Macellari v. Carroll Et Al - Document No. 14
Macellari v. Carroll Et Al - Document No. 14
Macellari v. Carroll Et Al - Document No. 14
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Case 4:05-cv-04161-JPG-CJP Document 14 Filed 10/25/2005 Page 1 of 17
BLUE MACELLARI, )
)
Plaintiff, )
)
vs. ) Case No. 05-4161-JPG
)
RUSTY CARROLL, R2C2, INC., and )
DIGITALSMITH CORPORATION, )
)
Defendants. )
Introduction
Plaintiff has filed an eleven-count complaint against Rusty Carroll and R2C2, Inc.
Plaintiff alleges that her “South Africa Manuscript” had been made available on Defendants’
websites without her consent. Plaintiff alleges that she “owns the copyright to the South Africa
Manuscript” and that she has “filed to register the South Africa Manuscript with the United
The Complaint is deficient in several material respects. It should be dismissed for the
following reasons:
• Plaintiff’s Lanham Act claims (Counts VI-VII) fail because Plaintiff and
Defendants are not competitors.
• The false designation of origin Lanham Act claim (Count VI) fails for the
additional reason that Plaintiff’s precise theory was squarely rejected by the
Supreme Court in Dastar Corp. v. Twentieth Century Fox Film Corp., 539
U.S. 23 (2003).
• Plaintiff’s state law claims are barred under the Communications Decency
Act, 47 U.S.C. § 230.
Dockets.Justia.com
Case 4:05-cv-04161-JPG-CJP Document 14 Filed 10/25/2005 Page 2 of 17
• Plaintiff’s claim under the Illinois Consumer Fraud and Deceptive Business
Practices Act (Count VIII) fails because Plaintiff cannot allege that she is a
consumer of Defendants’ services.
• Plaintiff’s defamation and false light claims (Counts IX-X) fail to allege
essential elements of their cause of action and are preempted by the Copyright
Act.
Discussion
Act states that “no action for infringement of the copyright in any United States work shall be
instituted until preregistration or registration of the copyright claim has been made in accordance
with this title.” 17 U.S.C. § 411(a). With certain limited exceptions not applicable here,
court.” Marshall & Swift v. BS & A Software, 871 F. Supp. 952, 958 (W.D. Mich. 1994). As
such, Counts I-III should be dismissed under Rule 12(b)(1) for lack of jurisdiction.
The cases dismissing actions under these circumstances are legion. See, e.g.,
Murray Hill Publications, Inc. v. ABC Commc’ns, Inc., 264 F.3d 622 (6th Cir. 2001); M.G.B.
Homes, Inc. v. Ameron Homes, Inc., 903 F.2d 1486 (11th Cir. 1990); Country Road Music, Inc.
v. MP3.com, Inc., 279 F. Supp. 2d 325 (S.D.N.Y. 2003); Morgan, Inc. v. White Rock
Distilleries, Inc., 230 F. Supp. 2d 104 (D. Me. 2002); Haan Crafts Corp. v. Craft Masters, Inc.,
Plaintiff’s allegation is that she filed in July 2005 to register her alleged copyright
in the South Africa Manuscript (¶ 30). Thus, she has failed to allege that she has obtained a
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registration, meaning that the case should be dismissed under 17 U.S.C. § 411(a). Jurisdiction
does not exist because Plaintiff does not have a certificate of registration. See Loree Rodkin
Mgmt. Corp. v. Ross-Simons, Inc., 315 F. Supp. 2d 1053, 1054-55 (C.D. Cal. 2004) (no standing
to bring copyright infringement suit while application for copyright registration pending before
Copyright Office).
