RIGHTHAVEN, LLC v. Hoehn

792 F. Supp. 2d 1138, 99 U.S.P.Q. 2d (BNA) 1104, 39 Media L. Rep. (BNA) 1956, 2011 U.S. Dist. LEXIS 65830, 2011 WL 2441020
CourtDistrict Court, D. Nevada
DecidedJune 20, 2011
Docket2:11-cv-50
StatusPublished

This text of 792 F. Supp. 2d 1138 (RIGHTHAVEN, LLC v. Hoehn) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RIGHTHAVEN, LLC v. Hoehn, 792 F. Supp. 2d 1138, 99 U.S.P.Q. 2d (BNA) 1104, 39 Media L. Rep. (BNA) 1956, 2011 U.S. Dist. LEXIS 65830, 2011 WL 2441020 (D. Nev. 2011).

Opinion

ORDER

PHILIP M. PRO, District Judge.

Presently before the Court is Defendant’s Motion to Dismiss for Lack of Subject Matter Jurisdiction (Doc. # 16), filed on April 17, 2011. Plaintiff filed a Response (Doc. # 23), on May 9, 2011. Defendant filed a Reply (Doc. # 26), on May 15, 2011. Also before the Court is Defendant’s Motion for Summary Judgment (Doc. # 8), filed on February 11, 2011. Plaintiff filed a Response (Doc. # 13), on March 7, 2011. Defendant filed a Reply (Doc. # 14), on March 24, 2011. This Court held a hearing on the Motion for Summary Judgment on May 3, 2011. (Mins, of Proceedings (Doc. # 19).)

I. BACKGROUND

This is a copyright infringement action brought by Plaintiff Righthaven LLC (“Righthaven”) against Defendant Wayne Hoehn (“Hoehn”), who is and was at all relevant times a registered user and content contributor to the website <madjacksports.com> (the ‘Website”). (Pl.’s Resp. To Mot. For Summ. J. [“Resp.”] (Doc. # 13).) Hoehn has never been employed by the Website’s owner and operator. (Id.) On or about November 29, 2010, Hoehn displayed an unauthorized reproduction of a copyrighted literary work entitled “Public Employee Pensions. We Can’t Afford Them” (the “Work”) as part of the content contributed by him to the Website. (Id.) In his reproduction, Hoehn attributed the source of the Work to the Las Vegas Review Journal (“LVRJ”). (Compl. (Doc.# 1).) Hoehn avers that he did not post the Work for profit and that there was no mechanism for him to profit by posting the Work on the website. (Def.’s Mot. For Summ. J. [“MSJ”] (Doc. # 8), Hoehn Deck, Ex. A.) Hoehn states he removed the Work from the Website on January 6, 2011. (Id.)

*1142 At the time of the posting, Righthaven was not the owner of the Work, rather the Work was owned by Stephens Media. (Gibson Deck (Doc. # 24), Ex 1.) In January 2010, Righthaven and Stephens Media entered into the Strategic Alliance Agreement (the “SAA”), governing the ongoing relationship between Righthaven and Stephens Media regarding assignment of copyrights originally owned by Stephens Media. (Gibson Deck) Section 3.3 of the SAA governs the rights and responsibilities of Righthaven and Stephens Media with respect to pursuing alleged infringers and states in part:

If Righthaven chooses in the Remediation Option Notice to not pursue an Infringement Action (the “Remediation Declination”), then Righthaven shall reassign the Assigned Copyright to Stephens Media that is the subject of the Remediation Declination.... Notwithstanding any other provision of this Agreement, Stephens Media shall have the right to Notify Righthaven, within five (5) Business Days after receipt of a respective Remediation Option Notice, that Righthaven should not take any Infringement Action with respect to a particular putative infringer as indicated in any Remediation Option Notice (the “Declination Notice”) and upon receipt of a Declination Notice, Righthaven shall not take any Infringement Action with respect to the particular putative infringer set forth in any Declination Notice; provided, however, that Stephens Media shall only send any Declination Notice on a reasonable basis with the grounds of reasonability being that a particular infringer is a charitable organization, is likely without financial resources, is affiliated with Stephens Media directly or indirectly, is a present or likely future valued business relationship of Stephens Media or otherwise would be a Person that, if the subject of an Infringement Action, would result in an adverse result to Stephens Media.

