throbber
Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 1 of 29
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA
`
`MEDIA.NET ADVERTISING FZ-LLC,
`
`Case No. 14-cv-03883-EMC
`
`
`
`ORDER DENYING DEFENDANT’S
`MOTION FOR SUMMARY JUDGMENT
`AND GRANTING IN PART
`DEFENDANT’S MOTION TO DISMISS
`
`Plaintiff,
`
`v.
`
`NETSEER, INC.,
`
`Defendant.
`
`Docket No. 36
`
`
`
`
`
`I.
`
` INTRODUCTION
`
`Plaintiff Media.net Advertising FZ-LLC initiated this lawsuit against Defendant NetSeer,
`
`
`
`
`
`
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`11
`
`12
`
`13
`
`14
`
`15
`
`16
`
`Inc. The First Amended Complaint (―FAC‖) asserts two claims of copyright infringement, as well
`
`17
`
`as claims of intentional interference with business contract, intentional interference with
`
`18
`
`prospective business relationship, and violations of California‘s Unfair Competition Law
`
`19
`
`(―UCL‖), California Business and Professions Code section 17200 et seq. Docket No. 32.
`
`20
`
`Defendant moves for summary judgment on the copyright infringement claims and to
`
`21
`
`dismiss the state law claims. Docket No. 36. In the alternative, Defendant seeks dismissal of the
`
`22
`
`copyright claims or a more definite statement. Id. Having considered the parties‘ briefs and oral
`
`23
`
`argument, as well as the relevant legal authority, the Court hereby DENIES Defendant‘s Motion
`
`24
`
`for Summary Judgment and GRANTS IN PART Defendant‘s Motion to Dismiss.
`
`25
`
`26
`
`II. BACKGROUND
`
`Plaintiff is a leading provider of online contextual-advertising services and offers its
`
`27
`
`customers a website-based advertisement creation platform (the ―Platform‖) which allows its users
`
`28
`
`to create custom advertisements. Id. ¶¶ 1, 21, 24. Website publishers using the Platform can place
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 2 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`a Media.net ad unit on their websites so that when a website visitor clicks on the ad unit, the
`
`visitor is taken to a ―search-results page‖ which displays relevant advertisements. Id. ¶ 26. For
`
`example, if a website visitor clicked on a keyword relating to travel, the search results page could
`
`show advertisements promoting deals on hotel rooms. See, e.g., Ex. C, FAC. Plaintiff published
`
`the original version of its search results page (―Original Media.net Results Page‖) on February 1,
`
`2014. Id. ¶ 28. On May 28, 2014, Plaintiff published a revised search results page (―Revised
`
`Media.net Results Page‖), which is derivative of the Original. Id. ¶¶ 33-34.
`
`Plaintiff obtained a copyright registration for its Original Media.net Results Page with
`
`registration number TX 7-896-126 (the ―‘126 Registration‖) and for its Revised Media.net Results
`
`10
`
`Page with registration number TX 7-896-131 (the ―‘131 Registration‖). Id. ¶¶ 32, 37; Exs. A-B,
`
`11
`
`FAC. Both registrations became effective on August 16, 2014. ‘126 Reg.; ‘131 Reg. The
`
`12
`
`certificates list ―Media.Net Software Services (India) Private Limited‖ as the author, which
`
`13
`
`created ―HTML Code and text,‖ and list ―Media.net Advertising FZ-LLC‖ as the claimant. Id.
`
`14
`
`Defendant is a competing contextual-advertising provider. FAC ¶¶ 38-39. Defendant also
`
`15
`
`provides advertising units that its customers can place on their websites. Id. ¶ 39. Like Plaintiff‘s
`
`16
`
`Platform, when a user clicks on Defendant‘s advertising unit, the user is directed to a search-
`
`17
`
`results page that offers relevant advertisements. Id. ¶ 40. Plaintiff alleges Defendant directly
`
`18
`
`copied Plaintiff‘s hypertext markup language (―HTML‖) code, including arbitrarily-named
`
`19
`
`variables and portions of the code that have no function, and used it to create Defendant‘s own
`
`20
`
`search results page. Id. ¶¶ 42-46.
`
`21
`
`Plaintiff further alleges Defendant‘s unauthorized use of the HTML code allowed it to gain
`
`22
`
`an unfair competitive advantage. Id. ¶ 58. In particular, Plaintiff claims Defendant undermined
`
`23
`
`Plaintiff‘s relationship with Microsoft by representing that Defendant‘s products could work just
`
`24
`
`as well as Plaintiff but at a lower cost. Id. ¶¶ 60-61. Defendant‘s infringement improved its
`
`25
`
`position in the contextual-advertising market and allowed it to earn revenue from customers it
`
`26
`
`obtained as a result of using Plaintiff‘s product. Id. ¶ 67-69. Consequently, Plaintiff was forced to
`
`27
`
`lower the rates it charged its customers, causing it to lose millions of dollars in revenue. Id. ¶ 65.
