vianix (09-348)

8/9/2019 Vianix (09-348)

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IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF DELAWARE

VIANIX LLC,

P l a i n t i f f ,

v.

NUANCE COMMUNICATIONS, INC. ,

Defendan t .

C.A. No . 0 9 - 3 4 8 - J J F

P e t e r C. S c h e c h t e r , E s q u i r e o f EDWARDS ANGELL PALMER & DODGE LLP,New York, New York.Denise S e a s t o n e K r a f t , E s q u i r e o f EDWARDS ANGELL PALMER & DODGELLP, Wilmington , Delaware .

A t t o r n e y s f o r P l a i n t i f f .

F a i t h Gay, E s q u i r e ; J e f f r e y A. C o n c i a t o r i , E s q u i r e ; Rober t C.Juman, E s q u i r e ; an d Benjam in W. Thorn , E s q u i r e o f QUINN EMANUELURQUHART OLIVER & HODGES, LLP, New York, New York.Danie l A. D r e i s b a c h , E s q u i r e ; J e f f r e y L. Moyer, E s q u i r e ; and AnneShea Gaza, E s q u i r e o f RICHARDS, LAYTON & FINGER, P. A . ,

Wilmington , Delaware .

A t t o r n e y s f o r Defendan t s .

MEMORANDUM O P I N I O N

J u l y .at!, 2010

W ilm in gto n, D ela wa re

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Pending b e f o r e t h e Cour t i s Defendan t Nuance Communica t i ons ,

I n c . ' s Motion To Dismis s ( 0 .1 . 5 . ) For t h e r e a s o n s t o be

d i s c u s s e d , t h i s Motion w i l l b e d e n i e d .

I . Background

P l a i n t i f f Vian ix LLC ( " P l a i n t i f f U) i n i t i a t e d t h i s c o p y r i g h t

i n f r i n g e m e n t a c t i o n a g a in s t Defendan t Nuance Communica t ions , I n c .

( "Defendan t U) on May 13, 2009. ( 0 . 1 . 1 . ) The p a r t i e s ' d i s p u t e

s t ems from a Techno logy License Agreement ( t h e "Agreement U)

e n t e r e d i n t o by Dic taphone C o r p o r a t i o n 1 and Vian ix Delaware LLC,2

e f f e c t i v e J a n u a r y 23 , 2009, which c o n c e r n e d t h e l i c e n s i n g o f

P l a i n t i f f ' s Managed Audio Sound Compress ion Techno l ogy 3 ("MASC

TechnologyU) . ( I d . <J[<J[ 1 8 - 1 9 . ) P l a i n t i f f i s t h e owner o f U.S.

C o p y r i g h t R e g i s t r a t i o n s f o r f o u r computer p rog rams ( c o l l e c t i v e l y ,

t h e " S u b j e c t Works U) a l l e g e d t o embody MASC Techno logy.

16 . ) G e n e r a l l y s p e a k i n g , t h e Agreement gave Defendan t a l i c e n s e

t o u se MASC Techno logy i n c o n n e c t i o n w i t h D e f e n d a n t ' s p r o d u c t s ,

and t o u se MASC Techno logy f o r c e r ta in i n t e r n a l p u r p o s e s . (D . I .

IDic taphone C o r p o r a t i o n wa s a c q u i r e d by Defendan t on o r

a b o u t March 31, 2006, and i s now a whol ly-owned s u b s i d i a r y o fDefendan t . ( D . I . 1 <J[ 5; 0 . 1 . 8, a t 1 . )

2 Vian ix Delaware LLC

s u b s i d i a r y o f P l a i n t i f f .( "Vian ix Delaware U)

( D . 1 . 1 <J[ 2 . )i s a whol ly-owned

3MASC Techno logy i s " a u d i o compress ion s o f t w a r e U which" a l l o w s d i r e c t r e c o r d i n g o f a v o i c e i n t o a compressed f i l e f o r m a tt h a t min imizes t h e c o s t s o f f i l e s t o r a g e and t r a n s m i s s i o n p r i o rt o c o m p r e s s i o n . U ( I d . <J[<J[ 9, 1 2 . )

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8, a t 5 .)

