SECOND DI VI SI ON

M I LLER, P. J.

, M ERCI ER, J.

, and SENI OR A PPELLA TE JUDGE PHI PPS

N O T IC E : M otions for r e c ons i de r a tion m us t be ph y sic a l ly r e ce iv ed i n our c le r k ’s offic e w ithin te n da y s of the da te of de c is ion to be de e m ed tim e ly file d.

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H I S

C O U R T. A LL FILIN G S M U ST B E S U B M I TTE D WITH IN

TH E TIM E S S E T B Y

O U R C O U R T R U LE S

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Januar y 29, 2021



# I n th e Co u r t o f

A p p eals o f

G eo r g ia

A2 0 A1 59 4 . EDIBLE IP, LLC v

. GOOGLE, LLC.

M E R C I E R , J u dg e.

Ed i b l e IP, LLC (“ Ed ib l e IP”) su ed Go o g l e, LLC (“ Go og l e”) fo r t h eft o f

p ers o n al p ro p ert y , co n vers i o n , m o ney h ad an d recei v ed

, an d ci v i l RICO 1 v io l at i on s

rel at i n g t o Go o g l e’ s al l eg ed u s e o f Ed i b l e IP’ s t rad e n a m e

. I n r e s p o n s e, Go o g l e

m o ved t o d i s m i s s t h e co m p l ai n t an d / o r t o co m

pel arb it rat i o n

. Th e t ri al co urt g ran t ed

Go o g l e’ s m o t i o n , co m

p el l ed t h e p art ies to arb i trat i o n, an d d i s m is s ed th e co m p l ai n t

.

Ed i b le IP ap p eal s . Fo r reas o n s t h at fo l l o w, we affi rm

.

On ap p eal fro m t he g ran t o r d en i al o f a m o ti on t o d is m i ss , we rev i ew t h e t ri al

co u rt ’ s ru l i n g d e n o v o , co n st ru i n g t h e al l eg at i o n s in t h e co m p l ai nt fav o rab l y t o t h e

1 Th e Geo rg i a RICO (Rack et eer In fl u en ced an d Co rru p t Org an i zat i o n s ) Act i s

co d ifi ed at OCGA § 1 6 -1 4 -1 et s eq

.cl ai m an t

. See Ma n z a na r es v. Ci t y of Br o o kh a ven , 35 2 Ga. Ap p. 2 9 3 (8 34 SE2 d 3 5 8 )

(2 0 1 9); Z-S

p a ce v. Da n t a n n a’s CNN Cen t er , 34 9 Ga. A p p

. 24 8 ( 8 2 5 S E2 d 6 2 8 )

(2 0 1 9). So v i ewed

, t h e co m p l ai n t al l eg es th at E d ib l e IP o wn s t h e t rad em ark s , t rad e

n am es , an d o t h er i n t el lect u al p ro p ert y as s o ci at ed wi t h E d i b l e Arran g em en ts

, a

b u s i n es s co n si s t i n g o f web s i tes an d “ b ri ck -an d -m o rt ar” fran ch is es t h at s el l

, am o n g

o t h er th i n g s , fl o ral -s h ap ed arran g em en t s o f fres h-cu t fru i t

. To s u p p ort t h es e web s it es

an d fran ch i s es , Ed i b l e IP l i cen s es t h e u s e o f i t s i n t el l e c t u al p ro p ert y to v ari ou s

en t i t i es

. Ed i b le IP, h o wev er, m ai n tai n s o wn ers hi p o f t h e in t el l ect u al p ro p ert y , wh i ch

i n cl u d es t h e t rad em ark / t rad e n am e “ Ed i b l e A r r a n g em en t s ,” as wel l as t h e g o o d wi l l

g en erat ed b y

t he b ran d

.

Go o gl e o perat es an in t ern et s earch en g in e t h at al l o ws in d iv i d u al s t o s earch fo r

i n fo rm at i o n b y t y

p i n g rel ev an t w o rd s i n t o a s earch bar. Us in g al g o ri t h m s t h at an al y ze

t h e s earch t erm s an d req u es t ed i n fo rm at i o n , Go o gl e ret u rn s “ o rg an i c” res u l t s o f t h e

q u ery o n a res u l t s p ag e. Acco rd i n g t o t h e co m p l ai nt

, G o o g l e m on et i zes it s s earch

en g in e b y “ s el l [i n g ]

. . . ‘ k ey wo rd s ’ ” t o ad v ert i s ers t h at “ t ri g g er ad v ert i s em en t s o n t h e

s earch res u l t s p ag e wh en Go o gl e u s ers s earch fo r t h e k ey wo rd t erm .”

