LORETTA A. PRESKA, Chief Judge.
Plaintiff Muench Photography, Inc. ("MPI" or "Plaintiff") brings this action pursuant to 17 U.S.C. § 501 et seq. (the "Copyright Act") against Defendants Houghton Mifflin Harcourt Publishing Company ("HMH") and R.R. Donnelly & Sons Company ("Donnelly," and together with HMH, "Defendants") alleging that Defendants engaged in the unauthorized and impermissible use of Plaintiff's images. Defendants now move to dismiss the Complaint for failure to state a cause of action pursuant to Fed.R.Civ.P. 12(b)(6) arguing that the photographs at issue were not properly registered with the Copyright Office. By Order dated April 12, 2010 the Court converted Defendants' motion to dismiss into one for summary judgment pursuant to Fed.R.Civ.P. 12(d). For the reasons set forth herein, Defendants' motion is GRANTED in part and DENIED in part.
MPI engages in the business of licensing photographs on behalf of photographers Marc and David Muench. (Complaint ("Compl.") ¶ 2.) HMH
Beginning in March 2001 and continuing through December 2006, MPI, through its agent Corbis Corporation ("Corbis"), a privately held photography stock licensing agency (id. ¶ 2), sold HMH limited licenses to copy and to distribute approximately 180 of MPI's images ("the Images") (id. ¶ 11; Ex. A). MPI alleges that HMH exceeded the scope and terms of those licenses, causing unauthorized reproductions of the Images to be made and distributed. (Id.)
MPI alleges that by exceeding the number of licenses granted to HMH, HMH's unauthorized reproduction and distribution of the Images constituted copyright infringement. (Id. ¶¶ 16-17.) Moreover, MPI claims that Donnelly violated the Copyright Act by printing the textbooks in suit. (Id. ¶ 23.)
On September 30, 1997, Photographers Marc Muench and David Muench, creators and owners of the Images, executed a Copyright Registration Agreement with Corbis. (See Declaration of Kenneth A. Plevan ("Plevan Decl."), Exs. 7, 8.) The agreements "grant[ ] to [Corbis] legal title in [Marc and David Muench's] images selected and digitized by Corbis and included in the Corbis digital collection [ ]
(Id.) Corbis registered several automated databases of photographs, including the Images, with the Copyright Office on November 6, 1997 (Registration Nos. VA 863-783 and VA 863-785, Pl. Mem., Exs. 1, 2), January 14, 1999 (Registration No. VA 1-038-658, Pl. Mem., Ex. 3), March 16, 2001 (Registration No. VA 1-115-519, Pl. Mem., Ex. 4), August 28, 2006 (Registration No. VA 1-371-165, Pl. Mem., Ex. 5), and August 29, 2006 (Registration No. VA 1-378-558, Pl. Mem., Ex. 6).
In an effort to ensure the validity of the copyright registration procedure utilized by Corbis, Nancy Wolff, counsel to the Picture Agency Council of America, Inc. ("PACA"), a photographer trade association, wrote a letter dated January 29, 2002 to Marybeth Peters, Register of Copyrights. Nanette Petruzzelli, the Copyright Office's Chief of the Examining Division, replied to Ms. Wolff's inquiry on February 12, 2002. (See Pl. Mem., Ex. 9 § Declaration of Nancy E. Wolff ("Wolff Decl.") at Ex. 2 ("Petruzzelli Letter").) Ms. Petruzzelli confirmed that the Copyright Office considers the copyright claim
(Id. at 1-2.) In the letter, though, Ms. Petruzzelli stated that the Copyright Office preferred, but did not require, the registration application to contain the names of all of the photographers on continuation sheets. (Id. at 2.) She analogized the registration process to that of serial works (e.g., magazines, periodicals, etc.) which do not require the listing of the names of individual contributors where "all rights have been transferred in writing to the claimant of the entire serial issue." (Id.)
