throbber
Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 1 of 25
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF PENNSYLVANIA
`
`
`
`:
`:
`:
`:
`:
`
`
`
`
`
`
`
`CIVIL ACTION
`
`NO. 19-1806
`
`
`MEMORANDUM
`
`
` March 31, 2020
`
`v.
`
`LEO PELLEGRINO
`
`
`
`EPIC GAMES, INC.
`
`Padova, J.
`
`
`
`
`
`Plaintiff Leo Pellegrino commenced this action against Defendant Epic Games, Inc.
`
`(“Epic”) asserting that Epic misappropriated his likeness and trademark, i.e., his “Signature
`
`Move.” 1 The Complaint asserts that Epic’s misappropriation violated Pellegrino’s right to
`
`publicity and infringed and diluted his trademark. Epic has filed a Motion to Dismiss the
`
`Complaint in its entirety pursuant to Federal Rule of Civil Procedure 12(b)(6). We held a hearing
`
`on the Motion on March 3, 2020. For the reasons that follow, we grant Epic’s Motion in part and
`
`deny it in part.
`
`I.
`
`BACKGROUND
`
`The Complaint alleges that Leo Pellegrino “is a professional baritone saxophone player
`
`and member of the ‘brass house’ group ‘Too Many Zooz.’” (Compl. ¶ 2.) Using his unique
`
`anatomy—specifically his externally rotatable feet—Pellegrino was able to create the Signature
`
`Move, a series of movements that express his own unique dancing style. (Id. ¶ 17.) Pellegrino
`
`incorporates and “executes the Signature Move [in] every one of his musical performances.” (Id.
`
`¶ 24.) By executing the Signature Move in concert and festival performances in front of hundreds
`
`
`1 Pellegrino’s Signature Move is a series of dance moves executed while holding a
`saxophone. Pellegrino attaches a video clip of his Signature Move as Exhibit 1 to the Complaint.
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 2 of 25
`
`of thousands of people and in online videos with millions of views, his Signature Move has grown
`
`in popularity and has become inextricably linked to his identity. (Id. ¶¶ 3, 24.)
`
`
`
`Epic Games, Inc. is a video game developer who created the game “Fortnite Battle Royale.”
`
`(Id. ¶¶ 10, 28.) Fortnite was released in September 2017 and since then has become one of the
`
`most popular video games ever. (Id. ¶ 7.) In fact, because of Fortnite’s success, Epic’s value has
`
`grown from approximately $825 million to approximately $15 billion. (Id. ¶ 38.) Fortnite is a
`
`battle royale video game, a “genre that blends the survival, exploration and scavenging elements
`
`of a survival game with last-man-standing gameplay.” (Id. ¶ 28.) In this format, “up to 100
`
`players, alone, in pairs or in groups, compete to be the last player or group alive” by using weapons
`
`and other forms of violence to eliminate other players. (Id. ¶ 29.)
`
`Epic does not charge players money to purchase Fortnite; instead, players can download
`
`and play Fortnite for free. (Id. ¶ 30.) Fortnite generates revenue using its in-game electronic
`
`storefront where it sells virtual content that players can use while playing Fortnite. (Id.) This
`
`buyable virtual content includes customizations for the Fortnite digital avatars like “‘emotes’” that
`
`enable the Fortnite avatars to perform dances or movements. (Id.)
`
`Epic creates these “emotes by copying and coding dances and movements directly from
`
`popular videos, movies, and television shows without consent.” (Id. ¶ 34.) Emotes are popular
`
`among players because emotes allow players to personalize their Fortnite experience. (Id. ¶ 33.)
`
`Emotes have become popular even outside of Fortnite. (Id.) For example, professional athletes
`
`perform celebrations based on Fortnite emotes and other people post social media videos of
`
`themselves executing the emotes. (Id.)
`
`One of these emotes, the “‘Phone It In’” emote, “is identical to Pellegrino’s Signature
`
`Move.” (Id. ¶ 41.) The name “‘Phone It In’” is a reference “to Pellegrino’s appearance in a Google
`
`
`
`2
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 3 of 25
`
`Pixel 2 phone commercial in 2017.” (Id. ¶ 5.) Without Pellegrino’s consent, Epic sells the Phone
`
`It In emote for 800 V-Bucks (Fortnite’s virtual currency), which is worth approximately $8. (Id.
