Moonbug Entertainment Limited v. Babybus (Fujian) Network Technology Co., Ltd

District Court, N.D. California·Decided May 15, 2024·No. 3:21-cv-06536·Unknown

Opinion

MOONBUG ENTERTAINMENT Case No. 21-cv-06536-EMC LIMITED, et al., Plaintiffs, ORDER DENYING DEFENDANTS' v. JUDGMENT AS A MATTER OF LAW BABYBUS (FUJIAN) NETWORK TECHNOLOGY CO., LTD, et al., Docket No. 651, 652 Defendants.

This is a copyright infringement case tried by a jury which rendered a verdict in the Plaintiffs favor. Plaintiffs Moonbug Entertainment Limited and Treasure Studio, Inc. (collectively, “Moonbug”) hold copyrights in the CoComelon franchise, including their works on the CoComelon Nursery Rhymes YouTube Channel. Defendants Babbu Co., Ltd. and BabyBus (Fujian) Network Technology Co., Ltd. (“BabyBus Tech.”) (collectively, “BabyBus”) offered a competing YouTube channel under the “Super JoJo” brand. Moonbug alleged copyright infringement by BabyBus’s Super JoJo videos and misrepresentation. After a 10 day trial, the jury found BabyBus liable for copyright infringement and misrepresentation and awarded a total of $17,718,114.00 in actual damages and lost profits. Docket No. 579 at 6 (Jury Verdict). BabyBus filed two post-trial motions on all claims under Federal Rules of Civil Procedure Rule 50(b)—for judgment as a matter of law, and Rule 59(a)—for a new trial. For the following reasons, the Court denies both motions. A. Notice of Copyright Infringement In 2021, Moonbug sent notice of infringement to BabyBus and YouTube, alleging that their JJ character was being infringed by BabyBus’s Super JoJo character (“JoJo”). Docket No. 383-2. Since 2019, BabyBus operated the Super JoJo Nursey Rhymes YouTube channel that featured the infringing Super JoJo character. Trial Exhibit (TE) 116. The JJ character features prominently on Moonbug’s CoComelon YouTube channel. Moonbug submitted DMCA takedown notices to YouTube requesting removal of the infringing JoJo videos. Id. In response, BabyBus submitted counternotices to YouTube stating that their videos were noninfringing, which led to the reinstatement of the SuperJoJo channel and various videos. Moonbug then filed a lawsuit against Defendant for copyright infringement of its CoComelon franchise, claiming that the whole Super JoJo series was infringing, including the central JoJo character, his family, art, thumbnails, and at least six videos and thirteen SuperJoJo channels. Docket No. 307 at 1, 8 (Supp. FAC). Moonbug accused BabyBus of infringing the following: the JJ character, the JJ family characters, the animal characters, and 39 specific copyrighted works. Jury Verdict at 2-6. B. Pre-Trial Order on Whether the JJ Character is Copyrightable Prior to trial, the Court determined whether the JJ character, the main character in CoComelon’s animated children’s show, was copyrightable subject matter. The Court held that JJ was, reasoning that “although some of JJ’s traits (e.g. name “JJ”) standing alone, may not be unique,] when combined with all of JJ’s other physical and conceptual traits, the combination of those elements “crosses the binary threshold of copyrightability.” Docket No. 242 at 15-16 (Order on Summary Judgment). The jury was therefore instructed that the JJ character was copyrightable—in other words, entitled to copyright protection. See Docket No. 562 at 10 (Jury Instruction). The Court did not determine whether the family characters and the animal characters were entitled to copyright protection, nor whether SuperJoJo infringed on Moonbug’s copyrights. Those issues remained for trial. C. Jury Trial 1. Factual Copying In the ten day trial, the jury saw a significant amount of evidence that BabyBus copied CoComelon’s JJ character and YouTube videos to create BabyBus’ JoJo character and its SuperJoJo YouTube series of videos. There was both direct and circumstantial evidence that BabyBus had access to CoComelon characters and works and closely considered them. Mr. Yan explained that BabyBus allowed employees to reference other company’s images and other content for inspiration. Id. at 492. BabyBus witnesses admitted that they looked at CoComelon’s JJ when developing JoJo. TT 731-34, Docket No. 544-1. BabyBus designer Mr. Xiaohui Chen even conceded that he used JJ when designing JoJo. TT 1323-24. In fact, BabyBus presented evidence indicating that their master plan for the Super JoJo videos referenced CoComelon works, and there was an instruction that CoComelons’ JJ character should be the “focus of the visuals.” TT 590-91. Development documents showed that the team made SuperJoJo episodes which were nearly identical or similar to CoComelon. TE 3, 5, 9, 23. BabyBus asserted that its characters were original, but admitted to “some” plagiarism with respect to the frame-by-frame shots:

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Moonbug Entertainment Limited v. Babybus (Fujian) Network Technology Co., Ltd, (N.D. Cal. 2024).

Moonbug Entertainment Limited v. Babybus (Fujian) Network Technology Co., Ltd (Moonbug Entertainment Limited v. Babybus (Fujian) Network Technology Co., Ltd) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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