Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 1 of 22 Page ID #:1 1 MARC E. MAYER (SBN 190969) mem@msk.com 2 KARIN G. PAGNANELLI (SBN 174763) kgp@msk.com 3 DANIEL A. KOHLER (SBN 285501) dxk@msk.com 4 MITCHELL SILBERBERG & KNUPP LLP 11377 West Olympic Boulevard 5 Los Angeles, California 90064-1683 Telephone: (310) 312-2000 6 Facsimile: (310) 312-3100 7 Attorneys for Plaintiff Riot Games, Inc. 8 9 UNITED STATES DISTRICT COURT 10 CENTRAL DISTRICT OF CALIFORNIA 11 12 RIOT GAMES, INC., a Delaware Corporation, 13 Plaintiff, 14 v. 15 STEFAN DELGADO ARGOTE a/k/a 16 “Ohm” and “Burberry”; MATTHIAS OLTMANN a/k/a “Joduskame,” 17 “Rolle3k,” and “Sheppard”; TYRONE TOM PAUER a/k/a “Beaving”; 18 CHACHANI MISTI Y PICHU PICHU S.R.L., a company organized under the 19 laws of Peru; and DOES 1-10, inclusive, 20 Defendants. 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 28 CASE NO. 2:16-cv-5871 COMPLAINT FOR: (1) TRAFFICKING IN CIRCUMVENTION DEVICES (2) INTENTIONAL INTERFERENCE WITH CONTRACTUAL RELATIONS (3) UNFAIR COMPETITION [DEMAND FOR JURY TRIAL] Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 2 of 22 Page ID #:2 1 Riot Games, Inc. (“Riot”) alleges as follows: 2 3 4 PRELIMINARY STATEMENT 1. Riot develops and publishes the immensely popular video game titled 5 “League of Legends” (“LoL”). LoL is one of the most popular games in the world 6 and is a leader in the world of “eSports” (i.e., video games that are played 7 competitively at a professional level). Millions of players around the globe 8 compete in LoL each day, many of whom belong to professional or semi9 professional teams and compete in sanctioned LoL tournaments, often for large 10 monetary prizes. More than 67 million people (both casual players and serious 11 competitors) play LoL each month, many of whom dedicate hundreds or thousands 12 of hours to developing their skills and competing against other players around the 13 world. 14 2. Riot’s greatest asset is its strong community of dedicated LoL players, 15 and Riot strives each day to maintain its reputation as “the most player-focused 16 game company in the world.” Riot thus invests enormous time, money, and effort 17 into ensuring that all of its players have a positive, fun, competitive, and fair 18 experience each time they play LoL. By this Complaint, Riot seeks to put a stop to 19 a commercial enterprise that is dedicated to destroying the LoL player experience, 20 harming the LoL community, and subverting Riot’s game (and its community) for 21 its own profit. 22 3. Defendants (and those working in concert with them) operate a 23 cheating service called “LeagueSharp” (“L#”). L# is a service and software 24 product that is specifically designed to enable a subset of LoL players who do not 25 wish to play fair to gain substantial unfair advantages over legitimate players (in 26 other words, to cheat). Among other things, L# enables its users to abuse LoL by 27 allowing them to, for example, see hidden information; “automate” gameplay to Mitchell Silberberg & Knupp LLP 28 1 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 3 of 22 Page ID #:3 1 perform in the game with enhanced or inhuman accuracy; and accumulate levels, 2 experience, and items at a rate that is not possible for a normal human player. 3 4. L# represents an enormous threat to LoL and is causing serious and 4 irreparable harm to Riot and its valuable player community. It is absolutely 5 imperative to Riot and to the future of LoL that the game provides to its players a 6 fair, competitive, and enjoyable environment that rewards its players’ skill and 7 experience. By enabling some LoL players to cheat in the game or to automate 8 their performance, L# disrupts (and threatens to destroy) Riot’s carefully crafted 9 gameplay, and ruins the game experience for players that take the game seriously 10 and who wish to play fair. 11 5. Defendants’ conduct is willful, deliberate, and malicious and is 12 designed to harm Riot and its player community. Tellingly, Defendants’ slogan, 13 which is displayed on the L# website, their Twitter feed, and their Facebook page, 14 advertises L# as “GAMEBREAKING.” Defendants also have engaged in repeated 15 attacks on Riot’s game servers, have counseled their customers about how to cheat 16 in LoL without being caught, and have advised customers to fraudulently dispute 17 their in-game LoL transactions. Riot initially attempted to resolve this dispute 18 without litigation, including by informally reaching out to Defendants to ask them 19 to cease their activities. Defendants refused to respond. Then, Defendants or those 20 working in concert with them disseminated personal and non-public information 21 about a Riot employee, threatened that employee, and posted offensive comments 22 on the employee’s social media. Additionally, knowing that this lawsuit was 23 imminent, Defendants have been quickly and carefully destroying or concealing 24 evidence such as their most incriminating online posts and purporting to hide 25 behind a Peruvian shell corporation created solely for the purpose of evading 26 liability. 