WAVERLY D. CRENSHAW, Jr., Chief District Judge.
TC Reiner brought this action against Ryon Nishimori and the Trustees of Watkins Institute ("Watkins") asserting multiple claims arising from alleged copyright infringements. (Doc. No. 1.) Before the Court is Defendants' Motion for Summary Judgment. (Doc. No. 47.) For the following reasons, Defendants' motion is
Reiner raises five objections to Defendants' Statement of Undisputed Facts: (1) Watkins' interrogatory responses are inadmissible because they were not made on personal knowledge; (2) Nishimori's unverified interrogatory responses are inadmissible because they were not made under oath or on personal knowledge; (3) Jeffery Sedlik's Preliminary Report is inadmissible because it was not made under oath; (4) Defendants' expert opinions are inadmissible because they do not comply with the Federal Rules of Civil Procedure and Evidence; and (5) Kai Chiang's testimony should be disregarded because Defendants did not timely disclose him as a witness. (Doc. No. 54 at 5-11.)
An interrogatory must "be answered separately and fully in writing under oath." FED. R. CIV. P. 33(b)(3). As to Watkins, interrogatories served on it must be answered by an authorized agent "who must furnish the information available to" Watkins.
Reiner's first objection to Watkins' supplemental interrogatory answers is overruled. Reiner provides no evidence that the responses were not made by an agent furnishing information available to Watkins. Indeed, Watkins' interrogatory answers fully comply with Federal Rule of Civil Procedure 33(b)(3) because they appear to be signed by an agent authorized to do so and there is no evidence to the contrary. (Doc. No. 47-12 at 14.) Therefore, Watkins' interrogatory answers will be considered at summary judgment.
Reiner's second objection to Nishimori's supplemental interrogatory responses is sustained. Nishimori's unsworn interrogatory answers do not include the "statutorily-required affirmation" and will not be considered at the summary judgment stage.
Reiner's third objection is sustained. To be admissible at the summary judgment stage, an expert must swear under oath that everything contained in his or her report is true and correct.
Reiner's fourth objection is overruled as moot. The Court already excluded Sedlik's report based on the third objection.
Reiner's fifth objection is also overruled as moot. As explained in Section III, even with Chiang's testimony, the Court finds a disputed issue of material fact on the authenticity of the independent contractor agreement. As such, Chiang's testimony is not critical to any issue of material fact.
In 1997, Reiner entered into an independent contractor agreement with SuperStock, Inc. (Doc. No. 56 at 1.) In 1997, photographers who signed independent contractor agreements with SuperStock generally assigned all copyrights for photographs taken under the agreement to SuperStock in exchange for expenses and a fee. (
There is a dispute as to the contents of the Agreement that both parties signed. Each party submitted a different copy of the signed Agreement. (Doc. Nos. 47-2, 57-1.) Defendants' submission is signed by both parties, with Reiner's signature appearing twice and parts of the Agreement appearing to have been copied over in other sections. (Doc. No. 47-2.) Reiner submitted a copy of the Agreement that only he signed, in which he crossed out the entire paragraph that required "the photographs produced under the agreement become the sole property of SuperStock, and all rights, including the copyright, are hereby assigned to SuperStock." (Doc. No. 57-1.) There are other handwritten sections in Reiner's submission that are also included in Defendants' submission. (Doc. Nos. 47-2 and 57-1.) Reiner does not remember signing the Agreement twice, and does not confidently recognize at least one of the signatures on Defendants' submission purported to be his signature. (Doc. No. 56 at 4.)
Nevertheless, the parties agree that the Agreement contained the following provisions: an effective date of January 16, 1997; a term of one month from February 3, 1997, to March 3, 1997; an obligation of SuperStock to pay Reiner $3,000 and ten percent of sales of photographs taken under the Agreement; an agreement by SuperStock to provide Reiner with access to equipment and materials and to pay "all costs and fees incurred by Reiner . . . limited to model fees, location fees, purchasing and/or rental or props and wardrobe, and hiring of special talent"; an agreement by SuperStock to provide Reiner with a furnished apartment, a vehicle for transportation around Jacksonville, Florida, and a round-trip airline ticket from Santa Barbara, California, to Jacksonville to take the photograph; SuperStock's permission to Reiner to use any photograph produced under the Agreement for his self-promotion or publicity without payment to SuperStock; and SuperStock's agreement to credit Reiner with creating any photographs used by SuperStock. (Doc. No. 56 at 3-4.)
During the time period covered by the Agreement, Reiner created a photograph that he named "Casablanca." (
Within a few months of March 1997, Reiner provided "Casablanca" to SuperStock for distribution and sale through SuperStock and its agents. (Doc. No. 47-5 at 19; Doc. No. 57 at 3-4.) He understood that "Casablanca" would be sent to SuperStock, which would then try to sell the photograph to certain liquor companies. (Doc. No. 47-5 at 15-16.) In 2003, Reiner believed SuperStock put "Casablanca" in a catalogue to offer it for licensing and sale. (Doc. No. 56 at 6.) SuperStock did not license any copies of "Casablanca," and Reiner never received any royalties from SuperStock for sales of copies of "Casablanca." (Doc. No. 64 at 20.)
