Copyright Infringement

June 26, 2015

Indiana Copyright Litigation: Bell Files New Copyright Infringement Lawsuit

Indianapolis, Indiana – Indiana copyright attorney and professional photographer Richard N. Bell of McCordsville, Indiana has sued PROACT Search LLC of Wilmette, Illinois in the Southern District of Indiana on allegations of copyright infringement. At issue is a copyrighted photo of the Indianapolis skyline taken by Bell that has been registered by the U.S. Copyright Office.

In 2000, Plaintiff Bell photographed the downtown Indianapolis skyline. Bell indicates in this Indiana complaint that the photo has been registered by the U.S. Copyright Office as Registration Number VA0001785115.

PROACT Search, which does business on the Internet at www.proactsearch.com, advertises itself as a national executive search firm that assists school districts to fill leadership-level job vacancies.

In this Indiana copyright lawsuit, Bell contends that PROACT Search used his copyrighted image without permission when it used Bell’s photo in promotional material that announced that “Indianapolis Public Schools hires PROACT Search to find a new Deputy Superintendent.” Bell claims that Defendant “willfully and recklessly falsely claimed that it owned the copyrights of all images and photos contained in the advertising piece,” including Bell’s photo of Indianapolis.

Bell asserts that PROACT Search has thus profited from the use of the copyrighted photo. This use is alleged to have been committed willfully and deliberately and with oppression, fraud, and malice.

In this federal complaint, which Plaintiff Bell filed on his own behalf, Bell asserts claims of copyright infringement and unfair competition. He asks for an accounting of all gains, profits and advantages derived by Defendant as a result of the alleged infringement and for statutory and/or actual damages. He also seeks reimbursement of costs and reasonable attorneys’ fees.

Practice Tip: Richard Bell has been a prolific copyright plaintiff in the Indiana federal courts. Some previous blog posts regarding his litigation include:

June 24, 2015

Indiana Copyright Litigation: Bell Sues Georgia-Based FindTicketsFast.com for Copyright Infringement

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Indiana attorney Richard N. Bell of McCordsville, Indiana filed an

intellectual property lawsuit in the Southern District of Indiana alleging that Find Tickets, LLC of Alpharetta, Georgia infringed the copyright of a photo of the Indianapolis skyline taken by Bell.

In 2000, Plaintiff Bell photographed the downtown Indianapolis skyline. Bell indicates in this complaint that the photo has been registered by the U.S. Copyright Office as Registration Number VA0001785115.

Find Tickets, LLC, which does business at the website www.findticketsfast.com, has been accused of infringing the copyright of this photo. In this single-defendant complaint, Bell contends that Find Tickets used his copyrighted image without permission and that, moreover, “each Defendant willfully and recklessly falsely claimed that it owned the copyrights of all images and photos contained in the Defendant’s website,” including Bell’s photo of Indianapolis. Consequently, alleges Bell, “Defendants have [sic] realized and continue to realize profits and other benefits rightfully belonging to Plaintiff.” Defendant Find Tickets is accused of “willfully and deliberately” engaging in copyright infringement “with oppression, fraud, and malice.”

In this federal complaint, copyright lawyer Bell makes claims of copyright infringement and unfair competition. Plaintiff asserts that he has suffered irreparable injury as a result of the alleged infringement of his copyrighted photo. Bell asks the court to declare that Find Tickets’ use of the photo violates Bell’s rights under the Copyright Act and to enjoin further infringing uses of his photo. He asks for an accounting of all gains, profits and advantages derived by Defendant as a result of the alleged infringement and for statutory and/or actual damages for each violation. Plaintiff also seeks reimbursement of costs and reasonable attorneys’ fees.

June 17, 2015

Indiana Copyright Litigation: Richard Bell Files Two New Copyright Infringement Lawsuits

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Indiana attorney Richard Bell of McCordsville, Indiana filed two new lawsuits alleging copyright infringement in the Southern District of Indiana. The Defendants in the first lawsuit are WRTV of Indianapolis, Indiana, and DISH Network Corporation of Englewood, Colorado. The Defendant in the second copyright complaint is Larry Turner of Indianapolis, Indiana.

In two similar intellectual property complaints, Bell, an Indiana copyright lawyer and professional photographer, alleged infringement of a copyrighted photo of Indianapolis. This photo, Registration Number VA0001785115, has been registered by the U.S. Copyright Office. Bell claims that he owns the intellectual property rights to the photo.