II. Plaintiff’s Lanham Act Claims Fail Because the Parties Are Not Competitors.
Counts VI and VII allege false designation of origin and false advertising under
§ 43(a) of the Lanham Act. However, § 43(a) of the Lanham Act, 15 U.S.C. § 1125, is designed
to protect against competitive injury. See L.S. Heath & Son, Inc. v. AT&T Info. Sys., Inc.,
9 F.3d 561, 575 (7th Cir. 1993), citing, Waits v. Frito-Lay, Inc., 978 F.2d 1093, 1109 (9th Cir.
1992); see also Conte Bros. Automotive, Inc. v. Quaker State-Slick 50, Inc., 165 F.3d 221 (3d
Cir. 1998). There is no allegation whatsoever that Plaintiff is a competitor or has suffered any
type of competitive injury. Her Lanham Act claims therefore should be dismissed.
Plaintiff alleges that Defendants’ actions “is likely to cause, and has caused,
damage, including consumer confusion” and “have caused [Plaintiff], as well as members of the
public, confusion and damages, including economic and non-economic damages” (¶¶ 105, 107).
Plaintiff, however, is a student (¶¶ 16-17), and it is difficult to imagine how Plaintiff herself
could have been confused as to the origin of what she alleges is her own manuscript. She does
not operate “term paper-related services” (¶ 102) as she describes Defendants’ business. In fact,
there is no allegation that she is engaged in any commercial enterprise whatsoever. Plaintiff is
simply not a competitor and cannot allege any form of competitive injury.
The Seventh Circuit has squarely held that non-competitors do not have standing
to sue under the Lanham Act. In L.S. Heath & Son, AT&T featured a manufacturer of chocolate
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products, who had purchased an AT&T computer system, in its advertising campaign. After the
chocolatier experienced problems with the computer system, it alleged, among other things, that
representations made in the advertising campaign about the system it purchased constituted false
advertising in violation of the Lanham Act. The Seventh Circuit held that because the
chocolatier was not in the computer business, and thus not a competitor of AT&T, it did not have
standing to raise the false advertising claim. See L.S. Heath & Son, 9 F.3d at 575.
Here, Plaintiff does not allege she is a competitor of Defendants or that she has
suffered any competitive injury. Nor could she. Plaintiff is a student who merely asserts that her
as-yet-unregistered and alleged copyright was violated. Plaintiff has no standing to assert a
III. Plaintiff’s False Designation of Origin Claim Fails under the Rule of Dastar.
Count VI claims that Defendants “have placed copyright notices on the South
Africa Manuscript, falsely representing ownership of the copyright” and “have falsely designated
the origin of the South Africa Manuscript” (¶¶ 96, 98). The Supreme Court has specifically held
that this precise allegation does not state a claim under the Lanham Act.
In Dastar Corp. v. Twentieth Century Fox Film Corp., 539 U.S. 23 (2003), the
defendant Dastar released a video set made from tapes of the original version of the Crusade
television series. Plaintiff Fox, who had the rights to the television series, but had let the
copyright expire, brought suit under § 43(a) of the Lanham Act for false designation of origin or
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The Court held that “the most natural understanding of the ‘origin’ of ‘goods’ – the source of
wares – is the producer of the tangible product sold in the marketplace” and that “the phrase
‘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.” Id. at 32. Accordingly, the Court
held that a false designation of origin claim could not be predicated on the authorship “of any
the origin of the “ideas or communications” that the South Africa Manuscript embodies or
contains. It is coextensive with Plaintiff’s premature copyright claim. Under the rule of Dastar,
IV. Plaintiff’s State Law Claims Are Barred Under 47 U.S.C. § 230.
All of Plaintiff’s state law claims (Counts VIII – IX) assert liability based upon
Defendants’ alleged publication of the South Africa Manuscript. The Communications Decency
Act, 47 U.S.C. § 230, however, immunizes providers of interactive computer services, such as
Defendants’ websites, from any state law claims based on information content provided by
another. Because Plaintiff alleges in her Complaint that the South Africa Manuscript was
submitted by someone else (¶¶ 41, 42, 46), Plaintiff’s state law claims must fail.
