Seattlehaunts LLC v. Thomas Family Farm LLC

District Court, W.D. Washington·Decided April 6, 2020·No. 2:19-cv-01937·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT SEATTLE

SEATTLEHAUNTS, LLC, CASE NO. C19-1937JLR Plaintiff, ORDER DENYING MOTION TO v. DISMISS OR STAY THOMAS FAMILY FARM, LLC, et al., Defendants. I. INTRODUCTION Before the court is Defendant Thomas Family Farm, LLC’s (“Thomas Family Farm”) motion to dismiss or stay this case. (See Mot. (Dkt. # 8); see also Reply (Dkt. # 15).) Plaintiff Seattlehaunts, LLC (“Seattlehaunts”) opposes the motion. (See Resp. (Dkt. # 14).) The court has reviewed the motion, the parties’ submissions in support of // // and in opposition to the motion, the relevant portions of the record, and the applicable law. Being fully advised, the court DENIES Thomas Family Farm’s motion to dismiss.1

A. Factual Background This is an intellectual property dispute. Seattlehaunts provides haunted houses, escape rooms, escape games and other similar attractions in Pierce, King, and Snohomish counties in Washington. (See Am. Compl. (Dkt. # 7) ¶ 1.) Thomas Family Farm owns a farm property (the “Farm”) that Thomas Family Farm and Seattlehaunts used to host an

annual haunted house event that the parties titled “Nightmare on 9.” (See id. ¶¶ 16-17.) Seattlehaunts alleges that the first Nightmare on 9 event on the Farm occurred in the fall of 2012 and that Seattlehaunts and Thomas Family Farm were “equal partners” in that iteration of the event. (See id.) Seattlehaunts and Thomas Family Farm continued to run the Nightmare on 9 event on the Farm from 2013 until 2018, but Seattlehaunts claims that

it took full control of the annual events beginning in 2013. (See id. ¶¶ 21-25, 29.) The parties entered into an annual contract for the Nightmare on 9 events from 2013 to 2018 whereby Seattlehaunts leased the Farm from Thomas Family Farm in exchange for 25% of the ticket sales from the event. (See id. ¶¶ 24, 29.) //

1 Thomas Family Farm requested oral argument on the motion (see Mot.), but Seattlehaunts did not (see Resp.). The parties thoroughly briefed the issues, and the court finds that this matter can be decided on the parties’ papers. Thus, the court DENIES Defendants’ request for oral argument. See Local Rules W.D. Wash. LCR 7(b)(4) (“Unless otherwise ordered by the court, all motions will be decided by the court without oral argument.”). Thomas Family Farm developed the following graphic for the Nightmare on 9 events:

CO =

fe.

(See Jacobowitz Decl. (Dkt. #9) J 2, Ex. 1 (‘State Court Compl.”) 4 11, Ex. B (the “Hook Graphic’’); see also id., § 3, Ex. 2 (‘State Court Answer’), § 11 (admitting allegation in paragraph 11).7) However, Seattlehaunts alleges that it contracted with an independent artist, Joseph Wondell, in 2012 to design the following graphic for use in marketing and advertising for the Nightmare on 9 events: NCS nail > As discussed below, the court takes judicial notice of the existence of a parallel lawsuit filed by Thomas Family Farm in Snohomish County Superior Court and of select allegations from the pleadings in that action. See infra § IILA.

(See Am. Compl. ¶¶ 3, 18, 35-36 (hereinafter, the “Wondell Graphic”).) Thomas Family Farm paid Mr. Wondell’s original invoice for designing the Wondell Graphic, and the

parties used the Wondell Graphic to promote the Nightmare on 9 events. (See id. ¶¶ 18, 35-36.) On June 25, 2019, Thomas Family Farm informed Seattlehaunts that Seattlehaunts was not welcome to run a Nightmare on 9 event at the Farm in the fall of 2019. (See id. ¶ 31.) Accordingly, Seattlehaunts advertised on its website that it would not run the Nightmare on 9 event at the Farm in 2019, but that fans of the Nightmare on 9 event

should look for Seattlehaunts’ new location in 2020. (See id. ¶ 32.) However, Thomas Family Farm advertised on its website that it would be offering a “renovated” Nightmare on 9 event in 2019. (See id. ¶ 41.) Seattlehaunts alleges that Thomas Family Farm’s website advertisements featured copies of the Wondell Graphic. (See id.) On August 7, 2019, Seattlehaunts filed a Washington State trademark application

for the text “NIGHTMARE ON 9,” but the Washington Secretary of State denied the application because Thomas Family Farm had already registered a trademark for Wondell Graphic. (See id. ¶¶ 33-34, 42, Exs. 1, 5.3) On December 7, 2018 received a trademark registration for the following trademark: THE WORDS “NIGHTMARE ON 9” OVER A HIGHWAY SIGN. (See id. ¶ 42, Ex. 5.) On August 13, 2019, Thomas Family Farm

sent Seattlehaunts a demand letter alleging that Seattlehaunts was intentionally infringing on Thomas Family Farm’s trademark by continuing to use it in Seattlehaunts’ advertising

