revok reyes steel opposition to cavalli defendants' motion to dismiss (49)

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 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 PLAINTIFFS’ OPPOSITION TO 1     E    R    I    K    S    O    N     L    A    W     G    R    O    U    P    2    0    0    N  .    L   a   r   c    h   m   o   n    t    B    l   v    d  .    L   o   s    A   n   g   e    l   e   s    C    A    9    0    0    0    4    T   e    l   :    (    3    2    3    )    4    6    5      3    1    0    0    F   a   x   :    (    3    2    3    )    4    6    5      3    1    7    7  ERIKSON LAW GROUP  David Alden Erikson (SBN 189838) [email protected] S. Ryan Patterson (SBN 279474) [email protected] 200 North Larchmont Boulevard Los Angeles, California 90004 Telephone: 323.465.3100 Facsimile: 323.465.317 b7 Attorneys for Plaintiffs UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION JASON WILLIAMS, an individual; VICTOR CHAPA, an individual; and JEFFREY RUBIN, an individual, Plaintiffs, v. ROBERTO CAVALLI S.P.A., an Italian corporation; STAFF INTERNATIONAL S.P.A., an Italian corporation; STAFF USA, INC., a Delaware corporation; NORDSTROM, INC., a Washington corporation; AMAZON.COM, INC., a Delaware corporation; ZAPPOS, a Delaware corporation; and DOES 1-50, inclusive, Defendants. Case No. 2:14-cv-06659 AB (JEM) Hon. André Birotte Jr. PLAINTIFFS’ OPPOSITION TO DEFENDANTS’ 12(B)(6) MOTION TO DISMISS Date: January 5, 2015 Time: 10:00 a.m. Courtroom: 790 Plaintiffs Jason Williams, Victor Chapa, and Jeffrey Rubin (“Artists” or “Plaintiffs”) respectfully submit this Memorandum of Points and Authorities in Opposition to the Motion to Dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) of Defendants Staff USA, Inc.; Nordstrom, Inc.; Amazon.com, Inc.; and Zappos.com, Inc. (“Defendants”). Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 1 of 30 Page ID #:351

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Opposition to Cavalli Defendants' Motion to Dismiss based on Dastar v Twentieth Century Fox

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    ERIKSON LAW GROUP David Alden Erikson (SBN 189838) [email protected] S. Ryan Patterson (SBN 279474) [email protected] 200 North Larchmont Boulevard Los Angeles, California 90004 Telephone: 323.465.3100 Facsimile: 323.465.317 b7 Attorneys for Plaintiffs

    UNITED STATES DISTRICT COURT

    CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

    JASON WILLIAMS, an individual; VICTOR CHAPA, an individual; and JEFFREY RUBIN, an individual, Plaintiffs, v. ROBERTO CAVALLI S.P.A., an Italian corporation; STAFF INTERNATIONAL S.P.A., an Italian corporation; STAFF USA, INC., a Delaware corporation; NORDSTROM, INC., a Washington corporation; AMAZON.COM, INC., a Delaware corporation; ZAPPOS, a Delaware corporation; and DOES 1-50, inclusive, Defendants.

    Case No. 2:14-cv-06659 AB (JEM) Hon. Andr Birotte Jr. PLAINTIFFS OPPOSITION TO DEFENDANTS 12(B)(6) MOTION TO DISMISS Date: January 5, 2015 Time: 10:00 a.m. Courtroom: 790

    Plaintiffs Jason Williams, Victor Chapa, and Jeffrey Rubin (Artists or

    Plaintiffs) respectfully submit this Memorandum of Points and Authorities in

    Opposition to the Motion to Dismiss pursuant to Federal Rule of Civil Procedure

    12(b)(6) of Defendants Staff USA, Inc.; Nordstrom, Inc.; Amazon.com, Inc.; and

    Zappos.com, Inc. (Defendants).

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 1 of 30 Page ID #:351

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    TABLE OF CONTENTS

    I. INTRODUCTION ...................................................................................................................... 1

    II. ALLEGATIONS ......................................................................................................................... 2

    A. Plaintiffs copyright claims. .......................................................................................... 2

    B. Plaintiff Reyess trademark claims. ............................................................................... 3

    III. PLAINTIFFS REVOK AND STEELS 1202 CLAIM IS PROPER ....................................... 4

    A. The FAC contains more than enough information to allow Cavalli to

    understand the Section 1202 claim against it. ........................................................... 4

    B. Section 1202 is not limited to digital removal. .............................................................. 5

    IV. REYESS TRADEMARK INFRINGEMENT CLAIM IS ENTIRELY CONSISTENT

    WITH DASTAR ..................................................................................................................... 9

    A. The Dastar Case .......................................................................................................... 10

    B. Dastar does not apply because its reasoning does not apply. ..................................... 12

    1. The first rationaleconcern about mutant copyrightis not invoked

    here. ............................................................................................................. 12

    2. The second rationaleconcerns over a catch-22is not invoked here. ......... 13

    3. The third rationaleconcerns regarding secondary meaningis not

    invoked here. ............................................................................................... 14

    C. Concurrent liability for trademark and copyright infringement is

    uncontroversially proper. ........................................................................................ 15

    1. The recent Craigslist case ................................................................................ 16

    2. The recent Bach case ........................................................................................ 17

    D. Defendants cases are inapposite. ................................................................................ 18

    V. PLAINTIFFS FOURTH CAUSE OF ACTION FOR CALIFORNIA STATUTORY

    UNFAIR COMPETITION SURVIVES ............................................................................. 20

    A. Reyes properly alleges an unlawful business practice under 17200. ....................... 21

    B. Reyes properly pleads fraudulent business practices under 17200. ......................... 22

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 2 of 30 Page ID #:352

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    VI. Plaintiffs fifth Cause Of Action For common law unfair competition Survives ..................... 23

    VII. CONCLUSION ................................................................................................................... 24

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 3 of 30 Page ID #:353

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    TABLE OF AUTHORITIES

    Cases

    Agence France Presse v. Morel, 769 F. Supp. 2d 295, 30506 (S.D.N.Y. 2011) ........................ 6, 8

    Associated Press v. All Headline News Corp., 608 F. Supp. 2d 454 (S.D.N.Y. 2009) ................. 6, 8

    Bach v. Forever Living Prods. U.S., Inc., 473 F. Supp. 2d 1110, 1116-18 (W.D. Wash. 2007) ... 16, 17

    BanxCorp v. Costco Wholesale Corp., 723 F. Supp. 2d 596, 60911 (S.D.N.Y. 2010) ................... 7

    Cable v. Agence France Presse, 728 F. Supp. 2d 977, 981 (N.D. Ill. 2010) ................................ 6, 8

    Cel-Tech Commc'ns, Inc. v. Los Angeles Cellular Tel. Co., 20 Cal. 4th 163, 180 (1999). ............. 20

    Craigslist Inc. v. 3Taps Inc. 942 F. Supp. 2d 962, 979 (N.D. Cal. 2013) ........................... 15, 16, 17

    Dr. Seuss Enterprises, L.P. v. Penguin Books USA, Inc. ................................................................ 16