`
`¶¶ 30, 40.) Once a player buys this emote and equips his or her avatar with it, “the player’s avatar
`
`can execute the Signature Move during Fortnite gameplay.” (Id. ¶ 41.) Many Fortnite players
`
`worldwide immediately recognized the Phone It In emote in Fortnite as Pellegrino’s Signature
`
`Move. (Id.) Epic thus uses Pellegrino’s Signature Move embodied in the Phone It In emote to
`
`create the false impression that Pellegrino is endorsing the game. (Id. ¶ 47.) Other players,
`
`however, have the false impression that the Phone It In emote was Epic’s original creation because
`
`Epic does not credit Pellegrino as the Signature Move’s creator and owner. (Id. ¶¶ 41, 47.)
`
`The Complaint asserts eight causes of action under state and federal law. The first cause
`
`of action asserts a claim for unauthorized use of Pellegrino’s name or likeness in violation of 42
`
`Pa. Cons. Stat. Ann. § 8316. (Id. ¶¶ 50-60.) The second cause of action asserts a claim for
`
`misappropriation of publicity under Pennsylvania common law. (Id. ¶¶ 61-71.) The third cause
`
`of action asserts a claim for invasion of privacy by misappropriation of identity under Pennsylvania
`
`common law. (Id. ¶¶ 72-74.) The fourth cause of action asserts a claim for unjust enrichment
`
`under Pennsylvania common law for using Pellegrino’s likeness and trademark. (Id. ¶¶ 75-77.)
`
`The fifth cause of action asserts a claim for unfair competition under Pennsylvania common law
`
`for using Pellegrino’s likeness and trademark. (Id. ¶¶ 78-83.) The sixth cause of action asserts a
`
`claim for trademark infringement under the Lanham Act, 15 U.S.C. § 1125(a). (Id. ¶¶ 84-92.) The
`
`seventh cause of action asserts a claim for trademark infringement under Pennsylvania common
`
`
`
`3
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 4 of 25
`
`law. (Id. ¶¶ 93-100.) The eighth cause of action asserts a claim for trademark dilution under the
`
`Lanham Act, 15 U.S.C. § 1125(c). (Id. ¶¶ 101-108.)2
`
`II.
`
`LEGAL STANDARD
`
`When deciding a motion to dismiss pursuant to Rule 12(b)(6), we “consider only the
`
`complaint, exhibits attached to the complaint, [and] matters of public record, as well as
`
`undisputedly authentic documents if the complainant’s claims are based upon these documents.”
`
`Mayer v. Belichick, 605 F.3d 223, 230 (3d Cir. 2010) (citing Pension Benefit Guar. Corp. v. White
`
`Consol. Indus., Inc., 998 F.2d 1192, 1196 (3d Cir. 1993)). We take the factual allegations of the
`
`complaint as true and “construe the complaint in the light most favorable to the plaintiff.” DelRio-
`
`Mocci v. Connolly Props., Inc., 672 F.3d 241, 245 (3d Cir. 2012) (citing Warren Gen. Hosp. v.
`
`Amgen, Inc., 643 F.3d 77, 84 (3d Cir. 2011)). Legal conclusions, however, receive no deference,
`
`as we are “‘not bound to accept as true a legal conclusion couched as a factual allegation.’” Wood
`
`v. Moss, 572 U.S. 744, 755 n.5 (2014) (quoting Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009)).
`
`A plaintiff’s pleading obligation is to set forth “a short and plain statement of the claim,”
`
`Fed. R. Civ. P. 8(a)(2), which gives the defendant “‘fair notice of what the . . . claim is and the
`
`grounds upon which it rests.’” Bell Atl. Corp. v. Twombly, 550 U.S. 544, 555 (2007) (alteration
`
`in original) (quoting Conley v. Gibson, 355 U.S. 41, 47 (1957)). The complaint must contain
`
`“‘sufficient factual matter to show that the claim is facially plausible,’ thus enabling ‘the court to
`
`draw the reasonable inference that the defendant is liable for [the] misconduct alleged.’” Warren
`
`Gen. Hosp., 643 F.3d at 84 (quoting Fowler v. UPMC Shadyside, 578 F.3d 203, 210 (3d Cir.
