Justia Copyright Opinion Summaries

Every five years, the Copyright Royalty Board (the “Board”) issues a statutory license that establishes the terms and rates under which certain entities that stream copyrighted songs over the internet make royalty payments to the songs’ copyright owners. The “webcasters” that are subject to the license are “noninteractive” — i.e., they stream music without letting their listeners choose songs on demand. This appeal challenges on various grounds the Board’s most recent noninteractive webcaster license Final Determination, covering calendar years 2021 through 2025.   The DC Circuit sustained Board’s Final Determination in all respects. The court held that the Board’s decision to set a royalty rate that was slightly below the Willig model’s flawed opportunity-cost measure is neither here nor there. And thus, the court explained, it has no occasion to decide, as SoundExchange urges, whether it would, as a matter of law, violate the willing buyer/willing seller standard for the Board to set a royalty rate below some definitive measure of opportunity cost. View "National Religious Broadcasters Noncommercial Music License Committee v. CRB" on Justia Law

Plaintiff claimed Defendant infringed her copyrights in two charts depicting organizational change. The key question is whether the copyright in one of those charts was registered with the Copyright Office such that it will support a suit for copyright infringement.The Ninth Circuit reversed the district court’s partial grant of summary judgment in favor of Defendants, vacated a jury verdict, vacated an award of attorneys’ fees, and remanded an action alleging infringement of copyrights in two charts depicting organizational change. The court held that Plaintiff created a genuine issue of material fact on that question. The panel held that Plaintiff raised a genuine dispute about whether she registered the chart directly or whether she registered elements of that chart by later registering an “Aligning for Success” chart. Agreeing with other circuits on a matter of first impression, the panel held that by registering a derivative work, an author registers all of the material included in the derivative work, including that which previously appeared in an unregistered, original work created by the author. The panel, therefore, reversed the district court’s grant of summary judgment and also vacated the jury verdict because, as a result of the grant of summary judgment, the district court prevented Plaintiff from introducing any evidence and making any argument as to the Managinwg Complex Change chart at trial. The panel further held that the district court erred in instructing the jury that if it found that Defendant accessed and copied other work but did not copy the registered Aligning for Success chart, then Dfendant’s challenged work was an independent creation. View "ENTERPRISE MANAGEMENT LIMITED, INC., ET AL V. CONSTRUX SOFTWARE BUILDERS, INC., ET AL" on Justia Law

Plaintiffs are photographers who sued Defendant Instagram for copyright infringement. Plaintiff alleged that Instagram violates their exclusive display right by permitting third-party sites to embed the photographers’ Instagram content. The district court held that Instagram could not be liable for secondary infringement because embedding a photo does not “display a copy” of the underlying images under Perfect 10.The Ninth Circuit affirmed the district court’s dismissal of an action brought by two photographers under the Copyright Act alleging that Instagram, LLC, violated their exclusive display right by permitting third-party sites to embed the photographers’ Instagram content. The panel held that, under Perfect 10 v. Amazon, 508 F.3d 1146 (9th Cir. 2007), Instagram could not be liable for secondary infringement because embedding a photo does not "display a copy" of the underlying image. Perfect 10 set forth the “Server Test,” which provides that a copy of a photographic image is not displayed when it is not fixed in a computer’s memory. The panel held that Perfect 10 did not restrict the application of the Server Test to a specific type of website, such as search engine. Arguments that Perfect10 is inconsistent with the Copyright Act are foreclosed by Perfect 10 outside of an en banc proceeding. And Perfect 10 was not effectively overturned by American Broadcasting Co. v. Aereo, 573 U.S. 431 (2014), which held that a streaming provider infringed broadcasters’ exclusive right to public performance. View "ALEXIS HUNLEY, ET AL V. INSTAGRAM, LLC" on Justia Law

In this copyright action involving ownership rights to the board game, "The Game of Life," the First Circuit affirmed the decision of the district court denying attorney's fees sought from the unsuccessful plaintiffs, holding that the district court did not err in denying fees and that this Court declines to award fees for the appeal.This case stemmed from a dispute between Rueben Klamer, a toy developer who came up with the initial concept of the game before it was introduced in 1960 by the Milton Bradley Company, and Bill Markham, a game designer that Klamer recruited to design and create the actual game prototype. Markham's successors-in-interest sued Klamer and other defendants seeking a declaration that they possessed "termination rights" under the 1976 Copyright Act. The district court granted judgment for Defendants but denied fees. Defendants appealed and moved for appellate attorney's fees. The First Circuit denied relief, holding (1) the district court did not err in denying fees; and (2) this Court declines to award fees for the appeal. View "Markham Concepts, Inc. v. Hasbro, Inc." on Justia Law