On December 1, 2004, Reiner signed a copyright registration application for "2004 Music & Fashion," a collection of works. (Doc. No. 56 at 6.) On December 6, 2004, the Copyright Office registered his work under the catalog reference "VAu651-781." (
Watkins is a nonprofit corporation that operates a private college in Nashville, Tennessee, focusing on fine and practical art. (
O'Bryan gave Nishimori a copy of "Casablanca" on a computer file that he used to create a mock advertisement. (
In reviewing a motion for summary judgment, this Court will only consider the narrow question of whether there are "genuine issues as to any material fact and [whether] the moving party is entitled to judgment as a matter of law." FED. R. CIV. P. 56(c). A motion for summary judgment requires that the Court view the "inferences to be drawn from the underlying facts . . . in light most favorable to the party opposing the motion."
Defendants seek summary judgment on all four claims in the Complaint: (1) copyright infringement against Watkins; (2) copyright infringement against Nishimori; (3) contributory copyright infringement against Watkins; and (4) violations of § 1202 of the Digital Millennium Copyright Act ("DMCA"), 17 U.S.C. § 1202, against both defendants. (Doc. Nos. 1, 48.)
Defendants argue that they are entitled to summary judgment on Reiner's copyright infringement claims because (1) Reiner does not own a copyright in "Casablanca" after he transferred his ownership interest to SuperStock; (2) Reiner's copyright is not valid because Rainer improperly registered his copyright in "Casablanca" as unpublished; and (3) Defendants' use of "Casablanca" constituted fair use. The second and third arguments are affirmative defenses, on which Defendants bear the burden of proof.
"A claim of copyright infringement requires proof of `(1) ownership of a valid copyright, and (2) copying of constituent elements of that work that are original.'"
Defendants argue that they are entitled to summary judgment on Reiner's copyright infringement claims because he transferred his copyright interest to SuperStock, making it undisputed that he does not have "ownership of a valid copyright." (Doc. No. 48 at 11.) Reiner insists that he never transferred his copyright ownership to SuperStock. (Doc. No. 54 at 11.)
The owner of a copyright may transfer his or her ownership "in whole or in part by any means of conveyance or by operation of law. . . ." 17 U.S.C. § 201(d)(1) (2006). The transfer of copyright ownership "is not valid unless an instrument of conveyance, or a note or memorandum of the transfer, is in writing and signed by the owner of the rights conveyed or such owner's duly authorized agent." 17 U.S.C. § 204(a) (2006). "So long as the parties' intent is clear, a transfer of copyright need not include any particular language."
Here, there is a disputed issue of fact as to whether Reiner signed a piece of paper transferring his copyright ownership in "Casablanca." Each party submitted different forms, and it is unclear at this stage when each form was signed or whether the signatures are authentic. Accordingly, there is question of fact as to whether Reiner transferred his copyright ownership in "Casablanca" to SuperStock that a jury must resolve. Summary judgment on this material factual dispute is not appropriate.
Even if Reiner can establish a prima facie case of copyright infringement, Defendants argue that they are entitled to summary judgment on their affirmative defense that Reiner improperly registered his copyright in "Casablanca" by registering his copyright in "2004 Music & Fashion" as unpublished after publishing "Casablanca". (Doc. No. 48 at 18.) Reiner argues that Defendants waived this affirmative defense by first presenting it in their motion for summary judgment. (Doc. No. 54 at 20.)
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) (2008). The copyright registration requirement is not jurisdictional, and may be waived.
Here, Defendants concede that this is an affirmative defense that they failed to raise prior to summary judgment. (Doc. No. 63 at 11.) After filing their reply brief to the instant motion for summary judgment, Defendants waited nearly two months before moving to amend their Answer to reflect this affirmative defense. (Doc. No. 66.) On February 15, 2017, the Magistrate Judge denied the motion, ruling that Defendants waived the defense by waiting so long to raise it. (Doc. No. 73.) Defendants did not appeal the Magistrate Judge's ruling to this Court.
Defendants argue that they are entitled to summary judgment on the copyright infringement claims because it is undisputed that their use of "Casablanca" was fair use, pursuant to 17 U.S.C. § 107, and therefore they are entitled to judgment as a matter of law on that affirmative defense. (Doc. No. 48 at 7.) Reiner, relying heavily on the en banc decision in
Copyright law generally forbids certain uses of a protected work, including duplication of that work, without the permission of the copyright holder.
As codified, "the fair use of a copyrighted work, including such use by reproduction in copies . . . for purposes such as . . . teaching (including multiple copies for classroom use), scholarship, or research, is not an infringement of copyright." 17 U.S.C. § 107 (2006). There are four factors to consider in determining whether the use of a work is fair use:
The statute "does not, and does not purport to, provide a rule that may automatically be applied in deciding whether any particular use is `fair.'" David Nimmer, 4
Here, there are three uses of "Casablanca" that the Court must evaluate separately: (a) O'Bryan's use of "Casablanca" as a material for her students to use to create mock classroom advertisements; (b) Nishimori use of "Casablanca" in his mock advertisement for his classroom assignment; and (c) Nishimori's use of his mock advertisement that uses "Casablanca" on his Flickr as storage so as not to lose it.
