Chicago, Illinois – The United States Court of Appeals for the Seventh Circuit has affirmed the judgment of the Northern District of Illinois, Eastern Division.   Copyright lawyers for Guy Hobbs of the United Kingdom had sued alleging copyright infringement by Elton John and Bernie Taupin of the United Kingdom of Hobbs’ copyrighted work “Natasha” which has been registered in the United Kingdom.  The district court dismissed the complaint and the appellate court affirmed.

While working on a Russian cruise ship, Hobbs composed a song entitled “Natasha” that was inspired by a brief love affair he had with a Russian waitress.  He tried to publish his song, but was unsuccessful.  A few years later, John and Taupin released a song entitled “Nikita” through a publishing company to which Hobbs had sent a copy of “Natasha.”  Believing that “Nikita” was based upon “Natasha,” Hobbs eventually demanded compensation from John and Taupin.  He ultimately filed suit asserting a copyright infringement claim and two related state-law claims.  The Defendants asked the district court to dismiss Hobbs’ complaint for failure to state a claim. 

In supporting his claim for copyright infringement in the district court, Hobbs asserted both traditional copyright infringement of individual elements of “Natasha” and also copyright infringement based upon “Natasha” as a combination of similar elements that would be unprotectable individually. 

After considering Hobbs’ first argument of copyright infringement, the district court concluded that the elements identified were not entitled to copyright protection when considered alone.  

Hobbs’ second legal theory to support a claim of copyright infringement was that the unique selection, arrangement, and combination of individually unprotectable elements in a song could be entitled to copyright protection.  The district court also rejected Hobbs’ “unique combination” argument because it interpreted the law, as stated in Peters v. West, 692 F.3d 629, 632 (7th Cir. 2012), to preclude Hobbs’ copyright infringement claim based upon a combination of similar elements that are unprotectable individually.  Despite rejecting Hobbs’ “unique combination” argument in this set of circumstances as an impermissible application of copyright law, the district court nevertheless considered the facts under this theory. 

In defending his “unique combination” theory, Hobbs identified a number of allegedly similar elements between the two songs.  He argued that his selection and combination of those elements in “Natasha” constituted a unique expression entitled to copyright protection, and that the Defendants’ similar use of those elements in “Nikita” supported a claim for copyright infringement.  Hobbs identified the following allegedly similar elements that are found in both songs:

·         A theme of impossible love between a Western man and a Communist woman during the Cold War;

·         References to events that never happened;

·         Descriptions of the beloved’s light eyes;

·         References to written correspondence to the beloved;

·         Repetition of the beloved’s name, the word “never,” the phrase “to hold you,” the phrase “I need you,” and some form of the phrase “you will never know”; and

·         A title which is a one-word, phonetically-similar title consisting of a three-syllable female Russian name, both beginning with the letter “N” and ending with the letter “A.”

The district court held that the similar elements, even when considered under the “unique combination” theory, still could not support a claim for copyright infringement.  It also concluded that the Copyright Act preempted Hobbs’ state-law claims.

The sole issue for appeal was Hobbs’ “unique combination” theory.  The Seventh Circuit held that Hobbs failed to state a claim for copyright infringement because, even when the allegedly similar elements between the songs were considered in combination, “Natasha” and “Nikita” did not share enough unique features to give rise to a breach of the duty not to copy another’s work.  It held that, although both songs contained the idea of an impossible love affair due to a conflict, each song expressed this general idea differently.  That is, “Natasha” and “Nikita” tell different stories about impossible romances during the Cold War.  Thus, as a matter of law, they were not substantially similar and the dismissal of Hobbs’ claim for copyright infringement was affirmed.

Practice Tip #1:

The Seventh Circuit declined to decide whether Hobbs was correct when he argued that a unique selection, arrangement, and combination of individually unprotectable elements in a song can support a copyright infringement claim.   Instead, careful review of both songs’ lyrics reveals that Hobbs’ first four allegedly similar elements are expressed differently in “Natasha” and “Nikita.”  The remaining similar elements were standard fare in popular love songs and, thus, could not serve to serve as evidence that infringement had occurred.

Practice Tip #2:

The Copyright Act does not protect general ideas, but only the particular expression of an idea.  Additionally, even at the level of particular expression, the Copyright Act does not protect incidents, characters or settings which are as a practical matter indispensable, or at least standard, in the treatment of a given topic.

