RUSSELL G. GREER v. JOSHUA MOON, an individual; KIWI FARMS, a website
No. 21-4128
United States Court of Appeals for the Tenth Circuit
October 16, 2023
ROSSMAN, Circuit Judge.
PUBLISH. On Appeal from the United States District Court for the District of Utah, Case No. 2:20-CV-00647-TC. FILED October 16, 2023, Christopher M. Wolpert, Clerk of Court.
Gregory Skordas of Skordas & Caston, LLC, Salt Lake City, Utah, for Appellees.
Before BACHARACH, MORITZ, and ROSSMAN, Circuit Judges.
ROSSMAN, Circuit Judge.
When he discovered his copyrighted book and song online, Plaintiff Russell Greer sent a “takedown notice” to Defendants Joshua Moon and his
I
A
To “promote the Progress of Science and useful Arts,” the Constitution empowers Congress to “secur[e] for limited Times to Authors and Inventors the exclusive Right to their respective Writings and Discoveries.”
Nearly fifty years ago, to address “significant changes in technology affect[ing] the operation of the copyright law,” H.R. Rep. No. 94-1476, at 47, Congress enacted the Copyright Act of 1976, Pub. L. No. 94-553, 90 Stat. 2541 (codified at
While the Copyright Act itself does not “expressly render anyone liable for infringement committed by another,” Sony Corp., 464 U.S. at 434,1 federal courts have long recognized and applied theories of secondary liability, see Metro-Goldwyn-Mayer Studios, Inc. v. Grokster, Ltd., 545 U.S. 913, 930 (2005) (explaining “doctrines of secondary liability emerged from common law principles and are well established in the law“). In applying secondary liability to copyright infringement, the Supreme Court explained the imposition of liability on those who have not themselves directly
There are several flavors of secondary liability for copyright infringement.3
Vicarious liability attaches when the secondary infringer has “an obvious and direct financial interest in the exploitation of copyrighted materials” and “the right and ability to supervise” the direct infringer. Shapiro, Bernstein & Co. v. H.L. Green Co., 316 F.2d 304, 307 (2d Cir. 1963); see also Diversey v. Schmidly, 738 F.3d 1196, 1204 (10th Cir. 2013) (drawing this test from the Second Circuit‘s opinion in Gershwin Publishing Corp. v. Columbia Artists Management, Inc., 443 F.2d 1159, 1162 (2d Cir. 1971)). Vicarious liability has no knowledge requirement, based as it is on the
Under the inducement rule, the Supreme Court has held “one who distributes a device with the object of promoting its use to infringe copyright, as shown by clear expression or other affirmative steps taken to foster infringement, is liable for the resulting acts of infringement by third parties.” Grokster, 545 U.S. at 936–37. Inducement requires a showing of “affirmative intent,” such as “active steps . . . taken to encourage direct infringement” or “advertising an infringing use.” Id. at 936 (quoting Oak Indus., Inc. v. Zenith Elec. Corp., 697 F. Supp. 988, 992 (N.D. Ill. 1988)); see also id. at 937 (“The inducement rule . . . premises liability on purposeful, culpable expression and conduct . . . .“).
Mr. Greer proceeds under a third theory, contributory liability (or contributory infringement). Applying this theory in Diversey, we explained “contributory liability attaches when the defendant causes or materially contributes to another‘s infringing activities and knows of the infringement.” 738 F.3d at 1204 (citation omitted); see also Grokster, 545 U.S. at 930 (“One infringes contributorily by intentionally inducing4 or
“One way of establishing contributory liability is by showing a defendant ‘authorized the infringing use.‘” Diversey, 738 F.3d at 1204 (quoting Softel, Inc. v. Dragon Med. & Scientific Comms., Inc., 118 F.3d 955, 971 (2d Cir. 1997)); see also 3 Melville B. Nimmer & David Nimmer, Nimmer on Copyright § 12.04[A][3][a] (2023) (“[I]n order to be deemed a contributory infringer, the authorization or assistance must bear some direct relationship to the infringing acts, and the person rendering such assistance or giving such authorization must be acting in concert with the infringer.“).
B
Mr. Moon owns and operates Kiwi Farms, a site “built to exploit and showcase those Moon and his users have deemed to be eccentric and
After he sued a well-known pop star in 2016, Kiwi Farms users turned their attention to Mr. Greer and began “a relentless harassment campaign“; this effort included “direct harassment via phone, email, and social media,” “schemes that successfully got him fired from his workplace and evicted,” and the creation of “false social media profiles that impersonate him with names . . . that mock his physical and developmental disabilities.” Appellant Br. at 19 (citing RI.13–15, ¶¶ 18–19, 21, 24, 28).
After “his book had hit a snag because of the bad reviews” allegedly left by Kiwi Farms users, Mr. Greer opted “to write a song because he felt he could bring awareness better with a song.” RI.19. He “[i]nvest[ed] his own money writing and producing the song with professionals . . . .” RI.19.
