Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 1 of 27 1 2 3 4 Martin R. Galbut (#002943) Michaile J. Berg (#027166) GALBUT & GALBUT, P.C. 2425 East Camelback Road, Suite 1020 Phoenix, Arizona 85016 Phone: 602.955.1455 Fax: 602.955.1585 docket@galbutlaw.com 5 6 7 8 9 10 Kenneth L. Doroshow (D.C. Bar # 429044) Jonathan A. Langlinais (D.C. Bar # 1046832) JENNER & BLOCK LLP 1099 New York Avenue NW, Suite 900 Washington, DC 20001 Phone: 202.639.6000 Fax: 202.639.6066 KDoroshow@jenner.com JALanglinais@jenner.com Pro Hac Vice Pending Counsel for Plaintiff Nintendo of America Inc. 11 12 13 IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA 14 15 16 17 18 19 20 21 22 Nintendo of America Inc., a Washington Case No. Corporation, COMPLAINT Plaintiff, (Copyright Infringement; Trademark Infringement; and Unfair Competition) v. Jacob Mathias and Mathias Designs, L.L.C., d/b/a www.LoveROMs.com and www.LoveRETRO.co, Defendants. 23 24 25 26 PRELIMINARY STATEMENT Plaintiff Nintendo of America Inc. (“NOA” or “Nintendo”), by and through its counsel, on personal knowledge as to its own actions and on information and belief as to 27 28 the actions, capabilities, statuses, and motivations of others, hereby alleges as follows: Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 2 of 27 1 2 3 1. Defendants Jacob Mathias and Mathias Designs, L.L.C. own and operate two interrelated websites—www.LoveROMs.com (the “LoveROMs website”) and www.LoveRETRO.co (the “LoveRETRO website”)—that are built almost entirely on the 4 5 brazen and mass-scale infringement of Nintendo’s intellectual property rights. 6 LoveROMs and LoveRETRO websites are among the most open and notorious online 7 The hubs for pirated video games. Through the LoveROMs and LoveRETRO websites, 8 9 Defendants reproduce, distribute, publicly perform and display a staggering number of 10 unauthorized copies of Nintendo’s video games, all without Nintendo’s permission. This 11 includes thousands of games developed for nearly every video game system Nintendo has 12 13 14 15 16 ever produced. 2. In addition to Nintendo’s video games, Defendants reproduce, distribute, and publicly perform a vast library of Nintendo’s other copyrighted works on and through the LoveROMs and LoveRETRO websites, including the proprietary BIOS 17 18 software for several of Nintendo’s video game systems and thousands of Nintendo’s 19 copyrighted musical works and audio recordings. Defendants also make extensive use of 20 Nintendo’s registered trademarks, including the Nintendo logo and the most recognizable 21 22 23 24 Nintendo video game characters, to encourage visitors to download and play unauthorized copies of Nintendo’s copyrighted works. 3. Defendants have conducted their online piracy business in willful disregard 25 26 of Nintendo’s rights. Defendants are not casual gamers but are instead sophisticated 27 parties with extensive knowledge of Nintendo’s intellectual property and the video game 28 industry more generally. Defendants know or should know that Nintendo owns the 2 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 3 of 27 1 copyrights and registered trademarks for thousands of video games, related copyrighted 2 works, and images that appear on Defendants’ illicit websites. Defendants know or 3 should know that they are trafficking in pirated copies and making unauthorized use of 4 5 Nintendo’s video games, other copyrighted works, and registered trademarks. And they 6 know or should know that Nintendo continues to produce, market, and sell many of the 7 video games that appear on the LoveROMs and LoveRETRO websites. Yet Defendants 8 9 continue willfully to infringe Nintendo’s highly valuable intellectual property rights and, 10 in the process, to enrich themselves through, among other things, donation requests and 11 the sale of advertising space on the LoveROMs and LoveRETRO websites. 12 4. 13 Defendants’ unauthorized reproduction, distribution, display, and 14 performance of Nintendo’s copyrighted video games and related works and their 15 unauthorized use of Nintendo’s registered trademarks has damaged Nintendo, infringes 16 and threatens irreparable injury to Nintendo’s intellectual property rights, and violates the 17 18 Copyright Act, 17 U.S.C. § 101 et seq., and the Lanham Act, 15 U.S.C. § 1051 et seq. 19 Defendants’ willful violations of these statutes entitle Nintendo to the relief sought 20 herein. 