Justia Copyright Opinion Summaries
Design Basics, LLC v. Signature Construction, Inc.
Design Basics is a copyright troll and holds registered copyrights in thousands of floor plans for suburban, single-family tract homes. Its employees trawl the Internet in search of targets for strategic infringement suits of questionable merit, hoping to secure “prompt settlements with defendants who would prefer to pay modest or nuisance settlements rather than be tied up in expensive litigation.” The Seventh Circuit has previously (Lexington Homes) held that Design Basics’ copyright in its floor plans is thin. The designs consist mainly of unprotectable stock elements—a few bedrooms, a kitchen, a great room, etc. Much of their content is dictated by functional considerations and existing design conventions for affordable, suburban, single-family homes. When copyright in an architectural work is thin, only a “strikingly similar” work gives rise to a possible infringement claim.Design Basics sued Signature Construction for copying 10 of its registered floor plans for suburban, single-family homes. The district court granted Signature summary judgment based largely on the reasoning of Lexington Homes. The Seventh Circuit affirmed. For this category of claims, only extremely close copying is actionable as unlawful infringement. That standard is not satisfied in this case. View "Design Basics, LLC v. Signature Construction, Inc." on Justia Law
Foss v. Marvic, Inc.
The First Circuit affirmed the judgment of the district court granting summary judgment in favor of Marvic d/b/a Brady-Built Sunrooms (Marvic) and dismissing Cynthia Foss's state law claims, holding that the district court did not err.Foss, a graphic designer, created a brochure for Marvic to use in marketing its sunrooms. Twelve years later, Foss brought a complaint alleging a federal claim for copyright infringement and pendent state law claims. The federal district court entered three separate rulings at issue on appeal: it granted Marvic's motion to dismiss Foss's copyright claim, it denied Foss's motion to withdraw certain statements that the court had deemed admitted, and it granted Marvic's motion for summary judgment on Foss's state law claims. The First Circuit affirmed, holding that the district court did not err or abuse its discretion as to the disputed rulings. View "Foss v. Marvic, Inc." on Justia Law
Google LLC v. Oracle America, Inc.
Oracle owns a copyright in Java SE, a computer platform. Google acquired Android and sought to build a new software platform for mobile devices. To allow millions of programmers familiar with Java to work with its new platform, Google copied roughly 11,500 lines of code from Java SE. The copied lines allow programmers to call upon prewritten computing tasks for use in their own programs. The Federal Circuit held that the copied lines were copyrightable and reversed a jury’s finding of fair use.The Supreme Court reversed. Google’s copying of code lines needed to allow programmers to put their talents to work in a transformative program was fair use as a matter of law. Copyright protection cannot extend to “any idea, procedure, process, system, method of operation, concept, principle, or discovery,” 17 U.S.C. 102(b), and a copyright holder may not prevent another from making a “fair use” of a copyrighted work.Assuming that the copied lines can be copyrighted, the Court focused on “fair use.” The “right of trial by jury” does not include the right to have a jury resolve a fair use defense. Unlike other types of code, much of the copied material's value derives from the investment of users (computer programmers) who have learned the system; application of fair use here is unlikely to undermine the general copyright protection for computer programs. The “purpose and character” of this use is transformative. Google copied only about 0.4 percent of the entire program at issue and that was tethered to a valid, transformative, purpose. Google’s new smartphone platform is not a market substitute for Java SE; the copyright holder would benefit from the reimplementation of its interface into a different market. Enforcing the copyright on these facts risks causing creativity-related harms to the public. View "Google LLC v. Oracle America, Inc." on Justia Law
The Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith
The Second Circuit reversed the district court's grant of summary judgment to the Foundation on its complaint for a declaratory judgment of fair use and the district court's dismissal of defendant's counterclaim for copyright infringement. This case involves visual art works by Andy Warhol based on a 1981 photograph of the musical artist Prince that was taken by defendant, Lynn Goldsmith, in her studio, and in which she holds copyright.The court concluded that the district court erred in its assessment and application of the fair-use factors and that the works in question do not qualify as fair use as a matter of law. In this case, the court considered each of the four factors and found that each favors defendant. Furthermore, although the factors are not exclusive, the Foundation has not identified any additional relevant considerations unique to this case that the court should take into account. The court likewise concluded that the Prince Series works are substantially similar to the Goldsmith Photograph as a matter of law. Accordingly, the court remanded for further proceedings. View "The Andy Warhol Foundation for the Visual Arts, Inc. v. Goldsmith" on Justia Law
MidlevelU, Inc. v. ACI Information Group
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
Bitmanagement Software GMBH v. United States
In 2013, the Naval Facilities Engineering Command installed copyrighted graphics-rendering software created by German company Bitmanagement onto all computers in the Navy-Marine Corps Intranet. No express contract or license agreement authorized the Navy’s actions. In 2016, Bitmanagement filed suit, alleging copyright infringement, 28 U.S.C. 1498(b). The Claims Court found that, while Bitmanagement had established a prima facie case of copyright infringement, the Navy was not liable because it was authorized to make copies by an implied license, arising from the Navy’s purchase of individual licenses to test the software and various agreements between the Navy and the vendor.The Federal Circuit vacated and remanded for the calculation of damages. The Claims Court ended its analysis prematurely by failing to consider whether the Navy complied with the terms of the implied license, which can readily be understood from the parties’ entire course of dealings. The implied license was conditioned on the Navy using a license-tracking software, Flexera, to “FlexWrap” the program and monitor the number of simultaneous users. The Navy failed to effectively FlexWrap the copies it made; Flexera tracking did not occur as contemplated by the implied license. That failure to comply creates liability for infringement. View "Bitmanagement Software GMBH v. United States" on Justia Law