27 Mitchell Silberberg & Knupp LLP 6. As set forth herein, Defendants have engaged in numerous unlawful 28 acts under United States law. Defendants have violated Section 1201 of the Digital 2 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 4 of 22 Page ID #:4 1 Millennium Copyright Act (“DMCA”), 17 U.S.C. § 1201(a)(2), by selling, 2 importing, offering, providing, and otherwise trafficking in technologies that 3 circumvent or evade Riot’s sophisticated anti-cheat software. Defendants also 4 have knowingly and intentionally induced thousands or tens of thousands of Riot 5 players in the United States to breach Riot’s Terms of Use, which explicitly 6 prohibits the precise type of cheating that L# enables. Defendants not only know 7 that their conduct is unlawful, but they engage in that conduct with the deliberate 8 intent to harm Riot and its community. 9 7. Riot is entitled to monetary damages, injunctive and other equitable 10 relief, and punitive damages against Defendants. 11 JURISDICTION AND VENUE 12 13 8. This is a civil action seeking damages, injunctive relief, and other 14 equitable relief, under the anti-circumvention provisions of the DMCA, 17 U.S.C. 15 § 1201, and under the laws of the State of California. 16 9. This Court has subject matter jurisdiction over Riot’s claims for 17 violation of the DMCA pursuant to 28 U.S.C. §§ 1331 and 1338(a). Pursuant to 18 28 U.S.C. § 1367, this Court has supplemental jurisdiction over Riot’s state law 19 claims for intentional interference with contract and unfair competition, which are 20 so related to Riot’s claims under the DMCA as to be part of the same case or 21 controversy. Additionally, this Court has subject matter jurisdiction pursuant to 28 22 U.S.C. § 1332 because the amount in controversy exceeds the sum or value of 23 $75,000, and the action is between a California citizen and citizens of a foreign 24 jurisdiction. 25 10. This Court has personal jurisdiction over Defendants because they 26 have purposefully directed their activities at the United States, and at California in 27 particular, have purposefully availed themselves of the benefits of doing business Mitchell Silberberg & Knupp LLP 28 3 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 5 of 22 Page ID #:5 1 in California, and have established a continuing presence in California. Riot is 2 informed and believes, and on that basis alleges, that, without limitation: 3 (a) Defendants conduct extensive and ongoing business with users in the 4 United States and the State of California; 5 (b) Defendants distribute L# in the United States and the State of 6 California, advertise and market L# in the United States and the State of California, 7 and communicate directly with users in the State of California, including for the 8 purposes of soliciting purchases of L# by such users and providing technical 9 support for L#; 10 (c) Defendants have directed their unlawful activities at Riot, knowing 11 and intending that Riot would be harmed by their conduct in the United States and 12 primarily in the State of California, where Riot has its principal place of business 13 (in fact, Defendants specifically advertise their products as being made for Riot’s 14 game); 15 (d) Defendants have entered into, and continue to enter into, hundreds or 16 thousands of contracts with individuals in the United States and in the State of 17 California, including contracts pursuant to which such individuals license from 18 Defendants the right to install and use L#. In return for such licenses, Defendants 19 receive ongoing recurring monthly payments from individuals in the United States 20 and the State of California. 21 11. Venue is proper in this District pursuant to 28 U.S.C. § 1391(b) 22 because this is a judicial district in which a substantial part of the events giving rise 23 to the claims occurred, and/or in which Riot suffered injury. 24 THE PARTIES 25 26 12. Riot is a corporation duly organized and existing under the laws of the 27 State of Delaware, with its principal place of business in Los Angeles, California. Mitchell Silberberg & Knupp LLP 28 4 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 6 of 22 Page ID #:6 1 Riot is the publisher and owner of all right, title, and interest in the immensely 2 popular computer game “League of Legends.” 3 13. Riot is informed and believes, and on that basis alleges, that 4 Defendant Matthias Oltmann a/k/a “Joduskame” is an individual residing in 5 Grossenkneten, Germany and/or Oldenburg, Germany. Riot is informed and 6 believes that Oltmann is a primary developer of L#. Riot is informed and believes 7 that Oltmann has used a variety of aliases, including “Rolle3k” and “Sheppard.” 8 14. Riot is informed and believes, and on that basis alleges, that 9 Defendant Stefan Delgado Argote a/k/a “Ohm” is an individual residing in 10 Wiesbaden, Germany. Riot is informed and believes that Delgado Argote is a 11 central administrator of L# and the L# Website, and is responsible (along with 12 Oltmann) for organizing and maintaining certain fictitious corporate entities 13 through which he and those working in concert with him conduct L# business. 