21 THE PARTIES 22 23 24 5. Nintendo of America Inc. (“NOA”) is a Washington corporation headquartered in Redmond, Washington. Nintendo of America Inc. is a wholly-owned 25 26 subsidiary of Nintendo Co. Ltd. (“NCL”), a Japanese company headquartered in Kyoto, 27 Japan (collectively, “Nintendo”). NCL develops and manufactures electronic video game 28 systems, video games, accessories, and other copyrighted works. NOA is responsible for 3 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 4 of 27 1 the marketing and sale of Nintendo products in the United States and elsewhere in the 2 Western Hemisphere. NOA is also responsible for enforcing Nintendo’s intellectual 3 property rights in the Western Hemisphere. 4 5 6 7 6. Defendant Jacob Mathias is a natural person who resides in this District. Defendant Jacob Mathias owns or controls the websites located at www.LoveROMs.com and www.LoveRETRO.co, as well as several other domain names that redirect visitors to 8 9 10 11 www.LoveROMs.com, including www.Roms4Droid.com. 7. Defendant Mathias Designs, L.L.C. is an Arizona limited liability company that was first incorporated on February 17, 2016. On their LoveROMS and LoveRETRO 12 13 websites, Defendants describe Mathias Designs, L.L.C. as “DBA LoveROMs” and “dba 14 LoveRetro.co.” 15 8. 16 The articles of organization for Defendant Mathias Designs, L.L.C. list Defendant Jacob Mathias as the company’s sole agent, sole manager, and sole member. 17 18 Defendant Mathias Designs, L.L.C. is simply the alter ego, instrument, or mere business 19 conduit of Defendant Jacob Mathias, who makes inconsistent use of the corporate form in 20 an effort to shield himself from liability for his extensive and flagrant piracy of 21 22 23 24 copyrighted works and infringing use of registered trademarks. 9. Defendants reproduce unauthorized copies of Nintendo video games and related copyrighted works, distribute those copies, perform and display unauthorized 25 26 27 copies of Nintendo video games, and make extensive use of Nintendo’s registered trademarks for their own profit. 28 4 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 5 of 27 JURISDICTION AND VENUE 1 2 3 10. This Court has subject matter jurisdiction over Nintendo’s claims under 28 U.S.C. §§ 1331 (federal question jurisdiction) and 1338(a) (trademark and copyright). 4 5 6 7 11. This Court has personal jurisdiction over the Defendants because the Defendants reside and do business in this District. 12. This District is the proper venue for Nintendo’s claims under 28 U.S.C. §§ 8 9 10 1391(b) and 1400(a) because a substantial part of the infringing acts occurred in this District and because the Defendants reside and may be found in this District. 11 FACTS COMMON TO ALL CLAIMS 12 13 14 15 16 NINTENDO’S INTELLECTUAL PROPERTY AND PRODUCTS 13. “Nintendo” is a famous brand throughout the United States and the world, known by consumers of all ages for its fun and innovative video games, video game systems, and its beloved video game characters. 17 18 19 20 14. For decades, Nintendo has been a leading developer and producer of video games and video game systems. In 1985, Nintendo released the Nintendo Entertainment System or “NES,” which introduced millions of consumers to now-classic games like 21 22 Super Mario Bros., Super Mario Bros. 3, The Legend of Zelda, and Donkey Kong. The 23 NES console also introduced millions of consumers to some of Nintendo’s most beloved 24 characters, including Mario and Luigi, Link, and Samus Aran. Over the ensuing decades, 25 26 27 Nintendo followed up the success of the NES console with the release of such groundbreaking home video game consoles as Super Nintendo Entertainment System (or 28 5 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 6 of 27 1 “SNES”), Nintendo 64 (or “N64”), Nintendo GameCube, Wii, Wii U, and Nintendo 2 Switch. 3 15. In addition to its highly successful home video game consoles, Nintendo 4 5 has long been a market leader in handheld video game systems. In 1989, Nintendo 6 released Game Boy, the first portable, handheld video game system to use 7 interchangeable video game cartridges. The Game Boy family of consoles are one of the 8 9 most successful video game systems ever released and introduced consumers to landmark 10 games like Tetris and Pokémon. Nintendo has continued to lead the video game industry 11 in the design and manufacture of handheld video game systems and games developed for 12 13 14 15 16 those systems, including Game Boy Color, Game Boy Advance, Nintendo DS, and Nintendo 3DS. 16. Nintendo has built its popularity and market success through substantial creative and financial investment in the development of new video games, products, 17 18 intellectual property, as well as in marketing. 