RIPPLE, Circuit Judge.
Seng-Tiong Ho and Yingyan Huang brought this action against Allen Taflove and Shi-Hui Chang in the United States District Court for the Northern District of Illinois. They alleged that the defendants, members of another research team at the same university, violated the Copyright Act by publishing equations, figures and text copied from the plaintiffs' work. The plaintiffs also raised several state law claims against the defendants based on the alleged copying. The defendants filed a motion for summary judgment and a motion to dismiss. The district court granted the defendants' motion for summary judgment as to all claims and therefore declined to address the motion to dismiss.
We conclude that the district court correctly granted summary judgment in favor of the defendants. Professor Ho and Ms. Huang fail to show a genuine dispute of
Professors Ho and Taflove are both engineering professors at Northwestern University, and, during the relevant period, Ms. Huang and Mr. Chang were engineering graduate students at Northwestern University.
Starting in 1997, Mr. Chang worked as a graduate student with Professor Ho. In 1998, Professor Ho conceived of and first formulated a "4-level 2-electron atomic model with Pauli Exclusion Principle for simulating the dynamics of active media in a photonic device (`the Model')." Appellants' Br. 4. It is not contested that the Model significantly advanced previous models. By 1999, Professor Ho had completed mathematical derivations of the Model, which comprised sixty-nine pages of notes and equations. The Model currently has no known commercial use.
Professor Ho then tasked Mr. Chang with creating a computer program code, using the derived equations, for the purpose of running Model simulations. The computer program code was based on an earlier program that Mr. Chang had helped create. Mr. Chang, however, was unsuccessful in this task because of programming errors.
In June 2002, Mr. Chang switched to Professor Taflove's research group. When Mr. Chang switched groups, he was warned by the head of the department not to continue any work previously done in Professor Ho's group and to avoid misappropriating Professor Ho's work. Mr. Chang returned several of Professor Ho's notebooks, but he failed to return an original copy of one of Professor Ho's notebooks previously issued to him in early 2002 to record his work.
Ms. Huang began to work for Professor Ho in September 2000. Until 2001, Ms. Huang's work focused on applying the Model to different mediums. With permission from Professor Ho, some results from the plaintiffs' research were mentioned briefly in a conference paper published in 2001
Professor Taflove and Mr. Chang submitted a symposium paper to the IEEE Antennas and Propagation Society ("APS paper") and an article to the journal Optics Express ("OE article"). These submissions described the Model and its applications: The APS paper provided a brief summary, and the OE article described the Model in detail. Some of the figures in Ms. Huang's master's thesis also were in-cluded
Professor Ho first became aware of the alleged wrong-doing in 2004, when he submitted his project for publication in Optics Communications, and it was rejected because of a previously published paper on the same topic, namely Professor Taflove and Mr. Chang's APS paper. In 2007, the plaintiffs received certificates of copyright in Professor Ho's 1998 and 1999 notebooks, Ms. Huang's master's thesis, two figures used within Ms. Huang's master's thesis and a visual presentation given by Ms. Huang that discussed the Model.
Professor Ho and Ms. Huang allege that Professor Taflove and Mr. Chang infringed upon their copyrights six times, by using the copyrighted materials without permission in the following documents, listed chronologically: (1) the APS paper; (2) Mr. Chang's Ph.D. thesis; (3) the OE article; (4) Professor Taflove and Mr. Chang's book chapter, published by Artech House in 2005; (5) Professor Taflove's presentation in 2006; and (6) Professor Taflove's presentation in 2007. "[T]he two main infringing documents" are the APS symposium paper and the OE article, as the other incidents of infringement involve parts of these two documents. Appellants' Br. 7.
Professor Ho and Ms. Huang assert that the OE article has twenty-one items copied from their work and that the APS symposium paper has twelve, creating thirty-three infringements in total. Professor Ho and Ms. Huang calculate that, from that list of copied items, fifty-five percent are text, thirty percent are equations and fifteen percent are figures.
Professor Ho and Ms. Huang brought this action against Professor Taflove and Mr. Chang, alleging copyright infringement and state law claims of false designation of origin, unfair competition, conversion, fraud and misappropriation of trade secrets. The district court granted summary judgment in favor of the defendants for all claims, see Ho v. Taflove, 696 F.Supp.2d 950 (N.D.Ill.2010), and subsequently denied the plaintiffs' motion for reconsideration, see R.139.