`
`28
`
`Plaintiff‘s reputation as the leader in contextual-advertising services has diminished. Id. ¶ 71.
`
`2
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 3 of 29
`
`
`
`A. Motion for Summary Judgment
`
`III. LEGAL STANDARD
`
`Under Federal Rule of Civil Procedure 56(a), a party is entitled to summary judgment if
`
`the ―movant shows that there is no genuine dispute as to any material fact.‖ The movant bears the
`
`burden of ―identifying those portions of the pleadings, depositions, answers to interrogatories, and
`
`admissions on file, together with the affidavits, if any, which it believes demonstrate the absence
`
`of a genuine issue of material fact.‖ Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986) (quotation
`
`marks omitted). A material fact is one that may affect the outcome of the case. George v. Morris,
`
`736 F.3d 829, 834 (9th Cir. 2013) (citing Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`(1986)). A genuine dispute as to material fact exists if there is sufficient evidence such that a
`
`11
`
`reasonable jury could find for the non-moving party. Anderson, 477 U.S. at 248. This requires
`
`12
`
`more than a ―mere existence of a scintilla of evidence in support of the plaintiff‘s position[.]‖ Id.
`
`13
`
`at 252.
`
`14
`
`When determining whether there is a genuine issue of material fact, ―a court must view the
`
`15
`
`evidence ‗in the light most favorable to the opposing party.‘‖ Tolan v. Cotton, 134 S. Ct. 1861,
`
`16
`
`1866 (2014) (quoting Adickes v. S.H. Kress & Co., 398 U.S. 144, 157 (1970)). Courts should also
`
`17
`
`draw reasonable inferences in favor of the non-moving party. Tolan, 134 S. Ct. at 1868. ―‗Where
`
`18
`
`the record taken as a whole could not lead a rational trier of fact to find for the nonmoving party,
`
`19
`
`there is no genuine issue for trial.‘‖ City of Pomona v. SQM N. Am. Corp., 750 F.3d 1036, 1049-
`
`20
`
`50 (9th Cir.) cert. denied sub nom. SQM N. Am. Corp. v. City of Pomona, Cal., 135 S. Ct. 870, 190
`
`21
`
`L. Ed. 2d 703 (2014) (quoting Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S.
`
`22
`
`574, 587 (1986)).
`
`23
`
`If the moving party has ―the burden of proof on an issue at trial, the movant must
`
`24
`
`affirmatively demonstrate that no reasonable trier of fact could find other than for the moving
`
`25
`
`party.‖ Soremekun v. Thrifty Payless, Inc., 509 F.3d 978, 984 (9th Cir. 2007). If, on the other
`
`26
`
`hand, the burden of proof rests on the non-moving party, ―the movant can prevail merely by
`
`27
`
`pointing out that there is an absence of evidence to support the nonmoving party‘s case.‖ Id. ―A
`
`28
`
`party opposing a properly supported motion for summary judgment may not rest upon mere
`
`3
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 4 of 29
`
`
`
`allegation or denials of his pleading, but must set forth specific facts showing there is a genuine
`
`issue for trial.‖ Anderson, 477 U.S. at 256.
`
`B.
`
`Motion to Dismiss
`
`Pursuant to Federal Rule of Civil Procedure 12(b)(6), a party may file a motion to dismiss
`
`on the failure to state a claim upon which relief may be granted. A Rule 12(b)(6) motion tests the
`
`sufficiency of a complaint by failing to allege ―enough facts to state a claim to relief that is
`
`plausible on its face.‖ Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). ―A claim has facial
`
`plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable
`
`inference that the defendant is liable for the misconduct alleged.‖ Ashcroft v. Iqbal, 556 U.S. 662,
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`678 (2009) (citing Twombly, 550 U.S. at 556). Although a complaint need not contain ―detailed
`
`11
`
`factual allegations,‖ a complaint that contains merely ―a formulaic recitation of the elements of a
`
`12
`
`cause of action will not do.‖ Twombly, 550 U.S. at 555. Rather, ―‗[f]actual allegations must be
`
`13
`
`enough to raise a right to relief above the speculative level.‘‖ Williams v. Gerber Prod. Co., 552
`
`14
`
`F.3d 934, 938 (9th Cir. 2008) (quoting Twombly, 550 U.S. at 555). ―A claim has facial
`
`15
`
`plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable
`
`16
`
`inference that the defendant is liable for the misconduct alleged.‖ Iqbal, 556 U.S. at 678; see also
`
`17
`
`Twombly, 550 U.S. at 556. ―The plausibility standard is not akin to a ‗probability requirement,‘
`
`18
`
`but it asks for more than a sheer possibility that a defendant has acted unlawfully.‖ Id.
`
`19
`
`In ruling on a Rule 12(b)(6) motion, courts ―accept factual allegations in the complaint as
