Rogozinski v. Reddit, Inc.

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

Opinion

1 2 3 4 IN THE UNITED STATES DISTRICT COURT 5 FOR THE NORTHERN DISTRICT OF CALIFORNIA 6 7 JAIME ROGOZINSKI, Case No. 23-cv-00686-MMC

8 Plaintiff, ORDER GRANTING DEFENDANT’S MOTION TO DISMISS; AFFORDING 9 v. PLAINTIFF LEAVE TO AMEND

10 REDDIT, INC., Re: Dkt. No. 28 11 Defendant.

12 13 Before the Court is defendant Reddit, Inc.’s (“Reddit”) “Motion,” filed April 10, 14 2023, “to Dismiss Complaint.” Plaintiff Jaime Rogozinski (“Rogozinski”) has filed 15 opposition, to which Reddit has replied. Having read and considered the papers filed in 16 support of and in opposition to the motion, the Court rules as follows.1 17 BACKGROUND2 18 “Reddit is a social media platform where millions of people around the world post, 19 vote, and comment in communities organized around their interests. (See Compl. ¶ 19 20 (internal quotation and citation omitted).) “Reddit is comprised of users and moderators.” 21 (See id.) Users “can post, comment, vote, discuss, learn, debate, support, and connect 22 with people.” (See id. (citation omitted).) Moderators, in addition to those actions, also 23 “volunteer their time to help guide and create Reddit’s many communities,” which are 24 called “subreddits.” (See id. (citation omitted).) 25 On January 31, 2012, Rogozinski, “under the username ‘jartek,’” created the 26 1 By order filed June 16, 2023, the Court took the matter under submission. 27 1 “r/WallStreetBets” subreddit, a “forum where people share stock and other financial 2 advice” and on which Rogozinski served as its first moderator. (See Compl. ¶¶ 1, 20.) 3 By early 2020, the r/WallStreetBets subreddit “had grown to more than 1 million 4 subscribers, earning recognition from the financial press.” (See id. ¶¶ 1-2.) At the end of 5 January 2020, Rogozinski published a book, WallStreetBets: How Boomers Made the 6 World’s Biggest Casino for Millennials, and posted, on the “side bar” of the 7 r/WallStreetBets subreddit, “a link to purchase his book on Amazon.” (See id. ¶ 33.) 8 Thereafter, in early March 2020, Rogozinski “announced a WALLSTREETBETS-branded 9 e-sports competition” on the subreddit. (See id. ¶ 34.) 10 On March 24, 2020, Rogozinski filed an application with the United States Patent 11 and Trademark Office (“USPTO”) to register the mark WALLSTREETBETS for use “in 12 conjunction with online and print publications in the fields of trading and finance, clothing 13 items and providing an online forum for financial and trading information.” (See Compl. 14 ¶ 35.) Two weeks later, on April 7, 2020, Reddit “sent a notification to [Rogozinski] that 15 his account had been placed on a seven-day suspension for ‘attempting to monetize a 16 community.’” (See id. ¶ 36.) It also stated that he was “no longer permitted to moderate 17 communities on reddit” with any account. (See id.) Subsequently, on May 11, 2020, 18 Reddit filed its own application with the USPTO to register the mark 19 WALLSTREETBETS. (See id. ¶ 41.) In addition, Reddit “initiated legal action at the 20 USPTO’s Trademark Trial and Appeal Board to block [Rogozinski] from asserting 21 ownership of WALLSTREETBETS.” (See id. ¶ 56.) 22 On January 12, 2022, Rogozinski filed an application to register the mark WSB, 23 “which is shorthand for WALLSTREETBETS.” (See Compl. ¶ 56.) Reddit did not oppose 24 that registration, which, on June 7, 2022, the USPTO issued as U.S. Trademark 25 Registration No. 6754487. (See id.) 26 As of 2023, Rogozinski has “made more than sixty media appearances to discuss 27 WALLSTREETBETS,” during which appearances “media consistently referred to [him] as 1 more than a dozen events . . . throughout the United States and around the world” (see 2 id.) and “sold the rights to his life story to a major production company that is going to ‘to 3 dramatize the story of his role in the WallStreetBets saga’” (see id. ¶ 60). According to 4 Rogozinski, after Reddit banned him, the content on the r/WallStreetBets subreddit 5 became “offensive,” “racially inflammatory,” and “at various times included swastikas” and 6 “hate speech.” (See id. ¶ 64.) 7 Based on the above, Rogozinski asserts the following claims for relief: (1) “a 8 declaratory judgment that he, and not Reddit, is the owner of the WALLSTREETBETS 9 trademark” (Count I); (2) “infringement of WALLSTREETBETS trademark” in violation of 10 Lanham Act § 43(a), 15 U.S.C. § 1125(a) (Count II); (3) “infringement of registered WSB 11 trademark” in violation of Lanham Act § 32, 15 U.S.C. § 1114 (Count III); (4) “trademark 12 dilution by tarnishment” in violation of Lanham Act § 43(c), 15 U.S.C. § 1125(c) (Count 13 IV); (5) “violation of right of publicity” (Count V); (6) “breach of contract” (Count VI); (7) 14 “violation of duty of good faith and fair dealing” (Count VII); and (8) “unfair competition” in 15 violation of Cal. Bus. & Prof. Code § 17200, et seq. (Count VIII). (See Compl. at 20-25.) 16 LEGAL STANDARD 17 Dismissal under Rule 12(b)(6) of the Federal Rules of Civil Procedure “can be 18 based on the lack of a cognizable legal theory or the absence of sufficient facts alleged 19 under a cognizable legal theory.” See Balistreri v. Pacifica Police Dep't, 901 F.2d 696, 20 699 (9th Cir. 1990). Rule 8(a)(2), however, “requires only ‘a short and plain statement of 21 the claim showing that the pleader is entitled to relief.’” See Bell Atlantic Corp. v. 22 Twombly, 550 U.S. 544, 555 (2007) (quoting Fed. R. Civ. P. 8(a)(2)). Consequently, “a 23 complaint attacked by a Rule 12(b)(6) motion to dismiss does not need detailed factual 24 allegations.” See id. Nonetheless, “a plaintiff's obligation to provide the grounds of his 25 entitlement to relief requires more than . . . a formulaic recitation of the elements of a 26 cause of action.” See id. (internal quotation, citation, and alteration omitted). 27 In analyzing a motion to dismiss, a district court must accept as true all material 1 nonmoving party. See NL Indus., Inc. v. Kaplan, 792 F.2d 896, 898 (9th Cir. 1986). “To 2 survive a motion to dismiss,” however, “a complaint must contain sufficient factual 3 material, accepted as true, to ‘state a claim to relief that is plausible on its face.’” 4 Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009) (quoting Twombly, 550 U.S. at 570). “Factual 5 allegations must be enough to raise a right to relief above the speculative level,” 6 Twombly, 550 U.S. at 555, and courts “are not bound to accept as true a legal conclusion 7 couched as a factual allegation,” see Iqbal, 556 U.S. at 678 (internal quotation and 8 citation omitted). 9 DISCUSSION 10 A. Trademark Claims 11 By separate order filed June 30, 2023, the Court denied Reddit’s motion to stay 12 Counts I, II, III, and IV (collectively, “Trademark Claims”). In light thereof, the Court 13 considers below Reddit’s argument, set forth in the instant motion, that the Trademark 14 Claims “should be dismissed for failure to state a claim.” (See Def.’s Mot. to Dismiss 15 Compl. (“Def.’s Mot.”) at 19:10, Dkt. No.

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