Consumers Digest Comms., LLC v. Westpoint Home, Inc., No. 08 C 3486, Slip Op. (N.D. Ill. Dec. 9, 2008) (Shadur, Sen. J.).
Plaintiff filed an amended complaint including a copyright claim, after Judge Shadur orally granted defendant’s motion to dismiss its original copyright and related state law claims. The Court noted that the amended complaint did not include a copy of the allegedly infringing publications as exhibits. The Court, therefore, ordered plaintiff to deliver copies of the allegedly infringing publications to the Court and defendant’s counsel.

Continue Reading Court Requires Copyright Plaintiff to Include Allegedly Infringing Work in Complaint

Stereo Optical Co., Inc. v. Judy, No. 08 C 2512, 2008 WL 4185689 (N.D. Ill. Sep. 8, 2008) (Kocoras, J.).
Judge Kocoras granted in part defendants’ Fed. R. Civ. P. 12(b)(6) motion to dismiss plaintiff’s copyright, trade secret and related state law claims. The Court noted that the Seventh Circuit required a registered copyright, not just pre-registration, to file a copyright complaint. But the Court held that it was sufficient to allege the registration and did not dismiss the claim because the registration was not attached. The Court did note, however, that the registration requirement was jurisdictional and the motion, therefore, should have been styled a Fed. R. Civ. P. 12(b)(1) motion for lack of jurisdiction.
The Court also denied defendants’ motion to dismiss plaintiff’s trade secret complaints. While plaintiff did not specifically identified the allegedly misappropriated trade secrets they did allege misappropriation of customer lists, vision test methodologies and other information that could be trade secrets.
Finally, the Court dismissed plaintiff’s unjust enrichment claim because it was preempted by the copyright and trade secret claims. The alleged unjust enrichment sought damages for either the alleged copyright infringement or the alleged trade secret misappropriation. Plaintiff’s other state claims, however, required additional elements and were not preempted.

Continue Reading Allegation of Registration Without Certificate Sufficient for Copyright Claim

Nova Design Build, Inc. v. Grace Hotels, LLC., No. 08 C 2855, 2008 WL 4450305 (N.D. Ill. Sep. 30, 2008) (Der-Yeghiayan, J.).
Judge Der-Yeghiayan denied defendants’ motion to dismiss plaintiffs’ copyright infringement and related state law claims. Plaintiffs claimed that they developed plans for a Holiday Inn Express hotel defendants planned to build, and that defendants infringed the copyrights in plaintiffs’ plans by revising them with another firm and using them without plaintiffs’ permission. The Court held that plaintiffs’ copyright claim was sufficiently pled. Plaintiffs alleged ownership of a copyright, attaching the copyright registration, and that defendants infringed the copyright. Defendants’ argument that plaintiffs’ plan were a derivative work were beyond the pleadings and, therefore, not appropriate for a Fed. R. Civ. P. 12(b)(6) motion.
Similarly, defendants’ argument that plaintiffs, as authors of a derivative work, lacked standing to bring their copyright suit also was beyond the scope of a Rule 12(b) motion to dismiss. Furthermore, it was not ripe for decision because defendants made the argument for the first time on reply.
The Court also held that defendants’ arguments as to plaintiffs’ state law claims were beyond the complaint and, therefore, not sufficient for a motion to dismiss.

Continue Reading Court Does Not Consider Facts Beyond Complaint in Rule 12(b) Motions

O’Leary v. Mira Books, No. 08 CV 8, 2008 WL 3889867 (N.D. Ill. Aug. 18, 2008) (Gettleman, J.)
Judge Gettleman granted defendant’s Fed. R. Civ. P. 12(b)(6) motion to dismiss plaintiff’s copyright infringement and related state law claims. Plaintiff alleged that defendant – the author and publisher of the novel The Good Liar – infringed plaintiff’s copyright in plaintiff’s novel, What If, by publishing The Good Liar. The Court dismissed the copyright claim because plaintiff did not identify specific copied passages of her work or show substantial similarities between the works. What If was about a relationship between a paralegal and a rockstar. The Good Liar was about a counter-terrorist organization. The similarities between the works were references to common places or things – both were set in Chicago and had blonde-haired characters.
The Court also dismissed plaintiff’s state law unfair trade practices and unfair competition claims. Both were preempted by the Copyright Act because they were based upon publishing and marketing of the allegedly infringing novel.