`
`20
`
`true and construe the pleadings in the light most favorable to the nonmoving party.‖ Manzarek v.
`
`21
`
`St. Paul Fire & Marine Ins. Co., 519 F.3d 1025, 1031 (9th Cir. 2008). Courts may dismiss a claim
`
`For the Northern District of California
`
`United States District Court
`
`22
`
`―only if it appears beyond doubt that the plaintiff could prove no set of facts in support of his
`
`23
`
`claim which would entitle him to relief.‖ Cook v. Brewer, 637 F.3d 1002, 1004 (9th Cir. 2011)
`
`24
`
`(quotation marks omitted). Courts should grant the plaintiff leave to amend ―‗if it appears at all
`
`25
`
`possible that the plaintiff can correct the defect.‘‖ Crowley v. Bannister, 734 F.3d 967, 977 (9th
`
`26
`
`Cir. 2013) (quoting Lopez v. Smith, 203 F.3d 1122, 1130 (9th Cir. 2000) (en banc)).
`
`4
`
`
`
`27
`
`28
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 5 of 29
`
`
`
`A.
`
`The Compendium
`
`IV. DISCUSSION
`
`The United States Copyright Office is ―‗the governmental agency that possesses special
`
`expertise in determining the bounds of copyright protection.‘‖ Garcia v. Google, Inc., 786 F.3d
`
`733, 741 n.7 (9th Cir. 2015) (quoting 2 Nimmer on Copyright § 7.16[B][3][b][vi]). In addition to
`
`administering the system of copyright registration, the Copyright Office works closely with
`
`Congress on matters relating to copyright laws. 17 U.S.C. § 701(a); 2 Nimmer on Copyright §
`
`7.26; see 17 U.S.C. § 701(b)(2) (―[T]he Register of Copyrights shall . . . [a]dvise Congress on
`
`national and international issues relating to copyright, other matters arising under this title, and
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`related matters‖); Feist Pub., Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 354-55 (1991) (―When
`
`11
`
`Congress decided to overhaul the copyright statute and asked the Copyright Office to study
`
`12
`
`existing problems, . . . the Copyright Office promptly recommended that Congress clear up the
`
`13
`
`confusion in the lower courts as to the basic standards of copyrightability.‖ (citation omitted));
`
`14
`
`Mills Music v. Snyder, 469 U.S. 153, 159-61 (1985) (describing Copyright Office and Congress‘s
`
`15
`
`general revision of copyright law in 1955); S. Rep. No. 101-268, at 6 (1990) (―Congress relies
`
`16
`
`extensively on the Copyright Office to provide its technical expertise in the legislative process.‖).
`
`17
`
`The Copyright Office publishes an administrative manual that contains, inter alia, legal
`
`18
`
`interpretations and guidance regarding copyright registrations. See U.S. Copyright Office,
`
`19
`
`Compendium of Copyright Practices (3d ed. 2014) (―Compendium (Third)‖). The Compendium
`
`20
`
`―provides guidance to copyright applicants, practitioners, scholars, the courts, and members of the
`
`21
`
`general public regarding institutional practices and related principles of law.‖ Id. Intro. at 1. The
`
`22
`
`Copyright Office first published the Compendium in 1967 and released the second edition
`
`23
`
`(―Compendium II‖) in 1984. Id. Intro. at 4. It revised the Compendium II first in 1988 and again
`
`24
`
`in 1998. See U.S. Copyright Office, Compendium of Copyright Practices (2d ed. 1984).
`
`25
`
`The Copyright Office released a draft of third edition of the Compendium on August 19,
`
`26
`
`2014. U.S. Copyright Office, U.S. Copyright Office Announcement Regarding Release of a Draft
`
`27
`
`of the Compendium of U.S. Copyright Office Practices, Third Edition (Aug. 19, 2014),
`
`28
`
`http://copyright.gov/newsnet/2014/555.html. This draft was the first major revision of the
`
`5
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 6 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`Compendium in over twenty years, and it took the Copyright Office over two years to complete.
`
`Id. The Compendium remained in draft form for approximately 120 days, during which time the
`
`Copyright Office accepted feedback on the draft from the public. Id. The Copyright Office
`
`released the final version of the third edition on December 22, 2014, and it became effective
`
`immediately. Compendium (Third) Intro. at 1.
`
`The Ninth Circuit has held that the Copyright Office‘s decisions and opinions are not
`
`entitled to the level of deference afforded under Chevron U.S.A. Incorporated v. Natural
`
`Resources Defense Council, Incorporated, 467 U.S. 837 (1984).1 Inhale, Inc. v. Starbuzz
`
`Tobacco, Inc., 755 F.3d 1038, 1041 (9th Cir. 2014), as amended July 9, 2014, cert. denied, 135 S.
`
`10
`