interactive computer service shall be treated as the publisher or speaker of any information
provided by another information content provider.” § 230(c)(1). The Act also states that “[n]o
cause of action may be brought and no liability may be imposed under any State or local law that
is inconsistent with this section.” § 230(e)(3). In short, “§ 230 creates a federal immunity to any
cause of action that would make service providers liable for information originating with a third-
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party user of the service.” Zeran v. America Online, Inc., 129 F.3d 327, 330 (4th Cir. 1997)
(AOL immune from liability for allegedly defamatory message on AOL bulletin board); see also
Ben Ezra, Weinstein & Co. v. American Online, Inc., 206 F.3d 980 (10th Cir. 2000) (AOL
immune from state law defamation and negligence claims based on publishing of incorrect stock
price and share volume information obtained from another); Carafano v. Metrosplash.com, Inc.,
339 F.3d 1119 (9th Cir. 2003) (internet dating service provider immune from state law
defamation and invasion of privacy claims based on third party’s submission of false profile of
plaintiff).
Defendants obtained the South Africa Manuscript from a third party who
represented that it was her own work and did not violate the copyrights of anyone else – exactly
what Plaintiff alleges to be true (¶¶ 41, 42, 46). Because the South Africa Manuscript was
interactive computer service – did not publish within the meaning of § 230 and are immune from
any state law liability based upon the alleged publication of the Manuscript. Counts VIII – XI
must be dismissed.
Defendants “have engaged in unfair and/or deceptive business practices” in violation of the
Illinois Consumer Fraud and Deceptive Business Practices Act (¶ 108-114). Plaintiff, however,
has not alleged any pecuniary loss. Nor could she. Plaintiff was not deceived and was not a
consumer of Defendants’ services. More fundamentally, Plaintiff has no standing under the
Consumer Fraud Act because she is neither a consumer nor a competitor alleging any conduct
that implicates consumer protection concerns. As such, Count VIII should be dismissed.
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home improvement services for their own use.” Barille v. Sears Roebuck & Co., 682 N.E.2d
118, 124 (Ill. App. 1997). The Act defines a “consumer” as “any person who purchases or
contracts for the purchase of merchandise not for resale in the ordinary course of his trade or
business but for his use or that of a member of his household.” 815 ILCS 505/1(e). Plaintiff is
not a consumer. She does not allege that she purchased her own term paper. Nor does she allege
that she contracted for its purchase. In fact, she expressly alleges she was not a customer (¶¶ 42,
115-120).
Because Plaintiff was not a consumer, was not deceived, and did not purchase her
own term paper, she has suffered no loss. To sue under the Act, Plaintiff must either show a
pecuniary loss or “in a case in which the plaintiff cannot show any pecuniary loss but only an
emotional injury, [she must show] a serious degree of distress caused by outrageous and not
merely unlawful behavior by the defendant.” Greisz v. Household Bank, N.A., 176 F.3d 1012,
1016 (7th Cir. 1999). Plaintiff has not alleged either a pecuniary loss or a “serious degree of
distress caused by outrageous and not merely unlawful behavior by the defendant.” Plaintiff has
In addition, Plaintiff has no standing to sue under the Act. To have standing, a
plaintiff generally must be a consumer. See, e.g., Steinberg v. Chicago Medical Sch., 371
N.E.2d 634, 638 (Ill. 1977) (Act “inapplicable” because plaintiff medical school applicant was
not consumer); Norton v. City of Chicago, 642 N.E.2d 839, 841 (Ill. App. 1st Dist. 1994)
(holding that citizen parking violators lacked “standing to bring an action alleging a violation of
the Consumer Fraud Act because they are not consumers”); Mann v. Kemper Fin. Cos., 618
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N.E.2d 317, 326 (Ill. App. 1st Dist. 1992) (only individuals who purchased interest in fund had
persons engaged in trade or commerce. See Barille, 682 N.E.2d at 124. “Nevertheless, this
liberal interpretation and application of the Act were not intended to cover all commercial
transactions regardless of the relationship between the parties involved.” Id. Instead, this
narrow exception to consumer standing under the Act has been limited to “business competitors
[suing] to redress competitive injuries they suffer as a result of deceptive practices by other
businesses.” Champion Parts, Inc. v. Oppenheimer & Co., 878 F.2d 1003, 1009 (7th Cir. 1989).