`
`2009)). “The plausibility standard is not akin to a ‘probability requirement,’ but it asks for more
`
`
`2 For ease of reference, we will refer to each “cause of action” as a “Count.” For example,
`the first cause of action will be “Count I.”
`
`
`
`4
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 5 of 25
`
`than a sheer possibility that a defendant has acted unlawfully.” Iqbal, 556 U.S. at 678 (citing
`
`Twombly, 550 U.S. at 556). In the end, we will grant a motion to dismiss brought pursuant to
`
`Rule 12(b)(6) if the factual allegations in the complaint are not sufficient “‘to raise a right to relief
`
`above the speculative level.’” W. Run Student Hous. Assocs., LLC v. Huntington Nat’l Bank, 712
`
`F.3d 165, 169 (3d Cir. 2013) (quoting Twombly, 550 U.S. at 555) (add’l citation omitted).
`
`III. DISCUSSION
`
`Epic argues in its Motion that: (1) Counts I-III must be dismissed because the First
`
`Amendment protects Fortnite as an expressive work; (2) Counts IV-V must be dismissed because
`
`the Complaint fails to allege the essential elements of these claims; (3) Count VI is barred by the
`
`Supreme Court of the United States decision in Dastar Corporation. v. Twentieth Century Fox Film
`
`Corporation, 539 U.S. 23 (2003); (4) Count VII must be dismissed because it is preempted by the
`
`Copyright Act; and (5) Count VIII must be dismissed because the Complaint fails to allege an
`
`essential element of the claim.
`
`A. Right of Publicity and Privacy Claims (Counts I-III)
`
`Pellegrino’s right of publicity and privacy claims assert that Epic, by using Pellegrino’s
`
`Signature Move in Fortnite, has misappropriated his likeness. Epic has moved to dismiss these
`
`claims on First Amendment grounds. As a preliminary matter, because Fortnite is a video game,
`
`the First Amendment protects it as an expressive work. See Hart v. Elec. Arts, Inc., 717 F.3d 141,
`
`148 (3d Cir. 2013) (“[V]ideo games are protected as expressive speech under the First
`
`Amendment.” (citing Brown v. Entm’t Merchants Ass’n, 564 U.S. 786, 789 (2011))). Where a
`
`plaintiff alleges that an expressive work violates his right of publicity and privacy, we must
`
`determine whether the First Amendment protections afforded to the expressive work outweigh the
`
`
`
`5
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 6 of 25
`
`plaintiff’s publicity and privacy rights. See id. at 148-49. If they do, we must dismiss the
`
`plaintiff’s publicity and privacy claims. See id. at 149-50.
`
`In Hart v. Electronic Arts, Incorporated, the United States Court of Appeals for the Third
`
`Circuit directed that, in balancing First Amendment protections against publicity and privacy
`
`rights, we are to utilize the Transformative Use Test. Id. at 165 (concluding that “the
`
`Transformative Use Test is the proper analytical framework to apply to cases” balancing the First
`
`Amendment and publicity rights). Under the Transformative Use Test, the First Amendment
`
`protections enjoyed by an expressive work will outweigh a celebrity plaintiff’s interests in his
`
`likeness if “‘the product containing [the] celebrity’s likeness is so transformed that it has become
`
`primarily the defendant’s own expression rather than the celebrity’s likeness.’” Id. at 160
`
`(emphasis omitted) (quoting Comedy III Prods., Inc. v. Gary Saderup, Inc., 21 P.3d 797, 809 (Cal.
`
`2001)).
