Jacobs v. The Journal Publishing Company

District Court, D. New Mexico·Decided May 17, 2022·No. 1:21-cv-00690·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF NEW MEXICO ____________________

MICHAEL JACOBS and RUBY HANDLER JACOBS,

Plaintiffs,

v. Case No. 1:21-cv-00690-MV-SCY

THE JOURNAL PUBLISHING COMPANY d/b/a/ THE ALBUQUERQUE JOURNAL, WILLIAM P. LANG, NICHOLE PEREZ, JAMES THOMPSON, ELISE KAPLAN, KAREN MOSES, and DOES 1 THROUGH 20, INDIVIDUALLY OR JOINTLY AND SEVERALLY,

Defendants.

PROPOSED FINDINGS AND RECOMMENDED DISPOSITION

THIS MATTER comes before the Court on: (i) Plaintiffs’ Motion for Copyright Impoundment and Temporary Restraining Order or Preliminary Injunction (Doc. 2); and (ii) Defendants’ Motion to Dismiss for Failure to State a Claim (Doc. 30). Plaintiffs are proceeding pro se. For the reasons discussed below, I recommend that the Court DENY Plaintiffs’ motion for a preliminary injunction and GRANT Defendants’ motion to dismiss. BACKGROUND After Plaintiffs’ indictment for white collar crimes, the Albuquerque Journal published an online article (the “Jacobs article”) about the events. Doc. 1 ¶¶ 22-23. Plaintiffs allege that the material in the article was defamatory and placed them in a false light. Id. ¶ 23. Included in this material is a photograph (the “Cannes photograph”) that depicts Plaintiffs in front of two yachts. Id. ¶ 27. Plaintiffs claim that this copyrighted photograph was “stolen from a frame in their home” after Defendants Nichole Perez and James Thompson trespassed onto Plaintiffs’ property. Id. Other newspapers and internet sources such as the Singapore Straights Times and the Sri Lanka Royal Turf Club Facebook site then used the Cannes photograph. Id. ¶¶ 30-31. Plaintiffs filed suit against the Journal Publishing Company, doing business as the Albuquerque Journal, as well as newspaper employees William P. Lang, Nichole Perez, James Thompson, Elise Kaplan, Karen Moses, and several John Does. Plaintiffs allege the following

against all defendants unless otherwise noted: Count 1: Copyright Infringement Per Se Count 2: Contributory Copyright Infringement Count 3: Copyright Management Infringement Count 4: Plagiarism Count 5: Trespass Per Se (against only Defendants Perez and Thompson) Count 6: Trespass of Chattel Per Se Count 7: Conversion Per Se Count 8: Defamation Per Se Count 9: Invasion of Privacy, Right to Publicity and False Light Per Se Count 10: Negligence Per Se Count 11: Negligent Infliction of Emotional Distress

Plaintiffs also filed for a temporary restraining order or preliminary injunction to remove the Jacobs article from the internet and take other steps to prevent the ongoing distribution of the Cannes photograph. Doc. 2. After adopting my proposed findings and recommended disposition (“PFRD”) regarding the temporary restraining order (Doc. 8), Judge Martha Vazquez denied the motion for a temporary restraining order and deferred ruling on the preliminary injunction. Doc. 43. Meanwhile, Defendants filed a motion to dismiss for failure to state a claim (Doc. 30). All motions are fully briefed and ready for decision. DISCUSSION I. Preliminary Injunction A preliminary injunction is a court order to “preserve the relative positions of the parties until a trial on the merits can be held.” Univ. of Texas v. Camenisch, 451 U.S. 390, 395 (1981). The proponent must demonstrate a likelihood of success on the merits, a likelihood of irreparable harm without the injunction, a balance of equities favoring their side, and a public interest in the injunction. Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20 (2008). Irreparable harm is the “single most important prerequisite for the issuance of a preliminary injunction.” First W. Cap. Mgmt. Co. v. Malamed, 874 F.3d 1136, 1141 (10th Cir. 2017). It requires a showing of “significant risk” of “harm that cannot be compensated after the

fact by money damages.” Fish v. Kobach, 840 F.3d 710, 751 (10th Cir. 2016). A preliminary injunction is only necessary if the harm is “likely to occur before the district court rules on the merits.” State v. U.S. Env’t Prot. Agency, 989 F.3d 874, 884 (10th Cir. 2021).1 Plaintiffs seek a preliminary injunction ordering the Defendant Journal and their agents to (i) immediately remove the Jacobs article in question from all its Internet websites including Facebook and Newspapers.com; (ii) to inform all publications that have purchased or received images either stolen or photographed during the trespass, that the Journal had neither copyright nor right to promulgate such images, and to request out of professional courtesy that these images be immediately removed, (iii) to maintain and protect all financial and distribution records pertaining to the Cannes photograph and other unauthorized photographs; (iv) halt any and all activities going forward involving Plaintiff Jacobs’ Cannes photograph and all unauthorized

1 Pursuant to an amendment in 2020, the Lanham Act governing trademark infringement grants a rebuttable presumption of irreparable harm upon a finding of likelihood of success on the merits in preliminary injunction cases. 15 U.S.C. § 1116(a). However, before 2020, the statutory language did not include this presumption. See Trial Lawyers Coll. v. Gerry Spence Trial Lawyers Coll. at Thunderhead Ranch, 23 F.4th 1262, 1270 (10th Cir. 2022). The Tenth Circuit’s language seems to imply that the relevant timing for application of this amendment is when the district court rules—that is, since the Court is ruling on the preliminary injunction issue after the 2020 amendment, the amendment and its presumption apply. See id. This contrasts with the more conventional approach of applying the statute in effect at the time the relevant conduct took place—here, publication of the 2016 article containing the Cannes photograph. See, e.g., Landgraf v. USI Film Prods., 511 U.S. 244, 265-66 (1994). Because Defendants have rebutted any presumption of irreparable harm that might apply, resolution of this issue makes no difference to the outcome of the matter presently before the Court. See Mountain Mike’s Pizza, LLC v. SV Adventures, Inc., No. 2:21-cv-02387, 2021 WL 6136178, at *3-4 (E.D. Cal. Dec. 29, 2021) (presumption rebutted when no evidence beyond speculation that defendants would continue to use protected marks in future); Massimo Motor Sports LLC v. Shandong Odes Indus. Co., Civil Action No. 3:21-CV-02180-X, 2021 WL 6135455, at *2 (N.D. Tex. Dec. 28, 2021) (presumption rebutted based on delay in seeking emergency relief). photographs; and (v) to provide the Court and Plaintiffs with documentary evidence that all of the above has been accomplished.

Doc. 2 ¶ 27. To begin, Plaintiffs argue that they will suffer irreparable injury in the absence of injunctive relief because a Google search of their names links to the Jacobs article and because they have already suffered reputational damage affecting their personal and employment relationships. Id. ¶¶ 20-21. They also refer to the harm of ongoing copyright violations. Doc. 37 ¶¶ 78-80. The previous PFRD (Doc. 8) and Judge Vazquez’s order adopting it (Doc. 43) dealt with the motion for a temporary restraining order, which involves consideration of the same factors, and their findings demonstrating a lack of immediate, irreparable harm inform my reasoning here. Defendants argue, and I agree, that Plaintiffs’ assertions of harm are largely monetary or retrospective in nature. See Doc. 29 at 10-11.

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