Section 411 of the Copyright Act provides that "no civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration of the copyright claim has been made in accordance with this title." 17 U.S.C. § 411(a). At the time Plaintiff filed the Complaint, the controlling law in the Second Circuit provided that the registration of a copyright was a jurisdictional requirement and a pre-requisite to filing a copyright infringement action. See In re Literary Works in Elec. Databases Copyright Litig., 509 F.3d 116, 121-22 (2d Cir. 2007), rev'd, Reed Elsevier, Inc. v. Muchnick, ___ U.S. ___, 130 S.Ct. 1237, 176 L.Ed.2d 17 (2010). Therefore, Defendants'
In light of the Supreme Court's decision, Defendants withdrew their original motion and re-filed pursuant to Fed.R.Civ.P. 12(b)(6) [dkt. no. 29]. However, in order to prove whether Corbis' registration of the automated databases covered Plaintiff's images, the parties attached documents and other materials to their briefs that were not referenced in the Complaint. Accordingly, by Order dated April 12, 2010 [dkt. no. 37], the Court notified the parties that it was converting Defendants' motion to dismiss into one for summary judgment so that it could properly consider all of the parties' exhibits.
Defendants are entitled to summary judgment only "if the pleadings, depositions, answers to interrogatories, and the admissions on file, together with the affidavits, if any. show that there is no genuine issue as to any material fact and that [Defendants are] entitled to judgment as a matter of law." Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (quoting Fed.R.Civ.P. 56(c)). A fact is material if it "might affect the outcome of the suit under the governing law." Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A dispute is genuine if "the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id.; see also Overton v. New York State Div. of Military and Naval Affairs, 373 F.3d 83, 89 (2d Cir.2004).
In assessing whether summary judgment is proper, the Court construes the evidence in the light most favorable to the non-moving party. Lucente v. IBM Corp., 310 F.3d 243, 253 (2d Cir.2002). Here, Defendants bear the initial burden of providing the basis for the motion and of identifying the evidentiary materials, if any, supporting their position. See Grady v. Affiliated Cent., Inc., 130 F.3d 553, 559 (2d Cir.1997). Plaintiff must then "come forward with specific facts showing that there is a genuine issue for trial." Matsushita Elec. Indus. Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 587, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986) (quoting Fed. R.Civ.P. 56(e)). Mere speculation and conjecture will not suffice. See Niagara Mohawk Power Corp. v. Jones Chem. Inc., 315 F.3d 171, 175 (2d Cir.2003).
Pursuant to the Copyright Act, an application for copyright registration shall include information about the copyright claimant, the particular work, and the author of the work. Specifically, the application must include "the name and nationality or domicile of the author or authors
Section 202.3 of Title 37 of the Code of Federal Regulations "prescribes conditions for the registration of copyright...." 37 C.F.R. § 202.3(a)(1). Here, MPI focuses on § 202.3(a)(3) which classifies a copyright claimant as either the "author of the work" or "a person or organization that has obtained ownership of all rights under the copyright initially belonging to the author." Id. §§ 202.3(a)(3)(i), (ii).
As a preliminary matter, it is necessary to determine what weight, if any, should be given to the Copyright Office's interpretation of the Copyright Act. Here, the parties (including the Copyright Office itself)
In determining the question of deference, the Court is guided by the twostep analysis set forth in Chevron U.S.A., Inc. v. Natural Res. Def. Council, Inc., 467 U.S. 837, 104 S.Ct. 2778, 81 L.Ed.2d 694 (1984). See G & T Terminal Packaging Co. v. U.S. Dep't of Agric., 468 F.3d 86, 95 (2d Cir.2006) ("It is firmly established that we review under the Chevron standard an agency's binding and generally applicable interpretation of a statute that it is charged with administering when that interpretation is adopted in the course of a formal adjudicatory proceeding." (citing United States v. Mead Corp., 533 U.S. 218, 230 n. 12, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001))); see also Freeman v. Burlington Broadcasters, Inc., 204 F.3d 311, 322 (2d Cir.2000) ("An agency's interpretation of an ambiguous statute it is charged with
Congress explicitly authorized the Register of Copyrights to create regulations detailing certain registration procedures. See 17 U.S.C. § 408(c). Those regulations, codified at 37 C.F.R. § 202.3, are entitled to Chevron deference. Where an agency's interpretation is not entitled to Chevron deference, however, "an agency's interpretation may merit some deference whatever its form, given the `specialized experience and broader investigations and information' available to the agency." Mead, 533 U.S. at 234, 121 S.Ct. 2164 (quoting Skidmore v. Swift & Co., 323 U.S. 134, 139, 65 S.Ct. 161, 89 L.Ed. 124 (1944)). The Copyright Office's Circulars and Compendium II should be afforded this lesser deference, or Skidmore deference, so long as the Copyright Office's interpretations do not conflict with the express statutory language of the Copyright Act. See, e.g., Morris v. Bus. Concepts, Inc., 283 F.3d 502, 505-06 (2d Cir.2002) (finding the Copyright Office's interpretation as set forth in the Circular for Copyright Registration on Form SE "persuasive" as to whether a copyright claimant's registration of a collective work covers the constituent works).