19 consumer awareness and goodwill through its commitment to developing and delivering 20 Nintendo has garnered tremendous innovative, fun, and memorable video game systems and games. Nintendo’s video game 21 22 23 24 systems and games are enjoyed by tens of millions of consumers in the United States and abroad. 17. Nintendo continues to produce, market, and sell many of the video games 25 26 originally developed for its earlier video game systems, including NES and SNES. In 27 2016, Nintendo released NES Classic Edition, a miniaturized version of the NES console 28 that features pre-installed copies of many of the most memorable games designed for 6 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 7 of 27 1 NES. In 2017, Nintendo released SNES Classic Edition, a miniaturized version of SNES 2 which also features pre-installed copies of many iconic games designed for SNES. 3 Nintendo continues to produce, market, and sell NES Classic Edition and SNES Classic 4 5 6 7 Edition. 18. Nintendo also continues to produce, market, and sell many of the video games it originally developed for earlier systems digitally through official Nintendo 8 9 online platforms. Through Nintendo’s official online platforms, the Virtual Console and 10 the Nintendo eShop, consumers with a Nintendo Switch, Nintendo 3DS or 2DS handheld 11 or Wii U system can purchase and play hundreds of games originally developed for 12 13 14 15 16 Nintendo systems such as the NES, the SNES, and Game Boy Advance systems. 19. Nintendo has made substantial investments in the development, marketing, and promotion of its innovative products and services. Nintendo has acquired intellectual property and authorizes licensees who create and publish many popular video games 17 18 specifically and exclusively for play on Nintendo’s video game systems. “Nintendo” 19 video games can take years and millions of dollars to develop. 20 20. NOA holds registered copyrights and registered trademarks for various 21 22 Nintendo video games, video game systems, commercial packaging and video game 23 characters, including without limitation those listed in Exhibit A (copyrights) and Exhibit 24 B (trademarks) hereto. 25 26 27 28 7 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 8 of 27 ONLINE PIRACY AND NINTENDO’S EFFORTS TO PROTECT ITS INTELLECTUAL PROPERTY RIGHTS 1 2 3 4 5 21. The popularity of Nintendo’s video games and video game systems has made Nintendo the target of intellectual property pirates, who benefit from Nintendo’s investments and innovation by making and distributing unauthorized copies of Nintendo 6 7 8 9 video games. 22. In the world of video game piracy, unauthorized copies of video games often take the form of read-only memory files or read-only memory images, commonly 10 11 referred to as “ROMs.” The name refers to the process of copying the software that 12 constitutes a video game from the read-only memory found in a game cartridge or disk. 13 These unauthorized copies—or “ROMs”—can be played on computers, phones, and 14 15 other devices through the use of an “emulator,” a piece of software designed to mimic the 16 functionality of a physical video game system like the NES console or Game Boy 17 systems. 18 23. Illegal copying of video game software is an international problem. 19 20 21 22 Nintendo has taken many steps to halt the illegal copying, marketing, sale, and distribution of Nintendo video games designed to be played on Nintendo video game systems. For example, Nintendo employs technological protection measures and digital 23 24 25 26 rights management tools to prevent piracy and supports law enforcement authorities who target Internet piracy around the world. 24. Nintendo’s efforts have included registration of the intellectual property 27 28 rights in and to its video games systems and software in the United States and around the 8 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 9 of 27 1 world. 2 brought around the world to stop individuals and companies from trafficking in pirated 3 In addition, Nintendo protects and enforces its rights through legal actions copies of its video games. 4 DEFENDANTS’ INFRINGING ACTIVITIES 5 6 7 25. On February 2, 2010, Defendant Jacob Mathias posted a video on his personal YouTube page titled “LoveROMs.com—Download ROMs For Your Android 8 9 Devices (Roms4Droid).” In the description of the video, Mathias announced that 10 www.ROMs4Droid.com, a website through which Mathias had been reproducing and 11 distributing unauthorized copies of video games, was “now LoveROMs.” 