`
`The Third Circuit applied the Transformative Use Test in Hart under circumstances similar
`
`to those in the case at hand. In Hart, a college football player, Ryan Hart, brought suit against the
`
`video game developer Electronic Arts (“EA”) for violating his right of publicity by using his
`
`likeness in EA’s NCAA Football series of videogames. Id. at 147. At issue was whether EA’s
`
`use of Hart’s likeness on a digital avatar in NCAA Football was sufficiently transformative such
`
`that the First Amendment barred Hart’s right of publicity claim. Id. at 165. To make this
`
`determination, the Third Circuit conducted two central inquiries. It first considered whether Hart’s
`
`“identity” was sufficiently transformed and defined “identity” as encompassing both Hart’s
`
`appearance and his biographical information. Id. at 165-66. The Third Circuit thus analyzed how
`
`closely the digital avatar in NCAA Football embodying Hart’s likeness “resemble[d] the genuine
`
`article.” Id.; see also Mitchell v. Cartoon Network, Inc., Civ. A. No. 15-5668, 2015 WL 12839135,
`
`
`
`6
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 7 of 25
`
`at *5 (D.N.J. Nov. 20, 2015) (comparing appearances of a television character and the plaintiff to
`
`determine whether the defendant’s use of the plaintiff’s likeness was transformative); see also
`
`Kirby v. Sega of Am., Inc., 50 Cal. Rptr. 3d 607, 616 (Cal. Ct. App. 2006) (comparing appearances
`
`of a video game avatar and the plaintiff to determine whether the defendant’s use of the plaintiff’s
`
`likeness was transformative). The court then considered the manner in which Hart’s identity was
`
`“incorporated into and transformed by” the expressive work. Hart, 717 F.3d at 166 (quotation
`
`omitted). Specifically, the Third Circuit looked at “the context within which the digital avatar
`
`exist[ed],” and asked whether the digital avatar that was alleged to possess Hart’s likeness, did in
`
`the game what Hart did in real life. Id.; see also Mitchell, 2015 WL 12839135, at *5 (concluding
`
`that the defendant’s use of the plaintiff’s likeness was sufficiently transformative where the
`
`defendant’s television character did not do “exactly what [the] [p]laintiff [did] in real life”).
`
`In the instant case, Epic argues that its use of Pellegrino’s likeness in Fortnite (allowing
`
`Fortnite avatars to be equipped with the Signature Move a.k.a. the Phone It In emote)3 is so
`
`transformative that the likeness has become primarily Epic’s own expression rather than
`
`Pellegrino’s likeness. Applying the test as articulated in Hart, we observe that the Complaint does
`
`not allege that the Fortnite avatars equipped with the Phone It In emote, i.e., Pellegrino’s likeness,
`
`share Pellegrino’s appearance or biographical information. Indeed, the Complaint contains a
`
`picture of a Fortnite avatar equipped with the Phone It In emote, and the avatar does not bear a
`
`strong resemblance to Pellegrino. (See Compl. ¶ 4 & Ex. 1.) The Complaint also alleges that
`
`Fortnite players can customize their avatars with “new characters” and a variety of emotes
`
`mimicking celebrities other than Pellegrino. (Id. ¶¶ 30, 35.) The Complaint further alleges that
`
`
`3 The Complaint alleges that the “‘Phone It In’ emote is identical to Pellegrino’s Signature
`Move.” (Compl. ¶ 41.)
`
`
`
`7
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 8 of 25
`
`the avatars fight in a battle royale and can execute emotes like Phone It In “while in the Fortnite
`
`Universe,” amidst “us[ing] weapons and violence to eliminate the competition” (id. ¶¶ 4, 29),
`
`whereas Pellegrino is alleged to be a musical performer who executes his Signature Move at
`
`musical performances (see id. ¶¶ 18-24). These allegations establish that the avatars in Fortnite
`
`do not share Pellegrino’s identity nor do what Pellegrino does in real life. We therefore conclude
`
`that Epic’s use of Pellegrino’s likeness is sufficiently transformative under the Transformative Use
`
`Test to provide it with First Amendment protections that are not outweighed by Pellegrino’s
`
`interests in his likeness. Accordingly, we grant Epic’s Motion to Dismiss as to Pellegrino’s right
`
`to publicity and privacy claims asserted in Counts I-III, concluding that the First Amendment bars
`
`these claims.
`
`B. Unjust Enrichment (Count IV)
`
`Pellegrino’s unjust enrichment claim asserts that Epic, by using Pellegrino’s Signature
`
`Move in Fortnite, has been “unjustly enriched to the substantial detriment of Pellegrino.” (Compl.
`
`¶ 76.) Epic has moved to dismiss Pellegrino’s unjust enrichment for failing to state a claim upon
`
`which relief can be granted. To plead a claim for unjust enrichment under Pennsylvania law, “a
`
`[complaint] must allege facts sufficient to establish ‘benefits conferred on defendant by plaintiff,
`
`appreciation of such benefits by defendant, and acceptance and retention of such benefits under
`
`such circumstances that it would be inequitable for defendant to retain the benefit without payment
`
`of value.’” Boring v. Google Inc., 362 F. App’x 273, 281 (3d Cir. 2010) (quoting Lackner v.
