Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 1 of 27

1 Frank D. Rorie Jr. (SBN 223543)

[email protected]
2 Law Office of Frank D. Rorie Jr.
8335 Sunset Boulevard, Suite 303
3
West Hollywood, CA 90069
4 Tel: (323) 337-9054
Fax: (323) 656-7155
5
Attorney for Defendant
6 PlayerAuctions Inc.

8
UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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SAN FRANCISCO DIVISION
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13 ROBLOX CORPORATION, ) CASE NO: 3:25-CV-01139-MMC

)
14 Plaintiff, ) DEFENDANT’S ANSWER TO
vs. ) PLAINTIFF’S COMPLAINT
15 )
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16 PLAYERAUCTIONS, INC., )
17 Defendant. )
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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 I. INTRODUCTION

2 More than half of all daily Roblox users are minors under the age of 18, and approximately

3 40% are children under the age of 13 (as of December 31, 2024).1 This unique demographic has

4 been a blessing and a curse for Plaintiff. While it has contributed to massive annual revenues,2 it

5 has also exposed Plaintiff to growing criticism that Roblox has not done enough to protect children

6 from a variety of predatory practices, including exploitive advertising and incessant

7 microtransactions. Many parents and even some foreign countries have completely blocked and/or

8 restricted access to Roblox as a result of these concerns.

9 Children who spend money on an online video game (often using their parent’s credit card)
10 probably do not think much about the alienability of the virtual assets they are buying. Teenagers

11 and adults, on the other hand, typically expect that in exchange for investing their time, money, and

12 effort into a game, they will have some say in how their virtual assets are managed. Plaintiff allows

13 users of all ages to transfer in game items and currency to one another within the confines of the

14 Roblox platform itself (subject to a transaction fee or tax by Roblox). But if a user attempts to buy,

15 sell, or trade virtual assets outside the Roblox ecosystem using a secondary market (such as

16 Defendant’s platform), Roblox vehemently objects in part because, according to its Complaint and

17 preliminary injunction motion, Roblox is losing out on fees and revenue that it would otherwise

18 receive from those offline transactions.

19 Plaintiff’s desire to steer all of its customers’ purchasing and trading activity to its own
20 platform (so that Plaintiff can collect taxes and fees from those transactions) is fundamentally anti-

21 competitive and at odds with unfair competition and anti-steering laws. It is also a restraint on trade

22 in violation of California law. Since 1999, Defendant has painstakingly built a business that allows

23 video game players from around the world to buy, sell, and trade video game assets in safe and

24 secure marketplaces on Defendant’s website. Each year, Defendant spends hundreds of thousands

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26 See Roblox 10-K filing for fiscal year ended December 2024 at p. 9; available at:
1

https://www.sec.gov/ix?doc=/Archives/edgar/data/1315098/000131509825000033/rblx-
27 20241231.htm.
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In 2024 alone, Roblox reported $3.6 billion in annual revenue from the sale of its virtual currency,
28 in-game items, and player subscriptions. Over the last three years (2022, 2023, and 2024), that
revenue has topped $8.6 billion. Id. at p. F-6.
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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 of dollars on risk management and fraud-prevention measures to ensure that only legitimate trades

2 between real gameplayers are allowed. Contrary to Plaintiff’ assertions, Defendant has no interest

3 in allowing scammers to use its platform to conduct nefarious transactions. In fact, Defendant has

4 gone to great lengths to curb such activity.

5 Defendant first launched its marketplace for Roblox video game assets in 2012. Since then,

6 Plaintiff and Defendant have endeavored to coexist. In that thirteen-year span, Plaintiff has

7 periodically sent Defendant take down requests when it believed that a particular Roblox offer

8 violated Plaintiff’s intellectual property rights or was somehow illegal. Defendant in turn would

9 remove offending posts in response to legitimate requests. Recently, however, the dynamic
10 between Plaintiff and Defendant has fundamentally shifted. After years of working with Defendant,

11 Plaintiff now wants to put Defendant out of business and to permanently eliminate Defendant’s

12 marketplace for Roblox-related accounts and video game assets.

13 Plaintiff’s reasons for this sudden and drastic shift, and the legal claims it is asserting to

14 effectuate its anticompetitive objectives, will be a significant part of discovery in this case.

15 Defendant respectfully requests that it be given a full and fair opportunity to investigate those

16 reasons and to assert all relevant defenses and potential counterclaims at its disposal. In its

17 Complaint, Plaintiff has portrayed Defendant and its business model in an extremely unsavory and

18 negative manner. But when all the dust settles, discovery is exchanged, and light is brought to bear

19 on the nature of Plaintiff’s claims and its motivations for pursuing them, Defendant is confident that
20 this case will be decided on the merits with the benefit of full and complete record from both sides.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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2 II. ANSWER TO COMPLAINT

3 Defendant PlayerAuctions, Inc. (“Defendant” or “PlayerAuctions”) hereby answers the

4 Complaint of Plaintiff Roblox Corporation, Inc. (“Plaintiff” or “Roblox”) as follows:

5 NATURE OF THIS ACTION

6 1. Admitted in part; otherwise denied. Defendant admits that this is an action brought

7 by Roblox against PlayerAuctions for trademark infringement under federal and state law,

8 intentional interference under state law, and unjust enrichment. Defendant is without sufficient

9 knowledge to respond to Plaintiff’s remaining allegations concerning its platform and business
10 operations and Defendant therefore denies those allegations at this time.

