Epic Tech, LLC v. Fusion Skill, Inc.

District Court, S.D. Texas·Decided April 23, 2021·No. 4:19-cv-02400·Unknown

Opinion

UNITED STATES DISTRICT COURT April 23, 2021 SOUTHERN DISTRICT OF TEXAS Nathan Ochsner, Clerk HOUSTON DIVISION

EPIC TECH, LLC, § § Plaintiff, § VS. § CIVIL ACTION NO. 4:19-CV-2400 § FUSION SKILL, INC., et al, § § Defendants. §

MEMORANDUM AND ORDER

Before the Court are Defendants’ Motion for Partial Summary Judgment on No Trademark Infringement and No Trade Dress Infringement (Doc. 180), Defendants’ Motion for Partial Summary Judgment of No Contributory or Vicarious Liability (Doc. 181), Plaintiff’s Motion for Partial Summary Judgment Regarding Copyright and Trademark Claims (Doc. 183), and Defendants’ Motion for Partial Summary Judgment of No Statutory Damage Under the Lanham Act (Doc. 188). I. BACKGROUND This is a patent, trademark, and copyright infringement case. Plaintiff Epic Tech, LLC, makes “electronic sweepstakes games,” i.e., games akin to electronic slot machines but modified to comply with regulatory provisions, which it seeks to protect here. The Court has ruled in favor of Defendants on the patent issues. (Doc. 241.) It now considers the copyright, trademark, and trade dress issues. This case involves allegations that Defendants, most notably Texas Wiz, LLC, distributed gaming hardware and software that violated Epic Tech’s copyrights and trademarks. Specifically, Epic Tech asserts copyrights related to its “Lucky Duck” game, including game icons and screens, cherries, watermelons, the “double bonus icon,” the “duck bonus icon,” and the “lucky seven icon.” (Doc. 183 at 1.) Epic Tech holds trademarks on its “Four Leaf Cash,” “Go Bananas,” “Lucky Duck,” “Hotter Than,” “Fishing Mob,” and “Bustin’ Vegas” games. (Doc. 183 at 18–20.) Epic Tech alleges that a software program called 8fuse contains games that infringe upon

all of these copyrights and trademarks. Epic Tech further alleges that Defendants distributed the 8fuse software to numerous customers, most relevantly to an establishment called Theo’s Billiards in Corpus Christi, Texas, and a man named Monir Kutob. Defendants dispute this characterization of their behavior. The specific evidence related to this dispute is discussed in the Court’s analysis of the copyright and trademark issues, to which it now turns. II. ANALYSIS Four motions for summary judgment remain for the Court’s decision. The Court will first discuss copyright infringement, then trademark infringement, then trade dress infringement, and finally the miscellaneous smaller issues remaining for decision. A. Copyright

Epic Tech moves for summary judgment on the issue of copyright infringement. (Doc. 183.) Epic Tech asserts violations of the copyrights used in connection with its “Lucky Duck” game, including images of the “Lucky Duck” game icons and screens, cherries, watermelons, the “double bonus icon,” the “duck bonus icon,” and the “lucky seven icon.” (Doc. 183 at 1.) Defendants “have resolved not to pursue any affirmative defense” but contend that Epic Tech cannot establish infringement. (Doc. 218 at 13.) “To establish copyright infringement, a plaintiff must prove ownership of a valid copyright and copying of constituent elements of the work that are copyrightable.” Eng’g Dynamics, Inc. v. Structural Software, Inc., 26 F.3d 1335, 1340 (5th Cir. 1994). Here, Defendants concede ownership and contest only the second element—“copying of constituent elements of the work,” 1.e., actionable copying. Actionable copying requires proof that (a) “the alleged infringer actually used the copyrighted material to create his own work,” i.e. engaged in “factual copying,” and (b) “there is substantial similarity between the two works.” /d. at 1341. Defendants contend that Epic Tech cannot establish factual copying or a substantial similarity between the two works. The two points boil down into one, because factual copying may be established where “the two works are so strikingly similar as to preclude the possibility of independent creation.” Gen. Universal Sys. v. Lee, 379 F.3d 131, 141 (Sth Cir. 2004). Here, there is no serious dispute that the alleged 8fuse software is “so strikingly similar as to preclude the possibility of independent creation.” The Court reproduces below the side-by-side comparisons offered by Epic Tech:

