Xcentric Ventures LLC v. Goddeau et al

Filing 1

COMPLAINT. Filing fee received: $350.00, receipt number PHX 0970-5293142, filed by Xcentric Ventures LLC (submitted by David Gingras).(REK)

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1 4 David S. Gingras, #021097 Gingras Law Office, PLLC 3941 E. Chandler Blvd., #106-243 Phoenix, AZ 85048 Tel.: (480) 668-3623 Fax: (480) 248-3196 David@GingrasLaw.com 5 Attorney for Plaintiff Xcentric Ventures, LLC 2 3 6 7 UNITED STATES DISTRICT COURT 8 DISTRICT OF ARIZONA 9 10 XCENTRIC VENTURES, LLC, an Arizona limited liability company, Plaintiff, 11 12 GINGRAS LAW OFFICE, PLLC 3941 E. CHANDLER BLVD., #106-243 PHOENIX, AZ 85048 13 14 17 COMPLAINT v. RICHARD J. GODDEAU; GSCSC, INC., a Nevada corporation; DOES 1-10, inclusive, Defendants. 15 16 Case No: ___________________ For its Complaint Plaintiff Xcentric Ventures, LLC alleges as follows: 1. This is a civil action seeking monetary damages and injunctive relief for 18 various acts of copyright infringement under the copyright laws of the United States (17 19 U.S.C. § 101 et seq.) and for various acts of trademark infringement in violation of the 20 Lanham Act, 15 U.S.C. § 1051, et seq., and related state law claims. 21 2. This Court has jurisdiction under 15 U.S.C. § 1121 (trademark); 17 U.S.C. 22 § 101 et seq. (copyright); 28 U.S.C. § 1331 (federal question); and 28 U.S.C. § 1338(a) 23 (copyright). This Court has supplemental jurisdiction over state and common law claims 24 pursuant to 28 U.S.C. § 1367(a). 25 3. Venue in this District is proper under 28 U.S.C. §§ 1391(b) and (c), and/or 26 28 U.S.C. § 1400(a). A substantial part of the acts of infringement complained of 27 occurred in this District, and certain corporate defendants are subject to personal 28 jurisdiction in this District. COMPLAINT 1 4. Personal jurisdiction in this District is proper because each defendant 2 engaged in acts of copyright infringement within the District of Arizona, and/or 3 intentionally directed tortious conduct at Plaintiff knowing such conduct would cause 4 harm within this District. 5 6 7 5. Plaintiff XCENTRIC VENTURES, LLC (“Plaintiff”) is and at all relevant times was an Arizona limited liability company located in Phoenix, Arizona. 6. Plaintiff operates a consumer complaint and free speech forum known as 8 the Rip-off Report located at www.RipoffReport.com (the “Rip-off Report site”). The 9 Rip-off Report is widely used by consumers, and works closely with government 10 agencies, attorneys general, federal, state, and local law enforcement, and the news media 11 to help report, identify and prevent consumer fraud and similar conduct. 12 7. Defendant RICHARD GODDEAU (“GODDEAU”) is, and at all relevant GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 times has been, a resident of the State of New York who caused the events herein 14 described to occur with knowledge that they would cause harm within the State of 15 Arizona. Upon information and belief, GODDEAU also has engaged in continuous, 16 systematic and substantial contacts with the State of Arizona sufficient to confer general 17 and specific personal jurisdiction over him in this District. 18 8. Defendant GSCSC, INC. (“GSCSC”) is a dissolved Nevada corporation 19 previously owned by GODDEAU which caused the events herein described to occur with 20 knowledge that they would cause harm within the State of Arizona. 21 dissolution, GODDEAU was the owner, President, Secretary, Treasurer, and sole 22 Director of GSCSC. 23 continuous, systematic and substantial contacts with the State of Arizona sufficient to 24 confer general and specific personal jurisdiction over him in this District. 25 9. Prior to its Upon information and belief, GSCSC also has engaged in Upon information and belief, GODDEAU and/or GSCSC have from time 26 to time used various fictitious names including the names of non-existent corporations 27 including, but not limited to “REPORT A RIP OFF, INC.” which purports to be a 28 Nevada-based corporation. 2 COMPLAINT 1 2 3 10. “Report A Rip Off, Inc.” is not an valid Nevada corporation, nor is it a valid corporation in any state. 11. “Report A Rip Off, Inc.” is a pseudonym used by Defendant GODDEAU. 