    Engineering, Inc. v. Spirit Const. Services, Inc., 720 F. Supp. 2d 904 (S.D. Ohio 2010) ................ 7

    Faulkner Press, LLC v. Class Notes, LLC, 756 F. Supp. 2d 1352, 1359 (N.D. Fla. 2010) .............. 6

    Fox v. Hildebrand, 2009 U.S. Dist. LEXIS 60886, 2009 WL 1977996 ................................... 6, 7, 8

    Interplan Architect, Inc. v. C.L. Thomas, Inc., Civil Action No. 4:08-cv-03181, 2009 WL 6443117 (S.D. Tex. 2009) ................................................................................................................ 7, 8

    IQ Group, Ltd. v. Wiesner Publishing, LLC, 409 F. Supp. 2d 587 (D.N.J.2006) ............................. 7

    McClatchey v. The Associated Press, 82 U.S.P.Q.2d 1190, 2007 WL 776103 ................................ 6

    Microsoft Corp. v. Nop, 549 F. Supp. 2d 1233, 1238 (E.D. Cal. 2008) .......................................... 16

    Murphy v. Millennium Radio Group LLC, 650 F. 3d 295 (3rd Cir. 2011) ................................ 6, 8, 9

    New York, Thomas Publishing Co., LLC v. Technology Evaluation Centers, Inc., 2007 U.S. Dist. LEXIS 55086 (S.D.N.Y. July 27, 2007) ............................................................................. 19

    Nintendo of Am. v. Dragon Pacific Intl, 40 F. 3d 1007, 1011 (9th Cir. 1994). ......................... 1, 15

    Ratzlaf v. United States, 510 U.S. 135 (1994) ................................................................................... 7

    State Farm Fire & Casualty Co. v. Superior Court, 45 Cal. App. 4th 1093, 1103 (1996) ............. 21

    Stockart.com v. Engel, Civil Action No. 10cv00588MSKMEH, 2011 WL 10894610, at *910 (D. Colo., 2011) ..................................................................................................................... 7

    Summit Technology, Inc. v. High-Line Medical Instruments, Co. 933 F. Supp. 918, 943 (C.D. Cal. 1996) .................................................................................................................................... 21

    Textile Secrets Intl, Ltd. v. Ya-Ya Brand Inc., 524 F. Supp. 2d 1184 (C.D.Cal.2007) .................... 7

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 4 of 30 Page ID #:354

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    TMTV Corp. v. Pegasus Broadcasting of San Juan, 490 F. Supp.2d 228 (D.P.R. 2007) ............... 20

    WalMart Stores, Inc. v. Samara Brothers, Inc., 529 U.S. 205, (2000) ......................................... 14

    William Wade Waller Co. v. Nexstar Broadcasting, Inc., No. 4-10-CV-00764 GTE, 2011 WL 2648584 (E.D. Ark. 2011) ..................................................................................................... 6

    Zyla v. Wadsworth, a Division of Thomson Corp., 360 F.3d 243 (1st Cir.2004) ............................ 19

    Statutes

    15 U.S.C. 1125(a) ........................................................................................................................... 9

    17 U.S.C. 1202 ....................................................................................................................... 5, 6, 8

    Cal. Code Bus. Proc. 17200 ......................................................................................................... 20

    Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23 (2003) .................... 10, 11, 12, 13

    Treatises

    5 McCarthy on Trademarks and Unfair Competition 27:78 (4th ed.) ........................................... 14

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 5 of 30 Page ID #:355

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    I. INTRODUCTION Plaintiffs Williams (a/k/a Revok) and Rubin (a/k/a Steel) bring claims for

    removal of their names from the mural artwork, which is specifically prohibited by

    17 U.S.C. Section 1202. Defendants only serious challenge1 to this claim is that the

    statute does not apply to the manual removal of analog informationpresumably

    because it was enacted as part of the Digital Millennium Copyright Act. As

    explained below, this is incorrectas a matter of simple statutory interpretation as

    well as pursuant to uncontroversial case law. The two outlier cases Defendants rely

    upon in this regard have been thoroughly discredited by a line of subsequent cases

    including a case in this district and the only circuit court case to address the issue

    as simple shepardizing reveals.

    Cavalli also moves to dismiss Plaintiff Chapas (a/k/a Reyes) trademark

    claims on the ground that they are merely repackaged copyright claims.2 Again, this

    argument relies on a stark misunderstanding of law. That a single misappropriation

    can simultaneously constitute trademark and copyright infringement is clear as a

    matter of common sense, and as a matter of case law. The Ninth Circuit has

    remarked in exactly this context that, it may have been one act, but it was two

    wrongs. Nintendo of Am. v. Dragon Pacific Intl, 40 F. 3d 1007, 1011 (9th Cir.

    1994).

    A drawing of the NBC Peacockto take a hypothetical exampleis clearly

    copyrightable. But placing it on a line of shoes would obviously constitute

    1 Defendants motion was untimely. The FAC was filed on November 10, 2014. The motion was filed 22 days later on December 2, 2014. 2 Artists refer to their third claim for trademark infringement under the Lanham Act, fourth claim for statutory unfair competition under Cal. Bus. & Prof. Code 17200, and fifth claim for common law unfair competition as trademark claims because they all address the same wrong: Defendants use of Reyess logo on Cavalli clothing, causing a likelihood of confusion. The Ninth Circuit has consistently held that state common law claims of unfair competition and actions pursuant to California Business and Professions Code 17200 are substantially congruent to claims under the Lanham Act. Cleary v. News Corp., 30 F.3d 1255, 1262-63 (9th Cir. 1994).

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 6 of 30 Page ID #:356

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    trademark infringement as wellbecause it would likely cause consumers to believe

    that NBC made or endorsed the shoes.

    To try to avoid the possibility of concurrent trademark and copyright liability,

    Defendants inexplicably characterize Reyess trademark allegations as being that

    Defendants passed off his artwork as their own, without giving him credit (so-called

    reverse passing off). As Defendants point out, the Supreme Courts 2003 Dastar

    decision would bar such a claim because plagiarism is a matter of copyright law,

    and is not actionable under the Lanham Act.

    But Reyes does not bring a reverse passing off claim. Rather, his trademark

    claims are for garden-variety passing off. He alleges that:

    The mural contained certain recognizable signature or source-

    identifying elements: a particular style of black-and-white swirls (or

    revolutions that effectively function as a logo. [FAC 56-60.]

    That placing these signature elements on Defendants apparel likely

    confuses consumers into thinking that Reyes produced them. [Id.,

    61-72.]

    As explained below, nothing about Dastar or related cases forecloses such a

    claim. Indeed, there is no question that a claim for passing off based on source-

    identifying elements may be based on copyrightable matter. While courts and

    commentators have struggled to find the limit of Dastar, no one would seriously

    suggest that it did away with the possibility of concurrent trademark and copyright

    liability, or that it forecloses all Lanham Act claims based on communicative or

    copyrightable matter.

