Parziale v. HP, Inc.

CourtDistrict Court, N.D. California
DecidedApril 24, 2020
Docket5:19-cv-05363
StatusUnknown

This text of Parziale v. HP, Inc. (Parziale v. HP, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Parziale v. HP, Inc., (N.D. Cal. 2020).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 SAN JOSE DIVISION 7 JOHN PARZIALE, 8 Case No. 5:19-cv-05363-EJD Plaintiff, 9 ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANT’S 10 MOTION TO DISMISS AND/OR HP, INC, STRIKE Defendant. Re: Dkt. No. 25 g i

13 This putative nation-wide class action suit arises out of Defendant HP Inc.’s (“HP” or

14 || “Defendant”) implementation of a remote firmware update that allegedly incapacitated Plaintiff

3 15 || John Parziale’s (“Plaintiff”) HP printers and thirty-three other models of HP printers by preventing QO 16 || the use of certain non-HP ink cartridges in those printers.

17 On November 13, 2019, Plaintiff filed the First Amended Class Action Complaint (Dkt.

18 || No. 19, “FAC”). HP now moves to dismiss the FAC pursuant to Rules 8(a)(2), 9(b), 12(b)(6), and 19 12(f) of the Federal Rules of Civil Procedure (Dkt. No. 25, “Motion”). The Court took the matter 20 || under submission for decision without oral argument pursuant to Civil Local Rule 7-1(b). For the 21 || reasons below, Defendant’s motion is GRANTED in part and DENIED in part. 22 I. Background 23 On or around September 12, 2017, Plaintiff purchased an HP Officejet Pro 7740 printer 24 || from an Office Depot in Jacksonville, Florida. FAC § 22. On June 6, 2018, Plaintiff purchased 25 || another HP Officejet Pro 7740 printer from Amazon.com. /d. at § 23. When shopping for a 26 || printer, it was important to Plaintiff that the printer be compatible with third-party ink cartridges 27 Case No.: 5:19-cv-05363-EJD 28 |} ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS AND/OR STRIKE

1 and refilled HP ink cartridges because these non-HP cartridges were less expensive than their HP 2 || brand counterparts. /d. at 25-27. Indeed, Plaintiff repeatedly alleges that he would not have 3 || purchased the printers had he known that he would be unable to use non-HP cartridges with the 4 || printer. See, e.g., id. at Jf 27, 33, 58, 100. Plaintiff did not see any representations by HP that he 5 || would only be able to use HP brand cartridges, so Plaintiff bought the HP printers. /d. at □□ 25-27. 6 || The packaging on the printers Plaintiff bought included the statement: “Please use genuine HP ink 7 || cartridges for best results.” Jd. at ¥ 34. 8 Though Plaintiff did not know it at the time of purchase, certain HP printers are configured 9 || to perform automatic updates to the software embedded in the device—known as firmware— 10 || without user intervention. /d. at § 35. This means that HP can remotely update the firmware in its 11 printers without users’ knowledge. /bid. HP’s online support page for the Officejet Pro 7740 (the 12 || “Support Page’) contains a brief description of this remote update ability, which HP calls 13 “dynamic security.’ Jd. at §37. The Support Page states: 14 Reminder: Dynamic security enabled printer. This Firmware 3 15 includes dynamic security measures, which may prevent supplies 16 with non-HP chips or circuitry from working now or in the future.