14 15. Riot is informed and believes, and on that basis alleges, that 15 Defendant Tyrone “Tom” Pauer a/k/a “Beaving” is an individual residing in 16 Lünen, Germany. Riot is informed and believes that Pauer is an administrator of 17 L#, is involved in L# community management and website maintenance and 18 administration, and may be an author of the L# software and codebase. Oltmann, 19 Delgado Argote, and Pauer hereafter sometimes are referred to as the “Individual 20 Defendants.” 21 16. Defendant Chachani Misti y Pichu Pichu S.R.L. (“Chachani”) is a 22 company organized under the laws of Peru with its purported address at Avenida 23 Siglo XX nr 110-C, third floor, office 302, Arequipa, 040101, Peru. Defendants 24 have claimed that Chachani owns the copyright in the L# software. Riot is 25 informed and believes, and on that basis alleges, that Chachani is, in fact, a 26 company created by the Individual Defendants for the purpose of attempting to 27 shield themselves from liability for their unlawful conduct. Riot is informed and Mitchell Silberberg & Knupp LLP 28 believes that Defendants own and control all aspects of Chachani, operate the 5 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 7 of 22 Page ID #:7 1 company from their homes, and have not sufficiently capitalized the company or 2 observed corporate formalities. 3 17. Riot is informed and believes, and on that basis alleges, that, at all 4 times herein mentioned, there existed a unity of interest and ownership between the 5 Individual Defendants, on the one hand, and Chachani, on the other, such that any 6 individuality or separateness between them ceased. The Individual Defendants 7 were and are the alter egos of Chachani and, at all times herein mentioned, 8 Chachani has been the mere shell, instrumentality, and conduit through which the 9 Individual Defendants have carried on business, exercising complete control over 10 Chachani to the extent that any individuality or separateness of Chachani does not 11 exist. 12 18. The true names and capacities, whether individual, corporate, 13 associate, or otherwise, of the defendants sued herein as Does 1-10 inclusive, are 14 unknown to Riot, which has therefore sued said defendants by such fictitious 15 names. These defendants may include individuals whose real identities are not yet 16 known to Riot, but who are acting in concert with one another, often in the guise of 17 Internet aliases, in committing the unlawful acts alleged herein. Riot will seek 18 leave to amend this complaint to state their true names and capacities once said 19 defendants’ identities and capacities are ascertained. Riot is informed and 20 believes, and on that basis alleges, that all defendants sued herein are liable to Riot 21 as a result of their participation in all or some of the acts set forth in this complaint. 22 (All of the aforementioned defendants collectively are referred to herein as 23 “Defendants.”). 24 19. Riot is informed and believes, and on that basis alleges, that at all 25 times mentioned in this complaint, each of the Defendants was the agent of each of 26 the other Defendants and, in doing the things alleged in this complaint, was acting 27 within the course and scope of such agency. Mitchell Silberberg & Knupp LLP 28 6 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 8 of 22 Page ID #:8 1 FACTS APPLICABLE TO ALL CLAIMS 2 Riot and “League of Legends” 3 20. Riot is a game developer and publisher located in Los Angeles, 4 California, best known for the enormously popular game “League of Legends.” 5 Riot, with its partners and affiliates, develops, publishes, markets, advertises, 6 distributes, maintains, and services LoL in numerous countries throughout the 7 world. Riot owns valid registered copyrights in LoL. 8 21. LoL is a fast-paced, highly competitive online game. In LoL, two 9 teams of powerful champions, each with a unique design and playstyle, battle 10 head-to-head across multiple computer-generated battlefields and in a variety of 11 game modes and types. LoL blends the speed and intensity of a “real-time” 12 strategy game with elements of fantasy role-playing and character development. 13 22. As they compete in online LoL matches, players advance in the 14 game’s online leaderboards (which ranks players by skill level) and are rewarded 15 with points that enable them to acquire access to additional content. Many LoL 16 players view the game as a serious hobby and sport and invest hundreds or 17 thousands of hours to playing LoL in order to improve their skills, enhance their 18 characters, and rise in the in-game rankings. Riot has organized and held large19 scale LoL tournaments, some of which are televised or broadcast online, played by 20 professional eSports athletes, and attract large crowds. But even casual players 21 enjoy playing LoL and feel a sense of satisfaction when they win a friendly match 22 and rise in the rankings. Riot takes pride in offering a fun and engaging experience 23 for players of all skill levels. 