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IMAPIZZA, LLC,
Plaintiff-Appellant,
–v–
Defendants-Appellees.
___________________________
ON APPEAL FROM THE U.S. DISTRICT COURT FOR THE
DISTRICT OF COLUMBIA
Andrew D. Skale
David Barmak
(Application for Admission Pending)
MINTZ LEVIN COHN FERRIS
MINTZ LEVIN COHN FERRIS
GLOVSKY AND POPEO, PC
GLOVSKY AND POPEO, PC
701 Pennsylvania Avenue, NW, Suite 900
3580 Carmel Mountain Road, Suite 300
Washington, DC 20004
San Diego, California 92130
(202) 434-7300
(858) 314-1500
dbarmak@mintz.com
adskale@mintz.com
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Pursuant to Rule 26.1 of the Federal Rules of Appellate Procedure and D.C.
Circuit Rules 12(f) and 26.1, Appellant IMAPizza, LLC hereby provides the
Delaware. Its principal place of business is located at 500 Penn Street, N.E.
Washington D.C. 20002 and its general purpose is to own and operate pizza
restaurants.
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TABLE OF CONTENTS
ARGUMENT
II. The Court Erred in Dismissing the First Cause of Action for U.S.
Copyright Infringement By Concluding That No Act Plausibly
Constituted Infringement Within the United States ................................. 17
i
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III. The Court Erred in Dismissing the Third and Fourth Causes
of Action under the Lanham Act by Concluding the
Complaint Failed to Justify Extraterritorial Application
of the Lanham Act .................................................................................... 26
IV. The Court Erred in Dismissing the Fifth Cause of Action for Trespass
by Concluding it Failed Based on Consent and Scope Of Consent
and the Inapplicability of Fraud or Mistake ............................................. 31
CONCLUSION ........................................................................................................ 38
ii
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TABLE OF AUTHORITIES
PAGE(S)
Cases
Browning v. Clinton,
292 F.3d 235 (D.C. Cir. 2002) .......................................................................13
Firestone v. Firestone,
76 F.3d 1205 (D.C. Cir. 1996) ................................................................ 14, 16
iii
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Foman v. Davis,
371 U.S. 178 (1962).......................................................................................14
iv
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Statutes
v
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Rules
Other Authorities
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The Appellees in this case are At Pizza Limited; Bhasker Dhir; and
Rupert Lyle.
3. September 24, 2018 Memorandum Opinion and Order (ECF Docket No.
38);
vii
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JURISDICTIONAL STATEMENT
action against Appellees in the U.S. District Court for the District of Columbia for
(1) U.S. copyright infringement, (2) passing off under U.K. common law, (3)
trademark infringement under the Lanham Act, (4) unfair competition under the
Lanham Act, and (5) trespass. The District Court had subject-matter (federal
§§ 1332(a), 1338(a), and 1367(a) for &pizza’s Copyright Act and Lanham Act
claims and supplemental jurisdiction for its U.K. Common Law Passing Off and
state-law trespass claims arising from the same common nucleus of operative facts.
This Court has jurisdiction to hear this appeal under 28 U.S.C. § 1291
because the appeal arises from a final order dismissing all of &pizza’s claims
without leave to amend (October 23, 2018 Order re Dismissal – Dkt. No. 45 (“This
is a final, appealable order.”); October 3, 2018 Order – Dkt. No. 45; September 24,
2018 Memorandum Opinion and Order – Dkt. No. 38); and July 26, 2018 Order –
Dkt. No. 36). On June 24, 2019, the Court ordered the following briefing schedule
1
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leave to amend;
2. Whether the Court erred in dismissing the First Cause of Action for
3. Whether the Court erred in dismissing the Third and Fourth Causes of
4. Whether the Court erred in dismissing the Fifth Cause of Action for
Trespass by concluding it failed based on consent and scope of consent and the
5. Whether the Court erred in partially granting and denying (Dkt. No.
36) Appellant’s Motion to Strike or Disregard, or, in the alternative, Motion for
Leave to File Surreply by allowing new material, argument, case law and issues
Action for UK Passing Off if the dismissal of one or more of the federal claims is
reversed.
2
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pertinent statutes upon which this appeal turns as to their validity or correct
significant positive media coverage and recently dubbed “the next generation of
pizza” (among other accolades). Dkt. No. 1, Complaint ¶¶ 11, 23. &pizza owns
three U.S. trademark registrations for its &pizza marks in restaurant services. Id.
& Exs. 1-8. It has restaurants in Washington D.C. and throughout the East Coast.