11 2. Admitted in part; otherwise denied. Defendant admits that it operates an online

12 marketplace that third party sellers and third party buyers can use to buy, sell, and trade authentic

13 Roblox user accounts, authentic Roblox currency (Robux), authentic Roblox in-game items, and

14 power-leveling services. Defendant further admits that it received the cease and desist letters that

15 were attached as Exhibits F and G to the Complaint. Defendant otherwise denies the allegations in

16 paragraph 2.

17 3. Admitted in part; otherwise denied. Defendant admits that Plaintiff seeks injunctive

18 relief and damages in connection with its Complaint. Defendant otherwise denies the allegations in

19 paragraph 3.
20 THE PARTIES

21 4. Admitted. Defendant admits that Roblox is a Delaware corporation with its principal

22 place of business in San Mateo, California.

23 5. Admitted in part. Defendant admits that it is a Delaware corporation. Defendant

24 further admits that it was founded in Los Angeles in 1999 and that its current U.S. based mailing

25 address is in Los Angeles, California.

26 JURISDICTION AND VENUE

27 6. Admitted in part. Defendant admits that this Court has subject matter jurisdiction

28 over the federal trademark claims asserted in the Complaint. Defendant further admits that Plaintiff

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 is asserting supplemental jurisdiction over its state law claims.

2 7. Admitted in part; otherwise denied. Defendant denies that venue is proper in this

3 District pursuant to 28 U.S.C. § 1400(a). Defendant is without sufficient knowledge to respond to

4 Plaintiff’s allegations that it was harmed in this District and therefore denies that allegation at this

5 time. Defendant admits that its website is accessible to users within the District but that fact alone

6 is not sufficient to confer personal jurisdiction or venue under controlling law.

7 8. Denied. Defendant denies that its actions as alleged in the Complaint specifically

8 targeted or focused on the State of California. Defendant is without sufficient knowledge to

9 respond to Plaintiff’s remaining allegations concerning Plaintiff’s alleged harm and operations and
10 therefore denies those allegations at this time.

11 9. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

12 allegations in paragraph 9 and therefore denies those allegations at this time.

13 10. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

14 allegations in paragraph 10 and therefore denies those allegations at this time.

15 11. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

16 allegations in paragraph 11 and therefore denies those allegations at this time.

17 12. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

18 allegations in paragraph 12 and therefore denies those allegations at this time.

19 13. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

20 allegations in paragraph 13 and therefore denies those allegations at this time.

21 14. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

22 allegations in paragraph 14 and therefore denies those allegations at this time.

23 15. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

24 allegations in paragraph 15 and therefore denies those allegations at this time.

25 16. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

26 allegations in paragraph 16 and therefore denies those allegations at this time.

27 17. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

28 allegations in paragraph 17 and therefore denies those allegations at this time.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 18. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

2 allegations in paragraph 18 and therefore denies those allegations at this time.

3 19. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

4 allegations in paragraph 19 and therefore denies those allegations at this time.

5 20. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

6 allegations in paragraph 20 and therefore denies those allegations at this time.

7 21. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

8 allegations in paragraph 21 and therefore denies those allegations at this time.

9 22. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

10 allegations in paragraph 22 and therefore denies those allegations at this time.

11 THE ROBLOX MARKS

12 23. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

13 allegations in paragraph 23 and therefore denies those allegations at this time.

14 24. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

15 allegations in paragraph 24 and therefore denies those allegations at this time.

16 25. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

17 allegations in paragraph 25 and therefore denies those allegations at this time.

18 26. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

19 allegations in paragraph 25 and therefore denies those allegations at this time.

20 THE ROBLOX TERMS

21 27. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

22 allegations in paragraph 27 and therefore denies those allegations at this time.

23 28. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

24 allegations in paragraph 28 and therefore denies those allegations at this time.

25 29. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

26 allegations in paragraph 27 and therefore denies those allegations at this time.

27 30. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

28 allegations in paragraph 30 and therefore denies those allegations at this time.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 31. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

2 allegations in paragraph 32 and therefore denies those allegations at this time.

3 32. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

4 allegations in paragraph 32 and therefore denies those allegations at this time.

5 33. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

6 allegations in paragraph 33 and therefore denies those allegations at this time.

7 34. Denied. Defendant is without sufficient knowledge to respond to Plaintiff’s

8 allegations in paragraph 34 and therefore denies those allegations at this time.

9 DEFENDANT’S BUSINESS AND UNAUTHORIZED CONDUCT

10 35. Admitted. Defendant admits that it operates a website at the Internet domain name

11 www.playerauctions.com.

12 36. Admitted in part; otherwise denied. Defendant admits that it describes itself as a

13 “top selling gamer marketplace … that provides a secure player-to-player trading experience for

14 buyers and sellers of online gaming products.” Defendant is without sufficient knowledge to

15 respond to the remaining allegations in paragraph 36 and therefore denies those allegations at this

16 time.

17 37. Admitted in part; otherwise denied. Defendant admits that, using its website, third

18 party sellers are able to post and sell authentic Roblox user accounts, Roblox virtual currency,

19 Roblox in-game items, and Roblox power-leveling services. Defendant is without sufficient
20 knowledge to respond to the remaining allegations in paragraph 37 and therefore denies those

21 allegations at this time.

22 38. Denied. Defendant denies that it improperly uses Roblox’s Marks to advertise and

23 sell Roblox user accounts, virtual currency, in-game items, and power-leveling services.