4 5 GENERAL ALLEGATIONS 12. Plaintiff is and at all relevant times has been the lawful owner of the mark 6 “RIP-OFF REPORT” which has been registered with the United States Patent and 7 Trademark Office and assigned registration #2958949. 8 9 10 11 12 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 13. Since February 1998 through the filing of this action, Plaintiff has continuously used the mark “RIP-OFF REPORT” in commerce to identify and distinguish Plaintiff’s business from other businesses in the same field. 14. Plaintiff’s ownership of the “RIP-OFF REPORT” mark is incontestable as a matter of law pursuant to 15 U.S.C. § 1065. 15. Plaintiff is and at all relevant times has been the lawful owner of the mark 14 “DON’T LET THEM GET AWAY WITH IT” which has been registered with the United 15 States Patent and Trademark Office and assigned registration #2824390. 16 16. Since February 1998 through the filing of this action, Plaintiff has 17 continuously used the mark “DON’T LET THEM GET AWAY WITH IT” in commerce 18 to identify and distinguish Plaintiff’s business from other businesses in the same field. 19 20 21 22 23 17. Plaintiff’s ownership of the “DON’T LET THEM GET AWAY WITH IT” mark is incontestable as a matter of law pursuant to 15 U.S.C. § 1065. 18. Plaintiff is the owner of various copyrights relating to content appearing on the Rip-off Report website. 19. Plaintiff is the owner of the federal copyright issued by the United States 24 Copyright Office Certificate of Registration No. TXu1-574-438 entitled “Rip-off Report 25 Content” dated March 25, 2008 (the “‘438 Copyright”). The ‘438 Copyright applies to 26 all non-user generated original content located at www.RipoffReport.com including all 27 sub-pages and including, but not limited to, the following specific URLs: 28 • http://www.ripoffreport.com/ 3 COMPLAINT 1 • http://www.ripoffreport.com/ConsumersSayThankYou/WantToSueRipoffReport.aspx 2 • http://www.ripoffreport.com/PrivacyPolicy.aspx 3 • http://www.ripoffreport.com/ConsumersSayThankYou/TermsOfService.aspx 4 • http://www.ripoffreport.com/CorporateAdvocacy.aspx and 5 • http://www.ripoffreport.com/ConsumersSayThankYou/FalseReport.aspx 6 7 DEFENDANTS’ ACTIVITIES 20. Since at least November 2010, Defendants GODDEAU and GSCSC have 8 engaged in a campaign to willfully infringe Plaintiff’s ‘438 Copyright and to engage in 9 deceptive and unlawful commercial use of Plaintiff’s registered marks including, but not 10 limited to, the “RIP-OFF REPORT mark and the “DON’T LET THEM GET AWAY 11 WITH IT” mark. 12 21. Specifically, on November 5, 2010, Defendant GODDEAU registered the GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 domain name <REPORTARIPOFF.NET> which he used to create an imposter website 14 known as “Report A Ripoff” which contained large amounts of original material copied 15 from Plaintiff’s ‘438 Copyright. 16 22. Defendant GODDEAU use the site <REPORTARIPOFF.NET> to directly 17 compete with Plaintiff’s Rip-off Report site using the “RIP-OFF REPORT mark and the 18 “DON’T LET THEM GET AWAY WITH IT” mark. 19 23. Defendants GODDEAU’s use of copyrighted works from the Rip-off 20 Report site combined with the use of Plaintiff’s registered marks was, and is, likely to 21 cause confusion as to source or sponsorship. 22 24. On December 14, 2010, Plaintiff filed a Uniform Domain Name Dispute 23 Resolution Policy (“UDRP”) Complaint with the National Arbitration Forum against 24 “Report 25 <REPORTARIPOFF.NET> was confusingly similar to Plaintiff’s domain name and that 26 it was registered in bad faith. 27 28 25. A Rip Off, Inc.” which alleged that the domain name Immediately upon filing the UDRP action, Defendant GODDEAU began corresponding with Plaintiff alleging that he was not, in fact, the owner of 4 COMPLAINT 1 <REPORTARIPOFF.NET> and that the site was actually created by an “overseas client” 2 of Defendant GSCSC. Defendant GODDEAU also purported to “represent” Report A 3 Rip Off, Inc. during the UDRP proceeding. 4 26. In fact, at all times <REPORTARIPOFF.NET> was registered, owned, and 5 controlled by Defendant GODDEAU and not by an “overseas client” of Defendant 6 GSCSC. 7 27. On January 18, 2011, a panelist from the National Arbitration Forum issued 8 a decision in favor of Plaintiff and against Report A Rip Off, Inc., finding that the domain 9 name <REPORTARIPOFF.NET> was confusingly similar to Plaintiff’s trademarks and 10 that the name was registered and used in bad faith. 