Copyright Infringement

June 27, 2012

U.S. Supreme Court Will Hear Copyright Case over Gray Market Goods

Washington, D.C.: The Supreme Court has recently decided to hear a case that could reconcile two competing sections within The Copyright Act–section 602(a)(1) which prohibits the importation of a work without the authority of the owner and section 109(a) which allows copyrighted works to be sold without the copyright owner’s permission–which will determine the applicability of foreign copyright owners’ control of the sale and distribution of their work.

On April 16, 2012 the Supreme Court Granted cert in the case of Kirtsaeng v. John Wiley & Sons in an attempt to resolve the issue of the copyright protections of gray market goods. Reuters.com reports that Kirtsaeng, a graduate student at The University of Southern California, is from Thailand and had his family purchase textbooks cheaply overseas and then shipped to him. He then resold them on eBay for a profit, in order to make money for school. According to Kirtsaeng’s petition for cert, he claims to have researched the Copyright Law including the Doctrine of First Sale, section 109(a), and felt that it was applicable to him. However, John Wiley & Sons, whose Asian subsidiary produced some of the books sold, disagreed with the interpretation and filed an infringement suit in 2008. Although Kirtsaeng profited $37,000 from the Sale of books produced by John Wiley & Sons, a jury found him liable of infringement and imposed damages of $600,000.

According to SCOTUSblog.com, the 2nd Circuit upheld the ruling, stating that the Doctrine of First Sale only applies to U.S. made goods. In their ruling, the 2nd circuit applied the Costco Wholesale Corp. v. Costco case, in which the court split 4-4 in its decision to apply the Doctrine of First Sale to U.S. made goods sold by businesses, and extended its reach to individuals as well. When the Supreme Court hears Kirtsaeng’s case, it will seek to resolve the discrepancy in the Copyright Law and the issue of whether the Copyright Law applies to a copy that was made and legally acquired abroad and then imported into the United States, SCOUTUSblog.com reports. According to supremecourt.gov, the time for the parties to file their briefs on the merits has been extended until August 31, 2012. The case will be heard next term, reports abajournal.com.

May 29, 2012

Northern District Court Dismisses Copyright Infringement Claim in Suit Over RV Sales Agreement and Design

By Overhauser Law Offices, LLC

Fort Wayne; IN – The Northern District of Indiana has granted a partial summary judgment for Forks RV of Shipshewana, Indiana that dismisses copyright infringement claims in a dispute over a recreational vehicle sales agreement and design. Copyright attorneys for Amy and James Ortega had filed a lawsuit against Forks RV of Shipshewana, Indiana alleging that Fork breached a sales distribution agreement and also alleged copyright infringement over Fork’s use of Ortega’s designs for a custom RV. The court summarily dismissed the copyright infringement claim because Ortega had not registered his designs with the U.S. Copyright Office. The court noted “The Copyright Act states that “no civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration of the copyright claim has been made in accordance with this title.” 17 U.S.C. § 411(a).

The court, however, denied summary judgment on the breach of contract claim relating to the distribution and/or sales agreement. The court found that there was a genuine dispute of material fact, and therefore, summary judgment would be inappropriate.

Practice Tip: Copyright attorneys for Fork had requested attorney’s fees in defending the copyright infringement claim. The court granted this request, noting that . There is a strong presumption that the “prevailing party” in a copyright infringement case is entitled to recover attorney’s fees in the 7th Circuit, and that a copyright registration must be obtained before pursing an infringement claim (in most instances). Thus, plaintiffs must take care to register their copyrights before filing a copyright infringement suit, at the peril of being liable for the defendant’s attorney’s fees.

May 3, 2012

Southern District Grants Partial Summary Judgment Dismissing Some Copyright Claims In Dispute Over Virgin Mary Images

By Overhauser Law Offices, LLC

Indianapolis; IN – The Southern District of Indiana has granted partial summary judgment that dismisses many of Patricia Fuller a/k/a Sister Joseph Therese’s claims in a lawsuit over the physical and intellectual property rights to certain images and statues of the Virgin Mary, which are titled Our Lady of America. Intellectual property attorneys for Kevin B. McCarthy of Indianapolis, Indiana, Albert H. Langsenkamp, Carmel, Indiana and BVM Foundation, Inc. of Batesville, Indiana had filed a lawsuit in the Southern District of Indiana making several claims against Patricia Ann Fuller, also known as Sister Joseph Therese of Fostoria, Ohio and John Doe of Ohio. Ms. Fuller apparently has counterclaimed claiming trademark and copyright ownership of the copyrighted work OUR LADY OF AMERICA.

