J.P. STADTMUELLER, District Judge.
Federal lawsuits seldom touch on such riveting subjects and regard so many colorful parties as the present matter. The plaintiff, Brownmark Films, LLC ("Brown mark"), is the purported co-owner of a copyright in a music video entitled "What What (In the Butt)" ("WWITB"), a nearly four minute ditty regarding the derrière of the singer of the underlying work. (Am. Compl. ¶¶ 11-13). The music video begins with an array of bizarre imagery—from a burning cross to a floating pink zeppelin— and only gets stranger from there. The heart of the video features an adult African American male ensconced in a bright red, half-buttoned, silk shirt, dancing, grinning creepily at the camera, and repeatedly singing the same cryptic phrases: "I said, what what, in the butt" and "you want to do it in my butt, in my butt." Meanwhile, the defendants are the entities involved in the production of "South Park," an animated sitcom that centers on the happenings of four foul-mouthed fourth
Brownmark and the makers of South Park find themselves litigating against each other in federal court as a result of an April 2, 2008 episode of the television program. (Am. Compl. ¶ 14). Specifically, Brownmark's amended complaint seeks damages and injunctive relief for copyright infringement under the Copyright Act, 17 U.S.C. § 101 et seq., against the defendants because of a South Park episode entitled "Canada on Strike." (Docket # 6). In that episode, one of the characters—the naive "Butters Stotch"—is coaxed by his fellow classmates to record an internet video in the hopes of "making money on the Internet." The video— which lasts for fifty eight seconds of the approximately twenty-five minute episode—replicates parts of the WWITB video, with the nine-year old Butters singing the central lines of the original video, while dressed as a teddy bear, an astronaut, and even as a daisy. In the episode, Butters' video, much like the original WWITB video, goes "viral," with millions watching the clip. However, after their attempts to collect "internet money" prove fruitless, the South Park fourth graders learn that their video, much like other inane viral YouTube clips, have very little value to those who create the work.
For as remarkable and fascinating the parties and issues surrounding this litigation are, this order, which will resolve a pending motion to dismiss (Docket # 8), will be, by comparison, frankly quite dry. The central legal issues surrounding the motion to dismiss require that the court resolve several relatively tricky issues regarding copyright law and civil procedure, hardly the sort of subject that would create millions of fans, as the work of all of the parties before the court did. Nonetheless, while the court has a "tough job," "someone has to do it," and, "with shoulder to the wheel," this court "forge[s] on" to resolve the pending motion. Janky v. Lake County Convention & Visitors Bureau, 576 F.3d 356, 358 (7th Cir.2009).
Before resolving the substance of the defendant's motion to dismiss, however, the court must discuss the procedural rules animating a Fed.R.Civ.P. 12(b)(6) motion. Fed.R.Civ.P. 12(b)(6) permits a defendant to assert a defense that the underlying complaint fails to state a claim upon which relief can be granted. To survive a 12(b)(6) motion to dismiss, the plaintiff's complaint must only "contain sufficient factual matter, accepted as true, to `state a claim to relief that is plausible on its face.'" Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 1949, 173 L.Ed.2d 868 (2009) (quoting Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555-57, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007)) (emphasis added). "A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable
First, the defendants argue that Brownmark does not have standing to sue for copyright infringement. (Def.'s' Br. at 1). The amended complaint indicates that Robert T. Ciraldo ("Ciraldo"), Andrew T. Swant ("Swant"), and Sam Norman ("Norman") "created [the] original music video known as" WWITB. (Am. Compl. ¶ 11). Eventually, the three individuals registered the copyright in the video with the United States Copyright Office and secured a Certificate of Registration for the copyright. Id. ¶ 12. The amended complaint further states that Messrs. Ciraldo and Swant—but not Mr. Norman—"assigned their interest" in WWITB to Brownmark in 2008. Id. ¶ 13. Relying on the Ninth Circuit case of Sybersound Records, Inc. v. UAV Corp., 517 F.3d 1137, the defendants contend that "unless all the other co-owners of the copyright joined in granting an exclusive right to" a party, all Brownmark obtained from Mr. Ciraldo and Mr. Swant was a non-exclusive license in WWITB, which is insufficient to obtain standing to sue for a copyright violation. (Def.'s' Br. at 9-10) (citing Sybersound Records, 517 F.3d at 1145-46). The court, however, is unpersuaded by the defendants' first argument.
