James v. Meow Media, Inc ( 2002 )

5(&200(1'(' )25 )8//7(;7 38%/,&$7,21 3XUVXDQW WR 6L[WK &LUFXLW 5XOH  (/(&7521,& &,7$7,21  )(' $SS 3 WK &LU )LOH 1DPH DS 81,7('67$7(6&28572)$33($/6 )257+(6,;7+&,5&8,7 BBBBBBBBBBBBBBBBB s2( s$0(6HWDO ; 3ODLQWLIIV$SSHOODQWV    1R Y  !  0(2: 0(',$ ,1&HWDO  'HIHQGDQWV$SSHOOHHV  1 $SSHDOIURPWKH8QLWHG6WDWHV'LVWULFW&RXUW IRUWKH:HVWHUQ'LVWULFWRI.HQWXFN\DW3DGXFDK 1Rn(GZDUG+sRKQVWRQH 6HQLRU'LVWULFWsXGJH $UJXHG1RYHPEHU 'HFLGHGDQG)LOHG$XJXVW %HIRUH*8 REVFHQH PDWHULDO@  WR ZRUNV ZKLFK GHSLFW RU  sDPHVHWDOY0HRZ0HGLDHWDO 1R 1R sDPHVHWDOY0HRZ0HGLDHWDO  &DUGR]RjV RSLQLRQ LQ 3DOVJUDI ZKLOH FLWHG DV WKH 7R VD\ WKDW WKH IHDWXUHV RI WKH GHIHQGDQWVj SURGXFWV RI FRUQHUVWRQH RI WKH $PHULFDQ GRFWULQH RI D OLPLWHG GXW\ RI ZKLFK WKH SODLQWLIIV FRPSODLQ DUH SURWHFWHG E\ WKH )LUVW FDUH KDV EHHQ FULWLFL]HG IRU LWV FRQFOXVRU\ UHDVRQLQJ $PHQGPHQW LV QRW QHFHVVDULO\ WR VD\ WKDW DWWDFKLQJ WRUW UHJDUGLQJ ZKHWKHU 3DOVJUDIjV KDUP UHDOO\ ZDV VXIILFLHQWO\ OLDELOLW\ WR WKRVH IHDWXUHV UDLVHV VLJQLILFDQW FRQVWLWXWLRQDO XQIRUHVHHDEOH6HH:LOOLDP/3URVVHU3DOVJUDI5HYLVLWHG SUREOHPV7KHSODLQWLIIVjDUJXPHQWLVPRUHQXDQFHGWKH\GR 0LFK/5HY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&RQQHFWLRQ'LVWULE&RY LPSUREDEOHWREHIRUHVHHDEOH 5HQR)GWK&LU:HKDYHDOVR UHTXLUHGKRZHYHUWKDWVXFKUHJXODWLRQVEHQDUURZO\WDLORUHG .HQWXFN\FRXUWVKDYHVWUXJJOHGZLWKWKHIRUPOHVVQDWXUHRI WR SURWHFWLQJ PLQRUV IURP VSHHFK WKDW PD\ LPSURSHUO\ WKLV LQTXLU\  $W ERWWRP .HQWXFN\ FRXUWV KDYH FRQFHGHG LQIOXHQFH WKHP DQG QRW HIIHFW DQ mXQQHFHVVDULO\ EURDG GHFLGLQJWKHH[LVWHQFHRIDGXW\RIFDUHLVmHVVHQWLDOO\DSROLF\ VXSSUHVVLRQ RI VSHHFKl DSSURSULDWH IRU DGXOWV  5HQR Y GHWHUPLQDWLRQl0XOOLQVY&RPPRQZHDOWK/LIH,QV&R $PHULFDQ &LYLO /LEHUWLHV 8QLRQ  86   6:G.\6KHHKDQY8QLWHG6HUYV$XWR 8QLWHG6WDWHVY3OD\ER\(QWPjW*URXS,QF86 $VVjQ6:G.