The district court addressed separately each of the plaintiffs' five claims. On appeal, Professor Ho and Ms. Huang challenge only the district court's summary judgment ruling on their claims of copyright infringement, conversion, fraud and trade secrets misappropriation. We therefore shall examine the district court's rulings only on those claims.
With respect to copyright infringement, the district court held that the equations, figures and text were "unprotectable concepts, ideas, methods, procedures, processes, systems, and/or discoveries" and that the merger doctrine is applicable because there are limited ways of mathematically expressing the Model. Ho, 696 F.Supp.2d at 954. The district court rejected the plaintiffs' analogy that, just as Mickey Mouse is a particular expression of a mouse, the Model is a creative expression of a scientific phenomenon. In the district court's view, Mickey Mouse is entirely fictitious, but the Model mimics reality. The district court remained unpersuaded by the plaintiffs' contention that "unique assumptions" indicate that the Model is fictional because the plaintiffs were unable to identify what unique assumptions existed. Id.
The district court also found insufficient evidence to support a claim of fraud: "By taking credit for plaintiffs' work, defendants may have misled publishers or readers as to proper authorship, but they clearly did not mislead plaintiffs." Id.
In the district court's view, no trade secrets misappropriation occurred because the Model was not kept secret. It reasoned that the Model was published by Professor Ho and Ms. Huang in 2001 and 2002. Moreover, a trade secret is not dependent on whether proper attribution is given in later publications.
In support of a trade secrets misappropriation claim, Professor Ho also had asserted that Professor Taflove and Mr. Chang's article and book chapter contained some materials from the notebooks that were not previously published. The district court, however, found this statement "unsupported" and "nebulous." Id. at 958. Thus, the assertion by Professor Ho was insufficient to support a claim of trade secrets misappropriation.
In the alternative, the district court found all the state law claims preempted by the Copyright Act. The court noted that preemption can apply even when the allegedly copied material is not subject to protection under the Copyright Act. Otherwise, the district court noted, the state could give copyright-like protection to material that Congress had decided not to protect by copyright. Accordingly, the district court granted summary judgment in favor of Professor Taflove and Mr. Chang for all claims.
Following the court's ruling, the plaintiffs filed a motion for reconsideration. Although the filing was labeled as a Rule 60(b) motion, see Fed.R.Civ.P. 60(b),
The district court denied the motion for reconsideration. Regarding the copyright infringement claim, the district court ruled that the plaintiffs improperly introduced new arguments in their motion and relied on previously available authority. The district court refused to consider these additional materials and found that the plaintiffs' remaining arguments were duplicative of those that already had been raised and rejected.
Regarding the conversion claim, the district court would not consider the "new" evidence proffered by the plaintiffs to show conversion of tangible and intangible property; these items had not been mentioned in the summary judgment briefing nor had they been included in the prior evidentiary submission. Additionally, Professor Ho had stated, in his deposition, that no items had been physically taken from him. The district court also observed no error in its alternative holding that the Copyright Act preempted the conversion claim.
Professor Ho and Ms. Huang timely appealed the district court's decision.
Professor Ho and Ms. Huang submit that the district court erred in granting summary judgment on their claims of copyright infringement, conversion, fraud and trade secrets misappropriation and also that it erred in denying their motion for reconsideration.
"We review a grant of summary judgment de novo, construing all facts in the light most favorable" to Professor Ho and Ms. Huang and "drawing all reasonable inferences in [their] favor." Ogden v. Atterholt, 606 F.3d 355, 358 (7th Cir.2010). Summary judgment is appropriate "if the movant shows that there is no genuine dispute as to any material fact." Fed. R.Civ.P. 56(a).