For r e a s o n s which need n o t be a d d r e s s e d i n t h e c o n t e x t o f

t h i s Mot ion , P l a i n t i f f came t o b el i e v e t h a t D e f e n d a n t wa s i n

b r e a c h o f t h e Agreemen t . A cc ord in gly , V ia nix Delaware f i l e d a

b r e a c h o f c o n t r a c t a ct i o n a g ai n st Defendan t i n t h e Delaware C o u r t

o f Chancery on June 2, 20 08. ( 0 . 1 . 1 <JI<JI 3 4 - 4 5 , 4 9 . ) By l e t t e r

d a t e d Sep tember 22 , 2008, p u r s u a n t t o t h e " f o r c a u s e " p r o v i s i o n

o f t h e Agreement , Vian ix Delaware t e r m i n a t e d t h e Agree men t

e f f e c t i v e December 21, 20 08 . ( Id .<JI

50; 0 . 1 . 8, a t 6 . ) On

J a n u a r y 27, 2009, Vian ix Delaware b r o u g h t s u i t a g a i n s t Defendan t

i n t h i s D i s t r i c t a l l e g i n g c op yr ig h t i nf ri ng e m en t . 4 The Honorab le

Noel L. Hi l lman d is m is s e d t h e s u i t on May 12, 2009 , f i n d i n g t h a t

t h e Cour t l a c k e d s u b j e c t m a t t e r j u r i s d i c t i o n b ec au se Via nix

Delaware had no s t a n d i n g t o sue f o r c o py r i gh t i nf r i ng e m e nt .

(0 .1 . 7, Thorn D e c l . , Ex. M.) S p e c i f i c a l l y , Vian ix Delaware wa s

n o t t h e owner o f t h e c o p y r i g h t s a l l e g e d t o be v i o l a t e d , n o r d i d

i t have a b e n e f i c i a l i n t e r e s t i n t h e c op y r i g h t s , and t h e r e f o r e ,

t h e Cour t c o n c l u d e d Vi a n i x Delaware d i d n o t s u f f e r an i n v a s i o n o f

a l e g a l l y p r o t e c t e d i n t e r e s t . ( I d . ) P l a in t i f f i n i t ia t e d t h e

p r e s e n t c op y ri gh t in f r in ge m en t a c t i o n a g a i n s t D e f e n d a n t t h e n e x t

day, May 13 , 2009.

4 V i a n i x Delaware LLC v . Nuance Communica t ions , I n c . , C.A.No . 09-67-NLH-JS.

2

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By i t s Compla in t i n t h e p re se nt a ct i o n , P l a i n t i f f a l l e g e s

t h a t , p o s t - t e r m i n a t i o n o f t h e Agreement , Defendan t has i n f r i n g e d

and c o n t i n u e s t o i n f r i n g e P l a i n t i f f ' s c o p y r i g h t i n t e r e s t s

r e l a t i n g t o t h e S u b j e c t Works by " a r c h i v i n g , r e t r i e v i n g , l o a d i n g ,

runn ing , o p er at i n g , d is p l a y i n g , m a i n t a i n i n g , debugg ing and

per fo rming o t h e r compu te r o p er a t i on s in vo lv in g compu te r programs

i n c l u d i n g Vi a n i x ' s MASC Technology" w ith ou t a pp ro va l o r

a u t h o r i z a t i o n . ( 0 . 1 . 1 '11 67 . )