`Ct. 758 (2014) (―Because Chevron deference does not apply to internal agency manuals or opinion
`
`11
`
`letters, we defer to the Copyright Office‘s views expressed in such materials ―only to the extent
`
`12
`
`that those interpretations have the ‗power to persuade.‘‖). Instead, the Ninth Circuit has long held
`
`13
`
`that the Copyright Office‘s interpretations of copyright law are entitled to the lower level of
`
`14
`
`deference applicable under Skidmore v. Swift & Co., 323 U.S. 134, 140 (1944). See United States
`
`15
`
`v. Mead Corp., 533 U.S. 218, 227 (2001) (―[A]gencies charged with applying a statute necessarily
`
`16
`
`make all sorts of interpretive choices, and while not all of those choices bind judges to follow
`
`17
`
`them, they certainly may influence courts facing questions the agencies have already answered.‖).
`
`18
`
`Under Skidmore, the degree to which a court defers to an agency‘s opinion or interpretation ―will
`
`For the Northern District of California
`
`United States District Court
`
`19
`
`depend upon the thoroughness evident in its consideration, the validity of its reasoning, its
`
`20
`
`consistency with earlier and later pronouncements, and all those factors which give it power to
`
`21
`
`persuade, if lacking power to control.‖ Skidmore, 323 U.S. at 140; see Christensen v. Harris
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`1 Chevron deference is appropriate ―[w]hen Congress has explicitly left a gap for an agency to fill,
`[and] there is an express delegation of authority to the agency to elucidate a specific provision of
`the statute by regulation[.]‖ Mead Corp., 533 U.S. at 227 (quotations and citation omitted).
`Under those circumstances, ―any ensuing regulation is binding in the courts unless procedurally
`defective, arbitrary or capricious in substance, or manifestly contrary to the statute.‖ Id. An
`agency‘s interpretation of a statute ―certainly may influence courts facing questions the agencies
`have already answered.‖ Id. Courts may defer to an agency‘s interpretation in the absence of
`―express [congressional] delegation of specific interpretative authority‖ where the agency‘s
`authority and other circumstances otherwise make it apparent ―that Congress would expect the
`agency to be able to speak with the force of law when it addresses ambiguity in the statute or fills
`a space in the enacted law, even one about which ‗Congress did not actually have an intent‘ as to a
`particular result.‖ Id. at 229 (quoting Chevron, 467 U.S. at 845).
`6
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 7 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`Cnty., 529 U.S. 576, 587 (2000) (holding agency manuals are entitled to Skidmore deference, ―but
`
`only to the extent that those interpretations have the power to persuade.‖). See also Inhale, Inc.,
`
`755 F.3d at 1041 (―When interpreting the Copyright Act, we defer to the Copyright Office‘s
`
`interpretations in the appropriate circumstances‖ but ―only to the extent that those interpretations
`
`have the power to persuade‖ (internal quotations omitted)); Batjac Prods. Inc. v. GoodTimes
`
`Home Video Corp., 160 F.3d 1223, 1231 (9th Cir. 1998) (concluding interpretation set forth in
`
`Compendium II was ―reasonable and consistent‖ and thus ―entitled to deference.‖); Marascalco v.
`
`Fantasy, Inc., 953 F.2d 469, 473 (9th Cir. 1991) (―We agree with the D.C. Circuit that the Register
`
`has the authority to interpret the copyright laws and that its interpretations are entitled to judicial
`
`10
`
`deference if reasonable.‖ (citing Cablevision Sys. Dev. Co. v. Motion Picture Ass’n of Am., Inc.,
`
`11
`
`836 F.2d 599, 607-10 (D.C. Cir. 1988)). In doing so, the Ninth Circuit notes ―[t]he Copyright
`
`12
`
`Office‘s well-reasoned position reflects a body of experience and informed judgment to which
`
`13
`
`courts and litigants may properly resort for guidance.‖ Garcia v. Google, Inc., 786 F.3d 733, 741-
`
`14
`
`15
`
`16
`
`17
`
`18
`
`19
`
`20
`
`21
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`42 (9th Cir. 2015) (quotation marks omitted).2
`
`
`2 The Ninth Circuit‘s position is consistent with its sister courts. Other Courts of Appeal also
`defer to the Copyright Office‘s interpretations and practices, and while the degree of deference
`varies somewhat between the circuits, none have applied Chevron deference. The Second, Sixth,
`and Eleventh, and District of Columbia Circuits, like the Ninth, afford the Copyright Office‘s
`interpretations Skidmore deference. See Cartoon Network LP, LLLP v. CSC Holdings, Inc., 536
