GlobalOptions Services, Inc. v. North American Training Group, Inc.

131 F. Supp. 3d 1291, 2015 U.S. Dist. LEXIS 126983, 2015 WL 5474328
CourtDistrict Court, M.D. Florida
DecidedAugust 19, 2015
DocketCase No. 6:14-cv-2048-Orl-40DAB
StatusPublished
Cited by9 cases

This text of 131 F. Supp. 3d 1291 (GlobalOptions Services, Inc. v. North American Training Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
GlobalOptions Services, Inc. v. North American Training Group, Inc., 131 F. Supp. 3d 1291, 2015 U.S. Dist. LEXIS 126983, 2015 WL 5474328 (M.D. Fla. 2015).

Opinion

ORDER

PAUL G. BYRON, District Judge.

This cause comes before the Court on the following:

1. Counterclaim Defendant’s- Motion to Dismiss Counts III-VIII and X-XII of Counterclaim (Doc. 16), filed January 27, 2015; and
[1295]*12952. Counterclaim Plaintiffs Response to Motion to Dismiss Counterclaim (Doc. 26), filed March 9, 2015.

Upon consideration, the Court grants in part and denies in part Counterclaim Defendant’s Motion to Dismiss.

I. BACKGROUND

A. Procedural Background

This lawsuit arises out of a contractual dispute between Plaintiff/Counter-Defendant, GlobalOptions Services, Inc. (“GlobalOptions”), and Defendant/Counter-Plaintiff, North American .Training Group, Inc. (“NATG”). (Docs. 1,12). On December 12, 2014, Global Options filed its three-count Complaint for declaratory judgment against NATG.1 (Doc. 1). On January 6, 2015, NATG answered Global-Options’ Complaint and asserted a twelve-count Counterclaim. (Doc. 12). GlobalOptions now moves to dismiss Counts III through VI and VII, VIII, X, XI, and XII of NATG’s Counterclaim. (Doc. 16). Counts III through VI assert various copyright claims: direct copyright infringement (Count III), contributory copyright infringement (Count IV), vicarious copyright infringement (Count V), and inducing copyright infringement (Count VI). Count VII asserts a claim for misappropriation. Count VIII asserts a claim for accounting. Count X asserts a claim for temporary injunctive relief. Count XI asserts a claim for permanent injunctive relief. Finally, Count XII asserts a Florida common law claim for unjust enrichment. GlobalOptions does not move to dismiss Counts I, II, or IX2 of NATG’s Counterclaim. Count I asserts a claim for breach of the Service Agreement, Count II asserts a claim for breach of the Confidentiality Agreement, and Count IX asserts a claim for common law constructive fraud.

B. Factual Background3

NATG provides insurance fraud and investigative training programs to insurance and investigative personnel. (Doc. 12, Counterclaim ¶ 5). As a result, NATG has developed copyrighted materials and pro[1296]*1296prietary fraud investigative compliance training procedures and courses. (Id. ¶ 6). GlobalOptions is a leading provider of special investigative unit services. (Id. ¶ 7). In June 2009, NATG and GlobalOptions entered into a training agreement which led to a later execution of an addendum in February 2011. (Id. ¶ 11). Subsequently, GlobalOptions ceased contractual payments to NATG due to GlobalOptions’ claim that it no longer provided certain services. (Id. ¶ 12). Due to the relationship between the parties, however, they were able to reach a new agreement which superseded the prior agreement and addendum. (Id.).

In June 2012, the parties entered into a Service Agreement, which became, effective March 17, 2012. (Id. ¶ 13). The Service Agreement provided .for performance standards and a confidentiality agreement by which the parties agreed to abide. (Id. ¶¶ 14-21). NATG contends that GlobalOptions “has pervasively violated NATG’s proprietary rights, and intentionally breached the Service Agreement by circulating without the consent of NATG and without compensation' to NATG, the NATG Materials and proprietary course materials.” (Id. ¶ 22). Specifically, NATG contends that GlobalOptions intentionally violated NATG’s intellectual property rights, including NATG’s copyrights,, and unlawfully duplicated, altered, and disseminated NATG’s copyrighted materials, proprietary fraud investigative compliance training processes and courses (collectively, the “NATG Materials”). (Id. ¶ 23).

II. STANDARD» OF REVIEW

In order to survive a motion to dismiss made pursuant to Rule 12(b)(6), the complaint must “state a claim to relief that is plausible on its face.” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). A claim is plausible on its face when the plaintiff alleges facts that “allow[] the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). Mere legal conclusions or recitation of the elements of a claim are not enough. Twombly, 550 U.S. at 555, 127 S.Ct. 1955. District courts must accept all well-pleaded allegations within the complaint as true. Id. Courts must also view the complaint in the light most favorable to the plaintiff and must resolve any doubts as to the sufficiency of the complaint in the plaintiffs favor. Hunnings v. Texaco, Inc., 29 F.3d 1480, 1483 (11th Cir.1994).

III. DISCUSSION

A. The Copyright Claims

i. Registration

GlobalOptions moves to dismiss NATG’s Copyright Infringement Claims (Claims III through VI) for failure to allege that NATG’s allegedly infringed copyrights were registered. (Doc. 16, pp. 6-7). NATG agrees that it has not alleged registration-in its counterclaim, but'argues that the registration requirement is not a condition precedent to . bringing this suit. (Doc. 26, p. 3).

The Copyright Act provides, in pertinent part, as-follows:

[N]o civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration o'f the copyright claim has been made in accordance with this .title. In any case, however, where the deposit, application, and fee required for [1297]*1297registration have been delivered to the Copyright Office in proper form and registration has been refused, the applicant is entitled to institute a civil action for infringement if notice thereof, with a copy of the complaint, is served on the Register of Copyrights.

17 U.S.C. § 411(a) (2012).

The Eleventh Circuit “adopted the ‘registration’ approach in M.G.B. Homes, Inc. v. Ameron Homes, Inc., 903 F.2d 1486, 1488-89 (11th Cir.1990), viewing the failure to register as a jurisdictional defect.” Kernel Records Oy v. Mosley, 694 F.3d 1294, 1302 n. 8 (11th Cir.2012), cert. denied, — U.S. -, 133 S.Ct. 1810, 185 L.Ed.2d 812 (2013). Twenty years later, the United States Supreme Court in Reed Elsevier, Inc. v. Muchnick, 559 U.S. 154, 163, 130 S.Ct. 1237, 176 L.Ed.2d 18 (2010), conclusively determined that the registration requirement is hot jurisdictional,'i.e., it does not divest a federal court of jurisdiction to hear the case. However; the Supreme Court specifically “decline[d] to address whether § 411(a)’s registration requirement is a -mandatory precondition to suit that ...

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131 F. Supp. 3d 1291, 2015 U.S. Dist. LEXIS 126983, 2015 WL 5474328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/globaloptions-services-inc-v-north-american-training-group-inc-flmd-2015.