In two separate lawsuits, filed in an Indiana federal court, Bell asserts that the Defendants used his copyrighted photo without having purchased a license. Each complaint lists one count, “Copyright Infringement and Unfair Competition.” Bell asks for injunctive relief; actual and/or statutory damages; and reimbursement of litigation costs, including attorneys’ fees.

June 16, 2015

Indiana Copyright Law: Court Prevents Copyright Plaintiff Bell from Outmaneuvering Legal System; Orders Bell to Pay Almost $34,000 in Fees and Costs

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Plaintiff and Indiana copyright attorney Richard Bell of McCordsville, Indiana was ordered by Judge Tanya Walton Pratt of the Southern District of Indiana to pay almost $34,000 in attorney’s fees and costs to Defendant Charles Lantz, whom Bell had sued on unsupported allegations of copyright infringement.

Indiana copyright attorney Richard Bell, who is also a professional photographer, has sued hundreds for copyright infringement. The lawsuits began in 2011. At issue in Bell’s spate of litigation were allegations of unauthorized use of his copyrighted photograph of the Indianapolis skyline, which had been registered at the U.S. Copyright Office. The ongoing saga of this multiplicity of copyright lawsuits took an interesting, if unsurprising, turn last week.

According to an article in The Indiana Lawyer, Bell has said that most Defendants whom he has sued have settled early. Acknowledging the expense of litigation – and the relative ease of escaping litigation by simply paying a settlement without any finding of liability – Bell said, “A responsible lawyer and their clients, they obviously know it’s going to be far more expensive to try it.”

A current copyright-infringement lawsuit, filed January 8, 2013 by Bell, named forty-seven Defendants. Forty-six of those Defendants were dismissed from the lawsuit, including some who settled and some against whom a default judgment was issued. Default judgments of $2,500 were awarded in this litigation.

One Defendant, Charles Lantz, refused to pay for copyright infringement that he had not committed and hired Indiana intellectual property attorney Paul Overhauser (publisher of this blog) to defend him. In December 2014, Lantz’s perseverance paid off and the court granted an unopposed motion for voluntary dismissal of the litigation against Lantz. Last week, Lantz’s perseverance paid off again when Overhauser, on behalf of Lantz, sought and was awarded $33,974.65 in attorney’s fees and costs from Plaintiff Bell.

The court explained that, because Bell’s copyright litigation against Lantz had been dismissed with prejudice, Lantz became the “prevailing party” under the Copyright Act. Under 17 U.S.C. § 505, in any civil copyright action, the district court may award litigation costs, including attorney’s fees, to the prevailing party.

In evaluating whether to exercise its discretion to award such costs to Lantz, the court stated, “Defendants who defeat a copyright infringement action are entitled to a strong presumption in favor of a grant of fees.” The court looked to the Fogerty factors, which are so named after Fogerty v. Fantasy, Inc., 510 U.S. 517 (1994), a U.S. Supreme Court case involving the shifting of costs in copyright litigation. These factors are nonexclusive and include: “(1) the frivolousness of the action; (2) the losing party’s motivation for filing or contesting the action; (3) the objective unreasonableness of the action; and (4) the need to advance considerations of compensation and deterrence.”

The court found that each of these factors weighed against Bell. It stated that Bell had possessed no evidence against Lantz that would prove either a conversion or a copyright claim. It also characterized Bell’s motivation for filing the lawsuit as “questionable,” noting that Bell had attempted to save himself “extensive filing fees” by improperly joining defendants and had “sued forty-seven defendants and then quickly offered settlements to defendants who were unwilling to pay for a legal defense.”

Regarding the third and fourth factors, the court held that the litigation was objectively unreasonable, given that Lantz had been sued “without any evidence to support the claims.” The court then turned to the last of the Fogerty factors, the need to advance considerations of compensation and deterrence. It noted that Bell had leveraged his status as a practicing attorney “to file meritless suits and to attempt to outmaneuver the legal system” (which was perhaps a hat tip to the now-famous opinion written by Judge Otis D. Wright III, who employed similar language against another copyright plaintiff widely regarded as a copyright troll).

Finally, the court was not swayed by Bell’s assertions that Lantz had failed to inform Bell that the wrong defendant had been sued and that Lantz had incurred unnecessary attorney’s fees. In response to these claims, the court noted that Lantz had “denied liability at his first opportunity.” The court also opined that, while defense counsel is not required to take the most economical defense strategy in defending a copyright lawsuit, it appeared that the “most economical approach feasible” may have been taken.

With all Fogerty factors weighing against Bell and no viable opposition permitting either an escape from fees and costs or a lessening of the amount, the court awarded to Defendant Lantz $33,974.65, the full amount requested.