`F.3d 121, 129 (2d Cir. 2008) (―We assume, as the parties do, that the Copyright Office‘s
`pronouncement deserves only Skidmore deference, deference based on its ‗power to persuade.‘‖);
`Varsity Brands, Inc. v. Star Athletica, LLC, 799 F.3d 468, 479-81 (6th Cir. 2015) (collecting cases
`and holding that Copyright Office‘s determination that work is protectable is entitled to Skidmore
`deference); Olem Shoe Corp. v. Wash. Shoe Corp., 591 F. App‘x 873, 882 (11th Cir. 2015) (giving
`Skidmore deference to Compendium‘s interpretation ―as the copyright law is ‗highly detailed‘ and
`it is apparent that the Copyright Office ‗can bring the benefit of specialized experience to bear on
`the subtle questions in this case.‘‖ (quoting Mead Corp., 533 U.S. at 235)); Cablevision Sys., 836
`F.2d at 610 (D.C. Cir. 1988) (Copyright Office‘s ―interpretations are therefore due the same
`deference given those of any other agency.‖). The Third Circuit has also deferred to the Copyright
`Office but did so without stating to what degree. See Southco, Inc. v. Kanebridge Corp., 390 F.3d
`276, 286 n.5 (3d Cir. 2004) (en banc) (noting ―the practice of the Copyright Office reflects a body
`of experience and informed judgment to which courts and litigants may properly resort for
`guidance‖ but declining to ―decide what degree of deference is warranted under the
`circumstances‖ (quotation omitted)). Cf. De Sylva v. Ballentine, 351 U.S. 570, 577-78 (1956),
`(while the Court ―would ordinarily give weight to the interpretation of an ambiguous statute by the
`agency charged with its administration, . . . [it thought] the Copyright Office‘s explanation of its
`practice deprives the practice of any force as an interpretation of the statute, and [it] therefore d[id]
`not rely on it in th[at] instance.‖) (citation omitted)).
`
`
`7
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 8 of 29
`
`
`
`Accordingly, the Court affords the Compendium Skidmore deference and adopts the
`
`Copyright Office‘s interpretations of copyright law where it finds them reasonable and persuasive.
`
`Here, neither party disputes the interpretations at issue contained in the most recent Compendium
`
`and the Court finds those interpretations reasonable.
`
`B.
`
`Copyright Infringement Claims
`
`1.
`
`Motion for Summary Judgment
`
`In order to prevail on its copyright infringement claims, Plaintiff must prove ―(1)
`
`ownership of a valid copyright, and (2) copying of constituent elements of the work that are
`
`original.‖ Feist Publ’n, 499 U.S. at 361. Defendant‘s Motion is based on the first element;
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`10
`
`Defendant seeks summary judgment on the basis that Plaintiff‘s copyright registrations do not
`
`11
`
`contain copyrightable material.3 Mot. at 3-7. In part, Defendant argues it is entitled to summary
`
`12
`
`judgment because the look and feel of Plaintiff‘s webpages is not entitled to copyright protection.
`
`13
`
`Mot. at 13-17.
`
`14
`
`Plaintiff‘s FAC alleges Defendant infringed the look and feel of Plaintiff‘s webpages, as
`
`15
`
`well as other elements of those pages. See FAC ¶ 2 (―Net[S]eer . . . misappropriated Media.net‘s
`
`16
`
`copyrighted search-results pages‘ code, design, and look and feel in creating its own results
`
`17
`
`pages.‖); id. ¶ 57 (―Net[S]eer stole the look and feel of Media.net‘s advertisement creatives and
`
`18
`
`search-results pages. . . .‖); id. ¶ 98 (―Defendants intentionally induced a disruption of the business
`
`19
`
`relationship . . . by stealing the Media.net Results Pages‘ source code, design, and look and
`
`20
`
`feel . . . .‖). Plaintiff now acknowledges that the look and feel of its search results page is not
`
`21
`
`subject to copyright protection. Opp‘n at 9 (―Media.net did not seek a copyright in the content
`
`For the Northern District of California
`
`United States District Court
`
`22
`
`23
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`3 In an infringement action, the Court must address the threshold question of the ownership of a
`valid copyright. Topolos v. Caldewey, 698 F.2d 991, 994 (9th Cir. 1983) (holding ―district court
`erred in concluding it lacked jurisdiction over . . . actions for infringement because it was first
`required to resolve a threshold question of copyright ownership which in turn called for
`interpretation of a contract.‖); Jonathan Browning, Inc. v. Venetian Casino Resort LLC, 2009 WL
`1764652, at *1 (N.D. Cal. June 18, 2009) (―Determinations of copyrightability are indeed
`questions of law reserved for the judge, not the jury.‖); 2 Nimmer on Copyright § 12.10[B]
