Rearden LLC v. Crystal Dynamics, Inc.

IV. DISCUSSION

A. Copyright Infringement

To establish copyright infringement Plaintiff must prove (1) ownership of a copyright, and (2) copying of protectable expression by Defendants. See Design Data Corp. v. Unigate Enter., Inc. , 847 F.3d 1169 , 1173 (9th Cir. 2017). Defendants argue that Rearden has not alleged a copyright claim because the copyright in the software does not include the output files. ECF No. 20 at 5. For reasons expressed in its earlier order, the Court agrees. See Studios' Order at 4-8. Rearden has not adequately alleged ownership of a copyright.

B. Patent infringement

The MOVA assets are the subject of several patents. Compl. ¶ 60. Rearden alleges that Crystal Dynamics directly infringed or actively induced direct infringement of these patents. Compl. ¶¶ 129, 136, 153, 160, 175, 182, 199, 203, 221, 225. Crystal argues that Rearden fails to plead patent infringement under any theory. ECF No. 20 at 6.

1. Direct Infringement

Crystal argues that Rearden has no basis for a direct infringement claim because Rearden does not allege that Crystal "makes, uses, offers to sell, or sells" the patented invention. ECF No. 20 at 9; see 35 U.S.C. § 271 (a). Rearden…