24 39. Admitted in part; otherwise denied. Defendant admits that it maintains a YouTube

25 channel that promotes Defendant’s services generally, but on information and belief, that channel

26 does not contain any specific reference to Roblox or any of its marks. Defendant is without

27 sufficient knowledge to respond to the remaining allegations in paragraph 39 and therefore denies

28 those allegations at this time.

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1 40. Admitted in part; otherwise denied. Defendant admits that it has an account on

2 Reddit.com that promotes Defendant’s services generally, but on information and belief, that

3 channel does not contain any improper use of Roblox’s alleged marks. Defendant is without

4 sufficient knowledge to respond to the remaining allegations in paragraph 39 and therefore denies

5 those allegations at this time.

6 41. Admitted in part; otherwise denied. Defendant admits that it earns a percentage

7 profit from transactions between buyers and sellers on its website. Defendant is without sufficient

8 knowledge to respond to the remaining allegations in paragraph 41 and therefore denies those

9 allegations at this time.

10 42. Admitted in part; otherwise denied. Defendant admits that buyers and sellers can use

11 real-world currency to facilitate their transactions on Defendant’s website. Defendant is without

12 sufficient knowledge to respond to the remaining allegations in paragraph 42 and therefore denies

13 those allegations at this time.

14 43. Admitted in part; otherwise denied. Defendant admits that its website contains a

15 price-tracker for Robux related sales. Defendant is without sufficient knowledge to respond to the

16 remaining allegations in paragraph 43 and therefore denies those allegations at this time.

17 44. Denied. Defendant denies that its website prominently advertises unauthorized sales

18 of Robux in violation any trademark laws. Defendant is without sufficient knowledge to respond to

19 the remaining allegations in paragraph 44 and therefore denies those allegations at this time.
20 45. Denied. Defendant is without sufficient knowledge to respond to the allegations in

21 paragraph 45 and therefore denies those allegations at this time. On information and belief,

22 Defendant first published a marketplace for Roblox-related services back in 2012.

23 46. Admitted in part; otherwise denied. Defendant admits that Plaintiff sent the cease

24 and desist letters attached as Exhibits E and F to the Complaint. Defendant is without sufficient

25 knowledge to respond to the remaining allegations in paragraph 46 and therefore denies those

26 allegations at this time.

27 47. Denied. Defendant denies that it has engaged in any scheme with buyers or sellers

28 on its website. Defendant is without sufficient knowledge to respond to the remaining allegations in

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1 paragraph 47 and therefore denies those allegations at this time.

2 48. Admitted in part; otherwise denied. Defendant admits that its website allows users

3 to identify active sellers or Roblox-related products and services. Defendant is without sufficient

4 knowledge to respond to the remaining allegations in paragraph 48 and therefore denes those

5 allegations at this time.

6 49. Denied. Defendant is without sufficient knowledge to respond to the allegations in

7 paragraph 49 and therefore denes those allegations at this time.

8 50. Denied. Defendant is without sufficient knowledge to respond to the allegations in

9 paragraph 50 and therefore denes those allegations at this time.

10 51. Denied. Defendant denies that it is a seller of Roblox-related goods and services on

11 its website. Defendant is without sufficient knowledge to respond to the allegations in paragraph 51

12 and therefore denes those allegations at this time.

13 52. Denied. Defendant’s website does not falsely imply that the Roblox-related goods

14 and services for sale are endorsed or authorized by Roblox. To the contrary, Defendant’s website

15 contains a disclaimer expressly disavowing such an affiliation or connection.

16 53. Denied. Defendant denies that it has improperly used Roblox’s trademarks on its

17 website or that relevant consumers are likely to be confused by any affiliation or connection

18 between Defendant and Roblox.

19 54. Denied. Defendant is without sufficient knowledge to respond to the allegations in

20 paragraph 54 and therefore denes those allegations at this time.

21 55. Denied. Defendant is without sufficient knowledge to respond to the allegations in

22 paragraph 55 and therefore denes those allegations at this time.

23 56. Denied. Defendant is without sufficient knowledge to respond to the allegations in

24 paragraph 56 and therefore denes those allegations at this time.

25 57. Denied. Defendant is without sufficient knowledge to respond to the allegations in

26 paragraph 57 and therefore denes those allegations at this time.

27 58. Denied. Defendant is without sufficient knowledge to respond to the allegations in

28 paragraph 58 and therefore denes those allegations at this time.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 59. Denied. Defendant is without sufficient knowledge to respond to the allegations in

2 paragraph 59 and therefore denes those allegations at this time.

3 60. Denied. Defendant is without sufficient knowledge to respond to the allegations in

4 paragraph 60 and therefore denes those allegations at this time.

5 61. Denied. Defendant is without sufficient knowledge to respond to the allegations in

6 paragraph 61 and therefore denes those allegations at this time.

7 62. Denied. Defendant is without sufficient knowledge to respond to the allegations in

8 paragraph 62 and therefore denes those allegations at this time.

9 FIRST CAUSE OF ACTIION

10 FALSE DESIGNATION OF ORIGIN REGARDING THE MARKS

11 (15 U.S.C. §1125(A))

12 63. Defendant incorporates by reference its responses to the preceding paragraphs as set

13 forth herein.

14 64. Denied. Defendant is without sufficient knowledge to respond to the allegations in

15 paragraph 64 and therefore denies those allegations at this time.

16 65. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

17 constitutes improper infringement or false designation of origin or that such use would cause

18 confusion amongst relevant consumers.

19 66. Denied. Defendant denies that its use of the Roblox name on Defendant’s website
20 constitutes improper infringement or false designation of origin or that such use would cause

21 confusion amongst relevant consumers. Defendant is without sufficient knowledge to respond to

22 the remaining allegations in paragraph 66 and therefore denies those allegations at this time.

