Justia Copyright Opinion Summaries

Compulife Software, Inc. created software to generate life insurance quotes using a proprietary database of insurance rates. The defendants, Moses Newman, Aaron Levy, Binyomin Rutstein, and David Rutstein, were accused of copying Compulife’s software code and misappropriating its trade secret by scraping its database to use on their own websites. Compulife alleged that this led to a decline in its sales and revenue.The United States District Court for the Southern District of Florida initially ruled against Compulife on the copyright infringement claim but in favor of Compulife on the trade secret misappropriation claim. The court found that the defendants had not infringed on Compulife’s copyright because the copied elements were not protectable. However, it concluded that the defendants had misappropriated Compulife’s trade secret by acquiring the database through improper means, specifically scraping. The court awarded Compulife compensatory and punitive damages and held the defendants jointly and severally liable.The United States Court of Appeals for the Eleventh Circuit reviewed the case. It found that the district court erred by not considering the arrangement of Compulife’s code as a potentially protectable element under copyright law. The appellate court reversed the district court’s ruling on the copyright claim and remanded for further fact-finding on whether the arrangement of the code was protectable. The appellate court affirmed the district court’s ruling on the trade secret misappropriation claim, agreeing that the defendants had used improper means to acquire the trade secret. It also upheld the joint and several liability for the defendants, noting that this is standard for trade secret claims under Florida law. The case was affirmed in part, reversed in part, and remanded for further proceedings. View "Compulife Software Inc. v. Moses Newman" on Justia Law

Affordable Aerial Photography, Inc. (AAP) filed a copyright infringement lawsuit against Property Matters USA, LLC (Property Matters) and Home Junction Inc. (Home Junction) in the Southern District of Florida. AAP alleged that Property Matters used a copyrighted aerial photograph on its website without permission. The photograph, created by AAP in 2010, was registered with the Register of Copyrights in 2018. Property Matters moved to dismiss the case, arguing that the statute of limitations had expired. Before the court ruled on the motion, AAP voluntarily dismissed the case without prejudice under Rule 41(a)(1)(A)(i).The district court denied Property Matters' motion for attorney’s fees under 17 U.S.C. § 505, concluding that Property Matters was not the prevailing party because the voluntary dismissal did not materially alter the legal relationship between the parties. The court applied the discovery rule, determining that AAP discovered the alleged infringement in February 2022, making the claim timely.The United States Court of Appeals for the Eleventh Circuit reviewed the case and affirmed the district court’s decision. The appellate court held that a defendant is not the prevailing party under § 505 when a plaintiff’s action is voluntarily dismissed without prejudice under Rule 41(a)(1)(A)(i). The court emphasized that prevailing-party status requires a judicial rejection of the plaintiff’s claim, which did not occur in this case. Therefore, Property Matters was not entitled to attorney’s fees. View "Affordable Aerial Photography, Inc. v. Property Matters USA, LLC" on Justia Law

Plaintiffs in this case—Sherman Nealy and Music Specialist, Inc.—filed this copyright action seeking, among other things, damages for infringement they allege occurred more than three years before they filed this lawsuit. The defendants—Warner Chappell Music, Inc. and Artist Publishing Group, LLC—contend that Plaintiffs cannot recover damages for anything that happened more than three years before they filed suit.  The district court certified the following question for interlocutory appellate review: whether damages in this copyright action are limited to a three-year lookback period as calculated from the date of the filing of the complaint.   The Eleventh Circuit answered that question in the negative. The court wrote that given that the plain text of the Copyright Act does not support the existence of a separate damages bar for an otherwise timely copyright claim, the court held that a copyright plaintiff with a timely claim under the discovery rule may recover retrospective relief for infringement that occurred more than three years prior to the filing of the lawsuit. View "Sherman Nealy, et al. v. Warner Chappell Music, Inc., et al." on Justia Law

Plaintiff wrote and recorded the song “Everything Be Lit,” which he later copyrighted. Then Plaintiff filed suit against several parties and Think It’s a Game Records (TIG) for copyright infringement based on one of Defendant’s recordings and release of a similar song “Everyday We Lit.” Two co-defendants failed to respond to the initial complaint and the district court entered a default against them. Plaintiff later filed an amended complaint, requesting among other forms of relief, actual profits, jointly and severally, from Defendants.   One Defendant raised several issues on appeal, including that the district court erred in using Plaintiff’s amended complaint as the basis for the default judgment because the amended complaint stated a new claim for relief, and Plaintiff failed to serve the amended complaint on Defendant as required by the Federal Rules of Civil Procedure.   The Eleventh Circuit agreed that the amended complaint stated a new claim for relief, and therefore, the district court erred in concluding that Plaintiff did not have to serve the amended complaint on Defendant. Accordingly, the court vacated the default judgment and remanded for further proceedings. The court explained that the Copyright Act did not put Defendant on notice that he could be subject to joint and several liability for actual damages and profits. Thus, Plaintiff’s claim for actual damages plus profits, jointly and severally, constituted a new claim for relief. View "Anthony Campbell v. June James" on Justia Law

