031141598120
031141598120
031141598120
1 Plaintiff AXS Group LLC by and through its counsel, Dorsey & Whitney LLP,
2 for its Verified Complaint alleges as follows:
3 I. INTRODUCTION & SUMMARY OF RELIEF REQUESTED
4 1. AXS Group LLC (“AXS,” pronounced “Access”) brings this action
5 against Defendants Internet Referral Services LLC, Event Tickets Center, Inc.,
6 Verified-Ticket.com, Amosa.app and Secure.Tickets alleging numerous federal and
7 state claims related to copyright infringement, violations of the Digital Millennium
8 Copyright Act, trademark counterfeiting, trademark infringement, unfair
9 competition, unfair or deceptive trade practices, and civil conspiracy arising from
10 Defendants’ willful, deliberate, and malicious acts that are causing substantial and
11 irreparable harm to AXS’s goodwill, reputation, and business. Defendants’ acts are
12 also causing widespread damage and harm to unwitting consumers who are the
13 victims of Defendants’ fraudulent conduct.
14 2. AXS provides proprietary ticketing software and services including
15 through an internet website and mobile application (the “AXS Platform”) to hundreds
16 of event organizer clients who present sports and entertainment events in the United
17 States, including the Crypto.com Arena in Los Angeles, the T-Mobile Arena in Las
18 Vegas, Nevada, and the Ryman Auditorium and Grand Ol Opry in Nashville,
19 Tennessee. AXS utilizes the AXS Platform to market, sell and distribute tickets on
20 behalf of its event organizer clients, and delivers digital tickets to end user customers
21 who purchased tickets on the AXS Platform using AXS’s patented AXS Mobile ID
22 technology.
23 3. The original sales process, where the tickets to an event are sold to the
24 public on behalf of event organizers for the first time, is sometimes known as the
25 “primary market” sale of tickets. After a ticket has been sold on the primary market,
26 the purchaser of such ticket, who for the most popular events where the highest resale
27 prices are commanded, is often a professional reseller or broker making a large profit
28 on the resale of the ticket, will list the ticket for sale on a website that offers the ticket
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1 for resale or what is sometimes known as the “secondary market” sale of tickets.
2 4. AXS sells “primary market” tickets on behalf of its clients and also
3 provides a “secondary market” service for persons who purchased an AXS client
4 event ticket in the primary market to post their ticket for resale using a feature of the
5 AXS Platform (known as “AXS Official Resale”), where new end user buyers can
6 purchase the ticket and AXS will fulfill the delivery of the ticket using AXS Mobile
7 ID technology.
8 5. AXS does not own any of the tickets that it sells. Rather, in the primary
9 market, AXS acts in an agency capacity for its clients—the venues, promoters, and
10 teams on whose behalf AXS sells live event tickets to their fans. In the secondary
11 (resale) market, AXS offers the sales platform and ticket delivery for resellers to sell
12 their tickets to new buyers on the AXS Official Resale marketplace. AXS’s goal is
13 to serve its clients by getting authentic tickets into the hands of their fans on the terms
14 established by those clients, and to serve fans by providing them access to buy tickets
15 for the events they want to attend.
16 6. As detailed herein, the tickets purchased through the AXS Platform are
17 branded with Plaintiff’s trademarks. Plaintiff owns a valid and subsisting copyright
18 in the mobile application (the “AXS App”) that allows users to buy, sell, view, and
19 use their digital tickets. Further, as set forth below, in order to prevent fraudulent
20 activity, Plaintiff has developed proprietary security features to ensure that AXS
21 digital tickets are associated with the consumers who purchased them and ensure that
22 consumer data is protected.
23 7. Defendants operate third-party ticket retail platforms and/or ticket
24 delivery services, listing, selling and delivering secondary market tickets listed by
25 ticket resellers or brokers on third party secondary market ticket sales websites.
26 Collectively, and on information and belief, Defendants market, advertise, sell,
27 display, distribute, and/or deliver to consumers digital tickets that purport to be
28 authentic AXS digital tickets. In reality though, the digital tickets, made to look like
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1 and/or seek leave of this Court to do so when their identities are ascertained.
2 III. JURISDICTION AND VENUE
3 17. This Court has subject matter jurisdiction over this case pursuant to
4 28 U.S.C. § 1331 and § 1338 because this dispute concerns the rights of parties under
5 the Copyright Act, 17 U.S.C. § 101 et seq., and the Lanham Act, 15 U.S.C. § 1051 et
6 seq.
7 18. This Court has supplemental jurisdiction over all state claims under 28
8 U.S.C. § 1367 because all state law claims asserted herein are related to the same
9 controversy, specifically Defendants marketing, offering for sale, and sale of
10 counterfeit tickets, which give rise to the federal causes of action.
