Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 1 of 10 Page ID #:1 1 2 3 4 5 Robert B. Owens, Esq. (Bar No. 77671) rowens@ogrlaw.com OWENS & GACH RAY 10323 Santa Monica Blvd., Suite #102 Los Angeles, CA 90025 Ph: (310) 553-6611 Fax: (310) 954-9191 6 7 8 9 10 11 12 13 14 15 Craig S. Hilliard, Esq. chilliard@stark-stark.com STARK & STARK, P.C. 993 Lenox Drive, Bldg. Two Lawrenceville, NJ 08648 Ph: (609) 895-7346 Fax: (609) 895-7395 (PRO HAC VICE APPLICATION TO BE FILED) Attorneys for Plaintiffs Mon Cheri Bridals, LLC and Maggie Sottero Designs, LLC 16 17 UNITED STATES DISTRICT COURT 18 CENTRAL DISTRICT OF CALIFORNIA 19 20 MON CHERI BRIDALS, LLC and MAGGIE SOTTERO DESIGNS, LLC, 21 Plaintiffs, 22 23 vs. 24 25 CLOUDFLARE, INC., a Delaware corporation; and DOES 1-10, Inclusive, 26 27 28 Defendants. ) Case No. ) ) COMPLAINT FOR CONTRIBUTORY ) COPYRIGHT INFRINGEMENT ) ) [Demand for Jury Trial] ) ) ) ) ) ) ) ) 1 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 2 of 10 Page ID #:2 1 Plaintiffs, Mon Cheri Bridals, LLC and Maggie Sottero Designs, LLC (collectively 2 “Plaintiffs”) as and for their Complaint against defendant, Cloudflare, Inc., and Does 1-10 3 inclusive, allege the following: JURISDICTION AND VENUE 4 5 1. This is an action seeking damages and equitable relief for contributory 6 copyright infringement. CloudFlare, Inc. is an Internet service provider which is liable for 7 the infringements committed by third-party content providers who have infringed, and are 8 continuing to infringe, the copyrights owned by Plaintiffs in certain images of dress 9 designs. CloudFlare’s liability arises from its failure to terminate the providing of its 10 content delivery services to customers it knows, or has reason to know, is using those 11 services to infringe on Plaintiffs’ copyrights. Plaintiffs have filed hundreds of “takedown 12 notices” with CloudFlare, consistent with the Digital Millenium Copyright Act (DMCA), 13 but CloudFlare has failed and/or refused to respond to those notices by terminating its 14 services to infringers. As such, CloudFlare is liable for the infringements committed by its 15 customers. 16 17 18 19 2. The Court has jurisdiction over this action because it arises under the Copyright Act, 28 U.S.C. § 1338(a). 3. Venue is proper in this District because the Defendant may be found in this District, 28 U.S.C. § 1400(a). PARTIES 20 21 4. Plaintiff, Mon Cheri Bridals, LLC (“Mon Cheri”) is a Delaware limited 22 liability company which maintains its principal place of business at 1018 Whitehead Road 23 Ext., Trenton, New Jersey 08638. 24 5. Plaintiff, Maggie Sottero Designs, LLC (“Maggie Sottero”) is a Utah limited 25 liability company which maintains its principal place of business at 2300 South 1070 West, 26 Salt Lake City, Utah 84119. 27 28 6. Cloudflare, Inc. (“Cloudflare”) is a Delaware corporation which provides a variety of Internet services to clients, including provision of a “content delivery network” 2 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 3 of 10 Page ID #:3 1 that delivers services to hosts of internet websites, including the sites described in this 2 Complaint. 3 7. Plaintiffs have no knowledge of the true names and capacities of the parties 4 sued as Doe Defendants 1-10, inclusive, and therefore sues them using fictitious names. 5 Plaintiffs will amend their Complaint to identify these Doe Defendants specifically if and 6 when their true names and capacities are ascertained. 7 8. On information and belief, through their acts or omissions, Does 1-10 are 8 responsible, along with Cloudflare, for the injuries alleged, and therefore are liable for 9 them. On information and belief, at all times, Cloudflare and Does 1-10 were principals, 10 agents, and representatives of each other, or acting in concert with one another such that 11 the acts or omissions of any of them can be ascribed to the others. BACKGROUND 12 13 9. Plaintiffs are two of the largest manufacturers and wholesalers of wedding 14 dresses and social occasion wear in the United States. Through their own creative design 15 teams, Plaintiffs have developed many of the world’s most unique and original wedding 16 and social occasion dress patterns, and Plaintiffs own the copyrights in and to these 17 designs. 18 10. Plaintiffs also own the copyrights in photographic images of those dress 19 designs. These copyrights are registered with the U.S. Copyright Office. A summary of the 20 registrations is attached hereto as Exhibit “A”. 21 11. The photographic images of Plaintiffs’ dress designs are the lifeblood of 22 Plaintiffs’ advertising and marketing of their dress designs to the consuming public. 