks access to new benchmarks in the game and additional items. Id. ¶¶ 44-45. Ubisoft owns 13 all rights to R6S and multiple trademarks associated with that software franchise. Id. ¶¶ 12, 35-36. 14 Ubisoft Entertainment is incorporated and organized in France, while Ubisoft, Inc. is organized in 15 California. Id. ¶¶ 10-11. 16 Plaintiffs claim that Defendants are engaged in developing, selling, and supporting 17 software for sale to the public on the Ring-1 website that allows players to manipulate the Games 18 to their own advantage (the “Cheating Software”). Id. ¶ 2. Defendants are software developers, 19 operators or moderators of the Ring-1 website and its community forum, customer support and 20 technical assistance providers, and/or resellers who acquire and resell keys for the Ring-1 21 software. Id. ¶ 64. They sell weekly and monthly access to the Cheating Software for both 22 Games. Id. ¶ 65. Licenses for the Cheating Software are also available for purchase at authorized 23 resellers. Id. ¶ 66. Defendants provide extensive and ongoing customer support for the Cheating 24 Software. Id. ¶ 68. Plaintiffs allege the Defendants have made tens or hundreds of thousands of 25 dollars from distribution and sale of the Cheating Software. Id. ¶ 67. 26 Plaintiffs claim that Defendants unlawfully accessed Plaintiffs’ software code to develop 27 the Cheating Software, which modifies and alters the way players engage with the games and 1 reproduce and use an array of images and artworks from the Games to market the Cheating 2 Software on the Ring-1 website. Id. ¶¶ 64-69. 3 According to Plaintiffs, Defendants’ Cheating Software severely damages their business 4 model. Id. ¶ 47. Plaintiffs generate revenue from the sale of game content, virtual currencies, 5 digital enhancements or expansions, and other so-called Battle Passes (which Plaintiffs describe as 6 a “microtransaction system” in R6S). Id. ¶¶ 44, 46. Plaintiffs say that “[i]f players perceive others 7 are cheating or have an unfair advantage, they may grow frustrated with the Games and stop 8 playing them,” which will disrupt the online player community. Id. ¶ 47. Despite Plaintiffs’ use 9 of anti-cheat technologies that are installed on players’ computers when the software is installed, 10 entities like Ring-1 devise methods to avoid the detection of their cheating software, thereby 11 generating an “arms race” of sorts between game developers like Plaintiffs and architects of 12 cheating software like Defendants. Id. ¶¶ 52-56. 13 The complaint names four Defendants who are allegedly Ring-1 staff members or 14 community members: (1) Andrew Thorpe, known by his online alias “Krypto,” who is based in 15 the United Kingdom; (2) Jonathan Agueda, a/k/a “Overpowered,” based in Florida; (3) Wesam 16 Mohammed, a/k/a “Grizzy,” based in Indiana, and (4) Ahmad Mohammed, also based in Indiana. 17 Compl. ¶¶ 13-16. The complaint also names Doe Defendants who are involved with the Ring-1 18 operation and who provide customer support, are moderators and/or administrators of the Ring-1 19 website, resell the Cheating Software, and/or develop and maintain the Cheating Software. Id. 20 ¶ 19; Appl. at 4-5. Plaintiffs allege violations of the Digital Media Copyright Act, 17 U.S.C. 21 § 1201(a)(2), the federal Copyright Act, the Lanham Act, the Computer Fraud and Abuse Act, 22 California’s Unfair Competition Law, and intentional interference with contractual relations. 23 Plaintiffs request early discovery to ascertain the identities of nine Doe Defendants 24 allegedly involved in the Ring-1 venture, known only by their online aliases “Berserker,” 25 “Cypher,” “Admin,” “Calc,” “Overseer,” “Tralepo,” “Frost,” “Dove,” and “Pingu.” Appl. at 4-5. 26 Plaintiffs seek to issue third-party subpoenas to the following eleven entities that they suspect 27 have information that will help identify the Doe Defendants: NameSilo, LLC; Cloudflare, Inc.; 1 Google LLC; Apple Inc.; PayPal, Inc.; and Vimeo.com, Inc. Appl. at 5. These entities are 2 possible domain name registrars, content distributors, web hosts, communication applications, and 3 payment processors. Id. at 5-7. The subpoenas seek the names, addresses, email addresses, and 4 other identifying information of persons or entities who registered and use the aliases at issue with 5 accounts administered by the third parties, as well as the Internet Protocol (IP) addresses used to 6 access these accounts. Id. at 7. 7 II. LEGAL STANDARD 8 In the Ninth Circuit, “exceptions to the general rule” that discovery may not be initiated 9 prior to the Federal Rule of Civil Procedure 26(f) conference are “generally 10 disfavored.” Columbia Ins. Co. v. seescandy.com, 185 F.R.D. 573, 577 (N.D. Cal. 1999) (citing 11 Gillespie v. Civiletti, 629 F.2d 637, 642 (9th Cir. 1980). However, a court may authorize earlier 12 discovery “for the parties’ and witnesses’ convenience and in the interests of justice.” Fed. R. Civ. 13 P. 26(d)(3). Courts have permitted “limited discovery . . .

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