Here, as the Court of Appeals did in Morris, the Court will defer to the Copyright Office's interpretation of the Copyright Act (and the regulations) as set forth in the Circular for Copyright Registration for Automated Databases ("Circular 65"). Compare 37 C.F.R. § 202.3(b)(5)(ii) ("An application for group registration of automated databases ... shall consist of: (A) A Form TX ... (B) The appropriate filing fee ... (C) The deposit ....") with Circular 65 at 4-5 ("To make a single group registration for an automated database ... send the following items [to the Copyright Office]: a nonrefundable filing fee ... a deposit representative of the updates/revisions being registered [and] a Form TX completed according to the instructions below."). However, the Court will not defer to the
The Court is faced with the novel question of whether the registration of an automated database—here, a compilation of photographs by different photographers—by a third-party copyright claimant that has been assigned the rights to the individual works for the purposes of copyright registration registers the individual works thereby permitting the individual photographers to sue for copyright infringement.
Defendants maintain that the registration process followed by MPI and Corbis does not comply with the statutory requirements of § 409(2) of the Copyright Act, which mandate that every application for registration shall include the names of the author(s) of the work(s). MPI counters by arguing that the registration process it followed here comported not only with the Code of Federal Regulations (see 37 C.F.R. § 202.3(a)(3)) but also with the procedure set forth in the Petruzzelli Letter. (See Petruzzelli Letter at 2 ("[R]egistration application submitted for a work created by a large number of authors is considered acceptable if it names at least three of those authors followed by a statement such as `and (number) others'.") (internal quotation marks omitted).)
In making its case that the database registrations cover the individual images, MPI relies primarily on case law and asks the Court to look beyond the plain language of the Copyright Act. To begin, MPI relies principally on the Arizona district court's holding in Bean v. McDougal Littell et al., 669 F.Supp.2d 1031 (D.Ariz. 2008). In Bean, the court was faced with a lawsuit almost identical to the instant action. The Bean plaintiffs were photographers who, like MPI, had transferred legal title in their photographs to Corbis to file copyright registrations (the same copyright registrations at issue here). In Bean, however, the defendants failed to argue that the copyright registrations did not comply with § 409; instead, the defendants' argument tracked the Second Circuit Court of Appeals' ruling in Morris v. Bus. Concepts Inc., 283 F.3d 502 (2d Cir. 2002), an analogous case concerning whether the copyright registration of a magazine reached the contributions of the individual authors. Therefore, in order for the Court to distinguish Bean, it becomes necessary to explain why it was erroneous for the Bean court to rely on the Morris court's decision.
In Morris, the Court of Appeals addressed the issue of whether the copyright
Relying on Morris, the defendants in Bean sought to dismiss the action on the basis that the transfer of the plaintiff photographers' rights in the photo-graphs to Corbis was deficient because it transferred only legal title instead of all of their rights. See Bean, 669 F.Supp.2d at 1032-33. Citing to both Morris and the Code of Federal Regulations, the Bean court disagreed with the defendants and found that the photographers made a valid transfer of their rights in the photographs and were thereby entitled to bring a claim for copyright infringement. Id. at 1035-36; see 37 C.F.R. § 202.3(a)(3)(ii) n. 1 (defining a copyright claimant as a "person or organization that has obtained, from the author or from an entity that has obtained ownership of all rights under the copyright initially belonging to the author, the contractual right to claim legal title to the copyright in an application for copyright registration"). However, in arriving at its decision, the Bean court never explained why the registration of an automated database should be governed by the same rules that apply to the registration of serials. For this reason, the Court declines to follow the Bean court's reasoning and finds that automated databases and serials are separate forms of copyrightable works and are thus subject to separate copyright regulations.