`(―[C]ertain . . . matters are reserved to the judge. Included are determinations of copyrightability
`in all instances.‖). Defendant does not contest ownership for purposes of this Motion, but it
`reserves the right to so challenge if the Court denies the motion. See Mot. at 4 n.4; pg. 17 of this
`Order.
`
`8
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 9 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`that one perceives on [its search results] pages. As a result, Plaintiff‘s copyrights do not grant it
`
`the exclusive right to the layout, format, or look and feel of its search results pages. [ ] Anyone –
`
`including NetSeer – is free to make pages that look like Media.net‘s.‖); id. at 13 (―The Media.net
`
`Registrations only claim protection in HTML code and accompanying text – they do not claim
`
`copyright protection in the resulting webpage. NetSeer‘s arguments about website look and feel
`
`are irrelevant.‖). Plaintiff‘s current position reflects the views of the Copyright Office: the
`
`Compendium makes it clear that a website‘s look and feel is not copyrightable subject matter.
`
`Compendium (Third) § 1007 (―Examples of uncopyrightable material include . . . [t]he layout,
`
`format, or ‗look and feel‘ of a website.‖); id. § 1007.4 (―The copyright law does not protect the
`
`10
`
`overall look and feel of a website.‖).
`
`11
`
`Instead, Plaintiff has now clarified that its copyright claim is based on its hypertext markup
`
`12
`
`language (―HTML‖) code that underlies its websites, contending that the HTML‘s code, not the
`
`13
`
`look and feel of the website itself, is copyrightable subject matter.
`
`14
`
`15
`
`a.
`
`
`
`Presumption of Validity
`
`The Copyright Act, 17 U.S.C. §§ 100-810, protects ―original works of authorship fixed in
`
`16
`
`any tangible medium of expression, now known or later developed, from which they can be
`
`17
`
`perceived, reproduced, or otherwise communicated, either directly or with the aid of a machine or
`
`18
`
`device.‖ 17 U.S.C. § 102(a). The Copyright Act charges the Register of Copyrights to determine
`
`19
`
`if a submission ―constitutes copyrightable subject matter and [to ensure] that the other legal and
`
`20
`
`formal requirements of this title have been met.‖ Id. at § 410(a). This process is more than a
`
`21
`
`―mere clerical function of recording application. Instead, the Register makes a judgment after
`
`22
`
`examining an application.‖ Alaska Stock, LLC v. Houghton Mifflin Harcourt Pub. Co., 747 F.3d
`
`23
`
`673, 683 (9th Cir. 2014). If the Register determines a submission is copyrightable and the other
`
`24
`
`requirements are fulfilled, ―the Register shall register the claim and issue to the applicant a
`
`25
`
`certificate of registration under the seal of the Copyright Office.‖ 17 U.S.C. § 410(a). If,
`
`26
`
`however, a submission ―does not constitute copyrightable subject matter or . . . the claim is invalid
`
`27
`
`for any other reason, the Register shall refuse registration and shall notify the applicant in writing
`
`28
`
`of the reasons for such refusal.‖ Id. § 410(b).
`
`9
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 10 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`―A copyright registration is ‗prima facie evidence of the validity of the copyright and the
`
`facts stated in the certificate‘‖ and creates a rebuttable presumption of validity. United Fabrics
`
`Int’l, Inc. v. C&J Wear, Inc., 630 F.3d 1255, 1257 (9th Cir. 2011) (quoting 17 U.S.C. § 410(c)).
`
`The party disputing validity ―must simply offer some evidence or proof to dispute or deny the
`
`plaintiff‘s prima facie case of infringement.‖ Lamps Plus, Inc. v. Seattle Lighting Fixture Co., 345
`
`F.3d 1140, 1144 (9th Cir. 2003) (quotation omitted). If that party successfully rebuts the
`
`presumption, the burden shifts back to the plaintiff to demonstrate a valid copyright. See Entm’t
`
`Research Grp. v. Genesis Creative Grp., 122 F.3d 1211, 1218 (9th Cir. 1997) (finding, where
`
`defendant ―had rebutted the statutory presumption, . . . the district court properly shifted the
`
`10
`
`burden of proving validity—the threshold issue for copyright infringement lawsuits—back to [the
`
`11
`
`plaintiff].‖).
`
`12
`
`The FAC alleges Plaintiff holds copyright registrations for the Original and Revised
`
`13
`
`Media.net Results Pages, and the two registration certificates are attached as exhibits. FAC ¶¶ 31-
`
`14
`
`37; see ‘126 Reg.; ‘136 Reg. These certificates create a presumption that Plaintiff‘s ‘126 and ‘131
`
`15
`
