Glass Egg Digital Media v. Gameloft, Inc.

CourtDistrict Court, N.D. California
DecidedFebruary 25, 2020
Docket3:17-cv-04165
StatusUnknown

This text of Glass Egg Digital Media v. Gameloft, Inc. (Glass Egg Digital Media v. Gameloft, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Glass Egg Digital Media v. Gameloft, Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 EUREKA DIVISION 7 8 GLASS EGG DIGITAL MEDIA, Case No. 17-cv-04165-MMC (RMI)

9 Plaintiff, ORDER ON MOTION FOR 10 v. SANCTIONS

11 GAMELOFT, INC., et al., Re: Dkt. No. 223 12 Defendants.

13 14 Now pending is a motion for monetary sanctions filed by Defendant Gameloft SE 15 (“GLSE”) (dkt. 223). Plaintiff has responded (dkt. 228), GLSE has replied (dkt. 229), and the 16 matter came on to be heard at oral argument before the undersigned on January 7, 2020 (dkt. 232). 17 For the reasons described below, GLSE’s motion is granted in part and denied in part. 18 FACTUAL BACKGROUND 19 This is an action for copyright infringement, conversion, and unfair competition. See 20 Fourth Amend. Compl. (Dkt. 144). Plaintiff, Glass Egg Digital Media, a British Virgin Islands 21 corporation, creates digital car models for use in the electronic game industry, while Defendant 22 GLSE, a French corporation, and Defendant Gameloft Inc. (“GLI”), a Delaware corporation, are 23 engaged in the business of producing electronic games. See id. at 2-3. On February 9, 2018, the 24 Parties appeared before Judge Chesney (see dkt. 98) to present arguments pertaining to GLSE’s 25 motion to dismiss (dkt. 63) for lack of personal jurisdiction. Thereafter, on February 12, 2018, 26 Judge Chesney entered an order that granted in part and deferred ruling in part on the motion to 27 dismiss, while allowing Plaintiff leave to conduct jurisdictional discovery pertaining to the size of 1 Gameloft website accessible to users within California. See Order of February 12, 2018 (dkt. 94) 2 (hereafter, “Jurisdictional Discovery Order”) at 1-2. 3 On February 6, 2018, Plaintiff filed an ex parte motion seeking a temporary restraining 4 order as well as an order to show cause why a preliminary injunction should not issue – both 5 requests boiled down to Plaintiff’s desire to restrain and enjoin Defendants from making any 6 changes to their website such that the evidentiary value perceived by Plaintiff in a particular 7 incarnation of that website might be preserved. See Pl.’s Mot. of February 6, 2018 (dkt. 91) at 5-8. 8 The same day, Judge Chesney entered an order denying preliminary injunctive relief, and to the 9 extent that Plaintiff sought an order precluding Defendants from spoliation of material evidence, 10 Judge Chesney referred “the motion, as well as all further discovery matters” to the undersigned 11 for resolution. See Order of February 6, 2018 (dkt. 92) at 1. That dispute was thereafter presented 12 to the undersigned by way of a joint letter brief (dkt. 111) filed on March 12, 2018. Therein, 13 Plaintiff argued that changes made to Defendants’ website in late 2017 and early 2018 were 14 tantamount to evidentiary spoliation and sought an order precluding Defendants from making any 15 changes to their website lest Plaintiffs “suffer immediate and irreparable harm.” Id. at 1-2. 16 Defendants’ portion of that letter brief detailed the burden associated with the effective freezing of 17 the website while making clear that Defendants were aware of their evidence preservation 18 obligations and that prior iterations of the website remain available for discovery. Id. at 3-5. A 19 hearing was convened on the same day and Plaintiff’s request for a TRO to effectively freeze 20 Defendants’ website was denied on grounds that the availability of prior iterations of the website 21 for discovery purposes rendered the hamstringing of Defendants’ website wholly unnecessary (see 22 dkt. 112). 