23 Plaintiffs invest hundreds of thousands of dollars each year in the development of 24 sophisticated marketing campaigns which involve the engagement of models and 25 photographers and the coordination of expensive photoshoots to capture the appropriate 26 “look” of the campaign for a particular line of dresses. Plaintiffs’ ability to market their 27 unique dress designs to consumers is driven largely by the images of their dresses which 28 appear on their websites and in other marketing materials. 3 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 4 of 10 Page ID #:4 1 12. Plaintiffs, along with other members of the formalwear industry, are the 2 victims of a massive Internet scheme to advertise and sell products using the copyrighted 3 images of their dresses. These Internet websites, including ones serviced by Cloudflare 4 which are the subject of this Complaint, have manufactured, imported, distributed, offered 5 for sale and sold counterfeit goods, including bridal gowns, social occasion dresses, prom 6 dresses and other formalwear using copyrighted images of Plaintiffs’ dresses, they continue 7 to do so to this day. 8 13. Counterfeiting is an illegal business that harms both consumers, who are 9 deceived into believing they are buying genuine goods when they are actually buying 10 counterfeits, as well as brand owners, who are deprived of sales and subject to a loss of 11 goodwill from these low-quality counterfeits bearing their marks. The Internet has made it 12 extraordinarily easy for counterfeiters to conceal that the goods they are selling are fake, 13 hide their true identities and operate under multiple false names and addresses from extra- 14 territorial locations in an attempt to avoid liability. 15 14. The quality formalwear products made by Plaintiffs have been the focus of a 16 concerted, pervasive internet counterfeiting effort originating primarily in China, but 17 whose effects are felt here in the United States. These counterfeit websites target 18 consumers in the United States. Chinese merchants set up their websites to appear to be 19 authorized retailers of genuine formalwear products, even though Plaintiffs’ investigative 20 team has revealed that they are selling counterfeit products and that they are based 21 primarily in China. 22 15. These 'rogue' websites are written in English, accept payment in US dollars 23 and allow payment by PayPal and/or major credit cards. The merchants often perpetuate the 24 illusion that these websites are operated by or under the authority of legitimate 25 manufacturers by using domain names incorporating the manufacturers’ trademarks and 26 copying their original and proprietary marketing images and designs directly from their 27 websites. These websites also use 1-800 numbers as contact information that are only 28 accessible from the United States. 4 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 5 of 10 Page ID #:5 1 16. When the knockoff goods are shipped from China to the United States, they 2 are shipped as single packages and declared as “gifts” rather than commercial shipments, 3 and they pass through U.S. ports without paying a dime in customs duties. So while 4 legitimate businesses in the United States pay their taxes and customs duties on imported 5 goods, illegitimate merchants in China deceive U.S. citizens and cheat the government out 6 of customs duties. 7 17. Consumers are being deceived, believing they are getting 'a good deal' on 8 genuine products rather than buying counterfeit goods. Plaintiffs and other companies in 9 the formalwear industry have received numerous complaints from consumers who reported 10 purchasing what they believed were genuine dresses on these types of authentic-looking 11 websites, only to receive counterfeit dresses of vastly inferior quality. While the China- 12 based websites all claim to be selling genuine products, nothing could be further from the 13 truth. Plaintiffs have purchased a number of dresses from these websites, and each one 14 received to date has been identified as counterfeit. 15 18. Counterfeiters are notoriously difficult to stop. Even when a brand owner 16 challenges the sale of counterfeit goods by requesting that a particular Internet service 17 provider remove or suspend an infringing website, the counterfeiter loses no inventory, 18 retains all of its profits and simply moves that portion of its business to another website, or 19 moves the website to another web host or registrar. It is so simple and inexpensive for a 20 counterfeiter to set up a new domain and move its illegal business to a new site, that 21 conventional efforts to address the problem are ineffectual. 