The court’s partial judgment dismisses Fuller’s defamation, RICO and trade dress claims as well as her copyright claims that do not relate to the copyrighted works VAu000297438, VA0000643362 and TXu000366731, which have been registered by the US Copyright Office. The court also stayed the litigation, pending a resolution from the Catholic Church of “the status/ownership of ecclesiastical property and property rights arising while Sister Ephrem was a nun[.]”

This case has convoluted facts and procedural issues. We have previously blogged about the case here.

Practice Tip: It looks like the copyright claims are going to turn on whether Ms. Fuller or the Catholic Church is the owner of the copyrights. The records of the US Copyright Office indicate that “Sister Mildred Mary Neuzil” is the copyright claimant.

May 2, 2012

Aaron Suozzi Sues Coman Publishing Company for Copyright Infringement of Photographs

By Overhauser Law Offices, LLC

Fort Wayne; IN – Copyright attorneys for Aaron Suozzi of Fort Wayne, Indiana filed a copyright infringement suit in the Allen County Superior Court alleging Coman Publishing of Durham, North Carolina infringed the copyrighted work of photographs which has been registered by the US Copyright Office. Upon the request of the defendant, the case was removed to the Northern District of Indiana.

Aaron Suozzi is a freelance photographer who provided his services to Coman Publishing. On December 8, 2011, Suozzi was informed that his services would no longer be used by Coman. He immediately demanded his photographs back and that Coman cease using his copyrighted photographs. Coman continued to use Suozzi’s copyrighted photographs; the January issue of Blue and Gold Illustrated, published on December 13, 2011 contained 16 of Suozzi’s copyrighted photographs, one being the magazine’s cover photo. According to the complaint, on December 15, Coman again informed Suozzi that they would no longer be using his services. Suozzi sent a cease and desist letter to Coman to stop using any of Suozzi’s copyrighted photographs in their magazine and on their website. Coman failed to do so. The complaint alleges Coman’s continued use of the copyrighted photographs violates Indiana Code §35-43-5-3 and that Coman’s knowing misapplication of Suozzi’s property involved substantial risk of loss to Suozzi. Suozzi seeks to recover $6,000, which includes his damages and attorney fees, plus interest, and court costs.

Practice Tip: Any case filed in state court that makes a federal claim can be removed to federal court upon request. Most intellectual property cases involve a federal claim under the federal patent, trademark or copyright laws. Here, however, the plaintiff has not explicitly stated a federal claim. However, it is clear he seeks protection of “copyrighted” photographs, which would invoke federal copyright law.

April 20, 2012

Microsoft Corporation Sues D & A LLC for Copyright and Trademark Infringement Unauthorized Installations of Windows XP

By Overhauser Law Offices, LLC

Indianapolis; IN – Trademark and copyright attorneys for Microsoft Corporation of Redmond, Washington filed a copyright and trademark infringement suit in alleging D & A LLC d/b/a/ Asset Recovery and Recycling and David B. Bell of Indianapolis, Indiana infringed trademarks 1256083, 1200236, 1872264 and 2744843 registered by the US Trademark Office. The complaint also makes copyright infringement, false designation of origin, false description and representation, and unfair competition.

The complaint alleges that D&A markets, sells, and distributes computer hardware and software, including Microsoft products. The complaint states that D&A sells computers, which it advertises have Microsoft software pre-installed. Microsoft alleges that the Microsoft software on the computers D&A sells are infringing copies. The complaint states that a Microsoft investigator purchased computers with unauthorized copies of Windows XP from D&A on three occasions in 2011. The unlicensed software contains Microsoft trademarks and copyrighted works. Microsoft is seeking a declaration of infringement, an injunction, an accounting, an order impounding counterfeit copies of Microsoft software, damages, costs and attorney fees.

Practice Tip: Microsoft has named David Bell personally, the owner of D & B, as a defendant, alleging that he participated in and had a right to control the wrongful conduct. A corporate officer, director or shareholder is, as a general matter, personally liable for all torts which she authorizes or directs or in which she participates, even if she acted as an agent of the corporation and not on her own behalf.

April 12, 2012

Dish Network Sues Thomas Williams For Copyright Infringement Over Illegal Intercept Using Dark Angel

By Overhauser Law Offices, LLC

Indianapolis, IN – Copyright attorneys for DISH Network LLC of Englewood, Colorado, EchoStar Technologies LLC of Texas, and NagraStar LLC of Englewood, Colorado have filed a copyright infringement lawsuit in the Southern District of Indianaalleging that Thomas Williams of Coal City, Indiana infringed DISH’s copyrighted works by illegal satellite signal interception.