11 19. This Court has personal jurisdiction over Defendants because, upon
12 information and belief, Defendants regularly: (a) conduct, transact, and/or solicit
13 business in California and in this judicial district; (b) derive substantial revenue from
14 their business transactions in California and in this judicial district; and/or otherwise
15 (c) avail themselves of the privileges and protections of the State of California such
16 that this Court’s assertion of jurisdiction does not offend traditional notions of fair
17 play and due process. For example, as set forth in more detail below, one or more of
18 the Defendants have offered for sale, sold, distributed, displayed and/or allowed to
19 be displayed counterfeit tickets to consumers in this judicial district, including fake
20 or fraudulent digital tickets to games for the LA Clippers and LA Kings. In addition,
21 Defendants’ infringing conduct has caused injury to Plaintiff in California and this
22 judicial district such that Defendants should reasonably expect such actions to have
23 consequences in California and this judicial district.
24 20. Further, on information and belief, one or more of the Defendants have
25 downloaded the AXS App for purposes of reverse-engineering it and otherwise
26 violating the Copyright Act as detailed and set forth herein. When using or
27 downloading the AXS App, users agree to and are bound by AXS’s Terms of Use,
28 which provide: “you agree that any action at law or in equity arising out of or relating
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1 to these Terms shall be filed only in the state or federal courts located in Los Angeles
2 County, California, and you hereby consent and submit to the personal jurisdiction
3 of such courts for the purposes of litigating any such action.” Accordingly,
4 Defendants have consented to personal jurisdiction in this judicial district.
5 21. Alternatively, this Court has personal jurisdiction over any foreign
6 Defendants pursuant to Rule 4(k)(2) of the Federal Rules of Civil Procedure to the
7 extent any given Defendant is not subject to the jurisdiction of any state’s court of
8 general jurisdiction, because exercising jurisdiction over Defendants, who conduct
9 substantial business with consumers in the United States, is consistent with the
10 United States Constitution and its laws.
11 22. Venue is proper in this judicial district pursuant to 28 U.S.C.
12 § 1391(b)(2) and § 1400 because, as described herein, Defendants conduct, transact,
13 and/or solicit business in this judicial district and the actions that give rise to the
14 allegations of this Complaint, namely Defendants’ marketing, offering for sale, and
15 sale of tickets to consumers occur in this district. Defendants are also subject to
16 Plaintiff’s Terms of Use, as noted above, which require any lawsuit to be brought in
17 the state or federal courts in Los Angeles.
18 IV. PLAINTIFF’S E-TICKETING BUSINESS OPERATION
19 The AXS Platform for Selling and Re-Selling Tickets
20 23. The AXS Platform includes an online website (https://www.axs.com)
21 and the AXS App, which interoperates with the AXS website to provide ticket sale
22 and distribution for sports and entertainment events. The AXS App is available for
23 download from both the Apple App Store (for Apple devices) and Google Play Store
24 (for Android devices). In the Apple App Store, the AXS App has an average rating
25 of 4.7 out of 5 stars, with nearly 267,000 ratings as of the time this Complaint was
26 filed. In the Google Play Store, the AXS App enjoys a 4.3 star rating, has nearly
27 20,000 reviews, and has been downloaded more than 5,000,000 times. In total, the
28 AXS App has been downloaded by users. Consumers can
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1 search for and purchase primary market and resale tickets to various AXS client
2 events through the AXS Platform, both online and in the AXS App.
3 24. AXS uses security and access control measures to prevent misuse of the
4 AXS App, including
5 .
6 25. Plaintiff has more than 300 event organizer clients and sells millions of
7 tickets for thousands of events per year in the United Sates. AXS assures consumers
8 that AXS tickets purchased through the AXS Platform, whether a primary sale or a
9 secondary sale ticket, are “100% authentic tickets.”
10 26. When a ticket is sold again from the buyer of that ticket to a new buyer,
11 it is sometimes known as a “resale” or a “secondary market” ticket. In the primary
12 market, the venue, team, or event promoter sets the price for the ticket. In the resale
13 market, ticket prices are set by the ticket reseller (also referred to as a “broker”). If
14 a reseller or broker sells a genuine AXS ticket through AXS Official Resale, that
15 resold ticket will be delivered through the AXS Platform directly to the purchaser in
16 their AXS App. In order to access that resold ticket, the purchaser will have to
17 download the AXS App on a mobile device so that the authentic AXS ticket can be
18 delivered. AXS assures consumers that resale tickets purchased through the AXS
19 Platform are “100% authentic tickets.”
20 27. Depending on the client, event, or venue, some tickets sold through the
21 AXS platform include “premium” benefits such as access to enhanced seating or
22 “VIP packages” that may include additional perks such as special merchandise,
23 access to “meet-and-greets” with celebrities, and other benefits. The benefits are then
24 associated with the authentic AXS ticket and will render in the customer’s AXS App.
25 If a ticket has been counterfeited, mimicked, or emulated, as is the case with the
26 tickets marketed by Defendants, the premium benefits may not render in the
27 customer’s AXS App, thus denying the customer the benefits that they purchased.
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1 following is an example of how a typical AXS digital ticket appears within the AXS
2 App:
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20 31. Since at least September 1, 2020, Plaintiff has promoted AXS Mobile
21 ID to customers and prospective customers to assure them that both the sale and
22 purchase of AXS digital tickets is safe and secure. These assurances about AXS
23 Mobile ID are prominently displayed and promoted to consumers and fans. They
24 can be found on multiple locations on AXS’s website, on the Apple App and Google
25 Play stores, and several Youtube.com videos. Attached hereto as Exhibit D are true
26 and correct examples of how AXS Mobile ID is promoted to the public.
