litigation

October 24, 2022

A case of Bad Blood? Taylor Swift Sued for Alleged Copyright Infringement

La Dart’s official complaint is largely predicated on her assertion that the stylistic elements of her book are not typical, and that they are not present within other published works. Therefore, she alleges that there is a substantially similar overall impression of the two works that constitutes infringement. 

In order to prove her allegations, La Dart has the burden of proving two elements:

  1. She owns a valid copyright 
  2. Swift copied constituent elements of La Dart’s original work

La Dart’s complaint establishes that she obtained a valid copyright registration for her book in 2010. The more difficult element to prove is the second, as it relies on La Dart using circumstantial evidence to support her claims. 

For example, La Dart’s complaint asserts that Swift had “repeated and long-term access” to her book “Lover“ as it was available through various channels after its publication. If she is unable to provide evidence that the work was actually accessed, she must show that there is a “striking similarity” between her work and Swift’s.

La Dart claims that Swift’s album and accompanying book contain a “substantially similar” format, color scheme, and design. The identical titles, of course, are also at issue. The complaint also alleges that the photographs of the two women on the covers of their respective books are similar enough to warrant infringement, as they are each shown in an “upward pose.” 

An additional element often used to prove copyright infringement is that the defendant sought commercial advantage or private financial gain. While La Dart’s complaint does not explicitly accuse Swift of such, it certainly implies it by referring to the considerable number of sales and subsequent monetary gains of Swift’s Lover album.

The complaint, filed on August 23rd, 2022, declares that La Dart has been irreparably harmed by Swift’s album. She is seeking $1 million in damages, as well as Swift’s profits attributable to the infringement. At the time of this publication, there were currently no substantive updates on the case.

October 24, 2022

Temporary Restraining Orders: The Strategy Behind Injunctive Relief in IP Disputes

What is Injunctive Relief?

Injunctive Relief is a court-ordered act or prohibition against an act that has been requested in a petition to the court for an injunction. Usually, injunctive relief is granted only after a hearing at which both sides have an opportunity to present testimony and legal arguments (NOLO, n.d.).

What is a Temporary Restraining Order?

A Temporary Restraining Order is a court order that prevents someone from committing a certain action endorsed by the court. This type of order has a specified time limit and does not exceed 14 days, unless the court sets a time before that date. 

What is a Permanent Injunction?

A Permanent Injunction is a court order that a person or entity take certain actions or refrain from certain activities. A permanent injunction is typically issued once a lawsuit over the underlying activity is resolved, as distinguished from a preliminary injunction, which is issued while the lawsuit is pending (NOLO, n.d.). Injunctions are decisions made by the court commanding or preventing a specific act. This is useful in Intellectual Property disputes when parties are arguing over ideas and intellectual rights owned by one of the parties.

When there is a patent, copyright, or trademark owned by a party, that party can prove to the court that they own that property protected by the law. With this document stating they own the rights to the specific property, they are able to request a permanent injunction from the court to prevent another party from using their property.

For example, if you owned a trademark for the company name “Amazing Star”, and you noticed that a store opened with the name “Amazing Star” across the street from your business then they would be infringing on your entity’s trademark. In order to receive injunctive relief from the court, you will need to provide the trademark declaration to the court for proof of ownership. 

What does a Business need to prove to get a preliminary injunction awarded?

First, you must decide if your case should be heard in State or Federal Court. This can be deciphered by determining the questions or diversity involved in your case. Inter-state issues should be filed in Federal Court, whereas issues that are within state jurisdictions should be filed in state courts. 

Once you have decided if the case should be filed in State or Federal Court, it would be beneficial to decide which court you would like to petition to hear the case. This is a crucial step to ensure that the judge you decide to request a hearing from is willing to hear – and potentially grant your case. 

How Do I Request an Injunction?

Prepare Your Complaint

To begin your request to the court, you would likely want to start with the complaint. This is beneficial to the judge overseeing the case because it will give the judge an idea of what to expect during the hearings and the duration of the trial. You should be as descriptive as possible in your complaint, but not excessive. This complaint will be attached to the petition that is filed with the court. 

Review Applicable Rules

Before you submit your petition to the court, you want to ensure that you have reviewed the local rules of the court. This will help to have a better understanding of how the process would go moving forward in the case. Most courts post their local rules on their respective websites. These rules are usually issued by the presiding judge and abided by their associates. 

Proceed with Filing

Once you have reviewed all the facts needed and verified that you have included all necessary points, you can proceed with filing with the court. After reviewing all the rules associated with the court, you can adjust accordingly for a likely outcome. (American Bar Association, n.d.).

