Calista Enterprises Ltd. v. Tenza Trading Ltd.

43 F. Supp. 3d 1099, 2014 WL 3896076, 2014 U.S. Dist. LEXIS 109509
CourtDistrict Court, D. Oregon
DecidedAugust 8, 2014
DocketCase No. 3:13-cv-01045-SI
StatusPublished
Cited by6 cases

This text of 43 F. Supp. 3d 1099 (Calista Enterprises Ltd. v. Tenza Trading Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Calista Enterprises Ltd. v. Tenza Trading Ltd., 43 F. Supp. 3d 1099, 2014 WL 3896076, 2014 U.S. Dist. LEXIS 109509 (D. Or. 2014).

Opinion

OPINION AND ORDER

MICHAEL H. SIMON, District Judge.

This is a trademark dispute between two providers of Internet pornography. Plaintiff Calista Enterprises Ltd. (“Calista”) and Defendant Tenza Trading Ltd. (“Ten-za”) are businesses that operate websites in the adult-entertainment industry and stream sexually explicit videos. The parties’ claims and counterclaims concern U.S. trademark law under the Lanham Act, 15 U.S.C. §§ 1114-1125, as well as related claims under Oregon law. Calista moves for partial summary judgment on its claim for cancellation of Tenza’s registered trademark, Calista’s claim for declaration of noninfringement, Tenza’s claim for counterfeiting, and for a finding that Ten-za’s claims are barred by laches. Tenza moves for partial summary judgment on its claims for trademark infringement, counterfeiting, cybersquatting, and for a finding that Calista may not recover money damages. For the reasons below, the Court denies Calista’s motion for partial summary judgment and grants in part and denies in part Tenza’s motion for partial summary judgment.

STANDARDS

A party is entitled to summary judgment if 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). The moving party has the burden of establishing the absence of a genuine dispute of material fact. Celotex Corp. v. Catrett, 477 [1108]*1108U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The court must view the evidence in the light most favorable to the non-movant and draw all reasonable inferences in the non-movant’s favor. Clicks Billiards Inc. v. Sixshooters Inc., 251 F.3d 1252, 1257 (9th Cir.2001). Although “Credibility determinations, the weighing of the evidence, and the drawing of legitimate inferences from the facts are jury functions, not those of a judge ... ruling on a motion for summary judgment,” the “mere existence of a scintilla of evidence in support of the plaintiffs position [is] insufficient....” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 252, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). “Where the record taken as a whole could not lead a rational trier of fact to find for the non-moving party, there is no genuine issue for trial.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (citation and quotation marks omitted).

Where parties file cross-motions for summary judgment, the court “evaluated] each motion separately, giving the non-moving party in each instance the benefit of all reasonable inferences.” A.C.L.U. of Nev. v. City of Las Vegas, 466 F.3d 784, 790-91 (9th Cir.2006); see also Pintos v. Pac. Creditors Ass’n, 605 F.3d 665, 674 (9th Cir.2010) (“Cross-motions for summary judgment are evaluated separately under [the] same standard.”). In evaluating the motions, “the court must consider each party’s evidence, regardless under which motion the evidence is offered.” Las Vegas Sands, LLC v. Nehme, 632 F.3d 526, 532 (9th Cir.2011). “Where the non-moving party bears the burden of proof at trial, the moving party need only prove that there is an absence of evidence to support the non-moving party’s case.” In re Oracle Corp. Sec. Litig., 627 F.3d 376, 387 (9th Cir.2010). Thereafter, the non-moving party bears the burden of designating “specific facts demonstrating the existence of genuine issues for trial.” Id. “This burden is not a light one.” Id. The Supreme Court has directed that in such a situation, the non-moving party must do more than raise a “metaphysical doubt” as to the material facts at issue. Matsushita, 475 U.S. at 586, 106 S.Ct. 1348.

BACKGROUND1

A. Tenza

Tenza is the owner of an adult-entertainment website at www.porntube.com. The www.porntube.com website was originally owned by EMC Ideas, Inc. In late 2010, EMC sold the domain name to FUX Ltd., of which Steve Matthyssen is a shareholder. FUX contributed the domain name bought from EMC to the newly formed Tenza, of which FUX is a shareholder. Tenza’s domain porntube.com is operated by non-party DreamStar Cash Ltd. (“DreamStar”). DreamStar is managed by Steven Matthyssen who, along with Michael Cardone, is a beneficial co-owner of Tenza.

In May of 2005, the www.porntube.com website began streaming pornographic videos. Content on -Tenza’s website is uploaded by content producers. Tenza’s business model is to route traffic to its website and generate revenue through two methods: (1) third-party advertising displayed on the website; and (2) payments from the content producers when visitors [1109]*1109click on a hyperlink to the content producer’s website and make a purchase from that content producer. In order to promote visitors to its website, Tenza markets itself by using “search. engine placement services” to maximize the times when Ten-za’s website appears among the top results on a search engine in response to user searches. Tenza also sponsors events, such as race cars in major races, to promote its website. Tenza’s primary marketing tool, however, is its affiliate program, whereby operators of other adult-entertainment websites (“Affiliates”) include links on their websites so that visitors to those websites may “click through” to reach Tenza’s website. Tenza then tracks each “click through” and compensates Affiliates on a per-click-through basis. Tenza’s website has a Global Alexa ranking, which estimates the popularity of a website based on the number of visitors and the number of page views on a site, of 1,110 globally and a ranking of 1,182 in the United States.2

Tenza also has a trademark registration for the word mark “PORNTUBE,” registration number 3,936,197 (“the '197 Registration”). Tenza’s predecessor in interest, . EMC, filed an application for the '197 Registration on October 29, 2008. Tenza bought the rights to the pending application in late 2010 for $30,000. The application recited a date of first use of the “PORNTUBE” word mark of May 2005. • After publication in the Official Gazette of the U.S. Patent & Trademark Office (“PTO”), WMM Holdings, LLC (“WMM”) filed an objection to the application for the '197 Registration. The objection was dismissed after Tenza entered into a consent and coexistence agreement with WMM. The PTO issued the '197 Registration on March 29, 2011 without further objection.

B. Calista

Calista owns and operates several websites that that “categorize” and link to third-party websites that stream pornographic videos. Calista’s sole owner and employee is Alexander Zhukov, a named counterclaim defendant in this action.3 Several other corporations work with Cal-ista on its websites, including Oklax Inc.

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Bluebook (online)
43 F. Supp. 3d 1099, 2014 WL 3896076, 2014 U.S. Dist. LEXIS 109509, Counsel Stack Legal Research, https://law.counselstack.com/opinion/calista-enterprises-ltd-v-tenza-trading-ltd-ord-2014.