Justia Contracts Opinion Summaries

Defendants, the children of the late Jack Kirby, one of the most influential comic book artists of all time, appealed the district court's grant of summary judgment to Marvel. This case concerned the property rights in 262 works published by Marvel between 1958-1963. After defendants served various Marvel entities with Termination Notices purporting to exercise statutory termination rights under section 304(c)(2) of the Copyright Act of 1976, 17 U.S.C. 304, Marvel filed suit seeking a declaration that defendants have no termination rights under section 304(c)(2). The court concluded that the district court lacked personal jurisdiction over Lisa and Neal Kirby and, therefore, vacated the district court's judgment against them; Lisa and Neal are not indispensable parties and it was appropriate for the action against Barbara and Susan Kirby to have proceeded on its merits; the district court did not err in determining as a matter of law that the works at issue were "made for hire," made at Marvel's instance and expense, and that the parties had no agreement to the contrary; and the district court properly granted Marvel's motion for summary judgment as to Susan and Barbara, who were without termination rights under section 304(c). View "Marvel Characters, Inc. v. Kirby" on Justia Law

This case stemmed from a dispute between the parties over license agreements which allowed Myriad access to Oracle's Java programming language. On appeal, Myriad challenged the district court's partial denial of its motion to compel arbitration. The court concluded that the incorporation of the United Nations Commission on International Trade Law (UNCITRAL) arbitration rules into the parties' commercial contract constituted clear and unmistakable evidence that the parties agreed to arbitrate arbitrability. Accordingly, the court reversed and remanded for further proceedings. View "Oracle America, Inc. v. Myriad Group A.G." on Justia Law

Fox filed suit against Dish Network for copyright infringement and breach of contract, seeking a preliminary injunction. At issue were two Dish products: (1) "PrimeTime Anytime," which allowed a cable subscriber to set a single timer to record any and all primetime programming on four major networks; and (2) "AutoHop," which allowed users to automatically skip commercials. The court held that the district court did not abuse its discretion in holding that Fox did not establish a likelihood of success on its direct infringement claim. In this case, Dish's PrimeTime Anytime program created the copied program only in response to the user's command and the district court did not err in concluding that the user, not Dish, made the copy. Operating a system used to make copies at the user's command did not mean that the system operator, rather than the user, caused copies to be made. Although Fox established a prima facie case of direct infringement by Dish customers, Dish met its burden of demonstrating that it was likely to succeed on its affirmative defense that its customers' copying was a "fair use." Accordingly, the district court did not abuse its discretion in concluding that Fox was unlikely to succeed on its claim of secondary infringement. Applying a very deferential standard of review, the court concluded that the district court did not abuse its discretion in denying a preliminary injunction based on alleged contract breaches. Finally, even if Fox was likely to succeed on its claims that Dish directly infringed Fox's copyrights and breached the no-copying clause of the contract at issue by making "quality assurance" copies, the court agreed with the district court that Fox did not demonstrate a likelihood of irreparable harm resulting from these copies. Therefore, the court affirmed the judgment of the district court. View "Fox Broadcasting Co. v. Dish Network" on Justia Law

Plaintiff sued Marvel, contending that he conceived the comic book character "Ghost Rider," the related characters, and the origin story. Plaintiff also claimed that he owned the renewal term copyrights in those works. On appeal, plaintiff challenged the district court's grant of summary judgment in favor of Marvel, holding that plaintiff had assigned any rights he had in the renewal term copyrights to Marvel when he executed a form work-for-hire agreement (the Agreement), six years after the initial publication of the issue in question. The court, by applying the "strong presumption against the conveyance of renewal rights," concluded that the district court erred in holding as a matter of law that plaintiff had assigned his renewal rights to Marvel by signing the Agreement; plaintiff's claim was not untimely as a matter of law because there were genuine disputes regarding whether plaintiff should have known about Marvel's repudiation of his claim of ownership; and there were genuine disputes of material fact that precluded granting summary judgment on the issue of authorship. Accordingly, the court vacated and remanded for trial. View "Gary Friedrich Enters., LLC v. Marvel Characters, Inc." on Justia Law

Plaintiff filed separate copyright infringement suits against defendants for posting articles from the Las Vegas Review-Journal online without authorization. In consolidated appeals, the court agreed with the district court that plaintiff lacked standing in both cases because agreements assigning plaintiff the bare right to sue for infringement did not transfer any associated exclusive rights under the Copyright Act, 17 U.S.C. 101 et seq. Because plaintiff lacked standing, the court also concluded that the court lacked jurisdiction to rule on the merits of the fair use claim. Therefore, the court affirmed the motions to dismiss in both cases, but vacated the portion of the district court order in Hoehn granting summary judgment on fair use. View "Righthaven LLC v. Hoehn" on Justia Law

