Justia Civil Procedure Opinion Summaries

Tammy Livingston, individually and as a beneficiary and co-trustee of the Livingston Music Interest Trust, sued her mother, Travilyn Livingston, over the termination of copyright assignments and associated royalties for songs authored by Jay Livingston. Jay had assigned his copyright interests in several songs to a music publishing company owned by Travilyn. Travilyn later invoked her statutory right to terminate these copyright grants and filed termination notices with the U.S. Copyright Office. Tammy challenged these terminations, claiming her rights as a beneficiary were affected.The United States District Court for the Middle District of Tennessee dismissed Tammy's complaint, holding that it failed to state a claim. Tammy appealed the decision, arguing that the termination notices were ineffective, defective, or invalid, and that she retained a state law right to receive royalties from the songs covered by the terminated agreements.The United States Court of Appeals for the Sixth Circuit reviewed the case and affirmed the district court's dismissal. The court held that the 2003 California probate court order, which declared that the Family Trust held no ownership interests in Jay's copyrights, precluded Tammy's claims. The court also found that Jay had validly executed the copyright grants as an individual, not as a trustee, and that Travilyn owned Jay Livingston Music at the time of the assignments. Additionally, the court rejected Tammy's arguments regarding the termination notices' compliance with federal requirements, noting that she failed to plead specific factual allegations for most of the notices. Finally, the court held that Tammy did not identify a state law basis for her claim to royalties, thus failing to meet the pleading standards under Civil Rule 12(b)(6). View "Livingston v. Jay Livingston Music, Inc." on Justia Law

CoStar Group, Inc. and CoStar Realty Information, Inc. (collectively, “CoStar”) and Commercial Real Estate Exchange, Inc. (“CREXi”) are online platforms competing in the commercial real estate listing, information, and auction markets. CoStar sued CREXi for copyright infringement, alleging that CREXi listed images and information hosted by CoStar without permission. CREXi counterclaimed on antitrust grounds, asserting that CoStar engaged in monopolistic practices to exclude competition.The United States District Court for the Central District of California dismissed CREXi’s antitrust counterclaims and directed entry of final judgment on those claims under Fed. R. Civ. P. 54(b). The district court held that CREXi failed to show CoStar had monopoly power and that the agreements at issue were not exclusive. CREXi appealed the dismissal of its antitrust counterclaims.The United States Court of Appeals for the Ninth Circuit reviewed the case and reversed the district court’s dismissal of the antitrust counterclaims. The Ninth Circuit held that CREXi successfully stated claims under §§ 1 and 2 of the Sherman Act, California’s Cartwright Act, and the Unfair Competition Law. The court found that CREXi plausibly alleged CoStar had monopoly power in the relevant markets and engaged in anticompetitive conduct by entering into de facto exclusive deals with brokers and imposing technological barriers to entry. The court concluded that a monopolist using its power to exclude competitors and maintain monopoly power violates § 2 of the Sherman Act, and using exclusive deals to do so violates § 1 of the Sherman Act and the Cartwright Act. The court also held that CREXi stated claims under the “unfair” and “unlawful” prongs of the Unfair Competition Law. The Ninth Circuit affirmed the district court’s dismissal of CREXi’s tortious interference claims as they were improperly raised. The case was remanded for further proceedings. View "COSTAR GROUP, INC. V. COMMERCIAL REAL ESTATE EXCHANGE, INC." on Justia Law

Plaintiff Jana Romanova, a professional photographer, filed a lawsuit against Defendant Amilus Inc. for willful copyright infringement. Romanova alleged that Amilus published her photograph on its website without authorization. Despite being served, Amilus did not respond or appear in court. Romanova moved for a default judgment, but the district court ordered Amilus to show cause why the motion should not be granted. After receiving no response from Amilus, the court then ordered Romanova to show cause why the use of her photograph did not constitute fair use. The district court ultimately dismissed Romanova’s complaint with prejudice, concluding that Amilus’s use of the photograph was fair use.The United States District Court for the Southern District of New York dismissed Romanova’s claim, finding that the fair use defense was clearly established on the face of the complaint. The court reasoned that Amilus’s publication of the photograph communicated a different message than the original, which justified the fair use defense. Romanova appealed the decision, arguing that the court erred in its substantive finding of fair use and in raising the defense sua sponte for a non-appearing defendant.The United States Court of Appeals for the Second Circuit reviewed the case and reversed the district court’s judgment. The appellate court found that the district court misunderstood the fair use doctrine, particularly the requirement for a transformative purpose and justification for copying. The appellate court held that Amilus’s use of the photograph did not communicate a different message and lacked any valid justification for copying. Consequently, the appellate court remanded the case with instructions to enter a default judgment in favor of Romanova. View "Romanova v. Amilus Inc." on Justia Law