There is no dispute that O'Bryan used "Casablanca" as part of a set of photographs that her students could use to create a mock advertisement. Neither is there any question that Watkins is responsible for O'Bryan's actions. The question is whether her use of "Casablanca" as a classroom assignment constitutes "fair use."
In the context of this case, O'Bryan made Casablanca available to her students to use or not use. Much like an article from a book, the photograph was offered to help the students in the educational process. The students, not Watkins, would potentially "transform" Casablanca into something more and possibly creative. In evaluating the first factor, the Court must consider "whether the new work is `transformative,' and whether the use of that work is for commercial or noncommercial purposes."
The nature of the copyrighted work weighs slightly against finding fair use. "Courts . . . consider[] two aspects of the work in evaluating this factor: first, the extent to which it is a creative work enjoying broader copyright protection as opposed to a factual work requiring broader dissemination, and second, whether it is unpublished, in which case the right of first publication is implicated."
The amount and substantiality of the portion used in relation to the copyrighted work as a whole also weighs against finding fair use because Defendants used Reiner's entire photograph. 17 U.S.C. § 107(3) (2006). "While wholesale copying does not preclude fair use per se, copying an entire work militates against a finding of fair use."
In evaluating the fourth factor, the burden of proof as to the market effect "rests with the copyright holder if the challenged use is of a `noncommercial' [educational] nature," as it is here.
Here, Reiner has not established any market harm from Watkins' use of "Casablanca." Reiner argues that the effect of the market is that "Casablanca" was available for licensing and Defendants chose to use the photograph without paying for a license. (Doc. No. 54 at 47.) This does not satisfy his burden to show a negative market effect.
Reiner did not prove that such a revenue stream or market exists for photographs such as "Casablanca." Reiner also did not show that any other professor purchased a license to use "Casablanca," or that schools generally purchase licenses. Instead, he shows that Watkins changed its policy to upload Creative Commons photographs for free—a fact that significantly diminishes the argument that Watkins' use had any negative market affect. As such, this factor weighs strongly in favor of finding that Watkins' educational use of the photograph was fair use.
After weighing all the factors in the light consistent with the purpose of the fair use doctrine, the Court concludes that O'Bryan's educational use of "Casablanca" was fair use. Watkins used the photograph in a nonprofit educational setting and did not profit from the photograph at all. There is no proof before the Court that any market for using photographs in this setting existed for Watkins to disturb by using the photograph without paying for it. Rejecting the fair use defense and allowing this case to go to trial would stifle the creativity that the fair use doctrine is intended to protect. As such, the Court grants summary judgment to Watkins on the fair use defense.
Nishimori used "Casablanca" in two ways: first, as a mock advertisement, and second, on his Flickr account as storage.
Given the Court's ruling on the copyright infringement, Watkins is entitled to summary judgment on Reiner's contributory infringement claim because Nishimori did not infringe on any copyright. Contributory infringement "occurs when one, with knowledge of the infringing activity, induces, causes, or materially contributes to the infringing conduct of another."
Nishimori argues that he is entitled to summary judgment on the DMCA violation because he did not know that he was removing copyright management information. (Doc. No. 48 at 39-40.) Watkins argues that it is entitled to summary judgment on the DMCA violation claim because O'Bryan did not have any reason to know that removal of this information for a classroom assignment would "induct, enable, facilitate, or conceal an infringement." (Doc. No. 48 at 40.) Reiner argues summary judgment as to Nishimori is not appropriate because Nishimori knowingly removed information that turned out to be the name of the photographer, the photograph's title, and its copyright control number, even if he did not know what he was removing at the time. (Doc. No. 49.) Reiner further argues that O'Bryan "induced" the removal of the information. (
A DMCA violation under 17 U.S.C. § 1202(b)(1) occurs "when a person (1) without authority of the copyright owner or the law (2) intentionally removes or alters any copyright management information (3) knowing or having reasonable grounds to know that it will induce, enable, facilitate, or conceal an infringement of the federal copyright laws."
Summary judgment is appropriate on Reiner's DMCA claim against Nishimori because it is undisputed he did not know or have reasonable grounds to know that removing Reiner's name, the name of the photograph, or the copyright tracking number, would "induce, enable, facilitate, or conceal an infringement of the federal copyright laws."
Summary judgment is also appropriate on the DMCA claim against Watkins. For vicarious liability, the plaintiff must prove "(1) a defendant has the right and ability to supervise the infringing conduct and (2) the defendant has an obvious and direct financial interest in the infringement."
For the foregoing reasons, Defendants' Motion for Summary Judgment (Doc. No. 47) is
The Court will issue an appropriate order.