22 19. Plaintiffs are also members of the American Bridal & Prom Industry 23 Association, Inc. (“ABPIA”). ABPIA is a not for profit corporation organized under New 24 Jersey law. ABPIA is organized exclusively as a business league or trade association for 25 the formalwear industry within the meaning of Section 501(c)(6) of the Internal Revenue 26 Code of 1986. The purposes of ABPIA are as follows: 27 28  to take any and all appropriate and lawful action against the marketing and sale of counterfeit formalwear products; 5 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 6 of 10 Page ID #:6  1 to educate consumers, retailers and members of the formal industry and 2 the general public about the harm to consumers and fair competition in the formalwear 3 industry caused by the marketing and sale of counterfeit products;  4 to lobby governmental entities to aid the formalwear industry in the 5 fight against the marketing and sale of counterfeit products; and to conduct discussions 6 among members of the formalwear industry in the fight against the marketing and sale of 7 counterfeit products. 20. 8 In the last five years, ABPIA has successfully prosecuted claims against 9 hundreds of websites who use stolen images of the dresses made by Plaintiffs and others to 10 woo unsuspecting consumers into purchasing knockoff goods. ABPIA has secured default 11 judgments and permanent injunctive relief in the following actions, which relief included 12 the disabling of over 1,500 websites: American Bridal & Prom Industry Association v. 13 Moncherybridal.com et al, Civil Action No. 12-7079 (FLW)(LHG), American Bridal & 14 Prom Industry Association v. Affordablebridaldress.com et al, Civil Action No. 14-2311 15 (AET)(LHG), American Bridal & Prom Industry Association v. Weddingshoparizona.com 16 et al, Civil Action No. 13-4081 (FLW)(LHG), American Bridal & Prom Industry 17 Association v. Chiffondressstore.com et al, Civil Action No. 13-4347 (FLW)(LHG), 18 American Bridal & Prom Industry Association v. Weddingshopevansville.com et al, Civil 19 Action No. 13-5544 (FLW)(LHG), American Bridal & Prom Industry Association v. 20 Loversbridal.com et al, Civil Action No. 14-1570 (FLW)(LHG), American Bridal & Prom 21 Industry Association v. 2016dressforprom.com et al, Civil Action No. 16-8272 22 (AET)(LHG), American Bridal & Prom Industry Association v. Jollyprom.com et al, Civil 23 Action No. 17-2454 (AET)(LHG). 21. 24 Cloudflare contributes to, and thereby enables, the successful efforts of these 25 counterfeit websites to deceive the consuming public and violate the copyrights of 26 Plaintiffs and other members of the formalwear industry. 27 ////// 28 ////// 6 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 7 of 10 Page ID #:7 1 Cloudflare 2 22. Cloudflare, according to www.cloudflare.com, is a “web performance and 3 security company.” Cloudflare says it offers: (1) a content delivery network (“CDN”); (2) 4 web content optimization; (3) website security; (4) DDoS (denial of service) protection; 5 and (5) a managed domain name system (DNS) network. 6 23. Cloudflare further states on its website: “Once your website is a part of the 7 Cloudflare community, its web traffic is routed through our intelligent global network. We 8 automatically optimize the delivery of your web pages so your visitors get the fastest page 9 load times and best performance. We also block threats and limit abusive bots and 10 crawlers from wasting your bandwidth and server resources. 11 powered websites see a significant improvement in performance and a decrease in spam 12 and other attacks.” 13 24. The result: Cloudflare- CloudFlare’s Terms of Service provides that it retains the right to investigate 14 its customers, their sites and “the materials comprising the sites” at any time. The Terms 15 further provide that any violation of law will justify termination of CloudFlare’s services. 16 “CloudFlare’s policy is to investigate violations of these Terms of Service and terminate 17 repeat infringers.” 18 25. Cloudflare’s CDN is a service offered to website hosts and operators. The 19 service is designed to speed a consumer’s access to the website of Cloudflare’s client 20 through a series of data centers maintained by Cloudflare that cache mirror copies of that 21 site. In this manner, consumers seeking to access the website of a Cloudflare client can 22 retrieve the site from the closest Cloudflare data center rather than accessing the site from 23 the primary host. Cloudflare boasts that it maintains dozens of data centers around the 24 world that automatically cache static files of its clients so those files are stored closer to the 25 visitors of the client’s website, while still delivering dynamic content directly from the 26 client’s web server. CloudFlare then uses a technology called Anycast to route visitors to 27 the nearest data center. The result is that a website, on average, loads twice as fast for 28 visitors regardless of where they are located. 7 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 8 of 10 Page ID #:8 1 26. Cloudflare’s service allows counterfeit sites and their hosts to conceal their 2 identity from copyright owners. When presented with a notice of infringement, Cloudflare 3 asserts that it is itself unable or unwilling to remove any infringing content, that it is merely 4 a “pass-through security service” and not a hosting provider, and that the copyright owner 5 must contact its customer to seek removal of the infringing content. In this fashion, 6 Cloudflare shields pirate sites and their hosts from legal recourse by copyright owners. 