`
`Glosser, 892 A.2d 21, 34 (Pa. Super. Ct. 2006)).
`
`Epic argues that the Complaint does not plausibly allege an unjust enrichment claim
`
`because it does not contain allegations of a relationship between the parties that can be construed
`
`as contractual, i.e., that there were benefits conferred on defendant by plaintiff. As Epic contends,
`
`
`
`8
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 9 of 25
`
`to plausibly allege an unjust enrichment claim, the Complaint must allege not just that Epic
`
`received a benefit unjustly, or that a benefit was unjustly conferred on Epic; rather, it must allege
`
`that Pellegrino directly conferred a benefit on Epic. See Gabriel v. Giant Eagle, Inc., 124 F. Supp.
`
`3d 550, 568 (W.D. Pa. 2015) (emphasizing that “‘benefits conferred on defendant’” must be made
`
`“‘by Plaintiff’” (quoting Sovereign Bank v. BJ’s Wholesale Club, Inc., 533 F.3d 162, 180 (3d Cir.
`
`2008))). “Plaintiff's actions are core to the cause of action.” Id. at 569. Indeed, the doctrine of
`
`unjust enrichment “‘does not apply simply because the defendant may have benefitted as a result
`
`of the actions of the Plaintiff.’” Id. (quoting Ne. Fence & Iron Works, Inc. v. Murphy Quigley
`
`Co., 933 A.2d 664, 668-69 (2007)).
`
`Here, the Complaint alleges that Epic “misappropriate[d] Pellegrino’s likeness and the
`
`Signature Move” and that Pellegrino “d[id] not consent to or approve Epic’s use of his likeness
`
`and the Signature Move for the Phone It In emote.” (Compl. ¶¶ 47-48.) Because Pellegrino alleges
`
`that Epic misappropriated his likeness without his permission, Pellegrino cannot have conferred
`
`anything on Epic. Accord Hart v. Elec. Arts, Inc., 740 F. Supp. 2d 658, 670 (D.N.J. 2010)
`
`(“[B]ecause Plaintiff alleges in his . . . Complaint that Defendant did not seek his permission before
`
`using his likeness . . . , Plaintiff clearly did not confer any benefit upon Defendant.”). Indeed,
`
`“[t]he entire thrust of [Pellegrino’s] allegations is that [Epic] took something from [Pellegrino]
`
`without [his] consent, and should be held liable for having done so. There is, therefore, no basis
`
`for applying a quasi-contractual remedy [for unjust enrichment].” Boring v. Google, Inc., 598 F.
`
`Supp. 2d 695, 703 (W.D. Pa. 2009), aff’d in part, rev’d in part on other grounds, 362 F. App’x 273
`
`(3d Cir. 2010). We therefore conclude that the Complaint fails to state a claim for unjust
`
`enrichment upon which relief can be granted. Accordingly, we grant Epic’s Motion to Dismiss as
`
`to Pellegrino’s unjust enrichment claim in Count IV.
`
`
`
`9
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 10 of 25
`
`C. Unfair Competition (Count V)
`
`Pellegrino’s unfair competition claim asserts that Epic, by using Pellegrino’s Signature
`
`Move in Fortnite, has misappropriated his likeness and trademark. Epic has moved to dismiss
`
`Pellegrino’s unfair competition claim for failing to state a claim upon which relief can be granted.
`
`To plead a claim for unfair competition under Pennsylvania common law, “a [complaint] must
`
`allege that [the plaintiff] is in competition with the defendant—that is, that the plaintiff and the
`
`defendant ‘supply similar goods or services.’” Am. Bd. of Internal Med. v. Von Muller, Civ. A.
`
`No. 10-2680, 2011 WL 857337, at *11 (E.D. Pa. Mar. 10, 2011) (quoting Giordano v. Claudio,
`
`714 F. Supp. 2d 508, 523 (E.D. Pa. 2010)), aff’d, 540 F. App’x 103 (3d Cir. 2013).