27 32. Further, many of AXS’s client websites that operate entertainment
28 venues and professional sports associations in the Los Angeles area and beyond also
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1 tout the safety and security of using AXS Mobile ID. These include, but are not
2 limited to, Crypto.com Arena, the National Hockey League, The Regency Ballroom
3 in San Francisco, and T-Mobile Arena in Las Vegas. Attached hereto as Exhibit E
4 are true and correct copies of website printouts from these organizations where they
5 promote the safety and security of AXS Mobile ID.
6 33. Prior to adopting “AXS Mobile ID,” AXS had previously used the
7 trademark “Flash Seats” (dating back to at least April 2006) as the name for the
8 electronic delivery of authentic AXS tickets to consumers. References to “Flash
9 Seats” are still made on axs.com, as well as third-party sites that state things such as
10 “AXS Mobile ID (formerly Flash Seats).” Attached hereto as Exhibit F are true and
11 correct copies of references to AXS’s “Flash Seats.”
12 34. To date, AXS (and its clients) have sold millions of AXS-branded
13 genuine electronic tickets to consumers and other purchasers in the U.S. In 2022
14 alone, AXS generated revenues
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16 35. Importantly, genuine AXS digital tickets using AXS Mobile ID are not
17 delivered to a purchaser’s email account. Further, genuine AXS digital tickets are
18 not delivered to any sort of website where purchasers are required to log in and show
19 their digital ticket to gain admission. As detailed herein, the counterfeit digital tickets
20 at the center of this dispute are being delivered directly to purchasers’ email accounts,
21 or through a website unaffiliated with AXS—telltale signs that the consumers have
22 purchased counterfeit tickets.
23 V. PLAINTIFF’S VALID AND SUBSISTING INTELLECTUAL
PROPERTY RIGHTS
24
The AXS Trademarks
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36. Plaintiff has used the name “AXS” since at least as early as August 2011
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to offer its goods and services in commerce to consumers in the United States.
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37. Plaintiff markets its goods and services through its own website, through
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1 the AXS App, through its clients, the venue, team and event promoters whose tickets
2 AXS makes available via the AXS Platform, through various social media platforms,
3 and through other print and electronic media.
4 38. Plaintiff and its services have also been featured in prominent, national
5 publications, including but not limited to The Los Angeles Times, The New York
6 Times, Business Wire, Variety, and Billboard. Examples of just some of the articles
7 from these organizations are attached hereto as Exhibit G.
8 39. Through its extensive marketing and exclusive use of the AXS brand,
9 Plaintiff has developed tremendous goodwill associated with it, and consumers have
10 come to associate the AXS brand exclusively with Plaintiff.
11 40. Plaintiff has made significant investments in developing and protecting
12 the AXS brand. Plaintiff owns the following U.S. trademark registrations
13 (hereinafter “AXS Registrations”), all of which have been duly registered with the
14 United States Patent and Trademark Office (“USPTO):
15 Reg. No. Trademark Goods/Services
16 4,429,044 AXS 35: Promotion of sporting events, musical concerts
and other entertainment events of others
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41: Arranging for ticket reservations for sporting
18 events, musical concerts and other entertainment
events; Ticket agency services for sporting events,
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musical concerts and other entertainment events,
20 rendered online, through phone orders and through
ticket outlets
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4,830,497 AXS 9: Computer software for building customer lists
22 ADVANTAGE and marketing campaigns related to entertainment
and sporting events
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5,880,643 AXS 41: Arranging for ticket reservations for sporting
24 ANYWHERE events, musical concerts and other entertainment
25 events; Ticket agency services for sporting events,
musical concerts and other entertainment events,
26 rendered online, through phone orders and through
27 ticket outlets in various channels of distribution
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1 as the name for its proprietary components that ensured consumers they are using
2 safe and secure AXS technology to buy and sell their tickets. AXS also owns
3 common law trademark rights in “Flash Seats.” On March 4, 2021, AXS applied to
4 register with the USPTO the mark “Flash Seats” for, among other services,
5 “[p]roviding temporary use of on-line non-downloadable software for use in the
6 sports and entertainment industries, namely, software for use in the issuance, printing
7 and exchange of event tickets.” Attached hereto as Exhibit I is a true and correct
8 copy of the Notice of Allowance issued by the USPTO on September 28, 2021. Both
9 AXS Mobile ID and Flash Seats have been used in commerce by Plaintiff long before
10 Defendants started their illicit marketing and infringement regimes.
11 43. The marks as reflected in the AXS Registrations, and the common law
12 rights to the marks reflected in the AXS Registrations and to the marks “AXS Mobile
13 ID” and “Flash Seats,” are all collectively referred to herein as the “AXS Marks.”
14 The AXS Copyrights
15 44. Plaintiff also owns copyright registrations covering the AXS App. The
16 copyright registrations cover both the iOS version of the AXS App available on the
17 Apple App Store and the Android version of the AXS App available on the Google
18 Play Store.
19 45. The United States Copyright Office registered Plaintiff’s copyright in
20 “AXS Mobile Application for iOS, Version 5.8.7” under Number TX0009296416,
21 with an effective registration date of July 26, 2023. A true and correct copy of the
22 Certificate of Registration is attached hereto as Exhibit J.
23 46. The United States Copyright Office registered Plaintiff’s copyright in
24 “AXS Mobile Application for Android, Version 5.8.7” under Number
25 TX0009300435, with an effective registration date of August 15, 2023. A true and
26 correct copy of the Certificate of Registration is attached hereto as Exhibit K.
