Defendant licensee appealed an order from the Superior Court of Los Angeles County (California), which denied its special motion to strike plaintiff licensor’s complaint alleging causes of action for breach of a settlement agreement and specific performance.
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Overview
The licensor filed a federal suit against the licensee, alleging copyright infringement and other causes of action. The parties entered into a settlement agreement providing that the licensee would cease to use the licensor’s software. Thereafter, the licensor filed another suit in state court alleging that the licensee had not properly certified its compliance with the settlement agreement and that it had continued to use the software. The licensee filed a Code Civ. Proc., § 425.16, special motion to strike the complaint on the ground that it had been filed in retaliation for the licensee’s protected activity of submitting a declaration in an unrelated court case. The court held that the licensor’s causes of action did not arise from protected activity under § 425.16, subd. (b)(1). The licensor’s alleged motive for filing the complaint was irrelevant to a determination of whether the complaint described any protected activity. Although entering into the settlement agreement was a protected activity, the alleged breaching conduct was not. The court denied sanctions under Code Civ. Proc., § 907, because the appeal, although lacking in merit, was not brought for an improper purpose.
Outcome
The court affirmed the trial court’s order and denied the licensor’s motion for sanctions for a frivolous appeal.