Canvasfish.com, LLC v. Pixels.com, LLC

CourtDistrict Court, W.D. Michigan
DecidedMarch 1, 2024
Docket1:23-cv-00611
StatusUnknown

This text of Canvasfish.com, LLC v. Pixels.com, LLC (Canvasfish.com, LLC v. Pixels.com, LLC) is published on Counsel Stack Legal Research, covering District Court, W.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Canvasfish.com, LLC v. Pixels.com, LLC, (W.D. Mich. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

CANVASFISH.COM, LLC,

Plaintiff, Case No. 1:23-cv-611 v. Hon. Hala Y. Jarbou PIXELS.COM, LLC,

Defendant. ___________________________________/ OPINION This is an action for copyright and trademark infringement under federal law and for tort under Michigan law. Count I alleges trademark counterfeiting and infringement under § 32(1) of the Lanham Act, 15 U.S.C. § 1114(1). Count II brings a claim for false designation of origin in violation of 15 U.S.C. § 1125(a). Count III alleges copyright infringement under 17 U.S.C. §§ 106 and 501. Count IV is a claim for violation of the Michigan common law right to publicity. Before the Court is Defendant’s motion to dismiss the complaint for failure to state a claim. (ECF No. 12). I. BACKGROUND Derek DeYoung is a Michigan-educated professional artist operating in the Traverse City area. The primary subject of his work is the sport of fly fishing. (Compl. ¶ 12, ECF No. 1.) To that end, the majority of his paintings depict fish, rendered with a unique color pallete and perspective that has made his work popular. (Id.) Not only does he sell to individual collectors, but he has licensed his work to various sporting equipment manufacturers who have displayed his designs on their products. (Id. ¶ 13.) In order to protect his trademark rights, DeYoung, through Canvasfish.com, LLC (Canvasfish), which owns the rights to his intellectual property, registered the DEYOUNG word mark with the United States Patent and Trademark Office (“USPTO”). As of September 22, 2020, the DEYOUNG mark covers “Original works of art, namely paintings,” in International Class 016, and “Online retail store featuring artwork, apparel, stickers, phone cases, drinkware, blankets, playing cards, boat wraps, coasters, coolers,” in International Class 035. (Id. ¶ 14.) The DEYOUNG mark is displayed prominently on his website header, and it is included as a watermark

on his original paintings signifying to the public that works bearing such marks are authentic. (Id. ¶¶ 15-18.) In addition to the registered DEYOUNG mark, Canvasfish also owns several United States Copyright Registrations for DeYoung’s unique works. (Id. ¶ 19; Exhibit 1, ECF No. 1-1.) Defendant Pixels.com, LLC (Pixels), is a print-on-demand web service that manufactures and sells products imprinted with third-party designed artwork to consumers. (Id. ¶ 23.) In addition to the website at Pixels.com, Pixels also operates and maintains the websites at fineartamerica.com and designerprints.com. (Id. ¶ 21.) Each of these sites performs the same function. In addition to these online marketplaces, Pixels also has a mobile phone application that

has a similar functionality to the websites but that only allows users to purchase art prints. (Id. ¶¶ 22, 25.) Pixels’ services allow third-party creators to upload artwork, photographs, and any other digital images they choose to any of its websites. Pixels does not police the content that is uploaded. (Id. ¶ 23.) Once creators have uploaded images, consumers can browse the entire catalog of content and purchase a number of physical products bearing those images which Pixels will then manufacture and ship anywhere in the country. (Id.) Pixels offers “canvas, wood, and acrylic art prints, greeting cards, phone cases, duvet covers, pillows, shower curtains, and tote bags.” (Id. ¶ 24.) When a consumer has selected an image and a physical product, that image is sent to a Pixels printing facility where the image is printed onto the product and shipped to the purchaser. (Id. ¶ 27.) Typically, the images are printed on “low-quality products, often overseas.” (Id. ¶ 50.) In addition to the printing and shipping services Pixels provides, it also offers an augmented reality application through its mobile app that allows potential buyers to see what the selected artwork will look like when it is hung on their wall. (Id. ¶ 25.)

“Pixels is actively involved in nearly every aspect of its users’ sales.” (Id. ¶ 28.) It maintains the library of art, acts as the payment processor, and manufactures, prints, warehouses, and ships each product sold through its websites and mobile applications. (Id.) In June 2021, Canvasfish discovered 39 copyrighted DeYoung works bearing the DEYOUNG mark being offered for sale on one of Pixels’ websites. (Id. ¶ 29.) These images were uploaded by users unaffiliated with Canvasfish.1 In order to confirm that Pixels was indeed holding these items out for sale, Canvasfish purchased three prints from the Pixels store FineArtAmerica. (Id. ¶ 30.) These prints were sent to Canvasfish in FineArtAmerica packaging and each of the prints bore the DEYOUNG mark. (Id. ¶¶ 31-32.)

Later that month, Canvasfish identified additional images on FineArtAmerica that bore the DEYOUNG mark. In all, Canvasfish determined that “eight of the DeYoung Works were being advertised and offered for sale by Pixels[.]” (Id. ¶ 34.) Consumers could have these works shipped as standard prints or imprinted on items such as “phone cases, pouches, stickers, tapestries, puzzles, coffee mugs, beach towels and pillows.” (Id.) After discovering these images, Canvasfish filed a suit in the Northern District of Illinois in 2022 to stop the individual third-party users who uploaded the infringing images to

1 Canvasfish is not the only company whose works are uploaded to Pixels by unauthorized third parties. According to the complaint, world-famous brands like “Carhartt, Disney, and Nintendo are regularly infringed upon by Pixels’ websites.” (Compl. ¶ 55.) FineArtAmerica from continuing to profit off of DeYoung’s work. (Id. ¶¶ 35-37.) Upon request, the court issued a temporary restraining order and expedited discovery in favor of Canvasfish. (Id. ¶ 38.) Despite Canvasfish serving a discovery request for information about the infringing uploaders of DeYoung’s work, Pixels allegedly “shirk[ed] its responsibility to prohibit the sale and offering for sale of works containing the DeYoung works and DEYOUNG mark,” by putting

the onus on Canvasfish to provide the information needed to find the infringing content rather than locating it itself. (Id. ¶ 39.) In the ensuing months, Pixels continued allowing users to upload infringing content to its sites, as Canvasfish discovered on March 31, 2023, when it again visited Pixels’ website and found numerous instances of DeYoung artwork uploaded by unsanctioned third parties. (Id. ¶ 42.) Not only were the images readily findable through the website’s search feature, but the Pixels web page contained a description of a collection of infringing content labeled “Derek DeYoung Products,” and also provided a shortcut link to “view all Derek DeYoung products.” (Id. ¶¶ 42- 44.) Each of these images also prominently displayed the DEYOUNG mark. (Id. ¶ 43.) In

addition to the shortcuts and search capabilities contained within the Pixels website itself, Pixels also included text and “meta tags” to “attract various search engines crawling the Internet looking for websites relevant to consumer searches for authorized products bearing the [DEYOUNG] [m]ark.” (Id. ¶ 45.) Canvasfish brought this suit on June 12, 2023, seeking preliminary and permanent injunctions against Pixels prohibiting it from displaying and offering up for sale DeYoung works and using the DEYOUNG mark. Canvasfish also seeks actual damages, lost profits, consequential damages, exemplary damages, and statutory damages as well as costs and attorney’s fees. II.

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Bluebook (online)
Canvasfish.com, LLC v. Pixels.com, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/canvasfishcom-llc-v-pixelscom-llc-miwd-2024.