27 47. The Certificates of Registration are prima facie evidence of the validity
28 of Plaintiff’s copyrights in the AXS App. The copyrighted works as reflected in the
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1 offering for sale tickets to several events in Los Angeles and the surrounding areas:
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20 55. Similarly, Defendant ETC targets consumers by marketing, distributing,
21 and selling tickets to events in the Los Angeles area. Shown below is the
22 eventticketscenter.com website showing that as of November 3, 2023, ETC was
23 promoting and offering for sale tickets to several events in Los Angeles and the
24 surrounding areas:
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14 56. IRS and ETC sell, facilitate, participate in, allow, deliver or are
15 otherwise complicit in counterfeit AXS tickets being sold through tickets-center.com
16 and eventticketscenter.com, respectively, to purchasers who are duped into believing
17 that the tickets are genuine. On information and belief, agents of IRS and ETC either
18 know of this rampant practice and have failed to stop it, or these agents are actively
19 involved in the process.
20 57. For its part in this operation, Verified-Ticket.com sells, facilitates,
21 participates in, allows, or is otherwise complicit in delivering counterfeit AXS tickets
22 to these unsuspecting consumers. On information and belief, this conduct is occurring
23 here within this judicial district and beyond.
24 58. As just one example of this fraudulent scheme, earlier this year, an
25 unsuspecting consumer by the name of “Nate” purchased a ticket from Defendant
26 IRS’s tickets-center.com to a Washington Wizards game set to be played on
27 February 16, 2023. He received the following email verification generated by
28 tickets-center.com informing him that he had purchased a ticket for this game in
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1 69. Even if a genuine AXS ticket is sold on the IRS website, IRS would not
2 be responsible for the electronic delivery of that ticket in any way, shape, or form.
3 Instead, if the resale is of a genuine AXS ticket, the consumer who purchased the
4 ticket off of the IRS website would get an email from AXS instructing the consumer
5 to download the AXS App (or log into their AXS account) so that the ticket could be
6 delivered safely and securely using the AXS Mobile ID technology.
7 70. Attached hereto as Exhibit L is a true and correct copy of multiple
8 digital ticket transactions where tickets-center.com indicated it would charge a fee in
9 conjunction with the consumer taking delivery of the ticket via “Flash Seats” or
10 “AXS Mobile ID.”
11 71. IRS’s use of Plaintiff’s trademarks is likely to cause confusion,
12 deception, and mistake that will be exceedingly harmful to Plaintiff. For starters,
13 charging a “fee” for the supposed “Flash Seats” delivery method makes it look like
14 Plaintiff approves, sponsors, or otherwise endorses IRS and its commercial activity.
15 But Plaintiff does not approve, sponsor, other otherwise endorse IRS. In fact, Plaintiff
16 wants nothing to do with IRS because tickets-center.com has a horrible reputation in
17 the digital ticket sale and delivery industry.
18 72. For example, trustpilot.com is a third-party consumer review website. It
19 shows that Defendant IRS’s tickets-center.com business has an average 1.1 star
20 review from 387 consumers. 6 Indeed, 98% of reviewers have given tickets-
21 center.com a one star review and many have characterized tickets-center.com as a
22 “scam.” “Clowns,” “Gougers,” and “Thieves” are just a few of the choice epithets
23 that consumers use to describe tickets-center.com. Some examples of the reviews
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A 1 star rating does not imply even a slight degree of satisfaction because in order
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to leave a review, a consumer has to give at least a 1 star rating.
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13 Attached hereto as Exhibit M are true and correct copies of the reviews from
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15 73. Defendant IRS’s tickets-center.com has similarly racked up hundreds of
16 horrible reviews as depicted on the website curated by the Better Business Bureau
17 (“BBB”) website, bbb.org. Attached hereto as Exhibit N is a true and correct copy
18 of the BBB listing for tickets-center.com, showing that it is not accredited by the
19 BBB and showing numerous aggrieved reviewers. Descriptive terms like “Trash,”
20 “Scam,” and “Absurd” are routinely used by reviewers. According to the BBB’s
21 website, in just the last three years alone there have been approximately 3,416
22 complaints lodged with the BBB about tickets-center.com. Just some of the examples
23 of the reviews are reproduced below:
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5 74. These illicit acts are causing and are likely to cause significant damages
6 and harm to Plaintiff’s reputation. They are also causing and are likely to cause
7 significant harm to consumers as well.