&

Reg. No. VAi746300

Mh oie ae Reg. No. VAi745457

Cay

~ Reg. No. VA000i1779200

(Doc. 183 at 14.) Rather than argue that these marks are not substantially similar, Defendants contend that Epic Tech has failed to prove (a) that the infringing marks are associated with the 8fuse software and (b) that, if they were, Defendants distributed the 8fuse software. The Court disagrees. Epic Tech has submitted evidence appropriate for consideration on summary judgment that establishes the 8fuse software’s copying of Epic Tech’s marks and Defendants’ distribution of the 8fuse software. Critically, Epic Tech has shown both that Defendants advertise the 8fuse software for distribution and that Theo’s is among Defendants’ customers. (Doc. 183-2 at 130955; Doc. 79- 1 {| 16.) Further, Epic Tech adduced photographs of the games offered at Theo’s. One such photograph is reproduced here:

□□ = meh |) ee a f.UL CANAL) |) ee i [ioe > ne L HA || Lan | Scr Wviy || Zea) i il Z, A | a | □□ hh TL a i a Ber tiple) ee Se \) | | 6 age 7 4 “oe a | □ ——~y an | □□ i’ SS Coal } i fe y . is {| 7 = : i : rear fl eT \| □ i mae; || || 49a) || || @ hi 7 || il es Ty | i ty ~~ er

(Doc. 183-11 at 1.) Clearly visible in this image are direct reproductions of the “duck bonus” icon, the “lucky seven” icon, the “double bonus” icon, the cherries icon, and the watermelons icon. This evidence suffices to resolve the copyright issue in Epic Tech’s favor. It shows that (a) Defendants distribute 8fuse products to their customers; (b) Theo’s Billiards is among Defendants’

customers; and (c) games offered at Theo’s, presumably on the 8fuse system, infringe upon Epic Tech’s copyrights. Therefore, Epic Tech has successfully proven—and Defendants have not disputed with evidence of their own—that Defendants violated Epic Tech’s exclusive right to “distribute” the copyrights under 17 U.S.C. § 106(3). Based on this evidence, the Court grants summary judgment to Epic Tech on its copyright infringement claims. B. Trademark Infringement Both parties move for summary judgment on the issue of trademark infringement. (Docs. 180, 183.) To establish a claim for trademark infringement, a plaintiff must show ownership of a legally protectable mark and a likelihood of confusion created by an infringing mark. All. for Good Gov’t v. Coal. for Better Gov’t, 901 F.3d 498, 505 (5th Cir. 2018).

As a threshold issue, the Court notes that Epic Tech failed to answer Defendants’ argument that Epic Tech introduced no evidence of infringement for two of its asserted marks, “Go Bananas” and “Four Leaf Cash.” (See Doc. 180 at 13.) At the motion hearing, Epic Tech strenuously insisted that these marks should nonetheless be considered. But Defendants clearly raised this issue in their briefing, complete with a separate subheading, and Epic Tech simply ignored it in both its own motion for summary judgment on this issue and its response to Defendants’ motion. In a case involving this many issues and this much evidence, it is the responsibility of the parties, not of the Court, to ensure that each matter is properly briefed and presented to the Court. The Court will therefore deem the matter waived by Epic Tech and will not consider claims related to the “Go Bananas” and “Four Leaf Cash” trademarks.

Free access — add to your briefcase to read the full text and ask questions with AI

Epic Tech, LLC v. Fusion Skill, Inc., (S.D. Tex. 2021).

Epic Tech, LLC v. Fusion Skill, Inc. (Epic Tech, LLC v. Fusion Skill, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related