Charles W. Pemble, IV v. Hexos, Inc. and George Edward Murgitroyd

District Court, E.D. North Carolina·Decided June 5, 2026·No. 5:25-cv-00521·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF NORTH CAROLINA WESTERN DIVISION Case No. 5:25-CV-00521-M-KS CHARLES W. PEMBLE, IV, Plaintiff, V. ORDER HEXOS, INC. and GEORGE EDWARD MURGITROYD, Defendants.

This is a copyright dispute. Plaintiff, who previously worked for Defendant Hexos, Inc. (“Hexos”) as its Chief Commercialization Officer and Chief Executive Officer, claims that Hexos’ continued use of its logo, name, and taglines (“the Creative Works”), infringes on Plaintiff's interests in those materials. DE 1 { 82. Underlying that claim is Plaintiff's broader contention that he is “the sole author” of the Creative Works, which he “created independently and outside the scope of employment, with no written assignment executed.” DE 1 4 82. To correct for this alleged wrong, Plaintiff brings a federal copyright infringement claim under 17 U.S.C. § 501 and 17 U.S.C. § 506(e) (Second Claim for Relief) and various state law claims (First, Third, Fourth, Fifth, Sixth, and Seventh Claims for Relief). See generally DE 1 at 24-29. Pending before the court are Defendants’ Motion to Dismiss, DE 15, and United States Magistrate Judge Kimberly A. Swank’s Memorandum and Recommendation (“M&R”) regarding that Motion, DE 42. Judge Swank explains that Plaintiff does not own a copyright and, therefore, recommends dismissing Plaintiffs federal claims for lack of Article III standing, or alternatively for failure to state a claim, and declining to exercise supplemental jurisdiction over the remaining state law claims. DE 42.

I. Factual and Procedural History! On July 10, 2020, Hexos recruited Plaintiff to join the company as Vice President of Sales after having negotiated the terms of that employment via text message. DE 1 § 26. On August 1, 2020, (and before Plaintiff had signed a formal employment contract regarding his role as Vice President of Sales) Hexos promoted Plaintiff to Chief Commercialization Officer (“CCO”). DE 1 §{ 26, DE 1-1 at 1. On that day, Plaintiff signed a fully executed employment contract (the “Agreement’”) outlining his roles and responsibilities as CCO and governing the assignment of various rights. See generally DE 1-10. As defined in the Agreement, Hexos expected Plaintiff, in his capacity as CCO, to specifically “develop and implement commercial strategies,” “run and conduct sales and marketing,” and “collaborate with and coordinate diverse teams (marketing, sales, customer service etc.).” DE 1-10 at 7. And Hexos broadly tasked Plaintiff with “add[ing] value to [its] growth activities by identifying new commercial opportunities and managing marketing efforts.” DE 1-10 at 7. Relevant here, the Agreement also contained four provision explicitly governing “Inventions:” 3.1. | The Employee agrees from time to time to promptly and fully inform and disclose to the Company all inventions, designs, improvements and discoveries which the Employee now has, or may have during the Employee’s employment, developed, conceived or reduced to practice, which pertain to or relate to the Company or to any experimental work performed by the Company, whether conceived by the Employee alone or with others and whether or not conceived during regular working hours (the “Inventions’”).

' Consistent with the legal standard on a motion to dismiss, these facts are as alleged in the Complaint and within documents attached to the Complaint. Belmora LLC v. Bayer Consumer Care AG, 819 F.3d 697, 705 (4th Cir. 2016) (“In ruling on a motion to dismiss, a court evaluates the complaint in its entirety, as well as documents attached or incorporated into the complaint.”) (cleaned up).

3.2. All Inventions, and any and all rights, interests and title therein, shall be the exclusive property of the Company and the Employee shall not be entitled, and hereby waives now and/or in the future, any claim to any right, compensation and/or reward in connection therewith. 3.3. In the event that any Invention shall be deemed the Employee’s in whole or part, the Employee hereby assigns and shall in the future take all the requisite steps (including by way of illustration only, signing all appropriate documents) to assign to the Company and/or its designee any and all of his/her rights, titles and interests, on a worldwide basis and hereby further acknowledges and shall in the future acknowledge the Company’s full and exclusive ownership in all Inventions. . . . 3.4. Subject to applicable law, Employee understands that the provisions of this Agreement requiring assignment of Inventions to the Company do not apply to: (i) any Invention that Employee developed entirely on his/her own time without using Company's equipment, supplies, facilities, trade secret information or Confidential Information (an “Other Invention”) except for those Other Inventions that either (a) relate at the time of conception or reduction to practice of such Other Invention to the Company's business, or actual or demonstrably anticipated research or development of the Company or (b) result from any work that he/she performed for the Company.... DE 1-10 at 12-13. After signing that agreement, and while working as Hexos’ CCO, Plaintiff “created the Hexos brand identity.” DE 1 938. That included developing the Creative Works at issue in this matter. Plaintiff came up with the name “Hexos” sometime during November 17, 2020, to November 19, 2020, designed Hexos’ logo between January 31, 2021, and February 8, 2021, and crafted Hexos’ marketing taglines on or about February 4, 2021. DE 1 { 38; see also DE 1-4, DE 1-5. Hexos filed to perfect intellectual property interests—either trademarks or copyrights, as appropriate—in each of the Creative Works between December, 2020, and August, 2021. See DE 1-6 at 7.

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Charles W. Pemble, IV v. Hexos, Inc. and George Edward Murgitroyd, (E.D.N.C. 2026).

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