* T h i s d i s po s it i o n i s n ’t a p p r o p r i a t e f

o r p u b l i ca t i o n an d i s n ’t p r e c ed e nt

e x c e p t a s p r o v i d e d b y 9 t h C i r

. R. 3 6

- 3. N O T F O R P U B L I C A T I ON

U N I T E D S T AT E S C O U R T O F A P P E A LS

F O R T H E N I N T H C I R C U IT

M I C R OH I T S

, I N C.

, a C a l i f o r n ia

c o r p o r a t i o n,

P l a i n t i ff

- A p pe l l a n t,

a nd

R O N A LD M A G NE S S

, a n i n d i v i d u a l,

P l a i n t i ff,

v.

D E E P D I S H P R O D U C T I O N S

, I N C

. , a

D e l a w a r e co r p o ra t i o n,

D e f en d an t

- A pp e ll e e. N o

. 1 1

- 5 6 4 11

D

. C. N o

. 2 : 1 0

- c v

- 0 0 0 3 6

- P A -E

M E M O R A N D UM *

A pp e a l f r o m t he U n it e d S t a t e s D i s tr i c t C o u rt

f o r t h e C e n tr a l D i s tr i c t o f C a l if o r n ia

P e r c y A n d e rs o n

, D i s tr i c t J u d g e

, P r e s i d i ng

A r g u e d a n d S u b m i tt e d F e b r u a r y 1 3

, 2 013

P a s a de n a

, C a l if

o r n ia 

# F I L ED

F EB 27 2013

M O L L Y C

. D W YE R

, C L E RK

U

. S. C O U R T O F A PPEA LSp a ge 2

** T he H on o r a b l e J ed S

. R ak o ff

, S e n i o r D i s t r i c t J u d g e f

o r t he U

. S.

D i s t ri c t C o u r t f

o r t h e S o u t h e r n D i s t

r i c t o f N e w Y o r

k

, s i tt i ng b y d e s i g na t i o n. B e f o r e: K O Z I N S KI

, C h i e f J u d g e

, S I L V E R M AN

, C i r cu i t J u d g e

, a n d

R A K O FF

, S e n i o r D i s tri c t J u dg e. **

1. W e h av e j u r i s d i c t i o n o v e r t h e d e n i a l o f M i c r o h i t s’ s m o t i o n t o w i t h d r aw

i t s m o t i o n f

o r v o l un t a

r y d i s m i s s a l

. M i c r o h it s ’ s a p p e a l o f t h i s r u l i n g w a s t i m e l y

.

F ed R

. A pp

. P

. 4 ( a )( 1 )

. I t a l s o s u f f e r e d s u f f i c i en t i n j u r y t o es t a

b li s h A r ti c l e III

s t an d i n g b e ca u s e t h e d i s t

r i c t c ou r t d i s m i s se d t he c a s e w it h p r e j u d i c e

, e v e n t h o u gh

M i c r o h it s h ad r e q u es t ed d i s m i s s a l w i t h o u t p r e j u d i c e

. C f. U n i o i l

, I nc. v

. E

. F.

H u t t on & C o

., I n c.

, 8 0 9 F

. 2 d 5 4 8

, 5 5 6 ( 9 t h C i r

. 1 9 8 6 )

.

2. W h e n g r an t i n g a m o t i o n f o r v o l un t a

r y d i s m i s sa l

, a d i s t ri c t co u rt m ay

i m p o se “ t e r m s t h a t [it] c o n s i d e rs p r op e r

. ” F e d

. R

. C i v

. P

. 4 1 ( a ) ( 2 )

. T h es e t e r ms

m a y i n c l u d e t h a t t h e d i s m i s sa l b e w i t h p r e j u d i c e

. S ee B u r n e tte v

. G o d s h a ll

, 8 2 8 F.

S up p

. 1 4 3 9

, 14 4 3 ( N. D

. C a l

. 1 9 9 3 )

, a f f’ d s u b n o m. B u r n e tte v

. L o c k h ee d M i s s il es

& S pa c e C o.