3 The court may consider documents appended or attached to the complaint in ruling on a Rule 12(b)(6) motion to dismiss. United States v. Ritchie, 342 F.3d 903, 908 (9th Cir. 2003). and promotional material. (See id. ¶ 45.) Thomas Family Farm demanded payment of $39,000.00 for a transfer of the trademark and registration to Seattlehaunts. (See id. ¶

46.) On August 15, 2019, Seattlehaunts executed an agreement with Mr. Wondell in which Mr. Wondell assigned his ownership interest and copyright in the Wondell Graphic to Seattlehaunts. (See id. ¶¶ 37-38, Ex. 3.) The following day, Seattlehaunts filed an application to register the copyright in the Wondell Graphic with the U.S. Copyright Office. (See id. ¶ 39.) On August 20, 2019, the Register of Copyrights issued

Seattlehaunts a copyright registration with an effective date of August 16, 2019 in the work titled “Nightmare on 9 Haunted House Graphics.” (See id. ¶ 39, Ex. 4.) After receiving the registration, Seattlehaunts sent a response to Thomas Family Farm’s demand letter that notified Thomas Family Farm that Seattlehaunts had registered the copyright in the Wondell Graphic and demanded that Thomas Family Farm cease all use

of the intellectual property that Seattlehaunts believed it owned. (See id. ¶ 47, Ex. 6.) According to Seattlehaunts, Thomas Family Farm did not stop using the Wondell Graphic and instead ran a Nightmare on 9 event at the Farm in September and October 2019 and used the Wondell Graphic in its advertising for that event. (See id. ¶¶ 48-49.) B. Procedural Background

On October 7, 2019, Thomas Family Farm filed a lawsuit against Seattlehaunts in Snohomish County Superior Court, Thomas Family Farm, LLC v. Seattlehaunts, LLC, Cause No. 19-2-09008-31 (the “State Court Action”). (See Am. Compl. ¶ 9; State Court Compl.) In that lawsuit, Thomas Family Farm brings claims for state trademark infringement and defamation against Seattlehaunts. (See Am. Compl. ¶ 9; State Court Compl. at 5-7.) Seattlehaunts filed this lawsuit against Thomas Family Farm in this court

on November 26, 2019 (see Compl. (Dkt. # 1) at 17) and amended the complaint on December 18, 2019 (see Am. Compl. at 21). Seattlehaunts brings claims for unregistered trademark infringement and false designation or origin under the Lanham Act, 15 U.S.C § 1125; Copyright Infringement under 17 U.S.C. § 101; unfair competition under the Washington Consumer Protection Act, RCW ch. 19.86; declaratory judgment of non-infringement; declaratory judgment of abandonment; and declaratory judgment of

non-disparagement. (See Am. Compl. ¶¶ 50-79.) Thomas Family Farm moves (1) to dismiss Seattlehaunts’ claims for copyright infringement and trademark infringement under Rule 12(b)(6) (see Mot at 7-12) and (2) to dismiss or stay Seattlehaunts’ remaining causes of action under the Colorado River

Free access — add to your briefcase to read the full text and ask questions with AI

Seattlehaunts LLC v. Thomas Family Farm LLC, (W.D. Wash. 2020).

Seattlehaunts LLC v. Thomas Family Farm LLC (Seattlehaunts LLC v. Thomas Family Farm LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Bell Atlantic Corp. v. Twombly
550 U.S. 544 (Supreme Court, 2007)
Ashcroft v. Iqbal
556 U.S. 662 (Supreme Court, 2009)
TELESAURUS VPC, LLC v. Power
623 F.3d 998 (Ninth Circuit, 2010)
United States v. Corinthian Colleges
655 F.3d 984 (Ninth Circuit, 2011)
Marder v. Lopez
450 F.3d 445 (Ninth Circuit, 2006)
Cook v. Food & Drug Administration
733 F.3d 1 (D.C. Circuit, 2013)
Richlin v. Metro-Goldwyn-Mayer Pictures, Inc.
531 F.3d 962 (Ninth Circuit, 2008)
Gold Value Int'l v. Sanctuary Clothing, LLC
925 F.3d 1140 (Ninth Circuit, 2019)
Ets-Hokin v. Skyy Spirits, Inc.
225 F.3d 1068 (Ninth Circuit, 2000)
Lee v. City of Los Angeles
250 F.3d 668 (Ninth Circuit, 2001)
Sprewell v. Golden State Warriors
266 F.3d 979 (Ninth Circuit, 2001)
Livid Holdings Ltd. v. Salomon Smith Barney, Inc.
416 F.3d 940 (Ninth Circuit, 2005)
Gracen v. Bradford Exchange
698 F.2d 300 (Seventh Circuit, 1983)