I I . P a r t i e s ' C o n t e n t i o n s

As t h e f i r s t b a s i s f o r i t s Motion To D i s m i s s , Defendan t

c o n t e n d s t h a t P l a i n t i f f has f a i l e d t o s t a t e a c l a i m upon which

r e l i e f can be g r a n t e d b e c a u s e P l a i n t i f f h as n o t i d e n t i f i e d t h e

s p e c i f i c o r i g i n a l works forming t h e b a s i s o f i t s c o p y r i g h t

i nf rin ge m en t c la im , and because P l a i n t i f f h as n o t i d e n t i f i e d

s p e c i f i c a c t s commit ted by Defendant which a r e a c t i o n a b l e as

i n f r i n g e m e n t . ( 0 . 1 . 8, a t 1 0 . ) Defendan t c o n t e n d s t h a t a

c o p y r i g h t i n f r i n g e m e n t c o m p l a i n t must i d e n t i f y which s p e c i f i c

o r i g i n a l works a r e th e s u b j e c t o f t h e i n fr in ge m en t c l a i m , and

t h a t P l a i n t i f f h as f a i l e d t o i d e n t i f y which o f t h e f o u r S u b j e c t

Works a r e a l l e g e d l y i n f r i n g e d . ( Id . a t 1 1 - 1 2 . ) F u r t h e r ,

Defendant c o n t e n d s t h a t a c o py r i gh t i nf ri ng em e n t c o m p l a i n t must

a l l e g e t h e s p e c i f i c a c t s by which t h e c o p y r i g h t i s i n f r i n g e d , and

t h a t none o f th e s p e c i f i c a l l y - a l l e g e d a c t s i n P l a i n t i f f ' s

Compla in t q u a l i f y as i n f r i n g e m e n t as a m at t e r o f law. ( Id . a t

3

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13-19 . )

As t h e second b a s i s f o r i t s Motion To D i s m i s s , Defendan t

con tends t h a t t h e Agreement i s unambiguous and s h o u l d be

i n t e r p r e t e d as a m a t t e r o f l aw. ( I d . a t 1 9 . ) Defendan t con tends

t h a t unde r t h e Agreemen t , t e r m i n a t i o n does n o t a f f e c t t h e r i g h t s

o f D ef en da nt 's c u s t o m e r s t o use MASC Techno logy. ( I d . a t 2 0 . )

In a d d i t i o n , Defendan t a rg u e s t h a t under t h e Agreemen t , Defendan t

l S e n t i t l e d t o r e t a i n back-up c o p i e s o f i t s Legacy Programs .

( Id . a t 2 0 - 2 3 . )

P l a i n t i f f r e sponds t h a t a c o m p l a i n t s u f f ic i e n t l y s t a t e s a

c la im f o r c o p y r i g h t i n f r i n g e m e n t i f i t a l l e g e s t h a t a d e f e n d a n t

i n f r i n g e d "one o r more" o f t h e p l a i n t i f f ' s c o p y r i g h t s , and t h a t a

c o m p l a i n t need no t p l e a d e x a c t l y which i n d i v i d u a l e l e m e n t s o f t h e

c o p y r i g h t e d works were i n f r i n g e d . ( 0 . 1 . 1 0 , a t 4 .) Accord ing t o

P l a i n t i f f , D efe nd an t h as adequa te n o t i c e t h a t t h e MASC Technology

c o p y r i g h t e d works form t h e b a s i s o f t h e c l a i m , and t h a t where

t h e r e a r e o n ly fo u r c o p y r i g h t e d works , a s h e r e , t h e r e i s l i t t l e

r i s k o f c o nfu sio n o r p re ju d i c e t o Defendan t . ( I d . a t 5 . ) In

a d d i t i o n , P l a i n t i f f con tends t h a t a c o m p l a i n t f o r c o p y r i g h t

i n f r i n g e m e n t need n o t s p e c i f y each i n d i v i d u a l a c t a d e f e n d a n t

a l l e g e d l y p e r f o r m e d , and t h a t t h e r e i s no r e q u i r e m e n t t h a t i t

p r o v i d e a d e t a i l e d a c c o u n t o f a l l o f D ef en da nt 's o b j e c t i o n a b l e

conduc t . ( I d . a t 8 - 1 0 . ) P l a i n t i f f a rgues t h a t i t has

s u f f i c i e n t l y a l l e g e d t h e a c t s c o n s t i t u t i n g i t s c o p y r i g h t