Remark produced a distinctive series of television commercials for radio stations known as the “remarkable mouth” or “hot lips” commercials. The U.S. Copyright Office issued a copyright for a version of this commercial in 1980. The original holder of the copyright assigned it to Remark, which registered it with the Copyright Office in 2002. WADL, a Detroit television station, broadcast two commercials that resemble the copyright. After the commercials aired, Remark sent a cease-and-desist letter to the producer, Adell. After some negotiation, the parties agreed that $50,000 would settle Remark’s claims. Remark drafted an agreement, and Adell produced a revised version. Remark’s counsel e-mailed Adell’s counsel saying that Remark agreed to the changes. Adell forwarded a final version. Remark signed and returned the originals, but Adell never signed the agreement. It instead retained new counsel and for the first time balked at the $50,000 figure, offering to settle for a more “reasonable” amount. Remark filed suit. The district court granted Remark summary judgment but denied its request for attorney’s fees. The Sixth Circuit affirmed. View "Remark, LLC v. Adell Broad. Corp." on Justia Law

Plaintiff, the host of a nationally syndicated radio show and the author of several books, appealed an adverse judgment in his suit against various defendants for copyright infringement, breach of contract, and tortious interference. Defendants cross-appealed the denial of attorneys' fees. Because the court agreed that the facts of this case supported the creation of an exclusive license as to the first work at issue, and an implied nonexclusive license as to the second work at issue, the court affirmed the jury's verdict that defendants did not infringe on plaintiff's copyrights. The court rejected the remaining challenges to the district court's judgment and affirmed in all respects. View "Baisden v. I'm Ready Productions, Inc., et al." on Justia Law

Art Etc., LLC sought a declaratory judgment that the sale of inventory purchased from Angel Gifts, Inc. and Donald Schmit would amount to copyright infringement in violation of the United States Copyright Act. Angel Gifts and Donald Schmit moved to stay the proceedings pending arbitration, invoking an arbitration provision in an agreement between the parties. The district court denied the motion. The Eighth Circuit Court of Appeals affirmed, holding (1) the parties intended for the arbitration provision to apply only under certain circumstances; and (2) Art. Etc.'s claims did not fall within the scope of the arbitration provision. Thus, arbitration in this case was not required.

In 2005, Forest Park formulated a concept for a television show called "Housecall," in which a doctor, after being expelled from the medical community for treating patients who could not pay, moved to Malibu, California, and became a concierge doctor to the rich and famous. Forest Park created character biographies, themes, and storylines, which it mailed to Sepiol, who worked for USA Network. Initial discussions failed. A little less than four years later, USA Network produced and aired a television show called "Royal Pains," in which a doctor, after being expelled from the medical community for treating patients who could not pay, became a concierge doctor to the rich and famous in the Hamptons. Forest Park sued USA Network for breach of contract. The district court held that the claim was preempted by the Copyright Act, 17 U.S.C.101, and dismissed. The Second Circuit reversed. Forest Park adequately alleged the breach of a contract that included an implied promise to pay; the claim is based on rights that are not the equivalent of those protected by the Copyright Act and is not preempted.

The issue before the Supreme Court was whether a claim under Colorado law for civil theft of a copyrightable work required a trial court to instruct the jury on principles of federal copyright law. Petitioner Steward Software hired Respondent Richard Kopcho to develop and market a new software program. Steward never entered into a written agreement governing the ownership of the software with Holonyx, Inc. (one of Respondent's multiple corporate entities) or Respondent. By the time the software was ready for testing, the relationship between the parties had become strained. Steward refused to make further payments and under Respondent's direction, Holonyx locked Steward out of the software code and refused to turn it over. Holonyx then filed a copyright registration for the software with the U.S. Copyright Office, listing the software's author a new corporation Respondent controlled called Ruffdogs Software, Inc. Steward sued Respondent for breach of contract and civil theft. Before trial, the parties tendered proposed jury instructions; one of Steward's proposed instructions pertained to the ownership and registration of copyrightable works. The trial court determined that copyright law did not pertain to Steward's civil theft claim and rejected the tendered instruction. Upon review, the Supreme Court agreed that ownership of the copyright in the code was irrelevant. The Court thus concluded the trial court correctly refused to instruct the jury on the principles of copyright law. The court reversed the appellate court and reinstated the trial court's opinion.