Hartmann v. Apple, Inc.

CourtDistrict Court, S.D. New York
DecidedSeptember 20, 2021
Docket1:20-cv-06049
StatusUnknown

This text of Hartmann v. Apple, Inc. (Hartmann v. Apple, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hartmann v. Apple, Inc., (S.D.N.Y. 2021).

Opinion

USDC SDNY DOCUMENT UNITED STATES DISTRICT COURT PE RONTCATLY FILED □ DATE FILED: 9/20/2021

RALF HARTMANN, Plaintiff, 1:20-cv-6049-GHW -against- MEMORANDUM : OPINION AND ORDER APPLE, INC., : Defendant.

GREGORY H. WOODS, United States District Judge: The popular film Axstin Powers: International Man of Mystery (“Austin Powers’) lies at the center of this case. Plaintiff Ralf Hartmann alleges that Apple, Inc. violated his copyright and international distribution rights to Austin Powers, as well as his copyright to the film Affer the Rain, by reproducing and distributing the films on the iTunes Store in the United States and over 175 countries around the world. Apple moves to dismiss Hartmann’s claims. Hartmann sufficiently alleges that he owns registered copyrights in the films and that Apple infringed those copyrights. However, because the complaint fails to plausibly allege that Apple knew or had reason to know that users of the iTunes Store were violating Hartmann’s rights, Hartmann’s contributory infringement claims are dismissed. Finally, because Hartmann does not identify a specific foreign law that Apple allegedly violated, Hartmann’s foreign infringement claim is dismissed. For those, and the other reasons set forth below, Apple’s motion to dismiss is GRANTED in part and DENIED in part.

I. BACKGROUND’ A. Facts Hartmann, a citizen of Germany, alleges that he owns various rights to the films A/fer the Rain and Austin Powers. Sec. Am. Compl., Dkt. No. 44, J 3, 12-13. Attached to Hartmann’s second amended complaint (“SAC”) are two records from the United States Copyright Office that are relevant to the ownership of the copyrights. Exhibit A is a copyright registration certificate for the film Affer the Rain identifying the copyright claimants as “Third Orbit Productions, Inc., & Erste & Zweite KC Medien, AG.” Dkt. No. 44-1. Exhibit E includes two documents, the first records a copyright transfer for Austin Powers from New Line Productions, Inc. to Capella International, Inc., and the second records a copyright transfer for Austin Powers from Capella International to Erste Beteilisung KC Medien AG & Co. KG (“Erste’’). Dkt. No. 44-5. Citing these exhibits, Hartmann alleges that Erste, Cappella International, and Zweite Beteiligung KC Medien AG & Co. KG (“Zweite”), originally held rights in After the Rain, and that Erste and Cappella International also held rights in_Austin Powers. Sec. Am. Compl. ff] 14-16. On May 27, 2007, Erste and Zweite entered into a written agreement assigning their right, title, and interest in the films to Capella Films. Id. fj 17-18. On January 1, 2008, Capella Films and Cappella International entered into written agreements with Hartmann, assigning Hartmann their right, title, and interest in the films. Id. §] 19-20. Pursuant to the alleged chain of title, Hartmann contends that he is the owner of the copyright in After the Rain and the owner of the international copyright and distribution rights in Awstin Powers. Id. 9] 21-22. Hartmann alleges that starting in July 2017, Apple reproduced and distributed After the Rain

Unless otherwise noted, the facts are taken from the second amended complaint and the attached exhibits and are accepted as true for the purposes of this motion. See Chambers v. Time Warner, Inc., 282 F.3d 147, 152 (2d Cir. 2002). However, “the tenet that a court must accept as true all of the allegations contained in a complaint is inapplicable to legal conclusions.” Ashcroft v. Igbal, 556 U.S. 662, 678 (2009).

and Austin Powers via the iTunes Store in both the United States and in various foreign countries. Id. 4] 38-41, 44-47. The films were rented or purchased “hundreds of times” by users of the iTunes Store. Id. J] 42, 48. Hartmann did not give Apple authorization to reproduce or distribute the films. Id. 48, 50. Accordingly, Hartmann alleges that Apple violated the exclusive rights to reproduce and distribute the films that is afforded to Hartmann under 17 U.S.C. § 106 as the copyright owner of the films. Id. {J 23, 38, 50, 59. B. Procedural History Ralf Hartmann initiated this action on August 3, 2020. Dkt. No. 1. Following a conference regarding a proposed motion to dismiss the initial complaint, Hartmann filed an amended complaint on October 30, 2020. Dkt. No. 28. Apple moved to dismiss the amended complaint on December 18, 2020. Dkt. No. 40. On January 15, 2021, Hartmann filed a second amended complaint. Dkt. No. 44. Because Hartmann filed a new amended complaint, the Court denied Apple’s motion to dismiss the first amended complaint as moot. Dkt. No. 45. The SAC pleads that Apple committed four counts of copyright infringement. First, Hartmann asserts that Apple directly infringed his copyrights to Affer the Rain and Austin Powers by reproducing and distributing the films without authorization. Sec. Am. Compl. §] 60-66. Second, Hartmann contends that Apple’s direct infringement allowed foreign users of the iTunes Store to further infringe on Hartmann’s copyrights, thus making Apple contributorily lable for the third- party infringement. Id 9] 110-18. Third, Hartmann asserts that Apple committed contributory copyright infringement by knowingly facilitating copyright infringement by users of the iTunes Store who streamed or downloaded the films. Id 4 108-23. Finally, Hartmann alleges that Apple directly infringed the copyright laws of various foreign countries. Id §ff] 79-83. Apple filed a motion to dismiss the SAC and a memorandum of law in support of the motion. Dkt. Nos. 48-49. Hartmann filed a memorandum of law in opposition. Dkt. No. 53.

Apple’s reply was filed shortly thereafter. Dkt. No. 55. II. LEGAL STANDARD “To survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.”’ Ashcroft v. Igbal, 556 U.S. 662, 678 (2009) (quoting Be// Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. (citing Twombly, 550 US. at 556). It is not enough for a plaintiff to allege facts that are consistent with lability; the complaint must “nudge[ ]” claims “across the line from conceivable to plausible.” Twombly, 550 U.S. at 570. “To survive dismissal, the plaintiff must provide the grounds upon which his claim rests through factual allegations sufficient ‘to raise a right to relief above the speculative level.”” ATSI Comme'ns, Inc. v. Shaar Fund, Ltd., 493 F.3d 87, 98 (2d Cir. 2007) (quoting Twombly, 550 US. at 555). Determining whether a complaint states a plausible claim is a “context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Igba/, 556 US. at 679. The court must accept all facts alleged in the complaint as true and draw all reasonable inferences in the plaintiffs favor. Burch v. Pioneer Credit Recovery, Inc., 551 F.3d 122, 124 (2d Cir. 2008) (per curiam). However, [t]hreadbare recitals of the elements of a cause of action, supported by mere conclusory statements, do not suffice. A complaint must therefore contain more than ‘naked assertion|s] devoid of further factual enhancement.’ Pleadings that contain ‘no more than conclusions . .

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Hartmann v. Apple, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartmann-v-apple-inc-nysd-2021.