To promote the underlying consumer protection purpose of the Act, the competitor standing
exception is further limited to “practices of the defendant [that] are of the type which affect
For example, in Champion Parts, the Seventh Circuit held that Champion could
not maintain an action under the Act because it did not compete with the defendant:
Similarly, in Barille, the Illinois Court of appeals held that an insurance agent could not sue the
insurer under the Act because she was not a consumer and had not alleged that the insurer’s
that implicates consumer protection concerns. The Consumer Fraud Act was simply not
designed for this grievance. Count VIII must be dismissed for lack of standing.
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In Count IX, Plaintiff alleges that Defendant “published express and implied false
statements” about her, which she alleged constitutes defamation (¶¶ 115-120). A careful reading
of her complaint, however, reveals that Plaintiff does not point to a single statement actually
made by Defendants that she alleges is false (¶ 41). Instead, Plaintiff asserts nothing more than
wild and rampant speculation that “many express and implied statements arise from the use of
the South Africa Manuscript” (¶ 42). In other words, Plaintiff alleges that the purported
defamation. This claim fails because (a) it is squarely preempted by the Copyright Act; (b) fails
to plead special damages; and (c) Defendants made no statement about Plaintiff.
The entire basis for Plaintiff’s defamation claim is “the use of the South Africa
Manuscript” (¶ 42). The use of the allegedly copyrighted manuscript, however, is the subject of
federal copyright law. Because Plaintiff’s defamation claim is coextensive with her copyright
claim, the defamation claim is preempted by the Copyright Act and must be dismissed.
Section 301(a) of the Copyright Act preempts all “legal or equitable rights that are
equivalent to any of the exclusive rights within the general scope of copyright as specified by
section 106 in works of authorship that are fixed in a tangible medium and come within the
subject matter of copyright as specified by sections 102 and 103.” 17 U.S.C. § 301(a). “Put
differently, to avoid preemption, a state law must regulate conduct that is qualitatively
distinguishable from that governed by federal copyright law – i.e., conduct other than
reproduction, adaptation, publication, performance, and display.” Toney v. L’Oreal USA, Inc.,
406 F.3d 905, 909, 910 (7th Cir. 2005) (performing two step analysis required under § 301).
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tangible form.” Id. at 909. Plaintiff admits as much when she alleges that she is entitled to a
copyright. The second part of the preemption analysis “requires a showing that the right to be
enforced is ‘equivalent’ to any of the rights set forth in § 106” of the Copyright Act. Id.
Because Plaintiff’s defamation action is premised on the “use” of the South Africa Manuscript, it
falls squarely within the rights set forth in § 106 – namely, “reproduction, adaptation,
publication, performance, and display.” Id. at 910. Plaintiff’s defamation action – because it is
Because the alleged defamation is not defamation per se, Plaintiff is required to
plead special damages. Federal Rule 9(g) requires that “[w]hen items of special damage are
claimed, they shall be specifically stated.” Plaintiff failed to do so, and her Complaint must be
dismissed.
defamation per se and defamation per quod. Statements are defamatory per se when they
harmful that proof of their injurious character can be dispensed with.” Quilici v. Second
Amendment Found., 769 F.2d 414, 417-18 (7th Cir. 1985). An action for defamation per quod is
Needle & Novelty, Inc. v. Drew Pearson Marketing, Inc., 820 F. Supp. 1072, 1076 (N.D. Ill.
1993). “A complaint alleging a claim for defamation per quod, therefore, must allege both the
extrinsic facts that render the publication defamatory and special damages.” Id.
