ITN Flix, LLC v. Univision Television Group, Inc.

259 F. Supp. 3d 1300
CourtDistrict Court, D. Utah
DecidedMay 5, 2017
DocketCase No. 2:15-cv-00736-DN-DBP
StatusPublished

This text of 259 F. Supp. 3d 1300 (ITN Flix, LLC v. Univision Television Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Utah primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ITN Flix, LLC v. Univision Television Group, Inc., 259 F. Supp. 3d 1300 (D. Utah 2017).

Opinion

MEMORANDUM DECISION AND ORDER DENYING MOTION TO DISMISS PLAINTIFF’S SECOND AMENDED COMPLAINT

David Nuffer, United States District Judge

This memorandum decision and order addresses whether a copyright infringement claim should be dismissed against media broadcasters who broadcasted a motion picture over their networks. The allegations show that the broadcasters did not create the allegedly infringing work which was broadcasted and did not broadcast the copyrighted work. The copyright infringement claim need not be dismissed. Broadcasters who distribute an infringing work may be held -liable for infringing the distribution right of the copyrighted work even if they did not participate in the creation of the infringing work.

Defendants Univision Television Group, Inc.; Univision Salt Lake-City, LLC; Uni-vision Communications, Inc.; and El Rey Network, LLC (collectively “Broadcaster Defendants”) move to dismiss the Second Amended Complaint1 under Rule 12(b)(6) (“Motion”).2 Plaintiff ITN Flix, LLC (“ITN”) opposes the Motion (“Opposition”).3 The Broadcaster Defendants filed a reply in support of the Motion (“Reply”).4 For the reasons below, the Motion is DENIED.

BACKGROUND

In October 2015, ITN and Mr. Gil Medina filed a complaint for copyright infringement against Univision Holdings, Inc.; Univision Salt Lake City, LLC; Univision Communications, Inc.; and El Rey Network, LLC (“Original Defendants” which are comprised of all the Broadcaster Defendants 5 except Univision Television Group, Inc.).6

Four months later, in February 2016, ITN and Mr. Medina filed an amended complaint under Rule 15(a) which also asserted a single cause of action against the Original Defendants for copyright infringement.7 The amended complaint alleged, [1303]*1303among other things, that ITN held a valid copyright to a motion picture originally titled Jack’s Law, later titled Vengeance. The amended complaint alleged that Mr. Robert Rodriguez, the founder and chairman of Defendant El Rey Network, obtained access to Vengeance in 2005, and that he later made a film entitled Machete that infringed ITN’s copyright for Vengeance. But the amended complaint alleged only three similarities between Vengeance and Machete, and failed to allege sufficient facts establishing that the Original Defendants infringed ITN’s copyright.8

The order dismissing the first amended complaint held that the copyright infringement claim could not stand because there were insufficient allegations of access and insufficient allegations of similarity between Vengeance and Machete.9 But the order also explained that “there is a significant question whether Rodriguez’s alleged access in 2005 provides an adequate link ... to El Rey Network or any of the other Broadcasters” for purposes of copyright infringement.10

The order further explained that the amended complaint alleged that Vengeance was re-shot and re-edited after it was provided to Mr. Rodriguez in 2005. Thus, third party access could not be inferred because Vengeance evolved into a nonidentical work from the version provided to Rodriguez.11 There was no allegation in the first amended complaint that the copy of Vengeance provided to Mr. Rodriguez in 2005 was the same as the final version.

The first amended complaint was dismissed and leave was granted to file a second amended complaint by November 21, 2016.12

On November 8, 2016, ITN filed the Second Amended Complaint currently under review. The Second Amended Complaint removes Gil Medina as a plaintiff; adds Univision Television Group, Inc. as. a defendant; and, like the original complaint and the first amended complaint, asserts a single cause of action for copyright infringement.13

The Second Amended Complaint adds significant allegations that make it meaningfully different from the amended complaint that was dismissed. Among other things, the Second Amended Complaint includes over fifty alleged similarities between Vengeance — the copyrighted work— and Machete — the allegedly infringing work.14 The Second Amended Complaint also alleges that:

• “Rodriguez acknowledged ... that he copied, and used material from Vengeance and offered to pay ... for his use of Vengeance”15 and
• even though “minor edits” were made to Vengeance when it was re-shot and re-edited, “the material given to Rodriguez was identical to the finalized Vengeance in all material aspects.”16

The Broadcaster Defendants move to dismiss the Second Amended Complaint, arguing that the Second Amended Complaint “fails to rectify the pleading deficiencies addressed in the Court’s November 2,2016 Order ....”17 The Broadcaster [1304]*1304Defendants are incorrect.

MOTION TO DISMISS STANDARD

Dismissal under Rule 12(b)(6) is appropriate when the complaint, standing alone, is legally insufficient to state a claim, for which relief, may be granted.18 When considering a motion to dismiss for failure to state a claim, the thrust of all well-pleaded facts is presumed, but conclusory allegations need not be considered.19 A court is not bound to accept the complaint’s legal conclusions and opinions, whether or not they are couched as facts.20 “A 12(b)(6) motion should not be granted unless it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.”21

FACTUAL ALLEGATIONS22

The Second Amended Complaint makes the following factual allegations:

' In or about 2004, Mr. Gil Medina met actor Danny Trejo.23 Mr. Trejo had never been cast as a lead actor in a scripted feature film or film franchise.24 In 2005, Mr. Medina approached Mr. Trejo about serving as “the lead actor and anchor of a vigilante action feature film franchise centered on his distinctive look, style, inherent and authentic toughness, charisma, and other special traits.”25 ITN, an independent production company of which Mr. Medina is a principal and managing member, would provide creative talent, financing, entertainment business acumen, and other resources.26 Mr. Trejo agreed to participate.27

Vengeance.

“By the fall of 2005, [ITN] and Trejo had produced a rough cut of a vigilante action feature film with Trejo in the starring role. The film had the working title Jack’s Law, later changed to Vengeance ....”28 “On or about November 4, 2005,” ITN and Mr. Trejo delivered “a copy of the script and a DVD of ... Vengeance to Rodriguez.” Mr. Rodriguez is the founder and chairman óf Defendant El Rey Network.29

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Bluebook (online)
259 F. Supp. 3d 1300, Counsel Stack Legal Research, https://law.counselstack.com/opinion/itn-flix-llc-v-univision-television-group-inc-utd-2017.