Key wo rd ad vert i s i ng i s p u rch as ed t h ro ug h an a u c t i o n -l ik e p ro ces s , wi th

p ro s p ect i v e ad v ert i s ers b i d d i n g o n t erm s s ug g es t ed b y Go o g l e. Th e au ct i o n i n cl u d es

2g en eral t erm s li k e “ s h o es ” an d “ m o t h er’ s d ay g i ft ,” a s w e l l a s t rad e n am es s u ch as

“ Ed i b l e Arran gem en t s .” Go o g l e h as n ev er co n t ract ed wi t h Ed i bl e IP fo r t h e ri g h t to

u s e t h e Ed i b le Arran g em en t s trad e n am e, an d E d i b l e IP h as n ot o t herwi s e g i v en

Go o g l e p erm i s s i o n t o i n cl u d e i t s t rad e n am e i n t h e k ey wo rd ad v ert i si n g p ro g ram

.

Nev ert h el es s , Go o gle be ga n a uc tioning the tr a de na m e t o ad v ert i s ers i n ap p ro x i m at el y

2 0 1 1

. As d es cri b ed b y t he co m p l ai n t, Go o g le p l aces ad v e r t i s e m en ts p u rch as ed

t h ro u g h t h e k ey wo rd p ro g ram “ i n a m o re at t ract i v e l o cat i o n o n t he res u l t s p ag e t h an

i t s ‘ o rg an i c’ res u l t s i n an effo rt t o d ri v e co ns u m er b eh av i o r an d g et t h os e co n s u m ers

t o cl i ck o n t he ad rat h er t h an Go o g l e’ s ‘ o rg an ic’ res u l t s .”

Bas ed o n t h es e an d o t h er al l eg at i o n s, Ed ib l e IP s u ed Go o g l e fo r t h eft o f

p ers o n al p ro p ert y , co n v ers i on , m o n ey h ad an d recei ved , an d ci v i l RICO vi o l at i o n s

.

Go o g l e m o v ed t o di s m is s t h e co m p l ai n t, arg u i n g t h at an y cl ai m s al l eg ed b y Ed i b l e IP

n eed ed t o b e arb i t rat ed

, t h at a fo ru m s el ect i o n cl au s e dep ri v e d t h e t r i al co u rt o f

p ers o n al ju ri s d ict i o n o v er Go o g l e, an d th at t h e co m p l ai n t fai l ed to s t at e a cl ai m u p o n

wh i ch rel i ed co u l d be g ran t ed

. Go o g l e al s o req u es t ed t h at t h e t ri al co urt co m p el t h e

p art i es t o arb i t rat i o n.

Th e t ri al co u rt g ran ted t h e arb it rat i o n req u es t, d et erm in i n g t h at E d i bl e IP was

s u b ject t o an arb i t rat io n p ro v i s i o n ag reed t o b y on e of Ed ib l e I P ’s a f f i l i at es , wh i ch

3h ad accep t e d t h e t erm s an d co n d i t i o ns o f Go o g le’ s ad v ert i s i n g p ro g ram

. Th e t ri al

co u rt al s o fo u nd t h at a fo ru m s el ect i on cl au s e wi t h i n t h o s e t erm s an d co n d i t i on s

req u i red t h at t he l i t i g at i on b e fi l ed i n Cal i fo rn i a. Al t ern at i v el y , t he co u rt co n cl u d ed

t h a t t h e c o m

p l ai n t fai l ed t o st at e a cl ai m

. See OCGA § 9 -1 1 -1 2 (b ) (6 ). Ed i b l e IP

a p peal s , arg ui n g fi rs t t h at i t i s n o t b o u n d by th e arb it rat i o n an d fo ru m sel ect i o n

cl au s es accep t ed by i t s affi l iat ed co m p an y

. Ev en as s u m i n g, wi t h o u t d eci d i n g , t h at

Ed i b le IP i s co rr e c t i n t h at reg ard

, we ag ree w i t h t h e t ri al co u rt t h at E d ib l e IP’ s

co m p l ai n t d o es n ot s tat e a cl ai m fo r rel i ef.