8 ETC’s Independent Acts of Infringement and Unfair
Competition
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75. Defendant ETC is likewise engaged in independent acts of trademark
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infringement and unfair competition, separate and apart from the fraudulent fake
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ticket scheme detailed above. As noted earlier, Defendant ETC advertises for sale
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numerous digital tickets for concerts and other Los Angeles-based events on
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eventticketscenter.com. In advertising and promoting many of these events,
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eventticketscenter.com notes that the delivery method for these tickets will be
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accomplished by “Flash Seats.”
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76. Defendant ETC charges consumers “service and delivery fees.” While
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eventticketscenter.com does not display an itemized list of such fees to consumers,
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on information and belief, Defendant ETC is charging consumers a “delivery fee” of
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unknown amount for the delivery of tickets using Flash Seats. For example, below
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is a screenshot showing that for an $85 dollar ticket delivered via Flash Seats for a
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hockey match in Los Angeles, a consumer would be charged a total of “$120.45
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which includes tickets, service, and delivery fees” (emphasis supplied).
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1 charging a “delivery fee” for the supposed “Flash Seats” delivery method makes it
2 look like Plaintiff approves, sponsors, or otherwise endorses ETC and its commercial
3 activity. But Plaintiff does not approve, sponsor, other otherwise endorse ETC. In
4 fact, Plaintiff wants nothing to do with ETC because—just like IRS—ETC has a
5 horrible reputation in the digital ticket sale and delivery industry.
6 80. For example, ETC and its eventticketscenter.com website have
7 hundreds of negative reviews on the BBB website, resulting in a total rating of 1.15
8 out of 5 stars. Attached hereto as Exhibit O is a true and correct copy of the BBB
9 listing for ETC, showing that it has numerous reviews calling the website a “Scam”
10 and noting its “fraudulent” activity. Below are just some of the negative reviews:
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20 81. Defendant ETC’s conduct is causing and is likely to cause significant
1 tickets and consumers are likely to believe that Amosa is associated with, sponsored
2 by, or affiliated with AXS and Amosa’s use of the AXS Marks in its subdomain
3 “axs.amosa.app” makes it look like Plaintiff approves, sponsors, or otherwise
4 endorses Amosa.app and its commercial activity. Plaintiff does not approve, sponsor,
5 or otherwise endorse Amosa.
6 88. These illicit acts are causing and are likely to cause significant damages
7 and harm to Plaintiff’s reputation. They are also causing and are likely to cause
8 significant harm to consumers as well.
9 Secure.Tickets is Selling and Distributing Counterfeit AXS
Tickets in this Judicial District
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89. Like Amosa, Defendant Secure.Tickets (and the individual(s) behind it)
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is engaged in a scheme to create and/or sell and distribute counterfeit AXS digital
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tickets in this judicial district and beyond.
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90. On or about October 19, 2023, a consumer attending the Denver
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Nuggets v. LA Clippers game at Crypto.com Arena in Los Angeles presented what
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appeared to be an AXS digital ticket to representatives at the box office when entering
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the Arena. However, the digital ticket did not appear in the AXS App. Rather, the
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consumer presented the ticket through a web-browser associated with the domain
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name secure.tickets. The digital ticket had the elements of a genuine AXS digital
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ticket, including the trademark AXS Mobile ID, the AXS watermark, and the deep
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purple backdrop. The ticket even had a rotating QR code, although it showed a
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different seat location and amount when scanned by representatives at the box office.
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Below is an image of the consumer’s phone screen, showing the counterfeit ticket,
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and a close up of the same phone screen showing that the ticket was delivered and
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presented through the domain name associated with Defendant Secure.Tickets:
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1 associated with, sponsored by, or affiliated with AXS. Plaintiff does not approve,
2 sponsor, or otherwise endorse Secure.Tickets.
3 94. These illicit acts are causing and are likely to cause significant damages
4 and harm to Plaintiff’s reputation. They are also causing and are likely to cause
5 significant harm to consumers as well.
6 VII. CAUSES OF ACTION
7 First Cause of Action (All Defendants)
8 Copyright Infringement Under 17 U.S.C. § 101, et seq.
9 95. Plaintiff re-alleges and incorporates all of the allegations set forth in the
10 preceding paragraphs as if fully set forth herein.
11 96. Plaintiff’s AXS App, including its source code and user interface and
12 all protectable screen displays generated by the source code including digital tickets,
13 constitutes an original work of authorship and copyrightable subjected matter under
14 the laws of the United States.
15 97. Plaintiff’s Copyright Registration No. TX0009296416, relating to the
16 iOS version of the AXS App, is valid and in full force and effect.
17 98. Plaintiff’s Copyright Registration No. TX0009300435, relating to the
18 Android version of the AXS App, is valid and in full force and effect.
19 99. Plaintiff is the owner of all exclusive rights in and to the AXS App
20 Copyrights and the Copyright Registrations are prima facie evidence of validity.
21 100. On information and belief, Defendants have downloaded or accessed the
22 AXS App and bypassed security and access control measures
23
24 to decompile, reverse engineer, disassemble or otherwise
25 modify and copy data stored or transmitted by the AXS App to create lookalike
26 websites.