23 67. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

24 constitutes improper infringement or false designation of origin or that such use would cause

25 confusion amongst relevant consumers.

26 68. Denied. Defendant denies that it acted willfully or intentionally to harm Roblox.

27 Defendant is without sufficient knowledge to respond to the remaining allegations in paragraph 68

28 and therefore denies those allegations at this time.

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1 69. Denied. Defendant is without sufficient knowledge to respond to the remaining

2 allegations in paragraph 69 and therefore denies those allegations at this time.

3 SECOND CAUSE OF ACTIION

4 FEDERAL TRADEMARK DILUTION

5 (15 U.S.C. §1125(C))

6 70. Defendant incorporates by reference its responses to the preceding paragraphs as f

7 set forth herein.

8 71. Denied. Defendant is without sufficient knowledge to respond to the allegations in

9 paragraph 71 and therefore denes those allegations at this time.

10 72. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

11 constitutes dilution by blurring or tarnishment or that such use would cause confusion amongst

12 relevant consumers. Defendant is without sufficient knowledge to respond to the remaining

13 allegations in paragraph 72 and therefore denies those allegations at this time.

14 73. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

15 constitutes dilution by blurring or tarnishment or that such use would cause confusion amongst

16 relevant consumers. Defendant is without sufficient knowledge to respond to the remaining

17 allegations in paragraph 73 and therefore denies those allegations at this time.

18 74. Denied. Defendant denies that it acted willfully or intentionally to harm Roblox.

19 Defendant is without sufficient knowledge to respond to the remaining allegations in paragraph 74

20 and therefore denies those allegations at this time.

21 75. Denied. Defendant is without sufficient knowledge to respond to the remaining

22 allegations in paragraph 75 and therefore denies those allegations at this time.

23 THIRD CAUSE OF ACTIION

24 TRADEMARK COUNTERFEITING

25 (15 U.S.C. §1116(D))

26 76. Defendant incorporates by reference its responses to the preceding paragraphs as set

27 forth herein.

28 77. Denied. Defendant denies that it has used counterfeit versions of Roblox’s marks on

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
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1 its website. Defendant further denies that the Roblox related products and services that it offers for

2 sale on its website and materially different from those offered by Roblox.

3 78. Denied. Defendant denies that it has used counterfeit versions of Roblox’s marks on

4 its website. Defendant further denies that the Roblox related products and services that it offers for

5 sale on its website and materially different from those offered by Roblox. Defendant is without

6 sufficient knowledge to respond to the remaining allegations in paragraph 78 and therefore denies

7 those allegations at this time.

8 79. Denied. Defendant denies that it has used counterfeit versions of Roblox’s marks on

9 its website. Defendant further denies that the Roblox related products and services that it offers for
10 sale on its website and materially different from those offered by Roblox. Defendant is without

11 sufficient knowledge to respond to the remaining allegations in paragraph 79 and therefore denies

12 those allegations at this time.

13 80. Denied. Defendant is without sufficient knowledge to respond to the remaining

14 allegations in paragraph 80 and therefore denies those allegations at this time.

15 FOURTH CAUSE OF ACTIION

16 FEDERAL TRADEMARK INFRINGEMENT

17 (15 U.S.C. §1114)

18 81. Defendant incorporates by reference its responses to the preceding paragraphs as set

19 forth herein.
20 82. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

21 was improper or constitutes trademark infringement.

22 83. Denied. Defendant is without sufficient knowledge to respond to the allegations in

23 paragraph 83 and therefore denies those allegations at this time.

24 84. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

25 was improper or constitutes trademark infringement. Defendant is without sufficient knowledge to

26 respond to the remaining allegations in paragraph 84 and therefore denies those allegations at this

27 time.

28 85. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

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1 was improper or constitutes trademark infringement.

2 86. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

3 was improper or constitutes trademark infringement. Defendant is without sufficient knowledge to

4 respond to the remaining allegations in paragraph 86 and therefore denies those allegations at this

5 time.

6 87. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

7 was improper or constitutes trademark infringement or caused confusion amongst relevant

8 consumers.

9 88. Denied. Defendant denies that its use of the Roblox name on Defendant’s website
10 was improper or constitutes trademark infringement or caused confusion amongst relevant

11 consumers.

12 89. Denied. Defendant denies that acted fraudulently, willfully, in bad faith, or with an

13 intent to harm Roblox. Defendant is without sufficient knowledge to respond to the remaining

14 allegations in paragraph 89 and therefore denies those allegations at this time.

15 90. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

16 was improper or constitutes trademark infringement or caused confusion amongst relevant

17 consumers. Defendant is without sufficient knowledge to respond to the remaining allegations in

18 paragraph 90 and therefore denies those allegations at this time.

19 91. Denied. Defendant denies that it has caused substantial and irreparable injury to
20 Roblox. Defendant is without sufficient knowledge to respond to the remaining allegations in

21 paragraph 90 and therefore denies those allegations at this time.

22 FIFTH CAUSE OF ACTIION

23 STATE COMMON LAW TRADEMARK INFRINGEMENT

24 92. Defendant incorporates by reference its responses to the preceding paragraphs as f

25 set forth herein.

26 93. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

27 was improper or constitutes trademark infringement.

28 94. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

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1 was improper or constitutes trademark infringement or caused confusion amongst relevant

2 consumers.

3 95. Denied. Defendant denies that acted willfully or with an intent to harm Roblox.