Id. This anti-establishment establishment is renowned for its creative pies and
craft beverages, localized shop design, and its strength, unity and vibe. Id. ¶ 12.
resources towards and is actively pursuing expansion into the U.K., including
engaging in discussions with potential business partners there and applying for
trademarks. Complaint ¶¶ 12, 50. Even without an open restaurant in the U.K.,
&pizza has developed significant goodwill in the U.K. for its &pizza restaurants,
3
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including its “&pizza” mark and other features of its business identity. Id. ¶¶ 13-
copy of &pizza in the U.K. Complaint ¶¶ 17, 23-24. Defendants apparently knew
that &pizza was in the process of expanding its &pizza restaurant chain to the
U.K., as they were careful to never approach &pizza to advise it of their plans. Id.
¶ 17. But to perfect this scheme, Defendants needed to come to the U.S. to steal
&pizza locations in the District of Columbia. Id. ¶ 17. Realizing the uniqueness of
&pizza’s restaurant chain, Defendant Lyle had Defendant Dhir also take numerous
trips to visit the D.C. locations of &pizza. Id. Without authorization, they took
accessed all parts of the restaurants to observe their design, and returned with this
1
Importantly, the individual defendants Lyle and Dhir were the primary actors and
directly engaged in the conduct discussed below. See, e.g., Complaint ¶¶ 8-9, 17-
18. Any actions of @pizza not taken by these two individuals were directed by
them as its owners, officers and managers. Id. ¶ 10.
4
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copyrighted information to the U.K. Id. ¶¶ 24-25, 74. They later returned to
Plaintiff’s D.C. &pizza premises with the general manager they had hired to run
their copycat store in the U.K., conducting secret, on-the-job training in order to
ensure the most accurate copying of &pizza’s brand, look and feel, and to study
what they themselves referred to as their “competitor.” Id. ¶ 74. The general
manager and others that Lyle and Dhir sent to train at &pizza’s restaurants were
plan, using copyrighted pictures of Plaintiff’s D.C. &pizza premises, passing off
their restaurant plan as their own, knowing they had used copyrighted images of
Complaint ¶¶ 81, 85. Defendants did not have Plaintiff’s permission or consent to:
(1) take unauthorized pictures, (2) steal &pizza’s intellectual property, (3) train
unfair competition, and (5) take &pizza information to facilitate passing off their
5
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&pizza’s D.C. restaurants, including three pictures that were taken for &pizza by
its advertising agencies and owned by &pizza (in addition to its ownership of the
copyrighted works [occurred] in the United States.” Id. ¶ 36. The downloading
and server locations were both alleged to have occurred “in the United States,”
including U.S. servers in New Jersey, Virginia, California and Arizona. Id. ¶ 39.
company &pizza (Plaintiff’s name), but then switched to the very similar @pizza
(its current name). MTD Oppo. at 10, 11, 32 (citing Wagner Decl. Ex. 1 ¶ 3-4,
2
After the District Court issued its Order, the U.S. Supreme Court determined the
issue of whether copyright registrations are required or if copyright applications
are sufficient before suing for copyright infringement. See Fourth Estate Pub.
Ben. Corp. v. Wall-Street.com, LLC, 139 S. Ct. 881, 888 (2019) (requiring
copyright registrations). Here, the U.S. Copyright Office has issued &pizza’s
copyright registrations based on its pending U.S. Copyright applications (see U.S.
Copyright Registration Nos. VA 2-098-575, VA 2-098-587, VA 2-098-605, VA 2-
127-496, VA 2-127-495).
6
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elements comprising these works are original. Id. ¶ 35. In fact, &pizza was so
creative in its interior designs that it won Restaurant Development + Design’s 2016
@pizza cease its copycat efforts, Defendants refused. Indeed, they doubled down.
Complaint ¶¶ 30-31. They were told that Lyle and Dhir intended to take still more
trips to &pizza’s D.C. restaurants to observe its design, operation and marketing.
Id. ¶ 32.
admission, they used the pictures downloaded in the U.S. from U.S. servers and
partners. Complaint ¶¶ 26, 27, 39; Dhir Decl. ¶¶ 5-6; Lyle Decl. ¶ 11. The
marketing materials passed off the critical design elements of the &pizza
boxes and (2) a picture of a woman with an “&” tattoo seen in an image hung
about the restaurant was designed to maximize its position as an &pizza copycat,
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including: (1) the copycat buildout of the interior, (2) widespread copying of
&pizza’s other brand identifiers, and (3) selection of a foreign location likely to
First, Defendants’ U.S. copying and meticulous study of &pizza paid off
when the information and pictures acquired from the U.S. were used to create a
and sending of @pizza staff to D.C. for secret on-site training were some of the
“acts of unfair competition in the U.S. that enabled this cloning.” Id. ¶¶ 72, 74.