Continue Reading Novels With Different Plots Not Substantially Similar

Johnson v. Cypress Hill, No. 03 C 9452, Slip Op. (N.D. Ill. Jul. 7, 2008) (Norgle, J.).
Judge Norgle struck defendants’ motion to dismiss plaintiff Johnson’s copyright infringement claim. The Court previously denied summary judgment as to the other plaintiffs, Watts and Jones – click here to read the Blog’s prior post about that opinion. Plaintiffs authored the song “Is It Because I’m Black” in 1968 and recorded a version of it in 1969 (the “Song”). Plaintiffs alleged that defendants, including the musical group Cypress Hill (click here for some of the group’s music on their MySpace page), infringed their copyright in the Song by using parts of it in their Black Sunday album.
Johnson’s copyright claim is based upon a 1997 registration for a compilation of songs allegedly containing the Song. But a review of a certified copy of Johnson’s compilation from the Copyright Office proved the Song was not on the deposited compilation. Because the Song was not a part of the registered work, Johnson could not show ownership of a valid copyright. The Court, therefore, dismissed the claim.
The Court also held that Johnson’s failure to file a Notice of Use pursuant to the 1909 Copyright Act was irrelevant because Congress deleted the Notice of Use requirement effective January 1, 1978, before any alleged infringement occurred.

Continue Reading Court Dismisses Copyright Case for Lack of Registration

Watts v. Cypress Hill, No. 03 C 9452 & 06 C 3348, 2008 WL 2540811 (N.D. Ill. Apr. 28, 2008) (Norgle, J.).
Judge Norgle denied defendants’ motion for summary judgment on plaintiff’s copyright infringement claim. Defendants’ motion was based upon three arguments: 1) plaintiffs did not have a valid copyright registration; 2) plaintiffs’ suit was barred by the statute of limitations; and 3) plaintiffs failed to file a Notice of Use as required by the 1909 Copyright Act. Plaintiffs authored the song “Is It Because I’m Black” in 1968, and recorded a version of it in 1969 (the “Song”). Plaintiffs alleged that defendants, including the musical group Cypress Hill (click here for some of the group’s music on their MySpace page), infringed plaintiffs’ copyright in the Song by using parts of it in their album titled Black Sunday.
Copyright Registration
Defendants argued that plaintiffs did not meet their burden of proving a valid copyright registration because instead of the registration certificate or a copy of the deposited CD, plaintiffs produced a printout of the Copyright Offices’ summary of their registration. Because defendants did not dispute the information in the summary, the Court denied summary judgment. The validity of the registration was a question of fact for the jury.
Statute of Limitations
As to plaintiff Watts, defendants argued that Watts’s claim fell outside the Copyright Act’s three year statute of limitations because Watts contacted the Copyright Office in April 2003 to inquire about the status of his copyright in the Song, more than three years before Watts’ June 20, 2006 filing date. During his deposition, Watts testified:
That he was not aware of the alleged infringement when he contacted the Copyright Office;
That he contacted the Copyright Office just to check on the status of his copyright; and
That his contact with the Copyright Office was prompted by learning of the alleged infringement.
The Court held that this contradictory evidence would allow a jury to draw an inference for either party, making summary judgment inappropriate. The Court also denied summary judgment as to plaintiff Jones. The court found no evidence that Jones did know or reasonably should have known of the alleged infringement in April 2003.
Notice of Use
Plaintiffs’ failure to file a Notice of Use pursuant to the 1909 Copyright Act was irrelevant. Congress deleted the Notice of Use requirement effective January 1, 1978, long before any alleged infringement occurred.

