Justia U.S. 2nd Circuit Court of Appeals Opinion Summaries

Defendants, the children of the late Jack Kirby, one of the most influential comic book artists of all time, appealed the district court's grant of summary judgment to Marvel. This case concerned the property rights in 262 works published by Marvel between 1958-1963. After defendants served various Marvel entities with Termination Notices purporting to exercise statutory termination rights under section 304(c)(2) of the Copyright Act of 1976, 17 U.S.C. 304, Marvel filed suit seeking a declaration that defendants have no termination rights under section 304(c)(2). The court concluded that the district court lacked personal jurisdiction over Lisa and Neal Kirby and, therefore, vacated the district court's judgment against them; Lisa and Neal are not indispensable parties and it was appropriate for the action against Barbara and Susan Kirby to have proceeded on its merits; the district court did not err in determining as a matter of law that the works at issue were "made for hire," made at Marvel's instance and expense, and that the parties had no agreement to the contrary; and the district court properly granted Marvel's motion for summary judgment as to Susan and Barbara, who were without termination rights under section 304(c). View "Marvel Characters, Inc. v. Kirby" on Justia Law

Plaintiffs, an association of authors and several individual authors, filed suit against Google alleging that it committed copyright infringement through the Library Project of its "Google Books" search tool by scanning and indexing more than 20 million books and making available for public display "snippets" of most books upon a user's search. On appeal, Google challenged the district court's grant of class certification. The court believed that the resolution of Google's fair use defense in the first instance would necessarily inform and perhaps moot the court's analysis of many class certification issues and that holding the issue of certification in abeyance until Google's fair use defense has been resolved would not prejudice the interests of either party. Accordingly, the court vacated and remanded for the district court to consider the fair use issues. View "The Authors Guild Inc., et al. v. Google, Inc." on Justia Law

Plaintiff sued Marvel, contending that he conceived the comic book character "Ghost Rider," the related characters, and the origin story. Plaintiff also claimed that he owned the renewal term copyrights in those works. On appeal, plaintiff challenged the district court's grant of summary judgment in favor of Marvel, holding that plaintiff had assigned any rights he had in the renewal term copyrights to Marvel when he executed a form work-for-hire agreement (the Agreement), six years after the initial publication of the issue in question. The court, by applying the "strong presumption against the conveyance of renewal rights," concluded that the district court erred in holding as a matter of law that plaintiff had assigned his renewal rights to Marvel by signing the Agreement; plaintiff's claim was not untimely as a matter of law because there were genuine disputes regarding whether plaintiff should have known about Marvel's repudiation of his claim of ownership; and there were genuine disputes of material fact that precluded granting summary judgment on the issue of authorship. Accordingly, the court vacated and remanded for trial. View "Gary Friedrich Enters., LLC v. Marvel Characters, Inc." on Justia Law

Plaintiff sued defendant and the Gagosian Gallery, alleging that defendant's series of paintings and collages infringed on plaintiff's registered copyrights in certain photographs from a book of classical portraits and landscape photographs that plaintiff took while living among Rastafarians in Jamaica. The district court concluded that, in order for defendant to use a fair use defense, defendant's work must comment on plaintiff, on plaintiff's photographs, or on aspects of popular culture closely associated with plaintiff or the photographs. The court concluded that the district court applied the incorrect standard to determine whether defendant's artworks made fair use of plaintiff's copyrighted photographs; that all but five of defendant's works did make fair use of the photographs; and with regard to the remaining five artworks at issue, the court remanded to the district court to consider whether defendant was entitled to a fair use defense. Accordingly, the court reversed in part, vacated in part, and remanded. View "Cariou v. Prince" on Justia Law

Two groups of plaintiffs, holders of copyrights in programs broadcast on network television, filed copyright infringement actions against Aereo. Aereo enabled its subscribers to watch broadcast television programs over the internet for a monthly fee. Plaintiffs moved for a preliminary injunction barring Aereo from transmitting programs to its subscribers while the programs were still airing, claiming that those transmissions infringed their exclusive right to publicly perform their works. The district court denied the motion and plaintiffs appealed. The court concluded that Aereo's transmissions of unique copies of broadcast television programs created at its users' request and transmitted while the programs were still airing on broadcast television were not "public performances" of plaintiffs' copyrighted works under Cartoon Network LP, LLLP v. CSC Holdings, Inc. As such, plaintiffs have not demonstrated that they were likely to prevail on the merits on this claim in their copyright infringement action. Nor have they demonstrated serious questions as to the merits and a balance of hardships that tipped decidedly in their favor. Accordingly, the court affirmed the district court's order denying plaintiffs' motion. View "WNET v. Aereo, Inc." on Justia Law

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

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

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