Opower, Inc. v. Efficiency 2.0, LLC

Filing 1

COMPLAINT against Efficiency 2.0, LLC Filing fee: $ 350, receipt number 0101-3670821 (Fee Status: Filing Fee paid), filed by Opower, Inc.. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Civil Cover Sheet Civil Cover Sheet, # 6 Civil Cover Sheet Category Form, # 7 Civil Cover Sheet Form Ao121)(Karol, Peter) (Attachment Civil Cover sheet and Category sheet replaced on 11/14/2011 - changed from fillable to non-fillable format) (MacDonald, Gail).

UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS

OPOWER, INC.
Plaintiff,
v.
EFFICIENCY 2.0, LLC
Defendant.

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Civil Action No.______________
TRIAL BY JURY REQUESTED

COMPLAINT FOR COPYRIGHT INFRINGEMENT,
UNFAIR COMPETITION AND UNFAIR AND DECEPTIVE TRADE PRACTICES
Plaintiff Opower, Inc., by and through its undersigned counsel, for its Complaint against
Defendant Efficiency 2.0, LLC, states and alleges as follows:
PARTIES
1.

Plaintiff Opower, Inc., formerly known as Positive Energy, Inc., is a corporation

organized under the laws of Delaware, with a principal place of business located at 1515 N.
Courthouse Rd., 8th Floor, Arlington, Virginia 22201 (“Opower”).
2.

Opower is a leader and innovator in the field of home energy usage reporting. In

particular, Opower is well known for its signature Home Energy Reports, paper reports mailed
periodically to residents. These Home Energy Reports, for which Opower has attained multiple
copyright registrations, allow a resident to compare his or her own energy consumption with that
of similarly situated neighbors. The reports are designed in an easy-read, visually compelling
format, and have been shown to reduce home energy consumption by substantial amounts.
Opower has achieved marked commercial success with sales of its Home Energy Reports.
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3.

On information and belief, Defendant Efficiency 2.0, LLC is a limited liability

company organized under the laws of Delaware, with a principal place of business located at 165
William St, Floor 10, New York, New York 10038 (“E2.0”).
4.

E2.0 entered the paper home energy reporting business after Opower’s rise to

prominence.
5.

E2.0 and Opower are direct competitors.

6.

As detailed below, E2.0 recently launched a report nearly identical to Opower’s

signature Home Energy Report. This report infringes Opower’s copyrighted works, and causes
consumers to be confused into thinking that they are Opower’s own reports.
7.

Opower brings this complaint for copyright infringement, federal unfair

competition and unfair and deceptive trade practices under Massachusetts law to put an
immediate end to E2.0’s infringing and confusing campaign.
JURISDICTION AND VENUE
8.

This action arises, in part, under the Copyright Laws of the United States, 17

U.S.C. §501 et seq. and Federal Unfair Competition Law, 15 U.S.C. § 1125(a). Therefore, the
Court has subject matter jurisdiction under 28 U.S.C. §§ 1331 (federal question) and 1338
(copyright and trademark and unfair competition claims) and 1121 (Lanham Act claims).
9.

The Court also has subject matter jurisdiction under 28 U.S.C. § 1332 because the

suit is between parties of different states and the amount in controversy exceeds seventy-five
thousand dollars ($75,000).
10.

This Court has jurisdiction over the state law claim under the doctrine of

supplemental jurisdiction under 28 U.S.C. § 1367.

The state law claim arises from or is

substantially related to the same acts giving rise to the federal claims.

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11.

This Court has personal jurisdiction over Defendant E2.0 for the reason that E2.0

conducted and continues to conduct substantial business in the Commonwealth of Massachusetts,
and a substantial part of the events or omissions giving rise to the claims occurred in this District.
Among other things, E2.0 regularly supplies its accused Energy Savings Reports to utility
company customers in Massachusetts. It has also contracted with the utility company Western
Massachusetts Electric Company (“WMECO”), a Massachusetts corporation headquartered in
Massachusetts, to provide its home energy reporting services to WMECO’s Massachusetts
customers. E2.0 has engaged in a regular, continuous and systemic course of business in this
judicial district and has caused in this district and elsewhere harm to Opower that is alleged in
this complaint.
12.

Venue in this district is proper under 28 U.S.C. § 1391(b) and (c) and 1400(a)

because a substantial part of the infringing activity and unfair competition occurred and
continues to occur in the District of Massachusetts, and E2.0 is amenable to personal jurisdiction
in this district.
FACTUAL BACKGROUND
13.

Opower was founded in 2007 with the goal of finding a practical way to engage

residential energy users to reduce their home energy consumption on a large scale.
14.