24 23. LoL is a game that is free to play. To play LoL, a player need only 25 register an account with Riot, free of charge. Via its in-game store, Riot gives 26 players the opportunity to voluntarily pay to unlock and use additional content in 27 the game, such as new champions or more personalized aesthetic features (e.g., Mitchell Silberberg & Knupp LLP 28 “skins”) for existing champions. This content enhances player engagement with, 7 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 9 of 22 Page ID #:9 1 and interest in, the LoL community. 2 24. The success of LoL depends on Riot’s ability to ensure a consistently 3 engaging and compelling gaming experience for players. As such, Riot goes to 4 great lengths to monitor, balance, and refine the game. Riot develops and releases 5 content patches, fixes, and tweaks on a regular and ongoing basis. These content 6 patches and fixes may include changes to game rules or regulations, “buffs” (i.e., 7 making a champion stronger), “nerfs” (i.e., making a champion less powerful), 8 modifications to champion abilities and/or in-game items to help maintain 9 competitive balance, or bug fixes. Riot also regularly upgrades its server 10 infrastructure to ensure a smooth and consistent online experience for all players. 11 Riot invests thousands of hours and millions of dollars in these ongoing efforts to 12 ensure that LoL remains fair and fun. 13 25. The importance of maintaining game balance and fairness for players 14 cannot be overestimated. Because LoL is a competitive game, any perception that 15 a player may be cheating or have an unfair advantage results in players becoming 16 frustrated or alienated and potentially leaving the LoL community. Should such 17 perception become widespread, it could destroy or severely impair the game as a 18 whole, since LoL relies on the existence of an active and engaged player 19 community. If players lose interest in LoL, Riot also will be unable to recoup the 20 enormous expense it incurs in maintaining and servicing the game. 21 22 Riot’s Ongoing Efforts To Protect “League of Legends” And Its Player 23 Community From Hackers And Cheaters 24 26. The gaming experience of legitimate LoL players is under near 25 constant attack by cheaters, hackers, scammers, and other wrongdoers seeking to 26 exploit LoL for their own illegitimate ends or to ruin the game for others. In order 27 to protect the game experience, keep the game fair and balanced, and thwart Mitchell Silberberg & Knupp LLP 28 8 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 10 of 22 Page ID #:10 1 would-be hackers, Riot has adopted a combination of technical and contractual 2 measures. 3 Riot’s Technical Security Measures 4 5 27. Hackers use a variety of techniques to alter and manipulate online 6 games. For example, a hacker may locate important locations in a computer’s 7 memory, alter the computer code (i.e. the “instructions”) being processed at these 8 memory locations, and/or inject new or additional code or “scripts” into the 9 computer’s memory. By doing so, hackers cause the game to operate in a manner 10 that ordinarily is restricted by the game software. Hackers also may intercept and 11 manipulate data “packets” transmitted between Riot’s servers and players in an 12 online game. These packets communicate important gameplay information. Code 13 injection and packet manipulation are just two of the methods used by hackers. In 14 order to protect its games from unauthorized hacking and cheating using these 15 methods and others, Riot developed and employs a number of technical security 16 protections. 17 28. First, Riot developed and includes within LoL an anti-hacking and 18 anti-cheating software module (the “LoL Anti-Cheat Software”). The LoL Anti19 Cheat Software is a sophisticated and highly effective technical solution that 20 prevents players from engaging in a variety of prohibited hacking activities, 21 running software programs or cheats, and using unlicensed copies of LoL. The 22 LoL Anti-Cheat Software accomplishes this by, among other methods, checking 23 for the presence of third-party programs that facilitate cheating or any other 24 prohibited modification to the LoL software. If the LoL Anti-Cheat Software 25 detects that a player is using a prohibited program or modifying the LoL software, 26 his or her access to Riot’s games and services is revoked and Riot may 27 permanently suspend the player’s Riot account. Mitchell Silberberg & Knupp LLP 28 9 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 11 of 22 Page ID #:11 1 29. The LoL Anti-Cheat Software is effective at detecting and revoking 2 the access of any player found to be tampering with LoL. Thus, in order for a 3 player to employ hacking or cheating software, such as the L# software, that 4 software necessarily must be designed to circumvent, avoid, disable, or evade these 5 systems. Riot has expended significant resources (both monetary and human) 6 developing and maintaining the LoL Anti-Cheat Software and ensuring it is 7 effective. Since hackers and cheaters regularly attempt to circumvent, disable, or 8 avoid the LoL Anti-Cheat Software, Riot must regularly update and improve that 9 software. 