Dumas

ORDER DENYING MOTION TO DISMISS PURSUANT TO FED.R.CIV.P. 12(b)(6)

I. Introduction

This case raises the question whether licensors of intellectual property may be liable for the subsequent use of that property by manufacturers in a practice — the use of “chase” or “insert” cards — that this Court has stated may constitute an illegal form of gambling. See Schwartz v. Upper Deck (I), 956 F.Supp. 1552 (S.D.Cal.1997); Schwartz v. Upper Deck (II), 967 F.Supp. 405 (S.D.Cal.1997). Specifically, Plaintiffs, as proposed class representatives, contend that Defendant Licensors are in violation of the Racketeer Influenced and Corrupt Organizations Act (“RICO”), 18 U.S.C. §§ 1961-1968 , and the California Unfair Business Practices statute, CaLBus. & Prof.Code § 17200 et seq., based on Defendants' “conduct or participation in the conduct of illegal gambling enterprises through their licensing of names, likenesses, logos, and other copyrighted property or licensable rights to be manufacturers of sports and entertainment trading card packages, some of which contain randomly inserted ‘chase’ cards ... of substantial value.” See Compl. ¶ 1. Plaintiffs further allege that “the Licensors and the…