1 The 12 13 which description, is still available viewers on at 14 https://www.youtube.com/watch?v=9WJFs2w8lyU, 15 download unauthorized copies of videogames from the LoveROMs website and how to 16 instructs online how to play those unauthorized copies on their cell phones. “If you need help getting the games 17 18 to 19 https://www.loveroms.com!” 20 work 26. or anything at all,” Mathias added, “please visit my site, The homepage of Defendants’ LoveROMs website invites visitors to the 21 22 23 site to “Play Retro Games On Your PC, Mac, Or Android Devices” and offers “a simple and intuitive way to download video game ROMs,” as follows: 24 25 26 27 1 28 As of the date of this filing, the website www.Roms4Droid.com redirects to www.LoveROMs.com. 9 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 10 of 27 1 2 3 4 5 6 7 8 9 10 11 27. The LoveROMs website contains and offers to the public a vast library of unauthorized copies of video games, including hundreds of Nintendo video games 12 13 originally designed for nearly every video game system Nintendo has ever produced. 14 This includes Super Mario World, Mario Kart 64, Super Mario Bros 3, Super Mario All- 15 Stars, and without limitation, the copyrighted works listed in Exhibit A. 16 28. Visitors to the LoveROMs website can use the search bar on the website’s 17 18 homepage to search for pirated games or browse through a catalog of pirated games 19 organized by the system for which the games were originally developed: 20 21 22 23 24 25 26 27 28 10 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 11 of 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 29. Once visitors to the LoveROMs website select a particular game, they are 20 21 taken to a dedicated page for that game from which they can download an unauthorized 22 copy of the game or, in many cases, play the game online. These dedicated pages display 23 images of the video games’ original “box art,” many that include Nintendo’s registered 24 copyrights for commercial packaging, and the graphic designs on the video games’ 25 26 packaging, many of which include Nintendo’s registered trademarks (for example, 27 28 11 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 12 of 27 1 images of Mario or the Nintendo logo), including without limitation those listed in 2 Exhibit B: 3 4 5 6 7 8 9 10 11 12 13 14 15 16 30. The LoveROMs website includes a “Best 100” list of the most popular games on the site. The list includes information on each game, including the video game 17 system for which it was developed and the number of times it has been downloaded from 18 the LoveROMs website. As of the date of this filing, all 100 of the games on this list are 19 video games developed for Nintendo’s video game systems, and many are games for 20 21 22 23 which Nintendo owns copyrights and trademarks. Indeed, just the top 10 games on the website alone are works in which Nintendo is a copyright claimant and trademark owner, and these have collectively been downloaded from the LoveROMs website more than 60 24 25 26 27 million times. 31. The LoveROMs website provides a prominent link to the LoveRETRO website. Like the LoveROMs website, Defendants’ LoveRETRO website also contains a 28 12 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 13 of 27 1 vast library of Nintendo’s copyrighted video games that Defendants allow visitors to play 2 on the website for free, without Nintendo’s permission. This includes thousands of 3 Nintendo video games developed for the Game Boy, Game Boy Advance, Game Boy 4 5 Color, NES, Nintendo 64, Nintendo DS, Nintendo Virtual Boy, and SNES systems. By 6 Defendants’ own description, “LoveRETRO aims to provide an easy and user-friendly 7 way to play retro video games online for free”: 8 9 10 11 12 13 14 15 16 17 18 19 20 21 32. As with the LoveROMs website, users of the LoveRETRO website can 22 search for pirated copies of particular games or browse Defendants’ online catalog of 23 games organized by the particular game system for which they were developed: 24 25 26 27 28 13 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 14 of 27 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 33. Defendants also encourage visitors to “check out our top games,” all of which are games designed for play on Nintendo’s game devices, and all but one of which 16 17 are copyrighted works in which Nintendo is a claimant: 18 19 20 21 22 23 24 25 26 27 28 14 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 