    II. ALLEGATIONS A. Plaintiffs copyright claims.

    Artists allege that Defendants Staff International, Staff USA and Roberto

    Cavalli S.p.A. (the Cavalli Defendants) applied mechanically produced copies of

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 7 of 30 Page ID #:357

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    their mural to a collection of Just Cavalli labeled apparel (the Graffiti

    Collection), and that the Cavalli Defendants and the retailer Defendants sold the

    offending products to consumers. [FAC 2-5, 33.]

    To hear Defendants tell it, Artists vaguely allege that the scribbles and

    geometric patterns of Defendants Graffiti Collection resemble their mural.

    [Defendants Motion to Dismiss the Second, Third, Fourth and Fifth Claims for

    Relief in the First Amended Complaint (the Motion) 3:4-6.] But the words and

    pictures of the FAC tell a more remarkable story: that Defendants mechanically

    copied Plaintiffs mural and used it to cover every square inch of the Graffiti

    Collections pieces. [FAC 2, 3.]

    Based on these facts, Artists assert a straightforward claim for copyright

    infringement. [Id., 8, 40-46.] Defendants do not challenge this claim.

    Plaintiffs Revok and Steel also bring claims under 17 U.S.C. 1202. [FAC

    48-54.] Section 1202 prohibits removal or alteration of copyright management

    information (CMI), including artists names, from copyrighted works. Id. Revok

    and Steel allege that in removing/altering their extremely prominent signatures from

    the appropriated artwork, Defendants have committed a paradigmatic violation of

    this statute. [FAC 48-54.]

    B. Plaintiff Reyess trademark claims. As mentioned above, Plaintiff Reyes also alleges that the mural contained

    images of his signature revolutions, which the public recognizes as indicating him

    as the source of goods or servicesnot unlike a logo such as the NBC Peacock.3 [Id

    3 In other words, Artists have alleged that elements of the mural have secondary meaning. Secondary meaning refers to consumer acceptance and recognition of marks as denoting source. 2 McCarthy on Trademarks and Unfair Competition 11:25 (4th ed.). Secondary meaning (or acquired distinctiveness) makes an element a signature one. A mark has secondary meaning when, in the minds of the public, the primary significance of a [mark] is to identify the source of the product rather than the product itself. Inwood Laboratories, Inc. v. Ives Laboratories, Inc., 456 U.S. 844, 851, n. 11, (1982); Wal-Mart Stores, Inc. v. Samara Bros., 529 U.S. 205, 211, (footnote continued)

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 8 of 30 Page ID #:358

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    57.] He also alleges that Defendants inclusion of such logo-like elements on the

    Graffiti Collection created a likelihood of confusion in that consumers are likely to

    believe that Reyes was the physical source of the Graffiti Collection clothing. [Id

    62-66.]

    In addition to a simple Lanham Act trademark infringement claim based on

    such passing off, Reyes brings California statutory and common law unfair

    competition claims based on this same wrong.

    III. PLAINTIFFS REVOK AND STEELS 1202 CLAIM IS PROPER Cavalli challenges Artists Section 1202 claim on several grounds:

    That Section 1202 does not apply where the copyright management

    information was not placed or removed using technological/digital

    means. [Motion IV(A).]

    That Plaintiffs failed to identify the copyright management information

    at issue, or even whom it belonged to. [Motion IV(B).]

    That Revok and Steels names, and Reyess signature revolutions, do

    not constitute copyright management information [Motion IV(C).]

    That according to Plaintiffs allegations, Cavalli did not alter or remove

    Revok and Steels signatures but instead kept and used them in what

    was appropriated. [Motion IV(D).]

    A. The FAC contains more than enough information to allow Cavalli to understand the Section 1202 claim against it.

    The last three of these bullet pointed argumentswhich collectively amount

    to an assertion that Cavalli cannot understand the precise allegations against itare

    not brought seriously. Indeed, Cavalli demonstrates that it understands the claim

    against it by asserting the first bullet-point argument abovea substantive argument

    (2000).

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 9 of 30 Page ID #:359

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    that addresses an accurate reading of the allegations. Indeed, the Section 1202

    allegations are clearly laid out, and easily suffice under notice pleading standards4:

    Cavalli can and does detect that it is Revok and Steels CMI that is at

    issue from the simple fact that they are the ones (and not Plaintiff

    Reyes) bringing the claim. [FAC 12:3.] Similarly, Plaintiffs do not

    claim that Reyess revolutions constitute CMI. [Id.]

    The precise nature of the CMI at issue is clearly laid out in the FAC:

    the signatures of Revok, and Steelstylized renditions of their art

    pseudonyms, which prominently appear in the mural, but cannot be

    recognized on Cavallis apparel. [FAC 28-30.] There is no question

    that an authors name constitutes copyright management information.

    Indeed the statute specifically defines the CMI as including the name of

    the author. 17 U.S.C. 1202(c).

    Its certainly possible to misappropriate/use the signatures and still in

    effect alter or remove them for purposes of Section 1202. Again,

    Plaintiffs clearly allege that Cavalli mechanically copied the mural,

    including Revok and Steels signatures, and placed only pieces of the

    mural artwork on any specific item in the Graffiti Collectionpieces in

    which the signatures cannot be discerned. [FAC 4:21 (Defendants

    removed or obscured the names of the other two plaintiffs), 8:23-24

    (the signatures of Revok and Steel are chopped and rearranged to such

    an extent that they are not recognizable.).]

    B. Section 1202 is not limited to digital removal. 17 U.S.C. 1202 prohibits the alteration or removal of copyright management

    4 Williams and Rubin do not rely on the images contained in the FAC and its Exhibits, but it is worth mentioning that they clearly answer all the questions posed by Cavalli about the CMI at issue (i.e. Revok and Steels signatures).

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 10 of 30 Page ID #:360

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    information from a work. The term copyright management information is

    defined as information, such as the title, author, or copyright owner of a work that is

    conveyed in connection with copies . . . of a work . . . including in digital form[.]

    See 17 U.S.C. 1202(c) (emphasis added).

    Plaintiffs Revok and Steel brought a Section 1202 claim based on their

    allegations that Defendants removed/altered their signatures, which appeared

    prominently in the mural, making them indiscernible on Cavallis clothing [FAC

    30]which certainly appears to be exactly what the statute prohibits.

    Defendants argue that Section 1202 does not apply however, because it was

    meant to only apply to digital works or the digital removal of CMIbecause it is

    part of Digital Millennium Copyright Act. To put it in Defendants needlessly

    complex terms, Section 1202 was not intended to apply to circumstances that have

    no relation to the internet [sic], automated copyright protections or management

    systems, public registers or other technological means contemplated by the DMCA

    as a whole. [Motion 6:9-12.]

    That is simply wrong. The plain language of the statute (including in digital

    form) indicates that its scope is not limited to CMI that is digitally placed and/or

    digitally removed. Murphy v. Millennium Radio Group LLC, 650 F. 3d 295 (3rd Cir.

    2011); Fox v. Hildebrand, 2009 U.S. Dist. LEXIS 60886, 2009 WL 1977996, at *3

    (C.D. Cal. 2009); McClatchey v. The Associated Press, 82 U.S.P.Q.2d 1190, 2007

    WL 776103 (W.D. Pa. 2007); Associated Press v. All Headline News Corp., 608 F.