Defendants’ U.S. reconnaissance paid off with a built-out clone restaurant with
&pizza’s restaurants. Id. ¶ 42. Thus, Defendants successfully captured the look
Second, Defendants also stole the brand identity of &pizza. They used their
&pizza. Complaint ¶ 53. For example, Defendants used the confusingly similar
“@pizza” mark, the pizza selections (right down to every last nuanced detail), the
advertised “core values,” the non-functional elongated oval shape of the pizzas, the
non-functional elongated rectangular pizza to-go box, and even the name coined
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for its staff. Id. ¶¶ 19-20, 53. As a result, Defendants created an unauthorized
Third, the location itself was deliberately chosen to trade off &pizza’s
&pizza (1) already had goodwill in its name and business identity; (2) high
population of U.S. students and tourists; and (3) was actively pursuing expansion.
Complaint ¶¶ 50-51, 65. Defendants selected the location most likely to attract
substantial base of their customers would be U.S. consumers already familiar with
harm to &pizza’s U.S.-based restaurant chain, including its business and goodwill.
Complaint ¶¶ 54, 58, 64. Defendants so meticulously copied the trademark and
U.S. business and U.S. commerce. Id. ¶ 66(e). Consumers familiar with &pizza’s
restaurant chain (in large measure thought leaders from the U.S. abroad) are likely
55, 65(b). In fact, some have actually been confused. Id. ¶ 22.
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And for those consumers currently unfamiliar with &pizza, when &pizza
does open its expansion restaurants in the U.K. it may be viewed by those
consumers as the junior or infringing user of @pizza’s name and identity, further
the infringement is to a U.S. company in the U.S. Id. ¶ 66(d). This harm was fully
foreseeable and Defendants were forewarned months before they opened their first
E. Procedural Posture
January 12, 2018, Defendants filed their Motion to Dismiss, which &pizza
opposed on January 26, 2018. Dkt. Nos. 18, 23. Defendants’ reply in support of
their motion to dismiss (Dkt. No. 26) contained new material, which &pizza asked
Dkt. No. 30. The District Court’s July 2018 order refused to grant &pizza the
opportunity to file a sur-reply to each new topic (&pizza was given the opportunity
No. 36. This error is &pizza’s fifth issue submitted for review. The District Court
granted Defendants’ Motion to Dismiss on September 24, 2018, ruling that &pizza
failed to state a claim on which relief can be granted and not granting &pizza leave
10
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to amend its Complaint. Dkt. No. 38 (“MTD Order”). The MTD Order provides
the basis for &pizza’s first through fourth issues submitted for review.
supplemental jurisdiction over &pizza’s U.K. passing off claim, which is the
subject of &pizza’s sixth and final appealable issue. Dkt. No. 41 at 4. &pizza’s
case was dismissed on October 23, 2018, without leave to amend. Dkt. No. 45.
The failure to grant leave to amend is the basis for the fifth issue submitted for
review.
SUMMARY OF ARGUMENT
without leave to amend and in the absence of any apparent or declared reason.
prior amendments to the Complaint. Had leave been granted, &pizza could have
scope of the Copyright Act and the Lanham Act to the surreptitious conduct of
foreign Defendants who trespassed onto U.S. property to steal &pizza’s intellectual
property rights may have been bolstered in certain areas where the District Court
itself invited amendment. Instead, the District Court precluded any such
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dismiss.
copyright infringement and Lanham Act claims, the Complaint alleged domestic
acts of infringement and harm to a U.S. business. Here, the infringing acts where
U.S. economic actors, and alleged to cause harm in the U.S. Such wrongful
The District Court further erred in failing to grant &pizza the opportunity to
of their motion to dismiss (&pizza was given the opportunity to file a sur-reply on
prejudice to &pizza upon the final ruling. Lastly, because &pizza’s causes of
action based on the original jurisdiction of the District Court were properly alleged,
declining to exercise supplemental jurisdiction over the U.K. passing off claim was
also error.
If the Court upholds this ruling, the policy implication is that any competitor
from a foreign jurisdiction will have leeway to steal U.S. intellectual property
rights of U.S. citizens on U.S. soil, take that property back to their home countries,
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and reproduce that intellectual property without any consequences. The piracy will
support a free-for-all regime, whereby U.S. citizens will be required to chase down
looting individuals and businesses across the globe despite the direct impact on
STANDARD OF REVIEW
dismiss under Rule 12(b)(6). Kim v. United States, 632 F.3d 713, 715, (D.C. Cir.