10 30. Second, Riot employs the use of encryption technology to protect the 11 LoL software client and the communication protocol through which online game 12 data is transmitted from hackers. Without engaging in decryption activity, a 13 hacker cannot locate the software elements, data, or memory locations necessary to 14 manipulate gameplay. 15 Riot’s Contractual Protection Of “League of Legends” 16 17 31. In order to access, download, or play LoL, players must create and 18 register a free Riot account. As part of the account creation process, the player 19 must expressly manifest his or her assent to the LoL “Terms of Use” (the “TOU”). 20 The entire text of the TOU is displayed to a player at the time he or she is asked to 21 assent to its terms. Riot also makes the TOU permanently available on Riot’s 22 website. If the player declines to assent to the TOU, he or she will be unable to 23 create an account and will not be able to play LoL. 24 32. The TOU provides to the player a limited license to use and enjoy the 25 LoL software, game, and website, subject to certain restrictions. Section 5.1 of the 26 TOU expressly prohibits the player from: 27 Mitchell Silberberg & Knupp LLP 28 Using any unauthorized third party programs, including mods, hacks, cheats, scripts, bots, trainers and 10 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 12 of 22 Page ID #:12 1 automation programs that interact with the [LoL] Software in any way, for any purpose, including any unauthorized third party programs that intercept, emulate, or redirect any communication between the Software and Riot Games and any unauthorized third party programs that collect information about [LoL] by reading areas of memory used by the Software to store information. 2 3 4 5 6 The TOU also prevents players from “[p]laying on another person’s account to 7 ‘boost’ that account’s status or rank.” 8 33. LoL may only be played using Riot’s proprietary online platform. As 9 a result, it is not possible for a player to lawfully obtain access to or play LoL 10 without creating an account and expressly consenting to the TOU. 11 12 13 Defendants And L# 34. Riot is informed and believes, and on that basis alleges, that 14 Defendants are responsible for and oversee all aspects of the L# service, including 15 its development, distribution, marketing, and maintenance. Defendants, including 16 the Individual Defendants, programmed the L# software, designed and operate the 17 website on which the L# service is offered for license and distribution, oversee and 18 administer all finances in connection with the L# service, update the L# software 19 when necessary (including as necessary to defeat Riot’s LoL Anti-Cheat Software), 20 and provide technical support for the L# service. Defendants also regularly post on 21 the L# forums, provide customers with updates on the services, employ individuals 22 who assist with the development of the software, and pay individual freelancers 23 who engage in scripting or coding in connection with the L# service. 24 35. Riot is informed and believes, and on that basis alleges, that each of 25 the Individual Defendants has a long history in the hacking and cheating 26 community and has regularly been involved in malicious or fraudulent computer 27 hacking activities. Oltmann, for example, has been involved in a number of Mitchell Silberberg & Knupp LLP 28 malicious attacks and/or exploits against Riot’s game servers. The Individual 11 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 13 of 22 Page ID #:13 1 Defendants also have been involved in extensive hacking of computer games other 2 than LoL, such as Blizzard Entertainment’s “Diablo 2.” 3 36. Defendants distribute and license L# via the “LeagueSharp” website, 4 located at www.joduska.me (the “L# Website”). Defendants require customers to 5 pay a $15.00 monthly subscription fee to obtain and use the L# service and 6 software. Defendants also offer a “botting service” for $50.00 per month, which 7 permits users to automate multiple accounts simultaneously. The botting service is 8 designed for those users that wish to make money by creating and selling accounts 9 that have been artificially leveled. Riot is informed and believes, and on that basis 10 alleges, that tens of thousands of people currently subscribe to L#, and that 11 Defendants generate hundreds of thousands of dollars each month in connection 12 with L#. 13 37. Defendants advertise and market L# as “a tool for League of Legends 14 which allows the user to inject assemblies or so called LoL scripts into the game.” 15 In basic terms, L# enables users to inject (and thus use) a variety of cheats and 16 hacks in LoL. Among these are hacks that (1) enable a user to see aspects of the 17 game that would normally be hidden (e.g. hidden enemy movements), (2) intercept 18 game actions and respond with inhuman accuracy, (3) cause a user to automatically 19 dodge all incoming spells, damage, and skillshots, and (4) enhance a player’s field 20 of vision. Additionally, L# enables users to fully or partially automate gameplay, 21 thereby enabling users to rapidly “level” their account, gain quick access to in22 game champions and other content, and artificially elevate their position on LoL’s 23 leaderboards. 