    Supp. 2d 454 (S.D.N.Y. 2009); William Wade Waller Co. v. Nexstar Broadcasting,

    Inc., No. 4-10-CV-00764 GTE, 2011 WL 2648584 (E.D. Ark. 2011); Agence

    France Presse v. Morel, 769 F. Supp. 2d 295, 30506 (S.D.N.Y. 2011); Faulkner

    Press, LLC v. Class Notes, LLC, 756 F. Supp. 2d 1352, 1359 (N.D. Fla. 2010);

    Cable v. Agence France Presse, 728 F. Supp. 2d 977, 981 (N.D. Ill. 2010);

    BanxCorp v. Costco Wholesale Corp., 723 F. Supp. 2d 596, 60911 (S.D.N.Y.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 11 of 30 Page ID #:361

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    2010); Jedson Engineering, Inc. v. Spirit Const. Services, Inc., 720 F. Supp. 2d 904

    (S.D. Ohio 2010); Interplan Architect, Inc. v. C.L. Thomas, Inc., Civil Action No.

    4:08-cv-03181, 2009 WL 6443117 (S.D. Tex. 2009); Stockart.com v. Engel, Civil

    Action No. 10cv00588MSKMEH, 2011 WL 10894610, at *910 (D. Colo.,

    2011). The phrase including in digital form in Section 1202 removes any doubt

    that notices in digital form are covered, but in no way limits the definition to notices

    made in digital form. Fox v. Hildebrand, supra, 2009 WL 1977996 at *3.

    Defendants cite two cases that analyze the legislative history of the DMCA to

    come to the opposite conclusion: Textile Secrets Intl, Ltd. v. Ya-Ya Brand Inc., 524

    F. Supp. 2d 1184 (C.D.Cal.2007); IQ Group, Ltd. v. Wiesner Publishing, LLC, 409

    F. Supp. 2d 587 (D.N.J.2006). But these two cases have been roundly rejected by

    subsequent court decisions, including the Third Circuit in Murphy, and this district

    in Fox v. Hildebrand.

    In Fox, after finding that the plain language of Section 1202 compels the

    conclusion that it applies to digital and non-digital works alike, Judge Fischer says

    of Textile Secrets and IQ Group:

    Defendants cite two cases that analyze the legislative history of the

    DMCA to come to the opposite conclusion, but even given contrary

    indications in the statutes legislative history, a court should not

    resort to legislative history to cloud a statutory text that is clear. (citing

    Ratzlaf v. United States, 510 U.S. 135 (1994).)

    Fox v. Hildebrand, supra, 2009 WL 1977996 at *3.

    This is not a simple matter of cases coming to contradictory results. In a good

    number of cases from the years just after Textile Secrets and IQ Group were

    decided, defendants tried to invoke the two cases to avoid liability for removal or

    alteration of CMI in non-internet contexts. In each case, the defendant invoked the

    legislative history surrounding the DMCA in generalwhich obviously dealt with

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 12 of 30 Page ID #:362

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    digital communications and worksto argue as Cavalli does here that Section 1202

    does not apply beyond the digital realm. Textile Secrets and IQ Group became the

    go-to cases for such defendantsat least until they were explicitly disapproved of

    by a critical mass of subsequent cases. In these later cases, the courts made the point

    that the plain language Section 1202 was not limited to digital works, and there was

    no logical or compelling reason why Congress could not choose to expand copyright

    protections in general within the DMCA.

    All of the following cases make this point and explicitly reject the holdings of

    Textile Secrets and/or IQ Group: Agence France Press v. Morel, supra, 769 F. Supp.

    2d at 305, 306; Cable v. Agence France Presse, supra, 728 F. Supp. 2d at 980-81;

    Interplan Architect, Inc., supra, 2009 WL 6443117, at *3-5 (Because this Court

    does not find that the terms of Section 1202 are sufficiently ambiguous such that

    resort to legislative history is necessary, this Court does not adopt the findings in

    Textile Secrets. Because there is no textual support for [defendants] contention that

    Section 1202 should be limited to technological processes, this Court declines to

    import such a limitation.); Associated Press, supra, 608 F. Supp. 2d at 461-62

    (denying motion to dismiss and finding that there is no textual support for limiting

    the DMCA's application to the technological processes of automated systems.);

    Faulkner Press, supra, 756 F. Supp. 2d at 1359 (plain language did not limit

    definition of CMI to notices that are placed on works through technological

    processes, but finding no violation of DMCA); Fox v. Hildebrand, supra, 2009 WL

    1977996 at *3 (2009); Murphy, supra, 650 F.3d at 302.

    The Third Circuit, in the Murphy case put it as follows:

    There is nothing particularly difficult about the text of 1202. Read

    in isolation, 1202 simply establishes a cause of action for the removal

    of (among other things) the name of the author of a work when it has

    been conveyed in connection with copies of the work. The statute

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 13 of 30 Page ID #:363

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    imposes no explicit requirement that such information be part of an

    automated copyright protection or management system.

    Murphy, 650 F.3d at 302.

    The Murphy opinion next devotes several pages to discussing (and rejecting

    the reasoning of) Textile Secrets and IQ Group. Just as in Fox, the Murphy court

    decides that there is no justification for resorting to legislative history when the

    statutory language is clear. Id. For good measure, the Murphy court considered the

    survey of legislative history undertaken by the IQ and Textile Secrets courts, and

    concluded that the history did not contradict a broad, inclusive interpretation of

    CMI. Id., at 304. This conclusion casts doubt on the proposition that the legislative

    history even suggests a limitation to the digital realm.

    Accordingly, the fact that plaintiff work was created in the physical world

    takes nothing away from their Section 1202 claim.

    IV. REYESS TRADEMARK INFRINGEMENT CLAIM IS ENTIRELY CONSISTENT WITH DASTAR

    Plaintiff Reyess trademark infringement claims are based on the allegation

    that Cavalli placed Reyess signature revolutions imagery on its clothinglikely

    causing the public to think the clothing was made by Reyes. [FAC 62.] The claim

    is brought under Section 43(a) of the Lanham Act, which is the procedure for

    challenging infringement of unregistered marks. The Section makes actionable the

    use of any word, term, name, symbol, or device, or any combination thereof ...

    which ... is likely to cause confusion ... as to the origin, sponsorship, or approval of

    his or her goods.... 15 U.S.C. 1125(a).

    Defendants assert Dastar and its progeny bar as a matter of law a Lanham

    Act claim for reverse passing off that allegedly arises from unauthorized use of a

    copyrighted work. The Supreme Court has held that the Copyright Act, and not an

    action for reverse passing off under the Lanham Act, provides the sole remedy for

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 14 of 30 Page ID #:364

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    alleged copying of Plaintiffs mural. [Motion, 2:9-13.]

    The most straightforward way to defeat this argument is to simply point out

    that Reyess claim is a simple passing-off claim, not one for reverse passing off as

    Defendants inexplicably assert. The claim is based on the clearly stated allegation

    that consumers would likely confuse Reyes as the physical source of Cavallis

    clothing. [FAC 62.] Certainly anyone familiar with his signature revolutions

    would so believe. The claim is not based on the allegation that Defendants

    misappropriation would likely give the false impression that Cavalli was the author

    of the mural artwork (even though thats probably true as well with respect to

    consumers who are not familiar with Reyes or his work).