27 101. Defendants have copied, created derivative works of, and/or distributed
28 copies to consumers, and publicly displayed Plaintiff’s protected works, all without
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Case 2:24-cv-00377-SPG-E Document 1 Filed 01/16/24 Page 34 of 46 Page ID #:34
1 AXS Marks in U.S. commerce to market, promote, offer for sale, sell and distribute
2 counterfeit AXS tickets. Defendants intentionally reproduced, copied, and/or
3 colorably imitated the AXS Marks and/or used designations that are identical to, or
4 substantially indistinguishable from the AXS Marks on or in connection with the
5 counterfeit tickets.
6 118. Defendants have advertised, promoted, offered for sale, sold, displayed
7 and/or distributed counterfeit AXS tickets to consumers in or affecting interstate
8 commerce, and/or have acted with reckless disregard of Plaintiff’s rights in and to
9 the AXS Marks through their participation in such activities.
10 119. Defendants’ unauthorized use of the AXS Marks is likely to cause
11 confusion, deception or mistake in the marketplace because consumers are likely to
12 believe there is a connection, affiliation, or sponsorship between Plaintiff and
13 Defendants. Defendants’ actions constitute willful counterfeiting of the AXS Marks
14 in violation of 15 U.S.C. §§ 1114(1)(a)-(b), 1116(d), and 1117(b)-(c).
15 120. As a direct and proximate cause of Defendants’ conduct, Plaintiff has
16 suffered and will continue to suffer loss of income, profits, and goodwill, and
17 Defendants will continue to unfairly acquire income, profits, and goodwill.
18 121. Defendants’ conduct will cause further irreparable injury to Plaintiff if
19 Defendants are not restrained by this Court. Plaintiff is entitled to preliminary and
20 permanent injunctive relief and Plaintiff’s remedies at law are inadequate to
21 compensate for this harm.
22 Fourth Cause of Action (All Defendants)
23 Trademark Infringement Under 15 U.S.C. § 1114, et seq.
24 122. Plaintiff re-alleges and incorporates all of the allegations set forth in the
25 preceding paragraphs as if fully set forth herein.
26 123. Plaintiff owns the AXS Registrations covering the AXS Marks, which
27 are valid and in full force and effect. Plaintiff is the owner of all right, title, and
28 interest in and to the AXS Registrations.
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1 124. Defendants have used the AXS Marks in U.S. commerce to market,
2 promote, offer for sale, sell, and distribute tickets. Defendants’ unauthorized use of
3 the AXS Marks is likely to cause confusion, deception or mistake in the marketplace
4 because consumers are likely to believe there is a connection, affiliation, or
5 sponsorship between Plaintiff and Defendants.
6 125. Defendants’ conduct constitutes infringement of Plaintiff’s AXS
7 Registrations in violation of Section 32(1) of the Lanham Act, 15 U.S.C. § 1114(1).
8 126. On information and belief, Defendants’ conduct has been willful and in
9 bad faith and Defendants have used the AXS Marks with the intention of misleading,
10 deceiving, or confusing consumers as to the origin of their goods and for the purpose
11 of trading on Plaintiff’s reputation and goodwill.
12 127. As a direct and proximate cause of Defendants’ conduct, Plaintiff has
13 suffered and will continue to suffer loss of income, profits, and goodwill, and
14 Defendants will continue to unfairly acquire income, profits, and goodwill.
15 128. Defendants’ conduct will cause further irreparable injury to Plaintiff if
16 Defendants are not restrained by this Court. Plaintiff is entitled to preliminary and
17 permanent injunctive relief and Plaintiff’s remedies at law are inadequate to
18 compensate for this harm.
19 Fifth Cause of Action (All Defendants)
20 Unfair Competition and False Designation of Origin
21 Under 15 U.S.C. § 1125, et seq.
22 129. Plaintiff re-alleges and incorporates all of the allegations set forth in the
23 preceding paragraphs as if fully set forth herein.
24 130. Plaintiff has adopted and used the AXS Marks in U.S. commerce, which
25 consumers have come to associate exclusively with Plaintiff. Plaintiff is the owner
26 of all right, title, and interest in and to the AXS Marks. The AXS Marks are non-
27 functional.
28 131. Defendants have used the AXS Marks in U.S. commerce to market,
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1 promote, offer for sale, sell and distribute tickets. Defendants’ unauthorized use of
2 the AXS Marks is likely to cause confusion, deception or mistake in the marketplace
3 because consumers are likely to believe there is a connection, affiliation, or
4 sponsorship between Plaintiff and Defendants.
5 132. Defendants’ conduct constitutes federal unfair competition and false
6 designation of origin in violation of Section 43(a) of the Lanham Act, 15 U.S.C.
7 § 1125(a).
8 133. On information and belief, Defendants’ conduct has been willful and in
9 bad faith and Defendants have used the AXS Marks with the intention of misleading,
10 deceiving, or confusing consumers as to the origin of their goods and for the purpose
11 of trading on Plaintiff’s reputation and goodwill.
