Jessica McKinney | Bloomberg Law Perfect 10, Inc. v. Megaupload Ltd., No. 11-CV-00191, 2011 BL 195218 (S.D. Cal. July 27, 2011) In an action filed by adult entertainment company Perfect 10, Inc. against Megaupload Ltd., the operator of various "cyberlocker" websites, and its founder, the U.S. District Court for the Southern District of California granted in part and denied in part defendants' motion to dismiss. Notably, and in contrast to the recent decision in Disney Enterprises, Inc. v. Hotfile Corp., No. 11-CV-20427, 2011 BL 182923 (S.D. Fla. July 8, 2011), the court found that Perfect 10 plausibly alleged volitional conduct by Megaupload, and thus allowed Perfect 10's direct infringement claim to proceed. The court also allowed Perfect 10's contributory infringement claim to proceed, finding that Perfect 10 sufficiently pleaded specific knowledge of infringement, as well as its unfair competition and trademark dilution claims. However, the court dismissed without prejudice Perfect 10's vicarious infringement, trademark infringement, and publicity rights claims.
Perfect 10 Sufficiently Pleaded Volitional Conduct for Direct Infringement Claim
Contributory Infringement Claim Allowed to Proceed
Vicarious Infringement Claim Dismissed Without Prejudice
State Law Claims
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