4

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in fr in ge m en t c la im , and n o t e s t h a t i t a l l e g e d which s p e c i f i c

c o p ie s o f p r o d u c t s c o n t a i n i n g MASC Techno logy Defendan t p roduced

a f t e r t e r m i n a t i o n o f t h e Agreement . ( I d . )

With r e g a r d t o D e f e n d a n t ' s s u b s t a n t i v e a rgumen t s c o n c e r n i n g

t h e Agreement , P l a i n t i f f con tends t h a t i t has a d i f f e r e n t

i n t e r p r e t a t i o n t h a n Defendan t on p o s t - t e r m i n a t i o n r i g h t s under

t h e Agreement . ( I d . a t 1 2 - 1 3 . ) Because t h e Agreement i s

ambiguous , a c c o r d i n g t o P l a i n t i f f , any c o n t r a c t u a l a m b i g u i t i e s

must be r e s o l v e d i n i t s f a v o r a t t h e p le ad i n g s t a g e . ( I d . a t 11 -

12 . )

I I I . Lega l Standard

Under Rule 12(b) (6 ) o f t h e F e d e r a l Rules o f C i v i l P r o c e d u r e ,

a d e f e n d a n t may move f o r d is m is s a l based on a p l a i n t i f f ' s

" f a i l u r e t o s t a t e a c la im upon which r e l i e f can be g r a n t e d . "

Fed. R. Civ. P. 12(b) ( 6 ) . When r ev iewing a mot ion t o d i s m i s s

unde r Rule 12(b) (6 ) , t h e Cour t must a c c e p t a l l f a c t u a l

a l l e g a t i o n s i n a c o m p l a i n t as t r u e and view them i n t h e l i g h t

most f a v o r a b l e t o t h e p l a i n t i f f . See C h r i s t o p h e r v . H arbury , 53 6

U.S. 403, 406 (2002) . A compla in t must c o n t a i n " a s h o r t and p l a i n

s ta te m en t o f t h e c l a i m showing t h a t t h e p l e a d e r i s e n t i t l e d t o

r e l i e f . " Fed. R. C i v. P. 8(a ) ( 2 ) . Assuming t h e f a c t u a l

a l l e g a t i o n s a r e t r u e , even i f d o u b t f u l i n f a c t , t h e " f a c t u a l

a l l e g a t i o n s must be enough t o r a i s e a r i g h t t o r e l i e f above t h e

s p e c u l a t i v e l e v e l . " B e l l A t l . Corp . v. Twombly, 550 U.S. 544,

5

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55 5 (2007) . While t h e c o m p l a i n t need n o t make d e t a i l e d f a c t u a l

a l l e g a t i o n s , "a p l a i n t i f f ' s o b l i g a t i o n t o p r o v i d e t h e grounds of

h i s e n t i t l e m en t t o r e l i e f r e q u i r e s more t h a n mere l a b e l s and

c o n c l u s i o n s , and a f o r m u l a i c r e c i t a t i o n o f t h e e l e m e n t s o f a

cause o f a c t i o n . " I d . ( i n t e r n a l q u o t a t i o n s and c i t a t i o n s

omi t t ed ) . Thus , s t a t i n g a c la im upon which r e l i e f can be g r a n t e d

" ' r e q u i r e s a c om p la in t w ith enough f a c t u a l m a t t e r ( t aken as t r u e )

t o s u g g e s t ' t h e r e q u i r e d e lemen t" o f a c a u s e o f a c t i o n . P h i l l i p s

v. County o f Al legheny, 515 F.3d 224, 234 (3d C i r . 2008) ( c i t i n g

Twombly, 550 U.S. a t 556 . ) In sum, i f a c o m p l a i n t " p l e a d s

f a c t u a l c o n t e n t t h a t a l l o w s t h e c o u r t t o draw t h e r e a s o n a b l e

i n f e r e n c e t h a t t h e d e f e n d a n t i s l i a b l e f o r t h e misconduc t

a l l e g e d , " A s h c r o f t v. I q b a l , 129 S. C t. 1937, 1949 (2009) , t h e n

t h e compla in t i s " p l a u s i b l e on i t s f a c e , " and w i l l s u r v i v e a

mot ion t o d i s m i s s u n d e r Rule 12 (b) (6) .

