Consumer Health Information Corp. v. Amylin Pharmaceuticals, Inc.

54 F. Supp. 3d 1001, 2014 U.S. Dist. LEXIS 130851, 2014 WL 4670881
CourtDistrict Court, S.D. Indiana
DecidedSeptember 18, 2014
DocketCase No. 1:13-cv-01061-TWP-DML
StatusPublished
Cited by5 cases

This text of 54 F. Supp. 3d 1001 (Consumer Health Information Corp. v. Amylin Pharmaceuticals, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consumer Health Information Corp. v. Amylin Pharmaceuticals, Inc., 54 F. Supp. 3d 1001, 2014 U.S. Dist. LEXIS 130851, 2014 WL 4670881 (S.D. Ind. 2014).

Opinion

ENTRY ON MOTION TO DISMISS

TANYA WALTON PRATT, District Judge.

This matter is before the Court on a Motion to Dismiss filed by Defendants Amylin Pharmaceuticals, Inc., Amylin Pharmaceuticals, L.L.C., (collectively, “Amylin”) and Eli Lilly & Co. (“Lilly”) (collectively, “Defendants”) (Filing No. 23), as well as a Supplemental Motion to Dismiss filed by the Defendants (Filing No. 45). Plaintiff Consumer Health Information Corporation (“CHIC”) filed this copyright infringement action under the Copyright Act of 1976, 17 U.S.C. § 101 et seq. (“Copyright Act”) against Defendants, alleging that Defendants infringed on copyrights on patient education materials developed by CHIC. For the reasons set forth below, Defendants’ Motion to Dismiss and the Supplemental Motion to Dismiss are GRANTED.

I. BACKGROUND

The following facts are taken from CHIC’s Complaint and are accepted as true for purposes of this motion to dismiss. CHIC is a corporation incorporated under the laws of the District of Columbia with its principal place of business in the State of Virginia. Amylin Pharmaceuticals, Inc. is a corporation incorporated under the laws of the State of Delaware with its principal place of business in the State of California. Amylin Pharmaceuticals, L.L.C. is a limited Lability company formed under the laws of the State of California with its principal place of business in the State of California. Lilly is a corporation incorporated under the laws of the State of Indiana with its principal place of business in the State of Indiana. Amylin and Lilly are companies primarily engaged in the research, development, manufacture, marketing, and sale of pharmaceuticals and medical devices. CHIC has expertise in patient engagement and patient adherence strategies, health literacy, and patient education program development for prescription drugs, over-the-counter products and medical devices.

In 2005, Defendants introduced the pharmaceutical drug BYETTA to the marketplace. BYETTA is an injectable prescription medicine used to treat adults with type 2 diabetes mellitus. Defendants worked together to research, develop, manufacture, market and sell BYETTA as part of a mutual alliance referred to as the Amylin-and-Lilly Alliance. After the launch of BYETTA, Defendants experienced unexpectedly poor sales and ex[1005]*1005tremely high call center costs. The poor sales were the result of poor patient adherence and compliance. Patients had a difficult time understanding the materials that came with their medication and thus had difficulty administering the drug properly. As a result, many patients stopped taking BYETTA, and subsequently stopped re-filling their prescriptions. In addition, the materials provided to physicians and other healthcare professionals did not adequately train these persons on how to demonstrate the proper use of BYETTA to their patients. As a result, physicians did not prescribe BYETTA as frequently as expected. Both of these factors contributed to poor sales.

In November 2005, Defendants contacted CHIC to develop a strategy to improve sales of BYETTA by improving patients’ understanding of how to use the medication. In December 2005, Defendants requested CHIC to develop a patient-compliance strategy that would increase patient adherence. From December 2005 to February 2006, CHIC provided consulting services and proposals for development of a patient compliance strategy. During the course of this work, Defendants requested a high number of revisions to CHIC’s proposals for which CHIC was never paid. Defendants reassured CHIC that payment for its prior work would be forthcoming. In February 2006, Defendants decided to change the scope of the work and requested a proposal from CHIC for the development of new patient education materials for BYETTA. In March 2006, CHIC and the Defendants entered into a Master Service Agreement (“the Agreement”) for the development of patient education materials. CHIC signed the Agreement because Defendants refused payment for past work unless and until the Agreement was executed, and also because CHIC was in poor financial condition and wished to preserve its reputation in the pharmaceutical industry marketplace.

Under the Agreement, CHIC was retained to provide patient education services to Defendants, including the development and revision of BYETTA patient education materials. Section 4(a) of the Agreement purports to designate CHIC’s creation of the patient education materials as works made for hire under 17 U.S.C. § 201, and CHIC purported to assign its interest in the copyrighted materials to Amylin. Defendants have been copying and using these materials for the past seven years. CHIC claims that not all of the copyrighted materials at issue were assigned to Amylin under the terms of the Agreement or, alternatively, that CHIC may avoid enforcement of the Agreement assignment provisions under the California economic duress doctrine.

In December 2008, CHIC filed a prior civil action against the Defendants and the action was voluntarily dismissed, without CHIC’s consent, on July 20, 2009. (Filing No. 38-1). Additional facts will be addressed below as necessary.

II. LEGAL STANDARD

When considering a motion to dismiss pursuant to Rule 12(b)(6), the court examines the sufficiency of the complaint, not the merits of the lawsuit. United States v. Clark Cnty., Ind., 113 F.Supp.2d 1286, 1290 (S.D.Ind.2000). The court will dismiss a complaint for failure to state a claim if it “ ‘appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.’ ” Hamlin v. Vaudenberg, 95 F.3d 580, 583 (7th Cir.1996) (quoting Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)). When reviewing a 12(b)(6) motion, the court takes all well-pleaded allegations in the complaint as true and draws all inferences in favor of [1006]*1006the plaintiff. Bielanski v. Cnty. of Kane, 550 F.3d 632, 633 (7th Cir.2008) (citations omitted). However, the allegations must “give the defendant fair notice of what the ... claim is and the grounds upon which it rests” and the “[f]actual allegations must be enough to raise a right to relief above the speculative level.” Pisciotta v. Old Nat’l Bancorp, 499 F.3d 629, 633 (7th Cir.2007) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)). Stated differently, the complaint must include “enough facts to state a claim to relief that is plausible on its face.” Hecker v. Deere & Co., 556 F.3d 575, 580 (7th Cir.2009) (citations omitted). To be facially plausible, the complaint must allow “the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal,

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Bluebook (online)
54 F. Supp. 3d 1001, 2014 U.S. Dist. LEXIS 130851, 2014 WL 4670881, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consumer-health-information-corp-v-amylin-pharmaceuticals-inc-insd-2014.