15 of 27 1 2 3 34. Once a user of the LoveRETRO website has selected a game, he or she is presented with a view screen through which he or she can play the game online at the LoveRETRO website via an emulator that Defendants provide: 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 35. Defendants’ LoveROMs and LoveRETRO websites are rife with unauthorized copies of Nintendo’s registered trademarks, including, without limitation, 22 23 the following: 24 25 26 27 28 15 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 16 of 27 1 2 3 4 5 6 7 8 Defendants’ display of these and other of Nintendo’s trademarked logos is without 9 Nintendo’s authorization or consent, and it implies and confuses consumers into 10 believing that there is some sponsorship, affiliation, or endorsement by Nintendo. 11 12 13 14 36. Defendants are solely responsible for the contents of the LoveROMs and LoveRETRO websites. In particular, Defendants uploaded and continue to upload and maintain the unauthorized copies of Nintendo video games that they make available to 15 16 users on those websites. For example, on October 15, 2015, Defendants promoted the 17 availability of pirated copies of Nintendo’s games with the following announcement to 18 the LoveROMs.com Facebook page: “The complete Nintendo DS Collection has been 19 20 uploaded, 5,000+ ROMs now readily available! Enjoy.” More recently, on January 30, 21 2018, Defendants posted the following announcement to the LoveROMs.com Facebook 22 page: “Direct Nintendo Wii downloads coming soon! We’re also adding some additional 23 titles. Stay tuned.” Indeed, Defendants boast that they are “constantly curating our titles, 24 25 26 27 adding new covers, game information, and creating innovative ways to play online.” 37. In addition to pirated copies of Nintendo’s video games, Defendants also reproduce and distribute unauthorized copies of other of Nintendo’s copyrighted works 28 16 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 17 of 27 1 through the LoveROMs and LoveRETRO websites. This includes the copyrighted BIOS 2 files for the Gameboy Advance, Gameboy Color, and Nintendo DS systems. 2 Defendants 3 also make a vast library of unauthorized copies of Nintendo’s copyrighted musical works 4 5 6 7 available to download through the “Extras” section of the LoveROMs website. 38. As a direct result of Defendants’ infringement of Plaintiffs’ copyrights and trademarks, Defendants’ websites have become enormously popular. The LoveROMs 8 9 website alone receives 17 million visitors each month. Such visitors are drawn to the 10 website by the widespread availability of free, unauthorized copies of Nintendo’s video 11 games and other highly valuable intellectual property. The resulting popularity of 12 13 Defendants’ LoveROMs and LoveRETRO websites has allowed Defendants to reap 14 substantial ill-gotten gains, including through donations and the sale of advertising on the 15 LoveROMs and LoveRETRO websites. 16 CAUSES OF ACTION 17 18 COUNT ONE 19 COPYRIGHT INFRINGEMENT (The Copyright Act, 17 U.S.C. §§ 106 et seq. and § 501) 20 21 22 39. Nintendo incorporates by reference and re-alleges paragraphs 1–38. 40. NOA owns numerous registered copyrights related to Nintendo video 23 24 games, characters, BIOS firmware for Nintendo video game systems, Nintendo musical 25 26 27 28 2 “BIOS” is an acronym for “Basic Input/Output System.” A BIOS file is a piece of proprietary software stored on a memory chip in a video game system’s motherboard. Many emulators used to play unauthorized copies of video games would not work without the BIOS file of the video game system for which the game was originally developed. 17 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 18 of 27 1 compositions and audio recordings. These include, without limitation, the copyrighted 2 works identified in Exhibit A. 3 Nintendo has received Certificates of Copyright Registration from the Register of Copyrights for each of the copyrighted works identified 4 5 in Exhibit A. These copyrights are in full force and effect and are enforceable by 6 Nintendo. 7 41. Through their LoveROMs and LoveRETRO websites, Defendants regularly 8 9 reproduce, distribute, publicly perform and display unauthorized copies of Nintendo 10 video games, commercial packaging, and other copyrighted works, including the 11 copyrighted works identified in Exhibit A, all without Nintendo’s permission. 12 13 14 15 16 42. The foregoing acts of Defendants constitute direct infringement in violation of Nintendo’s exclusive rights in its copyrighted works under 17 U.S.C. § 106. 