Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Oracle filed suit against SAP alleging that TomorrowNow, an enterprise software company recently acquired by SAP, was engaging in systematic and pervasive illegal downloading of Oracle's software. SAP stipulated to liability and the parties went to trial solely on damages. On appeal, Oracle challenged several of the district court's rulings. The court affirmed the district court's grant of judgment as a matter of law to SAP where the hypothetical-license damage award was based on undue speculation and Oracle failed to provide sufficient objective evidence of the market value of the hypothetical license underpinning the jury's damages award; for the same reasons, the court affirmed the district court's grant of SAP's motion for a new trial based on remittitur; and the court rejected Oracle's claim that the district court erred in limiting the second trial to damages based on a lost-profits and infringer's-profits theory, barring Oracle's pursuit of hypothetical-license damages. The court concluded that the district court, in selecting a $272 million remittitur amount, abused its discretion in selecting the $36-million lost-profits figure rather than the $120.7-million one. Therefore, the court vacated and remanded to the district court for it to offer Oracle the choice between a $356.7-million remittitur and proceeding to a second trial. The court affirmed on the four rulings related to the second trial and did not reach the questions presented by the other three rulings.View "Oracle Corp. v. SAP AG" on Justia Law

Clinton is a musician, bandleader, and touring performance artist. H&L, a law firm, represented Clinton in in 2005-2008, billed Clinton $3,341,650, received $1,000,578 in payment, and wrote off $600,000 of the remaining balance. This left $1,779,756.29 due. H&L initiated arbitration. Clinton did not participate; the panel ruled in favor of H&L. The district court confirmed the award of $1,675,639.82, plus interest plus $60,786.50 in attorney fees. H&L pursued collection, including garnishments, levies, and liens across the country. Clinton’s attorney declared that they created a financial “stranglehold” so that Clinton “[c]an’t pay his taxes … it is going to affect... his ability to make a living at 72 years old.” A year later, Clinton sued H&L for legal malpractice. H&L asserted counterclaims and sought an order authorizing the sale of master sound recording copyrights to satisfy its judgments. The district court appointed a receiver and authorized the receiver to use the copyrights to satisfy the judgments. Amending its earlier order, the Ninth Circuit affirmed. Under Washington law Clinton’s copyrights in the masters were subject to execution to satisfy judgments against him. Section 201(e) of the federal Copyright Act does not protect Clinton from the involuntary transfer of his copyrighted works. Clinton could raise claims of fraud on the court and judicial estoppel for the first time on appeal, but the claims were meritless.View "Hendricks & Lewis PLLC v. Clinton" on Justia Law

Musical artist George Clinton appealed the district court's order appointing a receiver and authorizing the sale of copyrights in an action against his former law firm. The firm obtained judgments against Clinton for past-due attorneys' fees and sought an order authorizing the sale of master recordings that Clinton recorded with the group Funkadelic (the "Masters") to satisfy the judgments. The court concluded that Clinton's copyrights in the Masters were subject to execution to satisfy judgments entered against him; Section 201(e) of the Copyright Act, 17 U.S.C. 201(e), does not protect Clinton from the involuntary transfer of his copyrighted works; the district court did not abuse its discretion by appointing a receiver to manage or sell ownership of these copyrights; Clinton may raise claims of fraud on the court and judicial estoppel for the first time on appeal, but both claims are meritless; and Clinton failed to raise his preemption, Erie Doctrine, and Due Process Arguments in the district court. Accordingly, the court affirmed the judgment of the district court. View "Hendricks & Lewis PLLC v. Clinton" on Justia Law

Alaska Stock, a stock photography agency, registered large numbers of photographs at a time under the Copyright Act, 17 U.S.C. 101 et seq., listing only some of the authors and not listing titles for each photograph. Alaska Stock licensed Houghton Mifflin to use pictures it had registered, for fees based on the number of publications. After Houghton Mifflin greatly exceeded the number of publications it had paid for, Alaska Stock filed suit for injunctive relief, actual and statutory damages, attorneys' fees, and costs. The court concluded that Alaska Stock successfully registered the copyright both to its collections and to the individual images contained therein; the statute required identification of the author and title of the "work," which was the collective work, and extended registration to the component parts if the party registering the collective work owned the copyright to the component parts, as Alaska Stock did; the procedure applied for over three decades by the Register of Copyrights to registration by stock photo agencies complied with the statutory requirements and did not violate any clear requirement to list individual authors and titles of the components within the work; the Register of Copyrights' reading that a collection of stock photos may be registered without individual titles, and without naming more than three of the authors and merely designating the number of authors, pursuant to an assignment in the language Alaska Stock used, was reasonable and persuasive; and therefore, the court reversed the district court's dismissal. View "Alaska Stock v. Houghton Mifflin" on Justia Law