IV . D i s c u s s i o n

Twombly, 550 U.S. a t 570.

A. Whether P l a i n t i f f S u f f i c i e n t l y A l l e g e d C o p y r i g h t e dWorks And Conduct Tha t C o n s t i t u t e s I n f r i n g e m e n t

A s u c c e s s f u l c o p y r i g h t i nf ri ng em e nt c la im r e q u i r e s p ro o f o f

(1) ownersh ip o f a v a l i d c o p y r i g h t , and (2 ) c o p y i n g o f

c o n s t i t u e n t e le m ents o f t h e work t h a t a r e o r i g i n a l . F e i s t

P u b l ' n s , I n c . v . R u r a l Te l . Servo Co. , 49 9 U.S. 340, 36 1 (1991)

With r e g a r d t o t h e second e lemen t , " [ c ] o p y i n g i s a ' s h o r t h a n d

r e f e r e n c e t o t h e a c t o f i n f r i n g i n g any o f t h e c o py rig ht o w n e r ' s

f i v e e x c l u s i v e r i g h t s s e t f o r t h a t 17 U.S.C. § 1 0 6 . ' " Ford Motor

6

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Co . v . Summit Motor P r o d s . , I n c . , 93 0 F.2d 2 77 , 291 (3d C i r .

1991) ( c i t i n g Paramount P i c t u r e s v . Video Broad . S y s . , 724 F.

Supp. 808, 819 (D. Kan. 1 9 8 9 ) ) . In o r d e r t o b e s u f f i c i e n t l y p l e d

unde r Rule 8 , a c l a i m f o r c op yr ig h t i nf ri ng em e n t must s t a t e (1 )

"which s p e c i f ic o r i g i n a l work i s t h e s u b j e c t o f t h e c o p y r i g h t

c l a i m s , " (2 ) " t h a t p l a i n t i f f owns t h e c o p y r i g h t , " (3 ) " t h a t t h e

work i n q u e s t i o n ha s been r e g i s t e r e d i n compl i ance w i t h t h e

s t a t u t e , " and (4 ) "by what a c t s and d u r i n g w ha t t ime d e f e n d a n t

ha s i n f r i n g e d t h e c o p y r i g h t . " Ge e v . CBS, 471 F. Supp. 600, 64 3

(E.D. Pa. 1 9 7 9 ) , a f f ' d , 61 2 F.3d 57 2 (3d C i r . 1979) ( p r e - Twombly

d e c i s i o n ) ; s e e a l s o Home & N a t u r e I n c . v . Sherman S p e c i a l t y C o . ,

I n c . , 32 2 F. Supp. 2d 260, 266 (E.D.N.Y. 2004) ( r e c i t i n g same

p l e a d i n g s t a n d a r d i n p r e - Twombly d e c i s i o n ) ; P l u n k e t v . Doyle ,

No . 99 Civ. 11006 , 2001 WL 175 25 2 , a t *4 (S .D.N.Y. F eb . 22 ,

2001) ( r e c i t i n g same p le ad in g s ta n d a r d i n pre-Twombly d e c i s i o n ) .

The C o u r t c o n c l u d e s t h a t P l a i n t i f f ' s Compla in t s u f f i c i e n t l y

p l e a d s which s p e c i f i c o r i g i n a l works a r e t h e s u b j e c t o f i t s

c op yr i g h t c la im . The Compla in t i d e n t i f i e s t h e S u b j e c t Works as

f o u r compu te r p r o g r a m s , i n t h e form o f s o u r c e code , embodying t h e

MASC Techno logy, w i t h u . S . C o p y r i g h t R e g i s t r a t i o n Nos. TX 6 - 8 7 9

210, TX 6-879-213 , TX 6-879-215 , and TX 6 - 8 7 9 - 2 1 6 . ( 0 . 1 . 1 ~ ~

16, 21 . ) The Compla in t f u r t h e r a l l e g e s t h a t p u r s u a n t t o t h e

