Stottlemire

ORDER ON DEFENDANT’S (1) MOTION TO DISMISS THIRD AMENDED COMPLAINT AND (2) MOTION FOR SANCTIONS

I. INTRODUCTION

Plaintiff Coupons, Inc. (“Coupons”) offers online, printable coupons to consumers. Allegedly, the first time a consumer attempts to print a coupon, plaintiffs security software places a registry key on the consumer’s computer. TAC ¶ 17. Plaintiffs software then uses the key to authorize that computer’s access each time the computer attempts to print a coupon. Authorization is denied if the key shows that the computer has accessed the pre-set limit of printed coupons per computer, called a “device limit.” If the computer is authorized, the system transmits the requested coupon to the consumer’s printer. In addition, plaintiffs software generates an individual number, and prints it on each coupon. This number denotes the coupon as an authorized copy of a copyrighted coupon. (Plaintiff compares this process to numbering lithographs of a copyrighted painting.) TAC ¶ 17. In this way, according to plaintiff, each coupon is “one in a numerically limited series.” The number of prints in a series (also called the “campaign limit”) is set by Coupons’ customers (manufacturers,…