    But because its not entirely clear that Dastar cannot apply to passing off

    cases, Plaintiffs will go further and demonstrate that the case has no application

    here. In other words, in addition to the straightforward argument mentioned above

    (that this is not a reverse passing off claim), Reyes will go further and show that his

    claim necessarily survives even if Dastar is interpreted to apply to certain passing

    off claims.

    A. The Dastar case In Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23 (2003),

    the defendant (Dastar Corp.) copied and slightly modified a videotaped

    documentary produced by the plaintiff (Twentieth Century Fox Film Corp.), and

    distributed it as its own. Fox brought a Lanham Act claim, alleging reverse passing

    off: that Dastar was falsely passing off Foxs content as its ownwhich was

    misleading because no credit was given to Fox.

    The gravamen of the complaint against Dastar was that, in marketing and

    selling [the videotapes] as its own product without acknowledging its nearly

    wholesale reliance on [Foxs work], Dastar ha[d] made a false designation of

    origin, false or misleading description of fact, or false or misleading representation

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 15 of 30 Page ID #:365

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    of fact, which ... is likely to cause confusion ... as to the origin ... of his or her

    goods. Dastar, 539 U.S. at 31.

    It is worth noting what Fox did not allege. It did not allege misappropriation

    of signature, source-identifying elements, imbued with secondary meaning, which

    might cause confusion as to source. In other words, it did not allege that the public

    would recognize certain Fox-ish aspects of the work (for example, a certain

    familiar sepia tone, camera work or a style of narration) and thus likely believe that

    the videotape came from Fox. Such allegations, of course, would have made the

    case a typical passing off one. Rather, Fox was complaining about appropriation

    of the work itselfi.e. the entire work and did not allege secondary meaning. Put

    another way, the confusion Fox complained of was that the public would mistakenly

    believe that Dastar rather than Fox made the documentary. And indeed Dastar is

    sometimes thought of primarily as a case in which the plaintiff tried to use the

    Lanham Act to address plagiarism. See Steven T. Lowe, Abhay Khosla, Where

    Credit Is Due, LOS ANGELES LAWYER, Dec. 2014, at 40.

    The Supreme Court rejected Foxs Lanham Act claim against Dastar,

    generally noting that it was simply a repackaged copyright claim. Dastar, supra, at

    36, 37. The purpose of copyright law, after all, is to combat appropriation of creative

    works and plagiarism. Id., at 37, 38. And because copyright law reflects a careful

    balancing of authors rights and the publics freedom to use others expression, it

    would be odd and inappropriate to allow trademark law (which is concerned with

    protecting consumer welfare by avoiding marketplace confusion as to the source

    of goods) to trump copyright law in its own domain. Id., at 33, 34.

    To support this conclusion, the Supreme Court made a number of oft-cited

    clarifications of the Lanham Act:

    That the phrase origin of goods in the Lanham Act refers to the

    producer of the tangible goods that are offered for sale, and not to the

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 16 of 30 Page ID #:366

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    originator of any idea, concept, or communication embodied in those

    goods. Id., at 37. Thus there was no false designation of origin in the

    case because Dastar was in fact the origin of the physical videotapes

    Id., at 27, 37-38.

    That reverse passing off cannot be based on such communicative

    content, (defined as one that is valued not primarily for its physical

    qualities, such as a hammer, but for the intellectual content that it

    conveys, such as a book or, as here, a video), which is the subject of

    copyright law. Id., at 33.

    That the Lanham Act does not contain a cause of action for plagiarism.

    Id., at 3637.

    These clarifications of the Lanham Act have no application to Reyes trademark

    claim.

    B. Dastar does not apply because its reasoning does not apply. Courts and commentators have famously had difficulty determining where

    Dastar applies and where it doesnt. But this much is uncontroversial: Dastar does

    not foreclose the kind of garden variety trademark claims (passing off via

    appropriation of signature, source-identifying elements), even where the trademark

    is copyrightable or constitutes communicative content. Put another way, Dastar

    does not preclude concurrent claims for copyright infringement and passing off

    under the Lanham Act, where a plaintiff alleges that the misappropriated material

    has acquired secondary meaning.

    To see why, and specifically to see why Dastar does not apply here, one need

    only examine the three rationales Justice Scalia offers for the decision, which are

    clearly not invoked here or in any garden-variety trademark case.

    1. The first rationaleconcern about mutant copyrightis not invoked here.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 17 of 30 Page ID #:367

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    First, the Court noted that allowing a Section 43(a) claim for originating a

    creative work would create a species of mutant copyright law that would

    essentially treat and expand copyright-style protections. Dastar, supra, at 34. The

    point was perfectly illustrated by the facts of Dastar itself, where the work in

    question happened to have fallen into the public domain. Id., at 26. Lanham Act

    liability for appropriation of a copyrightable work would essentially create a

    perpetual copyright that Congress did not intend. Id., at 37. Put another way, and

    reading broadly, Lanham Act relief was found inappropriate where copyright law

    addresses the same wrong.

    To hold otherwise would be akin to finding that 43(a) [of the Lanham Act]

    created a species of perpetual patent and copyright, which Congress may not do. Id.

    Thus, reverse passing off claims brought under Lanham Act 43(a)(1)(A) cannot

    focus on allegedly false claims of authorship, invention or creation. In addition, the

    Supreme Court made clear that the Lanham Act does not require the attribution of

    authorship of creative materials. Id., at 36. Again, if it did, trademark law would

    impermissibly expand copyright law.

    Here, as in any garden-variety trademark claim, there is no concern that

    Reyess Lanham Act claims would provide a copyright-like protection distinct from

    copyright law. In his claim, Reyes is not complaining about misappropriation of the

    mural artwork, but rather signature elements within it that the public recognizes as

    his, in part because these signature elements (by definition) appear in nearly every

    single other piece of his artwork, spanning the past decade. [See, e.g. FAC, Exhibit

    A.] Put another way, the claim would have existed whether or not this particular

    mural had ever been created, because the signature elements (again by definition)

    exist independently.

    2. The second rationaleconcerns over a catch-22is not invoked here.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 18 of 30 Page ID #:368

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    The Supreme Courts second rationale was as follows: If the Lanham Act

    were read to require attribution to the source of the creative content of

    communicative works out of copyright, then the copier would be between a rock and

    a hard place. Dastar, at 35; see also 5 McCarthy on Trademarks and Unfair

    Competition 27:78 (4th ed.). If the copier avoided the plagiarism by attributing

    some or all of those who had creative input, the copier could be sued under Lanham

    Act for falsely implying the creators sponsorship or approval of the defendants

    version. Id.

    Reyess claim does not invoke the same concern. Theres no catch-22 when a

    manufacturer is deciding whether or not to misappropriate source-identifying

    symbols that have acquired secondary meaningthere is no course of action

    relating to crediting or not crediting the creator that could render such

    misappropriation more or less properbecause the misappropriation is improper per

    se.

