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Live Face on Web, LLC v. Emerson Cleaners, Inc.

Citations: 66 F. Supp. 3d 551; 113 U.S.P.Q. 2d (BNA) 1169; 2014 U.S. Dist. LEXIS 171667; 2014 WL 7011217Docket: Civil No. 14-00182 (JEI/AMD)

Court: District Court, D. New Jersey; December 10, 2014; Federal District Court

Narrative Opinion Summary

In a copyright infringement case, Plaintiff LFOW, a developer of licensed software for online advertising, filed a suit against Defendant Emerson Cleaners, Inc., alleging unauthorized use of its software obtained from Tweople, Inc. Emerson's motion to dismiss was partially granted by the court, which dismissed LFOW’s contributory infringement claim but allowed claims for direct and vicarious infringement to proceed. The court noted that LFOW’s complaint sufficiently alleged that Emerson's website caused the downloading of LFOW's software into users' devices, satisfying the requirements for a direct infringement claim under 17 U.S.C. § 501. Additionally, the vicarious infringement claim was upheld, with the court acknowledging Emerson's potential control over the infringing activity and its financial interest. However, the court found LFOW's contributory infringement claim lacking due to insufficient evidence of Emerson's knowledge of the infringement by Tweople. The court emphasized the necessity for factual allegations to withstand a Rule 12(b)(6) motion to dismiss and underscored the complexities of copyright law in the digital arena. Emerson's arguments concerning its role were deemed more suitable for summary judgment than dismissal, with the primary issue highlighted as Tweople's actions rather than Emerson's.

Legal Issues Addressed

Contributory Copyright Infringement

Application: The court dismisses LFOW's claim due to insufficient allegations of Emerson's knowledge of Tweople’s infringement.

Reasoning: While LFOW posits that its claim regarding Emerson directing visitors to infringing code implies knowledge, the Court finds this insufficient to demonstrate actual or constructive knowledge or willful blindness.

Direct Copyright Infringement under 17 U.S.C. § 501

Application: The court finds that LFOW's allegations that Emerson’s website causes a copy of its software to be downloaded into users’ devices are sufficient to support a claim of copying.

Reasoning: LFOW's allegation that Emerson’s website causes a copy of its software to be downloaded into users’ devices is deemed sufficient to support a claim of copying.

Federal Rule of Civil Procedure 12(b)(6)

Application: The court emphasizes that a complaint must provide factual allegations supporting a plausible claim for relief to withstand a motion to dismiss.

Reasoning: The court highlights that to withstand dismissal under Federal Rule of Civil Procedure 12(b)(6), a complaint must provide factual allegations that support a plausible claim for relief, rather than mere legal conclusions or speculative assertions.

Vicarious Copyright Infringement

Application: LFOW has adequately stated a claim by alleging that Emerson had the right and ability to control the infringing activity and a direct financial interest in it.

Reasoning: LFOW has adequately stated a claim for vicarious copyright infringement, which requires showing that the defendant has the right and ability to control the infringing activity and a direct financial interest in it.

Volitional Conduct Requirement

Application: The court finds that LFOW's allegations of Emerson facilitating downloads sufficiently satisfy the volitional conduct element for direct infringement.

Reasoning: LFOW claims that Emerson’s operation of its own website goes beyond merely relaying information, alleging that the website facilitates the downloading of LFOW software. This claim satisfies the volitional conduct element necessary for direct copyright infringement.