Opower envisioned a report that would be sent on a regular basis to the customers

of utility companies, and which would permit residential energy users to readily digest their own
energy use and to understand their consumption relative to that of neighbors with like homes
(i.e., square footage, heat type, etc.).
15.

After months of drafting, in October 2007, Opower completed the first draft of its

report.

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16.

Opower continued to revise the design of its report over the next three months,

until finally, in January 2008, it settled upon a final report.
17.

Opower registered this final version of its Home Energy Report with the

Copyright Office in September 2009, as indicated on registration certificate number VA 1-692228. It also registered several later derivative reports with the Copyright Office, as indicated on
registration certificate numbers TX 7-435-604 and TX 7-435-609 issued by the United States
Copyright Office (collectively, the foregoing being the “Registered Reports”). True and correct
copies of these certificates for the Registered Reports are attached as Exhibits A through C,
respectively.
18.

Opower’s reports (known generally as Home Energy Reports) have been

extremely commercially successful. Opower now sends out Home Energy Reports on behalf of
60 utility companies across the country, including eight of the ten largest, reaching about 2.9
million households. Close to half a million customers in Massachusetts alone receive the reports,
and Opower has printed over 19 million reports to date nationwide. Opower’s success has been
recognized by mainstream media, environmental groups, and even the nation’s political leaders.
19.

Opower’s Home Energy Reports embody a unique style, signature design, and

overall look-and-feel which are instantly recognizable. Opower’s reports have become well
known and distinctive to utility companies and their customers—end users of energy provided by
utility companies. These consumers and potential consumers have come to associate the unique
style, signature design, and overall look-and-feel of Opower’s proprietary Home Energy Reports
with a single source.

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20.

As a result of the unique style, distinctive brand, and innovative designs of

Opower’s Home Energy Reports, Opower has become a well-known single source associated
with unique and innovative home energy comparison reports.
Defendant’s Unlawful Conduct
21.

E2.0 was founded in late 2008.

22.

E2.0 contracts with utilities to, among other things, send periodic paper reports to

the utilities’ customers.
23.

E2.0’s paper reports, which it calls “Energy Savings Reports,” compare a user’s

energy consumption with that of similarly situated neighbors.
24.

On information and belief, E2.0 is responsible for the creation, printing and

distribution to the utilities’ customers of the paper reports.
25.

On information and belief, E2.0 contracts with vendors (including DataMail, Inc.)

for the printing and mailing of its reports.
26.

On information and belief, E2.0 has been sending out paper reports to WMECO

customers in Massachusetts as part of an energy savings pilot program.
27.

On information and belief, Exhibit D shows a model of report that is being sent to

WMECO customers on a regular basis as part of the energy savings pilot program.
28.

On information and belief, E2.0 is responsible for the regular printing and

distribution of individualized versions of the report shown at Exhibit D to WMECO’s customers.
29.

E2.0 knew of Opower prior to the creation of the report shown at Exhibit D.

30.

On information and belief, the designers of the report shown at Exhibit D had

viewed one or more of the Registered Reports prior to creating the report shown at Exhibit D.

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31.

The report shown at Exhibit D is nearly identical to one or more of the Registered

Reports. The substantial similarities include, but are not limited to, overall layout and blocking,
use of open space, use of language, use of font, bolding, accents and color, as well as selection
and presentation of specific graphs and information.
32.

On information and belief E2.0 is using, or intends to use, data collected from the

WMECO Western Mass Saves pilot study to support claims that E2.0’s energy savings programs
are effective.
33.

E2.0 and Opower attend the same trade shows.

34.

Opower and E2.0 compete for the same utility customers.

35.

Opower is being irreparably harmed by E2.0’s infringement, unfair competition

and unfair trade practices.
FIRST CLAIM FOR RELIEF
COPYRIGHT INFRINGEMENT (17 U.S.C. § 101 et seq.)
36.

Opower restates and realleges the proceeding paragraphs as if fully set forth

37.

The Registered Reports are original works of authorship, embodying

herein.

copyrightable subject matter, and copyrighted under the laws of the United States.
38.

Opower is the sole and exclusive owner of all rights, title and interest in and to the

Registered Reports.
39.

The copyrights in the Registered Report and the facts stated in the certificates are

prima facie valid under 17 U.S.C. § 410(c).
40.

By their actions alleged above, E2.0 has infringed Opower’s copyrights in one or

more of the Registered Reports in violation of the Copyright Act, 17 U.S.C. § 501, by producing,

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displaying and distributing reports, including the report shown at Exhibit D, which are the same,
strikingly, and/or substantially similar to the Registered Reports (the “Accused Reports”).
41.

