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Imapizza, LLC v. At Pizza Limited
965 F.3d 871
| D.C. Cir. | 2020
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Background

  • IMAPizza operates the U.S. &pizza chain and sought U.K. expansion; At Pizza ("@pizza") is a U.K. company that opened a similar restaurant in Edinburgh.
  • At Pizza's principals visited &pizza locations in the U.S., photographed restaurants, downloaded copyrighted photos from U.S. servers, and used the information to build the Edinburgh store.
  • IMAPizza sued in D.C. for copyright infringement, Lanham Act trademark/unfair competition, D.C. common-law trespass, and (under U.K. law) passing off.
  • Defendants moved to dismiss for lack of personal jurisdiction and for failure to state a claim; the district court dismissed the federal claims as extraterritorial or inadequately pleaded and dismissed the U.K. passing-off claim for lack of subject-matter jurisdiction.
  • The D.C. Circuit affirmed: it held IMAPizza failed to plead domestic copyright or Lanham Act effects, and failed to plead an unauthorized entry for trespass; the district court did not abuse its discretion on leave to amend, surreply, or declining supplemental jurisdiction.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Leave to amend IMAPizza asked for leave in opposition brief and should have been allowed to amend if dismissal warranted Defendants noted IMAPizza never filed a formal motion or attached a proposed amended complaint per local rules Denied: court did not abuse discretion; informal request failed to satisfy Local Rules and was forfeited
Copyright extraterritoriality / domestic infringement Downloads from U.S. servers and photos taken in U.S. are domestic acts or essential steps giving U.S. copyright reach Copies are "fixed" where the received copy is made/perceived (here, in the U.K.); alleged conduct culminated abroad Denied: IMAPizza failed to plead a domestic act of infringement; downloads from U.S. servers without alleging downloading in the U.S. or unauthorized U.S. uploading are insufficient
Lanham Act extraterritoriality U.S. tourists/students, a confused potential investor, and defendants’ U.S. visits show effects on U.S. commerce Defendants operate only in the U.K., make no U.S. sales or ads, and cause no plausible U.S. commercial harm Denied: even under the Ninth Circuit's "some effect" test, IMAPizza did not plausibly allege an effect on U.S. commerce
Trespass (D.C. common law) Defendants’ visits and photography were for illicit copying, so consent to enter was vitiated Restaurants were open to the public; plaintiffs did not allege access to non-public areas or conditions on photography Denied: no unauthorized entry alleged; fraudulent or covert entry claims fail absent access to nonpublic areas or other specific invasions of possessory interests
Supplemental jurisdiction / U.K. passing off If federal claims remanded, district court should exercise supplemental jurisdiction over passing-off claim IMAPizza failed to establish diversity jurisdiction when asked; comity counseled against injunction for foreign conduct Denied: dismissal for lack of subject-matter jurisdiction and refusal to exercise supplemental jurisdiction was not an abuse of discretion

Key Cases Cited

  • RJR Nabisco Inc. v. European Community, 136 S. Ct. 2090 (2016) (sets framework for extraterritorial application of U.S. statutes)
  • Spanski Enters., Inc. v. Telewizja Polska, S.A., 883 F.3d 904 (D.C. Cir. 2018) (Copyright Act may apply domestically when conduct relevant to statute’s focus occurs in the U.S.)
  • Steele v. Bulova Watch Co., 344 U.S. 280 (1952) (Lanham Act applied to foreign sales that produced forbidden results within the U.S.)
  • Columbia Pictures Indus., Inc. v. Fung, 710 F.3d 1020 (9th Cir. 2013) (transmission/upload-download analysis and where copies are made)
  • Desnick v. American Broadcasting Cos., Inc., 44 F.3d 1345 (7th Cir. 1995) (fraudulent consent and limits on trespass liability)
  • Trader Joe’s Co. v. Hallatt, 835 F.3d 960 (9th Cir. 2016) (Lanham Act extraterritoriality—"some effect" standard)
  • Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340 (1991) (copyright originality/copying standard)
Read the full case

Case Details

Case Name: Imapizza, LLC v. At Pizza Limited
Court Name: Court of Appeals for the D.C. Circuit
Date Published: Jul 17, 2020
Citation: 965 F.3d 871
Docket Number: 18-7168
Court Abbreviation: D.C. Cir.