Plaintiff, a commercial photographer, discovered infringing uses of his copyrighted images on the internet. Instead of pursuing the infringing parties, Plaintiff brought a lawsuit against Ice Portal, Inc. – now a division of Shiji (US), Inc. (“Shiji”) – which acts as an intermediary between the hotels that licensed Plaintiff’s photographs and online travel agents (“OTAs”) like Expedia and Travelocity.In optimizing the photographs for use by the OTAs, Shiji’s software allegedly removed certain copyright-related information that Plaintiff had embedded within the metadata of the photographs. Defendant claimed that Shiji, therefore, violated the Digital Millennium Copyright Act (“DMCA”).   The district court correctly granted summary judgment to Shiji because Plaintiff did not show an essential element of its claim – namely, that Shiji knew, or had reasonable grounds to know, that its actions would induce, enable, facilitate, or conceal a copyright infringement. The Eleventh Circuit affirmed. The court held that Plaintiff did not meet its burden of coming forward with sufficient evidence demonstrating Section 1202(b)’s second scienter requirement, and judgment in Shiji’s favor was therefore appropriate. The court explained that the statute’s plain language requires some identifiable connection between the defendant’s actions and the infringement or the likelihood of infringement. To hold otherwise would create a standard under which the defendant would always know that its actions would “induce, enable, facilitate, or conceal” infringement because distributing protected images wrongly cleansed of CMI would always make infringement easier in some general sense. View "Victor Elias Photography, LLC v. Ice Portal, Inc." on Justia Law

After a blog operator filed suit against a content aggregator for copyright infringement after the aggregator copied and published the blog's content, the jury ruled in favor of the blog operator. At issue is whether the district court should have allowed the jury to decide whether the aggregator had an implied license to copy and publish the blog's content.The Eleventh Circuit concluded that, although the district court employed a too narrow understanding of an implied license, a jury could not have reasonably inferred that the blog impliedly granted the aggregator a license to copy and publish its content. In this case, the district court erred by granting judgment as a matter of law against the aggregator on its implied-license defense; the district court did not err by instructing the jury that it could consider unregistered articles in its calculation of statutory damages; the district court did not abuse its discretion by denying the aggregator's motion for a new trial on the basis of the jury's statutory-damages award; the district court did not err by failing to consult with the register of copyrights about the alleged fraud on the copyright office; and the aggregator is not entitled to judgment as a matter of law on its fair-use defense. Accordingly, the court affirmed the judgment against the aggregator. View "MidlevelU, Inc. v. ACI Information Group" on Justia Law

Compulife Software, which has developed and markets a computerized mechanism for calculating, organizing, and comparing life-insurance quotes, alleges that one of its competitors lied and hacked its way into Compulife's system and stole its proprietary data. At issue was whether defendants crossed any legal lines—and, in particular, whether they infringed Compulife's copyright or misappropriated its trade secrets, engaged in false advertising, or violated an anti-hacking statute.The Eleventh Circuit vacated the judgment as to copyright infringement and trade-secret misappropriation, remanding for new findings of fact and conclusions of law. The court held that the magistrate judge committed errors of law and made insufficient findings, which tainted his conclusion that Compulife's copyright was not infringed. The court also held that the magistrate judge erred in his analysis of trade-secret misappropriation, both by failing to consider the application of several species of misappropriation and by committing legal error. The court found no reversible error in the magistrate judge's rejection of Compulife's other claims, affirming the remainder of the judgment. View "Compulife Software Inc. v. Newman" on Justia Law

Plaintiff, a successful guitar maker and technician, designed a lightning storm graphic that originally appeared on the guitar of Darrell Abbott, late guitarist of the heavy-metal band Pantera. This copyright registration action relates to the lightning storm graphic. Plaintiff filed suit against defendant and several others, alleging copyright infringement, unfair competition, and false endorsement.The Eleventh Circuit affirmed the district court's grant of summary judgment in favor of defendants, holding that the district court properly concluded that plaintiff's copyright claim, primarily concerning copyright ownership, was time-barred; the district court correctly granted summary judgment in favor of defendants on plaintiff's false advertising and unfair competition claims because the statements he relies on were not false or misleading; and the district court properly granted summary judgment in favor of defendants on plaintiff's false endorsement claim, because plaintiff failed to establish a likelihood of consumer confusion, mistake, or deception. View "Webster v. Guitars" on Justia Law

Plaintiffs, three publishing houses, alleged that members of the Board of Regents at GSU infringed their copyrights by maintaining a policy which allows GSU professors to make digital copies of excerpts of plaintiffs' books available to students without paying plaintiffs. At issue on appeal was whether the district court misinterpreted the Eleventh Circuit's mandate in an earlier appeal and misapplied the defense of fair use.The court held that the district court erred when it made its new findings of fair use, but the district court did not abuse its discretion when it declined to reopen the record. Accordingly, the court affirmed the district court's order denying the publishers' request to reopen the record, but vacated the judgment entered on remand. Finally, the court vacated the district court's award of attorney's fees and costs and the underlying determination that the University was the prevailing party. View "Cambridge University Press v. Albert" on Justia Law

The annotations contained in the Official Code of Georgia Annotated (OCGA), authored by the Georgia General Assembly and made an inextricable part of the official codification of Georgia's laws, may not be copyrighted by the State of Georgia. The Eleventh Circuit held that the annotations in the OCGA are sufficiently law-like so as to be properly regarded as sovereign work; the People are the ultimate authors of the annotations; and as a work of the People, the annotations are inherently public domain material and uncopyrightable. Accordingly, the court reversed the judgment of the district court and directed the judgment be entered for PRO, vacated the district court's order granting Georgia injunctive relief, and remanded for further proceedings. View "Code Revision Commissioner v. Public.Resource.Org, Inc." on Justia Law