11 <REPORTARIPOFF.NET> was subsequently ordered transferred to Plaintiff. 12 28. As a result, the domain name One week after the UDRP proceeding was commenced relating to GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 <REPORTARIPOFF.NET>, on December 21, 2011 Defendant GODDEAU registered a 14 new domain name <REPORTARIPOFF.CO>. Upon registering this name, Defendant 15 GODDEAU subsequently transferred all or substantially all of the infringing contents of 16 <REPORTARIPOFF.NET> to his new page at <REPORTARIPOFF.CO>. 17 29. As was true of <REPORTARIPOFF.NET>, Defendants GODDEAU and 18 GSCSC used the website located at <REPORTARIPOFF.CO> to unlawfully and 19 willfully infringe Plaintiff’s ‘438 Copyright and to unlawfully infringe Plaintiff’s 20 registered trademarks including the “RIP-OFF REPORT” mark and the “DON’T LET 21 THEM GET AWAY WITH IT” mark. 22 30. As of May 10, 2011, the site <REPORTARIPOFF.CO> continues to 23 unlawfully infringe Plaintiff’s ‘438 Copyright and to unlawfully infringe Plaintiff’s 24 registered trademarks including the “RIP-OFF REPORT” mark and the “DON’T LET 25 THEM GET AWAY WITH IT” mark. 26 31. Without Plaintiff’s permission and without any lawful right to do so, 27 Defendants 28 <REPORTARIPOFF.CO> site which incorporate Plaintiff’s registered trademark in the GSCSC and GODDEAU have 5 COMPLAINT created metatags for their 1 mark “RIP-OFF REPORT” for the purposes of misleading consumers who are attempting 2 to locate Plaintiff’s website by causing them to be directed to Defendant’s site. 3 32. As of May 10, 2011, the keyword metatags used by the <REPORTARIPOFF.CO> 5 content="anonymous blogging, anon blogging, anonymous, anon blog, free, blogging, 6 free blogging, free anonymous blogging, rip-off, ripoff, rip off, Rip-Off Report, report, 7 reports, ripped off, rip-offs, rip offs, Ripoff Report, rip off report, scam, scams, scammed, 8 scamming, Scammer, scammers, scam websites, Fearless Blogging, fraud, frauds, review, 9 reviews, Richard Goddeau GSCSC, complaint, complaints, Complaints Board, consumer, 10 consumers, consumer complaint, consumer complaints, consumer reports, customer 11 report, customer reports, company, companies, attorney, attorneys, Auto Dealers, 12 business, Retail Stores, news, websites, law, laws, law firm, law firms, lawsuit, lawsuits, 13 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 4 mail order, politicians, civil rights, publications, gripe, Healthcare, individual, 14 individuals, insurance, forum, GSCSC, gscsc.net, Global Software, Home Builder, real 15 estate, lemon, defect, defective, city government, victim, victims, state government, 16 federal government"/>”. Defendants GSCSC and GODDEAU created these tags for the 17 specific purpose of creating confusion among consumers searching for Plaintiff’s genuine 18 website. site are as follows: “<meta name="keywords" 19 COUNT 1 INFRINGEMENT OF COPYRIGHT — 17 U.S.C. §§ 106, 501(a) 20 (Against Defendants RICHARD GODDEAU and GSCSC) 33. 22 23 Plaintiff incorporates herein by reference each and every allegation set forth 34. 21 Defendants GODDEAU and GSCSC have violated Plaintiff’s exclusive above. 24 rights under 17 U.S.C. § 106(1) (direct copying) by copying Plaintiff’s works without 25 permission. 26 35. Defendants GODDEAU and GSCSC have violated Plaintiff’s exclusive 27 rights under 17 U.S.C. § 106(3) (distribution) by distributing Plaintiff’s works without 28 permission 6 COMPLAINT 1 2 36. Defendants GODDEAU and GSCSC have violated Plaintiff’s rights under 17 U.S.C. § 106(5) (display) by publicly displaying Plaintiff’s works without permission. 3 37. Plaintiff is informed and believes that the foregoing acts of infringement 4 have been willful, intentional, and in disregard of and with indifference to the rights of 5 Plaintiff. 6 38. Defendants GODDEAU’s and GSCSC’s infringing activities were not 7 authorized by Plaintiff and were performed without Plaintiff’s knowledge, consent, or 8 permission. 9 10 39. done for Defendants’ financial gain. 11 12 40. Defendants GODDEAU’s and GSCSC’s infringing activities have caused Plaintiff to incur actual damages of not less than $150,000. 