43. Defendants are also liable under the Copyright Act for inducing the infringing acts of the users of the LoveROMs and LoveRETRO websites. Defendants 17 18 operate the LoveROMs and LoveRETRO websites with the object of promoting their use 19 to infringe Nintendo’s copyrights. 20 44. Defendants are also liable under the Copyright Act as contributory 21 22 infringers for the infringing acts of users of the LoveROMs and LoveRETRO websites. 23 Defendants have actual and constructive knowledge of the infringing activity of users of 24 LoveROMs and LoveRETRO websites and knowingly cause or otherwise materially 25 26 27 28 contribute to those infringements of Nintendo’s copyrights. 45. Defendants are also vicariously liable for the infringing acts of users of the LoveROMs and LoveRETRO websites. Defendants have the right and ability to 18 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 19 of 27 1 supervise and control the infringing activities that occur through the use of their websites, 2 and at all relevant times have derived a direct financial benefit from the infringement of 3 Nintendo’s copyrights. Defendants are therefore vicariously liable for the unauthorized 4 5 reproduction, distribution, public performance, and display of Nintendo’s copyrighted 6 works, including without limitation the copyrighted works listed in Exhibit A hereto. 7 46. The foregoing acts of infringement by Defendants have been willful, 8 9 10 11 intentional, and purposeful, or in reckless disregard of Nintendo’s rights. 47. As a direct and proximate result of Defendants’ infringement of Nintendo’s exclusive rights under Section 106 of the Copyright Act, Nintendo is entitled to damages 12 13 14 15 16 as well as Defendants’ profits under 17 U.S.C. § 504(b). 48. Alternatively, and at Nintendo’s election, Nintendo is entitled to the maximum statutory damages available under 17 U.S.C. § 504(c) in the amount of $150,000 for the infringement of each Nintendo copyrighted work or for such other 17 18 19 20 amount as may be proper under 17 U.S.C. § 504(c). 49. Nintendo is entitled to its attorneys’ fees and full costs pursuant to 17 U.S.C. § 505. 21 22 50. Defendants’ conduct is causing, and unless enjoined and restrained by this 23 Court will continue to cause, Nintendo great and irreparable injury that cannot be fully 24 compensated for or measured in money. Nintendo has no adequate remedy at law. 25 26 27 Under 17 U.S.C. § 502, Nintendo is entitled to a preliminary and permanent injunction prohibiting any further infringement of NOA’s exclusive rights under the Copyright Act. 28 19 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 20 of 27 1 COUNT TWO 2 TRADEMARK INFRINGEMENT (The Lanham Act, 15 U.S.C. §§ 1114 and 1125(a)) 3 4 5 51. Nintendo incorporates by reference and re-alleges paragraphs 1-38. 52. Nintendo owns federal registrations for the trademarks identified in Exhibit 6 7 8 9 B hereto. These registrations are in full force and effect and are enforceable. 53. In connection with Defendants’ unauthorized reproduction, distribution, public performance, and display of Nintendo’s copyrighted works on the LoveROMs and 10 11 LoveRETRO websites, Defendants use Nintendo’s federally registered trademarks 12 throughout these websites, including without limitation the trademarks identified in 13 Exhibit B, to promote their business and to encourage visitors to download or play 14 15 16 17 18 unauthorized copies of Nintendo’s copyrighted works, thereby infringing Nintendo’s registered trademarks. 54. Defendants’ actions constitute use in interstate commerce of a false designation of origin, false or misleading description of fact, or false or misleading 19 20 21 22 representation of fact that is likely to cause confusion or mistake, or to deceive as to the affiliation, connection, or association of the goods and services with Nintendo, or as to the origin, sponsorship, or approval of the goods and services provided by Defendants in 23 24 25 26 violation of Section 43(a) of the Lanham Act, 15 U.S.C. § 1125(a). 55. Defendants’ actions also constitute the use in interstate commerce of a reproduction, counterfeit, copy, or colorable imitation of a registered trademark of 27 28 Nintendo in connection with the sale, offering for sale, distribution, or advertising of 20 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 21 of 27 1 goods or services on or in connection with which such use is likely to cause confusion or 2 mistake, or to deceive, in violation of Section 32 of the Lanham Act, 15 U.S.C. § 1114. 