12 134. As a direct and proximate cause of Defendants’ conduct, Plaintiff has
13 suffered and will continue to suffer loss of income, profits, and goodwill, and
14 Defendants will continue to unfairly acquire income, profits, and goodwill.
15 135. Defendants’ conduct will cause further irreparable injury to Plaintiff if
16 Defendants are not restrained by this Court. Plaintiff is entitled to preliminary and
17 permanent injunctive relief and Plaintiff’s remedies at law are inadequate to
18 compensate for this harm.
19 Sixth Cause of Action (All Defendants)
20 State Statutory Unfair Competition
21 Under Cal. Bus. & Prof. Code § 17200, et seq.
22 136. Plaintiff re-alleges and incorporates all of the allegations set forth in the
23 preceding paragraphs as if fully set forth herein.
24 137. Plaintiff has adopted and used the AXS Marks in U.S. commerce, which
25 consumers have come to associate exclusively with Plaintiff. Plaintiff is the owner
26 of all rights, title, and interest in the AXS Marks. The AXS Marks are non-functional.
27 138. On information and belief, Defendants have intentionally appropriated
28 the AXS Marks with the intent of causing confusion, mistake, and deception as to the
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1 source of their goods and services with the intent to pass off their goods and services
2 as those of Plaintiff.
3 139. Defendants’ conduct in connection with the offer for sale, sale, and
4 advertisement of tickets has violated the unfair competition laws of the State of
5 California, specifically Cal. Bus. & Prof. Code § 17200 et seq.
6 140. On information and belief, Defendants’ conduct is willful, intentional,
7 malicious, and in bad faith.
8 141. As a direct and proximate cause of Defendants’ conduct, Plaintiff has
9 been and will continue to be irreparably harmed and damaged. Plaintiff’s remedies
10 at law are inadequate to compensate for this harm.
11 Seventh Cause of Action (All Defendants)
12 Common Law False Designation of Origin & Unfair Competition
13 142. Plaintiff re-alleges and incorporates all of the allegations set forth in the
14 preceding paragraphs as if fully set forth herein.
15 143. Plaintiff has adopted and used the AXS Marks in U.S. commerce, which
16 consumers have come to associate exclusively with Plaintiff. Plaintiff is the owner
17 of all rights, title, and interest in the AXS Marks.
18 144. Defendants are promoting, advertising, selling, and distributing goods
19 and services under the AXS Marks, in violation of California’s common law of unfair
20 competition.
21 145. Defendants’ unauthorized use of the AXS Marks for goods and services
22 competing with Plaintiff’s goods and services is likely to cause confusion, deception,
23 or mistake in the marketplace as to the source or sponsorship of Defendants goods
24 and services.
25 146. On information and belief, Defendants’ conduct is willful, intentional,
26 malicious, and in bad faith.
27 147. As a direct and proximate result of Defendants’ conduct, Plaintiff has
28 suffered and will continue to suffer irreparable loss of income, profits, and good will,
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1 and Defendants will continue to unfairly acquire income, profits, and goodwill. As
2 a direct and proximate cause of Defendants’ conduct, Plaintiff has been and will
3 continue to be irreparably harmed and damaged. Plaintiff’s remedies at law are
4 inadequate to compensate for this harm.
5 148. Defendants’ conduct will cause further irreparable injury to Plaintiff if
6 Defendants are not restrained by this Court from further violation of Plaintiff’s rights.
7 Eighth Cause of Action
8 (Against Defendants IRS, ETC and Verified-Ticket.com)
9 Civil Conspiracy
10 149. Plaintiff re-alleges and incorporates all of the allegations set forth in the
11 preceding paragraphs as if fully set forth herein.
12 150. Plaintiff alleges that Defendants IRS and Verified-Ticket.com formed a
13 plan to promote, offer for sale, sell, display, and distribute counterfeit tickets using
14 the AXS Marks and protected elements of the AXS App.
15 151. On information and belief, Defendants IRS and Verified-Ticket.com
16 agreed to the plan and were aware that each other planned to participate in the plan
17 and that the plan was unlawful and fraudulent.
18 152. Plaintiff alleges that Defendants ETC and Verified-Ticket.com formed
19 a plan to promote, offer for sale, sell, display, and distribute counterfeit tickets using
20 the AXS Marks and protected elements of the AXS App.
21 153. On information and belief, Defendants ETC and Verified-Ticket.com
22 agreed to the plan and were aware that each other planned to participate in the plan
23 and that the plan was unlawful and fraudulent.
24 154. As a result of this conspiracy, Plaintiff has been harmed because, among
25 other things, Defendants have derived sales, revenues, and other benefits from their
26 promotion, offering for sale, selling, display and distribution of counterfeit tickets,
27 all at Plaintiff’s economic and reputational expense.
28 155. On information and belief, Defendants’ conduct is willful, intentional,
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1 163. Plaintiff’s Terms of Use also provides notice that “the trademarks,
2 logos, and service marks displayed on the Services (collectively the “Trademarks”)
3 are registered and unregistered trademarks owned by [AXS] or by our licensors,
4 service providers and or others that may have granted us permission to use such
5 Trademarks” and that users “may not use the Trademarks in connection with any
6 products or service that is not offered by [AXS], and users are not granted any license
7 or right to use the Trademarks for commercial or any unauthorized purposes.”
