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Online CLE Last Year in Copyrights 1 General CLE credit From the Oregon State Bar CLE seminar Intellectual Property Review—Updates and Changes from 2019, presented on February 14, 2020 © 2020 David Madden. All rights reserved.

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Page 1: Last Year in Copyrights

Online CLE

Last Year in Copyrights

1 General CLE credit

From the Oregon State Bar CLE seminar Intellectual Property Review—Updates and Changes from 2019, presented on February 14, 2020

© 2020 David Madden. All rights reserved.

Page 2: Last Year in Copyrights

ii

Page 3: Last Year in Copyrights

Chapter 3

2019 Copyright ReviewDavid MaddenMersenne Law

Portland, Oregon

Contents

Presentation Slides: 2019 Copyright Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–12019 Copyright Cases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–7H. R. 2426 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3–7

Page 4: Last Year in Copyrights

Chapter 3—2019 Copyright Review

3–iiIntellectual Property Review—Updates and Changes from 2019

Page 5: Last Year in Copyrights

Chapter 3—2019 Copyright Review

3–1Intellectual Property Review—Updates and Changes from 2019

2019 COPYRIGHT REVIEWDavid MaddenMersenne Law

Synopsis◦ Ten Cases

◦ Developments in Copyright Trolling

◦ Copyright “Small Claims” Court

1329

821

437

377

232

206

178

145

102

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COPYRIGHT CASES BY STATE(DISTRICT COURT)

~4800 TOTAL

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25

17 6

9 7 5

54

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COPYRIGHT APPEALS

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Chapter 3—2019 Copyright Review

3–2Intellectual Property Review—Updates and Changes from 2019

U.S. Supreme Court

◦ Fourth Estate v. Wall-Street.com139 S.Ct. 881 (2019)◦ Copyright registration (not just

application to register) is required to bring suit for copyright infringement.

◦ Resolves 5/8/9 v. 10/11 circuit split◦ Copyright office lead time: electronic

filings=1-6 months.

◦ Rimini Street v. Oracle139 S.Ct. 873 (2019)◦ Long-running (2010) copyright case

between software vendor Oracle and third-party software maintenance vendor Rimini Street.

◦ Rimini found liable for infringement in jury trial; Oracle awarded $35.6M damages, $28.5M attorney’s fees, $4.95M costs and $12.8M “litigation expenses.”

◦ Expert witness fees not listed in 18 U.S.C. § 1821 or 1920, so not available to prevailing party.

Google LLC v. Oracle America (18-956)

◦ Re: Copyright treatment of programming language / library APIs

◦ Trial 1: Google found liable for infringement, but jury deadlocked over fair use. Court determined that APIs were not copyrightable as a matter of law. First appeal resulted in APIs entitled to copyright protection, remand for reinstatement of infringement verdict and further proceedings on fair use.

◦ Trial 2: Google prevailed on fair use, Oracle appealed, 9th Circuit says API package use not fair as a matter of law.

◦ Supreme Court grants cert, oral argument set for 24 March 2020.

◦ The questions presented are:

1. Whether copyright protection extends to a software interface.

2. Whether, as the jury found, petitioner's use of a software interface in the context of creating a new computer program constitutes fair use.

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Chapter 3—2019 Copyright Review

3–3Intellectual Property Review—Updates and Changes from 2019

Originality, Similarity◦ Sean Hall v. Taylor Swift

18-55426 (9th Cir. 2019)◦ Hall’s complaint against

Swift over Shake It Off (vs.Playas Gon’ Play) dismissed based on lack of originality in 6-word phrase and four-part lyrical sequence.

◦ Reversed and remanded: “although the amount of creative input … required to meet the originality standard is low, it is not negligible.”

◦ Griffin v. Sheeran1:17-cv-5221 (SDNY)

◦ Griffin’s complaint against Sheeran over Thinking Out Loud infringes their rights in the Marvin Gaye songLet’s Get It On.

◦ MSJ denied: material dispute over originality ofI-iii-IV-V chord progression and similarity between works.

◦ Gray v. Katy Perry2:15-cv-5642 (CDCA)

◦ Suit over Perry’s Dark Horsevs. Christian rap/hip-hop Joyful Noise.

◦ Jury verdict of infringement (~$2.8M)

◦ On appeal now

Fair Use

◦ Oyewole v. Various Artists18-1311 (2nd Cir. 2019)

◦ Notorious B.I.G. and others used the phrase “party and bullshit” in their work. The phrase is from an Oyewolepoem When the Revolution Comes.

◦ Dismissed on 12(b)(6) over court’s “fair use” analysis; 2nd Circuit affirms.

◦ Docket is a mess, too many defendants, too many letters, but possibly no MTD on fair use – how did court get here?

◦ Dr. Seuss v. ComicMix et al.3:16-cv-2779 (SDCA)

◦ Infringement allegations over Dr. Seuss parody Oh, The Places You’ll Boldly Go!

◦ Two MTDs and JOTP on fair use denied, then MSJ granted: alleged infringing work is highly transformative, use is fair.

◦ Currently on appeal.