The complaint gives a detailed, technical description of a “pirate IKS television service” called Dark Angel. Apparently the Dark Angel service allows subscribers to intercept the DISH service without paying the license and subscription fees to DISH. The complaint alleges that Mr. Williams purchased subscriptions to the Dark Angel service on April 9 and July 19, 2010. The complaint makes claims of “circumventing an access control measure” and receiving satellite signals without authorization, both in violation of the Digital Millennium Act as well as one count of intercepting satellite signals in violation of the Electronic Communications Privacy Act.

Practice Tip: The complaint states that DISH learned of Mr. Williams identity through discovery in a lawsuit DISH has filed against Dark Angel. It states that DISH seized all of Dark Angel’s business records and gleaned the names of the end users from these business records.

March 5, 2012

Northern District of Indiana Consolidates Cases, Discovery in Dispute Between Elkhart RV Manufacturers, Includes Patent and Copyright Infringement Claims

By Overhauser Law Offices, LLC

South Bend, IN – The Northern District of Indiana has issued an order consolidating related trade secret, copyright infringement and patent infringement lawsuits a dispute between RV manufacturers, Heartland Recreational Vehicles, LLC of Elkhart, Indiana and Forest River, Inc. of Elkhart, Indiana. This order address five cases currently pending in Northern District of Indiana: 3:08-CV-490-JD-CAN, 3:09-CV-302-JD-CAN, 3:10-CV-011-JD-CAN, 3:10-CV-409-JD-CAN, and 3:11-cv-250-JD-CAN. In addition to Heartland and Forest River, Brian Brady, Catteron Partners and Thor Industries are also named in the suits.
The court found that three of the cases, 3:08-CV-490-JD-CAN, 3:09-CV-302-JD-CAN, and 3:10-CV-409-JD-CAN, involve Heartland’s acquisition of Forest River’s Master List. Since they involve similar questions, the court consolidated these three cases.
The court did not consolidate two of the cases. The court noted that 3:10-CV-011-JD-CAN is a copyright infringement case, where Forest River claims that Heartland infringed its “r.Pod” floor plan. The fifth case, 3:11-cv-250-JD-CAN, is a patent infringement case. In June. Patent lawyers for Heartland Recreational Vehicles, LLC of Elkhart, Indiana filed a patent infringement lawsuit alleging Forest River, Inc. of Elkhart, Indiana infringed Patent No. 7,878,545, Travel trailer having improved turning radius, which has been issued by the US Patent Office.
Indiana Intellectual Property Law and News blogged about the case here: Heartland Recreational Vehicles LLC Sues Forest River Inc. for Patent Infringement of Travel Trailer Turning Radius. The court found that the patent infringement case should not be consolidated because it would likely create confusion and make the litigation more complex.
The court, however, ordered that discovery in all five of the cases be consolidated.

Practice Tip: Under Federal Rule of Civil Procedure 42(a), common questions of law and fact are a prerequisite to the consolidation of cases

February 28, 2012

BMI Sues Indianapolis Bar for Copyright Infringement of Honky Tonk Women

By Overhauser Law Offices, LLC

Indianapolis, IN – Copyright attorneys for Broadcast Music, Inc. (BMI) of New York, New York, along with Abkco Music, Inc, Screen Gems-EMI Music, Inc. of and Jay-Boy Music Corporation of have filed a copyright infringement suit in the Southern District of Indianaalleging B & D Restaurants, Inc. d/b/a Gallagher’s II a/k/a Gallagher’s Pizza, Nicholas Himes and David R. Himes of Indianapolis, Indiana infringed the copyrighted works Brown Sugar and Honky Tonk Women published by Abkco Music, Inc., We Gotta Get Out Of This Place, publisher Screen Gems-EMI Music, Inc. and You Really Got Me, publisher is Jay-Boy Music Corporation, of which all have been registered by the US Copyright Office.

The complaint alleges that the copyrighted songs were performed publicly at Gallagher’s II, also known as Gallagher’s Pizza, on September 10 and 11, 2011. The complaint states that Nicholas and David Himes are directors of B & D Restaurants have a financial interest and management responsibilities for the establishment. The complaint makes four claims of willful copyright infringement and seeks an injunction, damages, costs and attorney fees.