Agree men t , P l a i n t i f f p r o v i d e d "one o r more" o f t h e f o u r S ub j e c t

Works t o Defendan t i n t h e form o f " o b j e c t c o d e , " a m a c h i n e -

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r e a d a b l e t r a n s l a t e d form o f source code . ( I d . ~ ~ 2 0 - 2 1 . )

A d d it i o na ll y , t h e Compla in t i d e n t i f i e s seven s p e c i f i c p r o d u c t s

and a l l e g e s t h a t s i n c e 2005, Defendan t i n c o rp o r at e d th e S u b j e c t

Works i n t o " a t l e a s t " t h o s e p r o d u c t s . ( Id . ~ 30 . )

Defendan t c i t e s t o t h e c a se o f Tegg Corp v . Becks t rom E l e c .

Co. , C.A. No. 08-435 , 2008 WL 2682602 (E.D. Pa. J u l y 1, 2008) t o

s u p p o r t i t s c o n t e n t i o n t h a t P l a i n t i f f must s p e c i f i c a l l y i d e n t i f y

which o f t h e "one o r more" S u b j e c t Works Defendan t i s a l l e g ed t o

i n f r i n g e . However, ~ i s i n ap p o si t e ; i n t h a t c a s e , a mot ion t o

d i s m i s s a c o p y r i g h t i nf rin ge m en t c la im wa s g r a n t e d b e c a u s e t h e

compla in t wa s u n c l e a r as t o which o r i g i n a l works were p r o t e c t e d

by which o f t h e r e g i s t e r e d c o p y r i g h t s . ~ , 2 0 0 8WL 2682602, a t

*8. In p a r t i c u l a r , t h e compla in t i n ~ i d e n t i f i e d a b r o a d

s o f t w a r e sys t em wi th s m a l l e r components as t h e o r i g i n a l w o r k ( s ) ,

b u t f a i l e d t o " i d e n t i f y w h e t h e r a s i n g l e c o p y r i g h t r e g i s t r a t i o n

p r o t e c t s t h e [J s o f t w a r e a s a whole , i f m u l t i p l e r e g i s t r a t i o n s

p r o t e c t t h e i n d i v i d u a l components i n t h e i r e n t i r e t y , . o r i f

t h e r e g i s t r a t i o n s p r o t e c t t h e ' c o n f i d e n t i a l and p r o p r i e t a r y '

d a t a b a s e scheme c o n t a i n e d t h e r e i n . " Id . In c o n t r a s t , i n t h e

p r e s e n t a c t i o n , t h e Compla in t makes c l e a r t h a t f o u r compu te r

p rog rams , each p r o t e c t e d by a c o p y r i g h t r e g i s t r a t i o n , a r e a l l e g e d

t o be i n f r i n g e d .

In a d d i t i o n , t h e Cour t conc ludes t h a t t h e Compla in t

s u f f i c i e n t l y p l e a d s by what a c t s P l a i n t i f f a l l e g e s D efe nd an t h as

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i n f r i n g e d . P l a i n t i f f a l l e g e s t h a t on J a n u a r y 16 , 2009 , Defendan t

in fo rmed Vi a n i x Delaware t h a t Defendan t made " a r c h i v e d c o p i e s o f

i t s own p ro du ct s , i n c l u d i n g v er s i o ns t h a t c o n t a i n V ia n ix " ( 0 . 1 . 1

~ 5 9 ) , b u t t h a t t h e Agreement d i d n o t g r a n t an y p o s t - t e r m i n a t i o n

r i g h t s t o make and s t o r e such a rc h i v ed c o p ie s ( I d . ~ 6 3 ) .