3 56. Defendants knew or should have known of Nintendo’s rights, and 4 5 Defendants’ infringement has been knowing, willful, and deliberate, making this an 6 exceptional case within the meaning of 15 U.S.C. § 1117. 7 57. The infringing acts alleged above have a foreseeable effect on U.S. 8 9 10 11 commerce. 58. Nintendo has been and continues to be damaged by Defendants’ wrongful acts in a manner that cannot be fully measured or compensated in economic terms, and 12 13 14 15 16 Nintendo has no adequate remedy at law. Defendants’ acts have damaged, and threaten to continue to damage, Nintendo’s reputation and goodwill. 59. Defendants’ infringement will continue unless enjoined by the Court. 60. The interests of and links to U.S. commerce are strong in relation to those 17 18 of other nations given that, among other things, enforcement of Nintendo’s rights under 19 the Lanham Act does not conflict with, but rather supports, the interests of other countries 20 in enforcing Nintendo’s similar rights under the laws of those countries, and the 21 22 significance of Defendant’s illegal acts is greatest in the United States because NOA is a 23 U.S. corporation with a general sales territory in the Western Hemisphere, including the 24 United States. 25 26 27 28 21 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 22 of 27 1 COUNT THREE 2 UNFAIR COMPETITION (Arizona Common Law) 3 4 5 61. Nintendo incorporates by reference and re-alleges paragraphs 1–38. 62. Defendants’ conduct constitutes unfair competition that is contrary to 6 7 8 9 honest practice in commercial matters under Arizona common law. Specifically, Defendants have traded on Nintendo’s reputation for quality and integrity in order to pass off their unauthorized copies of Nintendo video games and other copyrighted works to 10 11 12 13 consumers. By advertising these copies as genuine Nintendo products, Defendants have actively misled consumers about the true source of these copies. 63. Nintendo has suffered injuries as a direct and proximate result of 14 15 16 17 18 Defendants’ unfair competitive activities, and Nintendo is therefore entitled to damages. 64. Because Defendants have acted in willful disregard of Nintendo’s rights, Nintendo is entitled to punitive damages for Defendants’ unfair competitive activities. 65. Defendants’ unfair competitive activities and willful disregard of 19 20 21 22 Nintendo’s rights continue to cause Nintendo great and irreparable injury that cannot be fully compensated for or measured in money. Unless enjoined and restrained by this Court, Defendants will continue to cause Nintendo great and irreparable injury. Nintendo 23 24 25 26 is entitled to a preliminary and permanent injunction prohibiting Defendants from unfairly competing with Nintendo. PRAYER FOR RELIEF 27 28 Nintendo seeks the following relief: 22 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 23 of 27 1 2 3 1. An award of compensatory damages, including consequential and incidental damages, in an amount to be proved at trial. 2. An award of statutory damages as allowed by law, in an amount up to 4 5 $150,000 for the infringement of each Nintendo copyrighted work and up to $2,000,000 6 for the infringement of each Nintendo trademark. 7 3. An award of enhanced damages or profits, whichever is greater, under 8 9 Section 35 of the Lanham Act, 15 U.S.C. § 1117, and as otherwise provided by law. 10 4. An award of attorneys’ fees and costs. 11 5. An award of pre-judgment and post-judgment interest at the maximum rate 12 13 14 15 16 allowed by law. 6. An accounting and an award to Nintendo of Defendants’ profits, gains, or unjust enrichment in an amount to be proven at trial. 7. An accounting of all Defendants’ receipts and disbursements, profit and 17 18 loss statements, advertising revenue, donations and cryptocurrency revenue and other 19 financial materials, statements, and books relating to the operation of the LoveROMs and 20 LoveRETRO websites and Defendants’ reproduction, distribution, public performance 21 22 23 24 and display of Nintendo’s copyrighted works thereon. 