Therapeutic Research Faculty v. NBTY, INC.

488 F. Supp. 2d 991, 81 U.S.P.Q. 2d (BNA) 1723, 2007 U.S. Dist. LEXIS 8147, 2007 WL 214595
CourtDistrict Court, E.D. California
DecidedJanuary 25, 2007
Docket2:05-cv-2322-GEB-DAD
StatusPublished
Cited by8 cases

This text of 488 F. Supp. 2d 991 (Therapeutic Research Faculty v. NBTY, INC.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Therapeutic Research Faculty v. NBTY, INC., 488 F. Supp. 2d 991, 81 U.S.P.Q. 2d (BNA) 1723, 2007 U.S. Dist. LEXIS 8147, 2007 WL 214595 (E.D. Cal. 2007).

Opinion

ORDER *

BURRELL, District Judge.

Defendants NBTY, Inc. (“NBTY”) and Rexall Sundown, Inc. (“Rexall Sundown”) (collectively “Defendants”) move to dismiss eight of the thirteen claims alleged in Plaintiffs Second Amended Complaint (“Complaint”) under Federal Rule of Civil Procedure 12(b)(6). 1 Plaintiff opposes the motion. For the following reasons, Defendants’ motion is denied.

BACKGROUND

Plaintiff is an organization that provides analysis of drug therapy information and advice for professionals in the medical community. (Comply 12.) Plaintiff owns copyrights in the Natural Medicines Comprehensive Database (the “Publication”) which “includes over 1,100 pharmacist-prepared monographs containing detailed evidence-based information.” (Id. ¶¶ 2, 12.) The Publication is available both annually, in a hard copy print edition, and through subscription, in a continually updated online version contained in a passcode-pro-tected area of Plaintiffs website. (Id. ¶ 2.) There are two different types of subscriptions: “[a]n annual single user limited-purpose subscription for Internet access ... which was made available in April and May 2002 for under $100” and “site licenses for organizations or corporations with higher usage patterns [which] are sold for many thousand dollars.” (Id. ¶ 15.)

NBTY purchased a single user subscription to the Publication and thereby entered into a single user license agreement with Plaintiff. (Id. ¶ 3.) The single user license agreement “limits access to ‘one and only one person,’ either ‘accessing information for personal use’ or ‘for the benefit of an individual patient or as part of an educational exercise.’ ” (Id. ¶ 5.) In addition,

[e]ach ... [s] ingle [u]ser [l]icense specifically provides that access is limited to the individual employee and that ‘under no circumstances may [the employee] permit any person or entity, including [ ] fellow employees or employer, to use [the employee’s] passcodes for the purpose of accessing the site, nor may [the employee] use [his/her] passcodes to access the site for anyone else.’

(Id.) Nonetheless, Plaintiff claims that NBTY “shared the confidential username and passcode among many [of its employees] for two-and-a-half years, thereby infringing on [Plaintiffs] rights in the Publication.” (Id. ¶ 3.)

Plaintiff also alleges that NBTY and Rexall Sundown infringed on its rights in the Publication when Rexall Sundown used the confidential username and passcode from NBTY’s single user subscription without authorization. (Id.) Finally, Plaintiff claims that NBTY “improperly and deceptively obtained access to the Publication for Le Naturiste employees” under a group license agreement entered into between Plaintiff and NBTY to address the previously alleged violations of the single user license agreement. (Id. ¶¶ 3, 40.) Under the group license agreement, only twelve designated researchers employed by NBTY or Rexall Sundown were permitted to access the Publication. (Id. ¶ 3.)

*994 Defendants move to dismiss eight claims: copyright infringement, contributory copyright infringement, vicarious copyright infringement, violation of the Computer Fraud and Abuse Act (“CFAA”) (under 18 U.S.C. § 1030), violation of Title II of the Electronic Communications Privacy Act (“ECPA”) (under 18 U.S.C. § 2701), violation of the California Comprehensive Data Access and Fraud Act (under section 502 of the California Penal Code), trespass and misappropriation of trade secret. (Mot. at 2.)

DISCUSSION

Dismissal is appropriate under Rule 12(b)(6) if Plaintiff failed to (1) present a cognizable legal theory, or (2) plead sufficient facts to support a cognizable legal theory. Robertson v. Dean Witter Reynolds, Inc., 749 F.2d 530, 533-34 (9th Cir.1984). When considering a motion to dismiss, all material allegations in the Complaint must be accepted as true and construed in the light most favorable to Plaintiff. Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90 (1974); Cahill v. Liberty Mut. Ins. Co., 80 F.3d 336, 337-38 (9th Cir.1996). In addition, Plaintiff is given the benefit of every reasonable inference that can be drawn from the allegations in the Complaint. Retail Clerks Intern. Ass’n v. Schermerhorn, 373 U.S. 746, 753 n. 6, 83 S.Ct. 1461, 10 L.Ed.2d 678 (1963). Accordingly, a motion to dismiss must be denied “unless it appears beyond doubt that [Plaintiff] can prove no set of facts in support of [its] claim which would entitle [it] to relief.” Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

I. Copyright Infringement

“A plaintiff must meet two requirements to establish a prima facie case of copyright infringement: (1) ownership of the allegedly infringed material and (2) violation by the alleged infringer of at least one of the exclusive rights granted to copyright holders.” LGS Architects, Inc. v. Concordia Homes of Nev., 434 F.3d 1150, 1156 (9th Cir.2006). Under § 106 of the Copyright Act:

[T]he owner of copyright ... has the exclusive rights to do and to authorize any of the following: (1) to reproduce the copyrighted works in copies or pho-norecords; (2) prepare derivative works based on the copyrighted words; (3) to distribute copies or phonorecords of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending; (4) in the case of literary, musical, dramatic, and choreographic works, pantomimes, and motion pictures and other audiovisual works, to perform the copyrighted work publicly; (5) in the case of literary, musical, dramatic, and choreographic works, pantomines, and pictorial, graphic or sculptural works, including the individual images of a motion picture or other audiovisual work, to display the copyrighted work publicly; (6) in the case of sound recordings, to perform the copyrighted work publicly, by means of a digital audio transmission.

17 U.S.C. § 106.

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

Related

Capitol Audio Access, Inc. v. Umemoto
980 F. Supp. 2d 1154 (E.D. California, 2013)
Executive Security Management Inc. v. Dahl
830 F. Supp. 2d 883 (C.D. California, 2011)
Agency Solutions.Com, LLC v. Trizetto Group, Inc.
819 F. Supp. 2d 1001 (E.D. California, 2011)
AYCO COMPANY, LP v. Frisch
795 F. Supp. 2d 193 (N.D. New York, 2011)
COSTAR REALTY INFORMATION, INC. v. Field
737 F. Supp. 2d 496 (D. Maryland, 2010)
AtPac, Inc. v. Aptitude Solutions, Inc.
730 F. Supp. 2d 1174 (E.D. California, 2010)
Multiven, Inc. v. Cisco Systems, Inc.
725 F. Supp. 2d 887 (N.D. California, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
488 F. Supp. 2d 991, 81 U.S.P.Q. 2d (BNA) 1723, 2007 U.S. Dist. LEXIS 8147, 2007 WL 214595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/therapeutic-research-faculty-v-nbty-inc-caed-2007.