TANYA S. CHUTKAN, United States District Judge.
Before the Court is Plaintiffs' motion to strike Defendant's jury demand. Because no party seeks damages and Defendant has not otherwise shown any grounds for its jury demand, the motion is granted.
Plaintiffs American Educational Research Association, Inc., American Psychological Association, Inc., and National Council On Measurement In Education, Inc., brought this action for copyright infringement against Public.Resource.org, Inc. ("Public Resource"). Plaintiffs are not-for-profit organizations that develop private-sector standards, including the Standards for Educational and Psychological Testing (the "Standards"). Plaintiffs sell these standards to generate revenue. The Standards have been incorporated into the Code of Federal Regulations and various state laws. Plaintiffs allege that the Standards are an original work protected from copyright infringement, and brought suit because Public Resource has posted the Standards on its website. Plaintiffs seek a permanent injunction enjoining Public Resource from posting their standards. Plaintiffs do not seek money damages in their Complaint.
Defendant Public Resource is a non-profit entity devoted to publicly disseminating legal information. According to Defendant, its "mission is to improve public access to government records and the law . . . To accomplish this mission, Public Resource acquires copies of . . . records, including legal decisions, tax filings, statutes, and regulations, and publishes them online in easily accessible formats that make them more useful to readers, entirely free of charge." (Def. Answer ¶¶ 28, 30). Public Resource argues that because the Standards have been incorporated by reference into federal and state laws, it is entitled to publish them as public materials. Public Resource filed a counterclaim seeking a declaratory judgment that posting the Standards does not infringe Plaintiffs' copyrights, and included a jury demand in its counterclaim.
Plaintiffs have moved to strike this jury demand, arguing that because neither party seeks money damages, there is no basis for a jury demand. Plaintiffs further argue that as the copyright holders, they possess the right to demand a jury, and Public Resource cannot rely on a counterclaim for a declaratory judgment of noninfringement as a basis for a jury demand. Public Resource argues in response that it is entitled to a jury trial on its noninfringement counterclaim based on the fact that Plaintiffs could have requested a jury trial, had they asked for money damages. Public Resource argues that its counterclaim is a legal claim which creates a jury right, and further that its declaratory judgment counterclaim must be "inverted," meaning Public Resource is considered the plaintiff on that claim and can assert whatever jury rights Plaintiffs may have had—regardless of the fact that Plaintiffs have not made a jury demand. Public Resource further argues that because Plaintiffs in this case could have demanded money damages (even though they did not), this entitles Public Resource to a jury trial.
The Seventh Amendment to the United States Constitution declares that "[i]n suits at common law . . . the right of trial by jury shall be preserved. . . ." U.S.
The question at issue is: if a plaintiff copyright holder brings an infringement claim and seeks only equitable relief, can a defendant demand a jury based on a counterclaim of noninfringement where that defendant also only seeks equitable relief? Public Resource claims that given the importance of the jury right, the answer is yes. However, numerous courts have analyzed similar situations and found that the defendant in these circumstances does not have a jury right because generally the rights holder determines whether a jury demand is available.
The D.C. Circuit has not directly addressed this question. However, several cases from the Federal Circuit have analyzed the jury rights of parties in infringement actions.
Id. at 976 (internal quotation marks and citations omitted).
The Federal Circuit confirmed this understanding in Tegal Corp. v. Tokyo Electron Am., Inc., 257 F.3d 1331 (Fed.Cir. 2001). The threshold issue in that case was whether a defendant, asserting only affirmative defenses and no counterclaims, had a right to a jury trial when the plaintiff-patentee sought only injunctive relief. Id. at 1339. The court treated it as a matter of first impression because In re Lockwood had been vacated, but adopted Lockwood's reasoning and held that such a defendant does not have a right to a jury trial. Id. at 1339-40.
After the decisions in Lockwood and Tegal, there was some uncertainty as to whether a party could demand a jury where the rights holder could have brought a damages claim, even if they chose not to. The Federal Circuit addressed this uncertainty in In re Tech. Licensing Corp., 423 F.3d 1286 (Fed.Cir. 2005):
Id. at 1290-91.
Thus, according to the Federal Circuit, the right to a jury is dictated by the nature of the case brought by the rights
Public Resource argues that because its claims sound in law it is entitled to a jury independently of Plaintiffs' claims. It asserts that "[w]here . . . one party's claims give rise to a Seventh Amendment right to a jury trial, an opposing party cannot frustrate that right by artful pleading of its own claims." (Def. Opp'n 5). Public Resource offers almost no argument regarding which of its claims entitles it to a jury or why.
