The Brandr Group, LLC v. Electronic Arts Inc.

District Court, N.D. California·Decided June 30, 2023·No. 4:23-cv-02994·Unknown

Opinion

THE BRANDR GROUP, LLC, Case No. 23-cv-02994-HSG

Plaintiff, ORDER DENYING APPLICATION FOR TEMPORARY RESTRAINING v. ORDER

ELECTRONIC ARTS INC., Re: Dkt. No. 7 Defendant.

Pending before the Court is Plaintiff The Brandr Group, LLC’s application for a temporary restraining order. The Court finds this matter appropriate for disposition without oral argument and the matter is deemed submitted. See Civil L.R. 7-1(b). For the reasons detailed below, the Court DENIES the application. On June 20, 2023, Defendant Electronic Arts Inc. removed this action from San Mateo Superior Court. Dkt. No. 1. In the complaint, Plaintiff alleges that Defendant is interfering with its contractual relationship with certain colleges and their student athletes by soliciting them to participate in Defendant’s upcoming EA Sports College Football video game. Dkt. No. 1-1, Ex. 1 (“Compl.”). Plaintiff states that it has become a leader in the “collegiate group licensing” industry since 2021 when the National Collegiate Athletic Association (“NCAA”) permitted student athletes to be compensated for the use of their own name, image, and likeness (“NIL”). Id. at ¶¶ 2–3, 23–26; see also Nat’l Collegiate Athletic Ass’n v. Alston, 141 S. Ct. 2141, 2160–2166 (2021); O’Bannon v. Nat’l Collegiate Athletic Ass’n, 802 F.3d 1049, 1057–79 (9th Cir. 2015). As relevant here, Plaintiff further contends that it has entered into exclusive “Group Rights Licensing experiences” for them. See, e.g., Compl. at ¶¶ 8, 19–20, 27–48. Under these agreements, Plaintiff urges that entities such as Defendant must negotiate directly with or otherwise obtain consent from Plaintiff to use the NIL of three or more student athletes from one specific sport or six or more student athletes from multiple sports in combination with a school’s intellectual property (e.g., the school’s brand, logos, stadiums, mascots, or fight songs). See id. at ¶¶ 27–48, 61, 86, 91, 141–42, 155–56, 176. Plaintiff does not consent to the licensing of its clients’ IP or NIL, and suggests that Defendant is misleading schools and students about their contractual obligations. See id. at ¶¶ 81– 82, 89, 92–93, 95, 130, 149, 163. Plaintiff further alleges that it has heard from its partner schools that Defendant is “pressuring” schools who have not yet opted into the video game to do so by June 30, 2023. See id. at ¶¶ 92, 81–82, 120. Based on these facts, Plaintiff brings causes of action for (1) tortious interference with contract; (2) violation of California’s statutory right of publicity, California Civil Code § 3344; (3) violation of the common law right of publicity; (4) violation of California’s Unfair Competition Law (“UCL”), Business and Professions Code §§ 17200, et seq.; and (5) declaratory relief. Id. at ¶¶ 125–179. On June 22, 2023, Plaintiff filed an application for a temporary restraining order (“TRO”). Dkt. No. 7. Plaintiff argues that such emergency relief is necessary at the outset of this litigation because Defendant has imposed an artificial deadline of June 30, 2023, for schools to enter into agreements to participate in the upcoming video game. See id. at 1, 8, 19. Doing so, Plaintiff asserts, wrongfully cuts Plaintiff out of the negotiation process and threatens to drive it out of business entirely. Id. at 19–22. Plaintiff accordingly seeks to enjoin Defendant from (1) directly or indirectly soliciting Plaintiff’s (as yet unidentified) clients for their participation in the video game; (2) directly or indirectly interfering with Plaintiff’s contractual rights under its Collaboration Agreements and Group Licensing Authorization and Assignment Agreements; and (3) directly or indirectly using, appropriating, or incorporating the NIL of Plaintiff’s clients without Plaintiff’s express authorization and consent. Id. at 1–2. Defendant opposes the requested issuance of a TRO. See Dkt. No. 16. Under Federal Rule of Civil Procedure 65, a temporary restraining order may enjoin conduct pending a hearing on a preliminary injunction. See Fed. R. Civ. P. 65(b). The standard for issuing a temporary restraining order and issuing a preliminary injunction are substantially identical. See Stuhlbarg Int’l Sales Co., Inc. v. John D. Brush & Co., 240 F.3d 832, 839, n.7 (9th Cir. 2001). A plaintiff seeking preliminary relief must establish: (1) that it is likely to succeed on the merits; (2) that it is likely to suffer irreparable harm in the absence of preliminary relief; (3) that the balance of equities tips in its favor; and (4) that an injunction is in the public interest. See Winter v. Nat. Res. Def. Council, 555 U.S. 7, 20 (2008). Preliminary relief is “an extraordinary remedy that may only be awarded upon a clear showing that the plaintiff is entitled to such relief.” Id. at 22. A court must find that “a certain threshold showing” is made on each of the four required elements. Leiva-Perez v. Holder, 640 F.3d 962, 966 (9th Cir. 2011). Under the Ninth Circuit's sliding scale approach, a preliminary injunction may issue if there are “serious questions going to the merits” if “a hardship balance [also] tips sharply towards the [movant],” and “so long as the [movant] also shows that there is a likelihood of irreparable injury and that the injunction is in the public interest.” All. for the Wild Rockies v. Cottrell, 632 F.3d 1127, 1135 (9th Cir. 2011). Plaintiff asserts that it meets all four requirements for a TRO because Defendant “brazenly violated [its] rights” by encouraging schools to enter into agreements with Defendant by June 30, 2023, to participate in the video game, and “threatening that they will be excluded from the highly anticipated game if they do not comply” by then. See Dkt. No. 7 at 1. The Court finds that Plaintiff has not established that such an “extraordinary remedy” is warranted in this case. A. Irreparable Harm As an initial matter, Plaintiff has not shown that it is likely to suffer any immediate or irreparable harm absent a TRO. A TRO is intended to preserve the status quo and prevent irreparable harm until a hearing can be held on a preliminary injunction. See E. Bay Sanctuary preserving the status quo and preventing irreparable harm just so long as is necessary to hold a hearing and no longer.” (quotation omitted)); see also Fed. R. Civ P. 65(b). But Plaintiff has not shown the immediacy of any alleged harm if the Court does not grant it interim relief. See Caribbean Marine Servs. Co. v. Baldrige, 844 F.2d 668, 674 (9th Cir. 1988) (“[A] plaintiff must demonstrate immediate threatened injury as a prerequisite to preliminary injunctive relief.”). In its application, Plaintiff contends that absent a TRO, Defendant will continue to interfere with its contractual agreements with colleges and student athletes. Specifically, Plaintiff states that Defendant has given schools an “artificial June 30 deadline” to sign an agreement to participate in the video game. See Dkt. No. 7 at 1, 18–19. Thus, Plaintiff reasons, more schools may enter into agreements with Defendant given this time pressure and the risk of missing an opportunity to participate in the video game. Id. Plaintiff further suggests that after this June 30 date, Defendant “will turn its focus to signing [its] Client Athletes.” Id. at 19. Plaintiff offers little support for t

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