Live Face on Web, LLC v. Control Group Media Co.

150 F. Supp. 3d 489, 2015 U.S. Dist. LEXIS 166063, 2015 WL 8535008
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 10, 2015
DocketNo. 15-CV-01306
StatusPublished
Cited by3 cases

This text of 150 F. Supp. 3d 489 (Live Face on Web, LLC v. Control Group Media Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Live Face on Web, LLC v. Control Group Media Co., 150 F. Supp. 3d 489, 2015 U.S. Dist. LEXIS 166063, 2015 WL 8535008 (E.D. Pa. 2015).

Opinion

MEMORANDUM AND ORDER

JOYNER, District Judge

Before the Court are Defendants’ Motion to Dismiss (Doc. No, 19), Plaintiff’s Response in Opposition thereto (Doc,. No. 20), Defendants’ Reply Brief in Support of Defendants’ Motion to Dismiss (Doc. No. 22) and Plaintiffs Siir-Reply in Support of its Response in Opposition to the Motion to Dismiss (Doc. No. 26). For the reasons that follow, the Motion to Dismiss is GRANTED in part and DENIED in part.

I. Background

Plaintiff Live Face on Web, LLC (“LFOW”) is the developer and owner 'of “live person”' software and a copyright-protected video technology program and video presentation, (the “LFOW package”) which allows the display of a “walking ánd talking” personal host who introduces a website to an online visitor and who can then be configured to explain a company’s products and/or services and' to direct the visitor’s attention to a particular product or aspect'of the website. (Am. Compl., Vs 11-13). Defendants The Control Group Media Company, Inc., (“TCG”) Instant Check Mate, LLC (“ICM-LLC”) and Instant Checkmate, Inc. (“ICI”) Own and operate web sites that enable searches of peoples’ criminal records, address history, and other public records, including, among others, www.instantcheckmate.com, www.united statesbackgroundchecks.com and www.us peoplerecords.com. (Am.' Compl., ¶ 7). Specifically, each LFOW package consists of three parts, all of' which are copyright protected in some forth' or fashion: (1) the video presentation of the spokesperson; (2) the LFOW software; and (3) the LFOW video player. (Am. Compl., ¶ s 16-20).

In 2011, ICM-LLC and TCG purchased some thirteen customized versions of the LFOW Package for “marketing, advertising and sales purposes” and in so doing became bound to the terms and conditions of LFOW’s End User License Agreement (“EULA”). (Am. Compl., ¶ s 22-25). The EULA provided, in relevant part, that without obtaining express permission and paying additional fees, an LFOW software package could be used on only one URL and could1 not be assigned, sub-licensed or

[494]*494transferred by a licensee. (Am. Compl., ¶3 28-30).

According to the Amended Complaint, TCG was pleased with the performance of LFOW’s technology, purportedly acknowledging that the subject software packages increased its client conversation rates and sales by 12%. (Am. Compl., ¶27). In contravention of the terms of the EULA, however, Plaintiff alleges that “the Defendants and their affiliates created, used and/or shut down numerous entities under the name ‘Instant Checkmate’ and ‘Control Group’ or similar names for their own business and legal purposes, and transferred assets (including rights . to the LFOW Subject Software Packages). . .without obtaining the necessary consent or authorization from LFOW under the EULAs and in violation of LFOW’s copyrights and applicable law.” (Am. Compl., ¶ 34). The Amended Complaint further avers that “Defendants unlawfully . displayed all or some of the LFOW Subject Software Packages on two or more URLs in violation of the EULA and applicable law, and without authorization from, or payment of applicable fees to, LFOW.” (Am. Compl., ¶37).

On November 28, 2014, Plaintiffs legal counsel sent a letter to TCG asserting that it had recently discovered that TCG had breached the End User License Agreement for the LFOW Package and infringed on Live Face’s intellectual property rights by improperly using its Software Product Ño. 100004468 on multiple URLs including (i) instantcheckmate.com/register and (ii) uspeoplerecords.com/register. (Am. Compl., Ex. G). Live Face also averred that Defendants violated the EULA by entering into a civil settlement with the Federal Trade Commission (“FTC”) following its investigation of Instant Checkmate for illegally preparing “consumer reports.” See, U.S. v. Instant Checkmate, Inc., No. 14-CV-0675 (S.D.Cal. Mar. 28, 2014). In this letter,2 Plaintiff demanded that Defendants immediately and permanently cease and desist from' continuing the unauthorized use and distribution of the LFOW products and produce a cache of information to enable Plaintiff to ascertain the full extent and nature of the damages which it had suffered as a result of Defendants’ purportedly unauthorized activities, .such as a listing of,all URLs on which the LFOW package had been used or made accessible, the names, IP addresses and other identifying information about the website visitors who viewed the LFOW products and a detailed summary of all revenues and profits generated by the TCG Parties and their affiliates as a result of the allegedly unauthorized use of the package(s). (Am. Compl., Exhibit “G”).

Defendants responded through counsel to the-November 28, 2014 letter via correspondence dated December 8, 2014 denying the allegations of improper use and EULA violations. Apparently the parties were unable to resolvé this dispute without filing suit and, on March 13, 2015, Live Face filed a complaint alleging breach of contract, direct copyright' infringement, vicarious copyright infringement, contributory copyright infringement, inducement of copyright infringement, and unjust enrichment. In response to a timely filed motion to dismiss, Plaintiff filed an Amended Complaint on June 2, 2015, dropping its claim for unjust enrichment. By .way of the motion now before us, Defendants likewise [495]*495seek dismissal of the Amended Complaint in its entirety.

II. Standard of Review

Generally speaking, '“[t]o survive a motion to dismiss, a complaint must contain sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.’ ” Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)); Ethypharm S.A. Fr. v. Abbott Labs., 707 F.3d 223, 231 n. 14 (3d Cir.2013) (quoting Sheridan v. NGK Metals Corp., 609 F.3d 239, 262, n. 27 (3d Cir.2010)). Indeed, it has been said that the touchstone of the pleading standard is plausibility and that a claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is hable for the misconduct alleged. Iqbal, supra; Bistrian v. Levi, 696 F.3d 352, 365 (3d. Cir.2012). Thus, “[t]hreadbare” recitations of the elements of a claim supported only by “conclusory statements” will not suffice. Iqbal, supra. Rather, a plaintiff must allege some facts to raise the allegation above the level of mere speculation. Great Western Mining & Mineral Co. v. Fox Rothschild LLP, 615 F.3d 159, 176 (3d Cir.2010) (citing Twombly, 550 U.S. at 555, 127 S.Ct. 1955).

“Once a claim has been stated adequately, it may be supported by showing any set of facts consistent with the allegations in the complaint.” Twombly, 550 U.S. at 563, 127 S.Ct. 1955. To resolve a 12(b)(6) motion, a court may properly look at public records, including judicial proceedings, in addition to the -allegations in the complaint and the exhibits attached to the complaint. Schmidt v. Skolas, 770 F.3d 241, 249 (3d Cir.2014); S.

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Bluebook (online)
150 F. Supp. 3d 489, 2015 U.S. Dist. LEXIS 166063, 2015 WL 8535008, Counsel Stack Legal Research, https://law.counselstack.com/opinion/live-face-on-web-llc-v-control-group-media-co-paed-2015.