Justia Copyright Opinion Summaries
MPAY Inc. v. Erie Custom Computer Applications, Inc.
MPAY, a Massachusetts corporation that develops and owns payroll-processing software that it licenses to its customers, appealed the district court's denial of its motion for a preliminary injunction against appellees. MPAY claimed that it was entitled to such relief based on its copyright-infringement and trade-secrets-misappropriation claims.The Eighth Circuit affirmed in part and vacated in part, holding that appellees demonstrated that their copying, disclosure, and possession of the source code were authorized by the Software Development and License Agreement that MPAY signed with its business partner. Therefore, MPAY has not shown a likelihood of success on the merits of its copyright infringement or trade-secrets-misappropriation claims, and the district court did not err in so concluding. The court also held that MPAY's assertion, that the district court erroneously concluded MPAY's harms were compensable with money damages and so were not irreparable, lacked merit. Furthermore, the balance of the equities and the public interest do not favor an injunction. The court remanded for further proceedings on the question of whether the contractors wrongfully sublicensed use of the software. View "MPAY Inc. v. Erie Custom Computer Applications, Inc." on Justia Law
Mango v. Buzzfeed, Inc.
Plaintiff filed suit against BuzzFeed for using one of his photographs without crediting him in violation of the Digital Millennium Copyright Act (DCMA). The district court awarded plaintiff statutory damages. BuzzFeed appealed, arguing that it did not know its conduct would lead to future, third-party copyright infringement.The Second Circuit affirmed the district court's award of statutory damages and held that the plain language of the DMCA does not require plaintiff to prove that BuzzFeed knew its actions would lead to future, third-party infringement. In this case, the district court correctly applied the DMCA by finding that Buzzfeed, through its own journalist, distributed the photo knowing that plaintiff's gutter credit had been removed or altered without his permission and distributed the photo with a gutter credit reading "Fisher & Taubenfeld" knowing that doing so would conceal the fact that a BuzzFeed journalist did not have authority to use the photo. View "Mango v. Buzzfeed, Inc." on Justia Law
Johnson v. Copyright Royalty Board
In these consolidated appeals, appellants challenge the royalty rates and terms established by the Board for the period of January 1, 2018 through December 31, 2022. Appellants challenged numerous aspects of the Board's final determination: the Streaming Services argue that the Board's decision impermissibly applies retroactively; the Streaming Services challenge the Board's rate structure and the specific rates applicable under that structure; the Streaming Services and the Copyright Owners each object to the Board's definition of certain terms; and songwriter George Johnson challenges the Board's acceptance of the Subpart A settlement, as well as its adoption of the final rate structure.The DC Circuit rejected the Streaming Services' retroactivity objection and the challenges brought by the Copyright Owners and George Johnson. However, the court agreed with the Streaming Services that the Board failed to provide adequate notice of the final rate structure, failed to reasonably explain its rejection of the Phonorecords II settlement as a benchmark, and failed to identify under what authority it substantively redefined a term after publishing its initial determination. Accordingly, the court affirmed in part, and vacated and remanded to the Board in part because it failed to give adequate notice or to sufficiently explain critical aspects of its decisionmaking. View "Johnson v. Copyright Royalty Board" on Justia Law
Craft Smith v. EC Design
Since 2007, EC Design, LLC, sold its popular personal organizer, the LifePlanner. In 2015, Craft Smith, Inc., wanting to enter the personal-organizer market, reached out to EC Design about a possible collaboration. EC Design and Craft Smith couldn't agree to a collaboration. Craft Smith, with input from Michaels Stores, Inc., designed and developed a personal organizer to sell in Michaels stores, leading to this action in Utah federal district court. EC Design claims the Craft Smith and Michaels product infringed on the LifePlanner’s registered compilation copyright and unregistered trade dress. The district court disagreed, granting summary judgment in favor of Craft Smith and Michaels (collectively, the Appellees) on both issues. On the copyright issue, the district court concluded that EC Design did not own a valid copyright in its asserted LifePlanner compilation. On trade dress, the district court held that EC Design had failed to create a genuine issue of material fact over whether the LifePlanner’s trade dress had acquired secondary meaning. Though the Tenth Circuit disagreed with how the district court framed the copyright issue, the Tenth Circuit affirmed because no reasonable juror could conclude that the allegedly infringing aspects of Appellees’ organizer were substantially similar to the protected expression in the LifePlanner compilation. With respect to the trade dress issue, the Tenth Circuit agreed with the district court: EC Design had failed to create a genuine issue of material fact over whether the LifePlanner’s trade dress had acquired secondary meaning. Summary judgment as to both claims was affirmed. View "Craft Smith v. EC Design" on Justia Law
Fischer v. Forrest
The Second Circuit affirmed the district court's dismissal of plaintiff's claims under the Copyright Act and the Digital Millennium Copyright Act (DMCA). Plaintiff alleged claims of copyright infringement and copyright management information (CMI) removal based on an underlying controversy involving defendants' promotion of their own version of a honey harvesting product, which replaced one that plaintiff had invented and that defendants had sold for many years through a website defendants owned.The court held that plaintiff was not entitled to statutory damages or attorneys' fees, because the first allegedly infringing act occurred before the date of the copyright registration and no genuine issue of material fact exists concerning this issue. The court also held that plaintiff failed to establish a CMI removal claim under the DMCA, because "Fischer's" cannot be construed as a CMI with respect to the advertising text at issue because it is simply the name of the product being described. View "Fischer v. Forrest" on Justia Law