Within days, however, Mr. Greer discovered his new song had been uploaded to Kiwi Farms. A Kiwi Farms user under the name “Russtard” encouraged its dissemination on the site “so no one else accidentally gives Russell [Greer] money.” RI.20.
Convinced now that Kiwi Farms users “willfully infringed on [his] copyright” and “openly conspired to steal [his] works and deprive [him] of money,” Mr. Greer “decided to prepare for legal action.” RI.20. Pursuant to the procedures described in the Digital Millennium Copyright Act,6 on April 28, 2019, Mr. Greer sent the following takedown notice to Mr. Moon. The notice identified the infringing material and the location of the “unauthorized and infringing copies . . . .” RI.201.
C
In September 2020, Mr. Greer sued Mr. Moon and Kiwi Farms in federal district court in Utah. He alleged contributory copyright infringement under federal law and several claims under Utah law: electronic communications harassment, false light, defamation, and defamation by implication. He simultaneously moved for a preliminary injunction enjoining Mr. Moon from operating Kiwi Farms during the pendency of this case “and/or removing every webpage about Greer” from the site. RI.41. As relevant to his contributory infringement claim, Mr. Greer alleged:
Defendants have knowingly and willfully permitted, and continue to permit, the infringement of Greer‘s works by materially contributing to the infringement by running and managing a website that allows users to steal and dump everything about Greer. Moon has even defended such action on his website‘s FAQs page and has even explained to Greer through email why he believes he is allowed to infringe on his
works, claiming Fair Use, and has posted the email conversation for many people to see and comment on, and in turn, harass Greer.
RI.29.7
In April 2021, Mr. Moon and Kiwi Farms moved to dismiss for failure to state a claim under
On September 21, 2021, the district court granted Mr. Moon and Kiwi Farms’ motion to dismiss. The district court explained contributory infringement required allegations of “(1) direct copyright infringement by a third party; (2) the defendant knew of the direct infringement; and (3) the defendant intentionally caused, induced, or materially contributed to the direct infringement.” RI.134 (citation omitted). Applying those principles to the complaint before it, the district court held:
Mr. Greer has sufficiently alleged prongs (1) and (2) of contributory copyright infringement. What is missing is the Defendants’ intentionally causing, inducing, or materially contributing to the infringement. It is not enough for contributory liability for a defendant to have merely “permitted”
the infringing material to remain on the website, without having “induc[ed] or encourage[ed]” the initial infringement. The Tenth Circuit has not held otherwise.
RI.135 (citation omitted) (alterations in original). Accordingly, the district court dismissed the case.
On October 26, 2021, the district court denied Mr. Greer‘s Rule 59(e) motion to alter or amend the judgment. Mr. Greer appealed to this court the same day.
II
On appeal, Mr. Greer argues his pro se complaint, construed liberally, adequately “alleged facts demonstrating [Mr. Moon and Kiwi Farms] had knowingly induced, encouraged, and materially contributed to direct infringements,” and so “stated a claim for contributory copyright infringement” sufficient to survive a motion to dismiss. Appellant Br. at 26. As we explain, we agree.
A
We review de novo the district court‘s dismissal of Mr. Greer‘s pro se complaint under Rule 12(b)(6). Serna v. Denver Police Dep‘t, 58 F.4th 1167, 1169 (10th Cir. 2023).8
In the course of this review, we construe Mr. Greer‘s pro se complaint liberally and hold him “to a less stringent standard than formal pleadings drafted by lawyers.” Hall v. Bellmon, 935 F.2d 1106, 1110 (10th Cir. 1991) (citing Haines v. Kerner, 404 U.S. 519, 520-21 (1972)). While we do not act as Mr. Greer‘s advocate, if we “can reasonably read the pleadings to state a
B
For his complaint to survive a motion to dismiss under a contributory liability theory, Mr. Greer had to plausibly allege: (1) his copyrighted work was directly infringed by a third party, (2) Mr. Moon and Kiwi Farms “kn[ew] of the infringement,” and (3) Mr. Moon and Kiwi Farms “cause[d] or materially contribute[d] to [third parties‘] infringing activities.” Diversey, 738 F.3d at 1204.9 We address each in turn.
1
The district court correctly concluded Mr. Greer “sufficiently alleged” “direct copyright infringement by a third party.” RI.134–35.
Mr. Greer‘s complaint alleged copyright violations related to his book and music. Mr. Greer provided the registration numbers and effective dates for both. RI.15, 17 (providing registration number of TX0008469519 and registration date of October 2017 for the book); RI.19 (providing registration number of SRu001366535 and registration date of April 2019 for the song). He included certificates from the United States Register of Copyrights. And
Recall, the Copyright Act grants copyright holders like Mr. Greer the generally exclusive rights “to reproduce the copyrighted work in copies” and “to distribute copies . . . of the copyrighted work to the public . . . .”
