Freelancer International Pty Limited v. Upwork Global, Inc.

District Court, N.D. California·Decided October 23, 2020·No. 3:20-cv-06132·Unknown

Opinion

FREELANCER INTERNATIONAL PTY Case No. 20-cv-06132-SI LIMITED, et al., Plaintiffs, ORDER DENYING PLAINTIFFS’ MOTION FOR A PRELIMINARY v. INJUNCTION AND GRANTING EXTENSION OF TIME TO ANSWER UPWORK GLOBAL, INC., et al., Re: Dkt. Nos. 7, 43, 45, 51, 52 Defendants.

On October 16, 2020, the Court held a hearing on plaintiffs’ motion for a preliminary injunction. Having considered the papers submitted and the arguments made, the Court hereby DENIES plaintiffs’ motion for a preliminary injunction.

BACKGROUND On August 31, 2020, plaintiffs Freelancer Technology Pty Limited (“Freelancer Tech”) and Freelancer International Pty Limited (“Freelancer Intl”) (collectively “plaintiffs” or “Freelancer”) filed the instant action as well as a motion for a temporary restraining order (“TRO”) and a preliminary injunction. Dkt. Nos. 1 (Compl.) and 7 (Mot.). The complaint alleges ten causes of action1 against defendants Upwork Inc. and Upwork Global Inc. (collectively “defendants” or “Upwork”). Dkt. No. 1 (Compl.). The Court denied plaintiffs’ motion for a TRO and granted in part and denied in part plaintiffs’ request for expedited discovery. Dkt. No. 29 (Order).

1 The ten causes of action are: (1) Counterfeiting; (2) Federal Trademark Infringement; (3) Federal Unfair Competition; (4) California Unfair Competition; (5) Common Law Unfair Competition; (6) Common Law Trademark Infringement; (7) Common Law Trade Name Plaintiffs and defendants are competitors – both offer software platforms matching freelancers with freelancing jobs. Dkt. No. 1 ¶¶ 45, 50. Freelancer Limited, which wholly owns plaintiffs, was founded in 2009. Dkt. No. 1 ¶¶ 1-2. Plaintiffs “have almost 47 million registered users, of which 9.1 million were added in 2019” and their “mobile applications have been downloaded over 5.4 million times, including over 1.6 million downloads in the 2019 fiscal year.” Dkt. No. 1 ¶¶ 4, 12. Since 2013, plaintiff Freelancer Tech has held the federally registered trademark2 to the word mark “FREELANCER” for the goods and services provided under Classes 9, 35, 36, and 45. Dkt. No. 1 ¶¶ 24, 26, 29-32; Dkt. No. 1-1 (Ex. 1) (“FREELANCER” registration certificate). The Classes from plaintiffs’ Principal Register registration are reproduced below: Class 9: “For: downloadable computer software for use in website authoring, downloading, transmitting, receiving, editing, extracting, encoding, decoding, playing, storing and organizing text, data, images, audio files, and video files; computer software for personal information management; computer software for use in recording, organizing, transmitting, manipulating, and reviewing text, data, audio files, and video files in connection with computers, television set-top boxes, music players, video players, media players, cellular phones, and portable and handheld digital electronic devices; computer software for accessing, browsing and searching online databases; computer software to enable users to program and distribute audio, video, text and other multimedia content, including music, concerts, videos, radio, television, news, sports, cultural events, and entertainment-related and educational programs via communications networks; computer software for identifying, locating, grouping, distributing, and managing data and links between computer servers and users connected to electronic communications networks” Class 35: “For: online retail store services featuring computer software” Class 36: “For: electronic payment services, namely, processing electronic funds transfer, credit card, debit card, electronic check and electronic payments via an electronic communications network; electronic funds transfer services; online escrow service for payment of services” Class 45: “For: dispute resolution services; identification verification services, namely, providing authentication of personal identification information; online social networking services” Dkt. No. 7 at 10-113 (emphasis in original); see Dkt. No. 1-1 (Ex. 1).

2 U.S. Reg. No. 4,284,314 issued on February 5, 2013, from U.S. Trademark Application Serial No. 77/983,284 (filed March 3, 2010). The mark, which received incontestable status in 2018, consists of standard characters without claim to any particular font, style, size, or color. Dkt. No. 1-1 (Ex. 1); Dkt. No. 1-2 (Ex. 2). However, plaintiff Freelancer Tech was refused registration on the Principal Register for the following areas because the United States Patent and Trademark Office (USPTO) determined the word mark “FREELANCER” is merely descriptive as applied to the following goods and services: Applicant has applied to register the mark FREELANCER for use in conjunction with “online business directories in the field of employment; providing a website allowing users to post messages offering or seeking job opportunities; providing online project management services for others for business purposes in the field of scheduling, accounting, business project management and business development, providing an on-line searchable database featuring classified ad listings and employment opportunities”, “Providing on-line electronic bulletin boards for transmission of messages among computer users concerning job opportunities”, and “Computer services, namely, creating an on-line community for registered users to participate in discussions, get feedback from their peers, form virtual communities, and engage in business networking; computer services, namely, providing a web- based system and online portal featuring on-line non-downloadable software that enables users to access recruitment, project management, dispute resolution, employment, employment directory, business directory, and job posting resources application service provider featuring application programming interface (API) software for use in building software applications for advertising, project management, user feedback and employment services; Computer services, namely, designing and implementing on demand web sites in the nature of turnkey packages allowing customers to create ecommerce web sites for the purpose of uploading photos and creating gifts; Testing, analysis and evaluation of the goods and services of others for the purpose of certification; creating an on-line community for registered users to evaluate the reputation, reliability, and integrity of individual services providers and customers, showcase their skills, get feedback from their peers, form virtual communities, engage in social networking and improve their talent; design, creation, hosting, maintenance of websites for others”. Dkt. No. 38-2 (Ex. 1 Office Action) (emphasis added).4 Defendants own the federally registered trademark “UPWORK.” Dkt. No. 38 at 11 (Oppo.). Defendants provide two UPWORK-branded mobile applications as shown below in both the Apple App Store (top) and the Google Play Store (bottom): 4 Plaintiffs move to strike paragraphs 2-6, 11, 15, and 17-25 and Exhibits 1-2, 6, 10, and 12- 16 of Dkt. No. 38-1 (Caldera Decl. in Support of Defs.’ Oppo.), which discusses and attaches Dkt. No. 38-2 Exhibit 1, the USPTO Office action for plaintiff Freelancer Tech’s trademark application. Plaintiffs argue Ms. Caldera’s declaration inappropriately offers factual evidence, making Ms. Caldera a fact witness. Dkt No. 43 at 3. The Court agrees with plaintiffs in part. Paragraphs 11, 15, and 17-25 are hereby struck from the declaration as improper. The Court denies plaintiffs’ motion to strike with respect to paragraphs 2-6 and Exhibits 1 and 2. Plaintiffs’ request to have Ms. Caldera removed from the matter as an attorney is denied. California Rule of Professional Conduct I Upwork for Freelance... Upwork for Clients Up asi: k for freelancers GET Oyo} Freelancers for quality wor GET 2 1 ‘ kk 3 Find Rewarding Projects Res mae te aa omit Pre mee teed

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Freelancer International Pty Limited v. Upwork Global, Inc., (N.D. Cal. 2020).

Freelancer International Pty Limited v. Upwork Global, Inc. (Freelancer International Pty Limited v. Upwork Global, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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