The determination of whether a party has standing to sue for copyright infringement is governed by section 501(b) of the Copyright Act. Section 501(b) provides, in relevant part, that "the legal or beneficial owner of an exclusive right under a copyright is entitled . . . to institute an action for any infringement of that particular right committed while he or she is the owner of it."
Under 17 U.S.C. § 201(a), the authors of a joint work are necessarily "co-owners of copyright in the work." The Seventh Circuit has interpreted this language in the Copyright Act to afford "significant" benefits to a joint owner of a copyrighted work, in that each owner holds an "undivided interest in the work,"
However, the Ninth Circuit in Sybersound Records did not view the rights of a co-owner of a copyright in such a broad manner. Specifically, the Sybersound Records court held that the only means by which a third party can obtain an exclusive license in a copyright of a jointly-authored work is to have "all" of the co-owners grant such a license. 517 F.3d at 1146. Moreover, according to the Ninth Circuit, a co-owner of a copyright cannot unilaterally alienate their share of the intellectual property and instead can "only grant a nonexclusive license" to a third party. Id. The Sybersound Records court provides two rationales for the rather bold limit on a co-owner of a copyright's ability to transfer their property interest. First, the Ninth Circuit contends that if a co-owner were able to independently grant exclusive rights in a copyright, such an act would risk "limit[ing] the other co-owners' independent rights to exploit the copyright." Id. However, this rationale makes little sense. Granting even a non-exclusive license—an act which no one contends a co-owner of copyright cannot unilaterally undertake—has the potential to limit the utility of the underlying copyright. At the most extreme, a co-owner of a copyright could grant non-exclusive licenses to the entire world to reproduce or prepare derivatives of the underlying work, rendering the underlying copyright useless. The other co-owners would have the right to an accounting from the co-owner who granted the slew of non-exclusive licenses, Seshadri, 130 F.3d at 801, but no one can credibly argue that the risk of limiting the other co-owner's rights can be used to artificially restrict the alienability of the co-owner's right to transfer their interest
Second, the Ninth Circuit premised its decision in Sybersound Records on a rather narrow definition of exclusivity in the context of a jointly-owned copyright. Specifically, the Ninth Circuit reasoned that, because the other co-owners could use the copyright in question even after the assignment of the right by one co-owner to a third party, the assignment was by definition non-exclusive. 517 F.3d at 1146 ("Since TVT's assignment was admittedly non-exclusive, TVT succeeded only in transferring what it could under 17 U.S.C. § 201(d), a non-exclusive license.") The Sybersound Court, however, presumed, without any basis in the law, that a co-owner of a copyright has only non-exclusive rights, preventing a co-owner from granting exclusive rights to a third party. Perhaps calling a unilateral grant by one co-owner to a third party "exclusive" involves a play on words that does not comport with our typical view of word "exclusive" in other contexts, see, e.g., I.A.E., Inc. v. Shaver, 74 F.3d 768, 775 (7th Cir. 1996) ("In an exclusive license, the copyright holder permits the licensee to use the protected material for a specific use and further promises that the same permission will not be given to others"), but worshiping at the altar of linguistic consistency would render a co-owner, whose interests in the copyright inherently are not limited to him or herself, all but powerless to prevent infringement of that copyright. More broadly, adopting the Ninth Circuit's reasoning would mean that a co-owner of a copyright can never effectively transfer a partial interest in a copyright. It is for these reasons that the Sybersound Records court's holding has been widely lampooned in several respected treatises. See 1-6 NIMMER ON COPYRIGHT § 6.10[A][2][d] ("[A] grant . . . that characterizes itself as exclusive, should be treated as such . . . [t]he contrary conclusion in Sybersound threatens to vitiate enforcement in general of joint works"); WILLIAM F. PATRY, PATRY ON COPYRIGHT § 5:103 ("The Sybersound court . . . [has] made co-owners agunot, to each other until a Get, is obtained or a Bet Din, steps in and settles the matter . . . [t]his isn't what Congress intended.")
