Rogozinski v. Reddit, Inc.

District Court, N.D. California·Decided July 11, 2023·No. 3:23-cv-00686·Unknown

Opinion

JAIME ROGOZINSKI, Case No. 23-cv-00686-MMC

Plaintiff, ORDER GRANTING DEFENDANT’S MOTION TO DISMISS; AFFORDING v. PLAINTIFF LEAVE TO AMEND

REDDIT, INC., Re: Dkt. No. 28 Defendant.

Before the Court is defendant Reddit, Inc.’s (“Reddit”) “Motion,” filed April 10, 2023, “to Dismiss Complaint.” Plaintiff Jaime Rogozinski (“Rogozinski”) has filed opposition, to which Reddit has replied. Having read and considered the papers filed in support of and in opposition to the motion, the Court rules as follows.1 BACKGROUND2 “Reddit is a social media platform where millions of people around the world post, vote, and comment in communities organized around their interests. (See Compl. ¶ 19 (internal quotation and citation omitted).) “Reddit is comprised of users and moderators.” (See id.) Users “can post, comment, vote, discuss, learn, debate, support, and connect with people.” (See id. (citation omitted).) Moderators, in addition to those actions, also “volunteer their time to help guide and create Reddit’s many communities,” which are called “subreddits.” (See id. (citation omitted).) On January 31, 2012, Rogozinski, “under the username ‘jartek,’” created the 1 By order filed June 16, 2023, the Court took the matter under submission. “r/WallStreetBets” subreddit, a “forum where people share stock and other financial advice” and on which Rogozinski served as its first moderator. (See Compl. ¶¶ 1, 20.) By early 2020, the r/WallStreetBets subreddit “had grown to more than 1 million subscribers, earning recognition from the financial press.” (See id. ¶¶ 1-2.) At the end of January 2020, Rogozinski published a book, WallStreetBets: How Boomers Made the World’s Biggest Casino for Millennials, and posted, on the “side bar” of the r/WallStreetBets subreddit, “a link to purchase his book on Amazon.” (See id. ¶ 33.) Thereafter, in early March 2020, Rogozinski “announced a WALLSTREETBETS-branded e-sports competition” on the subreddit. (See id. ¶ 34.) On March 24, 2020, Rogozinski filed an application with the United States Patent and Trademark Office (“USPTO”) to register the mark WALLSTREETBETS for use “in conjunction with online and print publications in the fields of trading and finance, clothing items and providing an online forum for financial and trading information.” (See Compl. ¶ 35.) Two weeks later, on April 7, 2020, Reddit “sent a notification to [Rogozinski] that his account had been placed on a seven-day suspension for ‘attempting to monetize a community.’” (See id. ¶ 36.) It also stated that he was “no longer permitted to moderate communities on reddit” with any account. (See id.) Subsequently, on May 11, 2020, Reddit filed its own application with the USPTO to register the mark WALLSTREETBETS. (See id. ¶ 41.) In addition, Reddit “initiated legal action at the USPTO’s Trademark Trial and Appeal Board to block [Rogozinski] from asserting ownership of WALLSTREETBETS.” (See id. ¶ 56.) On January 12, 2022, Rogozinski filed an application to register the mark WSB, “which is shorthand for WALLSTREETBETS.” (See Compl. ¶ 56.) Reddit did not oppose that registration, which, on June 7, 2022, the USPTO issued as U.S. Trademark Registration No. 6754487. (See id.) As of 2023, Rogozinski has “made more than sixty media appearances to discuss WALLSTREETBETS,” during which appearances “media consistently referred to [him] as more than a dozen events . . . throughout the United States and around the world” (see id.) and “sold the rights to his life story to a major production company that is going to ‘to dramatize the story of his role in the WallStreetBets saga’” (see id. ¶ 60). According to Rogozinski, after Reddit banned him, the content on the r/WallStreetBets subreddit became “offensive,” “racially inflammatory,” and “at various times included swastikas” and “hate speech.” (See id. ¶ 64.) Based on the above, Rogozinski asserts the following claims for relief: (1) “a declaratory judgment that he, and not Reddit, is the owner of the WALLSTREETBETS trademark” (Count I); (2) “infringement of WALLSTREETBETS trademark” in violation of Lanham Act § 43(a), 15 U.S.C. § 1125(a) (Count II); (3) “infringement of registered WSB trademark” in violation of Lanham Act § 32, 15 U.S.C. § 1114 (Count III); (4) “trademark dilution by tarnishment” in violation of Lanham Act § 43(c), 15 U.S.C. § 1125(c) (Count IV); (5) “violation of right of publicity” (Count V); (6) “breach of contract” (Count VI); (7) “violation of duty of good faith and fair dealing” (Count VII); and (8) “unfair competition” in violation of Cal. Bus. & Prof. Code § 17200, et seq. (Count VIII). (See Compl. at 20-25.) Dismissal under Rule 12(b)(6) of the Federal Rules of Civil Procedure “can be based on the lack of a cognizable legal theory or the absence of sufficient facts alleged under a cognizable legal theory.” See Balistreri v. Pacifica Police Dep't, 901 F.2d 696, 699 (9th Cir. 1990). Rule 8(a)(2), however, “requires only ‘a short and plain statement of the claim showing that the pleader is entitled to relief.’” See Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007) (quoting Fed. R. Civ. P. 8(a)(2)). Consequently, “a complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual allegations.” See id. Nonetheless, “a plaintiff's obligation to provide the grounds of his entitlement to relief requires more than . . . a formulaic recitation of the elements of a cause of action.” See id. (internal quotation, citation, and alteration omitted). In analyzing a motion to dismiss, a district court must accept as true all material nonmoving party. See NL Indus., Inc. v. Kaplan, 792 F.2d 896, 898 (9th Cir. 1986). “To survive a motion to dismiss,” however, “a complaint must contain sufficient factual material, accepted as true, to ‘state a claim to relief that is plausible on its face.’” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). “Factual allegations must be enough to raise a right to relief above the speculative level,” Twombly, 550 U.S. at 555, and courts “are not bound to accept as true a legal conclusion couched as a factual allegation,” see Iqbal, 556 U.S. at 678 (internal quotation and citation omitted). A. Trademark Claims By separate order filed June 30, 2023, the Court denied Reddit’s motion to stay Counts I, II, III, and IV (collectively, “Trademark Claims”). In light thereof, the Court considers below Reddit’s argument, set forth in the instant motion, that the Trademark Claims “should be dismissed for failure to state a claim.” (See Def.’s Mot. to Dismiss Compl. (“Def.’s Mot.”) at 19:10, Dkt. No. 28.) The Court addresses below each such Count in turn. 1. Count I – Declaratory Judgment as to “Controversy Regarding Ownership of the WALLSTREETBETS Trademark” In Count I, Rogozinski seeks “a declaratory judgment that he, and not Reddit, is the owner of the WALLSTREETBETS trademark.” (See Compl. ¶ 69.) “It is axiomatic in trademark law that the standard test of ownership is priority of use

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Rogozinski v. Reddit, Inc., (N.D. Cal. 2023).

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