, 7 2 F

. 3 d 7 6 6 ( 9 t h C i r

. 1 9 9 5 )

. W h e r e a p l a i n t i ff “ k n o w s o r h a s r e a s on

t o k n o w t h a t [ i t] m ay w it h d r a w [ i t s] m o ti o n f o r d i s m i s s a l

, ” i t “ w i ll b e d e e m e d to

h a v e c o n se n t e d t o t h e c o n d i t i o n s

. . . u n l e s s [i t ] w it h d r a w s [it s ] m o t i o n w it h i n a

r e as o na b l e ti m e

. ” U n i o il

, 8 0 9 F

. 2 d a t 55 5

. M i c r o h it s w as r e p r es e n t e d b y c o u n s e l,

a n d s o i t s h o u l d h a ve k no w n o f it s r i g h t t o w it h d r a w i t s m o ti o n

. S ee B e a rd v.p a ge 3

S he e t M e t a l W o r

k e rs U n i o n L o c a l 1 50

, 9 0 8 F

. 2 d 4 7 4

, 4 7 6

– 7 7 ( 9 t h C ir

. 19 9 0 )

.

N ev e rt h e l e ss

, it

w a it e d m o r e t h a n t w o m on t h s a ft e r e n tr y o f t h e d i s m i s sa l o r d e r to

f i l e it s m o t i o n t o w i t h d r a w, a n d m o r e t ha n t h r ee m o n t h s a f t e r i t k n e w t h e co u rt

w as

c o n s i d e ri n g d i s m i ss a l w i t h p r e j u d i ce

. T h e d i s t ri c t co u rt d i d n ’t a b u s e it s d i s c r e t i on

i n d e n y i n g t h e m o ti o n a s u n t i m e l y.

3. W e a l s o h a v e j u r i s d i c t i o n o v e r t h e d i s t ri c t co u rt ’ s a w a r d o f a t t o r ne y ’s

f e es

. 2 8 U

. S

. C

. § 12 9 1

. U n d e r t h e C o p y ri g h t A c t

, a d i s t ri c t c o u rt h a s d i s c r e ti o n to

a w a r d f e e s t o a p r e v a i li n g p a rt y w h e n d o i n g s o w o u l d f u rt h e r t h e p u r

p o s e s o f t he

A c t

. 1 7 U

. S

. C. § 5 05 ; P e r f ec t 1 0

, I n c. v

. C C B il l L LC

, 4 8 8 F

. 3 d 11 0 2

, 1 1 2 0 ( 9 th

C ir

. 20 0 7 )

. T h e d i s tr i c t c o u r t ’s o v e r a r c h i n g r a ti o n a l e f

o r a w a r d i n g f e e s ag a i n st

M i c r o h it s w a s i t s b e li e f t ha t M i c r o h i t s f a i l e d t o ex e r c i se d u e d i l i g e n c e in

d i s c ov e ri n g t h a t a t h ir d pa r t y h ad p u r c h a se d t h e c op y ri g h t b e f o r e i t d i d

. W h ile

M i c r o h it s k ne w t h e r e w as a p r e v i o u s co n v e y a n c e o f s o m e i n t e r es t i n t h e w o r k to

t h e t h i r d p a

rt y

, t he r e ’ s n o e v i d e n c e t h a t M i c r o h i t s kn e w t h e co n v e ya n c e w a s a f u ll

t r an s f e r o f t h e c o p y r i g h t

, r a t h e r t h an a l i ce n se

. T h e t h i r d pa r t y p u r c ha s e r n e v er

r e co r d e d t h e c o p y r i g h t w i t h t h e C o py ri g h t O f fi c e

, a n d D e e p D i s h d o e s n ’ t a r g ue

t h a t t h e co n v e ya n ce w as o t he r w i se p u b l i c l y av a i l a b l e

. N o r i s t h e r e a n y t h i n g i n t he

r e c o r d t h a t

w o u l d h a v e p u t M i c r o h it s o n n o ti c e t h a t it n e e d ed t o ob t a i n a c o p y ofp a ge 4

t h e tr a n s f e r d o c u m e n t

. T h e a w a

r d o f a t t o r ne y ’s f

e es u n d e r t h e se c i r c u m s t an c es

w o u l d u n d u l y c h i l l m e r it o ri o u s c o p y r i g h t l a w s u it s

, w h i c h w o u l d n ’t s e r v e t he

p u r p o s e s o f t h e C op y ri g h t A c t

. S ee F o ge r ty v

. F a n t a s y

, I nc.