    3. The third rationaleconcerns regarding secondary meaningis not invoked here.

    The Supreme Courts third rationale was as follows: Liability for Dastars

    appropriation would be inconsistent with cases such as in WalMart Stores, Inc. v.

    Samara Brothers, Inc., 529 U.S. 205, (2000), in which the court found secondary

    meaning to be a requirement under Section 43a liability with respect to trade dress

    designs (the entirely of a work). Dastar, at 36. The secondary meaning requirement

    ensures that designs cannot be protected under 43(a) without a showing that they

    have acquired secondary meaning, so that they identify the source of the product

    rather than the product itself, Dastar, at 36, citing Wal-Mart, supra, 529 U.S. at

    211, 214 (internal citations omitted).

    In Wal-Mart, the defendant copied childrens clothes designed by Samara

    an instance of actionable passing off if the designs had acquired secondary meaning.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 19 of 30 Page ID #:369

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    If a reverse passing off claim (not requiring secondary meaning) were to require

    attribution to the creator of the designs, then Samara could have sued Wal-Mart for

    falsely labeling the clothes with its mark and not attributing creation of the designs

    Samara. As the Dastar court notes, the carefully considered secondary meaning

    requirement would be entirely pointless if the original producer could turn around

    and pursue a reverse-passing-off claim under exactly the same provision of the

    Lanham Act. 2049.

    Allowing a claim like Foxs in Dastar claim would open room for end runs

    around Wal-Mart, in that a trade dress design case is more or less conceptually

    indistinguishable from a claim for appropriation of a work itself without

    allegations of secondary meaning. That Court thus decided that in both contexts,

    secondary meaning was a prerequisite to liability.

    Reyess claim does not invoke any such concern in that he alleges secondary

    meaning.

    C. Concurrent liability for trademark and copyright infringement is uncontroversially proper.

    Dastar did not undercut the Ninth Circuits holding that Congress created

    two separate statutory schemes to govern copyrights and trademarks; in order to

    effectuate the purposes of both statutes, damages may be awarded under both.

    Craigslist Inc. v. 3Taps Inc. 942 F. Supp. 2d 962, 979 (N.D. Cal. 2013), quoting

    Nintendo of Am. v. Dragon Pac. Intl, 40 F.3d 1007, 1011 (9th Cir. 1994). In

    Nintendo, the Ninth Circuit affirmed an award of damages for both copyright and

    trademark infringement where the defendant sold video game cartridges including

    copyrighted Nintendo content and falsely represented that it was selling authorized

    Nintendo products. See Nintendo, 40 F.3d at 1010-1011. Put together, selling the

    cartridges may have been one act, but it was two wrongs. Id., at 1011. The Ninth

    Circuit similarly upheld a preliminary injunction based on simultaneous and

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 20 of 30 Page ID #:370

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    interrelated copyright, trademark, and unfair competition claims in Dr. Seuss

    Enterprises, L.P. v. Penguin Books USA, Inc., a case involving a book about the O.J.

    Simpson trial written in the style of Dr. Seusss The Cat in the Hat. See generally,

    109 F.3d 1394 (9th Cir. 1997).

    Even after Dastar, a plaintiff may be awarded statutory damages under both

    the Copyright Act and the Lanham Act where the defendants act simultaneously

    infringed the plaintiffs copyright and its trademark. Craigslist, 942 F. Supp. 2d at

    979 (citing Microsoft Corp. v. Nop, 549 F. Supp. 2d 1233, 1238 (E.D. Cal. 2008)

    (entering default judgment on simultaneous copyright and trademark claims, citing

    Nintendo, 40 F.3d at 1010-11). See also Bach v. Forever Living Prods. U.S., Inc.,

    473 F. Supp. 2d 1110, 1116-18 (W.D. Wash. 2007) (examining Dastar, Nintendo,

    and Dr. Seuss Enters., and holding that the author of Jonathan Livingston Seagull

    could bring both copyright and trademark claims against a company that used

    elements of the book without permission). Reyess allegations of copyright

    infringement and passing off are essentially identical to these cases, and thus his

    claim merits the same analysis.

    1. The recent Craigslist case In Craigslist, the defendant culled for-rent postings from the plaintiffs

    craigslist.org website, and republished them to the public in its own format.

    Craigslist, supra, 942 F. Supp. 2d. at 966, 967. The plaintiff claimed the defendants

    misappropriation of each posting constituted both trademark and copyright

    infringementin that the plaintiff held the copyright in each posting, and because

    the defendant also included the Craigslist logo in the republished postings. Id., at

    978. The defendant moved to dismiss the trademark claims under Dastar. Id. The

    court denied the motion, emphasizing that the single act of misappropriation was

    properly alleged to be at once (1) a misappropriation of the simple copyrighted ad

    content (which the plaintiff acquired from its users via its terms of use) and (2) a

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 21 of 30 Page ID #:371

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    misuse of the plaintiffs trademark, which was featured in the postings. Id., at 980.

    In other words, the claim included a garden variety passing off claim on top of the

    simple copyright claim.

    The court found that this not a case like Dastar . . . where the plaintiffs were

    attempting to use trademark law to prosecute plagiarism of their creative work. Id.

    (citing Bach, supra, 473 F. Supp. at 1118). Craigslist alleges separate and distinct

    harms: that defendants infringed Craigslists copyright by using its content without

    permission and that defendants use of the craigslist mark confused customers

    about Craigslists relationship to defendants and their products and diminished the

    value of the mark. Id.

    Reyes claim is exactly the same. He alleges infringement of his mural

    artwork, but also separate trademark infringement in that Defendants included his

    logo in their clothing.

    2. The recent Bach case In Bach, the defendants liberally used both various elements of the popular

    Jonathan Livingston Seagull bookincluding text and imagesto market their

    health and beauty products. The plaintiff author brought a simple copyright claim,

    but also alleged that Defendants have falsely represented in commerce that their

    companies, products, and services are endorsed by or otherwise affiliated or

    associated with the name, title, and images associated with Jonathan Livingston

    Seagull and/or Plaintiffs. Bach, 473 F. Supp. 2d 1110, 1114.

    The Bach defendants brought a motion to dismiss based on Dastar, arguing

    that the author could not piggyback trademark claims in a copyright case. Id., at

    1116. The court found that because the author alleged two separate wrongs,

    concurrent liability was no problem. The court backed up and explained from the

    beginning:

    Trademark and copyright law have fundamentally different purposes. Trademark law is concerned with the protection of symbols, elements or

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 22 of 30 Page ID #:372

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    devices used to identify a product in the marketplace and to prevent confusion as to its source. RDF Media Ltd. v. Fox Broad. Co., 372 F.Supp.2d 556, 563 (C.D.Cal.2005) (quoting EMI Catalogue Partnership v. Hill, Holliday, Connors, Cosmopulos, Inc., 228 F.3d 56, 63 (2d Cir.2000)). In contrast, copyright law protects the artists right in an abstract design or other creative work. Id. Therefore, trademark law protects the distinctive source-distinguishing mark, while copyright law protects the work as a whole. See Whitehead v. CBS/Viacom, Inc., 315 F.Supp.2d 1, 13 (D.D.C.2004).