However, there is a wealth of authority recognizing that, in certain situations, a unique arrangement of individually unprotectable elements can form an original expression entitled to copyright protection. See Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 362 (1991) (“The question that remains is whether [the plaintiff] selected, coordinated, or arranged these uncopyrightable facts in an original way.”); JCW Invs., Inc. v. Novelty, Inc., 482 F.3d 910, 917 (7th Cir. 2007) (“[T]he very combination of these [unprotectable] elements as well as the expression that is [the work itself] are creative.”); Bucklew v. Hawkins, Ash, Baptie & Co., 329 F.3d 923, 929 (7th Cir. 2003) (“[I]t is the combination of [unprotectable] elements, or particular novel twists given to them, that supply the minimal originality required for copyright protection.”); Roulo v. Russ Berrie & Co., 886 F.2d 931, 939 (7th Cir. 1989) (“While it is true that these elements are not individually capable of protection, just as individual words do not deserve copyright protection, it is the unique combination of these common elements which form the copyrighted material.”); see also Stava v. Lowry, 323 F.3d 805, 811 (9th Cir. 2003) (“It is true, of course, that a combination of unprotectable elements may qualify for copyright protection.”); Knitwaves, Inc. v. Lollytogs Ltd., 71 F.3d 996, 1003-04 (2d Cir. 1995) (“As the Supreme Court’s decision in [Feist] makes clear, a work may be copyrightable even though it is entirely a compilation of unprotectible elements.”).

Practice Tip #3:

Although Hobbs brought his action twenty-seven years after “Nikita” was authored and eleven years after Hobbs allegedly first encountered “Nikita,” the Defendants did not raise the three-year statute of limitations, see 17 U.S.C. § 507(b), as a defense in their motion to dismiss.

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The U.S. Trademark Office issued 146 trademark registrations to persons and businesses in Indiana in August 2013 based on applications filed by Indiana Trademark Attorneys:

Serial Number

Reg. Number

Mark

Click Here

 

85796318

4383431

NORWICH HOUSING CORPORATION

LIVE

85977823

4394045

SUMMIT LIVESTOCK FACILITIES

LIVE

85881884

4392372

SABRE

LIVE

85832906

4392258

ROLLING BONES HEALTHY DOG TREATS

LIVE

85824955

4391898

C&G

LIVE

85818711

4391619

GUY AINTING NOW YOU KNOW A GUY!

LIVE

85805745

4391311

SWEET SLING

LIVE

85784483

4391170

FLIP ME

LIVE

85755411

4393974

SUN ANGELS

LIVE

85730389

4393887

NICO SHEPHERD’S HOOK

LIVE

85675342

4393742

ACOUSTI-SEAL ENCORE

LIVE

85663169

4390641

LIVE

85660511

4390618

M MATRIX ENGINEERING SAFETY ADVANCING AUTOMATION

LIVE

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South Bend, Indiana – NIBCO, Inc. of Elkhart, Indiana has sued Valvulas Arco, S.A. (“Arco”) of Valencia, Spain in the Northern District of Indiana asking for a declaratory judgment that it has not violated Arco’s patents, U.S. Design Patent Nos. 429,518; 429,519; 429,520; 438,595; and 479,307.

NIBCO-logo.jpgArco and NIBCO both manufacture shut-off valves.  From about 2002 to 2008, Arco manufactured and sold to NIBCO shut-off valves of the type involved in this dispute.  Around 2008, NIBCO discontinued purchasing valves from Arco.  Currently, NIBCO manufactures shut-off valves for its own use and for sale.

In letters dated April 22, 2013 and August 16, 2013, Arco purportedly asserted that NIBCO infringes the Arco valves (the “patents-in-suit”).  As a result of Arco’s claims of infringement in those letters, NIBCO asserts that there is now an actual controversy between it and Arco regarding the alleged infringement and validity of the patents-in-suit; NIBCO seeks a resolution under the Declaratory Judgment Act.

NIBCO states that Arco has never fixed upon its shut-off valves notice of, nor was there ever any mention of any of, any of the patents-in-suit.  It further claims that most, if not all, of the features shown in the claims are functional.  To the extent that any purely ornamental features do exist, it contends that those ornamental features of NIBCO’s products would not appear substantially similar to an ordinary observer.  Consequently, NIBCO asserts that its products do not infringe, either literally or under the doctrine of equivalents.  Finally, NIBCO denies inducing others to infringe any of the patents-in-suit.

