Justia Intellectual Property Opinion Summaries

Plaintiffs, producers and owners of copyrighted television programming, sued defendants for streaming plaintiffs' copyrighted television programming over the Internet live and without their consent. The court, applying Chevron analysis, held that: (1) the statutory text was ambiguous as to whether defendant, a service that retransmitted television programming over the Internet, was entitled to a compulsory license under section 111 of the Copyright Act, 17 U.S.C. 111; (2) the statute's legislative history, development, and purpose indicated that Congress did not intend for section 111 licenses to extend to Internet retransmissions; (3) the Copyright Office's interpretation of section 111 - that Internet retransmissions services did not constitute cable systems under section 111 - aligned with Congress' intent and was reasonable; and (4) accordingly, the district court did not abuse its discretion in finding that plaintiffs were likely to succeed on the merits of the case. The court also concluded that the district court did not abuse its discretion in finding irreparable harm; in balancing the hardships; and considering the public interest. View "WPIX, Inc. v. IVI, Inc." on Justia Law

Scholz Design created technical drawings for three homes and submitted them to the Copyright Office in 1988 and 1989 with front elevation drawings showing the front of the houses surrounded by lawn, bushes, and trees. Scholz obtained copyrights. In 1992 Scholz entered an agreement permitting Sart to build homes using the plans, for a fee of $1 per square foot of each house built. The agreement required that Sard not "copy or duplicate any of the [Scholz] materials nor . . . [use them] in any manner to advertise or build a [Scholz Design] or derivative except under the terms and conditions of the agreement." Scholz claimed that after termination of the agreement, Sard and real estate companies posted copies of the drawings on advertising websites and sued for violation of copyrights, 15 U.S.C. 1051, breach of contract, and violations of the Digital Millennium Copyright Act, 17 U.S.C. 1201. The district court dismissed, finding that the copied images did not fulfill the intrinsic function of an architectural plan. The Second Circuit reversed. Architectural technical drawings might be subject to copyright protection even if they are not sufficiently detailed to allow for construction. View "Scholz Design, Inc. v. Sard Custom Homes, LLC" on Justia Law

RTI owns patents relating to the automatic routing of telephone calls based upon cost. Aware of infringement by Speakeasy, a telecommunications company, RTI offered to release Speakeasy from liability in exchange for a one-time payment under RTI’s tiered pricing structure. In 2007, the companies entered a “Covenant Not to Sue” with a payment of $475,000 to RTI, and a provision barring Speakeasy from challenging, or assisting others in challenging, the validity of the patents. The agreement defined “Speakeasy” to include both Speakeasy and Best Buy, which had previously announced plans to acquire Speakeasy. Three years later, Best Buy announced a plan to sell Speakeasy and merge it into Covad. RTI again learned of an infringement and notified Covad. Covad sought a declaratory judgment that the patents were invalid. The action was later dismissed voluntarily. RTI initiated the present lawsuit. The district court dismissed, holding that the doctrine of licensee estoppel, under which a licensee of intellectual property “effectively recognizes the validity of that property and is estopped from contesting its validity,” is unenforceable in the context of challenges to patents, and that the no-challenge clause was contrary to the public interest in litigating the validity of patents. The Second Circuit affirmed. View "Rates Tech. Inc. v. Speakeasy, Inc." on Justia Law

In 2005, Forest Park formulated a concept for a television show called "Housecall," in which a doctor, after being expelled from the medical community for treating patients who could not pay, moved to Malibu, California, and became a concierge doctor to the rich and famous. Forest Park created character biographies, themes, and storylines, which it mailed to Sepiol, who worked for USA Network. Initial discussions failed. A little less than four years later, USA Network produced and aired a television show called "Royal Pains," in which a doctor, after being expelled from the medical community for treating patients who could not pay, became a concierge doctor to the rich and famous in the Hamptons. Forest Park sued USA Network for breach of contract. The district court held that the claim was preempted by the Copyright Act, 17 U.S.C.101, and dismissed. The Second Circuit reversed. Forest Park adequately alleged the breach of a contract that included an implied promise to pay; the claim is based on rights that are not the equivalent of those protected by the Copyright Act and is not preempted. View "Forest Park Pictures v. USA Network, Inc." on Justia Law

This case arose from a trademark infringement suit involving the sale of counterfeit versions of defendant's hoisin sauce. The district court subsequently imposed sanctions in fees and costs pursuant to FRCP 11 against plaintiffs and their attorneys in favor of defendant. The attorneys appealed, contending that the district court erred in its application of Rule 11. Defendant cross-appealed, contending that the district should have awarded substantially more in fees and costs and moved to sanction the attorneys for filing a purportedly frivolous appeal. The court held that the safe harbor requirement under Rule 11 was satisfied in these circumstances; the attorneys have failed to show that the district court abused its discretion in concluding that the action was frivolous; nor have the attorneys shown that the district court abused its discretion in deciding to impose monetary sanctions. The court rejected defendant's arguments on cross appeal and affirmed the judgment of the district court. View "Star Mark Mgmt., Inc. v. Koon Chun Hing Kee Soy & Sauce Factory, Ltd." on Justia Law