2011). “A Rule 12(b)(6) motion to dismiss tests the legal sufficiency of a plaintiff’s
complaint; it does not require a court to ‘assess the truth of what is asserted or
complaint.’” Herron v. Fannie Mae, 861 F.3d 160, 173 (D.C. Cir. 2017) (quoting
Browning v. Clinton, 292 F.3d 235, 242 (D.C. Cir. 2002)). “In evaluating a Rule
12(b)(6) motion, the Court must construe the complaint ‘in favor of the plaintiff,
who must be granted the benefit of all inferences that can be derived from the facts
alleged.’” Hettinga v. United States, 677 F.3d 471, 476 (D.C. Cir. 2012) (quoting
Schuler v. United States, 617 F.2d 605, 608 (D.C. Cir. 1979)).
consider only the facts alleged in the complaint, any documents either attached to
or incorporated in the complaint and matters of which [the court] may take judicial
notice.” Hurd v. District of Columbia, 864 F.3d 671, 678 (D.C. Cir. 2017)
13
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(alteration in original) (quoting EEOC v. St. Francis Xavier Parochial Sch., 117
ARGUMENT
“Leave to amend a complaint under Rule 15(a) ‘shall be freely given when
1208 (D.C. Cir. 1996) (citing Foman v. Davis, 371 U.S. 178, 182 (1962)).
Refusing leave to amend “[i]n the absence of any apparent or declared reason —
such as undue delay, bad faith or dilatory motive on the part of the movant,
of amendment, etc….is merely abuse of that discretion and inconsistent with the
Here, the District Court erred in refusing to grant &pizza leave to amend—
without any justification as to why &pizza would not be able to cure deficiencies
in its Complaint—while at the same time suggesting in its order that amendment
was quite feasible. For example, the District Court apparently did not credit
29. On leave to amend, &pizza could have readily plead in good faith further
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possible, of course, that one of the Defendants may have downloaded the images
“uploading” in the U.S., but found that &pizza “has not alleged” such uploading.
MTD Order at 26. &pizza was not given a chance to amend to fit within the
district court’s articulated standard. Additionally, the District Court noted that
making a similar work in another country means a defendant “might well be liable
under” that country’s copyright law, but it did not grant leave to plead copyright
The District Court made several further suggestions as to how &pizza could
amend its Complaint but then denied &pizza the opportunity to do so. See, e.g.,
MTD Order at 32 & 35 n.8 (“there is no allegation that Defendants have made any
purchases of supplies or sales of pizza in the United States, or even that their
products or advertisements have entered the United States through the stream of
(noting particular allegations that were not specific or “concrete” enough to get
15
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plausibility” and needs “factual content to support it,” “for example, that
remained after being asked to leave”); MTD Order at 37 (consent to enter property
In short, the District Court did not justify its unusual refusal to grant
&pizza’s leave to amend its Complaint. That refusal was an abuse of discretion
particularly since the District Court identified ways in which &pizza could have
pled its claims sufficiently. Amendment therefore was not futile, and denying
Defendants’ motion (MTD Oppo. at 36), the District Court denied such relief
without any explanation. “[A] proper exercise of discretion requires that the
district court provide reasons.” Firestone, 76 F.3d at 1209 (reversing the district
court’s denial of leave to amend for failure to provide reasons in denying leave to
amend, and remanding with instructions to allow plaintiffs to file their amended
complaint); Parker v. Baltimore & Ohio R.R., 652 F.2d 1012, 1018, 1020 (D.C.
16
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Cir. 1981) (reversing district court’s denial of leave to amend, and remanding to
the district court either to grant plaintiff leave to amend or provide sufficient
reasons for its denial). That the District Court did not even address &pizza’s
reverse. Id.
II. The Court Erred in Dismissing the First Cause of Action for U.S.
Copyright Infringement By Concluding That No Act Plausibly
Constituted Infringement Within the United States.
The District Court erred in dismissing the claim for U.S. Copyright
for copyright infringement, the plaintiff must allege: “(1) ownership of a valid
copyright, and (2) copying of constituent elements of the work that are original.’”
Stenograph L.L.C. v. Bossard Assocs., 144 F.3d 96, 99 (D.C. Cir. 1998) (citing
Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 361 (1991)).
Additionally, where the conduct of foreign parties arguable may have occurred
to fall within the bundle of rights afforded under the U.S. Copyright Act. MTD
Order at 28-29.
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in the Complaint, all of which were ignored by the District Court. The Complaint
was only opened successfully in Scotland, but alleged that was accomplished (1)
from downloading &pizza’s copyrighted pictures from U.S. servers, and (2) from
Synopsys, Inc. v. Ubiquiti Networks, Inc., No. 17-cv-00561-WHO, 2017 U.S. Dist.
LEXIS 130070, *78-79 (N.D. Cal. Aug. 15, 2017) (copyright claim overcame
allegations that the defendants accessed “software stored on servers in the United
3
“Factual allegations in briefs or memoranda of law may not be considered when
deciding a Rule 12(b)(6) motion, particularly when the facts they contain
contradict those alleged in the complaint.” Jefferies v. District of Columbia, 917 F.
Supp. 2d 10, 24 (D.D.C. 2013).