E2.0 had access to one or more of the Registered Reports prior to the production

and distribution of the Accused Reports.
42.

E2.0 or those acting in privity with E2.0 copied one or more of Opower’s

Registered Reports in creating the Accused Reports.
43.

On information and belief, E2.0’s acts of infringement have been taken willfully,

in knowing disregard, and with intentional indifference with respect to Opower’s rights.
44.

E2.0’s copyright infringement and the threat of continuing and future

infringement have caused, and will continue to cause, repeated and irreparable injuries to
Opower.
45.

Opower’s remedies at law are not adequate to compensate for the injuries

imposed by E2.0’s infringements.
46.

Therefore, Opower requires a preliminary and permanent injunction prohibiting

E2.0, its agents, employees and other persons acting in conspiracy, concert or participation with
it from infringing, in any manner, Opower’s copyrights, and from inducing, aiding, causing or
contributing to such infringements by others, in violation of 17 U.S.C. § 502.
47.

As a direct and proximate result of E2.0’s infringement of Opower’s copyrights in

the Registered Reports, Opower has also suffered certain monetary damages.
48.

As a direct and consequential result of E2.0’s willful and intentional infringement

of Opower’s exclusive rights under the Copyright Act, 17 U.S.C. § 501, Opower is entitled to
recover from E2.0 such actual damages in an amount to be determined at trial, including
Opower’s lost profits and/or all of E2.0’s profits gained by its infringement, or at Opower’s

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election, statutory damages including damages for willful infringement of up to $150,000 for
each infringement, attorneys’ fees, costs, and injunctive relief.
SECOND CLAIM FOR RELIEF
FEDERAL UNFAIR COMPETITION 15 U.S.C. § 1125(a)
49.

Opower restates and realleges the proceeding paragraphs as if fully set forth

50.

Due to the distinctive, unique style, design, and signature look-and-feel of

herein.

Opower’s Home Energy Reports, consumers exclusively associate the Home Energy Reports
with a single source.
51.

The Accused Reports produced and distributed by E2.0 are copies, variations,

simulations or colorable imitations of Opower’s Home Energy Reports and constitute false
designations of origin, and/or false representations that E2.0’s report is sponsored, endorsed,
licensed or authorized by, or affiliated or connected with Opower.
52.

Due to the distinctive nature of Opower’s Home Energy Reports, consumers are

likely to be confused as to the affiliation, connection, or association of E2.0 or its Accused
Reports with Opower and its Home Energy Reports.
53.

E2.0’s infringing conduct has occurred across state lines in interstate commerce.

54.

E2.0’s acts are further likely to cause confusion, mistake, or deception as to the

origin, sponsorship, or approval of E2.0’s Accused Reports.
55.

Upon information and belief, E2.0 is attempting to pass its Accused Reports off as

Opower’s Home Energy Reports in a manner calculated to deceive Opower’s customers and
members of the general public, in that E2.0 copied the Home Energy Report in an effort to make

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E2.0’s Accused Reports confusingly similar to the Home Energy Reports and/or pass off E2.0’s
Accused Reports as Home Energy Reports.
56.

Upon information and belief, E2.0 has knowingly created and distributed copies,

variations, simulations or colorable imitations of the Home Energy Reports with full knowledge
of Opower’s intellectual property rights in the Home Energy Reports. Upon information and
belief, E2.0’s infringement is willful and deliberate.
57.

E2.0’s acts are in violation of Section 43(a) of the Lanham Act, 15 U.S.C.

§ 1125(a).
58.

As a direct and consequential result of E2.0’s unlawful conduct, Opower has

suffered substantial monetary loss and harm to its business.
59.

E2.0’s conduct has caused and will continue to cause irreparable injury to Opower

unless enjoined by this court. Opower has no adequate remedy at law.
60.

As a direct and consequential result of E2.0’s willful and intentional

infringement, Opower is entitled to actual damages in an amount to be determined at trial,
including Opower’s lost profits and/or E2.0’s profits from infringement, treble damages,
attorneys’ fees, and injunctive relief.
THIRD CLAIM FOR RELIEF
VIOLATION OF MASSACHUSETTS REGULATION OF BUSINESS PRACTICES
FOR CONSUMERS PROTECTION ACT (MGL ch. 93A)
61.

Opower restates and realleges the proceeding paragraphs as if fully set forth

62.

E2.0’s acts have violated the Massachusetts Regulation of Business Practices for

herein.

Consumers Protection Act (MGL ch. 93A, §2), because E2.0 has engaged in conduct that utilized

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unfair methods of competition and unfair or deceptive acts or practices in the conduct of any
trade and commerce.
63.