Practice Tip: The Indiana Lawyer wrote an interesting piece regarding Judge Pratt’s order. That article may be viewed here.

June 10, 2015

Indiana Intellectual Property Litigation: DISH Network Accuses Indiana Resident of Piracy

By Overhauser Law Offices, LLC

New Albany, Indiana – Intellectual property attorneys for DISH Network L.L.C., EchoStar Technologies L.L.C., and NagraStar L.L.C., all of Englewood, Colorado (collectively, “DISH Network”), filed a lawsuit in the Southern District of Indiana alleging that Danny Abner of Paris Crossing, Indiana illegally intercepted, decrypted and viewed DISH Network satellite programming.

Defendant Abner has been accused by DISH Network of “circumventing DISH Network’s security system and receiving DISH Network’s satellite broadcasts of copyrighted television programming without payment of the required subscription fee.” This intellectual property lawsuit, brought in the Southern District of Indiana, claims Abner violated the Digital Millennium Copyright Act, 17 U.S.C. § 1201 et seq., the Federal Communications Act, 47 U.S.C. § 605 et seq., and the Electronic Communications Privacy Act, 18 U.S.C. § 2511 et seq.

According to DISH Network, Abner’s piracy occurred via the use of Nfusion Private Server (“NFPS”), a television-pirating service. Francis Philip, a/k/a Vgiddy, sold subscriptions to the NFPS service. Philip provided DISH Network with copies of his business records pertaining to Abner, which showed that Abner had purchased one or more subscriptions to the piracy service in 2012.

Through the NFPS piracy service, Abner allegedly obtained DISH Network’s digital “keys,” which he used to decrypt and view DISH Network programming. The type of piracy of which Abner is accused, Internet key sharing, is still possible despite DISH Network’s latest generation of security technology.

In the complaint, filed by intellectual property lawyers for DISH Network, the following counts are alleged:

• Count I: Circumventing an Access Control Measure in Violation of the Digital Millennium Copyright Act, 17 U.S.C. § 1201(a)(1)
• Count II: Receiving Satellite Signals Without Authorization in Violation of the Federal Communications Act, 47 U.S.C. § 605(a)

• Count III: Intercepting Satellite Signals in Violation of the Electronic Communications Privacy Act, 18 U.S.C. §§ 2511(1)(a) and 2520

DISH Network seeks injunctive relief, compensatory damages, punitive damages, and reimbursement for DISH Network’s costs, attorneys’ fees, and investigative expenses.

May 28, 2015

New EFF “404” Report Shows How Restrictive Copyright Policies Stifle Online Speech Worldwide

By Overhauser Law Offices, LLC

San Francisco, California – Overly-broad intellectual property (“IP”) laws in Russia, Colombia, and Pakistan – which U.S. trade regulators say aren’t tough enough – stifle access to innovation and threaten artists, students, and creators around the globe with prison, censorship, and state prosecution, the Electronic Frontier Foundation (“EFF”) said in a new report released recently.

EFF’s “Special 404 Report” is a response to the “Special 301 Report.” The latter report, which EFF called biased and “a deeply flawed annual assessment of international intellectual property rights policies,” was released in April by the Office of the U.S. Trade Representative (“USTR”). The Special 301 Report is used to pressure countries to adopt IP laws supported by some powerful business interests.

In a first-of-its-kind analysis countering what EFF called the USTR’s “name and shame” tactics, EFF argues that the Special 301 Report paints a one-sided picture of IP rights and fails to disclose the damaging results of draconian IP policies. Examples include a human rights activist in Russia who was targeted by prosecutors using criminal copyright law, a biologist in Colombia who faces prison for sharing research, and students in Pakistan who struggle to exercise their rights under local law to study academic papers.

May 14, 2015

Ninth Circuit Copyright Proceedings: Prenda Law Parties Ask to be Prosecuted

By Overhauser Law Offices, LLC

San Francisco, California – A lawyer for Prenda Law argued before the United States Court of Appeals for the Ninth Circuit and was heard by Judges Harry Pregerson, Richard Tallman and Jacqueline Nguyen. The appeal focused on the rulings of U.S. District Court Judge Otis Wright II.

The intellectual property attorney representing Prenda Law, the now-infamous copyright trolling law firm, squared off with the judges of the Ninth Circuit recently. In a hearing before the appellate court, he contended that the district court had denied due process to the Prenda Law parties. He noted that Judge Wright had threatened incarceration argued and, in doing so, Judge Wright had indirectly initiated a criminal contempt proceeding.