`
`Epic argues that Pellegrino’s unfair competition claim should be dismissed because the
`
`Complaint does not allege that Epic and Pellegrino are in competition, i.e., that they supply similar
`
`goods or services. Specifically, Epic maintains that the Complaint alleges that Epic is a video
`
`game publisher and that Pellegrino is a saxophone player, and thus, the parties supply different
`
`goods. Indeed, the Complaint alleges that Pellegrino is a saxophone player, a member of “two
`
`brass-based musical groups” and performs music at musical performances. (Compl. ¶¶ 15-24.) In
`
`contrast, the Complaint alleges that Epic develops and sells video games. (Id. ¶¶ 26-28.) Based
`
`on these allegations, it is plain that the parties do not supply similar goods or services. Pellegrino
`
`nevertheless maintains that the parties are competitors “in the field of selling dance performances”
`
`because Epic sells emotes that are “virtual dance performances.” (See Pl.’s Opp. Mem. at 32-33.)
`
`Pellegrino, however, provides no case law, and we are aware of no case law, that would support
`
`such a broad construction of “competitor.” We therefore conclude that the Complaint does not
`
`plausibly allege that Epic and Pellegrino are competitors and thus, fails to state a claim for unfair
`
`
`
`10
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 11 of 25
`
`competition upon which relief can be granted. Accordingly, we grant Epic’s Motion to Dismiss
`
`as to Pellegrino’s unfair competition claim in Count V.
`
`
`
`D. False Designation of Origin and False Endorsement (Count VI)
`
`Pellegrino’s Lanham Act claim asserts that Epic, by using Pellegrino’s Signature Move in
`
`Fortnite, has misappropriated his likeness and trademark. Epic has moved to dismiss Pellegrino’s
`
`Lanham Act claim as barred by the United States Supreme Court’s decision in Dastar Corporation
`
`v. Twentieth Century Fox Film Corporation, 539 U.S. 23 (2003). As a preliminary matter,
`
`Pellegrino appears to bring his Lanham Act claim under two theories. Under the first theory, the
`
`Complaint asserts a Lanham Act claim for false designation of origin. This claim is based on
`
`allegations that Epic committed trademark infringement by using “the Signature Move . . . to create
`
`the false impression that Epic created [it].” (Compl. ¶ 47.) Under the second theory, the Complaint
`
`asserts a Lanham Act claim for false endorsement. This claim is based on allegations that “Epic
`
`used Pellegrino’s . . . Signature Move to generate significant income by . . . creating the false
`
`impression that Pellegrino endorsed Fortnite.” (Id. ¶ 86.)4
`
`1. False Designation of Origin
`
`A facially plausible false designation of origin claim under the Lanham Act requires
`
`allegations of fact that would establish that the defendant’s use of the plaintiff’s mark to identify
`
`its goods or services is “likely to create confusion concerning the origin of the goods or services.”
`
`Flynn v. Health Advocate, Inc., 169 F. App’x 99, 100-01 (3d Cir. 2006) (emphasis added) (citing
`
`Fisons Horticulture, Inc. v. Vigoro Indus., Inc., 30 F.3d 466, 472 (3d Cir. 1994)); see also 15
`
`U.S.C. § 1125(a)(1)(A). The Supreme Court in Dastar analyzed the meaning of the phrase “origin
`
`
`4 Although the Complaint merely identifies Count VI as asserting “Trademark
`Infringement,” the Complaint references the statute prohibiting false designation of origin and
`false endorsement. (See Compl. at 17.)
`
`
`
`11
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 12 of 25
`
`of goods” for purposes of the Lanham Act in order to distinguish between trademark claims that
`
`could be brought under the Lanham Act and claims that were governed exclusively by the
`
`Copyright Act.