4 Defendant is without sufficient knowledge to respond to the remaining allegations in paragraph 89

5 and therefore denies those allegations at this time.

6 96. Denied. Defendant denies that it has caused substantial and irreparable injury to

7 Roblox.

8 97. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

9 was improper or constitutes trademark infringement or caused confusion amongst relevant

10 consumers. Defendant is without sufficient knowledge to respond to the remaining allegations in

11 paragraph 97 and therefore denies those allegations at this time.

12 SIXTH CAUSE OF ACTION

13 STATE COMMON LAW PASSIING OFF AND UNFAIR COMPETITION

14 98. Defendant incorporates by reference its responses to the preceding paragraphs as set

15 forth herein.

16 99. Denied. Defendant is without sufficient knowledge to respond to the allegations in

17 paragraph 99 and therefore denies those allegations at this time.

18 100. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

19 was improper or constitutes passing off or caused confusion amongst relevant consumers.
20 101. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

21 was improper or constitutes passing off or caused confusion amongst relevant consumers.

22 Defendant is without sufficient knowledge to respond to the remaining allegations in paragraph 101

23 and therefore denies those allegations at this time.

24 102. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

25 was improper or constitutes passing off or caused confusion amongst relevant consumers.

26 103. Denied. Defendant is without sufficient knowledge to respond to the remaining

27 allegations in paragraph 103 and therefore denies those allegations at this time.

28 SEVENTH CAUSE OF ACTION

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1 TORTIOUS INTERFERENCE WITH PROSPECTIVE ECONOMIC ADVANTAGE

2 104. Defendant incorporates by reference its responses to the preceding paragraphs as set

3 forth herein.

4 105. Denied. Defendant is without sufficient knowledge to respond to the allegations in

5 paragraph 105 and therefore denies those allegations at this time.

6 106. Denied. Defendant is without sufficient knowledge to respond to the allegations in

7 paragraph 106 and therefore denies those allegations at this time.

8 107. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

9 was improper or constitutes trademark infringement, trademark dilution, trademark counterfeiting,

10 false designation of origin, or unfair competition.

11 108. Denied. Defendant is without sufficient knowledge to respond to the allegations in

12 paragraph 108 and therefore denies those allegations at this time.

13 109. Denied. Defendant denies that its actions as alleged were undertaken with willful

14 and malicious intent.

15 110. Denied. Defendant denies that Roblox has suffered and will continue to suffer

16 irreparable harm. Defendant is without sufficient knowledge to respond to the remaining

17 allegations in paragraph 110 and therefore denies those allegations at this time.

18 EIGHTH CAUSE OF ACTION

19 TORTIOUS INTERFERENCE WITH CONTRACTUAL RELATIONS

20 111. Defendant incorporates by reference its responses to the preceding paragraphs as set

21 forth herein.

22 112. Denied. Defendant is without sufficient knowledge to respond to the allegations in

23 paragraph 112 and therefore denies those allegations at this time.

24 113. Denied. Defendant is without sufficient knowledge to respond to the allegations in

25 paragraph 113 and therefore denies those allegations at this time.

26 114. Denied. Defendant is without sufficient knowledge to respond to the allegations in

27 paragraph 114 and therefore denies those allegations at this time.

28 115. Denied. Defendant denies that Roblox has suffered and will continue to suffer

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1 irreparable harm. Defendant is without sufficient knowledge to respond to the remaining

2 allegations in paragraph 115 and therefore denies those allegations at this time.

3 NINTH CAUSE OF ACTION

4 UNJUST ENRICHMENT

5 116. Defendant incorporates by reference its responses to the preceding paragraphs as f

6 set forth herein.

7 117. Denied. Defendant denies that it unjustly received benefits at the expense of Roblox.

8 118. Denied. Defendant denies that it unjustly received benefits at the expense of Roblox.

9 Defendant is without sufficient knowledge to respond to the allegations in paragraph 118 and
10 therefore denies those allegations at this time.

11 119. Denied. Defendant is without sufficient knowledge to respond to the allegations in

12 paragraph 119 and therefore denies those allegations at this time.

13 TENTH CAUSE OF ACTION

14 INJUNCTIVE RELIEF

15 120. Defendant incorporates by reference its responses to the preceding paragraphs as set

16 forth herein.

17 121. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

18 was improper or constitutes a violation of federal or state trademark law. Defendant is without

19 sufficient knowledge to respond to the remaining allegations in paragraph 121 and therefore denies
20 those allegations at this time.

21 122. Denied. Defendant denies that its use of the Roblox name on Defendant’s website

22 was improper or constitutes a violation of federal or state trademark law. Defendant further denies

23 that Roblox has suffered substantial and irreparable injury. Defendant is without sufficient

24 knowledge to respond to the remaining allegations in paragraph 122 and therefore denies those

25 allegations at this time.

26 123. Denied. Defendant denies that Roblox has suffered substantial and irreparable

27 injury. Defendant is without sufficient knowledge to respond to the remaining allegations in

28 paragraph 123 and therefore denies those allegations at this time.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 17 of 27

1 124. Denied. Defendant is without sufficient knowledge to respond to the allegations in

2 paragraph 124 and therefore denies those allegations at this time.

3 125. Denied. Defendant is without sufficient knowledge to respond to the allegations in

4 paragraph 125 and therefore denies those allegations at this time.

5 126. Denied. Defendant is without sufficient knowledge to respond to the allegations in

6 paragraph 126 and therefore denies those allegations at this time.