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280-PHX-LOA, 2011 U.S. Dist. LEXIS 153615, **14-16 (D. Ariz. Dec. 27, 2011)
Chitika, Inc., 826 F. Supp. 2d 398, 403 (D. Mass. 2011) (even where no act in U.S.
issues involving the structure of the Internet and the locus of the infringing activity
remain (Where did the copying take place? Where are the third-party websites and
Despite these allegations, the District Court still incorrectly found that
&pizza had not alleged a domestic act of infringement. MTD Order at 30. The
impermissible attempt to try the facts and argue the merits at the pleadings stage
insufficient given the undisputed fact that Defendants (and presumably, their
sufficiently pleading infringement in the United States under either the “complete-
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It applies only where infringement was “entirely abroad” and “all the copying or
infringement occurred outside the United States.” Tire Eng’g & Distribution. Ltd.
Liab. Co. v. Shandong Linglong Rubber Co., 682 F.3d 292, 307-308 (4th Cir.
v. Vapiano SE, 798 F. Supp. 2d 102, 123 (D.D.C. Jul. 20, 2011) (“there is no cause
of action under the Copyright Act for acts of infringement that occur completely
outside the United States”). Even under this more restrictive complete-act theory
of extraterritoriality, there was legal support (both case law and policy-based) for
treating a download from a U.S. website as occurring at the place of the U.S. server
where the copying took place. &pizza’s opposition to the motion to dismiss cited a
number of authorities supporting the legal proposition that a download from a U.S.
Inc., No. 17-cv-00561-WHO, 2017 U.S. Dist. LEXIS 130070, *78-79 (N.D. Cal.
Aug. 15, 2017)); Liberty Media Holdings, LLC v. Vinigay.com, No. CV-11-280-
PHX-LOA, 2011 U.S. Dist. LEXIS 153615, **14-16 (D. Az. Dec. 21, 2001);
Elsevier Ltd. v. Chitika, Inc., 826 F. Supp. 2d 398, 403 (D. Mass. 2011). The three
20
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exemplative authorities cited by &pizza all expressly identified the server location
in the U.S. as the link (or at least a link) to the U.S. that supported application of
U.S. copyright law to copyright claims. Server location was obviously relevant to
these courts’ decision to apply U.S. copyright law, or else the location of the server
would have warranted no mention from those courts, much less reliance on the
infringement further supports this approach. A contrary rule would mean that an
illegal video download company could purchase legitimate copies of all U.S.
movies, and distribute them to the entire world (other than the U.S.) from a U.S.
server without any liability under U.S. copyright law, with the U.S. movie
company powerless to pursue complete relief unless it did so under the copyright
laws of the 194 countries in the world other than the U.S. And it makes sense to
hold downloading parties that reaches into the U.S. through U.S. servers to
laws.
Although Appellees and the Court disagreed that a download from a U.S.
predicate acts. The law remains unsettled in this Circuit – and is ripe for appellate
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the location of the receiving computer. Highlighting this unsettled law, the portion
of the Court’s Order for its conclusion on this point cited a single “cf.” (i.e., not
California. Id. (citing MTD Order at 27 citing as cf. Columbia Pictures v. Fung,
No. CV 06-5578 SVW (JCx), 2009 U.S. Dist. LEXIS 122661, *8 (C.D. Cal. Dec.
21, 2009)).
Moreover, the cited Columbia decision could be read as holding that either
the location of the sender or recipient in the U.S. is sufficient to apply U.S.
copyright law. Id. at **29-30. And Columbia involved file transfers “directly
from the computers of other users and not directly from the servers,” meaning it
did not consider or resolve the issue of whether a download – when occurring
through a U.S. server – should be treated as occurring at the situs of the server, the
application of U.S. copyright law. That Columbia found the location of the
infringement scheme in that case, does not definitively foreclose a court from
treating the server as the location under appropriate circumstances. The Court
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applied the unpublished Columbia decision as the sole theory to reject &pizza’s
server situs theory in error, which does not warrant dismissal of &pizza’s U.S.
A number of courts find the types of acts here to be actionable. The District
Court acknowledged cases applying the U.S. Copyright Act where “even part of an
act of infringement” was in the U.S. See MTD Order at 29 (emphasis in original).
