8th Cir: Famous Dave's Magic Words: Copyright Assignments and Settlement Agreements

In Thomsen v. Famous Dave's of America, 2010 WL 2219051 (8th Cir. May 12, 2010), the Eighth Circuit Court of Appeals found the following provision in a settlement agreement to be a valid copyright assignment:

"Al is releasing all copyright, proprietary design and sign work to [Famous Dave's] in all other restaurants that he has worked on with the exception of [signature restaurants]."

Quoting the Ninth Circuit, the Court noted:  "A transfer of ownership requires no "magic words" to satisfy copyright law: even a one-line pro forma statement will do."

The Court found the assignment to be a "clear conveyance".

Practice Tip:  An assignee is considered a "beneficial owner" of a copyright under the Copyright Act 17 U.S.C. 501(b) and is entitled to sue for infringement.   I cover Copyright Ownership and Licensing Litigation in more detail in Chapter 8 of Copyright Litigation Handbook.

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9th Circuit: Through the Brooklyn Lorgnette - EDNY USDJ Sez Copyright Application is "Registration"

"Lady Caroline Lorgnette" from Los Angeles Iptrademarkattorney.com

In Cosmetic Ideas, Inc. v. IAC, No. 08-56079 (May 25, 2020), USDJ David G. Trager from the EDNY (Brooklyn), wrote a thoughtful and sensible opinion that eliminates one of the major annoyances facing copyright litigants in a rush, but who don't want to pay the Copyright Office's spectacularly high "special handling" fees.   The case involved a cosmetic jeweler's case against the Home Shopping Network.

The issue, recently brought to the fore in the recent Supreme Court case Reed-Elsevier, Inc. v. Muchnick, ___ U.S.___, 130 S.Ct. 1237 (2010), was this:

If you file an application with the Copyright Office, but the Register of Copyrights hasn't registered it, can you file a lawsuit before you get the registration certificate?

SCOTUS noted in Reed-Elsevier, Inc. v. Muchnick that the Circuit courts were divided over the issue, but it wasn't the precise issue before them, so declined to resolve it. Reed-Elsevier, Inc. v. Muchnick decided that the Copyright Act 17 usc 411's requirement that a copyright claimant's claim be registered was a "claim processing rule" and did not implicate the court's subject matter jurisdiction.

Cosmetic Ideas, Inc. v. IAC, the Ninth Circuit analyzed seemingly conflicting provisions in the Copyright Act for clues, but didn't find the answer.  Relying on a common sense practical approach, it went with registration occurring upon the filing of the application.

I have had a couple of cases before Judge Trager, and he taught my brother at Brooklyn Law School.  He is liked and respected among the local bar and bench.

Let's hope that the Second Circuit follows the Brooklyn approach adopted by the Ninth Circuit.

Practical Implications:  In the Ninth Circuit (and those Circuits following the application rule), just apply and get proof of receipt by the Copyright Office.  With that in hand, you can sue.  For the rest of us, unless you want to be a test case, get your certificate through the Copyright Office's Special Handling Procedures (Copyright Litigation Handbook Chapter 4)

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Knowledge Management: Third Party Infringers Have No Standing To Challenge Assigment

http://www.kmpro.org/

KMMentor, LLC v. Knowledge Management Professional Soc., Inc., 2010 WL 1946339, 1 (D.Kan.) (D.Kan. May 13, 2010)

“Knowledge is a process of piling up facts; wisdom lies in their simplification.” FN1 This case involves several parties engaged in the knowledge management field, a field that creates and uses data and information to manage knowledge. The proceedings so far have been highly contentious, and the parties have compiled numerous facts but have not simplified the process.

So opens a case involving a bitter struggle among knowledge managers.  Defendant alleges that plaintiff's evidence is insufficient to show copyright ownership, relying on 17 USC 204(a).   204(a) provides
§ 204. Execution of transfers of copyright ownership


(a) A transfer of copyright ownership, other than by operation of law, 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.

Problem was, the copyright owner (exclusive licensee) listed in the Complaint was not the owner registered with the Copyright Office.  The record owner/author had apparently given an exclusive license that had not been written down or recorded with the Copright Office.

The court said that a third party infringer couldn't invoke 17 usc 204(a) and relied on the following cases:

Billy-Bob Teeth, Inc. v. Novelty, Inc., 329 F.3d 586, 592-93 (7th Cir.2003); Imperial Residential Design, Inc. v. Palms Dev. Group, Inc., 70 F.3d 96, 99 (11th Cir.1995). See also X-IT Products, 155 F.Supp.2d at 603-04.


Practice Tip:  We all get caught in certain situations and it's great to have some case law to pull us out.  But the better practice, and I'd say the far better practice is to marshal the evidence that your client owns a copyright, get it in writing, and record it before you start a lawsuit.  For a fuller discussion of these issues. Check out Chapter 3:  The Client Interview and Initial Investigation and Chapter 4:  The Copyright Office: Litigation Practice in my Copyright Litigation Handbook.

In Chapter 9: Motions Attacking the Complaint, I have a section called "Motions to Dismiss for Lack of Standing".  You will find there how to craft an assignment that deals with accrued litigations and what the assignment needs to say to give an assignee standing.