Timed Out, LLC v. Youabian, Inc.

229 Cal. App. 4th 1001, 177 Cal. Rptr. 3d 773, 42 Media L. Rep. (BNA) 2357, 112 U.S.P.Q. 2d (BNA) 1073, 2014 Cal. App. LEXIS 830
CourtCalifornia Court of Appeal
DecidedSeptember 12, 2014
DocketB242820
StatusPublished
Cited by14 cases

This text of 229 Cal. App. 4th 1001 (Timed Out, LLC v. Youabian, Inc.) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Timed Out, LLC v. Youabian, Inc., 229 Cal. App. 4th 1001, 177 Cal. Rptr. 3d 773, 42 Media L. Rep. (BNA) 2357, 112 U.S.P.Q. 2d (BNA) 1073, 2014 Cal. App. LEXIS 830 (Cal. Ct. App. 2014).

Opinion

*1004 Opinion

KITCHING, J.

INTRODUCTION

Plaintiff Timed Out, LLC (Plaintiff), as the assignee of two models who are not parties to this action (the Models), sued defendants Youabian, Inc., and Kambiz Youabian (Defendants) for common law and statutory misappropriation of likeness based on Defendants’ alleged unauthorized display of the Models’ images in connection with advertising Defendants’ cosmetic medical services. The trial court ruled a cause of action for misappropriation of likeness is not assignable and granted Defendants’ motion for judgment on the pleadings on that basis. We conclude a misappropriation of likeness claim, which concerns only the pecuniary benefits to be derived from the commercial exploitation of a person’s likeness, is assignable. Accordingly, we reverse.

FACTS 1 AND PROCEDURAL BACKGROUND

According to the complaint’s allegations, Plaintiff is a company that “specialize^] in the protection of personal image rights.” The Models are professional models who earn a living modeling and selling their images to companies for advertising products and services. In or about July 2011, the Models discovered Defendants had been using their images on Defendants’ Web site, without the Models’ consent, to advertise Defendants’ cosmetic medical services. Following the discovery, the Models “assigned their rights to bring suit for misappropriation of their images to PLAINTIFF.”

Based on the foregoing allegations, Plaintiff sued Defendants for statutory and common law misappropriation of likeness. The complaint alleges that, as a direct and proximate result of the misappropriation, Plaintiff, through its assignment from the Models, suffered damages “with respect to [the Models’] right to control the commercial exploitation of their image and likeness [sic]” and through the dilution of the value of the Models’ images for advertising medical services.

Defendants moved for judgment on the pleadings. In their motion, Defendants principally asserted that Plaintiff lacked standing to sue on behalf of the Models because the right of publicity, which creates liability for misappropriation of a person’s name or likeness, is personal in nature and cannot be *1005 assigned. Defendants also argued Plaintiff’s claims were preempted by the federal Copyright Act of 1976 (Pub.L. No. 94-553 (Oct. 19, 1976) 90 Stat. 2541).

After hearing argument and taking the matter under submission, the trial court granted Defendants’ motion. In its written ruling, the court observed the parties’ primary dispute centered on whether a claim for misappropriation of likeness can be assigned. The court framed the issue as follows: “The parties agree that, under California law, assignment of a ‘personal’ tort is not valid. . . . The issue, therefore, is whether a cause of action for misappropriation of publicity is personal in nature.” Citing Lugosi v. Universal Pictures (1979) 25 Cal.3d 813 [160 Cal.Rptr. 323, 603 P.2d 425] (Lugosi), the trial court concluded, “the right to publicity [is] personal in nature and therefore non-assignable.” On this basis, the court granted the motion and entered judgment for Defendants.

STANDARD OF REVIEW

“ ‘Review of a judgment on the pleadings requires the appellate court to determine, de novo and as a matter of law, whether the complaint states a cause of action.’ ” (Third Eye Blind, Inc. v. Near North Entertainment Ins. Services, LLC (2005) 127 Cal.App.4th 1311, 1317 [26 Cal.Rptr.3d 452].) “We assume the truth of the properly pleaded factual allegations, facts that reasonably can be inferred from those expressly pleaded, and facts of which judicial notice can be taken. [Citation.] We construe the pleading in a reasonable manner and read the allegations in context.” (Zenith Ins. Co. v. O’Connor (2007) 148 Cal.App.4th 998, 1006 [55 Cal.Rptr.3d 911].) The complaint “must be liberally construed, with a view to substantial justice between the parties.” (Code Civ. Proc., § 452.)

DISCUSSION

1. The Pecuniary Interest Protected by the Right of Privacy Is Assignable

“In this state the right of publicity is both a statutory and a common law right.” (Comedy III Productions, Inc. v. Gary Saderup, Inc. (2001) 25 Cal.4th 387, 391 [106 Cal.Rptr.2d 126, 21 P.3d 797] (Comedy III).) Although its origin can be traced to “the fourth type of privacy invasion identified by Dean Prosser in his seminal article on the subject” 2 (Comedy III, at p. 391, fn. *1006 2, citing Prosser, Privacy, supra, 48 Cal. L.Rev. 383, 389), “[t]he right of publicity has come to be recognized as distinct from the right of privacy” (KNB Enterprises v. Matthews (2000) 78 Cal.App.4th 362, 366 [92 Cal.Rptr.2d 713] (KNB)). “What may have originated as a concern for the right to be left alone has become a tool to control the commercial use and, thus, protect the economic value of one’s name, voice, signature, photograph, or likeness.” (Ibid.) “What the right of publicity holder possesses is ... a right to prevent others from misappropriating the economic value generated . . . through the merchandising of the ‘name, voice, signature, photograph, or likeness’ of the [holder].” (Comedy III, supra, 25 Cal.4th at p. 403; see Civ. Code, § 3344, subd. (a).)

In 1971, California enacted Civil Code section 3344, 3 a commercial statute that complements the common law tort of misappropriation of likeness. (Lugosi, supra, 25 Cal.3d at p. 819, fn. 6; KNB, supra, 78 Cal.App.4th at pp. 366-367.) Section 3344, subdivision (a) provides in relevant part: “Any person who knowingly uses another’s name, voice, signature, photograph, or likeness, in any manner, on or in products, merchandise, or goods, or for purposes of advertising or selling, or soliciting purchases of, products, merchandise, goods or services, without such person’s prior consent. . . shall be liable for any damages sustained by the person or persons injured as a result thereof.” Nothing in section 3344 expressly prohibits assignment of the rights and remedies established by the statute.

In the instant case, the trial court granted Defendants’ motion on the ground that the right of publicity is “personal in nature and therefore non-assignable.” In reaching this conclusion, the trial court derived a rule from our Supreme Court’s opinion in Lugosi, supra, 25 Cal.3d 813 that cannot properly be attributed to the holding in that case.

In Lugosi, the heirs of the actor Bela Lugosi sued Universal Pictures, the motion picture company that produced the film Dracula (Universal Pictures 1931), for common law misappropriation of Lugosi’s likeness.

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229 Cal. App. 4th 1001, 177 Cal. Rptr. 3d 773, 42 Media L. Rep. (BNA) 2357, 112 U.S.P.Q. 2d (BNA) 1073, 2014 Cal. App. LEXIS 830, Counsel Stack Legal Research, https://law.counselstack.com/opinion/timed-out-llc-v-youabian-inc-calctapp-2014.