The party moving for summary judgment "always bears the initial responsibility" of showing "the absence of a genuine issue of material fact." Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Once "a properly supported motion for summary judgment is made," the nonmoving party bears the burden to "set forth specific facts showing that there is a genuine issue for trial." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986) (internal quotation marks and citation omitted). Notably, any party asserting that a fact is or is not genuinely disputed must cite "to particular parts of materials in the record," or show that "an adverse party cannot produce admissible evidence to support the fact." Fed. R.Civ.P. 56(c)(1). Thus, "a party opposing
Professor Ho and Ms. Huang challenge the district court's grant of summary judgment in favor of the defendant on their copyright infringement, conversion, fraud and trade secrets misappropriation claims. We address each claim in turn.
In granting summary judgment, the district court accepted Professor Taflove and Mr. Chang's view that the allegedly copied materials were not protected by the Copyright Act because the Model is an idea. Specifically, according to the defendants, the Model is "a new mathematical model of how electrons behave under certain circumstances." R.81 at 7. Moreover, the equation, figures and text are the only ways to express this idea, and so, under the merger doctrine, these expressions are not copyrightable.
Professor Ho and Ms. Huang counter, in their response to the summary judgment motion and now on appeal, that the nature of the Model is fictitious because it describes reality under hypothetical conditions; accordingly, all of the Model's expressions are protected. In their summary judgment filings, however, they failed to address whether the equations, figures and text are the only possible expressions of the Model.
Protection under the Copyright Act is subject to statutory exceptions. Section 102(b) of the Copyright Act provides that:
17 U.S.C. § 102(b). We have described § 102(b) of the Copyright Act as codifying a "fact-expression dichotomy." American Dental Ass'n v. Delta Dental Plans Ass'n, 126 F.3d 977, 981 (7th Cir.1997). In essence, "the Copyright Act protects the expression of ideas, but exempts the ideas themselves from protection." Wildlife Express Corp. v. Carol Wright Sales, Inc., 18 F.3d 502, 507 (7th Cir.1994). This limitation on copyright protection promotes the purpose of the Copyright Act by assuring "authors the right to their original expression," but also by "encourag[ing] others to build freely upon the ideas and information conveyed by a work." Feist Publ'ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 349-50, 111 S.Ct. 1282, 113 L.Ed.2d 358 (1991); see also Wildlife Express Corp., 18 F.3d at 507; Erickson v. Trinity Theatre, Inc., 13 F.3d 1061, 1069 (7th Cir.1994). Under the merger doctrine, when "there is only one feasible way of expressing an idea, so that if the expression were copyrightable it would mean that the idea was copyrightable," the expression is not protected. Bucklew v. Hawkins, Ash, Baptie & Co., LLP, 329 F.3d 923, 928 (7th Cir.2003). Thus, even though an individual can have a valid copyright in a document, facts and ideas contained in the document are not subject to copyright. See American Dental Ass'n, 126 F.3d at 979.
We have recognized that the Court's explanation in Baker is reflected in § 102(b) of the Copyright Act. See American Dental Ass'n, 126 F.3d at 981.
Although the line between an expression and an idea can be difficult to determine at times,
Professor Ho and Ms. Huang rely on two cases that are not relevant to this appeal because they involve alleged copying of the creative presentation, not the substance, of facts or ideas. In Flick-Reedy Corp. v. Hydro-Line Manufacturing Co., 351 F.2d 546, 548 (7th Cir.1965), the plaintiff claimed that the defendant had copied the "expression and presentation of the computations, formulae and explanations." We concluded that the "arrangement, expression and manner of presentation" of the mathematical data could be protected by copyright, even if the equations and formulae themselves were in the public domain. Id. Specifically, we commented on the coloring, wording and location of titles and type of shading used by the parties. In short, the issue in Flick-Reedy centered around the creative arrangement, expression and manner of presentation, and we were not concerned with whether the substance of the mathematical data was copyrightable.
Similarly, in Situation Management Systems, Inc. v. ASP Consulting LLC, 560 F.3d 53 (1st Cir.2009), our colleagues in the First Circuit concluded that materials used to train employees in communication and negotiation skills were subject to the Copyright Act as expressions of a process or system. The court observed that the plaintiff made "creative choices in describing those processes and systems, including the works' overall arrangement and structure." Id. at 61.