7 127. Denied. Defendant denies that Roblox is likely to succeed on the merits of each of

8 its claims.

9 128. Denied. Defendant is without sufficient knowledge to respond to the allegations in

10 paragraph 128 and therefore denies those allegations at this time.

11 PRAYER FOR RELIEF

12 129. Denied. Defendant denies that Roblox is entitled to the relief requested in its prayer.

13 Defendant is without sufficient knowledge to respond to the remaining allegations in paragraph 129

14 and therefore denies those allegations at this time.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 18 of 27

2 III. DEMAND FOR JURY TRIAL

3 Defendant hereby requests a jury on all issues, causes of action, and defenses that are

4 triable by jury.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 19 of 27

1 IV. DEFENSES

2 Defendant hereby asserts the following defenses (affirmative and non-affirmative) to

3 Plaintiff’s Complaint.

4 FIRST DEFENSE

5 (Failure to State a Claim)

6 The Complaint fails to state a claim upon which relief can be granted for at least the

7 following reasons.

8 Plaintiff’s federal trademark infringement and false designation of origin claim will fail,

9 among other reasons, because a reasonably prudent consumer is not likely to be confused by the
10 source, origin, or affiliation of any Roblox-related service on Defendant’s website. On information

11 and belief, Defendant’s consumers are adults (over the age of 18) who understand that buying,

12 selling, and/or trading of Roblox-related video game accounts, items, and currency on Defendant’s

13 website is not an activity that is sponsored by or endorsed by Roblox. In fact, Defendant expressly

14 disclaims any affiliation with Roblox on every offer listing on its website for a Roblox related

15 service. Moreover, Defendant’s use of the Roblox name to identify authentic Roblox-related video

16 game accounts, items, and currency on Defendant’s website is protected activity under the

17 nominative fair use doctrine. Discovery and investigation is ongoing and continuing.

18 Plaintiff’s federal counterfeiting claim will fail, among other reasons, because every

19 Roblox-related account, item, or currency that is offered for sale on Defendant’s website is an
20 authentic Roblox-related video game account, item, or currency. Defendant does not manufacture

21 or create any non-authentic Roblox-related accounts, items, or currency. Nor does Defendant

22 knowingly allow any non-authentic Roblox-related accounts, items, or currency to be bought, sold,

23 or traded using its website. Discovery and investigation is ongoing and continuing.

24 Plaintiff’s federal trademark dilution claim will fail, among other reasons, because

25 Plaintiff has not alleged facts sufficient to prove dilution by tarnishment or blurring. Plaintiff’s

26 Complaint does not allege that Defendant is using Plaintiff’s mark in an unsavory, offensive, or

27 outrageous manner. Plaintiff’s mark is also not sufficiently famous to qualify as an everyday,

28 household name subject to dilution by blurring. Discovery and investigation is ongoing and

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 20 of 27

1 continuing.

2 Plaintiff’s intentional interference with contract claim will fail, among other reasons,

3 because Defendant is not actively inducing Plaintiff’s customers to breach their terms of service

4 with Plaintiff, nor is Defendant acting in way that would intentionally disrupt the contract

5 relationship between Plaintiff and its customers. Among other things, Defendant is not offering

6 “cheat codes” that would substantially interfere with Plaintiff’s terms of service, nor is Defendant

7 launching “automated bots” that disrupt the game play experience on Roblox. To the contrary,

8 Defendant offers a safe and secure marketplace for the purchase and sale of authentic Roblox-

9 related video game accounts, items, and currency. On information and belief, many of Defendant’s
10 customers for Roblox-related services come to Defendant’s website not because of any active

11 inducement by Defendant, but because they previously had a positive experience on Defendant’s

12 website for buying, selling and/or trading a video game asset in another game and they wish to

13 pursue a similar transaction for a Roblox-related account, item, or currency. In addition, the vast

14 majority of Plaintiff’s customers are under the age of 18 and do not have the legal capacity to

15 consent to Plaintiff’s terms of service. Plaintiff’s efforts to enforce contracts with minors under the

16 age of 18 is unconscionable and should not be allowed. Discovery and investigation is ongoing and

17 continuing.

18

19 SECOND DEFENSE
20 (Laches)

21 Plaintiff’s claims are barred, in whole or in part, by the doctrine of laches. On information

22 and belief, Plaintiff has been aware of Defendant’s website including its Roblox marketplace since

23 at least 2017 when Plaintiff sent a take-down demand to Defendant’s then website service provider.

24 Prior to this take down letter, Defendant had been openly operating its marketplace for Roblox-

25 related items since at least 2012. On information and belief, Plaintiff officially launched its Roblox

26 video game service in or about 2006. Consequently, for almost half the time that Roblox has been

27 in existence (approximately nineteen years), Defendant has openly operated a marketplace for

28 authentic Roblox-related video game accounts, items, and currency. During this nine-plus year

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 21 of 27

1 period, Defendant has invested significant sums of time, money, and energy into its business,

2 including the design, infrastructure, and security of its Roblox marketplace. After nearly ten years

3 of operation and investment, it would be unfair and prejudicial to Defendant to forever destroy its

4 Roblox marketplace based on specious federal trademark claims and infirm intentional interference

5 causes of action. Discovery and investigation is ongoing and continuing.