NIBCO asks that this be found to be an exceptional case and asks that attorney’s fees be awarded pursuant to such a finding.  In its complaint, patent attorneys for NIBCO ask the court for:

  • Count I: Declaratory Judgment of Non-Infringement
  • Count II: Declaratory Judgment of Invalidity of the Patents-In-Suit

Practice Tip: In MedImmune v. Genentech, 549 U.S. 118 (2007), the U.S. Supreme Court revised the Federal Circuit’s test for ripeness under the Declaratory Judgment Act, which had required a reasonable apprehension of suit in order to establish jurisdiction.  The Court broadened the scope of declaratory judgment jurisdiction, holding that the totality of the circumstances should be evaluated in determining the existence of “a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant relief.” 

In this case, it is unclear whether the complaint adequately alleges, under the totality of the circumstances, a controversy of sufficient immediacy to warrant jurisdiction under the Declaratory Judgment Act. 

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Washington, D.C. — Raymond T. Chen has been confirmed to the United States Court of Appeals for the Federal Circuit.

Judge Chen was nominated to the Federal Circuit by President Barack Obama onThumbnail image for ray-chen-USPTO-official.jpg February 7, 2013.  On August 1, 2013, the United States Senate voted 97-0 to confirm his nomination.  Judge Chen assumed the duties of his office on August 5, 2013.

Prior to his confirmation, Judge Chen served as Deputy General Counsel for Intellectual Property Law and Solicitor at the United States Patent and Trademark Office from 2008 to 2013.  He was an Assistant Solicitor in that office from 1998 to 2008.  From 1996 to 1998, Judge Chen was a Technical Assistant at the United States Court of Appeals for the Federal Circuit.  Before joining the court staff, Judge Chen was an Associate with Knobbe, Martens, Olson & Bear from 1994 to 1996.  Before entering law school, Judge Chen worked as a scientist at Hecker and Harriman from 1989 to 1991.

Indianapolis, Indiana – The United States District Court for the Southern District of Indiana has granted a motion by Malibu Media of Los Angeles, California for default judgment against Kenny Griffith for infringement of the copyrighted work “Slow Motion” which has been registered by the U.S. Copyright Office.

In its complaint, Malibu Media alleged that Griffith and others directly and contributorily infringed its copyrighted work when they downloaded and disseminated without authorization, all or a portion of a movie owned by Malibu Media titled “Slow Motion” using BitTorrent, a peer-to-peer file sharing protocol.  The initial complaint was served upon eight defendants but was later severed.  Discussed in this opinion are the allegations, findings and judgments against Griffith only.

Malibu Media served Griffith with a summons and complaint on January 5, 2013.  He did not respond.  On April 1, 2013, default was entered as to Griffith by Southern District of Indiana Judge William T. Lawrence.  By virtue of this entry of default, it was established as a factual matter that Griffith had uploaded and downloaded all or a portion of the copyrighted work without authorization, and had also enabled countless unknown others to obtain the work in the process.

In the current default-judgment opinion, the court addressed requests by copyright attorneys for Malibu Media for two separate injunctions, for damages, for attorney’s fees and for costs.

The first injunction sought injunctive relief pursuant to 17 U.S.C. §§ 502 and 503.  The court noted that, under § 503(b), a court may order the destruction of all copies made or used in violation of the copyright owner’s exclusive rights.  Given the nature of the infringement that occurred in this case — participating in a “swarm” and downloading and uploading copyrighted work — the court found that this injunction was particularly appropriate.

The second injunction sought asked the court to prohibit Griffith “from directly, contributorily or indirectly infringing [Malibu Media’s] rights under federal or state law in the Work, including, without limitation, by using the internet, BitTorrent or any other online media distribution system to reproduce (e.g., download) or distribute the Works, or to make the Work available for distribution to the public, except pursuant to a lawful license or with the express authority of [Malibu Media].”  The court held that such an injunction was simply a mandate that Griffith follow copyright laws and that the injunction was therefore unnecessary.

The court also denied Malibu Media’s request for attorney’s fees and costs, noting that the fees submitted seemed to reflect legal work done not only in the furtherance of the lawsuit against Griffith, but also seemed to pertain to other related lawsuits involving the previously joined defendants.  As a result of these ambiguities, the court denied Malibu Media’s request for costs and attorney’s fees but indicated that it would be willing to entertain such motions — for attorney’s fees incurred as to Griffith only — upon the entry of final judgments as to all defendants in related cases.