Thousands of copyrighted photos on Zillow’s site come from VHT, a professional real estate photography studio. Zillow used VHT’s photos on its real estate “Listing Platform,” which is the primary display of properties, and on a home design section of the website called “Digs.” Following summary judgment rulings, a jury trial, and various post-trial motions, the Ninth Circuit affirmed the district court in large part in prior appeal Zillow I. Essentially, the panel agreed with the district court that Zillow was not liable for direct, secondary, or contributory infringement.   Back on remand, the Ninth Circuit affirmed the district court’s decision in full. The panel held that the district court properly excused VHT’s failure to meet Section 411(a)’s non-jurisdictional exhaustion requirement because copyright registration was wholly collateral to whether Zillow infringed on VHT's copyright, dismissing VHT’s claim after the statute of limitations had already expired would cause irreparable harm, and excusal would not undermine the purpose of administrative exhaustion. The panel affirmed the district court’s ruling, on remand, that the 2,700 VHT photos remaining at issue were not a compilation, which would entitle VHT to only a single award of statutory damages under 17 U.S.C. Section 504(c), but rather, each individual photo constituted an infringement. The photos were part of VHT’s master photo database, and the VHT group registered its images as a “compilation.” But VHT also registered the underlying individual images and licensed these images on a per-image or per-property basis. The panel held that the photos had independent economic value separate from the database and did not qualify as “one work.” View "VHT, INC. V. ZILLOW GROUP, INC., ET AL" on Justia Law

Counsel filed a class action lawsuit on behalf of copyright holders of musical compositions and recovered a little over $50,000 for the class members from Defendant Rhapsody International, Inc. (now rebranded as Napster), a music streaming service. The class members obtained no meaningful injunctive or nonmonetary relief in the settlement of their action. The district court nonetheless authorized $1.7 in attorneys’ fees under the “lodestar” method.   The Ninth Circuit reversed the district court’s award of attorneys’ fees to Plaintiffs’ counsel and remanded. The panel held that the touchstone for determining the reasonableness of attorneys’ fees in a class action under Federal Rule of Civil Procedure 23 is the benefit to the class. Here, the benefit was minimal. The panel held that the district court erred in failing to calculate the settlement’s actual benefit to the class members who submitted settlement claims, as opposed to a hypothetical $20 million cap agreed on by the parties. The panel held that district courts awarding attorneys’ fees in class actions under the Copyright Act must still generally consider the proportion between the award and the benefit to the class to ensure that the award is reasonable. The panel recognized that a fee award may exceed the monetary benefit provided to the class in certain copyright cases, such as when a copyright infringement litigation leads to substantial nonmonetary relief or provides a meaningful benefit to society, but this was not such a case. The panel instructed that, on remand, the district court should rigorously evaluate the actual benefit provided to the class and award reasonable attorneys’ fees considering that benefit. View "DAVID LOWERY, ET AL V. RHAPSODY INTERNATIONAL, INC." on Justia Law

Appellee Jason Scott Collection, Inc. (JSC) and Appellants Trendily Furniture, LLC, Trendily Home Collection, LLC and Rahul Malhotra (collectively, “Trendily”) are high-end furniture manufacturers that sell their products in the Texas market. Trendily intentionally copied three unique furniture designs by JSC and sold them to Texas retailers. The district court granted summary judgment to JSC on its copyright claim and then held Trendily liable on the trade dress claim following a bench trial. On appeal, Trendily challenged only the latter ruling, arguing that trade dress liability is precluded here because JSC did not demonstrate either secondary meaning or the likelihood of consumer confusion.   The Ninth Circuit affirmed the district court’s decision. The panel held that the district court did not clearly err in finding that JSC did so. The panel wrote that Trendily’s clear intent to copy nonfunctional features of JSC’s pieces supports a strong inference of secondary meaning. Noting that copyright and trademark are not mutually exclusive, the panel rejected Trendily’s argument that it should be held liable only under the Copyright Act. The panel held that the district court properly considered several other factors, including that the JSC pieces were continuously manufactured and sold since 2004, that JSC had a longstanding and well-known presence in the high-end furniture market, and that JSC’s furniture was distinctive in the minds of purchasers. The panel held that the district court did not err in finding that there was a likelihood of confusion between the JSC pieces and the Trendily pieces. View "JASON SCOTT COLLECTION, INC. V. TRENDILY FURNITURE, LLC, ET AL" on Justia Law