A Preliminary Injunctive Relief can benefit the Plaintiff in an Intellectual Property Dispute by bringing the seriousness of the damages to the court’s attention. This is most useful when there are other parties involved that seek to steal or misuse property that would otherwise cause the Plaintiff’s company harm. A Preliminary Injunction MUST show that the Plaintiff will suffer irreparable harm unless the injunction is granted. 

If your request for a preliminary injunction is denied by the court, and sufficient evidence has been provided, the party requesting the preliminary injunction may file and interlocutory appeal (an appeal that occurs before the trial court’s final ruling on the entire case). There are three reasons that must be met in order to complete an interlocutory appeal. First, the order must have conclusively determined the disputed question. Second, the order must “resolve an issue completely separate from the merits of the action. Finally, the order must be “effectively unreviewable on appeal from a final judgment.” (Cornell Law School, n.d.)

Lloyd & Mousilli Can Help

This may seem like a lot of information, but there are resources out there to help with the questions you have. Selecting the best attorney that suits your needs and has the experience you need to get this case through is a hard task. At Lloyd & Mousilli, we are here to help get you through the difficult times and strive to get you the best outcome for you and your company.

September 19, 2022

Texas Judge Issues Scathing Order in Toys R Us Complaint Against Independent Toy Store

Geoffrey the Giraffe is casting an ominous shadow over one Texas family.

Last summer, almost immediately following the news that Toys “R” Us and Macy’s were teaming up to relaunch the iconic toy store in the U.S., The Toy Book reported on a detour from that forward movement as Tru Kids Brands Inc. — the WHP Global-owned parent of the Toys “R” Us and Babies “R” Us brands — took a step backward and filed a lawsuit against an independent toy store in New Jersey.

At the time, Tru Kids alleged “trademark infringement” as the store, Toys & Beyond, had moved into the space that was previously occupied by one of the two, short-lived Toys “R” Us concept stores that opened in partnership with b8ta in 2019. At the center of the complaint were issues regarding the colorful logo of Toys & Beyond and the reuse of fixtures and signage, including Geoffrey’s Treehouse, Geoffrey’s Magical Mirror, and the Play Around Theater, that were left behind when Toys “R” Us abandoned the space at the Westfield Garden State Plaza in January 2021.

On Oct. 25, 2021, The Toy Book was first alerted to a nearly identical lawsuit filed in Texas against TOYZ, a family-owned toy store that opened nearly 20 years ago. Farida Afzal immigrated to Houston from Pakistan and built a business that eventually grew to include a distribution arm and several retail stores, including a small location on the lower level of Simon Property Group’s Galleria Mall.

In its response to the complaint filed by attorneys at Baker Botts on behalf of Tru Kids Brands, Afzal Ali Enterprises, Inc. dba TOYZ noted that its store peacefully co-existed with Toys “R” Us during the time that both stores were open in the Galleria. According to the response, the scuffle began months after Toys “R” Us closed, when the Galleria landlord offered TOYZ the opportunity to expand into the former Toys “R” Us store.

Nearly a year later, the legal battle continues and it’s begun making headlines as The Houston Chronicle, alongside ABC and CBS affiliates have reported on the story. Meanwhile, a Change.org petition is calling upon WHP Global and Tru Kids Brands to drop the lawsuit, while members of the U.S. and global toy communities, including Richard Derr of Learning Express, MGA Entertainment Founder and CEO Isaac Larian, Toy World Publisher John Baulch, World Alive Founder Amy Holden, and Michael Olafsson of Monkey Fish Toys have taken to LinkedIn to express support for the owners of TOYZ and call for an end to what appears to be legal bullying in a “bleed them dry” campaign.

In Texas, it appears that Judge Charles Eskridge might agree.

On August 23, Judge Eskridge issued a scathing order against Tru Kids Brands and Toys “R” Us.

In the filing, Judge Eskridge denies a motion by Tru Kids to amend its complaint against TOYZ, stating that “the motion itself evinces undue delay and dilatory motive,” and that “the motion could also be considered abusive.”

“Toys ‘R’ Us is trying to shutter a family-owned toy store in an attempt to set a precedent for shutting down any toy store in the country that has a multi-colored logo,” Lema Barazi, lead attorney representing TOYZ for Lloyd & Mousilli tells The Toy Book. “We must — and I am confident that we will — prevail against Toys ‘R’ Us in its malicious tactics of burying small businesses in protracted litigation based on frivolous and overreaching trademark claims.”

And the tactics being used by Tru Kids brands are under scrutiny by the court itself.

