L ALD LLC v. Gray

District Court, S.D. California·Decided August 4, 2025·No. 3:24-cv-02195·Unknown

Opinion

L ALD LLC, a Florida Limited Liability Case No.: 24-CV-02195-GPC-MSB Company, ORDER GRANTING IN PART AND Plaintiff, DENYING IN PART MOTION TO v. DISMISS

REBEKAH M. GRAY, an individual; [ECF No. 33] 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 12(b)(6) motion to dismiss by Defendants Rebekah M. Gray, Hachette Book Group, and Merlin Publishing LLC, d/b/a Merlin’s Pen Publishing (collectively, “Defendants”). ECF No. 33 (“Mot.” or “Motion”). Based upon a review of the briefs, the supporting documentation, the applicable law, and for the foregoing reasons, the Court hereby DENIES IN PART and GRANTS IN PART Defendants’ motion to dismiss. This is a copyright infringement controversy involving several works of young adult (“YA”) fantasy fiction. Under the pseudonym “Liz Ald,” sisters Lesley and Lindsey Aldrich write YA novels. FAC ¶ 29. They have authored a three-novel series, the first two of which are at issue here: The Boy with the Beautiful Name and The Boy with the Beautiful Soul (“Book 1” and “Book 2,” respectively; “the Works,” collectively). Id. ¶¶ 30, 37. Together, they own the Plaintiff L ALD LLC. Id. ¶ 15. According to Plaintiff, a portion of Book 1 was first posted on the website Wattpad in January 2022. Id. ¶ 64. Wattpad is a “leading web-novel platform,” where authors can publish their content; it has over 650 million authored works on its site. Id. ¶¶ 39, 41. Plaintiff posted multiple chapters of Book 1 each month on Wattpad, with the entire book posted to the website by July 2022. Id. ¶ 64. A portion of Book 2 was first posted to Wattpad in August 2022, and the entire book was posted on Wattpad by March 2023. Id. Plaintiff alleges that Book 1 “enjoyed immediate commercial success and notoriety” on Wattpad, that it was ranked #1 in the Fiction category for at least 12 weeks, and ultimately gathered more than 630,000 views. Id. ¶ 2-3. Plaintiff also alleges that Book 2 “was met with similar commercial success and notoriety, reaching over 175,000 views upon initial completion.” Id. ¶ 4. On February 5, 2024, Lesley Aldrich obtained registered copyrights for both books and then transferred the interests in these copyrights to Plaintiff. Id. ¶¶ 31-36. Defendant Rebekah Gray is an author who writes YA fiction under the pen name RM Gray. Id. ¶ 16. On July 10, 2023, Defendant Gray registered the copyright in Nightweaver as an unpublished literary work completed in 2022. See ECF No. 3-11 at 7; RJN at 2 (Item No. 1). Gray published Nightweaver in October 2023. See ECF No. 9-2 at 1; RJN at 2 (Item No. 4). At some point in time, Plaintiff concluded that there were similarities between Plaintiff’s Works and Nightweaver, and on March 20, 2024, Plaintiff sent a cease-and- desist letter to Defendant Gray and Gatekeeper Press, LLC, asserting copyright infringement. FAC ¶ 133. Gray’s counsel responded to the letter, stating that Nightweaver was written before any publication or authoring of Liz Ald’s “Beautiful Boy” series, so Defendant Gray could not have copied any element of it. Id. As supporting evidence, Defendant Gray’s counsel sent Plaintiff copies of email exchanges between Gray and her editor in June 2022 in which Gray allegedly provided the complete manuscript. Id. ¶ 135. Gray’s counsel also sent a Word document that was purportedly the manuscript for Nightweaver. Plaintiff alleges that it discovered “peculiarities” from the properties of the manuscript, namely that “the 100,000-word document showed that in its lifetime that the document had only two (2) revisions and a total editing time of two (2) minutes.” Id. ¶ 137. Plaintiff also alleges that the document contained a Create Date of June 12, 2022, which pre-dated the complete publication of Book 1 by a few weeks. Id. ¶ 6. From this, Plaintiff alleges that Defendant Gray had manipulated the Word document manuscript to make it seem like its creation pre-dated Plaintiff’s Works. Id. ¶ 138. Defendant Gray provided an expert declaration with purported authentic files from Gray’s computer, but Plaintiff alleges that these files are not the same as the actual email attachments. Id. ¶ 146-47. According to Plaintiff, Defendant Gray has refused to provide the native files for Plaintiff’s review because this would show the Court that the documents previously provided to the Court were “fabricated.” Id. ¶ 149-50. 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.” ECF No. 3. The Court denied the motion for preliminary injunction on January 28, 2025. ECF No. 19 (“Order Denying Prelim. Inj.”). Defendants filed a motion to dismiss the complaint, ECF No. 22, and then Plaintiff filed an amended complaint on March 10, 2025, ECF No. 28. Defendants filed a motion to dismiss the amended complaint. ECF No. 33 (“Motion” or “Mot.”). Plaintiff filed an opposition (“Opposition” or “Opp.”) and Defendants filed a reply (“Reply”), ECF Nos. 35, 36. A motion to dismiss under Rule 12(b)(6) tests the sufficiency of a complaint and whether it has “state[d] a claim upon which relief can be granted.” Fed. R. Civ. P. 12(b)(6). Dismissal under Rule 12(b)(6) is appropriate where the complaint lacks a cognizable legal theory or sufficient facts to support a cognizable legal theory. See Balistreri v. Pacifica Police Dep’t., 901 F.2d 696, 699 (9th Cir. 1990); Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 534 (9th Cir. 1984). A complaint may survive a motion to dismiss only if, taking all well-pleaded factual allegations as true, it contains factual matter that “state a claim to relief that is plausible on its face.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007)). A claim is facially plausible when the factual allegations allow “the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. Where a motion to dismiss is granted, “leave to amend should be granted ‘unless the court determines that the allegation of other facts consistent with the challenged pleading could not possibly cure the deficiency.’” DeSoto v. Yellow Freight Sys., Inc., 957 F.2d 655, 658 (9th Cir. 1992) (quoting Schreiber Distrib. Co. v. Serv-Well Furniture Co., 806 F.2d 1393, 1401 (9th Cir. 1986)). Generally, on a motion to dismiss, courts will limit their review to the contents of the complaint and may only consider extrinsic evidence that is properly presented as part of the complaint. See Lee v. City of L.A., 250 F.3d 668, 688-89 (9th Cir. 2001). However, under Federal Rule of Evidence 201, a district court may take notice of facts not subject to reasonable dispute that are capable of accurate and ready determination by resort to sources whose accuracy cannot reasonably be questioned. Fed. R. Evid. 201(b). Courts can also incorporate by reference certain documents that are not fou

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