Charles James, a home designer, claimed that real estate agents infringed his copyrights by including floorplans of his homes in resale listings. James designed a home with a triangular atrium and stairs, built six homes using the design, and registered copyrights for the designs. In 2010, agent Susan Horak listed one of these homes for resale, creating a floorplan by hand for the listing. In 2017, agent Jackie Bulgin listed another of James's homes, using a similar floorplan. James discovered these listings in 2017 and alleged that the floorplans could be used to build homes, potentially infringing his copyrights.The United States District Court for the Western District of Missouri granted summary judgment to the real estate agents, concluding that their use of the floorplans was fair use. The court also initially ruled in favor of the agents under § 120(a) of the Copyright Act, but this decision was reversed by the United States Court of Appeals for the Eighth Circuit, which remanded the case for further consideration of the fair use defense.The United States Court of Appeals for the Eighth Circuit reviewed the case and affirmed the district court's summary judgment in favor of the agents. The court held that the agents' use of the floorplans was fair use, considering the purpose and character of the use, the nature of the copyrighted work, the amount and substantiality of the portion used, and the effect on the market for the original work. The court found that the agents' use was transformative, had an informational purpose, and did not harm the market for James's designs. The court also rejected Designworks's request for further discovery on the fair use issue, concluding that the district court did not abuse its discretion in denying the motion. The court affirmed the district court's judgments. View "Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc." on Justia Law

Sysco Machinery Corp. ("Sysco"), a Taiwanese company, sued two other Taiwanese companies, Cymtek Solutions, Inc. ("Cymtek") and Cymmetrik Enterprise Co. Ltd. ("Cymmetrik"), in the U.S. District Court for the District of Massachusetts. Sysco alleged that Cymtek and Cymmetrik infringed its copyrights and misappropriated its trade secrets related to a rotary die-cutting machine developed in Taiwan. The alleged infringing activities occurred in Taiwan, but Sysco claimed that the effects of these activities extended to the United States.Sysco initially pursued legal action in Taiwan's Intellectual Property and Commercial Court (IPCC) and obtained a preliminary injunction against Cymtek and its employees. However, the proceedings in Taiwan are ongoing. Sysco then filed a lawsuit in the U.S. District Court for the Eastern District of North Carolina, which it voluntarily dismissed. Subsequently, Sysco filed the current lawsuit in the District of Massachusetts, asserting claims of trade secret misappropriation, copyright infringement, unfair and deceptive acts, and tortious interference.The U.S. District Court for the District of Massachusetts dismissed the case under the doctrine of forum non conveniens, concluding that Taiwan was a more appropriate forum for the dispute. Sysco appealed the dismissal to the United States Court of Appeals for the First Circuit.The First Circuit reviewed the district court's decision for abuse of discretion and affirmed the dismissal. The court held that Taiwan was an adequate alternative forum, as it could exercise jurisdiction over the parties and provide sufficient remedies for the alleged intellectual property violations. The court also found that the private and public interest factors favored litigation in Taiwan, given that the majority of evidence and witnesses were located there, and the alleged infringing activities primarily occurred in Taiwan. The court concluded that the district court did not abuse its discretion in applying the doctrine of forum non conveniens. View "Sysco Machinery Corp. v. Cymtek Solutions, Inc." on Justia Law

A physician in Puerto Rico, Dr. Jaime Salas Rushford, had his board certification suspended by the American Board of Internal Medicine (ABIM) after ABIM concluded that he had improperly shared board exam questions with his test prep instructor. ABIM sued Salas Rushford for copyright infringement in New Jersey. Salas Rushford counterclaimed against ABIM and several ABIM-affiliated individuals, alleging that the process leading to his suspension was a "sham."The counterclaims were transferred to the District of Puerto Rico, where the district court granted ABIM's motion for judgment on the pleadings and denied Salas Rushford leave to amend his pleading. The court found that Salas Rushford failed to state a claim for breach of contract, breach of the implied covenant of good faith and fair dealing, and tort claims against the ABIM Individuals. The court also dismissed his Lanham Act claim for commercial disparagement.The United States Court of Appeals for the First Circuit reviewed the case. The court affirmed the district court's dismissal of Salas Rushford's claims. It held that ABIM had broad discretion under its policies to revoke certification if a diplomate failed to maintain satisfactory ethical and professional behavior. The court found that Salas Rushford did not plausibly allege that ABIM acted with bad motive or ill intention, which is necessary to state a claim for breach of the implied covenant of good faith and fair dealing under New Jersey law.The court also affirmed the dismissal of the Lanham Act claim, noting that Salas Rushford failed to allege actual consumer deception or intentional deception, which is required to state a claim for false advertising. Finally, the court upheld the district court's denial of leave to amend the complaint, citing undue delay and lack of a concrete argument for why justice required an amendment. View "American Board of Internal Medicine v. Salas-Rushford" on Justia Law

