Newborn v. Yahoo! Inc.Newborn v. Yahoo! Inc.
MEMORANDUM OPINION
The plaintiff, Terry Newborn, brought this action against Yahoo! Inc. and Google Inc. (“the defendants”) for copyright and trademark infringement in violation of the Copyright Act,
I. Background
The facts and disposition of the merits in this case are discussed in this Court’s prior Memorandum Opinion and will only be summarized here. The plaintiff, Terry Newborn, doing business as Government Publications, Inc., Capital Publications, Inc., and Capitol Publications, Inc., owned and operated a number of websites, which, according to Newborn, contained material protected under the Copyright and Lan-ham Acts.
Id.
at 184. In April 2004, Newborn sued defendants Yahoo! and Google, which operate Internet search engine websites, initially alleging that the defendants had violated the Digital Millennium Copyright Act, Pub.L. No. 105-304, 112 Stat. 2860 (1998) (“DMCA”), by knowingly allowing third parties to infringe on Newborn’s copyrighted material even after Newborn placed the defendants on notice of the allegedly infringing activity.
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Complaint (“Compl.”) ¶¶ 9-23. The defendants moved to dismiss Newborn’s original complaint in the Summer of 2004. Defendant Yahoo! Inc.’s Motion to Dismiss the Complaint; Defendant Google Inc.’s Motion to Dismiss the Complaint. Newborn responded to both motions and then, three days after the defendants had filed their joint reply, filed an amended complaint which rendered the motions to dismiss the original complaint moot.
4
See
Defs.’ Mem. at 2. This amended complaint omitted Newborn’s DMCA claim and instead alleged violations of the Copyright Act and the Lanham Act.
5
See generally
Amended Complaint (“Am.Compl”). All of the claims alleged pursuant to the DMCA in Newborn’s original complaint were again asserted pursuant to the Copyright Act and, to a limited extent, the Lanham Act in the amended complaint.
6
Compare
Compl.
Noting that the plaintiffs complaint was “riddled with vague, confusing, and contradictory statements making deciphering the basis for the plaintiffs Copyright Act claim a hopeless endeavor,” the Court concluded that Newborn failed to state a claim under the Copyright Act. Id. at 187. Among other reasons, this Court cited the impossibility of determining what materials had allegedly been infringed, id., and Newborn’s failure to allege any facts to support a conclusion that the defendants substantially participated in any acts of infringement, id. at 189.
This Court similarly noted Newborn’s failure to allege that his “domain names” were, in fact, trademarks that were protected under the Lanham Act. Id. at 190. This ruling was based on the finding that “besides the conclusory allegation that the defendants allowed unauthorized third party use of the plaintiffs alleged trademark, there are simply no facts in the complaint to support such an allegation.” Id. at 191. This Court therefore dismissed Newborn’s entire case with prejudice. Id. at 191 n. 10.
The defendants now request that this Court award them attorney’s fees, expenses, and costs resulting from this litigation. Defs.’ Mot. at 1. The defendants seek a total award against the plaintiff of $92,671.96, which includes $89,803.00 in attorney’s fees and $2,868.96 in expenses and costs.
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Defs.’ Mem. at 8. Specifically, the defendants seek $42,851.27 in fees, expenses, and costs associated with their first motion to dismiss, and $49,820.69 in fees, expenses, and costs associated with their second motion to dismiss. Defs.’ Reply at 6. The defendants further request that plaintiffs counsel, pursuant to
II. Legal Analysis
As noted above, the defendants seek attorney’s fees, expenses and costs under the Copyright Act, the Lanham Act, and
(A) The Copyright Act
The relevant portion of the Copyright Act provides the following:
In any civil action under this title, the court in its discretion may allow the recovery of full costs by or against any party other than the United States or an officer thereof. Except as otherwise provided by this title, the court may also award a reasonable attorney’s fee to the prevailing party as part of the costs.
The defendants argue that they are entitled to an award of reasonable attorney’s fees and costs under
This Court’s prior opinion provides ample support for its discretionary decision to award reasonable attorney’s fees and costs to the defendants under
The Court noted several ways in which the plaintiff failed to state a claim of direct copyright infringement. First, it was “virtually impossible to determine what materials ha[d] allegedly been infringed.”
Id.
at 187. Second, to the extent the plaintiffs complaint alleged infringement of certain items, the allegations were “clearly contradictory to other statements in both the complaint and the plaintiffs [other]
The Court then went on to note that “the plaintiffs complaint also fails to allege any facts to support a conclusion that the defendants substantially participated in the infringing activities.” Id. at 189. The Court described the complaint as containing only “cryptic suggestions” and “brief, conclusory statements, which are accompanied by no factual support.” Id. For this and the above reasons, the Court ultimately determined that the plaintiff “failed to state a cognizable claim under the Copyright Act.” Id.