23 More than a year later, in early April of 2019, the Parties presented three discovery 24 disputes through a series of joint letter briefs filed in succession. The first letter brief began by 25 noting that two additional briefs, which the parties had agreed to present to the undersigned, were 26 forthcoming; one dealing with a dispute about the propriety of a number of subpoenas sent to third 27 parties by Plaintiff (hereafter, “the subpoena dispute”), and the other was a dispute as to the scope 1 under the Jurisdictional Discovery Order. See Letter Br. of April 5, 2019 (dkt. 161). Substantively, 2 in the first letter brief, GLSE and GLI sought an order extending the response dates for Plaintiff’s 3 third-party subpoenas until after the resolution of the Parties’ disputes about the scope of 4 jurisdictional discovery and the propriety of the subpoenas. Id. at 2-4. As GLSE put it, Plaintiff 5 delayed a full year before serving the subpoenas in question, and only did so when GLSE 6 indicated that it would only produce information in accordance with GLSE’s interpretation of the 7 Jurisdictional Discovery Order. Id. at 3. The same day, the undersigned entered an order extending 8 the deadline for third parties to respond to Plaintiff’s subpoenas until April 9, 2019, while also 9 directing Defendants to file any motions to quash by the same date. See Order of April 5, 2019 10 (dkt. 164). 11 The Discovery Dispute: 12 The Parties then filed the first of their two promised letter briefs, attempting to set forth a 13 discovery dispute pertaining to “the scope” of the Jurisdictional Discovery Order, however, the 14 letter brief appeared convoluted for a number of reasons. See generally Letter Br. of April 5, 2019 15 (dkt. 165). First, the Parties appeared to have worked themselves into such depths of disagreement 16 that they disputed the very nature of the issues presented in the letter brief, as well as disputing 17 which judge should decide those issues, and which party might be considered the movant. Id. 18 Second, what seemed to be missing from this letter brief, was an enumeration of exactly which 19 items of discovery had been sought and declined, and for what reasons. Id. Each side spoke only 20 in generalities; for example, Plaintiff stated that the Jurisdictional Discovery Order did not limit 21 discovery of contacts related to the claims to establish that GLSE purposefully availed itself such 22 that the exercise of jurisdiction would be proper, and that the limits expressed therein did not 23 apply to discovery sought to be obtained from GLI or from third parties. Id. at 1. Similarly, 24 GLSE’s portion of this letter brief was equally unhelpful in that rather than enumerating specific 25 items of discovery in dispute, GLSE focused on characterizing the letter brief itself as a “fallacious 26 guise of a [] dispute” where Plaintiff sought a de facto reconsideration of a district judge’s order 27 by the undersigned, and noting that “the intent of the jurisdictional discovery order [] is uniquely 1 [] is also known to Judge Chesney.” Id. GLSE did mention in this letter brief that in March and 2 April of 2018, Plaintiff served GLSE with 410 written discovery requests, and that GLSE had 3 “objected to many of the discovery requests as, among other things, exceeding the scope of 4 discovery allowed under the February 12 Order.” Id. at 2 (emphasis added). GLSE then noted that 5 it had informed Plaintiff that GLSE “would produce certain documents subject to a Stipulated 6 Protective Order,” adding also that GLSE objected to Plaintiff’s issuance of subpoenas and to any 7 discovery response from GLI that would exceed the scope of jurisdictional discovery permitted as 8 to GLSE. Id. Further, GLSE and GLI noted that “[t]his is the latest instance of Plaintiff ignoring 9 the rules and directions of the court, with which Judge Chesney is familiar.” Id. at 4. Defendants 10 added that, while Judge Chesney had denied GLI’s previous motion for sanctions against Plaintiff 11 for reportedly threatening a witness with possible criminal charges in Vietnam, Plaintiff’s counsel 12 acknowledged he had committed the accused acts . . . [and] Judge Chesney is familiar with this 13 history.” Id.

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