A co m p l ai n t can b e d i s m i s s ed fo r fai l u re t o s t at e a cl ai m o n l y if i t s al l eg at i on s

“ d i scl o se wi t h cert ai n t y t h at th e cl ai m an t w o u l d n o t b e en t i t l ed t o rel i ef u n d er an y

s t at e o f p ro v ab l e f

act s as s ert ed i n s u p p ort t h ereo f.” Z-S p a ce , s u p ra at 2 5 0 (ci t at i o n

an d p u n ct u at i o n o m i t ted ). In ot her wo rd s , “ i f, wi t h i n t h e fram ewo rk o f t h e co m p l ai n t

,

ev i d en ce m ay be i n t ro d uced wh i ch wi l l s u s t ai n a g ran t o f r e l i ef t o t h e pl ai nt i ff, t h e

co m p l ai n t i s s u ffi ci en t .” Id

. (ci t at i o n an d p u n ct u at i o n o m it t ed ). W i t h t h i s s t an d ard in

m i n d , we rev i ew t h e s u ffi ci en cy o f each co u n t o f t h e co m p l ai n t

.

1

. Co u n t 1 al l eg es a cl ai m fo r t h eft o f p ers on al pro p ert y

. Pu rs u an t t o OCGA §

5 1 -1 0-6 (a), “ [a] n y o w n e r o f p ers o n al p ro p ert y s h al l b e au t h o ri zed t o b ri ng a ci v i l

act i on t o reco v er d am ag es fro m a n y p ers o n wh o

. . . co m m i t s a th eft as d efi n ed in

4Art i cl e 1 o f C h ap t er 8 o f Ti t l e 1 6 i n v o lv i n g t h e o w n er’ s p ers o n al p ro p ert y .”

S p e c i fi cal l y , Ed i b l e IP cl ai m s t h at Go o g l e co m m i tt ed t h eft b y t ak i n g as d efi n ed b y

OCGA § 1 6 -8 -2 , wh i ch p ro v id es :

A p ers o n co m

m i t s t h e o ffen s e o f t heft b y t ak i n g wh en h e u n l a w fu l l y

t ak es or, b ei n g i n l awfu l p o s s es s i o n t h ereo f, u nl awfu l l y ap p ro pri at es an y

p ro p ert y o f an o th er wi t h t h e i n t en t i o n o f d ep ri v i n g h i m o f th e p ro p ert y ,

reg ard l es s o f t h e m an n er i n wh i ch t h e p ro p ert y i s t ak en or ap p ro p ri at ed

.

Th e co m p l ai n t al l eg es t h at Go o gl e u nl a w fu l ly t o o k an d ap p ro p ri at ed Ed i b l e

IP’ s t rad e n am e an d as s oci at ed g o o d wi l l b y s el l i n g th at p ro p ert y t h ro u g h t h e k ey wo rd

a u ct i o n p ro g ram an d “ keep i n g t h e p ro ceed s fo r it s el f.” Al t h o u gh s u ch as s ert i o n s

a p p ear at fi rs t b l u s h t o al leg e a t h eft

, th e co m p lai n t’ s fact u al al l eg at io ns r e v e a l

o t h erwi s e. Go og l e h as n o t tak en Ed i b l e IP’ s t rad e n am e o r s o l d i t fo r p ro fi t

. Rat h er,

Go o g l e h as au ct i o n e d off t h e o p p o rt u n i ty t o ad v ert i s e o n t h e res u l t s p ag e p ro d u ced

wh en an i n d i v i d u al ty

p es t h e k ey wo rd ph ras e “ Ed i b l e Arran gem en t s ” in t o th e Go o g l e

s earch b ar.