The Court’s Ninth Circuit citation was further supported by &pizza’s citation to
authority applying this test from the Fourth Circuit, other circuits and even in this
Circuit. MTD Oppo. at 21. &pizza’s brief also presented case law expressly
identifying U.S. server location and access to the same, as sufficient to justify a
U.S. Copyright infringement claim. See also MTD Oppo. at n.7. On this record, at
the time of briefing, there was no requirement that an entire infringing act occur
based on (1) downloading &pizza’s copyrighted pictures from U.S. servers, and (2)
taking pictures of &pizza’s restaurants in the U.S. Complaint ¶ 43. Both acts were
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which infringes &pizza’s copyrights (under the laws of at least one country, either
the U.S. or U.K.). While the ultimate merit of these facts were rejected by the
District Court, such allegations on the record demonstrate that &pizza adequately
challenge. See, e.g., Litecubes, LLC v. N. Light Prods., Inc., 523 F.3d 1353, 1363
different than any other element of a claim which must be established before relief
The Court’s MTD Order placed foundational reliance on the D.C. Circuit’s
extraterritoriality. See MTD Order at 22, 24 and 29 applying Spanski Entes., Inc.
v. Telewizja Polska, S.A., 883 F.3d 904 (D.C. Cir. 2018).4/ The Spanski decision
was issued a year after the Complaint was filed and well after the MTD Opposition
was filed, not allowing either party to address that case. See MTD Order at 22 n.7.
The District Court held that a domestic act of infringement requires the
performance to occur in the United States, focusing only on the fact that the
4/
MTD Order at 22 (“the D.C. Circuit recently addressed the territorial limits of the
Copyright Act in Spanski), 24 (citing Spanski); 29 (the “principle” of the more
liberal part-of-an-act standard for extraterritoriality “typically comes into play in
case involving the exclusive right to distribute, display or perform copyrighted
works”) (citing Spanski).
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in the United States.” MTD Order at 22. However, the MTD Order overlooks the
Spanski court’s ultimate policy holding applicable to this matter -- that the
focus occurred in the United States,” such that it involves a permissible domestic
Spanski, 883 F.3d at 913. Where, as here, there is substantial infringing conduct
that occurred within the United States – illicit downloading of U.S. copyrighted
Id. Thus, the District Court’s reliance on Spanski to the facts of this case was an
error of law.
&pizza recognizes that mere visits to &pizza’s U.S. restaurants does not
claim for relief under the Copyright Act alleged a scheme that began in the U.S.
occurred in the U.S.” so as to apply the Copyright Act under the “not
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Had such key components been held sufficient to fit the “not entirely
abroad” test, then the construction of a restaurant with copycat architecture and
Architects, Inc., 856 F. Supp. 2d 773, 777 (D.S.C. 2012) (“[I]f in fact a photograph
could be pursued under U.S. copyright law and is supported by meaningful case
III. The Court Erred in Dismissing the Third and Fourth Causes of Action
under the Lanham Act by Concluding the Complaint Failed to Justify
Extraterritorial Application of the Lanham Act.
The Lanham Act reaches extraterritorial conduct that has at least “some
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of extraterritoriality. Wells Fargo & Co. v. Wells Fargo Express Co., 556 F.2d
406, 428 (9th Cir. 1977) (stating test for foreign defendants). Although the D.C.
Act, the District Court dismissed &pizza’s Lanham Act claim on grounds that even
under the more generous approach, &pizza failed to allege facts suggesting an
effect on U.S. commerce “under any test.” MTD Order at 32-33. However, the
Complaint more than plausibly meets the Lanham Act’s minimum thresholds of
law, which support a sufficient effect on either U.S. interstate or foreign commerce
to justify the Lanham Act’s extraterritorial application. Complaint ¶¶ 65, 66, 72,
74, 75.
on the merits and thus “must be evaluated under Rule 12(b)(6)” for purposes of
Hallatt, 835 F.3d 960, 968 (9th Cir. 2016)). Thus, the question is solely one of
The District Court incorrectly focused only on the issue that “there is no
allegation that Defendants have made any purchase of supplies or sales of pizza in
the United States, or even that their products or advertisements have entered the
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United States through the stream of commerce.” MTD Order at 32. The District
Court further suggested that had &pizza alleged that its potential business partner
was located in the United States and sustained harm from loss of business to
@pizza in the United States, then it could have overcome Defendants’ Rule
Scotland, but explained over a half-dozen factual considerations that supported the
plausibility of the conclusion that (at the least) the “some effect” test for
extraterritoriality was met. MTD Oppo. 23-24. This included the Complaint’s
U.S. activity to the infringement scheme, (2) effect on a U.S. company, (3)
indication of an explicit purpose to harm a U.S. company, (4) the advance warning
and foreseeability of an effect on such U.S. company, (5) permanent nature of the
infringing use, (6) 25 million euros annually spent by U.S. tourists dining in
Edinburgh, (7) substantial presence of U.S. students, and (8) actual instances of
5
The District Court noted that &pizza could have pleaded (1) harm arising from
this incident, (2) that it wanted to do business with this unidentified business
partner, (3) that it lost business to @pizza as a result of this episode or any other,
(4) or that this potential business partner was located in the United States. MTD
Order at 33-34. The Court did not permit &pizza an opportunity to amend its
Complaint with these suggested allegations.