1g | —————_ 19 ' HP’s motion to dismiss attaches a printout of the Support Page as an exhibit. Samplin Decl., 29 || Dkt. No. 26-1, Ex. A. While the Court generally does not consider materials outside of the 2] complaint on a motion to dismiss, the Court may consider “documents incorporated into the 22 || complaint by reference.” Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322, (2007). 23 || A document may properly be incorporated by reference where a party “refers extensively to the 24 || document.” Khoja v. Orexigen Therapeutics, Inc., 899 F.3d 988, 1002 (9th Cir. 2018), cert. 25 || denied sub nom. Hagan v. Khoja, 139 S. Ct. 2615 (2019) (citation omitted). Because the 26 || allegations in the FAC quote from and rely on the Support Page, the Court finds that the Support 27 || Page was incorporated by reference, and finds it appropriate to consider Exhibit A. Case No.: 5:19-cv-05363-EJD 28 || ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS AND/OR STRIKE

1 Ibid. The Support Page further states: “HP cannot guarantee the quality or reliability of non-HP 2 || cartridges.” Jd. at ¥ 38. 3 On or around April 12, 2019, HP used dynamic security technology to implement a 4 || firmware update that modified the firmware on many models of HP printers, including □□□□□□□□□□□ 5 || printers, without alerting users.” Jd. at 931. The update caused affected printers to cease 6 || functioning with certain third-party and refilled cartridges. /d. at 32. HP printers and 7 || compatible ink cartridges contain chips that allow the printer and the cartridge to communicate 8 || with each other. Jd. at § 74, p. 16° The printer chip contains a master key code and the cartridge 9 || chip contains a base key code that allows the printer to authenticate that the cartridge is 10 || compatible. /bid. The April firmware update changed the communication protocol between 11 printer chips and cartridge chips so that certain varieties of non-HP cartridge chips were no longer 12 || able to communicate with the HP printers. /d. at § 82, p. 18. Because the firmware update 13 || blocked these non-HP cartridge chips, any cartridge with such a chip no longer functioned with an 14 || HP printer. /bid. 3 15 As aresult of the update, Plaintiffs printer ceased working with the refilled cartridges that 16 || were installed in his printers at the time. /d. at { 40. When Plaintiff attempted to print, he 5 17 || received a series of error messages stating that he needed to replace empty cartridges and that S 18 || there was a “cartridge problem.” J/d. at 42-44. He replaced the refilled cartridges with other 19 || third-party cartridges and received another error message directing him to remove and reinstall the 20

22 * Plaintiff alleges that the firmware update affected all HP Officejet Pro 7740 model printers as 23 || well as an extensive list of other printer models (the “Class Printers”). See FAC § 67 for a 24 || complete list of Class Printers. 25 * The FAC’s paragraphs are incorrectly numbered beginning after paragraph 90 on page 19. There 26 || are also two paragraphs numbered 59, and two paragraphs numbered 67. The Court refers to the 27 || paragraph number listed in the FAC with a page number where necessary for clarity. Case No.: 5:19-cv-05363-EJD 28 || ORDER GRANTING IN PART AND DENYING IN PART DEFENDANT’S MOTION TO DISMISS AND/OR STRIKE

1 cartridge to make sure it was correctly installed. /d. at § 45. Plaintiff was not able to use his 2 || printers unless and until he bought HP brand cartridges. /d. at ¢ 32. At the time of the firmware 3 || update, Plaintiff had purchased and was in possession of at least nine refilled cartridges, which no 4 || longer functioned with his printer following the update. /d. at □ 33. As of the date the FAC was 5 filed, Plaintiff's printers still did not work unless they were loaded with original HP cartridges. □□□ 6 || at 83, p. 18. Plaintiff alleges that this limited functionality devalued his printers. /d. at ¥ 32. 7 Plaintiff alleges that HP has engaged in this type of conduct before. /d. at ¥ 84, p. 18. For 8 || example, firmware updates in March 2016 and September 2017 similarly altered the 9 || communication protocol between HP printers and certain non-HP cartridges. /bid. One prior 10 || remote firmware update gave rise to a class action lawsuit filed in this Court involving very 11 similar claims against HP. See San Miguel v. HP Inc., 317 F. Supp. 3d 1075 (N.D. Cal. 2018). In 12 || San Miguel, this Court granted in part and denied in part HP’s motion to dismiss the plaintiffs’ 13 claims. Jd.

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