In these parallel cases, separate petitions were filed requesting the district court to set a "reasonable" rate after ASCAP and BMI were unable to agree on licensing fees with DMX, a provider of background/foreground music. In both cases, the district court adopted DMX's proposals. The court held the Second Amended Final Judgment (AFJ2) permitted blanket licenses subject to carve-outs to account for direct licensing and the court rejected ASCAP's claim that a blanket license with an adjustable carve-out conflicted with the AJF2. The court concluded that the district court in both cases found that ASCAP and BMI did not sustain their burdens of proving that their proposals were reasonable; no legal error contributed to these findings and the findings supported by the record were not clearly erroneous; and in both instances, the district court had the authority to set a reasonable rate for DMX's licenses. Accordingly, the court held that the district court did not err in setting DMX's licensing rates with ASCAP and BMI and that the rates set by the district court were reasonable. View "Broadcast Music, Inc. v. DMX Inc.; American Society of Computers, Authors and Publishers v. THP Capstar Acquisition Corp." on Justia Law

Defendant, a computer programmer employed by Goldman Sachs & Co., appealed his conviction for stealing and transferring proprietary computer source code of Goldman's high frequency trading system in violation of the National Stolen Property Act (NSPA), 18 U.S.C. 2314, and the Economic Espionage Act of 1996 (EEA), 18 U.S.C. 1832. Defendant argued, inter alia, that his conduct did not constitute an offense under either statute because: (1) the source code was not a "stolen" "good" within the meaning of the NSPA, and (2) the source code was not "related" to a product "produced for or placed in interstate or foreign commerce" within the meaning of the EEA. The court agreed and concluded that defendant's conduct did not constitute an offense under either the NSPA or the EEA, and that the indictment was therefore legally insufficient. Accordingly, the court reversed the judgment of the district court. View "United States v. Aleynikov" on Justia Law

Plaintiffs appealed from the judgment of the district court granting summary judgment to defendants on all claims of direct and secondary copyright infringement based on a finding that defendants were entitled to safe harbor protection under the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 512. The court held that, although the district court correctly held that the section 512(c) safe harbor required knowledge or awareness of specific infringing activity, the court vacated the order granting summary judgment because a reasonable jury could find that YouTube had actual knowledge or awareness of specific infringing activity on its website. The court further held that the district court erred by interpreting the "right and ability to control" infringing activity to require "item-specific" knowledge. Finally, the court affirmed the district court's holding that three of the challenged YouTube software functions fell within the safe harbor for infringement that occurred "by reason of" storage at the direction of the user, and remanded for further fact-finding with respect to a fourth software function. Accordingly, the court affirmed in part, vacated in part, and remanded. View "Viacom International, Inc., et al. v. Youtube, Inc., et al.; The Football Assoc. Premier League Ltd., et al. v. Tur, et al." on Justia Law

This case involved the importation and sale of counterfeit luxury goods bearing trademarks owned by Louis Vuitton (plaintiff) and others. Defendants appealed from the district court's judgment granting summary judgment to plaintiff on its claims of trademark counterfeiting and infringement, and awarding plaintiff statutory damages in the amount of $3 million, and more than $500,000 in attorney's fees and costs. The court concluded that the district court did not abuse its discretion in declining to stay the proceedings; that, as the district court concluded, an award of attorney's fees under 15 U.S.C. 1117(a) could accompany an award of statutory damages pursuant to 15 U.S.C. 1117(c); and that the district court did not abuse its discretion in awarding such fees or in setting their amount. Accordingly, the judgment was affirmed. View "Louis Vuitton Malletier S.A. v. LY USA, Inc., et al." on Justia Law

Plaintiff filed suit alleging that two shoe lines manufactured by defendant infringed plaintiff's trademark. At issue was whether a trademark registrant's delivery of a covenant not to sue, and voluntary dismissal of its trademark claims, divested a federal court of subject matter jurisdiction over a defendant's counterclaims for a declaratory judgment and cancellation of the trademark's registration. After considering the breadth of plaintiff's covenant not to sue and the improbability of future infringement, the district court dismissed defendant's counterclaims because no case or controversy existed under Article III of the United States Constitution. The court agreed with the district court and affirmed the judgment. View "Nike, Inc. v. Already, LLC" on Justia Law