Finally, Malibu Media sought statutory damages in the amount of $20,000.  The court cited “Congress’s recognition of the ‘disturbing trend’ of internet piracy” and found that amount to be just under the circumstances.

Practice Tip:

Deciding to simply ignore a complaint, as Kenny Griffith apparently did, can be a costly error.  Failing to present the defendant’s version of the facts and arguments results in the court considering only the plaintiff’s side of the story.  Here, because the defendant chose to leave the complaint unanswered, the well-pled allegations of the plaintiff relating to liability were taken as true.

After the entry of default judgment, the court then conducted an inquiry to ascertain the amount of damages with “reasonable certainty.”  Again, in such circumstances, it serves a defendant well to plead his case — to present the court with reasons that the plaintiff should not get 100% of what he requests.

Under 17 U.S.C. § 504(c)(1), a copyright owner may elect actual or statutory damages.  Statutory damages range from a sum of not less than $750 to not more than $30,000.  The determination of the exact amount is left to the discretion of the court.  In this case, Malibu Media asked the court for $20,000 and the court, having no arguments from the defendant to suggest that this was excessive, granted the entire amount.

Overhauser Law Offices, the publisher of this website, has represented several hundred persons and businesses regarding copyright infringement and similar matters.          

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Indianapolis, Indiana – Patent lawyers for Eli Lilly and Company (“Lilly”) of Indianapolis, Indiana are in trial again this week in the Southern District of Indiana pursuing patent-infringement allegations against five generic-drug challengers, including AAP Pharmaceuticals of Schaumberg, Illinois and Pliva Hrvatksa of Croatia.  At issue is Lilly’s patent on the use of Alimta in conjunction with specific vitamins; patents for the two Alimta treatments, both with and without the supplemental therapy, have been issued by the U.S. Patent Office

Lilly sells the drug Alimta to treat various types of lung cancer, Thumbnail image for logo.pngincluding mesothelioma.  However, certain side effects were troublesome, including treatment-related hematologic and gastrointestinal toxicity.  Deaths among some patients were attributed to treatment with Alimta.  In response to this concern, Lilly took the unusual step of mandating supplementation of the Alimta protocol with two vitamins, folic acid and vitamin B12.  The patentability of that idea is the focus of a patent challenge by five makers of generic drugs.

Patent-infringement litigation between brand-name manufacturers and generic-drug makers is common.  In a typical lawsuit, a company which wishes to sell a generic version of a brand-name drug, usually a widely used drug, will try to invalidate the patent on the drug, in the hopes that it could then offer the same drug in generic form.

This litigation is different from traditional patent litigation.  The original patent on Alimta, administered as a stand-alone treatment, protects only Alimta’s active ingredient.  That patent will expire in 2017.  However, the focus of the current litigation is on the combination treatment which involves both Alimta and the vitamin regimen.  The patent on the method of administration, if upheld, would expire in 2022.

The generic challengers contend in part that the patent on the combined therapy is invalid, arguing that someone knowledgeable about both nutrition and medicine could have easily concluded that supplementation with B12 and folate might alleviate certain side effects of Alimta.

Lilly, in contrast, argues that the vitamin regimen was not only counterintuitive when it was proposed, it was called “crazy” a leading cancer doctor before testing showed its benefits.

The case, which is before Judge Tanya Walton Pratt, began last Monday and is expected to continue another week.

Practice Tip:

Lilly is facing a significant patent cliff.  Its patent for a former top product, the antipsychotic Zyprexa – which once generated $5 billion in annual revenues – expired in 2011.  Its current top-selling drug, the antidepressant Cymbalta, will lose patent protection this year.  The patent on blockbuster Evista, a breast cancer drug, will expire in early 2014. 

Alimta is currently Lilly’s second-best-selling drug.  It generated $2.6 billion in sales last year, or about 11 percent of total Lilly’s revenue.  Since it was launched in 2004, Alimta has generated $12 billion in total sales for Lilly through 2012.

Under patent law, a court can deem a patent invalid if its claims are “obvious” and anticipated by previous research.  In this case, the court will weigh the merits of the separate “method-of-use” patent on the administration of Alimta with B12 and folic acid.

