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Fragrancenet.com, Inc. v. Fragrancex.com, Inc.

Citation: 679 F. Supp. 2d 312Docket: No. 06-CV-2225(JFB)(AKT)

Court: District Court, E.D. New York; January 13, 2010; Federal District Court

Narrative Opinion Summary

In this case, FragranceNet.com, Inc. brings a lawsuit against FragranceX.com, Inc. alleging copyright infringement and trademark violations. The plaintiff claims infringement on over nine hundred copyrighted images and unauthorized use of its trademarks in metatags and Google's AdWords program. The defendant seeks dismissal of the complaint, arguing lack of originality in the images and disputing trademark ownership. The court denies the motion to dismiss, finding that FragranceNet has presented plausible claims. The court emphasizes that the originality of the images constitutes a factual issue unsuitable for resolution at this stage, given the presumption of originality from copyright registration. Additionally, the court confirms that FragranceNet holds enforceable trademark rights due to the assignment from Telescents, Inc. The court also addresses the defendant's champerty claim regarding the assignment, determining it is not applicable as the assignment was not primarily for litigation purposes. The case will proceed with discovery under the guidance of Magistrate Judge Tomlinson, with the court finding sufficient factual allegations to support both copyright and trademark claims.

Legal Issues Addressed

Champerty and Assignment of Claims

Application: The assignment of trademarks to FragranceNet is not champertous as it was not primarily intended for litigation.

Reasoning: If the intent to sue is merely incidental, it does not constitute champerty. Determining the intent of an assignee is typically a factual question for the trier of fact.

Derivative Work and Copyright Protection

Application: Photographs of third-party intellectual property may be protected by copyright if they exhibit original elements contributed by the photographer.

Reasoning: The court clarifies that copyright for photographs derives from the photographer's original interpretation, including factors like posing, lighting, and angles, rather than the subject itself.

Originality in Copyright Law

Application: The plaintiff's images are presumed original due to copyright registration, shifting the burden to the defendant to challenge this presumption.

Reasoning: The originality requirement, as clarified by the Supreme Court, mandates that a work must be independently created and not copied from existing works, but it does not require novelty.

Rule 12(b)(6) Motion to Dismiss Standard

Application: The court evaluates whether the plaintiff's allegations, assumed true, state a plausible claim for relief.

Reasoning: In reviewing a motion to dismiss under Federal Rule of Civil Procedure 12(b)(6), the court must accept the factual allegations in the complaint as true and draw all reasonable inferences in favor of the plaintiff.

Trademark Assignment and Enforceability

Application: FragranceNet holds enforceable rights to the trademarks due to assignment from Telescents, allowing it to pursue infringement claims.

Reasoning: FragranceNet, as an assignee of Telescents, has the right to sue for both past and future trademark infringements, supported by previous case law which allows such assignments.