Although both serials and automated databases are considered collective works,
A plain reading of § 409 of the Copyright Act mandates that the copyright registrations at issue here contain the names of all the authors of the work. See 17 U.S.C. § 409(2). MPI believes that such a "hypertechnical reading of the Copyright Act" conflicts with the lenient approach that courts should take with respect to copyright registrations, especially in the post-Berne Convention era. (Pl. Mem. at 19.) MPI, though, is not asking the Court to interpret the statute broadly; rather, it is asking the Court flatly to ignore the requirement that the authors' names be listed on the copyright registration form. MPI's request goes a bridge too far.
A "Court's interpretive function requires it to identify and give effect to the best reading of the words in the provision at issue. Even if the proper interpretation of a statute upholds a `very bad policy,' it `is not within [a court's] province to second-guess' the `wisdom of Congress' action' by picking and choosing [the court's] preferred interpretation from among a range of potentially plausible, but likely inaccurate, interpretations of a statute." Harbison v. Bell, ___ U.S. ___, 129 S.Ct. 1481, 1493-94, 173 L.Ed.2d 347 (2009) (quoting Eldred v. Ashcroft, 537 U.S. 186, 222, 123 S.Ct. 769, 154 L.Ed.2d 683 (2003)); see also TVA v. Hill, 437 U.S. 153, 194, 98 S.Ct. 2279, 57 L.Ed.2d 117 (1978) ("Our individual appraisal of the wisdom or unwisdom of a particular course consciously selected by the Congress is to be put aside in the process of interpreting a statute."). The Court's "task is to apply the text, not to improve upon it." Pavelic & LeFlore v. Marvel Entm't Group, Div. of Cadence Indus. Corp., 493 U.S. 120, 126, 110 S.Ct. 456, 107 L.Ed.2d 438 (1989). And where, as here, the Court finds the terms of the statute to be "unambiguous, judicial inquiry is complete." Rubin v.
The Court is not persuaded by MPI's "doomsday scenario": that by granting Defendants' motion, millions of copyright registrations will be voided. Nothing could be further from the truth. Because Corbis is the author of the compilation the registration of the compilation remains valid. The individual works, however, are not registered. As was the case with the plaintiff in Morris, nothing in this decision prevents MPI from registering the photographs immediately. If MPI does so, it "will be able to collect statutory damages against future infringers." Morris v. Bus. Concepts, Inc., 259 F.3d 65, 73 (2d Cir. 2001).
In addition, because the registration is valid as to the compilation, MPI's argument that the "innocent error rule" should apply to save the registration as to the individual photographs is also rejected. The "innocent error rule" operates to save a copyright registration that suffers from some technical defect such as a misspelling or accidental omission of information. See eScholar, LLC v. Otis Educ. Sys., Inc., No. 04 Civ. 4051, 2005 WL 2977569, at *12 (S.D.N.Y. Nov. 3, 2005). However, in the analogous case of Morris, the Court of
Appeals rejected such a defense finding that
Morris, 259 F.3d at 72. The same reasoning applies here, and thus, MPI's innocenterror-rule defense is rejected.
The Court's ruling, although a seemingly harsh result for MPI, is guided by the clear language of the Copyright Act. The Court does not fault MPI for its failed efforts to comply with the registration process. Indeed, from the record presented to the Court, it appears MPI's actions were completely appropriate—it sought the approval of the Copyright Office to ensure compliance with the statute. Unfortunately, MPI received poor advice and is now deprived, at least at this juncture, of the ability to seek statutory damages with respect to the Images not registered by MPI. The fault in this case lies solely with the Copyright Office and its relaxed interpretation of the statute.
For the foregoing reasons, Defendants' motion for summary judgment [dkt. no. 32] is GRANTED in part and DENIED in part. Defendants' motion is granted with respect to all of the Images except those Images registered by David Muench in January 1996.
SO ORDERED.