24 38. Riot is informed and believes, and on that basis alleges, that in order 25 to create L# Defendants downloaded copies of the LoL game client, viewed and 26 manifested their assent to the ToU, and then disassembled, decompiled, or 27 otherwise reverse engineered portions of the LoL client and server software. Mitchell Silberberg & Knupp LLP 28 Additionally, in the ordinary course of LoL’s operation, relevant memory locations 12 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 14 of 22 Page ID #:14 1 are hidden and inaccessible and data packets are encrypted. Riot is informed and 2 believes, and on that basis alleges, that to create L#, Defendants used specialized 3 software to decrypt data packets and obtain access to restricted memory locations. 4 39. In its normal course of operation, the LoL Anti-Cheat Software is 5 designed to, and would, detect the use of the various hacks and cheats enabled by 6 L#. However, Riot is informed and believes, and on that basis alleges, that the L# 7 software circumvents or bypasses the LoL Anti-Cheat Software in a variety of 8 different ways, including by intercepting and falsely responding to checks 9 performed by the LoL Anti-Cheat Software. Defendants regularly update L# to 10 keep pace with improvements in the LoL Anti-Cheat Software. They also notify 11 their customers when the LoL Anti-Cheat software has been updated and when an 12 update to the L# software is necessary. 13 40. L# is an “unauthorized third party program” (and, specifically, is a 14 hack, cheat, bot, and automation program) whose use is strictly prohibited by the 15 TOU. Each and every time that one of Defendants’ customers uses L#, that 16 customer is engaging in a direct violation of the TOU. Defendants’ customers also 17 violate the TOU when they use the L# service to artificially “boost” an account’s 18 ranking or status (whether for purposes of selling the account or otherwise). 19 Because L# is a single-purpose software program and works only with LoL, it 20 cannot be used without violating the TOU. 21 41. Defendants are aware that to use their product their users necessarily 22 must violate the TOU (in fact, Defendants themselves consented to the TOU and 23 are thus knowledgeable as to its terms). Nevertheless, they encourage and induce 24 their customers to engage in continuing and blatant contractual violations. In fact, 25 Defendants advise their customers how to avoid being caught by Riot and, thus, 26 how to secretly engage in ongoing and repeated breaches of the TOU while 27 continuing to use Riot’s product. Mitchell Silberberg & Knupp LLP 28 13 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 15 of 22 Page ID #:15 1 42. Defendants’ conduct is brazen and willful. Defendants are well aware 2 that Riot is the owner of LoL, that L# is designed to circumvent and bypass the 3 LoL Anti-Cheat Software, and that the use of L# is in clear violation of the TOU. 4 Defendants also are well aware that their conduct causes harm to Riot, LoL, and 5 the LoL player community. Notably, they advertise their product as 6 “GAMEBREAKING” and they regularly tout L#’s ability to circumvent the LoL 7 Anti-Cheat Software. Defendants even have counseled their customers in the past 8 on how to avoid being charged for items that they purchased on an account that is 9 suspended, including by recommending that they falsely represent to their credit 10 card companies that they did not make the purchases. When Defendants became 11 aware that this lawsuit was imminent, they deleted these communications, as well 12 as many other communications relating to their unlawful hacking and 13 circumvention activities. 14 The Harm To Riot From Defendants’ Conduct 15 16 43. By their conduct, Defendants knowingly caused and continue to cause 17 serious harm to Riot and its community. Such harm is immediate, massive and 18 irreparable. 19 44. First, Defendants irreparably harm the ability of Riot’s legitimate 20 players to enjoy and participate in LoL. That, in turn, causes those players to grow 21 dissatisfied with LoL, lose interest, and stop playing. Riot is informed and 22 believes, and on that basis alleges, that players have ceased playing LoL, and/or 23 ceased purchasing goods and services (including virtual goods) for LoL as a result 24 of L# and similar cheating software programs. 25 45. Second, Defendants’ conduct has required Riot to spend enormous 26 sums of money (and vast amounts of time) attempting to remediate the damage 27 caused by L#. This includes creating and releasing new versions of the LoL AntiMitchell Silberberg & Knupp LLP 28 Cheat Software, responding to player complaints, employing personnel to police 14 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 16 of 22 Page ID #:16 1 the games to detect the use of hacks and cheats, and terminating the accounts of 2 players who are using hacks and cheats. 3 46. Third, Defendants’ conduct harms Riot’s reputation and results in the 4 loss of player goodwill, in the United States and worldwide. 