In his complaint, Mr. Greer alleged he discovered the book “had been illegally put onto Kiwi Farms” in January 2018. RI.18. “Somebody,” he explained, “created a copy of [his] book and put it in a Google Drive that is accessible on Kiwi Farms.” RI.18. The complaint also included allegations “[o]ther users on Kiwi Farms have created unauthorized audio recordings of” the book “and have put them on various sites.” RI.19. Kiwi Farms, Mr. Greer continued, “has links to these audio recordings.” RI.19. As to the song, Mr. Greer alleged he found an “MP3 of his song was . . . on Kiwi Farms” in April 2019. RI.20. A Kiwi Farms user posted the song with the comment “Enjoy this repetitive turd.” RI.20. Another user commented, “Upload it here so no one accidentally gives [Mr. Greer] money.” RI.20. The complaint
Based on the complaint, we conclude, like the district court, Mr. Greer plausibly alleged direct, third-party infringement of copyright under
2
The district court also concluded Mr. Greer “sufficiently alleged” “the defendant[s] knew of the direct infringement.” RI.134–35. Here, too, we agree.
Mr. Greer‘s takedown notices complied with
While Mr. Moon debated the merits and style of Mr. Greer‘s takedown notices—claiming in emails the infringements were protected under fair use and mocking the use of a “template” for the DMCA request—the complaint sufficiently alleged that Mr. Moon knew of the alleged direct infringement.
3
For contributory liability to attach, the final Diversey prong requires a defendant to “cause” or “materially contribute to” third-parties’ direct infringement. Diversey, 738 F.3d at 1204. The Supreme Court has described
The district court correctly explained the Diversey factors and rightly identified the liberal pro se pleading standard. Nevertheless, it dismissed Mr. Greer‘s contributory infringement claim after concluding, “[w]hat is missing is the Defendants’ intentionally causing, inducing, or materially contributing to the infringement.” RI.135. “It is not enough,” the district court continued, “for a defendant to have merely ‘permitted’ the infringing material to remain on the website, without having ‘induc[ed] or encourage[ed]’ the initial infringement.”11 RI.135 (citing Grokster, 545 U.S. at 930).
We discern no error in the district court‘s explanation that contributory liability requires more than “merely ‘permitting’ the infringing material to remain on the website.” RI.135. And we conclude Kiwi Farms and Mr. Moon accurately state the law when they argue “a website owner or operator must do something other than allow an infringing use to exist on their website.” Appellees Br. at 35.
But these general principles of law are of little help here, where the record shows—and Mr. Greer‘s complaint plausibly alleged—far more than
When Mr. Greer discovered the book had been copied and placed in a Google Drive on Kiwi Farms, he “sent Mr. Moon requests to have his book removed . . . .” RI.18. Mr. Moon pointedly refused these requests. RI.18. In fact, instead of honoring the requests, Mr. Moon posted his email exchange with Mr. Greer to Kiwi Farms, belittling Mr. Greer‘s attempt to protect his copyrighted material without resort to litigation. RI.18–19.
After the email request, Kiwi Farms users continued to upload audio recordings of Mr. Greer‘s book, followed by digital copies of his song. When Mr. Greer discovered the song on Kiwi Farms, he sent Mr. Moon a takedown notice under the DMCA. Mr. Moon not only refused to follow the DMCA‘s process for removal and protection of infringing copies, he “published [the] DMCA request onto [Kiwi Farms],” along with Mr. Greer‘s “private contact information.” RI.22. Mr. Moon then “emailed Greer . . . and derided him for using a template for his DMCA request” and confirmed “he would not be removing Greer‘s copyrighted materials.” RI.23. Following Mr. Moon‘s mocking refusal to remove Mr. Greer‘s book and his song, Kiwi Farms users “have continued to exploit Greer‘s copyrighted material,” including two additional songs and a screenplay. RI.23.
Mr. Greer‘s complaint alleged Mr. Moon knew Kiwi Farms was an audience that had been infringing Mr. Greer‘s copyrights and would happily continue to do so. Indeed, Kiwi Farms users had been uploading Mr. Greer‘s copyrighted materials with the explicit goal of avoiding anyone
IV
We hold Mr. Greer has stated plausible claims of contributory copyright infringement against Mr. Moon and Kiwi Farms. The judgment of the district court is REVERSED and this case is REMANDED for further proceedings.
Notes
In any case, Mr. Moon and Kiwi Farms did not plead the affirmative defense of fair use, and, “[a]s a general rule, a defendant waives an affirmative defense by failing to plead it.” Burke v. Regalado, 935 F.3d 960, 1040 (10th Cir. 2019) (citing Bentley v. Cleveland Cnty. Bd. of Cnty. Comm‘rs, 41 F.3d 600, 604 (10th Cir. 1994)); see also
Perhaps to get around the bar of waiver, Mr. Moon and Kiwi Farms describe fair use as “more than an affirmative defense; the language of the statute makes it clear that fair use is not infringement at all.” Appellees Br. at 33 (citing
Because we conclude the issue is resolved under controlling precedent in this circuit—including Grokster and Diversey—we express no view of the Ninth Circuit‘s contributory infringement framework.
