Novalogic, Inc. v. Activision Blizzard

41 F. Supp. 3d 885, 2013 WL 8845232, 2013 U.S. Dist. LEXIS 188298
CourtDistrict Court, C.D. California
DecidedJune 18, 2013
DocketCase No. CV 12-4011-JFW (SHx)
StatusPublished
Cited by11 cases

This text of 41 F. Supp. 3d 885 (Novalogic, Inc. v. Activision Blizzard) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Novalogic, Inc. v. Activision Blizzard, 41 F. Supp. 3d 885, 2013 WL 8845232, 2013 U.S. Dist. LEXIS 188298 (C.D. Cal. 2013).

Opinion

ORDER GRANTING MOTION FOR PARTIAL SUMMARY JUDGMENT OF DEFENDANTS ACTIVISION BLIZZARD, INC., ACTIVISION PUBLISHING, INC., AND PENGUIN GROUP (USA), INC. [filed 3/14/13; Docket No. 34]

JOHN F. WALTER, District Judge.

On March 14, 2013, Defendants Activision Blizzard, Inc., Activision Publishing, Inc., and Penguin Group (USA), Inc. filed a Motion for Partial Summary Judgment (“Motion”). On May 23, 2013, Plaintiff Novalogic, Inc. filed its Opposition. On June 3, 2013, Activision Blizzard, Inc., Activision Publishing, Inc., and Penguin Group (USA), Inc. filed a Reply.' Pursuant to Rule 78 of the Federal Rules of Civil Procedure and Local Rule 7-15, the Court found the matter appropriate for submission on the papers without oral argument. The matter was, therefore, removed from the Court’s June 17, 2013 hearing calendar and the parties were given advance notice. After considering the moving, opposing, and reply papers, and the arguments therein, the Court rules as follows:

I. Factual and Procedural Background

A. Procedural History

On May 10, 2012, Plaintiff Novalogic, Inc. (“Plaintiff’) filed this action against [889]*889Activision Blizzard, Inc. (“Activision Blizzard”), Activision Publishing, Inc. (“Activision Publishing”), Penguin Group (USA), Inc. (“Penguin”), Microsoft Corporation, and Voyetra Turtle Beach Inc. (“Turtle Beach”). In its Complaint, Plaintiff alleges four trademark claims: (1) infringement of Plaintiffs registered trademarks (15 U.S.C. § 1114); (2) false designation of origin (15 U.S.C. § 1125(a)); (3) contributory trademark infringement; and (4) state law common law infringement claim.

The heart of Plaintiffs Complaint is that Activision1 and its licensees have used Plaintiffs registered trademarks in Activision’s hugely successful “Call of Duty— Modern Warfare 3” video game (“MW3”) and related products, such as Microsoft Corporation’s XBox 360, Turtle Beach’s headphones, and DK/BradyGAMES’ (“BradyGames”)2 guidebook entitled “BradyGAMES” Signature Series Guide for MW3 (“MW3 Guide”).

In response to Plaintiffs Complaint, Activision and Penguin3 have filed a narrowly-tailored Motion seeking summary judgment on all of Plaintiffs claims that arise out of the MW3 video game and the MW3 Guide on the grounds that the First Amendment bars Plaintiffs claims. Simply stated, this Motion asks the Court to determine whether the First Amendment allows Activision and Penguin to the use the phrase “Delta Force” and the MW3 Delta Force Logo4 within MW3 and the MW3 Guide.

B. Plaintiffs Business and Trademarks

Plaintiff is a developer and global publisher of computer and video games for consoles such as Play Station and XBox. In 1998, Plaintiff developed its first version of Delta Force, a military first person shooter game. Since 1998, Plaintiff has published at least ten versions of Delta Force, and grossed over $150 million in worldwide sales. Delta Force was the first game to incorporate many innovations that are now considered standard for first person shooter games, including the use of military livery in large, open environments and in large-scale internet multi-player engagements. Plaintiff continues to develop new versions of the Delta Force series.

In December 1999, Plaintiff registered a word mark for the text “Delta Force” with the United States Patent & Trademark Office (“PTO”), U.S. Registration No. 2,302,869. In April 2003, Plaintiff registered a design mark for its logo with the PTO, U.S. Registration No. 2,704,298.5 Plaintiffs logo consists of a delta symbol with a vertical lightning rod superimposed onto a dagger.6 Plaintiff owns the Regis[890]*890tered Trademarks, which are in full force and effect, and they have become incontestable pursuant to 15 U.S.C. § 1065.7

C. Call of Duty — Modern Warfare 3 Video Game

Activision is a very successful video game publisher, engaged in the business of developing, financing, producing, marketing and distributing high quality computer software games. Activision is the publisher of the extremely successful “Call of Duty” series of video games. The “Call of Duty” games are military action fantasy games in which a player assumes control of a military soldier and fights against a computer-controlled or human-controlled opponent across a variety of computer generated battlefields to determine the outcome of the game.

The original “Call of Duty” was released in 2003 and was followed by “Call of Duty 2” in 2005 and “Call of Duty 3” in 2006. In 2007, Activision released the first of its “Call of Duty — Modern Warfare” series of games. By 2011, Activision had released the current version of MW3 which is at issue in this action. The “Call of Duty— Modern Warfare” games take place in the near future and place players in the role of modern day soldiers involved in high risk combat operations throughout the world.

In 2011, MW3 was released for XBox 360, Play Station and Wii consoles and for Windows personal computers. In the first sixteen days of sales, Activision grossed approximately $1 billion from the sales of MW3.

MW3 is a fully cinematic experience featuring story, dialog, music, effects and all of the other elements found in a big budget entertainment franchise. MW3 is a very realistic and convincing, albeit violent, portrayal of modern combat operations.8 The weapons depicted in the MW3 video are extremely realistic and the locations around the world, such as New York and Paris, are readily identifiable by the use of landmarks, such as New York Stock Exchange and the Eiffel Tower. In addition, the names and logos of actual combat forces are used, such as the U.S. Army Rangers and British Special Air Service.

1. MW3 Single-Player Mode

The single-player mode of MW3 is a story-based military adventure that takes place in the year 2016. In this hypothetical near-future, the United States is at war with Russia, and World War III is imminent. Meanwhile, a terrorist group, led by villain Vladimir Makorov, has obtained access to Russian nuclear weapons and threatens to destroy the Western world. MW3 tells the story of a group of elite international soldiers tasked with a variety of high-risk missions to save the world and stop Makorov, such as securing a radio tower in New York, rescuing the U.S. Vice President in Germany, infiltrating a hotel in Prague, stopping a kidnaping plot in [891]*891Siberia, and ultimately capturing Makorov in the Arabian Peninsula.

The single-player mode is divided into discrete missions, or levels, and the player’s perspective shifts between a few main characters from mission to mission..

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Bluebook (online)
41 F. Supp. 3d 885, 2013 WL 8845232, 2013 U.S. Dist. LEXIS 188298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/novalogic-inc-v-activision-blizzard-cacd-2013.