5 47. Defendants’ conduct has resulted in damage to Riot in an amount to 6 be proven at trial. Unless Defendants are preliminarily or permanently enjoined, 7 Riot will continue to suffer severe harm. 8 9 COUNT I 10 Trafficking In Circumvention Devices 11 48. Riot realleges and incorporates by reference the allegations in 12 paragraphs 1 through 47 as if set forth fully herein. 13 49. LoL, including but not limited to the source code and audiovisual 14 game play environments, is a copyrighted work. 15 50. Riot has incorporated into LoL technological measures that effectively 16 control access to LoL, including access to the dynamic audiovisual elements that 17 comprise LoL. 18 51. L# is comprised of or contains technologies, products, services, 19 devices, components, or parts thereof that primarily are designed or produced for 20 the purpose of circumventing technological measures that effectively control the 21 access to copyrighted works (LoL), and that protect the exclusive rights of the 22 copyright owner (Riot). 23 52. L# (and the portions thereof that circumvent the LoL Anti-Cheat 24 Software) has no commercially significant purpose or use other than to circumvent 25 a technological measure that effectively controls access to a copyrighted work and 26 that protects the exclusive rights of a copyright owner. 27 Mitchell Silberberg & Knupp LLP 53. Defendants market L# in the United States with knowledge of its use 28 to circumvent Riot’s technological access controls. 15 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 17 of 22 Page ID #:17 1 54. As a result of the foregoing, Defendants are offering to the public, 2 providing, or otherwise trafficking in the United States in technology that violates 3 17 U.S.C. § 1201(a)(2). 4 55. Defendants’ acts constituting DMCA violations have been and 5 continue to be performed without the permission, authorization, or consent of Riot. 6 56. Defendants have violated Section 1201 of the DMCA willfully and for 7 private commercial gain. 8 57. Defendants’ conduct has caused damage to Riot and has unjustly 9 enriched Defendants, in an amount to be proven at trial. 10 58. As a result of Defendants’ acts and conduct, Riot has sustained and 11 will continue to sustain substantial, immediate, and irreparable injury, for which 12 there is no adequate remedy at law. Riot is informed and believes, and on that 13 basis alleges, that, unless enjoined and restrained by this Court, Defendants will 14 continue to violate Section 1201 of the DMCA. Riot is entitled to injunctive relief 15 to restrain and enjoin Defendants’ continuing unlawful conduct. 16 59. As a direct and proximate result of Defendants’ conduct, pursuant to 17 17 U.S.C. § 1203(c), Riot is entitled to Defendants’ profits attributable to their 18 violations of 17 U.S.C § 1201. 19 60. Alternatively, Riot is entitled to the maximum statutory damages, 20 pursuant to 17 U.S.C. § 1203(c), in the amount of $25,000 with respect to each 21 violation by Defendants. 22 61. Riot further is entitled to its attorneys’ fees and full costs pursuant to 23 17 U.S.C. § 1203(b). 24 25 COUNT II 26 Intentional Interference With Contractual Relations 27 Mitchell Silberberg & Knupp LLP 62. Riot realleges and incorporates by reference the allegations in 28 paragraphs 1 through 61, as if set forth fully herein. 16 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 18 of 22 Page ID #:18 1 63. Riot’s contracts with its players, including the TOU, are valid and 2 enforceable. 3 64. Riot is informed and believes, and on that basis alleges, that 4 Defendants are aware of the contracts between Riot and its players in the United 5 States, and additionally are aware of the TOU by virtue of their own Riot accounts. 6 Defendants specifically are aware that the TOU prohibits players from using 7 cheats, hacks, bots, or other unauthorized software, and from “boosting” accounts 8 for sale to others. Nevertheless, Defendants intentionally encourage and induce 9 LoL players to purchase and use L#, knowing that the use of L# by Defendants’ 10 customers will breach the TOU. 11 65. By inducing players to breach the TOU, Defendants have intentionally 12 interfered, and continue to interfere, with contracts between Riot and its players. 13 66. As a result of Defendants’ actions, Riot has suffered damage in an 14 amount to be proven at trial, including but not limited to loss of goodwill among 15 players of LoL, diversion of Riot resources to attempt to detect and prevent the use 16 of L#, and loss of profits from players whose accounts Riot has terminated for 17 violation of the TOU. 18 67. As a further result of Defendants’ actions, Defendants have unjustly 19 obtained specifically identifiable property, consisting of all of the proceeds 20 attributable to the sale of L# in the United States, and any other products or 21 services that violate any of Riot’s rights, and any additional property traceable to 22 those proceeds. Those proceeds, which are directly attributable to Defendants’ 23 manipulation and misuse of LoL and intentional interference with Riot’s contracts, 24 rightfully and equitably belong to Riot. 25 68. Defendants’ intentional interference with the contracts between Riot 26 and LoL players entitles Riot to injunctive relief and compensatory damages, the 27 imposition of a constructive trust over Defendants’ wrongfully obtained proceeds, Mitchell Silberberg & Knupp LLP 28 and other available relief. 