7 27. Despite Cloudflare’s attempts to distance itself from any meaningful control 8 over the infringing content it knows, or has reason to know, resides on its customers’ 9 websites, Cloudflare’s own website boasts the following: a. 10 “Cloudflare caches your content across our global network, bringing it closer to visitors from every region.” https://www.cloudflare.com/cdn/ 11 b. 12 “A content delivery network (CDN) takes your static content and stores a 13 copy closer to your visitors.” https://www.cloudflare.com/website- 14 optimization/ c. 15 serve web pages and websites.” https://cloudflare.com/terms/ 16 17 Cloudflare’s Service “is offered primarily as a platform to cache and 28. Moreover, Cloudflare expressly reserves the right to modify its clients’ 18 websites. Cloudflare’s Terms of Service give it the right to “modify certain components” 19 of a client’s website, including the addition of scripts, cookies and other changes to 20 enhance performance. 21 29. Cloudflare touts the ease with which its clients can use its services, by telling 22 prospective customers that “Setting Up Cloudflare is Easy,” and it even offers a video 23 showing how a webmaster can place its site on the Cloudflare domain server with a few 24 points and clicks. https://cloudflare.com/. “Set up a domain in less than 5 minutes. Keep 25 your hosting provider. No code changes required.” Id. “Cloudflare makes more than 26 10,000,000 Internet properties faster and safer. Join today!” Id. 27 28 30. benefit Cloudflare further tells its clients that “[e]veryone’s Internet application can from using Cloudflare. Pick a plan that 8 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT fits your needs.” Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 9 of 10 Page ID #:9 1 https://www.cloudflare.com/plans/ 2 websites.” Id. Cloudflare touts a “Pro” plan, $20 per month per domain, for “professional 3 websites,” and a “Business” plan, $200 per month per domain, for “small eCommerce 4 websites and businesses requiring advanced security and performance…” Id. 31. 5 Cloudflare has a teaser “free” plan “[f]or personal Plaintiffs’ authorized agent for infringement notifications, XML Shop LLC 6 d/b/a Counterfeit Technology, has sent thousands of proper DMCA takedown notices to 7 Cloudflare, alerting Cloudflare of the existence and location of Plaintiffs’ copyrighted 8 images on pirate sites that infringe upon Plaintiffs’ copyrights. A sample of those notices 9 is attached hereto as Exhibit “B”. 32. 10 11 action required by law in response to these notices. 33. 12 13 Cloudflare has ignored these notices and/or failed to take the appropriate Cloudflare has persisted in offering CDN and related services to pirate websites, notwithstanding these numerous notifications of infringement on such sites. 34. 14 In this fashion, Cloudflare has induced, contributed to, profited from, and 15 aided and abetted multiple infringements of Plaintiffs’ copyrights, failing and refusing all 16 along to implement or enforce a repeat infringer policy, and is thus liable for the 17 infringements alleged herein. 18 FIRST CLAIM FOR RELIEF – AGAINST ALL DEFENDANTS 19 CONTRIBUTORY COPYRIGHT INFRINGEMENT 35. 20 21 Plaintiffs repeat and incorporate the prior allegations in this Complaint as if repeated verbatim herein. 36. 22 Cloudflare, and Does 1-10, have, with actual and/or constructive knowledge 23 of direct infringements of Plaintiffs’ copyrighted works, materially contributed to or aided 24 in such infringement. 25 infringement. 37. 26 Such defendants are thus liable for contributory copyright All named Defendants, and Does 1-10, have induced infringement of 27 Plaintiffs’ copyrights. 28 ////// 9 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT Case 2:18-cv-09453-MWF-AS Document 1 Filed 11/07/18 Page 10 of 10 Page ID #:10 1 2 38. As a result of these Defendants’ acts of infringement, Plaintiffs are entitled to injunctive relief, damages, disgorgement of profits, statutory damages and attorneys’ fees. PRAYER 3 4 5 39. Plaintiffs pray for entry of judgment including the following relief: a. Actual damages in a sum to be proven at time of trial, in no event less than $1,000,000; 6 7 b. Statutory damages under the Copyright Act; 8 c. Disgorgement of Defendants’ profits from their infringing activities; 9 d. Costs and attorneys’ fees under the Copyright Act; 10 e. Preliminary and permanent injunctive relief; and 11 f. Such other and further relief as the Court deems appropriate. 12 Dated: November 7, 2018 OWENS & GACH RAY 13 14 15 16 By_/s/ Robert B. Owens_____ Robert B. Owens, Esq. Attorneys for Plaintiffs 17 18 19 20 21 22 23 24 25 26 27 28 10 COMPLAINT FOR CONTRIBUTORY COPYRIGHT INFRINGEMENT