L ALD LLC v. Gray

District Court, S.D. California·Decided January 28, 2025·No. 3:24-cv-02195·Unknown

Opinion

L ALD LLC, a Florida Limited Liability Case No.: 24-CV-02195-GPC-MSB Company, ORDER DENYING MOTION FOR Plaintiff, PRELIMINARY INJUNCTION v. [ECF No. 3] REBEKAH M. GRAY, an individual; MERLIN PUBLISHING LLC, a Texas Limited Liability Company d/b/a MERLIN’S PEN PUBLISHING; GATEKEEPER PRESS, a Florida Limited Liability Company; INGRAM INDUSTRIES INC., a Tennessee corporation d/b/a INGRAM CONTENT GROUP and/or LIGHTNING SOURCE; HATCHETTE BOOK GROUP, a New York corporation; and DOES 1-50, inclusive, Defendants. Before the Court is a motion for preliminary injunction filed by Plaintiff L ALD LLC (“Plaintiff”) against Defendants Rebekah M. Gray, Merlin Publishing LLC, d/b/a Merlin’s Pen Publishing; Gatekeeper Press; Ingram Industries Inc., d/b/a Ingram Content Group and/or Lightning Source; Hatchette Book Group, collectively “Defendants.” ECF No. 3 (“Mot.”). The motion has been fully briefed. Defendants filed an opposition on December 13, 2024. ECF No. 9. Plaintiff filed a reply on December 23, 2024. ECF No. 17. The Court finds the matter suitable for determination on the papers without a hearing. Based upon a review of the briefs, the supporting documentation, the applicable law, and for the foregoing reasons, the Court hereby DENIES Plaintiff’s motion for preliminary injunction. This is a copyright infringement controversy involving several works of young adult fiction. Without making any findings as to the truth of the allegations, the Court details the parties’ claimed factual events below. Rebekah Gray is an author who writes YA fiction under the pen name RM Gray. She began writing Nightweaver in 2020 and self-published it in October 2023. Response at 3. It was recently picked up by Hatchette, one of the largest publishing companies in the United States, and is scheduled to be published in a deluxe limited edition in March 2025, having been available for preorder since July 2024. Id. at 3, 4. Nightweaver is meant to be the first novel of a three-book series written by Gray and published by Hatchette, and Gray is under contract to deliver to Hatchette, by January 2025, the second book, which is then expected to be published nine months after the deluxe limited edition of Nightweaver. Id. According to Gray, she began writing Nightweaver in January 2020, and completed a substantial draft of the novel by October 2020 – more than one year before Plaintiff claims it wrote the opening chapters of its first book. Gray Decl. ¶¶ 12, 14. This October 2020 version already contained many of the allegedly infringing elements. Response at 4. Gray then sent a complete manuscript to her editor on June 13, 2022, before Plaintiff’s first book was finished and before any part of the second book had been written. See Compl. ¶ 38. This June 2022 manuscript contained all of the allegedly infringing elements. Response at 4. Gray maintains that throughout this process, before she received a cease-and-desist letter, she had never heard of the Aldrich sisters, their pseudonym “Liz Ald,” or any of their books. Gray Decl. ¶¶ 27-30. Under the pseudonym “Liz Ald,” sisters Lesley and Lindsey Aldrich write young adult (“YA”) novels. They have authored a three-novel series, the first two of which are at issue here: The Boy with the Beautiful Name (“Book 1”) and The Boy with the Beautiful Soul (“Book 2”). Mot. at 2. According to Plaintiff, a portion of Book 1 was first posted on the website Wattpad on January 8, 2022. Compl. ¶¶ 18, 38. Wattpad is an “interactive web-novel platform,” where authors can publish their content. Mot. at 3. Plaintiff then posted multiple chapters each month on Wattpad, with the entire book posted to the website by July 2022. Compl. ¶ 38. A portion of Book 2 was first posted to Wattpad on August 5, 2022, and the entire book was posted on Wattpad by March 2023. Compl. ¶ 38. On February 5, 2024, Lesley Aldrich obtained registered copyrights for both books and then transferred the interests in these copyrights to L ALD LLC, the entity that she owns with her sister. Compl. ¶ 22. At some point in time, Lesley Aldrich states that she noticed similarities between Nightweaver and Book 1 and Book 2, including plot, character, and setting similarities. Mot. at 4-5. On March 20, 2024, then-counsel for Plaintiff sent a cease-and-desist letter to Gray and Gatekeeper Press, LLC, among others, asserting copyright infringement. Mot. at 7. This letter was sent five months after Nightweaver was first published. Gray’s counsel responded to the letter, stating that Plaintiff’s allegations were “without legal and evidentiary support” and that Gray would continue to sell and distribute Nightweaver. Aldrich Decl., Ex. 9 at 3-4. On April 10, 2024, Gray’s counsel forwarded to Plaintiff the June 2022 email in which Gray submitted a complete manuscript of Nightweaver to her editor. Declaration of Alyssa M. LaCourse (“LaCourse Decl.”). Plaintiff’s then-counsel acknowledged recipient, but then neither Plaintiff nor counsel communicated with Gray again. Id. ¶ 6. After reviewing the provided email attachment and Word document that Gray’s counsel had sent over, Lesley and Lindsey Aldrich allege that they discovered peculiarities from the metadata of the manuscript. Mot. at 7. Lesley Aldrich asserts that the properties of the Word document revealed: “(1) its timed stamped creation time occurred after the email to which it was attached to was sent; and (2) this 100,000-word document showed that in its lifetime the document had only 2 revisions and a total editing time of 2 minutes.” Id. From this, Lesley and Lindsey Aldrich believed that Gray had manipulated the Word document manuscript to make it appear like its creation pre- dated Plaintiff’s works. Id. On November 25, 2024, Plaintiff moved for preliminary injunction to enjoin Defendants “from offering for sale on any medium the novel titled Nightweaver by RM Gray.” This motion is before the Court now. “A preliminary injunction is an extraordinary remedy never awarded as of right.” Winter v. Natural Resources Def. Council, 555 U.S. 7, 24 (2008) (citation omitted). Courts “must balance the competing claims of injury and must consider the effect on each party of the granting or withholding of the requested relief.” Id. (citation omitted). As such, the “grant of a preliminary injunction is a matter committed to the discretion of the trial judge[.]” Evans v. Shoshone–Bannock Land Use Policy Comm'n, 736 F.3d 1298, 1307 (9th Cir. 2013) (citation omitted). “In exercising their sound discretion,” district courts “should pay particular regard for the public consequences in employing the extraordinary remedy of injunction.” Weinberger v. Romero–Barcelo, 456 U.S. 305, 312 (1982). District courts exercise this discretion according to a four-factor test rooted in well- established principles of equity. eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388, 391 (2006). The moving party must show: (1) a likelihood of success on the merits; (2) a likelihood of irreparable harm to the moving party in the absence of preliminary relief; (3) that the balance of equities tips in the moving party's favor; and (4) that an injunction is in the public interest. Winter, 555 U.S. at 20. Under the Ninth Circuit's “sliding scale” approach, “the elements of the preliminary injunction test are balanced, so that a stronger showing of one element may offset a weaker showing of another.” Pimentel v. Dreyfus, 670 F.3d 1096, 1105 (9th Cir. 2012) (citing All. for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir. 2011)). That being so, all four elements must be satisfied. hiQ Labs, Inc. v.

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