In sum, while the Sybersound Records decision is most definitely authoritative, it is far from persuasive. Instead, this court agrees that "[t]he determination of whether a grant is exclusive or non-exclusive depends on the grant." 1-6 NIMMER ON COPYRIGHT § 6.10[A][2][d]; see also PATRY ON COPYRIGHT § 5:103 ("[Congress] intended that co-owners be able to grant nonexclusive licenses without the others' permission and that they be able to transfer their proportional share in the whole without the others' permission, in which case the transferee would indeed stand in the shoes of the transferor.") Here, accepting the allegations in the complaint as true, Messrs. Ciraldo and Swaint's grant of their interest in WWITB was a complete assignment of rights to Brownmark (Am. Compl. ¶ 13), and, accordingly, Brownmark has standing to sue for infringement of the underlying copyright. HyperQuest, Inc. 632 F.3d at 382. The court proceeds to examine the defendants' second argument for dismissing the amended complaint.
In the alternative, the defendants argue that Brownmark's copyright infringement
A complaint is "subject to dismissal for failure to state a claim if the allegations, taken as true, show the plaintiff is not entitled to relief." Jones v. Bock, 549 U.S. 199, 215, 127 S.Ct. 910, 166 L.Ed.2d 798 (2007). Construed with the incorporation by reference doctrine discussed in Tierney, an affirmative defense can be the basis for a dismissal under Fed. R. Civ P. 12(b)(6) when the allegations of the complaint and material that expressly referenced the complaint and is central to the plaintiff's claim "set forth everything necessary to satisfy the affirmative defense." Brooks v. Ross, 578 F.3d 574, 579 (7th Cir.2009) (quoting United States v. Lewis, 411 F.3d 838, 842 (7th Cir.2005)) (emphasis added). In other words, plaintiffs have to plead themselves out of court by admitting all the ingredients of an "impenetrable defense." Hecker v. Deere & Co., 556 F.3d 575, 588 (7th Cir.2009); see also Tamayo v. Blagojevich, 526 F.3d 1074, 1086 (7th Cir.2008). A Fed.R.Civ.P. 12(b)(6) motion cannot be granted based on an affirmative defense when the plaintiff's recovery is "still plausible" even under the facts taken from the face of the complaint and the documents it references that are central to the claim. Id.
Ultimately, "context is king" in this case in deciding whether the plaintiff has provided in its complaint and the materials referenced in that complaint the necessary information to warrant a dismissal based on an affirmative defense. Here, the amended complaint discusses a very limited context for the alleged infringement. Specifically, the amended complaint notes that the use of WWITB by the makers of South Park was in the context of the specific episode entitled "Canada on Strike," in which one of the characters sings the musical composition in question and recreates
While evaluating an affirmative defense, and indeed the "fair use" defense, at the pleadings stage is "irregular," Chicago Bd. of Educ. v. Substance, Inc., 354 F.3d 624, 627 (7th Cir.2003), given the scope and nature of the infringement alleged by the amended complaint, coupled with the rather obvious resolution of the substantive underlying issue, the court can conclude that this dispute simply does not warrant "putting the defendant[s] through the expense of discovery." Atkins, 631 F.3d at 832. Moreover, in contrast to the Seventh Circuit's decision in Substance, Inc., here the plaintiff has not even bothered to address the substance of the fair use question, providing this court with absolutely no indication of any evidence or factors outside of the episode in question that could even possibly influence the resolution of the fair use issue in the plaintiff's favor. Brownmark has not provided a reason, nor can this court speculate as to why this matter cannot be resolved by looking to the pleadings and the materials incorporated by reference in the pleadings. Consequently, the court finds nothing wrong with addressing the substance of the fair use issue through the Fed.R.Civ.P. 12(b)(6) motion. See generally Harper & Row Publishers, Inc. v. Nation Enters., 471 U.S. 539, 105 S.Ct. 2218, 85 L.Ed.2d 588 (1985) (holding that a court may conduct a fair use analysis, as a matter of law, where the facts are presumed or admitted); see also Fisher v. Dees, 794 F.2d 432, 435-36 (9th Cir.1986) (affirming a finding of fair use where the material facts were not at issue or were admitted). Indeed, in this circuit and others, evaluating fair use issues in the context of a Fed.R.Civ.P. 12(b)(6) motion is commonplace. See Forest River, Inc. v. Heartland Rec. Vehicles, LLC, 753 F.Supp.2d 753, 766 (N.D.Ind. 2010) (evaluating the fair use defense in
