UAB "Planner5D" v. Meta Platforms, Inc.

District Court, N.D. California·Decided April 14, 2021·No. 3:19-cv-03132·Unknown

Opinion

UAB “PLANNER5D”, Case No. 19-cv-03132-WHO

Plaintiff, ORDER DENYING JOINT MOTION v. TO DISMISS COPYRIGHT CLAIMS

FACEBOOK, INC., et al., Re: Dkt. No. 105 Defendants.

The Copyright Office rejected plaintiff UAB Planner 5D’s (“Planner 5D”) application to register its alleged works. Planner 5D then filed this infringement action. There is no dispute that exhaustion of remedies was not required for Planner 5D to do so; the pre-suit registration requirement under the second sentence of 411(a) of the Copyright Act, which authorizes suit when a “registration has been refused,” was satisfied at that point. 17 U.S.C. § 411(a). Almost three months after filing this infringement action, Planner 5D timely requested reconsideration from the Copyright Office of its registration refusals by following the administrative procedures outlined in 37 C.F.R. § 202.5. Planner 5D is required to exhaust those procedures if it chooses to challenge a registration refusal in federal court under the Administrative Procedure Act (“APA”). But as a result of Planner 5D’s pursuing reconsideration, defendants Facebook, Inc., Facebook Technologies, LLC, (collectively “Facebook”) and The Trustees of Princeton University’s (“Princeton”) contend that this infringement action is premature until a final decision is rendered by the Copyright Office. They move to dismiss the copyright infringement claims that were initially procedurally proper because, in their view, satisfaction of section 411(a) was nullified by Planner 5D’s subsequent decision to seek reconsideration of the [Dkt. No. 105]. It is clear that exhaustion of the administrative review procedure within the Copyright Office is required before a party can challenge a registration refusal through an APA action. But the Copyright Act is silent about whether finality is required before Planner 5D can maintain an infringement action, and there is no caselaw on point. Based on the text of the Copyright Office’s refusal to register Planner 5D’s applications, the guidance in the Compendium of U.S. Copyright Office Practices, a treatise on copyright law and a balancing of interests of the parties and the institutional interests of the Copyright Office, I conclude that Planner 5D has met the prerequisites to proceed with this infringement action in federal court. The motion to dismiss is DENIED. The allegations underlying Planner 5D’s copyright infringement and trade secret misappropriation claims against Facebook and Princeton are detailed in my previous orders. See UAB “Planner 5D” v. Facebook, Inc. (“Planner 5D I”), No. 19-CV-03132-WHO, 2019 WL 6219223 (N.D. Cal. Nov. 21, 2019); UAB “Planner5D” v. Facebook, Inc. (“Planner 5D II”), No. 19-CV-03132-WHO, 2020 WL 4260733, at *1 (N.D. Cal. Jul. 24, 2020). The trade secret misappropriation claims were sufficiently pleaded in Planner 5D’s First Amended Complaint and are not at issue in the motion before me. Planner 5D II, 2020 WL 4260733, at *9. With respect to the copyright infringement claims, Planner 5D’s original Complaint failed to allege that it met the threshold registration requirement of section 411(a). I gave Planner 5D the choice to either sufficiently allege that its works are non-United States works that are exempt from registration or dismiss this suit and bring another suit after registering with the Copyright Office. Planner 5D I, 2019 WL 6219223, at *7.1 Planner 5D chose to do that latter. It submitted two registration applications to the Copyright Office and, on December 20, 2019, obtained

1 Planner 5D was also given leave to explain “the originality or creativity of the objects, scenes, and compilations of objects and scenes” and “that copyrightable elements were copied.” Planner 5D I, 2019 WL 6219223, at *1. On amendment, Planner 5D insufficiently alleged an original selection or arrangement for its copyright claim in the alleged compilation of objects, and that portion of its copyright claim was dismissed with prejudice. Planner 5D II, 2020 WL 4260733, at registrations for “Planner 5D objects” and “Planner 5D scenes” for works completed and published in 2019. It subsequently filed Case No. 20-cv-2198 with a single count for infringement of those two copyrights. I dismissed Planner 5D’s copyright infringement claims again because the alleged works were from 2016 and had not been registered. I could not conclude that the copyright registrations Planner 5D obtained for works completed and published in 2019 covered the alleged works from 2016. I gave Planner 5D leave to fix that discrepancy. Planner 5D II, 2020 WL 4260733, at * 4– 5. On September 14, 2020, Planner 5D submitted two new applications to the Copyright Office, seeking to register all Planner 5D objects created through January 13, 2016 and all public gallery scenes created through February 17, 2016. See Copyright Complaint (“Copyright Compl.”) [Dkt. No. 1] in Case No. 20-cv-8261-WHO, ¶ 96. On November 16, 2020, the Copyright Office refused each of the applications. It wrote:

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