“The entire proceeding was tainted. Mark Lutz, the CEO of Ingenuity 13, was not allowed to testify. As soon as they asserted their Fifth Amendment rights, the judge stopped the proceeding,” Prenda Law’s lawyer said. “He can’t use that against them,” he continued, arguing that Judge Wright had punished the Prenda Law parties for invoking their Fifth Amendment rights against self incrimination.

May 12, 2015

Copyright Law: U.S. Copyright Office Publishes Index of Fair Use Decisions

By Overhauser Law Offices, LLC

Washington, D.C. – Register of Copyrights Maria A. Pallante yesterday announced the launch of the U.S. Copyright Office’s Fair Use Index, which is designed to provide the public with searchable summaries of major fair use decisions. The Index was undertaken in support of the 2013 Joint Strategic Plan on Intellectual Property Enforcement prepared by the U.S. Intellectual Property Enforcement Coordinator within the Executive Office of the President.

Although not a substitute for legal advice, the Index is searchable by court and subject matter and provides a helpful starting point for those wishing to better understand how the federal courts have applied the fair use doctrine to particular categories of works or types of use, for example, music, internet/digitization, or parody.

“The doctrine of fair use has been an essential aspect of our copyright law for nearly 175 years,” said Pallante, “but it has too often been a mystery to good-faith users who seek more detail about its application. It has been a pleasure coordinating this practical and important resource with the U.S. Intellectual Property Coordinator’s office.”

April 28, 2015

Indiana Copyright Litigation: Magistrate Rejects Malibu Media’s Request for Fees and Sanctions

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Magistrate Judge Mark J. Dinsmore recommended that Judge William T. Lawrence deny Malibu Media’s motion for fees and sanctions against two Defendants and copyright lawyer Jonathan Phillips.

This Indiana federal lawsuit involves allegations of the use of BitTorrent to illegally download copyrighted adult films. Plaintiff Malibu Media, LLC of Malibu, California initiated copyright litigation in the Southern District of Indiana alleging that Charles and Kelley Tashiro, husband and wife, violated its intellectual property rights by downloading copyrighted videos without authorization.

On the morning of a scheduled evidentiary hearing in the matter, attorney Phillips, who at the time represented both husband and wife, learned of Mr. Tashiro’s intent to invoke his Fifth Amendment rights to avoid testifying about certain matters. The defense attorney for the Tashiros advised the court that, as a result, a conflict of interest between husband and wife had arisen and that he would be withdrawing as the defense attorney for Mr. Tashiro. As a result, the court postponed that day’s hearing.

Malibu Media subsequently filed a motion asking the court for sanctions, seeking to hold Mr. Tashiro and his copyright attorney jointly and severally liable for the costs and fees incurred in its preparations for the postponed hearing. Malibu Media contended that the defense lawyer’s failure to recognize the conflict of interest between the two Defendants in a timely manner had required Malibu Media to incur unnecessary expenses for the evidentiary hearing. More specifically, Malibu Media contended that it incurred several thousand dollars in unnecessary fees, travel expenses, and other costs. It sought to recover those fees, expenses, and costs 1) under Federal Rule of Civil Procedure 37; 2) under 28 U.S.C. § 1927; 3) through an exercise of the court’s inherent authority; and 4) under Federal Rule of Civil Procedure 16.

Magistrate Judge Dinsmore first concluded that FRCP 37 was inapplicable, as it was generally appropriate for “disputes or misconduct during discovery” and the delay of the evidentiary hearing had not resulted from discovery misconduct.

Plaintiff’s claim under 28 U.S.C. § 1927 was also rejected. That section provides that the court may order costs, expenses, and attorneys’ fees incurred as a result of an attorney’s unreasonable or vexatious expansion of the proceedings in litigation.

Malibu Media asserted that this section applied because the copyright attorney’s failure to timely recognize a conflict of interest between the husband-and-wife Defendants failed to meet the standard of care required of attorneys. The court disagreed, stating that the case had involved no incompatibility of the copyright Defendants’ positions, as both had steadfastly asserted that neither had infringed any of Malibu Media’s copyrighted material and that no evidence had been destroyed. Consequently, the defense attorney’s belief that he could provide concurrent representation to both Defendants was neither unreasonable nor vexatious and, thus, relief under 28 U.S.C. § 1927 was unavailable.

Moreover, the court explained, even had § 1927 applied, it provided recompense only for the excess costs and fees incurred – those that would not have been otherwise necessary. Because much of the material prepared by intellectual property counsel for Malibu Media would likely prove useful later in the litigation, those costs and fees had not been incurred unnecessarily.

