Boss Worldwide LLC v. Crabill

Background

Boss Worldwide LLC, doing business as ALGO Online Retail, sued Beau Crabill under Section 512(f) of the Digital Millennium Copyright Act. Boss alleged that Crabill made false statements in a request to YouTube seeking removal of a promotional video. The video allegedly used footage from an event hosted by Boss. Boss also described other disputes arising from the end of the parties’ business relationship, including alleged diversion of revenue, misuse of customer information, and violations of the parties’ Operating Agreement.

Crabill filed a motion to dismiss under Rules 12(b)(1), 12(b)(2), and 12(b)(6), citing lack of subject-matter jurisdiction, lack of personal jurisdiction, and failure to state a claim. The court concluded that the motion also asked the court to require arbitration, so it treated the motion as including an implied motion to compel arbitration.

Arbitration Analysis

The Operating Agreement stated that disputes over the agreement and other disputes among the members would be submitted to mediation and, if mediation did not resolve the dispute, could be submitted to arbitration under American Arbitration Association rules. The parties did not dispute that the agreement contained a valid arbitration provision.

The court held that the provision was broad enough to cover Boss’s Digital Millennium Copyright Act claim. It reasoned that the claim arose from the parties’ obligations and the aftermath of the end of their business relationship, and that the parties had attempted to address the claim during mediation. The court also found no indication that Congress had barred arbitration of Digital Millennium Copyright Act claims. The court rejected Boss’s argument that the word “may” made arbitration optional.

Ruling

Judge Vincent L. Briccetti granted the motion to compel arbitration and ordered the parties to arbitrate the dispute under the Operating Agreement. The court denied the motion to dismiss without prejudice, meaning the court did not decide the dismissal issues at that time and did not bar a later motion. The court stayed the action pending arbitration and directed the Clerk to administratively close the case, while allowing either party to seek reopening by letter motion within 30 days after the arbitration concluded. The court did not decide whether Boss’s Digital Millennium Copyright Act allegations were legally sufficient or whether Crabill was liable.