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investor of &pizza. Id. (citing Complaint ¶¶ 22, 65, 66, 72, 74, 75). All of these
plausible inferences shows the required “some effect” on U.S. foreign commerce to
sustain a claim for relief based on the existing facts known prior to any discovery
or the typical expert surveys taken in a trademark case. Id.; Wells Fargo & Co.,
In addition, while the Court and Defendants focused on there being a single
Edinburgh location was merely the “first location” in Defendants’ “scheme to open
a copycat restaurant chain” – the Lanham Act exists just for the purpose of
posited case law. MTD Oppo. at 24. &pizza also explained how a likelihood of
reputation, analogizing the present case to at least two cases finding such an effect
6
Citing Warnaco Inc. v. VF Corp., 844 F. Supp. 940, 951 (S.D.N.Y. 1994) and
Kroma Makeup EU, Ltd. v. Boldface Licensing + Branding, INc., No. 6:14-cv-
1551-Orl-40GJK, 2015 U.S. Dist. LEXIS 49534, *25-26 (M.D. Fla. Apr. 15,
2015).
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&pizza also cited MGM Resorts and its online casino in the MTD
activity that has “some effect on American foreign commerce,” not just commerce
within U.S. borders as the MTD Order seemed to require). See Trader Joe’s 835
F.3d at 969 (alteration added); MTD Order at 35 n.8 (discussing MGM Resorts v.
jurisdiction is present where such intentional violations of the Lanham Act are
128397, *9-14 (D. Nev. Jul. 8, 2015) (explaining how each factor militated toward
The Court ultimately rejected these detailed allegations as rising to the level
substantial leap and inaccurate application of Lanham Act policy and guiding
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IV. The Court Erred in Dismissing the Fifth Cause of Action for Trespass
by Concluding it Failed Based on Consent and Scope Of Consent and
the Inapplicability of Fraud or Mistake.
the issue,” the District Court found that &pizza could not plausibly allege the
with factual support multiple times in the Complaint – was not plausible and the
District Court dismissed the claim as a matter of law without leave to amend.
MTD Order at 35. Ultimately, the Court held that “if a restaurant has opened itself
to the public, then its consent to enter reasonably extends to competitors as well,
even if they harbor an ulterior motive of studying the restaurant for their own
gain.” MTD Order at 41. Nevertheless, this broad holding does not comport with
limitations on the claim of trespass where: (1) the pleadings plausibly and
repeatedly allege unauthorized entry, (2) the wrongful actor exceeds the scope of
First, the record reflects that &pizza alleged unauthorized entry by Appellees
on numerous occasions whereby further concrete facts were not necessary for
purpose of interfering with &pizza’s right to control the properties and exclude
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others” and did so for competitive purposes. Complaint ¶¶ 81-83. Defendants also
took their undisclosed agents onto these &pizza premises to surreptitiously provide
Id. ¶ 84. Unauthorized entry was thus repeatedly alleged. Id. ¶¶ 81-85.
did indeed misrepresent their intents, that misrepresentation did not concern the
nature of the invasion of plaintiff’s property interest and could not have vitiated
IMAPizza’s consent for them to enter.” MTD Order at 39. This reasoning
&pizza’s restaurant: to enter the restaurant for the purpose of stealing &pizza’s
intellectual property. Indeed, a competitor’s use of access for tortious acts pleads a
trespass claim, even where consent is pled. Democracy Partners v. Project Veritas
Action Fund, 285 F. Supp. 3d 109, 118-19 (D.D.C. 2018); Counsel on American-
Islamic Rels. Action Network v. Gaubatz (“CAIR”), 793 F. Supp. 2d 311, 345
(D.D.C. 2011).
extinguishes that consent such that any access is unauthorized. “Consent may be
(Second) of Torts § 892B(2). &pizza stated a viable clam for trespass by alleging
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property. Complaint ¶¶ 81-83. This allegation alone satisfies the trespass element
restaurant.
dismiss a trespass claim based on consent. Id. The Court rejected the argument,
business firm’s premises posing as a customer but in fact hoping to steal the firm’s
trade secrets.” Id. (emphasis added). Thus, because this sort of conduct “is
precisely what Plaintiffs [] alleged,” the Court explained the “consent argument is
premature” and “whether [the] argument will win out is a question that must await
discovery.” Id. (denying motion to dismiss trespass claim). Notably, the CAIR
Court did not distinguish or set any limitation between publicly accessible places
and private ones, even expressing “doubt” that “a plaintiff must plead the property
at issue was not open to the public in order to state a claim for trespass. Id. at 344.
engage in tortious and wrongful competitive conduct and thus consent could not
have barred &pizza’s trespass claim as a matter of law. Id. at 355 n.7 (“liability for
other tortious acts linked to an entry vitiates consent for that entry”).
