Twitch Interactive, Inc. v. Fishwoodco GmbH

Background

Twitch sought confirmation of final arbitration awards issued in its dispute with Fishwoodco GmbH, doing business as Loots. Twitch alleged that Fishwoodco operated an advertising platform involving Twitch streamers, used Twitch marks, and violated Twitch’s terms of service and intellectual-property rights. Twitch’s arbitration claims included alleged violations of the Lanham Act, breach of contract, and interference with contractual relationships.

The arbitration tribunal entered a default judgment against Fishwoodco on January 4, 2021, awarding $1,488,000 and issuing an injunction. The tribunal later amended the injunction to include Loots Media GmbH, Fuehnen Holding GmbH, Marc Fuehnen, and website operators. Fishwoodco did not appear in the federal confirmation action, leading to an entry of default and a recommendation that default judgment be entered.

Loots Media, Fuehnen Holding, and Fuehnen asked to intervene so they could protect their interests and file a motion to dismiss based on lack of personal jurisdiction. They also had previously sought permission to submit briefing as amici, meaning nonparties offering information or arguments to the court.

Intervention

The court granted intervention as of right under Federal Rule of Civil Procedure 24(a)(2). The court found that the motion was timely because the case remained at an early stage, Twitch had not yet been required to defend the merits of its petition, and the proposed intervenors had made efforts to protect their interests after learning that Twitch claimed an arbitration award applied to them.

The court also found that the proposed intervenors had a significantly protectable interest. The requested injunction would permanently restrict their use of Twitch’s trademarks, services, and advertising features. The court found that the disposition of the case could impair their ability to protect that interest. Finally, Fishwoodco could not adequately represent them because it was in bankruptcy proceedings and had defaulted in the federal action.

The court accepted the proposed intervenors’ attached motion to dismiss for filing. It did not decide that motion or the personal-jurisdiction issue in this order. The court also denied the request for leave to file briefing as amici for the reasons stated in Judge DeMarchi’s earlier report and recommendation.

Default Judgment and Disposition

The court denied Twitch’s motion for default judgment without prejudice to refiling with a more narrowly tailored judgment directed only at Fishwoodco GmbH. The order therefore did not enter default judgment or decide whether the arbitration awards should be confirmed as to the proposed intervenors.

Unless the parties stipulated otherwise, Twitch’s opposition to the motion to dismiss was due within 14 days, and the proposed intervenors’ reply was due seven days after Twitch’s opposition. The proposed intervenors were also directed to reserve a hearing date. The order was signed by Edward J. Davila on November 9, 2023.