Multimedia Games, Inc. v. WLGC Acquisition Corp.

214 F. Supp. 2d 1131, 2001 U.S. Dist. LEXIS 24391, 2001 WL 1923146
District Court, N.D. Oklahoma·Decided April 18, 2001·No. 4:99-cv-00723·Published·Cited by 6 cases

Opinion

ORDER

H. DALE COOK, Senior District Judge.

Before the Court is the motion for summary judgment filed by defendants, Ron Harris (“Harris”), Nelson Johnson (“Johnson”), and the Miami Tribe of Oklahoma Business Development Authority (“MBDA”) (collectively referred to as “de *1133 fendants”), pursuant to Rules 19 and 56 of the Federal Rules of Civil Procedure. Plaintiff Multimedia Games (“Multimedia”) has sued for alleged copyright infringement, misappropriation of trade secrets, unfair and deceptive trade practices, breach of contract, conversion, breach of fiduciary duty, and unfair competition. Federal jurisdiction was established under 28 U.S.C. §§ 1381, 1338, and 1367. Multimedia seeks injunctive, declaratory, and monetary relief against all defendants as well as those in active concert or privity with defendants. Defendants contend that there exists no genuine issue of material facts and that they are entitled to summary judgment as a matter of law.

On February 18, 2000, defendants filed their motion for summary judgment. Plaintiff filed its response on June 7, 2000, and defendants filed their reply on June 19, 2000. On November 16, 2000, this Court struck the previous scheduling order setting forth pretrial deadlines in order to properly consider the motion for summary judgment. After consideration of the briefs, exhibits, arguments of the parties and applicable law, the Court finds and concludes as follows:

Undisputed Statement of Facts

1. Multimedia is a Texas Corporation having its principal place of business in Tulsa, Oklahoma. Its business concerns designing, developing, marketing, maintaining, and operating various computer based gaming equipment and software.

2. On March 15, 1999, Worldlink Gaming Corporation merged with and into WLGC Acquisition Corporation.

3. MBDA is a corporation formed under the laws of the Miami Tribe of Oklahoma and is the surviving entity following a corporate merger with WLGC Acquisition Corp. (a/k/a Worldlink Gaming Corp.) (“Worldlink”).

4. Harris is a resident of Tulsa and until September 1996, was a sales manager of the Electronic Games Division of Multimedia. Harris later became a principal of Worldlink and now serves as principle of MBDA.

5. Johnson is a resident of Tulsa and until September 1996, was the President of MegaBingo, a wholly owned subsidiary of Multimedia. Johnson was later affiliated with and employed by Worldlink, and now serves as a principal of MBDA.

6. Johnson and Harris had access to a computer and certain company information when they were employees of Multimedia.

7. Upon leaving Multimedia, Harris, Johnson, and other former Multimedia employees started Worldlink, an Oklahoma corporation incorporated on September 18, 1996.

Allegations of the Parties

Multimedia alleges that all defendants have infringed and continue to infringe Multimedia’s copyright related to the subject work by producing, distributing, and placing upon the market products which contain direct copies of Multimedia’s copyright subject work. Multimedia further contends that Harris and Johnson owed it a fiduciary duty and violated that duty by converting the proprietary and confidential information of Multimedia for their own benefit. Furthermore, Multimedia claims that Harris and Johnson have and continues to wrongfully exercise dominion over Multimedia’s property without permission from and to the detriment of Multimedia. This alleged conversion and misappropriation of property is claimed by Multimedia to constitute breaches of implied contractual terms existing between defendants Harris and Johnson and plaintiff Multimedia. Additionally, Multimedia contends that Harris and Johnson’s alleged misappropriation and unauthorized use of Mul *1134 timedia’s trade secrets are in violation of the Oklahoma Trade Secrets Act. Finally, Multimedia argues that all defendants’ actions constitute unfair competition and deceptive trade practices in violation of the Oklahoma Deceptive Trade Practices Act and the common law of Oklahoma.

Defendants claim that the MBDA is immune from the lawsuit under the doctrine of tribal sovereign immunity; and thus, defendants contend that this Court lacks jurisdiction over the MBDA, as it is a sovereign tribal entity. Furthermore, defendants claim that the MBDA is a necessary and indispensable party to the lawsuit under Rule 19 of the Federal Rules of Civil Procedure (“Rule 19”). Defendants further contend that because the MBDA is a necessary and indispensable party which cannot be sued because of the tribal sovereign immunity, the case cannot proceed against any defendant without the MBDA. Additionally, defendants argue that any alleged infringement or misappropriated property was: 1) not properly registered, 2) misused by plaintiff, 3) not copyrightable material, 4) abandoned, or 5) within the public domain.

Standard of Review

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Multimedia Games, Inc. v. WLGC Acquisition Corp., 214 F. Supp. 2d 1131, 2001 U.S. Dist. LEXIS 24391, 2001 WL 1923146 (N.D. Okla. 2001).

214 F. Supp. 2d 1131 (Multimedia Games, Inc. v. WLGC Acquisition Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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