Plaintiff was cast in a minor role in an adventure film with the working title "Desert Warrior." The film never materialized and plaintiff's scene was used, instead, in an anti-Islamic film titled "Innocence of Muslims." The film was uploaded to YouTube.com and her brief performance was dubbed over so that she appeared to be asking, "Is your Mohammed a child molester?" An Egyptian cleric subsequently issued a fatwa, calling for the killing of everyone involved with the film. After Google refused to take it down from YouTube, plaintiff sought a restraining order seeking removal of the film, claiming that the posting of the video infringed the copyright in her performance. The district court treated the application as a motion for a preliminary injunction but denied the motion. The court concluded that plaintiff demonstrated a likelihood of success on the merits where plaintiff had an independent copyright interest in her performance; the work for hire doctrine was inapplicable in this instance because plaintiff was not a traditional employee and the filmmaker was not in the regular business of making films; and although plaintiff granted the filmmaker an implied license to use plaintiff's performance, the filmmaker exceeded the bounds of the license when he lied to plaintiff in order to secure her participation and she agreed to perform in reliance on that lie. The court also concluded that plaintiff faced irreparable harm absent an injunction where plaintiff took legal action as soon as the film received worldwide attention and she began receiving death threats; the harm plaintiff complained of was real and immediate; and plaintiff demonstrated a causal connection because removing the film from YouTube would help disassociate her from the film's anti-Islamic message and such disassociation would keep her from suffering future threats and physical harm. Finally, the balance of the equities and the public interest favored plaintiff's position. Accordingly, the court concluded that the district court abused its discretion in denying the motion for a preliminary injunction. The court reversed and remanded. View "Garcia v. Google, Inc." on Justia Law

Inhale claimed copyright protection in the shape of a hookah water container that it first published in 2008 and registered with the United States Copyright Office in 2011. Inhale filed suit against Starbuzz for copyright infringement, claiming that Starbuzz sold water containers that were identical in shape to Inhale's container. The district court granted summary judgment in favor of Starbuzz after determining that the shape of the water container was not copyrightable. The court concluded that the shape of a container is not independent of the container's utilitarian function - to hold the contents within its shape - because the shape accomplishes the function. Therefore, the district court correctly concluded that the shape of Inhale's hookah water container was not copyrightable. Further, the district court did not abuse its discretion under 17 U.S.C. 505 by awarding attorneys' fees to Starbuzz. Moreover, the court awarded attorneys' fees incurred in the defense of this appeal to Starbuzz under section 505 in an amount to be determined by the district court. Accordingly, the court affirmed the district court's judgment and remanded. View "Inhale, Inc. v. Starbuzz Tobacco, Inc." on Justia Law

Defendant appealed his conviction for criminal copyright infringement based on his sale of Adobe software. The court applied the willfulness standard for criminal copyright cases as recently clarified in United States v. Liu and concluded that the jury instruction was flawed but did not rise to the level of plain error; the evidence of uncharged acts was properly admitted as intrinsic to the charged conduct and the court affirmed the conviction; and the district court erred in failing to award restitution reflecting the victim's actual loss and the court vacated the restitution order and remanded for reconsideration. View "United States v. Anderson, Jr." on Justia Law

This appeal stemmed from Seven Arts's attempts to establish ownership of copyrights in several motion pictures: "Rules of Engagement," "An American Rhapsody," and "Who is Cletis Tout?" Seven Arts filed suit against Paramount and Content Media for copyright infringement, a declaration of ownership rights, and an accounting, seeking a declaration that neither Content Media, nor its predecessors-in-interest, CanWest, was the owner or grantee of rights to the films. The action was filed over three years after Paramount plainly and expressly repudiated Seven Arts's copyright ownership by choosing to continue paying royalties to CanWest and Content Media, rather than to Seven Arts's predecessors. The court joined its sister circuits in holding that an untimely ownership claim will bar a claim for copyright infringement where the gravaman of the dispute was ownership, at least where, as here, the parties were in a close relationship. The court affirmed the judgment of the district court, concluding that the district court properly dismissed the suit because it was apparent from the complaint that Paramount clearly and expressly repudiated Seven Arts's ownership of the copyrights more than three years before Seven Arts brought suit. View "Seven Arts v. Content Media" on Justia Law

Plaintiff filed suit against Green Day and others, alleging violations of the Copyright Act, 17 U.S.C. 101 et seq., and the Lanham Act, 15 U.S.C. 1051 et seq., because Green Day used plaintiff's illustration, "Scream Icon," in the video backdrop of its stage show. On appeal, plaintiff challenged the district court's grant of summary judgment in favor of Green Day on all claims and the grant of attorney's fees to Green Day under the Copyright Act. The court concluded that Green Day's use of the illustration was fair use under the Copyright Act where the purpose and character of the use was transformative and not overly commercial; the nature of the work included its status as a widely disseminated work of street art; Green Day's use of the work was not excessive in light of its transformative purpose; and Green Day's use did not affect the value of the piece or of plaintiff's artwork in general. In regards to plaintiff's claims under the Lanham Act, the court concluded that plaintiff failed to establish any trademark rights. The court concluded, however, that the district court clearly erred in finding that plaintiff's claims were objectively unreasonable. Accordingly, the court affirmed the district court's grant of summary judgment but vacated the award of attorneys fees. View "Seltzer v. Green Day, Inc., et al." 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