13 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 Defendant GODDEAU’s and GSCSC’s infringing activities were and are 41. As the result of Defendants GODDEAU’s and GSCSC’s willful 14 infringement of Plaintiff’s exclusive rights, Plaintiff is entitled to recover from 15 Defendants its actual damages pursuant to 17 U.S.C. § 504(b) or statutory damages 16 pursuant to 17 U.S.C. § 504(c), whichever is greater. 17 42. As the result of Defendants GODDEAU’s and GSCSC’s infringement of 18 Plaintiff’s registered works, Plaintiff further is entitled to attorneys’ fees and costs 19 pursuant to 17 U.S.C. § 505. 20 21 COUNT 2 INDUCING INFRINGEMENT OF COPYRIGHT — 17 U.S.C. §§ 106, 501(a) (Against Defendants RICHARD GODDEAU, GSCSC, INC. and DOES 1–10) 43. 23 24 25 26 Plaintiff incorporates herein by reference each and every allegation set forth 44. 22 Defendants GODDEAU and GSCSC have engaged in multiple acts of above. direct infringement of Plaintiff’s exclusive rights granted under the Copyright Act. 45. In addition, Defendants GODDEAU and GSCSC have created a “PHP 27 Clone Script” (the “PHP SCRIPT”) which Defendant GODDEAU has marketed and 28 distributed for the express purpose of promoting and inducing third parties to infringe 7 COMPLAINT 1 Plaintiff’s copyrighted works. The PHP Script is a software tool designed to permit a 2 user to copy the entire contents of a website such as Plaintiff’s Rip-off Report site. 3 46. Through their website <GSCSC.NET> and in various YouTube videos and 4 other methods, Defendants GODDEAU and GSCSC have actively promoted the use of 5 the PHP SCRIPT as a tool for “emulating” (i.e., unlawfully infringing) Plaintiff’s 6 copyrighted works. 7 47. Defendant GODDEAU claims to have sold 1,500 copies of the PHP 8 SCRIPT for up to $40,000 per copy to third parties seeking to infringe Plaintiff’s 9 copyrighted works. 10 48. Although Plaintiff is informed and believes that no third parties have actually purchased or used the PHP SCRIPT and that Defendants GODDEAU and 12 GSCSC are solely responsible for infringing Plaintiff’s rights via their websites 13 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 11 <REPORTARIPOFF.NET> and <REPORTARIPOFF.CO>, to the extent that any third 14 party has used the PHP SCRIPT to infringe Plaintiff’s works, Defendants GODDEAU 15 and GSCSC and DOES 1–10 are vicariously liable for the infringing acts of such third 16 parties to the extent that they created, marketed and distributed the PHP Script with the 17 object of promoting its user to infringe Plaintiff’s copyright. 18 49. As the result of Defendants GODDEAU and GSCSC and DOES 1–10 19 vicarious infringement of Plaintiff’s exclusive rights, Plaintiff is entitled to recover actual 20 damages pursuant to 17 U.S.C. § 504(b) or statutory damages pursuant to 17 U.S.C. § 21 504(c), whichever is greater, for each worked infringed. Plaintiff is further is entitled to 22 attorneys' fees and costs pursuant to 17 U.S.C. § 505. 23 24 50. Pursuant to 17 U.S.C. § 502, Plaintiff is further entitled to preliminary and permanent injunctive relief against Defendants’ infringing activities. 25 26 // 27 // 28 // 8 COMPLAINT 1 COUNT 3 TRADEMARK INFRINGEMENT — 15 U.S.C. § 1114 (Against RICHARD GODDEAU and GSCSC, Inc.) 2 3 4 51. 5 contained herein. 6 52. “RIP-OFF REPORT” is a valid, protectable trademark. 7 53. “DON’T LET THEM GET AWAY WITH IT” is a valid, protectable 8 trademark. 9 54. 10 11 Plaintiff incorporates herein by reference each and every allegation Plaintiff owns “RIP-OFF REPORT” and “DON’T LET THEM GET AWAY WITH IT” as its trademarks. 55. Defendants GODDEAU and GSCSC used Plaintiff’s marks, or marks confusingly similar thereto, without the consent of Plaintiff in a manner that is likely to 13 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 12 cause confusion among ordinary consumers as to the source of the services offered by 14 Plaintiff and by Defendants. 15 COUNT 4 UNFAIR COMPETITION/INITIAL INTEREST CONFUSION TRADEMARK INFRINGEMENT — 15 U.S.C. § 1114 (Against RICHARD GODDEAU and GSCSC, Inc.) 16 17 18 19 20 21 22 23 24 25 26 27 28 56. Plaintiff incorporates herein by reference each and every allegation contained herein. 57. “RIP-OFF REPORT” is a valid, protectable trademark. 58. “DON’T LET THEM GET AWAY WITH IT” is a valid, protectable trademark. 59. Plaintiff owns “RIP-OFF REPORT” and “DON’T LET THEM GET AWAY WITH IT” as its trademarks. 