\&W$SS5DWKHUWKDQWKH &RQQHFWLRQ'LVWULE)GDW VRSKLVWLFDWHG ZHLJKLQJ RI SUREDELOLWLHV WKH FRQWHQW RI WKDW SROLF\ GHWHUPLQDWLRQ mLV EXW D FRQFOXVLRQ RI ZKHWKHU D 2I FRXUVH WKH PHDVXUH KHUH LQWHQGHG WR SURWHFW PLQRUV SODLQWLIIjVLQWHUHVWVDUHHQWLWOHGWROHJDOSURWHFWLRQDJDLQVWWKH IURPWKHLPSURSHULQIOXHQFHRIRWKHUZLVHSURWHFWHGVSHHFKLV GHIHQGDQWjVFRQGXFWl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m7KH TXHVWLRQ RI GXW\ SUHVHQWV DQ LVVXH RI ODZl 6KHHKDQ  6:G DW   6HH DOVR $ $P sXU G ,QFRQWUDVWWKHTXHVWLRQEHIRUHXVLVZKHWKHUWRSHUPLWWRUW 1HJOLJHQFH†OLVWLQJRWKHUMXULVGLFWLRQVLQZKLFKWKHGXW\ OLDELOLW\ IRU SURWHFWHG VSHHFK WKDW ZDV QRW VXIILFLHQWO\ SUHYHQWHGIURPUHDFKLQJPLQRUV$WWULDOWKHSODLQWLIIZRXOG XQGRXEWHGO\ DUJXH DERXW WKH HIILFLHQW PHDVXUHV WKDW WKH GHIHQGDQWVVKRXOGKDYHWDNHQWRSURWHFWWKHFKLOGUHQ%XWDW  sDPHVHWDOY0HRZ0HGLDHWDO 1R 1R sDPHVHWDOY0HRZ0HGLDHWDO  PD\DOVREHIRUSXUSRVHVRIHQWHUWDLQPHQW6HH7LPH,QFY LQTXLU\ LV D TXHVWLRQ RI ODZ   7KH DOORFDWLRQ RI +LOO86&OHDUO\WKHYDULRXVPHGLD UHVSRQVLELOLW\ IRU GHWHUPLQLQJ WKLV TXHVWLRQ WR WKH FRXUWV GLVWULEXWHGLQWKLVFDVHIDOODORQJDVSHFWUXPRIH[SUHVVLYH UDWKHUWKDQWRMXULHVUHYHDOVWKDWWKHGXW\LQTXLU\FRQWDLQVDQ FRQWHQW,WLVORQJVHWWOHGWKDWPRYLHVFDQFRQVWLWXWHSURWHFWHG LPSRUWDQW UROH IRU FRQVLGHULQJ WKH SROLF\ FRQVHTXHQFHV RI VSHHFKsRVHSK%XUVW\Q,QFY:LOVRQ86 LPSRVLQJOLDELOLW\RQDFHUWDLQFODVVRIVLWXDWLRQV(VVHQWLDOO\ 2IPRUHUHFHQWEXWQROHVVGHILQLWLYHUHVROXWLRQLV WKH IRUHVHHDELOLW\ LQTXLU\ UHTXLUHV FRXUWV WR GHWHUPLQH WKDW LQWHUQHW VLWHV DUH VLPLODUO\ HQWLWOHG WR SURWHFWLRQ  6HH TXHVWLRQVLQH[RUDEO\WLHGWRWKHXOWLPDWHTXHVWLRQRIZKHWKHU 5HQRY$PHULFDQ&LYLO/LEHUWLHV8QLRQ86 WKHGHIHQGDQWZDVQHJOLJHQW$IWHUDOOWKHSUREDELOLW\RIWKH VWULNLQJGRZQWKH&RPPXQLFDWLRQV'HFHQF\$FWUHJXODWLQJ KDUP LV D VLJQLILFDQW IDFWRU LQ WUDGLWLRQDO DVVHVVPHQW RI LQGHFHQWPDWHULDORQWKHLQWHUQHW7KHFRQVWLWXWLRQDOVWDWXV QHJOLJHQFH    %\ SODFLQJ WKH IRUHVHHDELOLW\ DQDO\VLV LQ WKH RIYLGHRJDPHVKDVEHHQOHVVOLWLJDWHGLQIHGHUDOFRXUWV WKHWKLUG PHDQLQJl,GDW SDUW\jV@ LQWHQWLRQDO