, 5 1 0 U. S

. 5 1 7

, 52 5

– 27

( 1 9 9 4 ).

D ee p D i s h ’ s b e l a t e d m o t i o n t o fi l e a s u p p l e m e n t a l b ri e f i s d e n i ed

. T he

d i s t r i c t c o u rt’ s d e n i a l o f t h e m o t i o n t o w i t h d r a w i s A FF I R M ED ; t h e a w a r d o f f ees

is R E V E R S ED

. N O C O S TS

.M i c r o h it s

, I n c

. v

. D ee p D i s h P r o d uc t i o ns

, 1 1

- 5 6 4 11

S I L V E R M A N, C ir c u i t J u d ge

, c o nc u rr i n g i n pa r t a n d d i s s e n t i n g i n pa

r t:

T en m o n t h s a ft e r t h e p l a i n t if f s b r o u g h t s u i t f

o r c o p y r i gh t i n f

ri n ge m e n t

–

a f t e r s u b s t a n t i a l d i sc o v e r y h a d b e e n c o n du c t e d a n d j u s t f o u r w e e k s b e f

o r e tr i a l w as

t o h a v e b e g u n

– p l a i n ti f

fs m o v e d t o v o l u n t a ri l y d i s m i ss t h e i r c o m p l a i n t b e c a u se,

t h ey s a i d

, t h ey d i sc o v e r e d t ha t t he y c o u l d n o t p r o v e t h a t t h e y o w n t h e c o p y r i g ht

o v e r w h i c h t h e y b r o u g h t s u it t o be g i n w i t h

. M ea n ti m e

, t h e d e f e nd a n t s i nc u rr ed

t e n s o f t h o u s an d s o f d o l l a r s i n a t t o r ne y s ’ f

ee s d e f e nd i n g t h e a c ti o n

. T h e n

, a f t er

d i s m i ss i n g i t s c a se

, p l a i n tif f M i c r o h i t s

, I nc

. fi l e d a n u n ti m e l y “ n o ti c e of

w it h d r a w a l ” o f i t s m o ti o n t o d i s m i s s

, c au s i n g t h e d e f en d a n t t o i n cu r s ti l l ad d it i o n al

a t t o r n e y s’ f

e e s.

A d i s t ri c t co u rt h a s d i sc r e t i on t o a w a r d a t t o r ne y s’ f e es i n a c o p y r i gh t c as e

,

P e r f e c t 1 0

, I n c

. v

. C C B ill L LC

, 4 8 8 F

. 3 d 1 1 0 2

, 1 1 2 0 ( 9 t h C i r

. 2 00 7 )

, a n d g i v e n t he

c i r c u m s t a n ce s h e r e

, d i d n o t ab u s e i t s d i s c r e ti o n i n d o i n g s o

. W it h a ll d u e r e s p e c t,

m y co l l e a gu e s a

r e e ff e c t i ve l y r e v i e w i n g t h e a w a r d d e n o v o

. I j o i n t h e m a

j o r i t y in

a f fi r m i n g t h e d i s t ri c t co u rt ’ s d e n i a l o f t h e M i c r o h i t s’ b e l a t e d n o t i c e o f w i t h d r a w a l,

b u t d i ss e n t f

r o m t h e r e v e r sa l o f t h e a tt o r n e y s’ f e e a w a r d

. I w o u l d a f

fir m t he

d i s t r i c t c o u rt i n f

u l l. 

# F I L ED

F EB 27 2013

M O L L Y C

. D W YE R

, C L E RK

U

. S. C O U R T O F A PPEA LS