The fair use doctrine allows for a "limited privilege in those other than the owner of a copyright to use the copyrighted material in a reasonable manner without the owner's consent." Fisher, 794 F.2d at 435. The rationale behind the doctrine is that unauthorized uses of a copyright are permissible when they "advance the underlying constitutional purpose of copyright law: to promote broad public availability of literature, music, and other forms of creative arts." BRUCE P. KELLER AND JEFFREY P. CUNARD, COPYRIGHT LAW: A PRACTITIONER'S GUIDE § 8.3 (2010). Specifically, 17 U.S.C. § 107, which codifies common law fair use principles, provides that the "fair use of a copyrighted work" for such purposes as "criticism" and "comment" "is not an infringement of a copyright." Moreover, the statute provides four guideposts by which to determine whether a particular use is "fair": (1) the purpose and character of the use; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work. Id. However, as the Seventh Circuit has cautioned, "the four factors that Congress listed when it wrote a fair use defense . . . into the Copyright Act . . . are not exhaustive and do not constitute an algorithm that enables decisions to be ground out mechanically." Substance, Inc., 354 F.3d at 629; Ty, Inc. v. Publ'ns Int'l, 292 F.3d 512, 522 (7th Cir.2002) ("[T]he four factors are a checklist of things to be considered rather than a formula for decision."). Ultimately, the "fair use copier must copy no more than is reasonably necessary . . . to enable him to pursue an aim that the law recognizes as proper," such as "the aim of criticizing the copyrighted work effectively." Substance, Inc., 354 F.3d at 629. Moreover, application of the fair use doctrine requires a case-by-case analysis. Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569, 577, 590, 114 S.Ct. 1164, 127 L.Ed.2d 500 (1994). With this framework for evaluating the fair use issue in mind, the court turns to the two works in question.
Here, applying the statutory factors from Section 107 of the Copyright Act and the principles behind the fair use doctrine, the court readily concludes that the defendants use of the music video in the South Park episode "Canada on Strike" was "fair." One only needs to take a fleeting glance at the South Park episode to gather the "purpose and character" of the use of the WWITB video in the episode in question. The defendants used parts of the WWITB video to lampoon the recent craze in our society of watching video clips on the internet that are—to be kind—of rather low artistic sophistication and quality.
Beyond the "purpose and nature of the work" statutory factor, the court also looks to the remaining issues raised in Section 107 of the Copyright Act. The "nature" of the copyrighted work factor is not particularly helpful to the court, however: while fair use is more difficult to establish when a core work is copied as opposed to when an infringer takes material that is only marginally within copyright protection, the "nature" of the copyright in question does not help this court assess whether South Park's parody is a fair use, because "parodies almost invariably copy publicly known, expressive works." Campbell, 510 U.S. at 586, 114 S.Ct. 1164. Additionally, the court notes that the use of the copyrighted work in the South Park episode was relatively insubstantial. The defendants' work did not mirror the original WWITB video—indeed, the derivative work was a cartoon of a nine year old boy repeating just enough lines WWITB to conjure up the original work. Notably, the WWITB snippet in the South Park episode was less than a third of the length of the original work. The use of the imagery and words of the original work was all but the minimum needed by the defendants to accomplish their goal of commenting on a social phenomenon. Substance, 354 F.3d at 629. Finally, there is little risk that derivative work in question would somehow usurp the market demand for the original: the South Park episode lampoons viral video crazes, while the WWITB video is the epitome of a clip that fuels such crazes. Campbell, 510 U.S. at 524, 114 S.Ct. 1023 ("[T]here is no protectible derivative market for criticism.") Looking at the Section 107 factors together, keeping in mind the purposes of the fair use doctrine, the court can easily conclude that South Park's parody of the WWITB video falls squarely within the fair use protections afforded by the Copyright Act. If the use by the defendants of the copyrighted
Finally, the court concludes that the dismissal ought be with prejudice. Twice the plaintiff has filed a complaint in this court based on the use of the copyrighted work in an episode of South Park. (Docket # 1, # 6). Moreover, under recent changes to Fed.R.Civ.P. 15(a), the plaintiff had an additional opportunity to file a pleading to cure the errors raised by the motion to dismiss—in this case, the plaintiff could have filed a complaint that raised infringement claims outside of the context of the use of the copyrighted work in the production and dissemination of the South Park episode "Canada on Strike." Despite these opportunities to resolve rather glaring problems with the substance of the underlying dispute, the plaintiff has looked elsewhere and instead filed briefs that wholly ignored the central issue of this litigation, fair use. Such behavior is indicative of the efficacy of this litigation, which rightfully ends now.
Accordingly,
The Clerk of the Court is directed to enter judgment accordingly.