United States v. Kim
After defendant pleaded guilty to one count of criminal copyright infringement, the district court sentenced defendant to 46 months' imprisonment and ordered him to pay restitution to the copyright owner, Scientific Games Corporation.After determining that defendant's appeal waiver did not bar defendant's challenge, the Fifth Circuit vacated the restitution order, concluding that the government failed to carry its burden of properly establishing the number of infringing items placed into commerce that defendant was responsible for and the resulting harm to Scientific Games in terms of lost net profit. The court remanded for the district court to reanalyze the government's evidence and to determine the number of counterfeit Life of Luxury (LOL) motherboards actually sold and put into the market to compete with legitimate LOL games and the net profit lost by Scientific Games as a result. The court dismissed defendant's challenge to the imposition of a sentencing enhancement because it is barred by his appeal waiver. View "United States v. Kim" on Justia Law
OverDrive Inc. v. Open E-Book Forum
OverDrive, a digital reading platform, belonged to International Digital Publishing Forum, a trade association dedicated to the development of electronic publishing standards. International’s members developed EPUB, the leading eBook format. International's intellectual-property policy, approved by all its members, states that International’s members retain any copyrights in their independent contributions to EPUB but grants International a license to “reproduce, adapt, distribute, perform, display, and create derivative works” of any copyrighted contributions to EPUB. International may sublicense others to do the same. By a vote of 88% to 12%, International agreed to transfer its assets to the Consortium and to grant the Consortium a license to use International's intellectual property to carry out Internationa;'s digital publishing activities. International would commence dissolution, after which its intellectual property rights would be owned by the Consortium. The Consortium began developing improvements to EPUB. A second agreement affirmed the first, explaining that the license included International’s sub-licensable rights to any copyrights its members retained.OverDrive sought a declaratory judgment that International had violated, and would violate in the future, its copyrights in EPUB. The district court granted International summary judgment. The Sixth Circuit affirmed. International validly licensed its intellectual property and it would be premature to resolve any claim about future transfers. Under the Copyright Act, 17 U.S.C. 106, OverDrive granted International the right to use any copyrights OverDrive had in EPUB. International an unrestricted right to grant sublicenses with respect to those copyrights. View "OverDrive Inc. v. Open E-Book Forum" on Justia Law
Desire, LLC v. Manna Textiles, Inc.
After Desire filed suit against various defendants for copyright infringement, the district court held that Desire owned a valid copyright in the fabric design that was the subject of the action (the Subject Design), and that the Subject Design was entitled to broad copyright protection. The jury returned a verdict for Desire, finding that Manna, ABN, and Top Fashion willfully infringed the Subject Design, and that Pride & Joys and 618 Main innocently infringed the Subject Design.The Ninth Circuit held that the district court did not err in granting summary judgment in favor of Desire on the validity of its copyright and the scope of the Subject Design's copyright protection. The panel explained that the "similarity" of one design to another has no bearing on whether Desire "independently created" the subject design. Furthermore, defendants have also failed to introduce evidence that the Subject Design lacked the necessary "modicum of creativity" to be entitled to a valid copyright. The panel also held that the district court correctly extended broad copyright protection to the Subject Design. However, the panel held that the district court erred in permitting multiple awards of statutory damages. In this case, the district court correctly apportioned joint and several liability among the defendants, but the Copyright Act permits only one award of statutory damages here. Therefore, the panel affirmed in part, reversed in part, vacated the judgment awarding Desire multiple awards of statutory damages, and remanded for further proceedings. View "Desire, LLC v. Manna Textiles, Inc." on Justia Law
Dr. Seuss Enterprises, LP v. ComicMix LLC
The Ninth Circuit reversed the district court's summary judgment in favor of defendants on a copyright infringement claim and affirmed the district court's dismissal and grant of summary judgment in favor of defendants on a trademark claim concerning the book "Oh, the Places You'll Boldly Go!," (the mash-up) a Dr. Seuss and Star Trek mash-up.The panel held that the mash-up does not make fair use of "Oh, the Places You'll Go!" (the original work). The panel explained that the purpose and character of the mash-up; the nature of the original work; the amount and substantiality of the original work; and the potential market for or value of Seuss, all weigh against fair use. The panel concluded that the bottom line is that ComicMix created, without seeking permission or a license, a non-transformative commercial work that targets and usurps the original work's potential market, and ComicMix cannot sustain a fair use defense. The panel also held that Seuss does not have a cognizable trademark infringement claim against ComicMix because the Lanham Act did not apply under the Rogers test. In this case, the allegedly valid trademarks in the title, the typeface, and the style of the original work were relevant to achieving the mash-up's artistic purpose, and the use of the claimed original work trademarks was not explicitly misleading. View "Dr. Seuss Enterprises, LP v. ComicMix LLC" on Justia Law