A c c o r d i n g l y, P l a i n t i f f a l l e g e s t h a t D e f e n d a n t ' s a c t o f "making

and s t o r i n g [] ' a r c h i v e d c o p i e s o f i t s own p ro d u c t s , i n c l u d i n g

v e r s i o n s t h a t c o n t a i n Vi a n i x ' i n c l u d i n g t h e S ub j e c t Works , "

c o n s t i t u t e s i n f r i n g e m e n t . ( I d . ~ 61 ) In t h e J a n u a r y 16, 2009

emai l , w hich s e r v e s a s t h e f a c t u a l b a s i s f o r t h i s a l l e g a t i o n ,

c o u n s e l f o r D e f e n d a n t s t a t e d " [ D e f e n d a n t ] m a in ta in s a rc h i v e d

c o p i e s o f i t s own p ro du c t s , i n c l u d i n g v e r s i o n s t h a t c o n t a i n

Vi a n i x , b u t t h o s e prog rams a r e n o t c u r r e n t l y r u n n i n g on an y

compu te r, and a r e k e p t i n c a s e t h e y a r e needed i n o r d e r t o

p r o v i d e c u s t o m e r s u p p o r t t o cu sto me rs w ith o l d e r v e r s i o n s o f t h e

s o f t w a r e . " s ( 0 . 1 . 7, Thorn D e c l . , Ex. G.) A lth ou gh D e fe nd an t

c o n t e n d s t h a t t h e e m a i l makes c l e a r t h a t D e f e n d a n t h as n o t made

any n ew a r c h i v e d c o p i e s s in c e t er m in a ti on o f t h e Agreem ent (and

t h e r e f o r e t h a t any c l a i m e d i n f r i n g i n g a ct i s p u r e c o n j e c t u r e ) ,

t h e e m a i l i s n o t so e x p l i c i t . A c c o r d i n g l y, a t t h i s s t a g e , t h e

5 The C o u r t ma y c on si d er t h e a c t u a l t e x t o f t h e J a n u a r y 16 ,2009 em ai l b ec au se i t was e x p l i c i tl y r e l ie d on i n P l a i n t i f f ' sCompla in t . See In r e B u r l i n g t o n Coa t F a c t o r y Sec . L i t i g . , 114F.3d 1410, 1426 (3d C i r . 1997) ("a document i n t e g r a l t o o re x p l i c i t l y r e l i e d upon i n t h e c o m p l a i n t ma y be c o n s i d e r e d w i t h o u tc o n v e r t i n g t h e mot ion t o d i s m i s s i n t o one f o r summaryjudgment") ( i n t e r n a l q u o t a t i o n marks o m i t t e d ) .

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Cour t must a c c e p t a s t r u e P l a i n t i f f ' s f a c t u a l a l l e g a ti o n t h a t

Defendant i s making and s t o r i n g a r c h i v e d c o p i e s o f i t s p r o d u c t s

which i n c l u d e t h e S u b j e c t Works. In t u r n , t h e C o u r t c o n c l u d e s

t h a t P l a i n t i f f ' s f ac tu a l a l l eg a ti o n s r i s e above t h e s p e c u l a t i v e

l e v e l , and s u p p o r t an i n f e r e n c e t h a t Defendan t i s l i a b l e f o r t h e

misconduc t a l l e g e d . See 17 U.S.C. § 106(1) ( s t a ti n g t h a t i t i s an

i n f r i n g i n g a c t t o " r e p r o d u c e t h e c o p y r i g h t e d work i n c o p i e s o r

p h o n o r e c o r d s " ) .

Because P l a i n t i f f has s u f f ic ie n t l y i d en t if ie d which s p e c i f i c

o r i g i n a l works a r e t h e s u b j e c t o f t h e c l a i m , as w e l l a s a

s p e c if i c a c t by which Defendan t has a l l e g e d l y i n f r i n g e d t h e

c o p y r i g h t ( s ) , t h e C o u r t conc ludes t h a t P l a i n t i f f ' s Compla in t i s

p l a u s i b l e on i t s f a c e and s t a t e s a c la im f o r c o p y r i g h t

i n f r i n g e m e n t .