In this case, by contrast, Professor Ho and Ms. Huang do not contend that the defendants appropriated their creative presentation of the Model through copying such aspects as the color or font employed by the plaintiffs. Rather, the plaintiffs contend that the defendants copied the substance of the equations, figures and text. See R.82, Ex. D (Huang Dep.) at 265-67 (Ms. Huang affirming that the copying of the substance of the Model, not its presentation, was what mattered). Unlike the plaintiffs in Flick-Reedy and Situation Management Systems, Inc., Professor Ho and Ms. Huang claim a copyright interest in the substance—not presentation—of the equations, figures and text.
On appeal, Professor Ho and Ms. Huang maintain that there are numerous ways to express the Model and therefore that, as a consequence, the merger doctrine does not apply. The plaintiffs, however, failed to support sufficiently this argument before the district court in their summary judgment filings. In their summary judgment papers, the plaintiffs offered no evidence of how the Model could be expressed through other equations or figures. Equations and figures are common components of mathematical science used to depict ideas. Although equations can be rearranged through the laws of mathematics, the substance of the equation nevertheless remains the same. Without any evidence that the Model could be expressed by equations and figures other than those used by the plaintiffs, we conclude that these equations and figures are "required by" the Model, see Wildlife Express Corp., 18 F.3d at 508 (emphasis in original), and as such, are not subject to copyright.
Whether text, as opposed to equations and figures, is required by the Model or has other possible expressions is a more difficult question. We have recognized that text describing scientific ideas may be subject to copyright. See American Dental Ass'n, 126 F.3d at 979 ("Einstein's articles laying out the special and general theories of relativity were original works
Thus, in their summary judgment motions, the plaintiffs failed to show that the text at issue is one of many possible expressions. Based on the nature of the Model and the plaintiffs' failure to raise arguments adequately and to provide specific evidence in their summary judgment filings, the district court did not err in concluding that the equations, figures and text were not subject to copyright.
Professor Ho and Ms. Huang also seek review of the district court's disposition of three state law claims for conversion, fraud and trade secrets misappropriation. The district court held that all of the plaintiffs' state law claims are preempted under the Copyright Act, and in the alternative, that each state law claim fails on the merits. We shall consider first the extent to which the Copyright Act preempts the plaintiffs' state law claims; we then shall examine the merits of any state law claim not preempted by the Copyright Act.
We review de novo whether the Copyright Act preempts any of the plaintiffs' state law claims. See Toney v. L'Oreal USA, Inc., 406 F.3d 905, 907-08 (7th Cir.2005). The Copyright Act preempts "all legal and equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright as specified by section 106" and are "in a tangible medium of expression and come within the subject matter of copyright as specified by sections 102 and 103." 17 U.S.C. § 301(a). We have distilled from the language of § 301 two elements: "First, the work in which the right is asserted must be fixed in tangible form and come within the subject matter of copyright as specified in § 102. Second, the right must be equivalent to any of the rights specified in § 106." Baltimore Orioles, Inc. v. Major League Baseball Players Ass'n, 805 F.2d 663, 674 (7th Cir.1986).
Regarding the first element, we note that the material in which the plaintiffs assert rights—the Model and its manifestations in equations, figures and text—are expressions in a tangible form. These
The second element for preemption is that the rights in the state law claims be equivalent to the exclusive rights under the Copyright Act. We summarized the rights of a copyright owner, detailed in § 106 of the Copyright Act, to be "reproduction, adaptation, publication, performance, and display" of the copyrighted work. Toney, 406 F.3d at 909. A well-respected treatise has elaborated on this concept along the same lines, noting that equivalent rights exist "if under state law the act of reproduction, performance, distribution, or display, no matter whether the law includes all such acts or only some, will in itself infringe the state-created right." 1 Melville B. Nimmer & David Nimmer, Nimmer on Copyright § 1.01[B][1] (2010) (emphasis in original). "[T]o avoid preemption, a state law must regulate conduct that is qualitatively distinguishable from that governed by federal copyright law—i.e., conduct other than reproduction, adaptation, publication, performance, and display." Toney, 406 F.3d at 910.