    The fact that the two areas of law protect against different wrongs is reflected in the many cases in which courts have analyzed the same set of facts under both trademark and copyright law without concluding that the trademark claims were piggybacking on the copyright claims. See Mattel Inc. v. Walking Mountain Prods., 353 F.3d 792 (9th Cir.2003) (holding that artist who developed series of photographs which depicted Barbie in various absurd positions did not violate Mattels copyright or trademark rights in Barbie doll); Dr. Seuss Enters., L.P. v. Penguin Books USA, Inc., 109 F.3d 1394 (9th Cir.1997) (affirming grant of preliminary injunction prohibiting the publication of The Cat NOT in the Hat! A Parody by Dr. Juice, a rhyming summary of highlights from the O.J. Simpson trial, as violating Dr. Seusss copyright and trademark rights); Nintendo of Am., Inc. v. Dragon Pacific Intl, 40 F.3d 1007 (9th Cir.1994) (affirming district courts award of damages under both copyright and trademark law where defendant copied Nintendo games (copyright infringement) and then sold the games as a package, but advertised that they were Nintendo products (trademark violation)); Toho Co., Ltd. v. William Morrow & Co., 33 F.Supp.2d 1206 (C.D.Cal.1998) (issuing preliminary injunction based on plaintiffs likelihood of success on both trademark and copyright claims where publisher was about to release book entitled Godzilla (trademark violation) that included images and photographs from original Godzilla film as well as descriptions of the character of Godzilla (copyright violations)).

    Bach, 473 F. Supp. at 1117.

    This case is like Craigslist, Bach, Nintendo, Microsoft, and Dr. Seuss:

    Defendants copied Plaintiff Reyess signature revolutions design (trademark

    violation) by copying a piece of artwork in which this source-identifying design was

    embodiedi.e. the mural (copyright violation).

    D. Defendants cases are inapposite. In support of their Dastar argument, Defendants have several cited three far-

    flung casesan unpublished New York district court decision, one First Circuit

    decision, and a Puerto Rico district court decisionthat are clones of Dastar and

    share what turns out to be the key facts: reverse passing off of copyrightable matter

    that has no secondary meaning, i.e. claims for plagiarism. Defendants conspicuously

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 23 of 30 Page ID #:373

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    ignored the two recent district court decisions in our Circuit (Craigslist, and Bach)

    that explicitly hold that passing off claims such as Reyess are not barred by Dastar.

    Defendants first cite an unpublished decision from the Southern District of

    New York, Thomas Publishing Co., LLC v. Technology Evaluation Centers, Inc.,

    2007 U.S. Dist. LEXIS 55086 (S.D.N.Y. July 27, 2007), as standing for the

    proposition that reverse passing off' claims brought under the Lanham Act

    43(a)(1)(A) cannot focus on allegedly false claims of authorship, invention or

    creation. [Motion 11:5-9.] Whatever the accuracy of that statement, it does not

    apply to Reyess claim, which is for passing off. Further, Thomas was more or less

    identical to Dastar, save for the plaintiffs efforts to characterize its offering (a

    technological directory that the defendants had duplicated with only superficial

    changes) as a service rather than a product. The court barely addressed the

    service/product distinction and ruled on the basis of the close parallel to Dastar:

    Because Plaintiffs False Designation Claim centers around its contention that it

    originated certain ideas and concepts contained at Defendants website, Plaintiffs

    claim is dismissed. Thomas Publishing, supra (citing Dastar, supra, 539 U.S. at

    37).

    Defendants next cite Zyla v. Wadsworth, a Division of Thomson Corp., 360

    F.3d 243 (1st Cir.2004). Like Thomas, the Zyla case is essentially identical to

    Dastara contributor to a textbook brought a claim against the books publisher

    based on a lack of attribution of credit for her contributions. Zyla, 360 F.3d at 251.

    The court made clear that this claim was one of reverse passing off, explicitly

    stating that the plaintiff was not claiming that that [her] own name constituted a

    service mark. Id., fn. 7. On this basis, the Zyla court concluded that Dastar

    controlled, and barred the plaintiffs Lanham Act claim for reverse passing off.

    Id., at 252.

    Lastly, Defendants cite TMTV Corp. v. Pegasus Broadcasting of San Juan,

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 24 of 30 Page ID #:374

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    490 F. Supp.2d 228 (D.P.R. 2007)another case of reverse passing off based on

    defendant allegedly taking a whole of a copyrighted work. There, the plaintiff

    alleged that the defendants television show El Condominio was a knock-off (i.e.

    unauthorized derivative work under copyright law) of a show produced by the

    plaintiff called 20 Pisos de Historia. TMTV, 490 F. Supp. 2d at 230. Besides a

    copyright claim, the plaintiff brought a claim for reverse passing off under the

    Lanham Act, alleging that the defendants had falsely designated themselves as the

    creators of the show.

    As explained above, Plaintiff Reyes brings a simple and garden variety

    passing off claimthat Defendants used his signature, source-identifying

    revolutions on their goods, thereby creating a likelihood that consumers will be

    confused about the origin of Defendants goods, believing them to have been

    manufactured by Reyes. Dastar does not bar this type of claim, and Defendants fail

    to cite any authority in support of a conclusion to the contrary.

    V. PLAINTIFFS FOURTH CAUSE OF ACTION FOR CALIFORNIA STATUTORY UNFAIR COMPETITION SURVIVES

    California Business and Professions Code Section 17200 defines unfair

    competition to include any unlawful, unfair or fraudulent business act or

    practice. Cal. Code Bus. Proc. 17200; Cel-Tech Commc'ns, Inc. v. Los Angeles

    Cellular Tel. Co., 20 Cal. 4th 163, 180 (1999). Because the statute is written in the

    disjunctive, there are three manners in which a practice can run afoul of the statute:

    by being unlawful, unfair, or fraudulent. Cel-Tech, 20 Cal. 4th at 180.

    As mentioned above, Reyes 17200 claim is really just a restated version of his

    Lanham Act claim. Indeed, under the statutes unlawful prong, a practice is

    unlawful if it violates a law other than Section 17200. Defendants are essentially

    arguing that because they have definitely shown Reyess Lanham Act claim to be

    barred by Dastar, they have effectively disposed of both unfair competition claims

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 25 of 30 Page ID #:375

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    as wellbecause it is well settled that unfair completion claims cannot borrow a

    copyright infringement claim under the preemption doctrine. [Motion 11:26-12:12.]

    But as explained above, Reyess properly pleaded claim for garden variety

    passing off in violation of the Lanham Act is not barred by Dastar, because the

    claim alleges a wrong that is separate and distinct from Plaintiffs copyright

    infringement claim. Since Reyess 17200 claim is based on Defendants violation of

    the Lanham Act, the issue of copyright preemption does not arise, and the claim

    survives because a violation of the Lanham Act constitutes an unlawful and

    fraudulent business practice.

    A. Reyes properly alleges an unlawful business practice under 17200. Because Reyes properly alleges trademark infringement under the Lanham

    Act, his statutory unfair competition claim necessarily survivesbecause violation

    of the Lanham Act is unlawful. Summit Technology, Inc. v. High-Line Medical

    Instruments, Co. 933 F. Supp. 918, 943 (C.D. Cal. 1996) (under 17200, Plaintiff

    may redress violations of the Lanham Act.).