As d es cri b ed b y E d i b l e IP, t h e k ey wo rd ad v ert is i ng p ro g ram al l o ws ad v ert i s ers

t h at s u cces s fu l l y b i d o n a k ey wo rd t o “ t ri gg er ad v ert i s em en ts o n t h e s earch res u l t s

p ag e wh en Go og l e u s ers s earch fo r t h e key wo rd term .” Ed i b l e IP co m p l ai n s t h at by

t y i n g p u rch as ed ad v ert is em en ts t o k ey wo rd s earch t erm s , “ Go o g l e’ s ad v ert i s i n g

5p ro g ram co n t ro l s w h at co n s u m ers s e e [ ] a n d

. . . seek s (o ft en su cces s fu l l y ) t o d ri v e

wh at co n s u m ers d o.” Ul t i m at el y , h owev er, th e ch al l en g ed co n d u ct i n vo l v es t h e s al e

an d p l acem en t o f ad v ert i s em en t s

.

Su ch co nd u ct d o es n ot c o n s t i t u t e a t ak i n g o r ap p ro p ri at i o n o f Ed i b l e IP’ s

p ro p ert y

. An d it d oes n o t “ d ep ri v e” Ed ib l e IP o f an y p ro p ert y

. W i t h i n t h e co n cep t o f

t h eft

, t h e t erm “ dep r i v e ” m ean s t o , wi t h ou t ju s ti fi cat i o n , “ wi t h h o ld p ro p ert y o f

an o th er p erm an en t l y o r tem p o rari l y ; o r

. . . d is p o s e o f t he p ro p ert y s o as to m ak e i t

u n l i k el y t h at t h e o w ner wi l l reco v er i t .” OCGA § 1 6 -8 -1 (1 ). N o t h in g i n t he co m p l ai nt

b ri n g s G o o g l e’ s u s e of k ey wo rd s wi t h i n t hi s d efi n i ti o n. O n t h e co n t rary , as n o t ed by

o n e fed eral co u rt , k ey wo rd ad v ert i s i n g i s

ak i n t o t h e pro d u ct p l acem en t m ark et i n g s t rat eg y em p l o y ed i n r e t ai l

s t o res , wh ere, fo r ex am

p l e, a d ru g s t o re pl aces i t s g en eri c pro d u ct s

al o n gs id e s i m il ar n at i o n al bran d p ro d u c t s t o cap it al i ze o n t h e l at t er’ s

n am e reco g ni ti o n

. Th e s p on s o red l i n k m ark et i n g s t rat eg y is th e

el ect ro n i c eq u i v al en t o f p ro d u ct p l acem en t i n a ret ai l s t o re.

Mer ck & Co . v. Med ip l a n Hea l t h Co n s u l t i n g , 4 3 1 FSu p p .2 d 4 2 5 , 4 2 7 (I) (S.D.N.Y.

2 0 0 6 ) (ci t at i o n o m i t ted ).

Creat i v e p l ead i n g can n o t co nv ert Go o g le’ s ad v ert i s i n g pro g ram i nt o a t h eft by

t ak i n g

. Ed i b l e IP h as n o t al l eg ed t h at i t h as a p ro p ri et ary i n teres t i n Go o g le’ s s earch

6res u l ts p ag es o r an y ri g h t t o co n t ro l t h e ad vert i si n g o n t h os e p ag es

. It cl ai m s o n l y t h at

i t o wn s t h e i n t el l ect ual pro p ert y as so ci at ed wi t h “ Ed i b l e Arran g em en t s

. ” Th e al l eg ed

“ s a l e” of t h at t erm fo r ad v ert i s i n g p l acem en t d o es n o t co ns t i t u t e t heft

. To fi n d

o t h e rwi s e wo u l d i m

pro p erl y b ro ad en cri m in al l i ab i l i t y

. See Ma ys v. S ta te

, 3 5 1 Ga.

Ap p

. 43 4

, 4 3 6 (2 ) (8 3 1 SE2 d 1 ) (2 0 1 9 ) (“ A cri m i n al s t at u te m u st b e co n s t ru ed s t ri ct l y

ag ai n s t cri m i n al l i a b i l i t y an d

, i f i t i s s u s cep t i b l e t o m o re t h an o ne reas o n ab l e

i n t erp ret at io n , th e i n terp ret at io n m o s t fav o rab l e t o t h e p art y faci n g cri m i n al l i ab i l i t y

m u st b e ad op t ed

. ”) (ci t at i o n an d p u n ct u at i o n o m i t ted ). Becau s e t h e fact s p l ed i n t h e

co m p l ai n t d em o n s t rat e t hat Ed i b l e IP i s n ot en t i t l ed t o rel i ef fo r t h eft b y t ak i n g , t h e

t ri al co u rt p ro p erl y

d i s m i s s ed Co u nt 1 . See g en eral l y Z-S pa ce , s u pra.