If successful in defending this patent, intellectual-property law will grant market exclusivity to Lilly until 2022, allowing it to exclude generic manufacturers and, thus, to charge the higher brand-name price for Alimta therapy.  If the patent is not upheld in this litigation, Lilly will lose the five additional years of exclusivity that the second patent would have afforded.

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Washington, D.C. — The U.S. Department of Commerce recently released a green paper on Copyright Policy, Creativity, and Innovation in the Digital Economy (the “Green Paper“) to advance discussion on a set of policy issues critical to economic growth.  The Green Paper discusses the goals of maintaining an appropriate balance between rights and exceptions as the law continues to be updated; ensuring that copyright can be meaningfully enforced on the Internet; and furthering the development of an efficient online marketplace.

The Green Paper is the most thorough and comprehensive analysis of digital copyright policy issued by any administration since 1995.  The report is a product of the Department of Commerce’s Internet Policy Task Force (“IPTF”) with input from the U.S. Patent and Trademark Office (“USPTO”) and the National Telecommunications and Information Administration (“NTIA”).  Through the IPTF, the USPTO and NTIA will solicit further public comments and convene roundtables and forums on a number of key policy issues.

“Copyright law strikes a number of important balances in delineating what is protectable and what is not, determining what uses are permitted without a license, and establishing appropriate enforcement mechanisms to combat piracy, so that all stakeholders benefit from the protection afforded by copyright,” said U.S. Secretary of Commerce Penny Pritzker.  “Ensuring that our copyright policy provides incentives for creativity while promoting innovation on the Internet is a critical and challenging task. The Green Paper released today is an important step toward ensuring that the United States’ creative industries continue to have a substantial impact on strengthening our nation’s economy.”

Copyright has been a vital contributor to U.S. cultural and economic development for more than two hundred years, fostering the production and dissemination of the valuable expression that has put America at the forefront of the global creative marketplace.  Maintaining a balanced and effective copyright system should continue to drive the production of creative works while at the same time preserving the innovative power of the Internet and the free flow of information.  The Green Paper provides a comprehensive review of current policy related to copyright and the Internet, and identifies important issues that call for attention and development of solutions.  The solutions may entail a combination of legal remedies, technology, private sector cooperation, and public outreach and education, along with the continued development of options to legally access copyrighted works.

In the Green Paper, the IPTF proposes the following actions:

·         Establishing a multi-stakeholder dialogue on improving the operation of the notice and takedown system under the Digital Millennium Copyright Act (“DMCA”).

·         Soliciting public comment and convening roundtables on:

o   The legal framework for the creation of remixes;

o   The relevance and scope of the first-sale doctrine in the digital environment;

o   The application of statutory damages in the context of individual file-sharers and secondary liability for large-scale online infringement;

o   The appropriate role for the government, if any, to help improve the online licensing environment, including access to comprehensive public and private databases of rights information.

“Copyright protection is a foundation for creative services and products that drive a significant part of the U.S. economy,” said Acting Under Secretary for Intellectual Property and Acting USPTO Director Teresa Stanek Rea.  “The Internet must continue to support a legitimate market for copyrighted works as well as provide a platform for innovation and the introduction of new and dynamic services that drive digital commerce.”

“We see a digital future in which the relationship among digital technology, the Internet, and creative industries becomes increasingly symbiotic,” said Assistant Secretary of Commerce for Communications and Information and NTIA Administrator Lawrence E. Strickling.  “In this digital future, the rights of creators and copyright owners are appropriately protected; creative industries continue to make their substantial contributions to the nation’s economic competitiveness; online service providers continue to expand the variety and quality of their offerings; technological innovation continues to thrive; and consumers have access to the broadest possible range of creative content.”

The Green Paper reiterates the Administration’s support for legislation creating a public performance right for the broadcasting of sound recordings and enabling prosecutors to seek felony penalties for unauthorized streaming to the public.  It supports congressional or regulatory attention to determine how best to rationalize rate-setting standards for different types of music services; reform music licensing, particularly the mechanical license for musical compositions; and ensure consumers can unlock their cell phones, subject to applicable service agreements.  It supports the U.S. Copyright Office’s work to address the problems of orphan works and mass digitization, consider possible small-claims procedures, update the statutory exception for libraries, and improve public registration and recordation systems.  The Green Paper also supports and encourages enhancing public education and outreach efforts. 