PLVFRQGXFWl  5HVWDWHPHQW RI 7RUWV 6HFRQG†%FPWH+*HQHUDOO\VXFKFLUFXPVWDQFHV )RUHVHHDELOLW\KRZHYHULVDVOLSSHU\FRQFHSW,QGHHGLW DUHOLPLWHGWRFDVHVLQZKLFKWKHGHIHQGDQWKDVJLYHQD\RXQJ FRXOG EH DUJXHG WKDW ZH RXUVHOYHV FRQIXVHG LW ZLWK VRPH FKLOG DFFHVV WR XOWUDKD]DUGRXV PDWHULDOV VXFK DV EODVWLQJ FRQFHSWRIQHJOLJHQFH:HQRWHGLQ:DWWHUVm7KHGHIHQGDQW FDSV9LOOVY&LW\RI&ORTXHW1:0LQQRU FDQQRW EH IDXOWHG REYLRXVO\ IRU SXWWLQJ LWV JDPH RQ WKH ILUHDUPV 6SLYH\ Y 6KHHOHU  6:G  .\  PDUNHWZLWKRXWDWWHPSWLQJWRDVFHUWDLQWKHPHQWDOFRQGLWLRQ (YHQLQWKRVHFDVHVFRXUWVKDYHUHOLHGRQWKHWKLUGSDUW\jV RI HDFK DQG HYHU\ SURVSHFWLYH SOD\HUl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$UJXDEO\WKH DQG LQWHUQHW VLWHV DORQH RU LQ ZKDW FRPELQDWLRQV ZRXOG GHIHQGDQWVjJDPHVPRYLHDQGLQWHUQHWVLWHVJDYH&DUQHDOWKH LQFLWHD\RXQJSHUVRQWRYLROHQFH&DUQHDOjVUHDFWLRQWRWKH LGHDV DQG HPRWLRQV WKH mSV\FKRORJLFDO WRROVl WR FRPPLW JDPHV DQG PRYLHV DW LVVXH KHUH DVVXPLQJ WKDW KLV YLROHQW WKUHHPXUGHUV+RZHYHUWKLVFDVHODFNVVXFKFUXFLDOIHDWXUHV DFWLRQVZHUHVXFKDUHDFWLRQZDVVLPSO\WRRLGLRV\QFUDWLFWR RIRXUMXULVSUXGHQFHLQWKLVDUHD)LUVWWKHGHIHQGDQWVLQWKLV H[SHFWWKHGHIHQGDQWVWRKDYHDQWLFLSDWHGLW:HILQGWKDWLW FDVH KDG QR LGHD &DUQHDO HYHQ H[LVWHG PXFK OHVV WKH LVVLPSO\WRRIDUDOHDSIURPVKRRWLQJFKDUDFWHUVRQDYLGHR SDUWLFXODULGLRV\QFUDFLHVRI&DUQHDOWKDWPDGHWKHLUSURGXFWV VFUHHQDQDFWLYLW\XQGHUWDNHQE\PLOOLRQVWRVKRRWLQJSHRSOH SDUWLFXODUO\GDQJHURXVLQKLVKDQGV,QHYHU\FDVHWKDWWKLV LQDFODVVURRPDQDFWLYLW\XQGHUWDNHQE\DKDQGIXODWPRVW FRXUW KDV GLVFRYHUHG LQ ZKLFK GHIHQGDQWV KDYH EHHQ KHOG IRU&DUQHDOjVDFWLRQVWRKDYHEHHQUHDVRQDEO\IRUHVHHDEOHWR OLDEOHIRUQHJOLJHQWO\FUHDWLQJDQXQUHDVRQDEO\KLJKULVNRI WKH PDQXIDFWXUHUV RI WKH PHGLD WKDW &DUQHDO SOD\HG DQG WKLUGSDUW\ FULPLQDO FRQGXFW WKH GHIHQGDQWV KDYH EHHQ YLHZHG VSHFLILFDOO\ DZDUH RI WKH SHFXOLDU WHQGHQF\ RI D SDUWLFXODU SHUVRQ WR FRPPLW D FULPLQDO DFW ZLWK WKH GHIHQGDQWVj $WILUVWJODQFHRXUFRQFOXVLRQDOVRDSSHDUVWREHOLWWOHPRUH