    By proscribing any unlawful business practice, Section 17200 borrows

    violations of other laws and treats them as unlawful practices that the unfair

    competition law makes independently actionable. Id., citing State Farm Fire &

    Casualty Co. v. Superior Court, 45 Cal. App. 4th 1093, 1103 (1996). In effect, the

    unlawful prong of 17200 makes a violation of the underlying law a per se

    violation of 17200. Id.; see also Kasky v. Nike, Inc., 27 CA 4th 939, 950 (2002).

    Virtually any law or regulationfederal or state, statutory or common law

    can serve as predicate for a 17200 unlawful violation. Thus, if a business

    practice violates any law, it also violates 17200 and may be redressed under that

    section. People v. E.W.A.P., Inc. 106 CA3d 315, 319 (1980). While the Copyright

    Act is one of the few exceptions based on exclusive federal jurisdiction [see 17

    U.S.C. 301; Melchior v. New Line Prods., Inc., 106 Cal. App. 4th 779, 791 (2003)],

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 26 of 30 Page ID #:376

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    the Lanham Act is indisputably among the statutes that may be borrowed.

    Denbicare U.S.A., Inc. v. Toys R Us, Inc. 84 F3d 1143 (9th Cir. 1996). Thus,

    because Plaintiff Reyes adequately alleges violation of the Lanham Act, as

    explained above, he also properly pleads a cause of action for violation of Section

    17200.

    B. Reyes properly pleads fraudulent business practices under 17200. Trademark infringement also constitutes statutory unfair competition under

    the fraudulent prong. The courts have recognized that [a]n action for unfair

    competition under 17200 is substantially congruent to a trademark infringement

    claim under the Lanham Act. Academy of Motion Picture Arts & Sciences v.

    Creative House Promotions, Inc. 944 F2d 1446, 1457 (9th Cir. 1991). Indeed, in

    Kelley Blue Book v. CarSmarts, Inc. 802 F. Supp. 278 (CD CA 1992), this federal

    district court held that where a Lanham Act violation is establishedi.e., likelihood

    of confusiona 17200 violation would also be established. Kelley Blue Book, 802

    F. Supp. 278 at 288, 289. In that case, the court found that the defendant's toll-free

    number (1800BLUE BOOK) would likely confuse the public into thinking it

    had an affiliation with Kelley's Blue Book, which is published by plaintiff. This

    same misleading nature of the communication necessarily constitutes statutory

    unfair completion under the fraudulent prong. Id.

    Like in Kelley Blue Book, Plaintiff Reyes claims that Defendants use of his

    signature, source-identifying elements, is designed to create and does create the

    false and deceptive commercial impression that the Just Cavalli garments and

    accessories are associated with and/or manufactured by Reyes.5 [FAC 62.] As

    5 Bizarrely, Defendants cite this very paragraph of the FAC in attributing to Reyes the allegation that that Moving Defendants have misrepresented Plaintiffs [sic] work as their own i.e., that Defendants have engaged in reverse passing off. [Motion 9:21, 22.] But this paragraph of the FAC is one of the clearest examples that this is a passing off case.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 27 of 30 Page ID #:377

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    explained above, this same misleading nature of the communication necessarily

    constitutes statutory unfair competition under the fraudulent prong.

    VI. PLAINTIFFS FIFTH CAUSE OF ACTION FOR COMMON LAW UNFAIR COMPETITION SURVIVES

    The same key argument advanced above with respect to statutory unfair

    competition applies equally to the common law variety. Defendants argument that

    the claim is barred depends on this Court agreeing that Reyes Lanham Act claim is

    barred. But because the Lanham Act claim survives, as explained above, so too does

    its common law unfair competition analog.

    In other words, in challenging Plaintiff Reyess Fifth claim for Unfair

    Competition under California common law, Defendants again ignore Reyess

    Lanham Act claims, and argue only that the Copyright Act preempts Reyess

    common law claim. [Motion 12:26-13:3.] As with his Section 17200 claim, Reyess

    garden variety passing off claim under the Lanham Act is an entirely proper basis

    for his unfair competition claim under California common law.

    Unfair competition originated as a common law tort. At common law, before

    the enactment of any statutory prohibition against unfair competition, unfair

    competition had a stable and relatively narrow meaning that focused on business

    practices that harmed competitors by deceiving customers. Dunston v. Los Angeles

    Van etc. Co., 165 Cal. 89, 94 (1913). Originally, it was the deceptive passing off

    of ones goods or services as those of another. The fundamental principle

    underlying this entire branch of the law is, that no man has the right to sell his goods

    as the goods of a rival trader. Weinstock, Lubin & Co. v. Marks, 109 Cal. 529, 539

    (1895); see also Lutz v. Western Iron & Metal Co., 190 Cal. 554, 561 (1923);

    Banzhaf v. Chase 150 Cal. 180, 183 (1907); Pierce v. Guittard 68 Cal. 68, 71-72

    (1885).

    California unfair competition law is substantially congruent to the Lanham

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 28 of 30 Page ID #:378

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    PLAINTIFFS OPPOSITION TO DEFENDANTS MOTION TO DISMISS

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    Act, and a plaintiff complaining of trademark infringement in federal court may

    invoke either federal or state protections, or both. Intl Order of Jobs Daughters v.

    Lindeburg & Co., 663 F.2d 912, 916 (9th Cir. 1980). The primary consideration

    in trademark-related unfair competition cases in California, as elsewhere, is the

    likelihood of confusion. Academy of Motion Picture Arts and Sciences v. Creative

    House Promotions, Inc., 728 F. Supp. 1442, 1452 (C.D. Cal. 1989) aff'd in part,

    rev'd in part, (9th Cir. 1991) 944 F.2d 1446.

    As explained above, Plaintiff Reyes has properly pled a cause of action for

    passing off under the Lanham Act. [FAC 55-72.] Specifically, Reyes alleges

    that Defendants have wrongfully appropriated his business and goodwill value for

    themselves, deceiving consumers, causing harm to his business, and diluting the

    value of his rights and reputation. [FAC 67, 68.] These allegations are clearly

    sufficient to state a cause of action for unfair competition under California common

    law.

    VII. CONCLUSION Its hard to accept that Defendants embrace their own analysis, which is

    overly simplistic at every turn. Their arguments relating to copyright management

    information rely on two long-discredited cases to support a questionable reading of

    the statutewhen the cases that do the discrediting are not hard to find. And their

    arguments relating to trademark rely on a remarkable misreading of Reyess claims

    as being for reverse passing off, and a failure to offer anything but the most facile

    analysis of the Dastar holding.

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 29 of 30 Page ID #:379

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    DATED: December 15, 2014 ERIKSON LAW GROUP By: /s/ David Alden Erikson Attorneys for Plaintiffs JASON WILLIAMS,

    VICTOR CHAPA, and JEFFREY RUBIN

    Case 2:14-cv-06659-AB-JEM Document 49 Filed 12/15/14 Page 30 of 30 Page ID #:380