17 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 19 of 22 Page ID #:19 1 69. Defendants are guilty of oppression, fraud, or malice, and Riot, in 2 addition to its actual damages, by reason thereof, is entitled to recover exemplary 3 and punitive damages against Defendants. 4 5 COUNT III 6 Unfair Competition 7 70. Riot realleges and incorporates by reference the allegations in 8 paragraphs 1 through 69, as if set forth fully herein. 9 71. The acts and conduct of Defendants constitute unfair competition in 10 the United States under California Business & Professions Code § 17200 et seq. 11 and under California common law. 12 72. As a direct and proximate result of Defendants’ unfair competition in 13 the United States, Riot has been damaged, and Defendants have been unjustly 14 enriched, in an amount to be proven at trial for which damages and/or restitution 15 and disgorgement is appropriate. Such damages and/or restitution and 16 disgorgement should include a declaration by this Court that Defendants are 17 constructive trustees for the benefit of Riot, and an order that Defendants convey to 18 Riot the gross receipts received or to be received that are attributable to the sale of 19 L# in the United States. 20 73. Defendants are guilty of oppression, fraud or malice, and Riot, in 21 addition to its actual damages, by reason thereof, is entitled to recover exemplary 22 and punitive damages against Defendants. 23 74. As a result of Defendants’ acts and conduct in the United States, Riot 24 has sustained and will continue to sustain substantial, immediate, and irreparable 25 injury, for which there is no adequate remedy at law. Riot is informed and 26 believes, and on that basis alleges, that unless enjoined and restrained by this 27 Court, Defendants will continue to engage in unfair competition. Pursuant to Mitchell Silberberg & Knupp LLP 28 California Business & Professions Code § 17203, Riot is entitled to temporary, 18 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 20 of 22 Page ID #:20 1 preliminary and permanent injunctions prohibiting further acts of unfair 2 competition. 3 4 PRAYER FOR RELIEF 5 WHEREFORE, Riot prays that this Court enter judgment in its favor on 6 each and every claim for relief set forth above and award it relief, including but not 7 limited to an order: 8 1. Preliminarily and permanently enjoining Defendants, their officers, 9 employees, agents, subsidiaries, representatives, distributors, dealers, members, 10 affiliates, and all persons acting in concert or participation with Defendants from: 11 (i) trafficking in circumvention devices in the United States; (ii) intentionally 12 interfering with Riot’s contracts with players in the United States; and (iii) 13 engaging in unfair competition in the United States. 14 2. Requiring Defendants to shut down L# and any colorable copies 15 thereof, hosted at any domain, address, location, or ISP. 16 3. Requiring Defendants to deliver to Riot all copies of materials that 17 infringe or violate any of Riot’s rights, as described herein. 18 4. Requiring Defendants to provide Riot with an accounting of any and 19 all sales of products or services in the United States that infringe or violate any of 20 Riot’s rights, as described herein. 21 5. Awarding Riot actual or statutory damages pursuant to 17 U.S.C. 22 § 1203(c). 23 6. Awarding Riot its full costs and attorneys’ fees in this action pursuant 24 to 17 U.S.C. § 1203(b) and other applicable laws. 25 7. Awarding Riot exemplary and punitive damages against Defendants 26 on Riot’s second cause of action for intentional interference with contractual 27 relations. Mitchell Silberberg & Knupp LLP 28 19 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 21 of 22 Page ID #:21 1 8. Awarding Riot restitution of Defendants’ unlawful proceeds, 2 including an accounting of any and all sales of L# in the United States, and/or any 3 other products or services that violate any of Riot’s rights described herein. 4 9. Imposing a constructive trust over the proceeds unjustly obtained by 5 Defendants through the sale of L# in the United States, and/or any other products 6 or services that violate any of Riot’s rights described herein. 7 10. Awarding such other and further relief as this Court may deem just 8 and appropriate. 9 10 Dated: August 5, 2016 11 12 13 14 15 MARC E. MAYER KARIN G. PAGNANELLI DANIEL A. KOHLER MITCHELL SILBERBERG & KNUPP LLP By: /s/Marc E. Mayer Marc E. Mayer Attorneys for Plaintiff Riot Games, Inc. 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 28 20 Case 2:16-cv-05871 Document 1 Filed 08/05/16 Page 22 of 22 Page ID #:22 JURY DEMAND 1 2 Plaintiff Riot Games, Inc. hereby demands a trial by jury on all matters and 3 issues so triable. 4 5 Dated: August 5, 2016 6 7 8 9 10 MARC E. MAYER KARIN G. PAGNANELLI DANIEL A. KOHLER MITCHELL SILBERBERG & KNUPP LLP By: /s/Marc E. Mayer Marc E. Mayer Attorneys for Plaintiff Riot Games, Inc. 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Mitchell Silberberg & Knupp LLP 28 21