PDWHULDOV WKDQDQDVVHUWLRQ0HQWDOKHDOWKH[SHUWVFRXOGTXLWHSODXVLEO\ RSLQHDERXWWKHPDQQHULQZKLFKYLROHQWPRYLHVDQGYLGHR 6HFRQGQRFRXUWKDVHYHUKHOGWKDWLGHDVDQGLPDJHVFDQ JDPHV DIIHFW YLHZHU EHKDYLRU  :H QHHG QRW VWUHWFK WR FRQVWLWXWH WKH WRROV IRU D FULPLQDO DFW XQGHU WKLV QDUURZ LPDJLQH VRPH PL[WXUH RI LPSUHVVLRQDELOLW\ DQG HPRWLRQDO H[FHSWLRQ%H\RQGWKHLULQWDQJLELOLW\VXFKLGHDVDQGLPDJHV LQVWDELOLW\ WKDW PLJKW XQQDWXUDOO\ UHDFW ZLWK WKH YLROHQW  sDPHVHWDOY0HRZ0HGLDHWDO 1R 1R sDPHVHWDOY0HRZ0HGLDHWDO  FRQWHQWRIWKHm%DVNHWEDOO'LDULHVlRUm'RRPl2IFRXUVH XQGHUQRUPDOFLUFXPVWDQFHVZHGRQRWUHTXLUHWKHSXWDWLYH &DUQHDOjVUHDFWLRQZDVQRWDQRUPDOUHDFWLRQ,QGHHG&DUQHDO WRUW GHIHQGDQW WR DQWLFLSDWH LW  ,QGHHG WKLV VWDWLVWLFDO LVQRWDQRUPDOSHUVRQEXWLWLVQRWXWWHUFUD]LQHVVWRSUHGLFW REVHUYDWLRQ H[SODLQV WKH GLVWLQFWLRQ GUDZQ E\ .HQWXFN\ WKDWVRPHRQHOLNH&DUQHDOLVRXWWKHUH FRXUWVLQWKHGUDPVKRSOLDELOLW\FDVHV :HUHWXUQKRZHYHUWRWKH.HQWXFN\FRXUWjVREVHUYDWLRQ 7KHVHFRQGUHDVRQLVVWUXFWXUDO7KHV\VWHPRIFULPLQDO WKDWWKHH[LVWHQFHRIDGXW\RIFDUHUHIOHFWVDMXGLFLDOSROLF\ OLDELOLW\ KDV FRQFHQWUDWHG UHVSRQVLELOLW\ IRU DQ LQWHQWLRQDO MXGJPHQW DW ERWWRP  )URP WKH .HQWXFN\ FDVHV RQ FULPLQDODFWLQWKHSULPDU\DFWRUKLVDFFRPSOLFHVDQGKLVFR IRUHVHHDELOLW\ ZH FDQ GLVFHUQ WZR UHOHYDQW SROLFLHV WKDW FRQVSLUDWRUV  %\ LPSRVLQJ OLDELOLW\ RQ WKRVH ZKR GLG QRW FRXQVHODJDLQVWILQGLQJWKDW&DUQHDOjVYLROHQWDFWLRQVZHUHWKH HQGHDYRUWRDFFRPSOLVKWKHLQWHQWLRQDOFULPLQDOXQGHUWDNLQJ UHDVRQDEO\IRUHVHHDEOHUHVXOWRIGHIHQGDQWVj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jVLQWHQWLRQDOFULPLQDODFW".HQWXFN\FRXUWVKDYH WKDWWKLUGSDUWLHVZLOOQRWFRPPLWLQWHQWLRQDOFULPLQDODFWV IRXQG VXFK FLUFXPVWDQFHV ZKHQ WKH WRUW GHIHQGDQW KDG 6HH 5HVWDWHPHQW 6HFRQG RI 7RUWV † % FPW G SUHYLRXVO\GHYHORSHGmDVSHFLDOUHODWLRQVKLSlZLWKWKHYLFWLP m1RUPDOO\ WKH DFWRU KDV PXFK OHVV UHDVRQ WR DQWLFLSDWH RIDWKLUGSDUW\LQWHQWLRQDOFULPLQDODFW6HHHJ)U\PDQY LQWHQWLRQDOPLVFRQGXFWWKDQKHKDVWRDQWLFLSDWHQHJOLJHQFH +DUULVRQ6:G.