Lynwood Investments CY Limited v. Konovalov

District Court, N.D. California·Decided April 11, 2023·No. 3:20-cv-03778·Unknown

Opinion

LYNWOOD INVESTMENTS CY Case No. 20-cv-03778-MMC LIMITED, Plaintiff, ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS' v. MOTIONS FOR ATTORNEYS' FEES MAXIM KONOVALOV, et al., Re: Dkt. Nos. 173, 174 Defendants. Before the Court are the following two motions, both filed September 30, 2022: (1) defendants F5, Inc., NGINX., Inc. (BVI), and NGINX Software, Inc.’s (collectively, “F5 Entities”) “Motion for Attorney’s Fees,” and (2) defendants Maxim Konovalov, Igor Sysoev, Andrey Alexeev, Maxim Dounin, Gleb Smirnoff, and Angus Robertson’s (collectively, “Individual Defendants”) “Motion for Attorneys’ Fees.” Plaintiff, Lynwood Investments CY Limited (“Lynwood”),1 has filed opposition, to which defendants have replied. By order filed December 20, 2022, the Court afforded the parties leave to file supplemental briefing, which the parties subsequently filed. (See Am. Order Finding Defs. Entitled To Attorneys’ Fees; Affording Defs. Leave to Suppl. Mot. as to Amount; Setting Briefing Schedule, Dec. 20, 2022, Dkt. No. 184 (“December 20 Order”).) Having read and considered the papers filed in support of and in opposition to the motions, including the parties’ supplemental briefs, the Court rules as follows.2 1 On September 2, 2022, Lynwood informed the Court it had changed its name to Hemma Investments CY Limited. (See Joint Case Mgmt. Statement and Rule 26(f) Rep., Dkt. No. 165.) For purposes of clarity, the Court continues to refer to plaintiff as Lynwood, as it has in all prior orders in the above-titled action. BACKGROUND3 On June 8, 2020, Lynwood filed its initial complaint in the instant action, seeking over $750 million in damages assertedly resulting from an alleged conspiracy, between the F5 Entities and the Individual Defendants, to steal a “popular web server enterprise” from Rambler Internet Holding LLC (“Rambler”), a Russian software company at which the Individual Defendants, with the exception of Robertson, had worked. (See Am. Compl. (“AC”) ¶¶ 1, 19, Dkt. No. 141.) According to Lynwood, Rambler assigned its intellectual property rights to Lynwood in 2015. (See AC ¶ 457.) By two orders filed, respectively, on March 25, 2021, and March 30, 2021, the Honorable Lucy H. Koh, to whom the above-titled action previously was assigned, granted defendants’ motions to dismiss the initial complaint, after which this Court, by its August 16 Order, granted defendants’ motion to dismiss the AC. By their instant motion, the F5 Entities seek, pursuant to the Copyright Act, see 17 U.S.C. § 505, attorneys’ fees in the amount of $837,602.15, comprising $705,711.05 for defending against Lynwood’s direct copyright infringement claim, and $131,891.10 for defending against four claims they describe as “related claims.” (See F5 Entities’ Mot. for Attorney’s Fees; Mem. of P. & A. (“F5 Entities’ Mot.”) at 17:2, 18:11-14, Dkt. No. 173); see also § 505 (providing court may “award a reasonable attorney’s fee to the prevailing party” in action under Copyright Act). Similarly, the Individual Defendants, by their motion, seek, pursuant to § 505, attorneys’ fees in the amount of $769,299.10, comprising $263,300.35 for defending against the direct copyright infringement claim, and $505,998.75 for defending against six “related claims.”4 (See Indiv. Defs.’ Mot. at supplemental replies. (See December 20 Order at 15:16-17.) 3 The factual and procedural background of this action is set forth in greater detail in prior orders. (See Order Granting Mot. to Dismiss, Aug. 16, 2022, Dkt. No. 162 (“August 16 Order”); see also December 20 Order.) 4 Initially, in their motion, the Individual Defendants sought $507,066.75 for defending against the six purportedly related claims. (See Mot. for Attorneys’ Fees by 2:18-19, 2:26-27.) An analysis under § 505 “entail[s] two separate determinations: first, deciding whether an award of attorney's fees is appropriate and, second, calculating the amount of the award.” See Stern v. Does, 2011 WL 13124449, at *2 (C.D. Cal. May 4, 2011), aff'd, 512 F. App'x 701 (9th Cir. 2013) (internal quotation and citation omitted) (emphasis in original). In the instant action, the Court ruled on the first question in its December 20 Order, finding each of the defendants is entitled to an award of such fees. Absent submission of contemporaneous time records, however, the Court was unable to determine the appropriate amount of fees to be awarded. In light thereof, the Court afforded defendants leave to submit those records, and all parties were afforded leave to file supplemental briefing. The parties having done so, the Court now turns to the second question in the § 505 analysis, namely, calculating the amount of fees to be awarded.5 Lynwood makes two challenges to the defendants’ respective requested amounts of fees. First, Lynwood argues “there is no basis to extend Section 505 fees to non- copyright claims.” (See Pl.’s Mem. of P. & A. in Opp’n to Defs.’ Mots. for Attorneys’ Fees (“Pl.’s Opp’n”) at 22:11-12, Dkt. No. 178.) Second, Lynwood argues the fees sought are “facially unreasonable and excessive.” (See id. at 24:1.) The Court considers below

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