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Chapter 3—2019 Copyright Review

3–4Intellectual Property Review—Updates and Changes from 2019

Procedural Defenses◦ Charles v. Jerry Seinfeld

1:18-cv-1196 (SDNY)◦ Π claimed Seinfeld stole his idea for “two

friends talking and driving.”◦ Idea was discussed in the 1990s, and π

produced a pilot in 2011.◦ Seinfeld started Comedians in Cars

Getting Coffee for Netflix in 2017.◦ Π on notice that Δ repudiated copyright

ownership claim at least by 2012, so complaint dismissed as barred by statute of limitations.

◦ Gold Value International Textile v. Sanctuary Clothing LLC (925 F.3d 1140, 9th Cir. 2019)

◦ Π sued over copied fabric designs◦ Π had knowingly filed registrations that

combined published and unpublished designs

◦ Copyright Registrar, when queried, said it would not register a mix of published and unpublished works

◦ Summary judgment granted on invalid registration; decision affirmed by 9th

Circuit.

Copyright Trolling

◦ Oregon defense bar has chased trolls out of state; Washington also.

◦ Strike 3 and Malibu Media are the largest remaining movie (porn) players; they file in New York, Maryland, California, Illinois

◦ State-court filings in Florida (“Pure Bill of Discovery”)

◦ Stock-photo trolls file some suits, not as prolific as movie trolls

◦ Strike 3 filed 1,192 cases

◦ Malibu Media filed 495 cases

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Chapter 3—2019 Copyright Review

3–5Intellectual Property Review—Updates and Changes from 2019

1329

1192

821

495

437

377

232

206

178

145

102

93 78 68 53 48 48 40 36 34 33 33 32 30 29 29 28 20 20 19 18 16 15 14 14 13 13 12 11 8 7 6 6 5 5 4 4 4 3 3 2 1 0 0 0

STRIKE 3 & MALIBU MEDIA FILEDOVER 33% OF ALL COPYRIGHT ACTIONS

IN 2019

Copyright “Small Claims Court”◦ Copyright Office studied at Congress’s

direction ~2011-2013◦ Copyright Alternative in Small-Claims

Enforcement (“CASE”) Act of 2016, 2017, 2019

◦ HR2426 passed 410-6 in October 2019◦ Senate Judiciary Committee approved

without amendment September 2019

◦ Copyright Office to establish “Copyright Claims Board”

◦ Can authorize subpoenas under 17 USC 512(h) (“to identify infringer”)

◦ Limited judicial review (only “fraud, corruption, misrepresentation, other misconduct” and “CCB exceeded authority”)

◦ $7,500 or $15k per work, $15,000 per proceeding; $30,000 total

◦ Parties bear own costs, but $5k attorney-fee recovery possible for bad-faith conduct.

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Chapter 3—2019 Copyright Review

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Chapter 3—2019 Copyright Review

3–7Intellectual Property Review—Updates and Changes from 2019

2019 Copyright Cases

Fourth Estate Pub. Benefit Corp. v. Wall-Street.com, LLC, 139 S.Ct. 881, 203 L.Ed.2d 147 (2019)https://supreme.justia.com/cases/federal/us/586/17-571/

Rimini St., Inc. v. Oracle USA, Inc., 139 S. Ct. 873, 203 L.Ed.2d 180 (2019)https://supreme.justia.com/cases/federal/us/586/17-1625/

Oracle Am., Inc. v. Google LLC, 886 F.3d 1179 (Fed. Cir. 2018)http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/17-1118.Opinion.3-26-2018.1.PDF

Sean Hall v. Taylor Swift, 18-55426 (9th Cir. 2019)http://cdn.ca9.uscourts.gov/datastore/memoranda/2019/12/05/18-55426.pdf

Griffin v. Sheeran, 1:17-cv-5221 (SDNY)https://docs.justia.com/cases/federal/district-courts/new-york/nysdce/1:2017cv05221/477309/93

Gray v. Katy Perry, 2:15-cv-5642 (CDCA)Demand for Jury Trial: http://openargs.com/wp-content/uploads/Katy-Perry-complaint.pdf[Proposed] Judgment: https://www.scribd.com/document/425614778/Gray-v-Hudson-Judgment

Oyewole v. Ora, 291 F.Supp.3d 422 (S.D. N.Y. 2018)https://www.leagle.com/decision/infdco20180312c62

Dr. Seuss v. ComicMix et al., 3:16-cv-2779 (SDCA)https://socalip.org/wp-content/uploads/2019/03/Dr.-Seuss-v.-ComicMix-LLC.pdf

Charles v. Jerry Seinfeld, 1:18-cv-1196 (SDNY)https://images.law.com/contrib/content/uploads/documents/389/83821/Seinfeld-Ruling.pdf

Gold Value Int’l Textile, Inc. v. Sanctuary Clothing, LLC, 925 F.3d 1140 (9th Cir. 2019)https://law.justia.com/cases/federal/appellate-courts/ca9/17-55818/17-55818-2019-06-04.html

H. R. 2426

https://www.congress.gov/116/bills/hr2426/BILLS-116hr2426pcs.pdf

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3–8Intellectual Property Review—Updates and Changes from 2019