2

. We reach a s im i lar co n cl u s i o n as t o Co un t 2

, wh i ch al l eg es t h at Go o g l e’ s

k ey wo rd au ct i o n res u l t ed i n a co n v ers i o n o f Ed i b l e IP’ s i n t el l ect u al pro p ert y

. Un d er

OCGA § 5 1 -1 0 -1

, “ [t ] h e o wn er o f p ers o n al t y i s e n t i t l e d t o i t s po s s es s i o n

. An y

d ep ri v at i o n o f su ch p o s s es si o n i s a t o r t f o r wh i ch an act io n l i es .” Th e t o rt o f

co n vers io n “ i n v o l ves t h e un au t h o ri zed as s um p t i o n an d ex erci s e o f ri g h t o f o wn ers h ip

o v er p ers o n al p ro p ert y of an o th er, co n trary to t h e own er’ s ri g h t s .” W il l i a ms v

. G a

.

Dep t. o f Co r r ect io n s , 3 3 8 G a. Ap p

. 7 1 9

, 7 22 (2 ) (7 9 1 SE2 d 6 0 6 ) (2 01 6 ) (ci t at i o n an d

p u n ct u at i o n o m it t ed ).

7No n e o f t h e co m p l ai n t ’ s al l eg at i o n s s u gg es t t h at Go o g l e ex erci s ed o wn ers h ip

o v er Ed i b l e IP’ s i n t el l ect u al p ro p ert y

. Go o g l e si m p l y s o l d ad v ert i s i n g s p ace on se arch

res u l ts p ag es tri g g ered b y th e p h ras e “ Ed ib le Arran g em en t s .” Th e co m p l ai n t d o es n ot

s t at e a cl ai m fo r co n v ers i o n

. See IS P Al l i a n ce v. Ph

ys i o t h er a p y As so c. , 2 3 8 Ga. Ap p.

4 3 6

, 4 3 7 (1 ) (5 1 9 SE2 d 2 4 1 ) (1 9 9 9 ) (co un t ercl ai m fo r co n vers i o n p ro p erl y d i s m i s s ed

wh ere “ [a] s a m at t er o f l a w , n o co n v ers i o n o ccu rred ”); Tr u st Co

. Ba n k v. At l a n ta

S p eed s h o p Dr ag wa

y , 2 0 8 Ga. Ap p

. 8 6 7

, 8 6 9 ( 4 3 2 SE2 d 6 0 8 ) (1 9 93 ) (co m p l ai nt

s u b ject t o d i s m i s s al wh ere cl ai m an t “ d oes n o t h av e a reco gn i zab l e cl ai m ”).

3

. Ed i b l e IP’ s t h i rd cl ai m al l eg es t h at Go o g l e i s l i a b l e f o r m o n ey “ h ad an d

recei v ed ” i n co n n ect i o n wi t h t h e k ey wo rd ad vert i s i n g p ro g ram

. Sp eci fi cal l y , Ed i b l e

IP cl ai m s t h at “ Go o gl e recei v e d

. . . m o n ey b y s el l i n g t h e ‘ Ed i b l e Arran g em en t s ’

n am e an d as so ci at ed p ro p ert y to o t h ers wi t h o u t p erm i ss i o n.”

A cl ai m fo r m o n ey h ad an d recei v ed “ i s fo u nd ed o n th e eq u it ab le p ri n ci p l e t h at

n o on e o ug h t t o u n

ju s t l y en ri ch h i m s el f at t h e ex pen s e o f an ot h er[.] ” Ti me In s

. Co

. v.