The case revolves around a dispute over the estate of Dr. Lester Frank Sumrall, who founded a church that grew into a global evangelical empire, LeSEA, Inc. After his death, his son and grandson, Lester Sumrall, claimed they should have inherited part of his estate, including copyrights to his works and his right of publicity. They alleged that LeSEA, now controlled by other family members, had wrongfully taken ownership of these assets.The case was initially heard in the United States District Court for the Northern District of Indiana. The district court dismissed the claims brought by Lester Sumrall and the Lester Sumrall Family Trust against LeSEA and its affiliates, ruling in favor of LeSEA on all counts. The court found that the copyright claims were untimely and that LeSEA owned the copyright to a particular photograph, the "Traveler Photo," taken by Lester Sumrall. The court also dismissed various state law claims for damages under the doctrine of laches, citing inexcusable delay in asserting rights and prejudice to the adverse party.Upon appeal, the United States Court of Appeals for the Seventh Circuit affirmed the district court's decision. The appellate court agreed that the copyright claims were untimely and that LeSEA owned the copyright to the Traveler Photo. The court also upheld the application of laches to the state law claims, noting that laches is equally applicable in suits at law in Indiana. Finally, the court dismissed the claim for LeSEA's alleged use of Dr. Sumrall's right of publicity, as the Trust failed to plead the required half-ownership. View "Sumrall v. LeSEA, Inc." on Justia Law

A graphic designer, Cynthia Foss, filed a lawsuit against Marvic, Inc., Brady-Built, Inc., and Charter Communications, alleging copyright infringement. Foss claimed that Marvic and Brady-Built used a marketing brochure she created without her permission. She also sought a declaratory judgment that Charter Communications was not eligible for the Digital Millennium Copyright Act's safe-harbor defense.Previously, Foss had filed a similar lawsuit against Marvic alone, which was dismissed because she had not registered her copyright before filing the suit. This dismissal was affirmed by the First Circuit Court of Appeals. In the current case, the District Court dismissed Foss's copyright infringement claim against Marvic and Brady-Built on the grounds of claim preclusion, citing the dismissal of her earlier lawsuit. The court also dismissed her claim against Charter Communications for lack of jurisdiction and failure to state a plausible claim.The United States Court of Appeals for the First Circuit vacated the dismissal of the copyright infringement claim against Marvic and Brady-Built. The court found that the dismissal of Foss's earlier lawsuit was not a "final judgment on the merits" for claim preclusion purposes. However, the court affirmed the dismissal of Foss's claim against Charter Communications for lack of jurisdiction. The court also vacated the District Court's alternative merits-based dismissal of Foss's claim against Charter Communications. The case was remanded for further proceedings. View "Foss v. Marvic" on Justia Law

This case pertains to an alleged copyright infringement involving software code used in an industrial control system. The plaintiffs, RJ Control Consultants, Inc. and its sole shareholder, Paul Rogers, appealed the district court’s exclusion of their proposed expert and the granting of summary judgment to the defendants, Multiject, LLC; its sole owner, Jack Elder; and RSW Technologies, LLC. The U.S Court of Appeals for the Sixth Circuit held that the district court did not abuse its discretion in excluding the plaintiffs’ proposed expert or in granting summary judgment to the defendants. The plaintiffs had failed to properly disclose their expert as required and did not produce an expert report. Consequently, they could not offer expert evidence to rebut the defendants' evidence. Furthermore, they could not create a genuine dispute of fact about the protectability of the software code, a crucial factor in their copyright infringement claim. Therefore, the district court's judgment was affirmed. The court also vacated its prior decision in RJ Control Consultants, Inc. v. Multiject, LLC, 981 F.3d 446 (2020), due to lack of appellate jurisdiction at the time of that decision. View "R.J. Control Consultants, Inc. v. Multiject, LLC" on Justia Law

This case revolves around a copyright dispute between Whyte Monkee Productions, LLC and Timothy Sepi (Plaintiffs) and Netflix, Inc. and Royal Goode Productions, LLC (Defendants). Plaintiffs sued Defendants for copyright infringement, alleging that Defendants had used clips from eight videos filmed by Mr. Sepi without permission in the documentary series "Tiger King: Murder, Mayhem and Madness". The district court granted summary judgment in favor of the Defendants, concluding that seven of the videos were works made for hire and thus Mr. Sepi did not own the copyrights. The court also found that the use of the eighth video constituted fair use and did not infringe on Mr. Sepi’s copyright.On appeal, the Tenth Circuit Court of Appeals held that Plaintiffs waived their argument regarding the first seven videos as they presented a new theory not raised in the lower court. Accordingly, the appellate court upheld the district court's judgment regarding these videos. However, regarding the eighth video, the appellate court ruled that the district court erred in determining that Defendants were entitled to summary judgment on their fair use defense. The court concluded that the first factor of the fair use analysis favored the Plaintiffs instead of the Defendants, and that the Defendants failed to provide any evidence demonstrating the absence of a market impact, which is necessary to apply the fourth fair use factor. Therefore, the appellate court affirmed the lower court’s judgment as to the first seven videos, reversed the judgment as to the eighth video, and remanded the case for further proceedings. View "Whyte Monkee Productions v. Netflix" on Justia Law