`
`In Dastar, Twentieth Century Fox Film (“Fox”) brought a Lanham Act claim against Dastar
`
`Corporation (“Dastar”) claiming that Dastar copied and repackaged a television series for which
`
`Fox held the distribution rights. See 539 U.S. at 25-27. “[T]he gravamen of [Fox’s] claim [was]
`
`that, in marketing and selling [Dastar’s product] as its own product without acknowledging its
`
`nearly wholesale reliance on [Fox’s work], Dastar ha[d] made a ‘false designation of origin . . . ,
`
`which . . . [was] likely to cause confusion . . . as to the origin . . . of his or her goods.’” Id. at 31
`
`(eighth, tenth, and eleventh alterations in original). On the one hand, the Court said, “[i]f ‘origin’
`
`refer[red] only to the manufacturer or producer of the physical ‘goods’ that are made available to
`
`the public . . . , Dastar was the origin,” and thus, Dastar would not be liable under the Lanham Act
`
`because Fox had not brought allegations that the public was confused as to whether Dastar was the
`
`origin of Dastar’s physical goods. Id. On the other hand, if “‘origin’ include[d] the creator of the
`
`underlying work that Dastar copied, then . . . (perhaps Fox) was the origin of Dastar’s product,”
`
`and thus, Dastar could be liable under the Lanham Act because Fox had brought allegations that
`
`the public was confused as to whether Dastar was the origin of the creative content underlying
`
`Dastar’s physical goods. Id. The Dastar Court concluded that the phrase “origin of goods,” for
`
`purposes of the Lanham Act, refers to “the producer of the tangible goods that are offered for sale,
`
`and not to the author of any idea, concept, or communication embodied in those goods,” the latter
`
`of which would fall under copyright law. 539 U.S. at 37. The Court stated that “[t]o hold otherwise
`
`would be akin to finding that [15 U.S.C. § 1125(a)(1)(A)] created a species of perpetual patent and
`
`copyright, which Congress may not do.” Id. (citing Eldred v. Ashcroft, 537 U.S. 186, 208 (2003)).
`
`
`
`12
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 13 of 25
`
`Consequently, Dastar permits a cause of action for false designation of origin under the Lanham
`
`Act where a defendant’s alleged use of a plaintiff’s mark is likely to cause confusion as to “the
`
`producer of the tangible product sold in the marketplace,” but not where the defendant’s alleged
`
`use is likely to cause confusion as to “the person . . . that originated the ideas or communications
`
`that ‘goods’ embody or contain.” 539 U.S. at 31-32.
`
`Epic contends that Dastar bars Pellegrino’s false designation of origin claim because the
`
`Complaint alleges that Epic created the false impression that Epic originated the Signature Move,
`
`which is the creative expression underlying Epic’s Phone It In emote. According to Epic, Dastar
`
`established that this type of allegation is governed by the Copyright Act and thus, cannot be
`
`brought under the Lanham Act. We agree. The Complaint alleges the following: Pellegrino
`
`created the Signature Move, which was a product of “his own unique dancing style and his
`
`signature and original movements” (Compl. ¶ 17); Epic created the Phone It In emote by capturing
`
`and digitally copying Pellegrino executing the Signature Move (id. ¶¶ 51, 63); the Phone It In
`
`emote “embod[ies] the Signature Move” (id. ¶ 41); Epic “sell[s] the infringing Phone It In emote
`
`directly to players” (id. ¶ 46); and Epic misappropriated the Signature Move “to create the false
`
`impression that Epic created [the Signature Move]” (id. ¶ 47).
`
`These allegations establish that the Signature Move is the creative idea underlying Epic’s
`
`tangible good, the Phone It In emote. Furthermore, the Complaint does not plausibly allege that
`
`there was or could be any confusion as to who produced the Phone It In emote. At best, the
`
`Complaint alleges that there is confusion over who originated the Signature Move embodied in the
`
`Phone It In emote because Epic does not “credit[] Pellegrino as the dance’s creator and owner.”
`
`(Id. ¶ 47.) Under Dastar, a claim that concerns the origin of an idea embodied in a tangible good
`
`is governed by copyright law, not the Lanham Act. See Dastar, 539 U.S. at 32 (“[T]he phrase
`
`
`
`13
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 14 of 25
`
`‘origin of goods’ is in our view incapable of connoting the person or entity that originated the ideas
`
`or communications that ‘goods’ embody or contain. Such an extension would not only stretch the
`
`text, but it would be out of accord with the history and purpose of the Lanham Act and inconsistent
`
`with precedent.”); Maule v. Philadelphia Media Holdings, LLC, 710 F. Supp. 2d 511, 518-19 (E.D.
`
`Pa. 2008) (dismissing Lanham Act claim under Dastar because “[w]hile [the defendant] may not
`
`have been the originator of the photographs contained in its newspaper, it was the originator of the
`
`newspaper itself, the actual good being offered for sale to the public”; “the protections of the
`
`Lanham Act do not reach to the underlying expressions embodied in goods”). We therefore
`
`conclude that Dastar bars Pellegrino’s claim for false designation of origin. Accordingly, we grant
`
`Epic’s Motion to Dismiss as to Pellegrino’s Lanham Act claim in Count VI to the extent that it is
`
`based on a false designation of origin theory.