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the court by applying the rule of innocent construction. Id. at 1075. Under that rule, a written
statement:
Here, Plaintiff does not allege that any of the statements actually made by Defendants are
actually false or even about Plaintiff. Rather, Plaintiff alleges that defamation can be inferred
from the statements – that is, “many express and implied statements arise from the use of the
South Africa Manuscript” (¶ 42). Certainly, the use of the South Africa Manuscript “may
here.
special damages as required for defamation per quod. Plaintiff failed to do so. Instead, Plaintiff
merely alleged general damages, “including but not limited to reputational harm, emotional
trauma, financial damage, and other damages in excess of $100,000” (¶ 119). Plaintiff includes
no particulars or specifics as to how she has allegedly been damaged. And, in fact, the types of
damages she alleges all fall within the type of damages that are the usual consequences of
defamation.
As Wright and Miller explain, the difference between general and special
damages is plain:
“General damages typically are those elements of injury that are the
proximate and foreseeable consequences of the defendant's conduct.
Special damages are those elements of damages that are the natural, but
not the necessary or usual, consequence of the defendant's conduct, and
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typically stem from and depend upon the particular circumstances of the
case.” 5A Wright & Miller, Federal Practice and Procedure § 1310 (3d ed.
2004).
Plaintiff’s alleged damages – “reputational harm, emotional trauma, financial damage, and other
damages” – are all the ordinary and usual type of damages foreseeable from defamation. They
do not depend upon the particular circumstances of the case. See Fowler v. Curtis Publ’g Co.,
182 F.2d 377, 379 (D.C. Cir. 1950) (holding that plaintiff failed to plead special damages, and
affirming dismissal of libel case, where plaintiff alleged, without specificity, loss of good will,
Failure to plead special damages with specificity in a defamation per quod case as
required under Federal Rule 9(g) is fatal to the complaint. In Action Repair, Inc. v. American
Broadcasting Cos., 776 F.2d 143, 149-50 (7th Cir. 1985), the Seventh Circuit held that
allegations that company had “suffered losses in excess of $1,000,000” failed to plead special
damages as required for per quod defamation. “Although an estimation of final total dollar
amounts lost is unnecessary, the pleadings must demonstrate some actual pecuniary loss.” Id. at
150 (citation omitted). In so holding, the Seventh Circuit agreed that an allegation that a
business’s “good name, reputation and business had been injured in excess of $12,500,000” was
“insufficient since the complaint alleged no basis for the figure, no connection between the
defamatory statement and the damage, and did not specify the nature of the damage.” Id.
Plaintiff’s failure to plead special damages renders her defamation claim fatally defective.
Under Illinois law, the elements of a claim for defamation are: “(1) a defamatory
assertion of fact about the plaintiff; (2) publication; and (3) injury to the plaintiff’s reputation.”
Chisholm v. Foothill Capital Corp., 3 F. Supp. 2d 925, 938 (N.D. Ill. 1998). In paragraph 41 of
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her complaint, Plaintiff lists a number of alleged statements made by Defendants on the websites.
The only “statement” – if it could be called that – even arguably related to Plaintiff is the alleged
affixing of a copyright notice to the South Africa Manuscript. As explained above, a claim based
The remainder of the alleged statements simply relate to the websites policies,
alleged revenue, and advertising. The statements relate to Defendants’ (a) requiring those
submitting papers to represent that they are submitting their “own papers” that “do not violate
the copyrights of anyone else” (¶ 41); (b) advising those who submit papers that they are
relinquishing rights to their papers; and, (c) making statements about a monthly registration fee
and the inclusion advertising on the websites (¶ 41). The manner in which the websites operate
have nothing to do with Plaintiff. Plaintiff’s defamation claim fails as a matter of law because
she has not alleged any statement or assertion of fact about the Plaintiff made by Defendants.