Magistrate Judge Dinsmore also rejected Malibu Media’s argument that the court should sanction Mr. Tashiro and the defense attorney under the inherent authority that the court holds to manage its affairs through the sanctioning of a party that has abused the judicial process. The court had already determined during its analysis under § 1927 that the defense attorney had acted neither unreasonably nor vexatiously. Thus, a sanction against the defense attorney for abuse of process was similarly found to be improper. The court also declined to hold that Mr. Tashiro’s decision to invoke his Fifth Amendment rights was an abuse of judicial process.

The court then addressed Malibu Media’s contention that Federal Rule of Civil Procedure 16 authorized sanctions in this case. It concluded that, as the rule authorized the imposition of sanctions only in matters regarding scheduling conferences or other pre-trial conferences, it did not apply to the evidentiary hearing at issue in this request for sanctions.

Finally, Magistrate Judge Dinsmore recommended to Judge Lawrence that Malibu Media’s motion, which had been filed without the required statement showing that Plaintiff’s attorney made reasonable efforts to confer with opposing counsel prior to filing the motion for sanctions, be denied for failure to comply with Local Rule 7-1(g).

April 13, 2015

Indiana Copyright Litigation: Court Grants Plaintiff’s Motion to Dismiss Copyright Lawsuit

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Indiana copyright attorneys for Redwall Live Corporation (“Redwall”) of Indianapolis, Indiana asked the Southern District of Indiana to dismiss Redwall’s own copyright litigation. Redwall’s complaint alleged that ESG Security, Inc. (“ESG”), also of Indianapolis, Indiana, infringed the logo that Redwall had designed for ESG. That logo has been registered by the U.S. Copyright Office. The court dismissed the complaint in its entirety. Redwall will be permitted to refile the non-copyright counts in Indiana state court but the copyright count was dismissed with prejudice.

Redwall is a consulting and design-services firm engaged in the business of strategic branding and advertising. Its services include developing a clear message and a unique visual image as well as developing brand value for its clients.

In its 2013 complaint against ESG, Redwall stated that it had been hired by ESG to reinvent ESG’s brand. As part of this project, it created a new logo design for ESG, which was copyrighted under Registration No. VA 1-874-872. Redwall asserted that ESG had failed to pay Redwall in full for the work done and that ESG nonetheless had continued to use Redwall’s copyrighted logo on a variety of items. Indiana copyright lawyers for Redwall sued for copyright infringement under federal law, as well as breach of contract and unjust enrichment under Indiana state law.

Redwall later decided that pursuing the copyright portion of the claim was not worth the expense. As the Judge Sarah Evans Barker put it, they concluded that “the game is not worth the candle.” Copyright attorneys for Redwall asked the court to dismiss the copyright complaint without prejudice. Attorneys for ESG asked the court instead to dismiss Redwall’s copyright claim with prejudice.

In evaluating Redwall’s motion to dismiss, the court cited its discretion to attach conditions to the dismissal of a lawsuit – “the quid for the quo of allowing the plaintiff to dismiss his suit without being prevented by the doctrine of res judicata from bringing the same suit again.” The court noted that Redwall seemed to have added a less-than-robust copyright claim as leverage to obtain its true goal of payment under its contract with ESG. Judge Barker concluded that to allow Redwall to withdraw that copyright claim without any res judicata consequences would reward that gamesmanship. The court determined that, as a proper exercise of its discretion, it would dismiss Redwall’s copyright claim with prejudice but permit Redwall’s remaining state-law claims to be refiled in state court.

Practice Tip: Filing a copyright lawsuit can be perilous, as the plaintiff may later be unable to dismiss that litigation without incurring liability for the defendant’s attorney fees. As the Seventh Circuit held in Riviera Distribs., Inc. v. Jones, a voluntary dismissal of a copyright claim by the plaintiff – if that claim is dismissed with prejudice – is sufficient to trigger the duty of the plaintiff to pay the attorney’s fees incurred defending against the allegations of copyright infringement: “[Defendant] Midwest obtained a favorable judgment. That this came about when [Plaintiff] Riviera threw in the towel does not make Midwest less the victor than it would have been had the judge granted summary judgment or a jury returned a verdict in its favor. Riviera sued; Midwest won; no more is required.” Similarly here, ESG qualifies as a “prevailing party” under the Copyright Act and is thus presumptively entitled to attorneys’ fees for the litigation of that claim under 17 U.S.C. § 505.