Maddry v. Luoxue

Background

Daniel M. Maddry, representing himself, alleged that he owned the copyright in “Discernment,” a card game, and the trademark for the “Christians Like” logo on its box. He alleged that counterfeit versions of the game were listed on Amazon, Walmart, and eBay. His complaint asserted one claim for copyright infringement under 17 U.S.C. §§ 106 and 501.

Maddry filed an application for a temporary restraining order, an emergency order intended to provide immediate relief. He asked the court to require Amazon, Walmart, and eBay to remove the allegedly counterfeit listings; prohibit the defendants and unidentified sellers from listing or selling counterfeit copies; preserve sales records, communications, and inventory data; provide an accounting of profits; and permit expedited discovery to identify sellers and obtain information from the online platforms.

Court’s Analysis

The court held that the requests for expedited discovery and an accounting of profits, as well as the request to preserve evidence, were discovery-related matters that should be handled later through the proper procedures. The court explained that the Digital Millennium Copyright Act provides a subpoena process for obtaining certain information identifying alleged infringers. For other expedited discovery, Maddry would need to show good cause. The court stated that he had not yet made the required initial showing of copyright infringement for such discovery.

The court also concluded that a temporary restraining order generally can bind only the parties and certain people acting with them. Amazon, Walmart, and eBay were not named as defendants. The court further noted that Maddry alleged Amazon had already removed the listings, making his request concerning Amazon moot. The court said that the Digital Millennium Copyright Act’s notice-and-takedown process, rather than this temporary restraining-order application, provided a way to seek prompt removal from Walmart and eBay. The court therefore denied the request to require those nonparties to remove the listings.

As to the request to prohibit the defendants and unidentified sellers from listing or selling counterfeit copies, the court found that Maddry had met the emergency notice requirements for an order issued without advance notice. But he failed to satisfy the first requirement for preliminary injunctive relief: showing that he was likely to succeed on the merits, or that serious questions existed about the merits. Under the Copyright Act, a copyright owner generally must have preregistered or registered the copyright before filing an infringement lawsuit. Maddry provided evidence of a registered trademark for the “Christians Like” logo, but the court explained that trademark and copyright are separate rights. He did not provide evidence that the copyright in “Discernment” had been preregistered or registered before he filed the action. Because this first factor was not met, the court did not analyze the remaining preliminary-injunction factors.

Disposition

Judge Beth Freeman denied Maddry’s Ex Parte Application for Temporary Restraining Order and Request for Expedited Relief. The denial was without prejudice to Maddry bringing a later motion for a preliminary injunction.