7 THIRD DEFENSE

8 (Statute of Limitations)

9 Plaintiff’s claims are barred, in whole or in part, by the two year statute of limitations set
10 forth in California Code of Civil Procedure section 339(1). On information and belief, Plaintiff has

11 been aware of Defendant’s website including its Roblox marketplace since at least 2017 when

12 Plaintiff sent a take-down demand to Defendant’s then website service provider. Prior to this take

13 down letter, Defendant had been openly operating its marketplace for Roblox-related items since at

14 least 2012. On information and belief, Plaintiff officially launched its Roblox video game service in

15 or about 2006. Consequently, for almost half the time that Roblox has been in existence

16 (approximately nineteen years), Defendant has openly operated a marketplace for authentic Roblox-

17 related video game accounts, items, and currency. During this nine-plus year period, Defendant has

18 invested significant sums of time, money, and energy into its business, including the design,

19 infrastructure, and security of its Roblox marketplace. After nearly ten years of operation and
20 investment, it would be unfair and prejudicial to Defendant to forever destroy its Roblox

21 marketplace based on specious federal trademark claims and infirm intentional interference causes

22 of action. Discovery and investigation is ongoing and continuing.

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24 FOURTH DEFENSE

25 (Nominative Fair Use)

26 Plaintiff’s federal and state trademark claims are barred, in whole or in part, by the doctrine

27 of nominative fair use. On information and belief, Defendant uses the Roblox name on its website

28 to identify authentic Roblox-related accounts, items, and currency that are available for sale.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 22 of 27

1 Defendant’s use of the Roblox name on its website is protected activity because Defendant cannot

2 reasonably refer to the fact that offers Roblox-related services without using the name Roblox.

3 Defendant is not using more of the Roblox name than is necessary to identify the fact that it has

4 Roblox-related accounts, items, and currency available on its website. And Defendant is not

5 suggesting that its services are sponsored by or endorsed by Roblox. In fact, Defendant expressly

6 disclaims any affiliation with Roblox on every relevant offer listing page. Discovery and

7 investigation is ongoing and continuing.

9 FIFTH DEFENSE
10 (First Sale Doctrine)

11 Plaintiff’s federal and state trademark claims are barred, in whole or in part, by the first sale

12 doctrine. On information and belief, the Roblox-related accounts, items, and currency that are

13 offered for sale on Defendant’s website are authentic Roblox video game assets. On information

14 and belief, title to those assets passed or should have passed to Plaintiff’s customers when Plaintiff

15 charged them a fee for using or playing the Roblox game. Plaintiff’s customers therefore have a

16 right to resell the accounts, in-game items, and currency they have purchased from Roblox on

17 Defendant’s secondary-market website under the first sale doctrine. Discovery and investigation is

18 ongoing and continuing.

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20 SIXTH DEFENSE

21 (Prohibition Against Extraterritorial Jurisdiction)

22 Plaintiff’s federal and state trademark claims are barred, in whole or in part, by the

23 applicable prohibition against extraterritorial jurisdiction. Under the recent U.S. Supreme Court

24 decision in Abitron Austria GMBH v. Hectronic International, Inc., 600 U.S. 412 (2023), federal

25 trademark claims cannot be based on infringing conduct that occurs outside the United States.

26 Similarly, Plaintiff’s state trademark claims cannot be based on infringing conduct that occurs

27 outside the State of California. On information and belief, Defendant’s marketplace for Roblox-

28 related accounts, items, and currency are available to Defendant’s customers around the world. To

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 23 of 27

1 the extent Plaintiff seeks to use its federal and state trademark claims to enjoin or seek damages for

2 conduct that occurs outside the United States or the State of California (where the buying, selling,

3 and trading video game assets may be legally permitted under a sovereign state’s jurisdiction),

4 Plaintiff’s claims should be barred by the prohibition against extraterritorial jurisdiction. Discovery

5 and investigation is ongoing and continuing.

7 SEVENTH DEFENSE

8 (Antitrust Violations)

9 Plaintiff’s claims are barred, in whole or in part, by the antitrust laws of the United States
10 and antitrust laws of the State of California. On information and belief, Plaintiff’s federal and state

11 trademark claims seek to impose an unfair restraint on trade and unfair monopoly in connection

12 with sale and purchase of Roblox-related related accounts, in-game items, and currency. On further

13 information and belief, Plaintiff allows consumers who pay Roblox a tax and/or fee to buy, sell, and

14 trade in-game items and currency within the Roblox game itself. However, Plaintiff prohibits

15 consumers who do not pay Roblox a tax and/or fee from buying, selling, or trading in-game items

16 and currency on secondary markets such as Defendant’s website. Discovery and investigation is

17 ongoing and continuing.

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19 EIGHTH DEFENSE
20 (California Business & Professions Code Section 16660)

21 Plaintiff’s claims are barred, in whole or in part, by California Business & Professions Code

22 Section 16600. On information and belief, Plaintiff’s federal and state trademark claims seek to

23 impose an unfair restraint on trade in connection with sale and purchase of Roblox-related related

24 accounts, in-game items, and currency. On further information and belief, Plaintiff allows

25 consumers who pay Roblox a tax and/or fee to buy, sell, and trade in-game items and currency

26 within the Roblox game itself. However, Plaintiff prohibits consumers who do not pay Roblox a

27 tax and/or fee from buying, selling, or trading in-game items and currency on secondary markets

28 such as Defendant’s website. Discovery and investigation is ongoing and continuing.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 24 of 27

2 NINTH DEFENSE

3 (Unfair Competition)

4 Plaintiff’s claims are barred, in whole or in part, by California Business and Professions

5 Code section 17200 et seq. and California common law that prohibits unfair competition. On

6 information and belief, Plaintiff allows consumers who pay Roblox a tax and/or fee to buy, sell, and

7 trade in-game items and currency within the Roblox game itself. However, Plaintiff prohibits

8 consumers who do not pay Roblox a tax and/or fee from buying, selling, or trading in-game items

9 and currency on secondary markets such as Defendant’s website. Discovery and investigation is
10 ongoing and continuing.