As described above, this Court’s assessment of the plaintiffs complaint reveals numerous factuаl and legal deficiencies concerning the essential elements of his Copyright Act claim. These deficiencies show that the plaintiffs complaint was both frivolous and objectively unreasonable and, therefore, that an award of reasonable attorney’s fees and costs to the defendants is appropriate under
Although the Court’s decision to award reasonable attorney’s fees and costs is the product of its own discretion, it comports with the decisions of other members of this and other courts.
See, e.g., Pannonia Farms, Inc. v. Re/Max Int’l, Inc.,
(B) The Lanham Act
The defendants next argue that they are entitled to attorney’s fees as the prevailing party pursuant to the Lanham Act,
Congress did not essay in the Lanham Act’s text or related commentary precise definition of cases qualifying as “exceptional” for fee award purposes. The barely two pages of legislative history in point indicate, with respect to recovery of fees by defendants, a concern to discourage suits designed to harass. Furthermore, we think it fair to assume that Congress did not intend rigidly to limit recovery of fees by a defendant to the rare case in which a court finds that the plaintiff “acted in bad faith, vexatiously, wantonly, or for oppressive reasons”; that exception to the “American rule,” the Supreme Court has clarified, is always available unless Congress expressly forbids its operation. Something less than “bad faith,” we believe, suffices to mark a case as “exceptional.”
* * ❖ * * *
[W]e think “exceptional,” as Congress used the word in ... the Lanham Act, is most reasonably read to mean what the word is generally understood to indicate — uncommon, not run-of-the-mine.
Noxell Corp.,
The defendants argue that it is “plainly unreasonable for a party to pursue a cause of action for trademark infringement where that party holds no protected trademarks and fails even to allege any facts suggesting wrongful use of those purported trademarks.” Defs.’ Mem. at 5. The plaintiff, on the other hand, argues that bringing his case was not unreasonable because he “reasonably believed at the time of filing [the] action that his registered domain names were protected under Title 15.” Pl.’s Opp’n at 3. While the Court recognizes that the plaintiffs trademark infringement claim contains factual and legal deficiencies similar to those of the plaintiffs copyright claim, for the following reasons the Court concludes that this is not an “exceptional” case under the relevant statute, and thus chooses not to
This Court previously ruled that the plaintiffs trademark infringement claim was “wholly without merit,” relied on inap-posite statutes, and contained “vague allegations.”
Newborn,
391 F. Supp 2d at 190, 190 n. 9. The Court further concluded that “besides the conclusory allegation that the defendants allowed unauthorized third party use of the plaintiffs alleged trademark, there are simply no facts in the complaint to support such an allegation.”
Id.
at 191. Nonetheless, there is no evidence that the original or amended complaints, though deficient in many respects, were “designed to harass” the defendants.
See Noxell,
In
Noxell,
the Circuit Court concluded that an award of attorney’s fees to the defendants was appropriate under the Lanham Act in a situation where the plaintiff brought a trademark infringement action in the District of Columbia against a two-facility, California-based restaurant business and its sole proprietor, a California resident.
It is clear that the plaintiffs conduct in this case does not rise to the level of what the Court in
Noxell
found to be “altogether exceptional, indeed ... remarkable” conduct.
Id.
at 527 (internal quotation marks and citation omitted). The defendants have made no showing that the plaintiff was motivated by willfulness or bad faith in bringing the underlying action.
See ALPO Petfoods,
(C)
The defendants next argue that this Court should order the plaintiffs counsel to personally reimburse the defendants for their attorney’s fees and costs incurred in preparing and litigating the Motion to Dismiss the Amended Complaint pursuant to
Under the less stringent standard of “recklessness,” courts may impose sanctions for an attorney’s “deliberate action in the face of a known risk, the likelihood or impact of which the actor inexcusably underestimates or ignores.”
Wallace,
From the
LaPrade
and
Wallace
decisions, it is clear that the defendants’
On the other hand, in
Wallace,
the Circuit Court reversed an imposition of
(D) The Amount of Fees Awarded
Having concluded that the defendants should be awarded reasonable attorneys fees and costs pursuant to the Copyright Act, the Court must now determine the proper amount of the award. Given that the Court has decided to award fees and costs under the Copyright Act, but has denied any awаrd under the Lanham Act, the first question to address is whether the defendants are entitled to fees associated with the litigation of both claims, or whether the award should be reduced to reflect only the work performed in litigating the Copyright Act claim. For the following reasons, the Court concludes that the de
The Copyright Act authorizes the Court, in its discretion, to “award a
reasonable
attorney’s fee to the prevailing party.”
Moreover, the defendants do not cite, and this Court cannot find, any case holding that where a party prevails on a claim for attorney’s fees under the Copyright Act but fails to meet the more restrictive attorney’s fees standard of the Lanham Act, the party is nevertheless entitled to fees associated with their defense of the Lanham Act claim.