`
`2. False Endorsement
`
`A facially plausible false endorsement claim under the Lanham Act must allege that “‘the
`
`defendant’s use of [the plaintiff’s] mark to identify its goods or services is likely to create
`
`confusion concerning the plaintiff’s sponsorship or approval of those good[s] or services.’” Dille
`
`Family Tr. v. Nowlan Family Tr., 207 F. Supp. 3d 535, 546 (E.D. Pa. 2016) (emphasis added)
`
`(quoting Facenda v. N.F.L. Films, Inc., 542 F.3d 1007, 1014 (3d Cir. 2008)); see also 15 U.S.C. §
`
`1125(a)(1)(A).
`
`Epic argues that Dastar not only bars Pellegrino’s false designation of origin claim, but
`
`also bars his false endorsement claim. However, we do not agree that Dastar necessarily bars
`
`Pellegrino’s false endorsement claim. Dastar specifically considered only a claim for false
`
`designation of origin based on allegations that Dastar’s alleged use of Fox’s mark was likely to
`
`cause confusion as to the origin of the creative expression underlying Dastar’s goods, not a claim
`
`
`
`14
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 15 of 25
`
`for false endorsement. 539 U.S. at 31. Thus, “nothing in the Supreme Court’s opinion in Dastar
`
`bars prospective plaintiffs from bringing a false endorsement . . . claim under the Lanham Act.”
`
`Henley v. Devore, Civ. A. No. 09-481, 2009 WL 10697982, at *7 (C.D. Cal. Jul. 8, 2009).
`
`Moreover, courts have allowed a plaintiff’s false endorsement claim to proceed notwithstanding
`
`Dastar where a complaint alleges that the defendant used the plaintiff’s identity or likeness to
`
`deceive the public into believing that the plaintiff endorsed the defendant’s product. See Beastie
`
`Boys v. Monster Energy Co., 66 F. Supp. 3d 424, 448 (S.D.N.Y. 2014) (noting that courts “have
`
`found viable false endorsement claims where, for example, [a product] bore a celebrity’s name
`
`and likeness, . . . included an image of a celebrity, [or] featured [a] character dressed in a celebrity’s
`
`signature costume” (citing Bruce Lee Enter., LLC v. A.V.E.L.A., Inc., Civ. A. No. 10-2333, 2013
`
`WL 822173, at *19–22 (S.D.N.Y. Mar. 6, 2013); Jackson v. Odenat, 9 F. Supp. 3d 342, 361
`
`(S.D.N.Y. 2014); Burck v. Mars, Inc., 571 F. Supp. 2d 446, 455–56 (S.D.N.Y. 2008))); see also
`
`Lions Gate Entm’t Inc. v. TD Ameritrade Servs. Co., 170 F. Supp. 3d 1249, 1269 (C.D. Cal. 2016)
`
`(noting that Dastar does not necessarily bar a plaintiff’s false endorsement claim where the mark
`
`that the defendant allegedly infringed “is [the plaintiff’s] celebrity identity”).
`
`Here, the Complaint alleges the following: “Pellegrino has depicted his Signature Move .
`
`. . in front of hundreds of thousands of fans” and “[v]ideos . . . in which he displays his Signature
`
`Move have . . . garnered millions of views” (Compl. ¶ 18); thus, “Pellegrino is unanimously
`
`credited with creating the Signature Move and exploiting it as his personal mark to identify himself
`
`and his performances as a saxophone player” (id. ¶ 24); Epic “developed the Phone It In emote to
`
`intentionally mimic Pellegrino performing the Signature Move” (id. ¶ 42); Epic named the emote
`
`“‘Phone It In’” to “allude[] to Pellegrino’s appearance in a Google Pixel 2 phone commercial in
`
`2017” (id. ¶ 5); “[t]he reaction from many players worldwide was immediate recognition of the
`
`
`
`15
`
`

`

`Case 2:19-cv-01806-JP Document 28 Filed 03/31/20 Page 16 of 25
`
`emote as embodying the Signature Move” (id. ¶¶ 41); and, as a result of Epic’s allege

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