Monday, November 27, 2023

too much complaining about copying triggers Dastar/preemption for other claims

Design Gaps, Inc. v. Hall, 2023 WL 8103156, No. 3:23-cv-186-MOC (W.D.N.C. Nov. 21, 2023)

Design Gaps produces custom cabinetry for high-end homes; Hall is a former employee of Design Gaps who signed a nonsolicitation/noncompete clause but went to work for a design studio that was part of Design Gaps’ main competition, Peters. Peters allegedly subsequently constructed homes with interior designs “substantially similar” to building components depicted in Design Gaps’ technical drawings. Design Gaps had in the past conducted projects for Peters Custom Homes including the design and construction of residential cabinetry in homes referred to as “Quail Hollow North” and “Lake Wylie.” Defendants allegedly promoted the kitchen and other areas of the residences designed and constructed by Design Gaps as their own designs and trade dress.

Design Gaps brought trade secret, tortious interference, and state and federal false advertising/false designation of origin claims against defendants.

Defendants moved to dismiss the Lanham Act claims as preempted by copyright. (It’s preclusion, really, but the court says that preemption principles are implemented by Dastar.) And the complaint was full of references to Design Gaps’ copyrighted designs and defendants’ “copying.” Here there was no extra element rendering the claims qualitatively different from copyright claims. Instead, plaintiffs alleged that the alleged substantial similarity itself constituted a misrepresentation of origin. This was just Dastar: “Design Gaps does not allege that the kitchens and cabinets cited in the Amended Complaint were actually sold in commerce by anyone other than the Peters Defendants.” So too for the state law claims.

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