11

12 TENTH DEFENSE

13 (Unclean Hands)

14 Plaintiff’s claims are barred, in whole or in part, by the doctrine of unclean hands. On

15 information and belief, Plaintiff is not fully complying with California Business and Professions

16 Code section 17500.6, which requires Plaintiff to make certain disclosures to its customers if in-

17 game items and currency that are purchased through the Roblox platform are sold pursuant to a

18 license agreement. Discovery and investigation is ongoing and continuing.

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20 ELEVENTH DEFENSE

21 (Privilege/Justification to Protect Economic Interest)

22 Plaintiff’s tortious interference claims are barred, in whole or in part, because Defendant

23 acted in good faith and with a legitimate business purpose in allowing authentic Roblox related

24 accounts, in-game items, and currency to be bought, sold, and traded using Defendant’s website.

25 Discovery and investigation is ongoing and continuing.

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27 TWELFTH DEFENSE

28 (Lack of Pendant and/or Supplemental Jurisdiction)

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 25 of 27

1 Plaintiff’s state law are barred, in whole or in part, because they are not so intertwined with

2 Plaintiff’s federal trademark claims that the Court should exercise pendant or supplemental

3 jurisdiction over them. Plaintiff and Defendant are both incorporated in the State of Delaware, so

4 there is no diversity jurisdiction in this case. Subject matter jurisdiction only exists if Plaintiff can

5 pursue a valid federal claim and the Court agrees to exercise pendant or supplemental jurisdiction

6 over the remaining state law claims. Discovery and investigation is ongoing and continuing.

8 THIRTEENTH DEFENSE

9 (Improper Venue Allegations)

10 Plaintiff’s claims are barred, in whole or in part, because it has not properly alleged venue in

11 the Northern District of California. Plaintiff alleges in part that venue is proper based on 28 U.S.C.

12 1400(a), but that statute is inapplicable because Plaintiff is not asserting a claim for copyright or

13 patent infringement. In addition, Plaintiff threatened to sue Defendant in the Central District of

14 California in the cease and desist letters that preceded Plaintiff’s Complaint, and Plaintiff even sent

15 Defendant a draft complaint to that effect. However, Plaintiff filed its Complaint in the Northern

16 District of California without expressly alleging any sales by Defendant to customers in the

17 Northern District. Discovery and investigation is ongoing and continuing.

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19 FOURTEENTH DEFENSE
20 (Waver/Estoppel)

21 Plaintiff’s claims are barred, in whole or in part, by the doctrines of waiver and estoppel.

22 On information and belief, Plaintiff has been aware of Defendant’s website including its Roblox

23 marketplace since at least 2017 when Plaintiff sent a take-down demand to Defendant’s then

24 website service provider. Prior to this take down letter, Defendant had been openly operating its

25 marketplace for Roblox-related items since at least 2012. On information and belief, Plaintiff

26 officially launched its Roblox video game service in or about 2006. Consequently, for almost half

27 the time that Roblox has been in existence (approximately nineteen years), Defendant has openly

28 operated a marketplace for authentic Roblox-related video game accounts, items, and currency.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 26 of 27

1 During this nine-plus year period, Defendant has invested significant sums of time, money, and

2 energy into its business, including the design, infrastructure, and security of its Roblox marketplace.

3 After nearly ten years of operation and investment, it would be unfair and prejudicial to Defendant

4 to forever destroy its Roblox marketplace based on specious federal trademark claims and infirm

5 intentional interference causes of action. Discovery and investigation is ongoing and continuing.

7 FIFTEENTH DEFENSE

8 (Failure to Mitigate Damages)

9 Plaintiff’s claims are barred, in whole or in part, by a failure to mitigate damages if any. On
10 information and belief, Plaintiff has been aware of Defendant’s website including its Roblox

11 marketplace since at least 2017 when Plaintiff sent a take-down demand to Defendant’s then

12 website service provider. Prior to this take down letter, Defendant had been openly operating its

13 marketplace for Roblox-related items since at least 2012. On information and belief, Plaintiff

14 officially launched its Roblox video game service in or about 2006. Consequently, for almost half

15 the time that Roblox has been in existence (approximately nineteen years), Defendant has openly

16 operated a marketplace for authentic Roblox-related video game accounts, items, and currency.

17 During this nine-plus year period, Defendant has invested significant sums of time, money, and

18 energy into its business, including the design, infrastructure, and security of its Roblox marketplace.

19 After nearly ten years of operation and investment, it would be unfair and prejudicial to Defendant
20 to forever destroy its Roblox marketplace based on specious federal trademark claims and infirm

21 intentional interference causes of action. Discovery and investigation is ongoing and continuing.

22

23 RESERVATION OF DEFENSES

24 Defendant hereby reserves any and all further defenses that may be asserted against the

25 claims in Plaintiff’s Complaint.

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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT
 Case 3:25-cv-01139-MMC Document 31 Filed 03/31/25 Page 27 of 27

1 DATED: March 31, 2025 THLAW OFFICE OF FRANK D. RORIE JR.

3 /s/ Frank D. Rorie Jr.

4 Frank D. Rorie Jr.

Attorney for Defendant
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DEFENDANT’S ANSWER TO PLAINTIFF’S COMPLAINT