The Upper Deck Company v. Miller

District Court, W.D. Washington·Decided December 16, 2024·No. 2:23-cv-01936·Unknown

Opinion

UNITED STATES DISTRICT COURT AT SEATTLE THE UPPER DECK COMPANY, CASE NO. C23-1936-KKE

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART DEFENDANTS’ MOTION TO DISMISS THE SECOND RYAN MILLER et al., AMENDED COMPLAINT

Defendants. This is a copyright infringement case between competitors in the trading card game industry. The Upper Deck Company (“Upper Deck”) alleges its former contractor, Defendant Ryan Miller, went to work for its competitor, Defendant Ravensburger North America, Inc. (“Ravensburger”), under false pretenses and used confidential, copyrighted material obtained during his employment with Upper Deck to create a new infringing game with Ravensburger. The Court granted in part Defendants’ previous motion to dismiss and allowed Upper Deck limited leave to amend. Upper Deck amended its complaint and Defendants now move to dismiss each of the amended claims: fraudulent misrepresentation, inducing breach of contract and interfering with economic relations, and violation of California’s unfair competition law. The Court grants in part Defendants’ motion (Dkt. No. 63), and finds that both of the tortious interference claims fail for lack of any alleged wrongful act and that the unfair competition claim fails to allege a recognized unfair act. In 2018, Miller entered into an agreement (“2018 Agreement”) with Upper Deck wherein Miller would attend a gaming summit to brainstorm and provide feedback on new games and game

mechanics. Dkt. No. 62 ¶ 12. Rush of Ikorr was created at this gaming summit. Id. ¶ 14. In 2019, Miller entered into another agreement with Upper Deck (“2019 Agreement”) wherein Miller would be the lead game designer for Rush of Ikorr and would be paid upon completion of specific milestones, with a timeline running through March 2021. Id. ¶¶ 15–16. In October 2020, Miller terminated the 2019 Agreement and, around that time, began working with Ravensburger. Id. ¶¶ 21, 23. In September 2022, Ravensburger announced the Disney Lorcana game and identified Miller as the “product manager and co-designer” of the game. Id. ¶ 27. In June 2023, Upper Deck filed this case against Defendants in San Diego Superior Court and Defendants removed the case to the Southern District of California. Dkt. No. 1. The case was

transferred to this Court under 28 U.S.C. § 1404(a). Dkt. No. 29-1. Defendants then moved to dismiss every cause of action except the breach of the contract claim for failure to state a claim. Dkt. No. 46. The Court granted in part and denied in part the motion. Dkt. No. 58. The Court found that it had subject matter jurisdiction, California law should apply, and dismissed with prejudice the breach of fiduciary duty and conversion claims against Miller. Id. The Court also dismissed with leave to amend the fraudulent misrepresentation claim against Miller, the inducing breach of contract and intentional interference claims against Ravensburger, and the unfair competition claim against both Defendants. Id. Upper Deck amended its complaint. Dkt. No. 62 (“SAC”). Defendants now move to dismiss those same four causes of action again, claiming each amended claim fails to cure the deficiencies identified in the Court’s prior order. Dkt. No. 63.

Defendants responded (Dkt. No. 68) and Upper Deck replied (Dkt. No. 69). Neither party requested oral argument and the matter is ripe for the Court’s consideration. A. Legal Standard on Motion to Dismiss Dismissal under Federal Rule of Civil Procedure 12(b)(6) may be based on either the lack

of a cognizable legal theory or the “absence of sufficient facts alleged to support a cognizable legal theory.” Shroyer v. New Cingular Wireless Servs., Inc., 622 F.3d 1035, 1041 (9th Cir. 2010) (cleaned up). At this stage, the Court accepts as true all factual allegations in the complaint and construes them in the light most favorable to the nonmoving party. Gonzalez v. Google LLC, 2 F.4th 871, 885 (9th Cir. 2021), rev’d sub nom on other grounds by Twitter, Inc. v. Taamneh, 598 U.S. 471 (2023) (per curiam). “To survive a motion to dismiss, a complaint must contain sufficient factual matter, 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 Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)); see Fed. R. Civ. P. 8(a)(2) (a plaintiff must make a “short and plain statement of the claim showing

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