With respect to the difficulties in enforcement against websites dedicated to infringement, the Green Paper encourages ongoing voluntary initiatives, such as those facilitated by the U.S. Intellectual Property Enforcement Coordinator (“IPEC”), that benefit all parties and are consistent with the principles of privacy, free speech, competition, and due process, and states that the IPTF will follow these developments and assess their impact in order to determine whether additional action is needed.  The USPTO has also extended its request for comments regarding the processes, data metrics, and methodologies that could be used to assess the effectiveness of cooperative agreements and other voluntary initiatives to reduce intellectual property infringement.  This comment solicitation is part of the Administration’s 2013 Joint Strategic Plan for Intellectual Property Enforcement.

Then-Secretary of Commerce Gary Locke launched the IPTF in April 2010, bringing together the USPTO and NTIA, as well as the International Trade Administration (“ITA”), the National Institute of Standards and Technology (“NIST”), and the Economic and Statistic Administration (“ESA”) to conduct a comprehensive review of privacy policy, copyright, global free flow of information, cybersecurity, and their respective relationships to innovation in the Internet economy.  In preparing the Green Paper, USPTO and NTIA held more than a dozen listening sessions with interested stakeholders, convened a symposium, received hundreds of public comments, and reviewed comments submitted to other agencies on relevant topics. The IPTF will consider feedback it receives from public comments, roundtables and forums to determine how the current copyright framework can be improved to serve creators, right holders, service providers, consumers, innovation, and national economic goals.

The Green Paper can be found online at: http://www.uspto.gov/news/publications/copyrightgreenpaper.pdf.

Practice Tip: Among the issues to be considered as part of this initiative, public comment will be solicited regarding the application of statutory damages in the context of individual file-sharers.  This subject has created a considerable range of response from the judiciary.  On one end of the spectrum are opinions, for example, one citing a disturbing trend of internet piracy and another which assessed statutory damages of $150,000 in an illegal-downloading case in which the defendant did not appear to answer the allegations of infringement. 

On the other end of the spectrum are opinions such as Judge Otis Wright’s scathing indictment of copyright trolls.   In Judge Wright’s opinion, he details the abuse of the legal process committed under the authority of The Copyright Act.  In the now-famous “Star Trek”-themed order, Judge Wright began by opining, “Plaintiffs have outmaneuvered the legal system.  They’ve discovered the nexus of antiquated copyright laws, paralyzing social stigma, and unaffordable defense costs.  And they exploit this anomaly by accusing individuals of illegally downloading a single pornographic video.  Then they offer to settle–for a sum calculated to be just below the cost of a bare-bones defense.  For these individuals, resistance is futile; most reluctantly pay rather than have their names associated with illegally downloading porn.  So now, copyright laws originally designed to compensate starving artists allow, starving attorneys in this electronic-media era to plunder the citizenry.” 

Among other measures in this case, the Court awards attorney’s fees and costs in the sum of $40,659.86 to the defendant.  It then, as a punitive measure, doubled the award, yielding $81,319.72. 

Judge Wright later concluded with an explanation for the sanctions which he was imposing against the attorneys in the case, “though Plaintiffs boldly probe the outskirts of law, the only enterprise they resemble is RICO.  The federal agency eleven decks up is familiar with their prime directive and will gladly refit them for their next voyage.  The Court will refer this matter to the United States Attorney for the Central District of California.  The will also refer this matter to the Criminal Investigation Division of the Internal Revenue Service and will notify all judges before whom these attorneys have pending cases.  For the sake of completeness, the Court requests [defense counsel] to assist by filing a report, within 14 days, containing contact information for: (1) every bar (state and federal) where these attorneys are admitted to practice; and (2) every judge before whom these attorneys have pending cases.”  

 

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Indianapolis, Indiana — The Southern District of Indiana has granted a motion for default judgment by CP Productions, Inc. (“CP”) of Arizona, which had sued Gerald L. Glover, III (“Glover”) of Indianapolis, Indiana alleging infringement of the copyrighted work “GH Hustlers — Maryjane’s Second Visit” which has been registered by the U.S. Copyright Office.

CP produces adult-entertainment content.  Copyright lawyers for CP filed suit in the Southern District of Indiana alleging that Glover and his joint tortfeasors, without Plaintiff’s authorization or license, downloaded CP’s copyrighted work via the Internet.  Specifically, it was alleged that they had, knowingly and illegally, reproduced and distributed CP’s copyrighted creative work, and materially contributed to the infringing conduct of others by acting in concert via the BitTorrent file-sharing protocol.  CP also alleged that Glover was a serial infringer of copyrights in adult content stating that agents for CP had observed him infringing on multiple copyrighted works involving adult content.