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To the contrary,
In light of this conclusion, the Court must now determine, if possible, how much of the requested $89,803.00 in attorney’s fees and costs reрresents a reasonable award for the time expended in defense of Newborn’s Copyright Act claim. As one member of this Court recently explained, “[attorney’s fees are calculated based on number of hours reasonably expended on the litigation multiplied by a reasonably hourly rate.”
Harrison Music Corp.,
III. Conclusion
For the reasons set forth above, the Court grants the defendants’ motion for attorney’s fees, expenses, and costs under
SO ORDERED, this 23rd day of May, 2006. 16
ORDER
In accordancе with the Memorandum Opinion that accompanies this Order, it is hereby
ORDERED that the defendants’ motion for attorney’s fees, expenses, and costs under
ORDERED that the defendants shall submit, by June 12, 2006, a detailed accounting of the time expended and costs incurred in litigating against the plaintiffs Copyright Act claim in connection with the second motion to dismiss. Any response by the plaintiff to the defendants’ submission shall be filed by June 26, 2006, and the defendants’ reply, if any, shall be filed by July 6, 2006. The Court will then enter an award for attorney’s fees and costs consistent with what has been indicated in the Memorandum Opinion.
Notes
. As discussed infra, the plaintiff's original complaint in this action solely stated a claim under the Digital Millennium Copyright Act, Pub.L. No. 105-304, 112 Stat. 2860 (1998).
. The following papers have been submitted to the Court in connection with the motion: (1) the Defendants’ Memorandum of Points and Authorities in Support of Their Motion for Attorney's Fees, Expenses, and Costs ("Defs.’ Mem."); (2) the Declaration of Thomas P. Olson ("Olson Decl."); (3) the Plaintiff's Opposition to Defendants’ Motion for Attorney's Fees, Expenses, and Costs ("Pl.'s Opp'n”); and (4) the Defendants' Reply to
. Newborn generically alleged "violations of the Digital Millennium Copyright Act,” Compl. ¶ 9, and it is therefore entirely unclear under which provision of the DMCA the original complaint was brought. Nevertheless, because the DMCA amends Title 17 of the United States Code,
see
Pub.L. No. 105-304, 112 Stat. 2860, and because
. In their original motion to dismiss, the defendants argued,
inter alia,
that Newborn had not stated a claim upon which relief could he granted because the DCMA "in relevant part, creates a limitation on liability, not a cause of action,” and therefore could not be violated by the defendants as Newborn had alleged.
See
Defendant Yahoo! Inc.’s Motion to Dismiss the Complaint at 1; Memorandum of Points and Authorities in Support of Defendant Yahoo! Inc.’s Motion to Dismiss the Complaint ("Yahoo! Mem.”) at 7-8. The defendants identify
. In addition to restating Newborn’s claims of copyright infringement, the amended complaint alleged that the defendants permitted third parties to use his “domain names” as webpage keywords, description meta tags, and web addresses in violation of the Lanham Act.
See Newborn,
. The Court surmises that the wholesale substitution of the Copyright Act and Lanham Act for the DMCA in the amended complaint was, as Newborn contends, an "attempt[] to cure or correct аny possible flaws in the Complaint.” Pl.'s Opp’n at 3.
. The defendants have waived their prior, unspecified request for additional fees and costs incurred in bringing the motion currently before the Court. Defs.' Reply at 6.
. In their reply brief, the defendants have presented an alternative, conditional request to the Court. Defs.' Reply at 5-6. Under this alternative, the defendants claim that they would accept an award against die plaintiff that was limited to fees and costs associated with the first motion to dismiss, as long as the Court held plaintiff's counsel personally liable under
.In his declaration, Olson further represents that the $89,803.00 total is, "out of an abundance of caution ..., $10,000 less than the actual fees incurred by the defendants.” Olson Deck ¶ 7 (emphasis in original); see also Defs.' Mem. at 7.
. Extending this argument that conceivably had been raised by the plaintiff, the Court suggested it was “quite possible that the plaintiff assumed that if he owned the copyright for one item, this Court would also have jurisdiction to hear his Copyright Act challenges regarding other items.”
Newborn,
. The defendants cite only this case,
Boney,
. As mentioned
supra,
the defendants alternatively request that the Court hold plaintiff's counsel exclusively liable for the costs and fees associated with the second motion while holding the plaintiff liable for the costs and fees associated with the first motion. Because the Court declines to award attorney’s fees based on the defendants'
. While
LaPrade
and
Wallace
provide guidance to the Court in its application of
. It appears clear that if the Court had decided to award fees under the Lanham Act and denied them under the Copyright Act, the defendants would only be entitled to compensation for work performed in connection with the Lanham Act claim.
See, e.g., U.S. Structures, Inc. v. J.P. Structures, Inc.,
. The Supreme Court, in
Hensley v. Eckerhart,
. An order consistent with the Court's ruling accompanies this Memorandum Opinion.