THOMAS W. THRASH, District Judge.
The Defendants move for attorneys' fees and costs, which may be awarded in the Court's discretion to the prevailing party in a civil action under the Copyright Act. The Court granted the Defendants' Motion for Summary Judgment on the Plaintiff's claim of copyright infringement. The Defendants argue that the Plaintiff's copyright claim was frivolous and objectively unreasonable, and was brought to harass the Defendants. The Court finds that while the Plaintiff did not produce sufficient evidence in discovery to defeat the Defendants' motion on the copyright claim, the claim was not frivolous and was not objectively unreasonable. Furthermore, there is no evidence to support the Defendants' speculative assertion that the Plaintiff brought the copyright claim to harass the Defendants.
The Plaintiff, Advanced Technology Services, Inc. ("ATS"), sells a document imaging software program called OptiDoc. (Compl. ¶ 5.) OptiDoc is a complete document management program that integrates with other software packages. (Mischke Aff. ¶¶ 7-8.) The Defendants Miles Waldron and Harvey Heath are both former employees of ATS. Waldron was a lead software engineer for ATS and had access to the source code for OptiDoc while employed by the company. (Compl. ¶¶ 7 & 11.) While at ATS, Waldron signed a Trade Secrets Agreement and a Non-Competition, Non-Solicitation and Non-Disclosure Agreement. (Compl. ¶ 10.) Waldron resigned from ATS on June 1, 2010 (Compl. ¶ 12) and Heath resigned on or about July 7, 2010. (Compl. ¶ 13.) On July 17, 2010, Waldron and Heath announced their company KM Docs with screen shots of their software DocUnity and DocDNA. (Compl. ¶ 14.) DocUnity and DocDNA are document imaging products that compete with ATS' OptiDoc software. ATS states that DocUnity and DocDNA are similar in look and function to OptiDoc. (Compl. ¶¶ 14-15.) The Plaintiff alleges that "[d]efendants Heath and Waldron conspired together during the last year of employment with ATS to unlawfully take, misappropriate and steal the OptiDoc software." (Pl.'s Br. in Opp'n to Defs.' Mot. to Dismiss, at 5.)
The Complaint was filed in the Superior Court of Fulton County, Georgia on September 8, 2011, and was removed to this Court on September 15, 2011 [Doc. 1]. The Plaintiff brought several claims in addition to its claim for copyright infringement, including misappropriation, conversion, tortious interference with Waldron's contract, tortious interference with ATS' contract with customers, breach of contract, fraud, violation of the Georgia RICO Act, injunctive relief, breach of fiduciary duty to ATS, theft of corporate opportunity, conspiracy, punitive damages, and attorneys' fees. The Defendants filed a Motion for Summary Judgment on February 4, 2013 [Doc. 42].
On April 9, 2013, the Court ruled on the Defendants' Motion for Summary Judgment [Doc. 53]. The Defendants prevailed on the copyright claim in their Motion for Summary Judgment. The Court declined to exercise supplemental jurisdiction over the remaining state law claims, and remanded the action to the Superior Court of Fulton County.
The award of attorneys' fees and costs under the Copyright Act is within the discretion of the Court. 17 U.S.C. § 505;
The Defendants argue that the Plaintiff's copyright claim was frivolous and objectively unreasonable, and was brought to harass the Defendants. The Court disagrees. The Plaintiff's evidence of copyright infringement consisted of photographic and video evidence and circumstantial evidence. The Defendants published screen shots and YouTube videos of its product DocUnity/DocDNA, and these screen shots and videos demonstrated similarities to the Plaintiff's OptiDoc product. (Second Mischke Aff. ¶ 12.) The screen shots also demonstrated a software concept that ATS alone had developed. (
The Plaintiff also had circumstantial evidence of copyright infringement. Defendant Waldron had previously tried to sell OptiDoc source code to a third party (
The Defendants argue that because the Plaintiff failed to hire an expert to compare the source code of OptiDoc and DocUnity/DocDNA, the Plaintiff did not actually intend to prosecute its copyright claims, and simply intended to harass the Defendants. This argument is very speculative, and based upon the reasoning above, the Court finds that the Plaintiff pursued its copyright claim in good faith.
While a finding of bad faith is not necessary to award attorneys' fees and costs,
For the reasons set forth above, the Court DENIES the Defendants' Motion for Attorneys' Fees and Costs [Doc. 56].
SO ORDERED.