Practice Tip: BMI is known for aggressively defending copyrights and seems to be targeting Indiana bars and restaurants where copyrighted songs were performed without license or authorization. This is the third copyright infringement case filed this month in Indiana district courts. We blogged about the other two cases here and here.
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February 24, 2012

BMI Sues Elkhart Bar for Copyright Infringement of Achy Breaky Heart and Other Songs

By Overhauser Law Offices, LLC

South Bend, IN – Copyright attorneys for Broadcast Music Inc. (BMI) of New York, New York, Universal-Millhouse Music a Division of Magna Sound Corporation, Marvin J. and Laleta Moore Living Trust is a Trust d/b/a Green Door Music, Central Songs a Division of Beechwood Music Corporation, Sutjujo Music, Faizilu Publishing, Sony/ATV Songs LLC, Mann and Weil Songs, Inc., Welsh Witch Music, EMI Al Gallico Music Corp., Geomantic Music, Unichappell Music Inc., Two Night Music, Peermusic III Ltd., Universal-Champion Music Corporation, Sony/ATV Songs LLC d/b/a/ Sony/ATV Acuff Rose Music, Galeneye Music, Universal-Songs of Polygram International Inc., Lost Boys Music, Tokeco Tunes, Sony/ATV Songs LLC d/b/a/ Sony/ATV Tree Publishing and Big Yellow Dog LLC d/b/a Big Yellow Dog Music filed a copyright infringement suit in alleging Gibson’s, Inc. d/b/a The Big Easy and Oscar N. Gibson of Elkhart, Indiana infringed the copyrighted works of Don’t Tell My Heart a/k/a Achy Breaky Heart by Don Von Tress, Four Walls by Marvin Moore and George Campbell, He’ll Have to Go by Joe Allison and Audrey Allison, I’d Really Love to See You Tonight by Parker McGee, Just Once by Barry Mann and Cynthia Weil, Landslide by Stevie Nicks, Let Me Be There by John Rostill, ManEater by Sara Allen, John Oates and Daryl Hall, Ring My Bell by Frederick Knight, Satin Sheets by John E Volinkaty, Signs by Les Emerson, Tiny Dancer by Elton John and Bernie Taupin, Total Eclipse of the Heart by Jim Steinman, You Ain’t Much Fun by Toby Keith and Carl Geoff Jr. and Whiskey Girl by Scott Emerick and Toby Keith, which have been registered by the US Copyright Office.

The complaint alleges Gibson’s, Inc. operates a bar in Elkhart called The Big Easy. Oscar N. Gibson is the owner of Gibson’s, Inc. The complaint alleges that on November 17, 2011, the fifteen copyrighted songs were performed at The Big Easy without license or authorization from the copyright owners. The complaint seeks an injunction, damages, costs and attorney fees.

Practice Tip: In this case, the plaintiffs have sued the owner of Gibson’s personally as well as the corporate entity. Copyright laws allow an officer of a corporation to be held liable for the corporation’s copyright infringement if the officer contributes to the infringement by inducing or encouraging the infringement. An officer can also be liable for copyright infringement if the officer supervises the infringing conduct and has a direct financial benefit from the infringement.
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February 17, 2012

BMI Sues Fishers Bar for Copyright Infringement of Counting Crow’s Mister Jones and Other Songs

By Overhauser Law Offices, LLC

Indianapolis, IN – Copyright attorneys for Broadcast Music, Inc. (BMI) New York, New York, along with Adult Music, Gems-EMI Music, Inc., Universal-Songs of Polygram International, Inc., EMI Blackwood Music, Inc. and Counting Crows, LLC d/b/a Jones Falls Music have filed a copyright infringement suit in Southern District of Indiana alleging C & R Restaurants, LLC of Fishers, Indiana infringed the copyrighted works I want you to be me by Rick Neilsen, Jessie’s Girl by Rick Springfield, and Mr. Jones a/k/a Mister Jones by Adam Duritz, David Bryson, Matt Walley, Charlie Gillingham and Steve Bowman which have been registered by the US Copyright Office.

The complaint states C & R operates a restaurant called Casler’s Kitchen and Bar in Fishers. BMI has also named the owner of C & R, Enrique Fonseca, as a defendant in the lawsuit, stating that he had the right and ability to control the alleged infringement and financially benefitted from the alleged infringement. The complaint alleges that three copyrighted works were performed at Casler’s Kitchen & Bar on August 27, 2011 without a license or authorization from the copyright owners. BMI is seeking an injunction, damages, attorney fees and costs.

Practice Tip: In this case, the plaintiffs have sued the owner of alleging C & R Restaurants, LLC personally as well as the corporate entity. Copyright laws allow an officer of a corporation to be held liable for the corporation’s copyright infringement if the officer contributes to the infringement by inducing or encouraging the infringement. An officer can also be liable for copyright infringement if the officer supervises the infringing conduct and has a direct financial benefit from the infringement.
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