Huffman v. Activision Publishing, Inc.

District Court, E.D. Texas·Decided June 8, 2021·No. 2:19-cv-00050·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF TEXAS MARSHALL DIVISION. § BOOKER T. HUFFMAN, § Plaintiff, § v. § § Case No. 2:19-cv-00050-RWS-RSP ACTIVISION PUBLISHING, INC., § ACTIVISION BLIZZARD, INC., MAJOR § LEAGUE GAMING CORP., and § TREYARCH CORPORATION § Defendants. §

MEMORANDUM ORDER Before the Court is the Motion to Strike Plaintiff’s Jury Demand (“Motion”), filed by Defendants Activision Publishing, Inc., Activision Blizzard, Inc., Major League Gaming Corp., and Treyarch Corporation (collectively, the “Defendants”). Dkt. No. 135. Defendants move the Court to strike Plaintiff Booker T. Huffman’s (“Plaintiff” or “Huffman”) jury demand under the theory that the remedies sought by the Plaintiff are purely equitable, rather than legal. Id. at 31. The Motion is DENIED.

I. BACKGROUND The Court has discussed the relevant background facts in the above-captioned matter in its most recent Report and Recommendation. See generally Dkt. No. 151, Background. There is no need to repeat those details here. It is worth noting that the Plaintiff did not rebut Defendants’ assertion that the only remedy it seeks for the alleged copyright infringement is in the form of infringer’s profits, not actual or statutory damages. Dkt. No. 149 at 2. Additionally, Plaintiff did

1 Citations are to the document numbers and page numbers assigned through ECF. not rebut that it seeks only statutory damages for its cause of action under the Digital Millennium Copyright Act (“DMCA”). Dkt. No. 149 at 2.

A. Defendants’ Move to Strike Plaintiff’s Jury Demand Plaintiff asserts two causes of action against the Defendants: (1) copyright infringement (“Count I”) and (2) violation of 17 U.S.C. § 1202(b) (“Count II”). Dkt. No. 135 at 3. Defendants argue “[t]here is no statutory or constitutional right to a jury trial for Plaintiff’s” Count I remedy (i.e. infringer’s profits). Id. at 6. Defendants further argue “the statute permitting a plaintiff to recover infringer’s profits on an infringement claim, 17 U.S.C. § 504(b), does not specify any right to a jury trial.” Id. Defendants rely on the analysis provided in Fair Isaac Corp. v. Fed. Ins. Co., 408 F. Supp. 3d 1019, 1024-25 (D. Minn. 2019) to support their argument that there is no statutory right to a jury trial. Defendants also argue there is no constitutional right to a jury trial for the

“infringer’s profits” remedy. Dkt. No. 135 at 6. Defendants draw this conclusion, as it relates to Count I, from a footnote in Petrella v. MGM, 572 U.S. 663, 668 n.1 (2014). Dkt. No. 135 at 7 (“[T]he United States Supreme Court already has concluded that recovery of profits under § 504(b) is an equitable remedy.”). The Petrella footnote states: As infringement remedies, the Copyright Act provides for injunctions, §502, impoundment and disposition of infringing articles, §503, damages and profits, §504, costs and attorney’s fees, §505. Like other restitutional remedies, recovery of profits “is not easily characterized as legal or equitable,” for it is an “amalgamation of rights and remedies drawn from both systems.” Restatement (Third) of Restitution and Unjust Enrichment § 4, Comment b, p. 28 (2010). Given the “protean character” of the profits-recovery remedy, see id., Comment c, at 30, we regard as appropriate its treatment as “equitable” in this case.

Petrella, 572 U.S. at 668 n.1. The Defendants urge this Court to interpret this footnote, as two other district courts have done, as an express determination that infringer’s profits under 504(b) are “purely equitable” in nature. Dkt. No. 135 at 8; see Fair Isaac, 408 F. Supp. 3d at 1019; see also Navarro v. P&G Co., No. 1:17-cv-406-DRC, 2021 U.S. Dist. LEXIS 59169, *1–2 (S.D. Ohio Mar. 29, 2021). As for Count II, the Defendants assert that Congress expressly pronounced § 1203 as an equitable remedy. They contend “[t]he text of [17 U.S.C.] § 1203 [] plainly provides that any such

award of statutory damages is for the Court to determine, as a ‘Power[] of the court’ under subsection (b).” Dkt. No. 135 at 10. The Defendants also asserts there is no implicit constitutional right to a jury because the DMCA has “no comparator [to any cause of action] in late-18th-century England.” Id. at 11. Defendants submits “this type of action and associated remedy was entirely unknown to England and the United States until the DMCA was enacted in 1998.” Id. B. Plaintiff’s Response and Arguments to Defendants’ Motion As to Count I, Plaintiff contends there is a constitutional right to a jury trial.2 Plaintiff

responds that “[t]he Fifth Circuit decided [the infringer’s profits] issue against Defendants over fifty years ago.” Dkt. No. 144 at 7; Swofford v. B & W, Inc., 336 F.2d 406 (5th Cir. 1964), cert. denied, 379 U.S. 962 (1965). Plaintiff argues that Swofford long ago settled this very issue. Dkt. No. 144 at 7 (“[Swofford] rejected the defendant’s argument that the plaintiffs’ claim was equitable because they requested an accounting and was not a ‘demand for fixed money damages in the legal sense.’ Following Dairy Queen v. Wood, the court held that there was a legal issue in the request for an accounting.” (internal citation omitted). Plaintiff criticizes the case law cited by the Defendants as “out-of-circuit” and “contrary” to Fifth Circuit precedent. Id. at 9. Plaintiff states that “[i]n asking this Court to follow these out

2 Plaintiff dedicates most of their brief to address Defendants’ assertion that there is no constitutional right to a jury trial. Plaintiff fails to directly address whether there is a statutory right to a jury trial. of circuit opinions, Defendants invite the Court to use a back-door device to overrule binding Fifth Circuit precedent.” Id. As to Count II, Huffman cites Fifth Circuit precedent to argue that claims for statutory damages arising from the DMCA can be tried before a jury. See id. at 17 (citing Energy Intelligence

Grp., Inc. v. Kayne Anderson Capital Advisors, L.P., 948 F.3d 261 (5th Cir. 2020)). Plaintiff contends that Energy Intelligence Grp. “explained that the DMCA was meant to add to traditional copyright protections” and merely strengthened traditional copyright protections. Id.

II. LEGAL STANDARDS “In an action where a single claim is presented and a single remedy demanded, the action can rationally be classified as one which historically would have been either legal or equitable.” Swofford, 336 F.2d 406 at 409. Whether Plaintiff’s jury demand should be stricken, depends on whether the Plaintiff has “a statutory or constitutional right to a jury trial, and, if it did, the nature and extent of the right.”

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Huffman v. Activision Publishing, Inc., (E.D. Tex. 2021).

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