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noted above, the Complaint repeatedly alleges entry was unauthorized and without
consent state a claim for trespass. Democracy Partners, 285 F. Supp. 3d at 119
entry).
that their actions were within the scope of access afforded customers – “taking
“competitors” and were not authorized to enter any of &pizza’s locations for these
“exceeded the scope of any consent” (if any) as pled. Democracy Partners, 285 F.
Supp. 3d at 119 (allegation of exceeded scope of consent “is also sufficient to state
a claim for trespass”). The District Court side-stepped this second, independent
basis for a valid trespass claim, which obviates any “publicly accessible” defense
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passing off the restaurant. See Complaint ¶ 82. This interference with &pizza’s
establishments is more than enough to plausibly state a claim for trespass under
new arguments first raised in a reply brief.” Aleutian Pribilof Islands Ass’n, Inc. v.
Academy of Sciences, 974 F.2d 196, 297, U.S. App. D.C. 406 (D.C. Cir. 1992)).
Permitting new argument would be “manifestly unfair” and the D.C. District Court
has delayed decisions on issues until the issues can be briefed more fully. Herbert
v. Nat'l Acad. of Scis., 974 F.2d 192, 196 (1992); see Berlin v. Bank of Am., N.A.,
dismissal until the issue could be more fully briefed, even though Plaintiffs were
permitted to file a Sur-Reply.) When new arguments are improperly raised, “the
court will either ignore those arguments in resolving the motion or provide the
a sur-reply.” Flynn v. Veazey Constr. Corp., 310 F. Supp. 2d 186, 189 (D.D.C.
2004).
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arguments and evidence raised in Defendants’ Reply to its Motion to Dismiss and
further by refusing &pizza’s request to fully address these newly raised arguments
new arguments and evidence, the District Court allowed &pizza to file a sur-reply
on three arguments.
detailed in the chart above, the District Court summarily held that “they consist of
matters within the scope of Defendants’ opening brief on the motion to dismiss or
Plaintiff’s opposition.” Dkt. No. 36. The District Court does not state where or
identify how these are not arguments of first impression while at the same time
refusing &pizza the opportunity to brief responses on this new material is error.
The District Court compounded its error in refusing &pizza the opportunity
to amend its Complaint when it found &pizza failed to show the existence of
supplemental jurisdiction for its U.K. passing off claim. Specifically, the District
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remained, thus the District Court could properly exercise supplemental jurisdiction
over the U.K. passing off claim. The District Court further reasoned that the
passing off claim is brought under U.K. law and seeks injunctive relief against a
U.K. entity. Id. at 4. But this results in bad public policy. It allows citizens of the
world to come and infringe U.S. companies’ intellectual property rights while
stripping away U.S. companies’ ability to seek justice for infringement of their
CONCLUSION
For the foregoing reasons, the District Court’s Order granting the
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CERTIFICATE OF COMPLIANCE
This document complies with the Federal Rule of Appellate Procedure 32 et
seq. because, excluding the parts of the document exempted by Federal Rule of
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CERTIFICATE OF SERVICE
I, the undersigned, certify and declare that I am over the age of 18 years,
action.
filing with the Clerk of the Court using the CM/ECF system which will send
(Page 49 of Total)
89276518v.3
1
USCA Case #18-7168 Document #1795989 Filed: 07/05/2019 Page 1 of 5
IMAPIZZA, LLC,
Plaintiff-Appellant,
–v–
Defendants-Appellees.
___________________________
ON APPEAL FROM THE U.S. DISTRICT COURT FOR THE
DISTRICT OF COLUMBIA
Andrew D. Skale
David Barmak
(Application for Admission Pending)
MINTZ LEVIN COHN FERRIS
MINTZ LEVIN COHN FERRIS
GLOVSKY AND POPEO, PC
GLOVSKY AND POPEO, PC
701 Pennsylvania Avenue, NW, Suite 900
3580 Carmel Mountain Road, Suite 300
Washington, DC 20004
San Diego, California 92130
(202) 434-7300
(858) 314-1500
dbarmak@mintz.com
adskale@mintz.com
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portions of the Record to be included in the Deferred Joint Appendix in the above-
captioned matter:
2
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3
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CERTIFICATE OF COMPLIANCE
seq. because, excluding the parts of the document exempted by Federal Rule of
(Page 53 of Total)
1
USCA Case #18-7168 Document #1795989 Filed: 07/05/2019 Page 5 of 5
CERTIFICATE OF SERVICE
I, the undersigned, certify and declare that I am over the age of 18 years,
action.
electronically filing with the Clerk of the Court using the CM/ECF system which
/s/David Barmak
David Barmak
89246271v.1
(Page 54 of Total)
2