Judge Eskridge says in his order that “substantial question exists regarding whether Tru Kids has initiated this action primarily for the purpose of harassing or maliciously injuring a competitor, and whether it is using the law’s procedures only for legitimate purposes.”

Tru Kids Brands was ordered “to provide by Sept. 13, 2022, an iteration of all actions it has initiated against any defendant worldwide since acquiring its interest in the Toys ‘R’ Us brand in January 2019, wherein it has alleged claims, as here, of trademark and trade-dress infringement, trademark dilution, unfair competition, or unjust enrichment relating to Toys ‘R’ Us intellectual property,” Judge Eskridge declared.

Attorneys for Tru Kids Brands did file documents to meet the Sept. 13 deadline but they did so in a sealed filing. Ahead of the deadline, The Toy Book reached out to WHP Global/Tru Kids Brands on Sept. 12, but the company did not respond to a request for comment.

While the legal dance continues to play out in court, Toys “R” Us is continuing to open its new store-within-a-store concepts in every Macy’s store ahead of an Oct. 15 completion date. Both the Galleria in Houston and the Westfield Garden State Plaza in New Jersey have Macy’s stores that are set to include Toys “R” Us departments.

Although Toys & Beyond closed its store in New Jersey, the space is currently occupied by yet another toy store: CAMP.

September 8, 2022

Instafuel Press Release in Response to Texas Supreme Court Order

Established in 2015 and founded by two young, creative entrepreneurs, Instafuel is an innovativecompany that delivers fuel directly to customer vehicles, eliminating the need for consumers tospend time at gas stations. While there are a number of competitors in the mobile fuel deliveryindustry, Instafuel has successfully differentiated themselves by taking several measures to createa unique business model.

Similarly, Booster Fuels is a mobile fueling company that began with an initial business model ofdelivering fuel to single customers. However, recently, Booster Fuels pivoted its business modelto more closely mirror Instafuel’s practices of delivering fuel to commercial fleets.

In 2015, Instafuel engaged with an investment entity interested in a potential businesspartnership. This partnership included the disclosure of trade secrets and confidential informationpertaining to Instafuel’s business model and company practices. In 2019, it was later discoveredthat these investors were strategic investors with Booster Fuels.

After further review, an internal audit and competitive analysis of Booster Fuels’ business modelwas conducted by Instafuel, only to discover that Booster Fuels implemented Instafuel’s sensitiveand confidential information directly into their own business model. This would allow BoosterFuels to secure funding faster and expand into competitive markets ahead of Instafuel.

Shortly after Instafuel filed suit against Booster Fuels in late 2019, Booster Fuels moved to dismiss the claims based on Texas’s Anti-SLAPP statute. In motions filed with the trial court, Booster Fuelsclaimed Instafuel’s suit should be dismissed because it was filed “with the intent to impedeBooster Fuels’ exercise of its First Amendment rights, specifically its rights to freely associate andfreely speak with whomever it so chooses...”

In responding to Booster Fuels motion to dismiss, Instafuel asserted that communicationsbetween co-conspirators to steal confidential and proprietary information was not the kind ofspeech protected by the First Amendment.

The trial court found in favor of Instafuel and denied Booster Fuels’ motion to dismiss. BoosterFuels then immediately filed an interlocutory appeal, effectively staying the entire case. After twoyears, on January 11, 2022, the Fourteenth Court of Appeals issued a decision affirming the trialcourt’s denial of Booster Fuels’ motion to dismiss.

Discontent with the appellate court’s ruling against it, Booster Fuels appealed the appellatecourt’s decision to the Supreme Court of Texas on March 28, 2022.

The latest ruling from the Texas Supreme Court on August 2, 2022 comes as a huge relief toInstafuel’s Co-Founder, Wisam Nahhas. “This has been a very long process and Booster Fuels hastried their best to constantly delay our lawsuit. We hope to see an end to their delay tactics andhope we can get the justice Instafuel deserves.”

Litigation Partner, Lema Barazi, serves as lead counsel in this matter with Feras Mousilli serving as strategic counsel. Llyod & Mousilli is proud to serve as counsel for companies like Instafuel to prevail against egregious and predatory business practices.

Lloyd & Mousilli is a boutique firm specializing in trademark, copyright, trade secret, and patentlitigation and transactional matters and represents numerous startups around the world.

“We are proud to be the law firm clients call on when David is bullied by Goliath-sized companies.Our expertise in intellectual property matters rivals the best in the nation and we arestaunch advocates of protecting small businesses,” said Feras Mousilli, managing partner atLloyd & Mousilli.