8 164. Defendants have breached the Terms of Use by using the AXS Marks
9 in U.S. commerce to market, promote, offer for sale, sell and distribute counterfeit
10 tickets without Plaintiff’s authorization or consent. Defendants intentionally
11 reproduced, copied, and/or colorably imitated the AXS Marks and/or used
12 designations that are identical to, or substantially indistinguishable from the AXS
13 Marks on or in connection with the counterfeit tickets.
14 165. On information and belief, Defendants’ conduct is willful, intentional,
15 malicious, and in bad faith.
16 166. As a result of Defendants’ breach, Plaintiff has suffered and continues
17 to suffer monetary and non-monetary injury and harm in an amount to be proven at
18 trial.
19 167. As a result of Defendants’ ongoing breach, Plaintiff has been injured
20 and faces irreparable harm. Plaintiff is threatened with losing its competitive
21 advantage, customers, and goodwill that would be impossible to fully compensate
22 unless Defendants are enjoined and restrained by order of this Court.
23 VIII. PRAYER FOR RELIEF
24 WHEREFORE, Plaintiff demands judgment and relief against Defendants and
25 respectfully requests that this Court:
26 1. Preliminarily and then permanently enjoin, restrain, and forbid
27 Defendants, their officers, agents, servants, employees, attorneys, successors or
28 assigns, and all persons or entities acting in concert or participation with any of them
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1 from:
2 (a) copying, mimicking, emulating, creating derivative works from,
3 distributing copies of, offering for sale and/or publicly displaying any tickets
4 or other products that incorporate any portion of AXS’s copyright protected
5 works;
6 (b) imitating, copying, duplicating or otherwise making any use of the AXS
7 Marks, or any mark confusingly similar to the AXS Marks in any manner;
8 (c) using any false designation or origin or false description or representation
9 or any other thing calculated or likely to cause confusion, mistake, or deception
10 in the marketplace as to the source of Defendants’ goods and services or any
11 belief that Defendants’ goods and services are in any way associated with,
12 affiliated with, or related to AXS or AXS’s goods and services;
13 (d) engaging in any activity constituting unfair competition with AXS or with
14 AXS’s rights in, or to use, the AXS Marks;
15 (e) further using the AXS Marks, or confusingly similar variations thereof, in
16 or as a part of any advertising, marketing and/or media material, web page text,
17 social media platform, domain name, email, or other communication;
18 (f) accessing, decompiling, reverse engineering, disassembling or otherwise
19 modifying the AXS App;
20 (g) assisting, aiding or abetting another person, entity, or business in engaging
21 in or performing any of the activities enumerated above.
22 2. Direct Defendants to file with the Court and serve on counsel for AXS,
23 within thirty days after entry of any injunction issued by this Court, a sworn statement
24 as provided in 15 U.S.C. § 1116;
25 3. Award AXS a money judgment, granting compensatory relief for
26 Defendants’ willful copyright infringement, the precise amount to be proven at trial.
27 4. Award AXS a money judgment, granting compensatory relief for
28 Defendants’ willful violations of the Digital Millennium Copyright Act, including
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1
Dated: January 16, 2024 DORSEY & WHITNEY LLP
2
3 By: /s/ J. Michael Keyes______
J. Michael Keyes (SBN 262281)
4 [email protected]
Connor J. Hansen (pro hac vice)
5 [email protected]
Columbia Center
6 701 Fifth Avenue, Suite 6100
Seattle, WA
7 Telephone: 206.903.8800
Facsimile: 206.903.8820
8
DORSEY & WHITNEY LLP
9 Kent J. Schmidt (SBN 195969)
[email protected]
10 600 Anton Boulevard, Suite 200
Costa Mesa, CA 92626
11 Telephone: 714.800.1400
Facsimile: 714.800.1499
12
Attorneys for Plaintiff AXS Group LLC
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1 VERIFICATION
2 I, Alex Hazboun, declare as follows:
3 1. I am the Chief Technology Officer for Plaintiff AXS Group LLC
4 ("AXS"). I have reviewed the foregoing Verified Complaint and verify that the
5 statements made therein are true and correct to the best of my knowledge,
6 information, and belief.
7 2. I have personal knowledge of AXS, AXS's activities, AXS's copyright
8 and trademark rights, and AXS's interactions with Defendants, including those set
9 forth out in the foregoing Verified Complaint, and if called to testify, I would testify
10 as to the matters stated therein.
11 3. Pursuant to 28 U.S.C. § 1746, I declare under penalty of perjury under
12 the laws of the United States that the foregoing factual statements in the Verified
13 Complaint about myself, AXS, AXS's activities, AXS's copyright and trademark
14 rights, and AXS's interactions with Defendants are true and correct factual
15 statements.
16
17 Executed on December .12., 2023 in Los Angeles, California.
18
19 .A/ex h
20 Alex Hazboun
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VERIFIED COMPLAINT