We have concluded that the material in dispute—the equations, figures and text—are not copyrightable. However, the Copyright Act can preempt state law even when the rights are claimed in uncopyrighted or uncopyrightable materials. We accepted this possibility in Baltimore Orioles, Inc. v. Major League Baseball Players Association, 805 F.2d 663, 676 (7th Cir.1986), when we determined that preemption applied even though the rights were asserted in work that was uncopyrightable. Again, in Toney, we noted that "state laws that intrude on the domain of copyright are preempted even if the particular expression is neither copyrighted nor copyrightable." 406 F.3d at 911. In the Copyright Act, Congress sought to ensure that a state will not provide "copyright-like protections in materials" that should remain uncopyrighted or uncopyrightable. Id.
In their motion for summary judgment, the defendants assert that all of the plaintiffs' state law claims are "alternative legal theories for recovery" based on the alleged copying, R.81 at 13, and the defendants cite extensively to the plaintiffs' complaint as evidence. We consider separately whether each state law claim challenged on appeal is based on a right equivalent to those under the Copyright Act.
The complaint, with respect to conversion, states that the "Defendants misappropriated the works by publishing said works and texts . . . and Defendants passed off said works and text as their own without giving credit to Plaintiffs." R.1 at 14 (emphasis added). In their response to the summary judgment motion, the plaintiffs elaborate that "[b]y passing off the works as their own in numerous scientific publications, Defendants wrongfully
The plaintiffs rely on Bilut v. Northwestern University, 296 Ill.App.3d 42, 230 Ill.Dec. 161, 692 N.E.2d 1327 (1998), as support for their contention that a conversion claim is not preempted by the Copyright Act. We cannot accept this argument. In Bilut, the plaintiff alleged "loss of physical control over her research project," id., 230 Ill.Dec. 161, 692 N.E.2d at 1335, claiming that her professor "usurped" her ideas and then prohibited her from conducting a study, id., 230 Ill.Dec. 161, 692 N.E.2d at 1333. The plaintiff's claim of conversion in Bilut went beyond the publication of an idea. In this case, however, the plaintiffs have alleged conversion based solely on the defendants' publishing the information without attribution. The present case is much more like the situation that confronted our colleagues in the Fourth Circuit in United States ex. rel Berge v. Board of Trustees of the University of Alabama, 104 F.3d 1453 (4th Cir.1997). There, the court held that a claim of conversion was preempted because a "charge of plagiarism and lack of attribution can only amount to, indeed, are tantamount to, a claim of copyright infringement, for [the plaintiff] has certainly not been prevented from using her own ideas and methods." Id. at 1464.
On appeal, Professor Ho and Ms. Huang also rest their conversion claim on Mr. Chang's failure to return Professor Ho's 2002 notebook. Yet, the plaintiffs failed to raise sufficiently this argument in their summary judgment papers. In their response to the summary judgment motion, the plaintiffs simply made a general assertion that tangible property was taken without permission, followed by a citation to their statement of additional facts. The statement of additional facts, however, does not identify what tangible property was taken without permission and makes no mention of the 2002 notebook in particular. It was incumbent on the plaintiffs to identify with particularity the factual basis for their claim. See Anderson, 477 U.S. at 250, 106 S.Ct. 2505. They failed to do so. We therefore must conclude that, based on the plaintiffs' summary judgment filings, the rights asserted in the conversion claim concerned the misappropriation of their work through publication, which is equivalent to the right to control publication under the Copyright Act.
As a general proposition, a claim of common law fraud is not preempted by the Copyright Act "so long as the causes of action concerning them contain elements that are different from copyright infringement." Allied Artists Pictures Corp. v. Rhodes, 496 F.Supp. 408, 444 (S.D.Ohio 1980), aff'd in part, remanded in part, 679 F.2d 656 (6th Cir.1982); see also Valente-Kritzer Video v. Pinckney, 881 F.2d 772, 776 (9th Cir.1989). A claim of fraud can be, however, a "disguised copyright infringement claim," if the sole basis of the fraud claim is that a defendant represented materials as his own. Nimmer & Nimmer, supra, § 1.01[B][1][e].
Here, the complaint alleges that the defendants knowingly published material taken from the plaintiffs and that defendants "fraudulently represented" that they were the originators of the work. R.1 at 14. Additionally, in their response to the summary judgment motion, the plaintiffs asserted that "Defendants have,
In their complaint, Professor Ho and Ms. Huang allege that the "Defendants misappropriated Plaintiffs' trade secrets." R.1 at 15. In their response to summary judgment, they note that they "took steps to keep their works secret." R.91 at 13.