8. A preliminary and permanent injunction under 17 U.S.C. §§ 1203 and 502 and 15 U.S.C. § 1116, enjoining Defendants and their agents, servants, and employees, 25 26 and all those in active concert or participation with Defendants, from: 27 28 23 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 24 of 27 1 2 3 a. copying, distributing, selling, performing, displaying, playing, or otherwise using any unauthorized copy of a Nintendo copyrighted work, or any derivative thereof, including those works identified in Exhibit A; 4 5 6 7 b. using, inducing, or enabling others to use any unauthorized reproduction or copy of Nintendo’s copyrighted works, including the works identified in Exhibit A; 8 9 c. constructing, operating, selling, or otherwise providing any product, 10 device, website, or service that contributes to or induces the reproduction, 11 distribution, performance, display, or other use of Nintendo’s copyrighted works, 12 13 14 15 16 including the works identified in Exhibit A; d. using, or inducing or enabling others to use, any reproduction, counterfeit, copy, or colorable imitation of Nintendo’s trademarks, including those trademarks identified in Exhibit B, in any manner in connection with the 17 18 manufacture, printing, distribution, advertising, offering for sale or sale of any 19 goods or services, including the use of Nintendo’s trademarks in connection with a 20 website; 21 22 e. using, or inducing or enabling others to use, Nintendo’s trademarks, 23 including those identified in Exhibit B, or any reproduction, counterfeit, copy, or 24 colorable imitation of said marks in any manner likely to cause others falsely to 25 26 27 believe that Defendants’ products or services are connected with Nintendo or legitimate Nintendo products or services bearing Nintendo’s trademarks when 28 24 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 25 of 27 1 they are not, including the use of Nintendo’s trademarks in connection with a 2 website; 3 f. destroying, transferring, altering, moving, returning, concealing, or 4 5 in any manner secreting any and all unauthorized copies of Nintendo’s 6 copyrighted works and any and all documents and records, including without 7 limitation computer tapes, computer disks, business records, e-mails, social media 8 9 accounts, social media posts, supplier names and addresses, books of accounts, 10 receipts, and other documentation relating or referring in any way to the 11 distribution, provision, use, or otherwise trafficking in unauthorized copies of 12 13 Nintendo’s copyrighted works; and g. 14 15 16 9. unfairly competing with Nintendo. Preliminary and permanent injunctive relief, such as may later be requested before or at trial, requiring Defendants and all persons or entities in active concert or 17 18 participation with Defendants, immediately to: 19 20 a. identify every one of the Defendants’ suppliers and sources of unauthorized copies of Nintendo’s copyrighted works; and 21 b. 22 take steps to ensure that all unauthorized copies of Nintendo’s 23 copyrighted works in Defendants’ possession, custody, or control or that are in 24 shipment to Defendants are immediately seized, inspected, and delivered into 25 26 27 28 Nintendo’s possession. 10. An Order pursuant to 17 U.S.C. §§ 1203 and 503 and 15 U.S.C. § 1116 providing for the seizure, impoundment, and destruction of all unauthorized copies of 25 Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 26 of 27 1 2 3 Nintendo’s copyrighted works in Defendants’ custody, possession or control. 11. An Order requiring Defendants to file with the Court and serve upon Nintendo within ten (10) days after the issuance of any injunction a written report, under 4 5 oath, setting forth in detail the manner and form in which Defendants have complied with 6 the injunction. 7 12. An Order transferring to Nintendo the domain names 8 9 www.LoveROMS.com, www.LoveRETRO.co, www.Roms4Droid.com, and any other 10 domain names in Defendants’ possession, custody, or control that redirect to these sites 11 or that are in any way connected to the unauthorized reproduction, distribution, public 12 13 performance, display, or other use of Nintendo’s copyright works. 14 13. 15 RESPECTFULLY SUBMITTED this 19th day of July, 2018. 16 Such other relief as the Court deems just and proper. GALBUT & GALBUT, P.C. 17 18 By: 19 20 21 /s/ Martin R. Galbut Martin R. Galbut, Esq. Michaile J. Berg, Esq. JENNER & BLOCK LLP 22 23 By: 24 25 26 27 28 26 /s/ Kenneth L. Doroshow Kenneth L. Doroshow, Esq. Jonathan A. Langlinais, Esq. Case 2:18-cv-02282-SPL Document 1 Filed 07/19/18 Page 27 of 27 NOTICE OF ELECTRONIC FILING 1 2 3 I hereby certify that on July 19, 2018, I electronically filed the foregoing with the Clerk of Court for filing and uploading to the CM/ECF system which will send 4 5 notification of such filing to all parties of record. 6 7 /s/ N. Sunshine Nye 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 27