Continue Reading Copyright Office Printout Suggesting Registration Sufficient to Maintain Infringement Claim

Rudnicki v. WPNA 1490 AM, No. 04 C 5719, Slip Op. (N.D. Ill., Jul. 24, 2008) (Moran, Sen. J.).
Judge Moran denied plaintiff’s motion in limine to preclude defendants from arguing non-registration of plaintiff’s allegedly copyrighted works. Plaintiff argued that his certificate of registration was conclusive proof that his works were registered. But plaintiff only deposited six of his works with his applications. In response, plaintiff argued that deposit of a representative sample was all that was necessary for registration, and all that was necessary for statutory damages.
The Court, however, held that the mandatory registration requirement, and its exceptions pursuant to 17 U.S.C. § 407, was separate from the registration-deposit requirement, pursuant to 17 U.S.C. § 408. The registration-deposit requirement did not provide exceptions for works first published outside the United States, such as plaintiff’s works. Because § 408 required deposit for all of plaintiff’s works, and because plaintiff had not identified if any of the six works plaintiff deposited was at issue in this case, the Court denied plaintiff’s motion.

Continue Reading Copyright Mandatory Registration and Registration-Deposit Requirements are Separate

Click here for the Copyright Digital Slider, a great new tool for calculating the status of a copyright from the American Library Association’s Copyright Advisory Network. You drag an arrow to the date of first publication, and the site tells you the status of the copyright (in force or in the public domain) and whether you need permission to use the work (yes, no or maybe). Of course, it is not as good as consulting an attorney. This is particularly true because for many dates of publication, the answer to whether you need permission to use the work is maybe. Copyright terms are very complex and vary greatly depending on which version of the Copyright Act the work was published pursuant to and what actions the copyright holder has taken. It is far more complex than the patent regime where, at most you have to determine whether the patent’s term is 17 years from grant or 20 years from filing and then deal with any terminal disclaimers or added time listed on the face of the patent.
Hat tip to the Antitrust Review for pointing out this great tool.

Continue Reading New Copyright Term Tool

LimitNone v. Google, Inc., No. 08 C 4178 (Manning, J.).
Last month I posted that LimitNone, a Chicago company, sued Google for trade secret misappropriation seeking $1B — click here for that post. Earlier this week, Google removed the case to the Northern District, arguing that LimitNone’s Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”) claim sounded in copyright and, therefore, was preempted by the Copyright Act creating federal question jurisdiction (click here for Google’s removal papers).
In its complaint, LimitNone alleged that Google entered a nondisclosure agreement with LimitNone to review LimitNone’s gMove software — software that helps Microsoft Outlook users migrate data to the Google platform. Google allegedly assured LimitNone that it would not offer a competing product. But after receiving LimitNone’s trade secrets, including its software code, and promoting the $19 gMove software, Google allegedly began offering a free, competing software package which allegedly used LimitNone’s trade secrets. LimitNone has not filed any responsive papers or pleadings yet, but I will keep you updated if LimitNone challenges the removal.

Continue Reading Removal Papers Argue Consumer Fraud Act Claim Sounds in Copyright

Blawg Review #168 is available at Jeffrey Mehalic’s West Virginia Business Litigation blog (another LexBlog blog) – click here for the post. It is another excellent review, although it is a bit light on IP. Additionally, Mehalic has a very even-handed post about the settlement of a West Virginia suit between West Virginia University and Rich Rodriguez, the new football coach of my University of Michigan Wolverines. While the subject matter of that dispute is not necessarily relevant to Chicago IP litigators (Coach Rodriguez is paying his full $4M buyout over time, much of it funded by the University of Michigan), Mehalic has an interesting side note about a contract the court reporters put on each transcript in the case requiring that no copies be made or used without paying the court reporter for them – click here for the post. My first reaction is, and always has been, that the reporters hold the copyright because the transcript is their interpretation and compilation of what was said. But Mehalic disagrees, and makes a good point. The copyright in a (usually) verbatim recitation of a proceeding has to have a very thin copyright, if any.

Continue Reading Blawg Review #168 — Go Blue!