`copyright registrations are valid. Compendium II, which was first published in 1984 and was
`
`16
`
`effective at the time Plaintiff submitted its copyright applications, is silent as to the question of the
`
`17
`
`copyrightability of HTML code. Nevertheless, the Copyright Office had likely contemplated the
`
`18
`
`issue when it evaluated Plaintiff‘s applications and decided to issue the registrations. The Court
`
`19
`
`notes that the Copyright Office spent two and a half years revising the Compendium and released
`
`20
`
`the final version on December 22, 2014, approximately four months after Plaintiff‘s ‘126 and ‘131
`
`21
`
`copyright registrations became effective. See Compendium (Third) Acknowledgments, Intro. In
`
`22
`
`addition, on August 19, 2014, the Copyright Office released a public draft of the Compendium, a
`
`23
`
`mere three days after Plaintiff‘s copyright registrations went into effect. Given the Copyright
`
`24
`
`Office‘s decision to issue Plaintiff copyright registrations and also the proximity between the
`
`25
`
`Compendium‘s release and Plaintiff‘s registrations, Plaintiff‘s copyright registrations are clearly
`
`26
`
`entitled to a presumption of validity. It is fair to infer that the Copyright Office‘s decision to issue
`
`27
`
`to registrations were consistent with its views expressed in Compendium (Third) issued shortly
`
`28
`
`thereafter.
`
`10
`
`For the Northern District of California
`
`United States District Court
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 11 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`b.
`
`
`
`Copyrightable Subject Matter
`
`Defendant argues Plaintiff‘s copyright registrations are invalid because they do not contain
`
`copyrightable subject matter. Specifically, Defendant asserts Plaintiff‘s HTML code consists
`
`solely of uncopyrightable Cascading Style Sheets (―CSS‖), which renders Plaintiff‘s copyright
`
`registrations invalid. Mot. at 3-4, 15-17. Defendant presents as support the Declaration of
`
`Edward R. Tittel, a business and computing technology author and consultant. Tittel Decl. ¶ 2,
`
`Ex. 2, Mot. Having examined the HTML code at issue, Mr. Tittel opines that ―[t]he accused
`
`markup occurs in the context of [a] pair of . . . HTML[] documents.‖ Id. ¶ 7. However, ―that
`
`accused markup consists almost entirely of Cascading Style Sheet markup, enclosed between a
`
`10
`
`pair of HTML elements that denote an embedded style sheet within an HTML document[.]‖ Id.
`
`11
`
`In response, Plaintiff argues its copyright registrations are valid because its HTML code is
`
`12
`
`a ―literary work‖ under section 102(a) of the Copyright Act. Opp‘n at 11; see 17 U.S.C. §
`
`13
`
`102(a)(1) (―Copyright protection subsists . . . in original works of authorship fixed in any tangible
`
`14
`
`medium of expression . . . . Works of authorship include . . . literary works[.]‖). Plaintiff offers
`
`15
`
`the declaration of Dr. John C. Mitchell, 4 a professor of computer science at Stanford University,
`
`16
`
`who examined Plaintiff‘s HTML code. Mitchell Decl., Docket No. 53. Dr. Mitchell opines that
`
`17
`
`the code ―contain a substantial amount of expressive conduct.‖ Id. ¶ 41. In particular, he points to
`
`18
`
`names of class styles in CSS; a programmer can name a class style however he so desires. Id. ¶
`
`19
`
`43. Plaintiff essentially argues that this infuses the HTML code with creativity sufficient to
`
`For the Northern District of California
`
`United States District Court
`
`20
`
`establish copyrightability.
`
`21
`
`22
`
`2.
`
`HTML & CSS
`
`HTML ―is the standard markup language used in the design of websites‖ and ―establishes
`
`23
`
`the format and layout of text and graphics when a user views a website by instructing the user‘s
`
`24
`
`25
`
`26
`
`27
`
`28
`
`
`4 Defendant objects to Dr. Mitchell‘s testimony and alleges Dr. Mitchell examined materials not
`made available to Defendant. Docket No. 57. In his Declaration, Dr. Mitchell refers to ―deposit
`materials.‖ Id. at 1. Defendant contends it requested the deposit materials and that counsel for
`Plaintiff assured Defendant those materials had been produced. Id. However, because Dr. Mitchel
`does not refer to Exhibits C or D, Defendant argues it cannot be certain what Dr. Mitchell
`reviewed. Id. At the December 7 hearing, Plaintiff‘s counsel represented that it is simply a matter
`of terminology – the deposit materials are in fact Exhibits C and D, which were available to
`Defendant. There is no evidence to the contrary. Defendant‘s objection is overruled.
`11
`
`