Fu l t o n -Deka l b Ho s

p

. Au t h

. , 2 1 1 Ga. Ap p. 3 4

, 3 5 (1 ) (4 3 8 SE2 d 1 4 9) (1 9 93 ) (ci t at i o n

a nd punc t u at i o n o m i t t ed ). “ [R] eco v ery i s au t h ori zed ag ai n st o n e wh o ho l d s t he m one y

o f an o t h er wh i ch he o u g h t i n eq u i t y an d g oo d co n s ci en ce t o refu n d

. ” Id

. (ci t at i o n an d

p u n ct u at i o n om it t ed ). Th e fact u al al l eg at i o n s i n th e co m p l ai n t

, h o w ev er, rev eal t h at

8Go o g l e gen erat ed t he m o n ey at i s s ue b y s el l i n g a d ver t i s emen ts fo r i t s s earch res u l t s

p ag es

. Th e al l eg at io n s d o n o t p erm i t an i n feren ce t h at Ed ib l e IP o wn s

— or i s en t i t l ed

t o

— Go o g l e’ s ad v ert i s in g rev en u e. T h e t ri al co urt

, t h erefo re, pro p erl y d i s m i s s ed

C o u n t 3

. S e e i d. at 3 7 (2 ) (cl ai m fo r m on ey had an d recei v ed di s m i s s ed wh ere

co m p l ai n t d em o n s t rat ed t h at cl ai m an t h ad n o ri g h t t o t h e fu n d s at i s s u e).

4

. Fi n al l y , th e co m

p l ai n t al l eg es th at Go o g l e v io l at ed t h e G e o rg i a RICO Act

“ b y o b t ai n i n g , d i rect l y o r i n d i rect l y , an in t eres t i n o r co nt ro l o f pers o n a l p r o p e rt y ,

i n cl u d i n g b u t n o t l im i t ed t o m o n ey , t h o ug h a p at t ern o f rack et eeri n g act i v i t y an d / o r

b y en deav o ri n g to d o t h e s am e.” Acco rd i n g t o t h e co m p l ai n t

, t h e rack et eeri n g act iv i t y

s u p p ort i n g t h i s cl ai m

i n cl u d es t h e t h eft b y

t ak i n g al leg ed i n Co u n t 1

.

Th e t ri al co urt d i s m is s ed t h e RICO al l eg at i o n , co ncl u d in g t hat Ed i b l e IP’ s

fai l u re to s tat e a cl ai m as t o t h eft was fat al t o th e RICO cl ai m

. W i t h res pect t o t h i s

r u l i n g , Ed ib l e IP arg u es o n l y t h at “ [b ] ecau s e t h e [t ri al co u rt ’ s ] t h eft an al y s i s i s

i n co rrect

, t h ere i s n o b as i s fo r di s m i ss i n g t h e RICO cl ai m

. ” As fo un d i n Di v i s i o n 1,

h o wev er, t h e t ri al co u rt p ro p erl y d i s m i s s ed t h e t h eft al l eg at i on

. Acco rd i n g l y , Ed i b l e

IP h as n o t d em o ns t rat ed t hat th e t ri al co urt erred i n d i s m i s si ng t h e RICO cl ai m

. 2 See

2 In affi rm i n g t h e t ri al co u rt ’ s d i s m is s al o f Ed i b l e IP’ s c l a im s, we ex p res s n o

o p i n i o n o n wh et h er k ey wo rd ad v ert i s i n g m i g h t gi v e ri se t o s om e o t h er cl ai m n ot
ad d res s ed h ere.

9Ga l lemo r e v. W h i t e , 3 0 3 Ga. 2 0 9

, 2 1 0 (1 ) (8 1 1 SE2 d 3 1 5) (2 0 18 ) (ap p el l an t b ears t h e

b u rd en o f d em on s trat i n g erro r o n ap p eal ); s ee al s o J. Ki n s o n Co o k o f Ga

. v.

Heer y/ Mi t ch el l

, 2 8 4 Ga. Ap p. 55 2

, 5 6 0 (f) (6 4 4 SE2 d 4 4 0 ) (2 0 07 ) (wh ere cl ai m an t

can n ot es t ab l i s h t o rt cl ai m s u p on wh i ch a RICO al l eg at i o n i s b as ed

, th e RICO cl ai m

fai l s as a m at t er o f l aw).

J u d g men t af f i r med

. Mi ll er

, P. J., a n d S

en i o r Ap p el l a te Ju d

ge H er b er t E

.

Ph i p ps ., co n cu r

.

10