E2.0 is attempting to pass its Accused Reports off as Opower’s Home Energy

Reports in a manner calculated to deceive Opower’s customers and members of the general
public, in that E2.0 copied or caused to be copied the Home Energy Reports in an effort to make
E2.0’s Accused Report confusingly similar to the Home Energy Reports and/or pass off E2.0’s
Accused Report as the Home Energy Reports.
64.

Consumers are likely to be confused, misled and/or deceived by E2.0’s conduct.

65.

Upon information and belief, E2.0 willfully engaged in deceptive trade practices

by knowingly creating copies, variations, simulations or colorable imitations of the Home
Energy Report with full knowledge of Opower’s intellectual property rights in the Home Energy
Reports.
66.

As a direct and consequential result of Defendant's unlawful conduct, Opower has

suffered substantial monetary loss and harm to its business reputation and goodwill.
67.

E2.0’s conduct has caused and will continue to cause irreparable injury to Opower

unless enjoined by this Court. Opower has no adequate remedy at law.
68.

As a direct and consequential result of E2.0’s willful and intentional deceptive

trade practices, Opower has been injured and brings this action to enjoin further violations and
recover double or treble damages, and attorneys’ fees and costs as permitted by the law.
PRAYER FOR RELIEF
WHEREFORE, plaintiff Opower requests that this Court:
A.

Declare that E2.0 has infringed Opower’s copyrights in the Registered Reports;

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B.

Declare that E2.0 has willfully infringed Opower’s copyrights in the Registered

Reports;
C.

Preliminarily and permanently enjoin E2.0, its agents, employees, officers,

directors, attorneys, successors, affiliates, subsidiaries and assigns, and all those acting in concert
or participation with E2.0, from
(a)

directly or indirectly infringing, in any manner, Opower’s copyrights, or

from inducing, aiding, causing, or materially contributing to any such infringement;
(b)

producing, distributing, displaying, advertising, or promoting the Accused

Reports or any other work that infringes Opower’s copyrights, intellectual property
rights, or any work substantially similar thereto or derived therefrom;
(c)

engaging in any other activity constituting unfair competition with

Opower, or constituting an infringement of Opower’s rights; and
(d)

aiding, assisting, or abetting any other party in doing any act prohibited by

the above paragraphs.
D.

Direct that E2.0 deliver for destruction all Accused Reports in its possession, or

under its control, or any other materials incorporating the Registered Reports or a colorable
imitation thereof.
E.

Direct that E2.0 file with the Court and serve upon Opower’s counsel within thirty

(30) days after entry of such judgment, a report in writing under oath, setting forth in detail the
manner and form in which E2.0 has complied therewith.

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F.

Award Opower such damages as it has sustained or will sustain by reason of

E2.0’s copyright infringement, or, in lieu thereof, should Opower elect, statutory damages in an
amount not less than $150,000 for each infringement, or for such other amount as may be proper
pursuant to 17 U.S.C. § 504(c); and/or from E2.0’s unfair competition, and unfair trade practices;
and pursuant to 15 U.S.C. § 1117 and MGL ch 93A awarding Opower an amount up to three
times the amount of the actual damages sustained as a result of E2.0’s violation of the Lanham
Act and MGL ch 93A.
G.

Order E2.0 to account for and pay over to Opower all gains, profits, property and

advantages derived by E2.0 by reason of E2.0’s copyright infringement, unfair competition, and
unfair trade practices;
H.

Award Opower such enhanced, exemplary and/or punitive damages as the court

finds appropriate for E2.0’s willful and intentional misconduct;
I.

Award Opower’s costs and disbursements incurred in this action, including

reasonable attorney’s fees, pursuant to 17 U.S.C. § 505, 15 U.S.C. § 1117 and MGL ch 93A;
J.

Award Opower prejudgment interest according to law;

K.

Award Opower other and further relief as this Court may deem just and proper.
Demand for Jury Trial

Pursuant to Federal Rule of Civil Procedure 38, Opower hereby demands a jury trial of
any issues in this action so triable.

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Dated: November 14, 2011

Respectfully submitted,
OPOWER, INC.
By Its Attorneys,
/s/Peter J. Karol/
Jack C. Schecter (BBO# 652349)
Peter J. Karol (BBO# 660338)
Nicole Rizzo Smith (BBO# 663853)
SUNSTEIN KANN MURPHY &
TIMBERS LLP
125 Summer Street
Boston, Massachusetts 02110
Telephone: [phone]
Facsimile: 617-443-0004
[e-mail]
[e-mail]
[e-mail]

03527/00506 1540492

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