A jury convicted Defendant of one count of acting as an unregistered agent of a foreign government and one count of criminal conspiracy. The district court granted a judgment of acquittal as to both charges and conditionally granted a new trial in the event the judgment of acquittal was reversed on appeal. On appeal, in Rafiekian I, the Fourth Circuit reversed the judgments of acquittal, vacated and remanded the court’s new-trial order, and noted that the district court “may have additional justifications for its decision” that it failed to explain. On remand, ordered a new trial. The government appealed.   The Fourth Circuit affirmed. The court explained that because the government’s case relied on the jury’s drawing inferences of guilt, the district court had no choice but to examine those inferences in considering the new trial motion. Barring the district court from granting a new trial based solely on disagreement with the jury’s inferences of guilt would place this class of cases beyond the reach of the new-trial standard. The government is entitled to rely on circumstantial evidence, but it is not entitled to special deference when it does so.   In this case, because the district court determined that a new trial was warranted based on the weight of the evidence, the court’s role is only to ask whether the court abused its discretion in doing so. Exercising “great deference” to the district court’s “discretionary assessments of the balance of the evidence,” the court held that it did not. View "US v. Bijan Rafiekian" on Justia Law

In 1984, Goldsmith, a portrait artist, granted Vanity Fair a one-time license to use a Prince photograph to illustrate a story about the musician. Vanity Fair hired Andy Warhol, who made a silkscreen using Goldsmith’s photo. Vanity Fair published the resulting image, crediting Goldsmith for the “source photograph,” and paying her $400. Warhol used Goldsmith’s photograph to derive 15 additional works. In 2016, the Andy Warhol Foundation (AWF) licensed one of those works, “Orange Prince,” to Condé Nast to illustrate a magazine story about Prince. AWF received $10,000. Goldsmith received nothing. When Goldsmith asserted copyright infringement, AWF sued her. The district court granted AWF summary judgment on its assertion of “fair use,” 17 U.S.C. 107. The Second Circuit reversed.The Supreme Court affirmed, agreeing that the first fair use factor, “the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes,” weighs against AWF’s commercial licensing to Condé Nast. Both the 1984 and the 2016 publications are portraits of Prince used in magazines to illustrate stories about Prince; the “environment[s]” are not “distinct and different.” The 2016 use also is of a commercial nature. Orange Prince reasonably can be perceived to portray Prince as iconic, whereas Goldsmith’s portrayal is photorealistic but the purpose of that use is still to illustrate a magazine about Prince. The degree of difference is not enough for the first factor to favor AWF. To hold otherwise would potentially authorize a range of commercial copying of photographs, to be used for purposes that are substantially the same as those of the originals. AWF offers no independent justification for copying the photograph. View "Andy Warhol Foundation for Visual Arts, Inc. v. Goldsmith" on Justia Law

Varco, L.P. (“Varco”), an oil and gas drilling company, purchased the assets of another drilling company, including U.S. Patent No. 5,474,142 (the “’142 Patent”). Varco’s parent company, Varco International, Inc., and a competitor, National Oilwell, Inc., completed a merger to form National Oilwell Varco, Inc. It was understood that Varco, as Varco International, Inc.’s operating company, would transfer its assets to the newly formed entity’s operating company: Plaintiff-Appellee/Cross-Appellant National Oilwell Varco, L.P. (“NOV”).  NOV filed an action in district court alleging that Defendant-Appellant/CrossAppellee Auto-Dril, Inc. (“Auto-Dril”) infringed the ’142 Patent (the “Underlying Action”). Auto-Dril and NOV entered into a confidential settlement agreement that was intended to end their litigation over the ’142 Patent (the “Settlement Agreement”). The parties appealed various holdings that both preceded and followed a trial regarding their 2011 Settlement Agreement.   The Fifth Circuit held that it lacks jurisdiction over Auto-Dril’s counterclaim for being fraudulently induced into entering the Settlement Agreement. The court reversed the ruling granting summary judgment for NOV on Auto-Dril’s claim for breach of the Settlement Agreement. The court reversed the dismissal of NOV’s claim for breach of the Settlement Agreement and remanded NOV’s JMOL motion for reconsideration. The court explained that here, NOV’s conduct did not rise to the level of a fraud on the court. Specifically, there is no clear and convincing evidence that NOV was cognizant that it did not own the ’142 Patent while it was litigating the Underlying Action. View "National Oilwell Varco v. Auto-Dril" on Justia Law