B. Whether, Under Th e Agreement , Defendan t Has A Va l i d

L i c e n s e To Per fo rm Th e A l l e g e d I n f r i n g i n g Acts

S e c ti o n 1 1 .2 (c ) o f t h e Agreement p r o v i d e s t h a t

" [ t ] e r m i n a t i o n s h a l l n o t a f f e c t t h e r i g h t s o f DICTAPHONE C l i e n t s

and DICTAPHONE D i s t r i b u t o r s t o c o n t i n u e t o u se t h e MASC

Technology a c q u i r e d from DICTAPHONE i n a c c o r d a n c e w i t h t h e t e r m s

o f t h i s Agreemen t . " ( 0 . 1 . 7, Thorn D e c l . , Ex. B, Agreement §

1 1 . 2 ( c ) ) . S e c t i o n 4 . 2 ( c ) p r o v i d e s t h a t Defendan t h as t h e

o b l i g a t i o n t o " p r o v i d e t e c h n i c a l s u p p o r t a p p r o p r i a t e f o r t h e

DICTAPHONE P r o d u c t s t o En d User s and S u b l i c e n s e e s . " ( I d . §

4 . 2 ( c ) ) . Defendan t c o n t e n d s t h a t t h e s e p r o v i s i o n s d e m o n s t r a t e

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t h a t Defendan t had t o r e t a i n h i s t o r i c a l c o p ie s o f i t s s o f t w a r e

p r o d u c t s i n o r d e r t o f u l f i l l i t s o b l i g a t i o n s u n d e r t h e Agreement ,

and t h u s , P l a i n t i f f ' s " in fr in ge m e nt c la im b a s e d on [ D e f e n d a n t ] ' s

p o s t - t er m i na t i on s to r ag e o f p r e - e x i s t in g a rc h iv a l c o p i e s

c o n t a i n i n g t h e MASC Technology i s w i t h o u t l e g a l s u p p o r t . " 6 (D . I .

8 , a t 23 . ) However, as d i s c u s s e d above , t h e C o u r t a c c e p t s as

t r u e P l a i n t i f f ' s f a c t u a l a l l e g a t i o n t h a t Defendan t i s making and

s t o r i n g a r c h i v e d c o p ie s o f i t s p r o d u c t s , which i n cl u de t h e

S u b j e c t Works, a f t e r t e r m i n a t i o n o f t h e Agreement . By i t s

Motion , D efen dan t d oes n o t a rgue t h a t t h e Agreement a l l o w s f o r

t h e making and s t o r i n g o f a r c h i v e d c o p ie s o f i t s p r o d u c t s a f t e r

t e r m in a t i o n o f t h e Agreement . At t h i s s t a g e , t h e r e f o r e , t h e

Cour t c a n n o t co nc lu d e as a m a t t e r o f law t h a t t h e Agreement

a l lowed f o r Defendan t t o per fo rm t h e i n f r i n g i n g a c t a l l e g e d i n

t h e Compla in t .

v. C o n c l u s i o n

For t h e r e a s o n s d i s c u s s e d , D e f e n d a n t ' s Motion To Dismis s

w i l l be d e n i e d .

An a p p r o p r i a t e Order w i l l be e n t e r e d .

6 The Cour t ma y c on sid er t h e t e x t o f t h e Agreement w i t h o u tc o n v e r t i n g t h e p r e s e n t Motion To Dismiss i n t o a mot ion f o rsummary judgment b e c a u s e t h e Agreement i s e x p l i c i t l y r e l i e d on i nP l a i n t i f f ' s C o m p l a i n t . See In r e B u r l i n g t o n Coat F a c t o r y Sec.L i t i g . , 114 F.3d 1 4 1 0 , 1426 (3 d C i r . 1 9 9 7 ) .

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF DELAWARE

VIANIX LLC,

P l a i n t i f f ,

v.

NUANCE COMMUNICATIONS, INC.,

Defendan t .

C.A. No . 0 9 - 3 4 8 - J J F

ORDER

At Wilmington , t h i s ~ day o f J u l y 2010, f o r t h e

s e t f o r t h i n t h e Memorandum Opin ion i s s u e d t h i s d a t e ;

NO W THEREFORE, IT IS HEREBY ORDERED t h a t Nuance

r e a s o n s

Communica t ions , I n c . ' s Motion To Dismiss ( D . I . 5 . ) i s DENIED.

vianix (09-348)

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