`
`Case 3:14-cv-03883-EMC Document 69 Filed 01/12/16 Page 12 of 29
`
`
`
`1
`
`2
`
`3
`
`4
`
`5
`
`6
`
`7
`
`8
`
`9
`
`browser to present material in a specified manner.‖ Compendium (Third) § 1002.4. HTM

This document is available on Docket Alarm but you must sign up to view it.


Or .

Accessing this document will incur an additional charge of $.

After purchase, you can access this document again without charge.

Accept $ Charge
throbber

Still Working On It

This document is taking longer than usual to download. This can happen if we need to contact the court directly to obtain the document and their servers are running slowly.

Give it another minute or two to complete, and then try the refresh button.

throbber

A few More Minutes ... Still Working

It can take up to 5 minutes for us to download a document if the court servers are running slowly.

Thank you for your continued patience.

This document could not be displayed.

We could not find this document within its docket. Please go back to the docket page and check the link. If that does not work, go back to the docket and refresh it to pull the newest information.

Your account does not support viewing this document.

You need a Paid Account to view this document. Click here to change your account type.

Your account does not support viewing this document.

Set your membership status to view this document.

With a Docket Alarm membership, you'll get a whole lot more, including:

  • Up-to-date information for this case.
  • Email alerts whenever there is an update.
  • Full text search for other cases.
  • Get email alerts whenever a new case matches your search.

Become a Member

One Moment Please

The filing “” is large (MB) and is being downloaded.

Please refresh this page in a few minutes to see if the filing has been downloaded. The filing will also be emailed to you when the download completes.

Your document is on its way!

If you do not receive the document in five minutes, contact support at support@docketalarm.com.

Sealed Document

We are unable to display this document, it may be under a court ordered seal.

If you have proper credentials to access the file, you may proceed directly to the court's system using your government issued username and password.


Access Government Site

We are redirecting you
to a mobile optimized page.





Document Unreadable or Corrupt

Refresh this Document
Go to the Docket

We are unable to display this document.

Refresh this Document
Go to the Docket