\UHTXLULQJWKDWWKH ,Q WKH RUGLQDU\ FDVH KH PD\ UHDVRQDEO\ SURFHHG XSRQ WKH YLFWLPEHLQVWDWHFXVWRG\LQRUGHUWRWULJJHUJRYHUQPHQWDO DVVXPSWLRQWKDWRWKHUVZLOOQRWLQWHUIHUHLQDPDQQHULQWHQGHG GXW\WRSURWHFWKHUIURPWKLUGSDUW\YLROHQFHDVDPDWWHURI WRFDXVHKDUPWRDQ\RQH7KLVLVWUXHSDUWLFXODUO\ZKHUHWKH .HQWXFN\ WRUW ODZ  &I 'H6KDQH\ Y :LQQHEDJR &RXQW\ LQWHQWLRQDO FRQGXFW LV D FULPH VLQFH XQGHU RUGLQDU\ 'HSjWRI6RF6HUY  86DUWLFXODWLQJWKH FLUFXPVWDQFHVLWPD\UHDVRQDEO\EHDVVXPHGWKDWQRRQHZLOO VSHFLDO UHODWLRQVKLS WHVW WR WULJJHU D JRYHUQPHQWDO GXW\ WR YLRODWH WKH FULPLQDO ODZl  6HH DOVR *DLQHV7DEE Y ,&, SURWHFWSHUVRQVIURPSULYDWHYLROHQFHXQGHUWKH)RXUWHHQWK ([SORVLYHV 86$ ,QF  ) 6XSS  ' 2NOD  $PHQGPHQW7KLVGXW\WRSURWHFWFDQEHWULJJHUHGE\SODFLQJ KROGLQJWKDWIHUWLOL]HUDQGEODVWLQJFDSPDQXIDFWXUHUVZHUH WKHSXWDWLYHSODLQWLIILQFXVWRG\RUE\WDNLQJRWKHUDIILUPDWLYH QRWOLDEOHIRU0XUUDK)HGHUDO%XLOGLQJERPELQJDVWKH\ZHUH VWHSVWKDWGLVDEOHWKHSODLQWLIIIURPSURWHFWLQJKLPVHOIDJDLQVW HQWLWOHG WR EHOLHYH WKDW WKLUG SDUWLHV ZRXOG QRW HQJDJH LQ WKLUGSDUW\ LQWHQWLRQDO FULPLQDO DFWV  2I FRXUVH D VSHFLDO LQWHQWLRQDO FULPLQDO FRQGXFW +HQU\ Y 0HUFN  &R  UHODWLRQVKLSFDQEHFUHDWHGE\DFRQWUDFWEHWZHHQWKHSODLQWLII )G   WK &LU   7KH UHDVRQV EHKLQG WKLV DQGWKHGHIHQGDQW)LQDOO\VRPHVWDWHVKDYHLPSRVHGDGXW\ JHQHUDO UXOH DUH VLPSOH HQRXJK  7KH ILUVW UHDVRQ LV D WRSURWHFWRWKHUVIURPWKLUGSDUW\LQWHQWLRQDOFULPLQDODFWVRQ SUREDELOLVWLFMXGJPHQWWKDWIRUHVHHDELOLW\DQDO\VLVUHTXLUHV PHPEHUVRIGLVFUHWHSURIHVVLRQVZKREHFRPHDZDUHRIWKH ,QGLYLGXDOV JHQHUDOO\ DUH VLJQLILFDQWO\ GHWHUUHG IURP WKLUGSDUW\jVLQWHQWLRQWRHQJDJHLQFULPLQDOFRQGXFWDJDLQVW XQGHUWDNLQJLQWHQWLRQDOFULPLQDOFRQGXFWJLYHQWKHVDQFWLRQV DVSHFLILFSHUVRQ6HH7DUDVRIIY%RDUGRI5HJHQWVRIWKH WKDW FDQ IROORZ  7KH WKUHDWHQHG VDQFWLRQV PDNH WKH WKLUG 8QLYRI&DO3G&DO(YDQVY0RUHKHDG SDUW\LQWHQWLRQDOFULPLQDOFRQGXFWVXIILFLHQWO\OHVVOLNHO\WKDW &OLQLF6:G.\&WRI$SS