2:22-cv-00299
C.D. Cal.Dec 6, 2022Background
- USA Sumo (Superama Corp.) produced and owned videos/photos from the May 12, 2018 US Sumo Open in Long Beach and registered the work with the U.S. Copyright Office.
- Tokyo Broadcasting System Television, Inc. (TBS), a Japan-based broadcaster, inquired about a license but allegedly downloaded the full footage from YouTube and rebroadcast a 125-second edited segment in Japan without authorization or payment.
- In this suit (Corrected Amended Complaint), Superama alleges TBS circumvented YouTube’s technological protection measures (via “hacking” or “stream ripping”) and asserts a DMCA anti‑circumvention claim (17 U.S.C. § 1201) plus three claims under Japan’s 1970 Copyright Law.
- The same parties litigated these events previously in the Central District of California; that prior suit (copyright infringement under 17 U.S.C. § 106) was dismissed for lack of subject‑matter jurisdiction and affirmed by the Ninth Circuit.
- Superama now argues § 1201 creates a domestic U.S. copyright claim because the technological measures and servers were in the U.S., while TBS contends all operative misconduct occurred in Japan.
- The Court treated the motion as a facial Rule 12(b)(1) attack, accepted the CAC’s allegations as true, and found additional factual pleading could not cure the jurisdictional defect.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 1201 of the DMCA applies extraterritorially so federal jurisdiction exists | Circumvention occurred in the U.S. (YouTube protections and servers are U.S.-based; TBS circumvented those protections) | All circumvention, downloading, and broadcasting occurred in Japan; U.S. copyright law does not reach wholly foreign acts | Court: Plaintiff did not rebut presumption against extraterritoriality; § 1201 does not apply here because circumvention and access occurred in Japan; no subject‑matter jurisdiction |
| Whether Nabisco two‑step test supports domestic application of § 1201 | Statute should be analyzed section‑by‑section; § 1201’s technological focus implies cross‑border reach | Even under Nabisco, statutory text and history do not show clear congressional intent for extraterritorial reach | Court: Applied Nabisco; found no clear congressional intent to apply § 1201 abroad and Plaintiff failed step two (conduct relevant to statute’s focus not domestic) |
| Whether the location of servers or storage in the U.S. makes circumvention domestic | Storing an exact copy on U.S. servers means circumvention/access is domestic | Storage location alone is insufficient; where the circumvention and access were initiated/completed controls | Court: Rejected plaintiff’s technical parsing; storage in U.S. does not create jurisdiction when circumvention occurred abroad |
| Leave to amend / claim‑splitting / futility | Requested leave to amend to add facts showing circumvention in U.S.; argued prior dismissal lacked merits so new claims permissible | Defendant argued this is claim‑splitting and amendment would not cure jurisdictional defect | Court: Declined to dismiss for claim‑splitting (not briefed), but denied leave to amend as futile and dismissed without prejudice for lack of jurisdiction |
Key Cases Cited
- Subafilms, Ltd. v. MGM–Pathe Communications Co., 24 F.3d 1088 (9th Cir. 1994) (U.S. copyright law has no extraterritorial application)
- RJR Nabisco, Inc. v. European Community, 579 U.S. 325 (2016) (two‑step framework for extraterritoriality analysis)
- Morrison v. National Australia Bank, Ltd., 561 U.S. 247 (2010) (presumption against extraterritoriality)
- WesternGeco LLC v. ION Geophysical Corp., 138 S. Ct. 2129 (2018) (use statute’s focus to determine domestic application)
- Synopsys, Inc. v. AzurEngine Techs., Inc., 401 F. Supp. 3d 1068 (S.D. Cal. 2019) (focus of § 1201 is preventing circumvention to gain access)
- Kirtsaeng v. John Wiley & Sons, Inc., 568 U.S. 519 (2013) (interpretation of phrases like “under this title” in copyright statute)
- Superama Corp., Inc. v. Tokyo Broad. Sys. Television, Inc., [citation="830 F. App'x 821"] (9th Cir. 2020) (affirming dismissal of prior infringement suit for lack of jurisdiction)
- MDY Indus., LLC v. Blizzard Entm't, Inc., 629 F.3d 928 (9th Cir. 2010) (DMCA legislative history and the ‘‘breaking into a locked room’’ analogy)
- Allarcom Pay Television, Ltd. v. General Instrument Corp., 69 F.3d 381 (9th Cir. 1995) (completion of infringement determined by where signal was received/viewed)
- Nestle USA, Inc. v. Doe, 141 S. Ct. 1931 (2021) (Supreme Court recognizing two‑step extraterritoriality framework)