Under Illinois law, the definition of a trade secret requires that the information "is sufficiently secret to derive economic value" and is subject to efforts "to maintain its secrecy or confidentiality." 765 ILCS 1065/2(d). A trade secret misappropriation involves the acquisition of a trade secret through improper means, which requires the breach of a confidential relationship or other duty to maintain secrecy. See 765 ILCS 1065/2(a), (b). A claim of trade secret misappropriation, then, requires that the information have a status of secrecy and that a confidential relationship be breached. Both of these elements go beyond the rights regulated under the Copyright Act.
Turning to the merits of the trade secrets misappropriation claim, the plaintiffs have failed to show a genuine dispute of material fact that, if resolved, would establish misappropriation of trade secrets. Illinois law provides the following definition of "trade secret":
765 ILCS 1065/2.
In their response to the summary judgment motion, Professor Ho and Ms. Huang maintained that they had a valid trade secrets misappropriation claim because the expressions of the Model had "`actual or potential' economic value" and because "they took steps to keep their works secret." R.y1 at 13.
We need not decide whether the expressions of the Model had economic value because the plaintiffs did not show, in their summary judgment papers, that the expressions of the Model had the status of secrecy. Professor Ho and Ms. Huang concede that "Professor Ho's research results were partially published in a conference paper in 2001 and then published in more detail in 2002" in Ms. Huang's master's thesis. R.92 at 15.
The plaintiffs, nevertheless, offer two reasons why the Model had the status of secrecy; both of these contentions fail. The plaintiffs first submit that "it is expected that anyone reading that thesis and using the Model would at least cite the thesis as the source of the expression of the Model." R.91 at 13-14. Such an expectation of attribution, however, is not part of a trade secrets misappropriation claim. Once the possessor of information intentionally releases that information, the possessor can no longer make a successful trade secrets misappropriation claim because the information is not subject to reasonable efforts to maintain secrecy.
Professor Ho and Ms. Huang also contend that the defendants used "materials from Ho's copyrighted notebook that were
Because the plaintiffs fail to show that the expressions of the Model have a status of secrecy, their trade secrets misappropriation claim cannot survive summary judgment on the merits.
We review a district court's denial of a motion for reconsideration for abuse of discretion. Reger Dev., LLC v. Nat'l City Bank, 592 F.3d 759, 763 (7th Cir. 2010).
The plaintiffs submit that the district court abused its discretion because it failed to consider the additional evidence they provided at this stage of the proceedings, including support for their assertion that there are many different ways to express the Model whether as sentences, paragraphs or even full articles. The defendants reply that the district court properly denied the plaintiffs' motion for reconsideration because the motion failed to explain what copying occurred and why it was actionable. Additionally, the defendants note that the plaintiffs did not show that the additional evidence previously was unavailable.
Federal Rule of Civil Procedure 59(e)
We conclude that the district court properly granted summary judgment on all claims in favor of Professor Taflove and Mr. Chang and that the district court did not abuse its discretion in denying Professor Ho and Ms. Huang's motion for reconsideration. Accordingly, its judgment is affirmed.
AFFIRMED
Fed.R.Civ.P. 60(b).
The plaintiffs' motion for reconsideration states that it is brought under Rule 60(b). A motion under Rule 60(b) seeks relief from a judgment. The plaintiffs' motion, however, reiterates that it seeks "reconsideration" from the district court in part because of errors of law. An error of law is a basis for altering or amending the judgment under Rule 59(e), but it is not explicitly recognized as a basis for relief under Rule 60(b). See Obriecht v. Raemisch, 517 F.3d 489, 493-94 (7th Cir. 2008). The plaintiffs also filed their motion for reconsideration within the time allowed under Rule 59(e). Accordingly, we agree with the district court that the substance of the motion reveals that it is a Rule 59(e) motion to alter or amend a judgment. On appeal, neither party contests the characterization of the motion as a motion under Rule 59(e).
1 Melville B. Nimmer & David Nimmer, Nimmer on Copyright § 1.01[B][1][e] (2010); see also R.W. Beck, Inc., 577 F.3d at 1148 (quoting Nimmer on Copyright).