(Gibson Deck, Ex. 2.)

Section 7.2 of the SAA states in part:
Despite any such Copyright Assignment, Stephens Media Shall retain (and is hereby granted by Righthaven) an exclusive license to Exploit the Stephens Media Assigned Copyrights for any lawful purpose whatsoever and Righthaven shall have no right or license to Exploit or participate in the receipt of royalties from the Exploitation of the Stephens Media Assigned Copyrights other than the right to proceeds in association with a Recovery. To the extent that Righthaven’s maintenance of rights to pursue infringers of the Stephens Media Assigned Copyrights in any manner would be deemed to diminish Stephens Media’s right to Exploit the Stephens Media Assigned Copyrights, Righthaven hereby grants an exclusive license to Stephens Media to the greatest extent permitted by law so that Stephens Media shall have unfettered and exclusive ability to Exploit the Stephens Media Assigned Copyrights.

(Id.)

Section 8 of the SAA is titled “Stephens Media’s Right of Reversion.” Section 8 states in part:

Stephens Media shall have the right at any time to terminate, in good faith, any Copyright Assignment (the “Assignment Termination”) and enjoy a right of complete reversion to the ownership of any copyright that is subject of a Copyright Assignment.... In order to effect termination of the [sic] any Copyright Assignment, Stephens Media shall be required to provided Righthaven with thirty (30) days prior written notice. Within thirty (30) days after receipt of *1143 termination of the [sic] any Copyright Assignment, Righthaven shall commence documentation to effect reassignment of the Stephens Media Assigned Copyrights to Stephens Media.

On December 6, 2010, Stephens Media, the original owner of the Work, assigned all rights, title, and interest in and to the Work, including the right to seek redress for all past, present, and future infringements, to Plaintiff Righthaven (the “Assignment”). (Gibson Decl.) The Assignment states in part:

Assignor hereby transfers, vests and assigns the work described in Exhibit A, attached hereto and incorporated herein by this reference (the ‘Work”), to Righthaven, subject to the Assignor’s rights of reversion, all copyrights requisite to have Righthaven recognized as the copyright owner of the Work for purposes of Righthaven being able to claim ownership as well as the right to seek redress for past, present and future infringements of the copyright, both accrued and unaccrued, in and to the Work.

(Gibson Deck, Ex. 1.)

Plaintiff Righthaven brought the present suit against Hoehn on January 11, 2011, based on Hoehn’s posting of the Work on the Website. (Compl. (Doc. # 1).) The suit seeks a permanent injunction prohibiting Hoehn from posting the Work and an award of statutory damages.

On April 17, 2011, Hoehn filed a Motion to Dismiss for lack of subject matter jurisdiction, arguing that Righthaven did not have the requisite standing to bring a copyright infringement suit because it was not the owner of an exclusive right. On May 9, 2011, Stephens Media and Righthaven entered into the Clarification and Amendment to Strategic Alliance Agreement (the “Clarification”). (Gibson Deck, Ex. 3.) The Clarification states that the intent of the parties when they entered into the SAA was “to grant Stephens Media a license to Exploit the Stephens Media Assigned Copyrights for any lawful purpose whatsoever without in any way hindering the right of Righthaven to seek redress for any past, present or future infringements of such copyright.” (Id.)

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Bluebook (online)
792 F. Supp. 2d 1138, 99 U.S.P.Q. 2d (BNA) 1104, 39 Media L. Rep. (BNA) 1956, 2011 U.S. Dist. LEXIS 65830, 2011 WL 2441020, Counsel Stack Legal Research, https://law.counselstack.com/opinion/righthaven-llc-v-hoehn-nvd-2011.