In the complaint, CP’s attorneys listed counts of copyright infringement, civil conspiracy and contributory infringement.  CP sought statutory damages of $150,000 under the Copyright Act, 17 U.S.C. § 504 for Glover’s alleged willful infringement of CP’s copyright.  CP also asked the court for attorneys’ fees and costs of $1,425 under 17 U.S.C. § 505, for a total judgment of $151,425.  Glover did not respond to the complaint. 

Because he had failed to plead or otherwise defend in this action, despite having been properly served with a summons and a complaint, Judge Jane Magnus-Stinson ordered an entry of default against Glover for $151,425, the full amount requested.

Practice Tip: When a defendant fails to appear to address assertions of wrongdoing made by a plaintiff, the court takes as true all of the plaintiff’s well-pled allegations.  On Friday, we blogged about a default-judgment case wherein the defendant was ordered by the court to pay $20,000 for illegally downloading copyrighted material.  As the Glover case shows, however, damages for illegally downloading copyrighted material can be much higher.

 

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South Bend, Indiana — Lifetime Industries, Inc. (“LTI”) of Elkhart, Indiana has sued Trim-Lok, Inc. of Buena Park, California in the Northern District of Indiana alleging patent infringement of its “TWO-PART SEAL FOR A SLIDE-OUT ROOM,” Patent No. 6,966,590 (the “‘590 patent”), which has been issued by the U.S. Patent Office.

Plaintiff LTI’s claims are based on the allegedly unauthorized, infringing manufacture, use, importation, sale and/or offer for sale by Defendant Trim-Lok of its seal products including, for example, the two-part seal for a slide-out room product which is mountable to mobile living Trim-Lok-Logo.pngquarters.  LTI contends that these products include a mounting portion and a separate bulb portion that is slidably connected to the mounting portion. 

LTI claims that Trim-Lok’s actions infringe one or more claims of the ‘590 patent under the intellectual-property laws of the United States.  It further alleges that Trim-Lok has induced others, including its distributors, sales representatives, resellers, dealers and customers, to infringe at least claim 1 of the ‘590 patent by making, using, offering for sale and/or selling the allegedly infringing products.

LTI also asserts that Trim-Lok has known about the ‘590 patent since it was issued.  Finally, LTI states in its complaint that, on July 15, 2013, it gave actual notice to Trim-Lok of its belief that Trim-Lok was infringing the ‘590 patent.  Plaintiff LTI concludes that, consequently, Trim-Lok acted despite an objectively high likelihood that its actions constituted infringement of a valid patent and/or that it knew or should have known that its actions demonstrated infringement of a valid patent.  Accordingly, LTI accuses Trim-Lok’s actions, from at least July 15, 2013, of constituting willful infringement of the ‘590 patent.

In the complaint, filed by patent lawyers for LTI, a single claim of patent infringement, specifically “Infringement of the ‘590 Patent,” is made.  LTI asks the court for judgments that:

·         the ‘590 patent is directly infringed by Defendant;

·         the ‘590 patent is indirectly infringed by Defendant;

·         Defendant’s infringement of the ‘590 patent has been willful;

·         Defendant be preliminarily and permanently enjoined from manufacturing, using, selling and offering to sell the infringing products in the United States prior to the expiration of the ‘590 patent;

·         Plaintiff be awarded damages adequate to compensate it for Defendant’s infringement of the ‘590 patent including lost profits, but in an amount no less than a reasonable royalty, and that such damages be trebled according to 35 U.S.C. § 284; and

·         this case is exceptional within the meaning of 35 U.S.C. § 285, and that all costs and expenses of this action, including reasonable attorneys’ fees, be awarded to Plaintiff.

Practice Tip: A patent holder has the right to exclude others in the United States from using, selling, or attempting to sell the patented invention.  See 35 U.S.C. § 154(a)(1).  A patent has two chief parts.  First, it contains a specification describing the invention in such full, clear, concise, and exact terms as to enable any person skilled in the art to make and use the same.  Second, a patent includes one or more “claims,” which particularly point out and distinctly claim the subject matter which the applicant regards as his invention.  The claim defines the scope of a patent grant.

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