Zahourek Systems v. Balanced Body University
These appeals involves a sculptural work called “the Maniken,” which portrays the human body. The defendant, Balanced Body University, bought several Manikens and used them to advertise and instruct students on human anatomy. Jon Zahourek and his company Zahourek Systems, Inc., sued for copyright infringement (among other claims). The district court granted summary judgment to Balanced Body University on the copyright-infringement claim, concluding that the Maniken was unprotected as a “useful article.” If the Maniken was a useful article, it wouldn’t ordinarily be protectible under the copyright laws. The Tenth Circuit concluded that a genuine issue of material fact existed on whether the Maniken was a useful article. View "Zahourek Systems v. Balanced Body University" on Justia Law
Independent Producers Group v. Copyright Royalty Board
IPG, an agent for royalty claimants in these proceedings, filed suit challenging Copyright Royalty Judges' denial of most of its clients' royalty fee claims for programming in the devotional and program suppliers' categories that was retransmitted by cable during specific years. IPG lost the right to pursue many of its clients' claims as a result of a discovery sanction and ultimately failed to establish for certain claims that it was a duly appointed agent pressing valid claims.The DC Circuit affirmed the Judges' decisions as to IPG's challenge to the revocation of the presumption of validity where the Judges did not abuse their discretion in withholding the presumption based on false testimony and where IPG received constitutionally adequate due process; affirmed as to IPG's challenge to the imposition of discovery sanctions where the sanction, while harsh, was not arbitrary and capricious and did not violate due process; and affirmed as to IPG's challenge to the final distribution of royalties where the Judges' distribution methodology decisions were well within a zone of reasonableness. View "Independent Producers Group v. Copyright Royalty Board" on Justia Law
Imapizza, LLC v. At Pizza Limited
IMAPizza, which operates the "&pizza" chain of restaurants in the United States, filed suit under the Copyright and Lanham Acts as well as D.C. common law against At Pizza, operator of the "@pizza" restaurant in Edinburgh, Scotland.The DC Circuit affirmed the district court's dismissal of IMAPizza's Copyright and Lanham Act claims, holding that IMAPizza failed to state a claim under the Copyright Act because it did not allege an act of copyright infringement in the United States. The court declined to extend the Copyright Act beyond its territorial limits lest U.S. law be used to sanction what might be lawful conduct in another country. The court also held that IMAPizza failed to state a claim under the Lanham Act because it failed to allege some plausible effect — let alone a significant or substantial effect — upon U.S. commerce. Finally, the court held that IMAPizza's trespass claim fails for want of any unauthorized entry into its restaurants, and the district court did not abuse its discretion in denying IMAPizza's motions for leave to file a surreply and to exercise supplemental jurisdiction over the U.K.'s "passing off" claim. View "Imapizza, LLC v. At Pizza Limited" on Justia Law
Digital Drilling Data Systems, LLC v. Petrolink Services, Inc.
Digidrill filed suit against its competitor, Petrolink, alleging that Petrolink hacked into its software at various oil drilling sites in order to "scrape" valuable drilling data in real time. The district court granted Petrolink's motion for summary judgment on Digidrill's copyright claims. Digidrill's unjust enrichment claim proceeded to trial, where a jury returned a verdict in Digidrill's favor.In regard to the copyright infringement claim, the Fifth Circuit affirmed the district court's judgment and held that Digidrill likely waived its "qualitative importance" argument but, even if not, the argument fails on the merits because no reasonable jury could find substantial similarity based on the qualitative importance of the copied schema to DataLogger as a whole. The court also affirmed the district court's judgment as to the Digital Millennium Copyright Act claims, holding that the USB dongle and Interface Process did not effectively control access to the protected database schema.The court also held that Digidrill's unjust enrichment claim is not preempted by the Copyright Act because the claim incorporates an element beyond mere unauthorized copying. The court held that the available Texas authorities do not foreclose the possibility that a litigant may show the taking of an undue advantage without showing the violation of a law or legal duty. Therefore, the court affirmed the district court's denial of Petrolink's judgment as a matter of law on the issue of whether Digidrill adduced sufficient evidence of the benefit Petrolink obtained from Digidrill. Finally, the court held that the district court failed to treat Petrolink as the prevailing party under the relevant statutes and failed to apply the correct legal standard. Accordingly, the court vacated the district court's denial of Petrolink's motion for fees and remanded. View "Digital Drilling Data Systems, LLC v. Petrolink Services, Inc." on Justia Law
UMG Recordings, Inc. v. Kurbanov
Plaintiffs, twelve record companies, filed suit against defendant alleging claims for five separate violations of the Copyright Act. Plaintiffs are Delaware corporations, with eight having their principal place of business in New York, three in California, and one in Florida. Defendant, born in Rostov-on-Don, Russia, is a Russian citizen who still resides in Rostov-on-Don. Defendant owns and operates websites that offer visitors a stream-ripping service through which audio tracks may be extracted from videos available on various platforms and converted into a downloadable format.The Fourth Circuit reversed the district court's grant of defendant's motion to dismiss, holding that defendant's contacts sufficiently show he purposefully availed himself of the privilege of conducting business in Virginia. Therefore, the exercise of specific personal jurisdiction under Federal Rule of Civil Procedure 4(k)(1) is appropriate if it is constitutionally reasonable. Because the district court did not perform a reasonability analysis in the first instance, the court remanded for the district court to do so. View "UMG Recordings, Inc. v. Kurbanov" on Justia Law