60. By using the “RIP-OFF REPORT” mark in both its content and in metatags associated with the <REPORTARIPOFF.CO> site, Defendants GODDEAU and GSCSC have infringed Plaintiff’s trademark without the consent of Plaintiff in a manner 9 COMPLAINT 1 calculated to capture initial consumer attention and to direct such attention to the 2 <REPORTARIPOFF.CO> site at the expense of viewers looking for the Rip-off Report 3 site. 4 61. Defendants’ conduct constitutes unfair competition and initial interest 5 confusion in violation of Plaintiff’s rights under the Lanham Act and under the common 6 law. 7 COUNT 5 INJUNCTIVE RELIEF — 17 U.S.C. § 502(a) (Against All Defendants) 8 9 62. 11 12 GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Plaintiff incorporates herein by reference each and every allegation set forth 63. 10 In addition to the past violations of Plaintiff’s rights identified above, above. Defendant GODDEAU has repeatedly threatened to engage in further unlawful attacks against Plaintiff and in violation of Plaintiff’s rights. Among other things, on December 28, 2010, Defendant GODDEAU sent an email in which he threatened to use his PHP Script to further violate Plaintiff’s rights as follows: So, it doesn't matter how many sites get shut down, more can quickly be cloned in a matter of minutes, and relaunched on new client side sites within minutes as well. We have the ability to launch, clone, and duplicate all within one central place, build sitemaps, perform search engine listings, RSS feed submissions, social network listings, and getting the information on the top listings of most search engines within hours of relaunch. In addition, we have the ability to put any site at its previous state, and search engine status, even if moved to other clone domains. We already have this system in place on over 5000 domains, and all it takes from our central location, is a single signal, and a few commands, and these can all be launched in one pass, or individually as required. The cross-linking of all modules, client side files, core engines, admin sections, and user interface sections of this package, along with cross-linking of all domains, and subdomains, makes it easy to keep everything updated, and sharing backlinks, and backlink juice, and SEO, all in one step, and in one platform. And, the licensing module allows us to turn on or off a site, and site license, and keep the system from running on specific domains, servers, and ISPs with one click of a mouse. As I indicated in my response, the system was developed by me, and what I have created is a powerful tool. 10 COMPLAINT 1 64. Upon information and belief, Defendant GODDEAU is financially 2 insolvent and unable to pay money damages to Plaintiff in an amount sufficient to 3 compensate Plaintiff for the harm caused by his unlawful conduct. 4 65. The conduct of each Defendant has caused, is causing and, unless enjoined 5 and restrained by this Court, will continue to cause Plaintiff great and irreparable injury 6 that cannot fully be compensated or measured in money. 7 66. Plaintiff has no adequate remedy at law. 8 67. Pursuant to 17 U.S.C. §§ 502(a) and 503, Plaintiff is entitled to preliminary 9 and permanent injunctive relief prohibiting each Defendant from further infringing 10 Plaintiff’s copyrighted works. 11 WHEREFORE, Plaintiff prays for judgment against each Defendant as follows: 12 1. For Plaintiff’s actual damages and Defendants’ profits, or statutory GINGRAS LAW OFFICE, PLLC 4072 EAST MOUNTAIN VISTA DRIVE PHOENIX, ARIZONA 85048 13 damages, as Plaintiff may elect, for infringement of each copyrighted work pursuant to 14 17 U.S.C. § 504; 15 2. For statutory and/or treble damages pursuant to 15 U.S.C. § 1117; 16 3. For injunctive relief pursuant to 17 U.S.C. §§ 502(a) and 503; 17 4. For Plaintiff’s costs in this action pursuant to 17 U.S.C. § 504 and/or 15 18 19 U.S.C. § 1117(a); 5. 20 For Plaintiff’s reasonable attorneys’ fees incurred pursuant to 17 U.S.C. § 504 and/or 15 U.S.C. § 1117(a); 21 6. 22 DATED May 10, 2011. For such other and further relief as the Court may deem just and proper. 23 GINGRAS LAW OFFICE, PLLC 24 /S/ David S. Gingras David S. Gingras Attorneys for Plaintiff XCENTRIC VENTURES, LLC 25 26 27 28 11 COMPLAINT

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