Public Resource may be correct that "[t]he `counterpart' of a declaratory judgment claim is not the opposing party's claims. It is, rather, the equivalent claim that would have been brought before the merger of law and equity. . . . Likewise, the `counterpart' of Public Resource's declaratory judgment claim is not Plaintiff-Counterdefendants' claim. It is the claim that would have been brought pre-merger." (Def. Opp'n 3-4). Public Resource also correctly asserts that declaratory judgment claims are not necessarily legal or equitable, Gulfstream Aerospace Corp. v. Mayacamas Corp., 485 U.S. 271, 284, 108 S.Ct. 1133, 99 L.Ed.2d 296 (1988), but are defined by the underlying issues in the case. This argument, however, serves only to undercut its purported right to a jury trial. Public Resource asks the Court to analyze its counterclaim independently of Plaintiffs' claims, but fails to engage in any analysis of its own—likely because the pre-merger counterpart of a declaratory judgment counterclaim for noninfringement is simply a defense of noninfringement, which does not create a jury right. As the Federal Circuit explained, a patent infringement action with a counterclaim of invalidity "resembles nothing so much as a suit for patent infringement in which the affirmative defense of invalidity has been pled." In re Lockwood, 50 F.3d at 974. The Federal Circuit has further noted that in such actions, "the patentee could elect whether to proceed at law or in equity, based on the remedy sought, and the right to a jury would depend on the patentee's choice." In re Tech. Licensing Corp., 423 F.3d at 1289. These Federal Circuit cases analyzed a counterclaim of invalidity as opposed to noninfringement, but a noninfringement counterclaim presents an even weaker case. For Seventh Amendment purposes, a copyright infringement action with a counterclaim of noninfringement (as in this case) is equivalent to a copyright infringement action with a defense of non-infringement. In either case, it is the copyright holder who dictates the availability of a jury by choosing to seek money damages or not. Plaintiffs have not sought damages here; therefore Public Resource cannot demand a jury.
Public Resource also argues that because Plaintiffs could have brought a legal claim for damages which would create a right to a jury, Public Resource is entitled to step into Plaintiffs' shoes and assert that same right. This entitlement arises, according to Public Resource, because as long as a plaintiff could have sought damages then either party may invoke plaintiff's theoretical right to a jury, even if the plaintiff does not actually seek damages or request a jury. According to Public Resource, a defendant acquires the plaintiff's jury right because declaratory judgment counterclaims must always be inverted into affirmative claims, meaning the defendant is placed in the position of the plaintiff and can assert whatever theoretical rights that plaintiff may have had. In support of this argument, Public Resource relies on cases which discuss claim inversion, in which "for purposes of the right to a jury trial in patent cases, it is inconsequential whether the parties are aligned in the conventional manner (patentee as plaintiff and accused infringer as defendant and invalidity counterclaimant) or in the manner that results when the accused infringer initiates the action as a declaratory judgment (accused infringer as plaintiff and patentee as defendant and infringement
The rationale behind claim inversion is the protection of the rights holder's right to a jury. Before a declaratory judgment action existed, only the rights holder could initiate a lawsuit, and the rights holder could decide whether to bring the case in law or in equity. As a result of the Declaratory Judgment Act, the accused infringer now has the option of initiating a suit, seeking a declaration of noninfringement instead of waiting to be sued for infringement. Courts have therefore noted that in the latter instance, where the case is "inverted" so the plaintiff is the alleged infringer and the defendant is the rights holder, the rights holder still has the right to demand a jury.
Public Resource's inversion argument is an unnecessary detour for the simple reason that this case is not inverted. The procedural posture here is the "conventional manner," wherein the rights holder sues for infringement and the accused infringer is the defendant and claims noninfringement. Public Resource's argument—that because it is the defendant-declaratory judgment counterclaimant, the action is automatically inverted and it steps into the shoes of the rights holder plaintiffs and asserts whatever jury rights those plaintiffs may have theoretically had—is without foundation and contrary to precedent. Even if Public Resource could step into the Plaintiffs' shoes, Public Resource has not made (and could not make) a claim for damages. Nor have Plaintiffs sought damages. There is therefore no basis for Public Resource to assert a right to a jury simply because Plaintiffs could have brought a claim for damages, even though Plaintiffs did not.
Public Resource's counterclaim for noninfringement is analogous to a defense of noninfringement in an 18th century suit for copyright infringement. As a result, Plaintiffs can decide whether to bring the suit in a court of law or equity. Here, Plaintiffs seek only an injunction, therefore the case is equitable and there is no right to a jury. Public Resource has not identified