See Chisholm, 3 F. Supp. 2d at 938 (statement must be “about the plaintiff”) (emphasis added).
VII. Plaintiff’s Invasion of Privacy Count Is Preempted and Fails to State a Claim.
a false light (¶¶ 121-126). In an attempt to provide foundation for her complaint, she speculates
that the public would believe a whole host of allegedly express and implied false statements that
is nothing more than hypothetical free association (¶¶ 42, 122). This claim, however, is no more
than a disguised copyright claim. It claims that Plaintiff was damaged merely by having the
South Africa Manuscript available on Defendants’ websites in violation of her rights. For the
same reasons described in Part V.A above, this claim is preempted by the Copyright Act. See
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claim for false light invasion of privacy. Under Illinois law, the tort of “false light” invasion of
privacy has three elements: “(1) that the plaintiff is placed in a false light before the public as a
result of the defendant’s actions, (2) that the false light in which the plaintiff is portrayed is
highly offensive to a reasonable person, and (3) that in cases involving public figures or matters
of public interest, the person giving the publicity acted with knowledge or reckless disregard of
the falsity of the publicized information and the light in which the plaintiff would be portrayed.”
Grossman v. Smart, 807 F. Supp. 1404, 1411-12 (C.D. Ill. 1992). Though an action for invasion
of privacy is recognized under Illinois law, “courts should proceed with caution in defining the
limits of the right to privacy.” Kelly v. Franco, 391 N.E.2d 54, 57 (Ill. App. 1st Dist. 1979).
Here, Plaintiff’s allegations are nothing more than speculation. Plaintiff has failed to plead any
facts showing that defendants use of the manuscript could be “highly offensive to a reasonable
person,” an essential element of her claim. Plaintiff’s false light invasion of privacy claim
should be dismissed.
In Count XI, Plaintiff alleges that Defendants were unjustly enriched by their
alleged actions. Plaintiff does not explain at all how this claim differs from her copyright
infringement claim. Nor could she. Such unjust enrichment claims are routinely dismissed in
these circumstances because they seek to enforce through state law a right that is exclusively
defined under the Copyright Act. See ATC Distribution Group, Inc. v. Whatever It Takes
Transmissions & Parts, Inc., 402 F.3d 700 (6th Cir. 2005) (unjust enrichment claim under
Kentucky law preempted by federal copyright law); Briarpatch Ltd., L.P. v. Phoenix Pictures,
Inc., 373 F.3d 296 (2d Cir. 2004) (unjust enrichment claim under New York law preempted by
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federal copyright law), cert. denied, 125 S. Ct. 1704 (U.S. 2005); Murray Hill Publications, Inc.
v. ABC Commc’ns, Inc., 264 F.3d 622 (6th Cir. 2001) (unjust enrichment claim under Michigan
law preempted by federal copyright law); Del Madera Properties v. Rhodes & Gardner, Inc., 820
F.2d 973 (9th Cir. 1987) (unjust enrichment claim under California law preempted by federal
copyright law); Ehat v. Tanner, 780 F.2d 876 (10th Cir. 1985) (unjust enrichment and unfair
competition claims under Utah law preempted by federal copyright law). Plaintiff’s claim
VIII. Conclusion
For the foregoing reasons, Plaintiff’s Complaint against Defendants Rusty Carroll
Respectfully submitted,
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Certificate of Service
The undersigned hereby certifies that on October 25, 2005, a true and correct
copy of the foregoing was filed electronically with the Clerk of the Court to be served by
operation of the Court’s electronic filing system upon the following:
Douglas S. Teasdale
Teasdale, Murphy & O’Grady, LLP
1001 Washington Avenue, Suite 360
St. Louis, Missouri 63101
Melise Blakeslee
Mark Davis
Evan Parke
Sarah Brown
McDermott Will & Emery LLP
600 13th Street, N.W.
Washington, D.C. 20005-3096
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2217189.1