Alaska Stock, LLC v. Pearson Education, Inc.
Alaska Stock, LLC v. Pearson Education, Inc.
Opinion of the Court
I. INTRODUCTION
This is an action by Plaintiff Alaska Stock, LLC (“Alaska Stock”) against Pearson Education, Inc. (“Pearson”) and several pseudonymously named parties for copyright infringement and fraud.
II. FACTUAL BACKGROUND
Many of the facts underlying this case are undisputed. Alaska Stock is a stock photography company that licenses the photographs taken by approximately 200 photographers to a number of publishers, including Pearson.
Each time Pearson sought to obtain a license, Pearson sent Alaska Stock a “billing request.”
Alaska Stock responded to Pearson’s billing requests by sending invoices. Each invoice expressly detailed the scope of the license and the price Pearson was required to pay for its use of the image.
Effective July 19, 2006, Alaska Stock and Pearson entered into a “preferred vender agreement” (“PVA”), which established pricing terms for Pearson’s use of Alaska Stock’s photographs.
After the PVA was executed, Pearson continued to send billing requests and Alaska Stock continued to send licenses. For example, on or about August 17, 2007, Alaska Stock sent Pearson an invoice, licensing Pearson to use image 147, a photograph of a caribou overlooking a lake.
In May 2008, Alaska Stock received a billing request from Pearson in which it sought to reuse a photograph it previously used in a 2006 publication.
Following Pearson’s disclosure, Alaska Stock began to wonder whether Pearson had reproduced photographs beyond the limits of its other licenses.
Between December 2008 and July 2011, many of the photographers whose images were licensed to Pearson executed agreements in which they assigned ownership of their copyrights to Alaska Stock.
The undersigned photographer, the sole owner of the copyrights in the undersigned’s images (“the Images”) ... hereby grants to Alaska Stock all copyrights and complete legal title in the Images. Alaska Stock agrees to reassign all copyrights and complete legal title back to the undersigned immediately upon resolution of infringement claims brought by Alaska Stock relating to the Images.
The undersigned agrees and fully transfers all right, title, and interest in any accrued or later accrued claims ... brought to enforce copyrights in the Images, appointing and permitting Alaska Stock to prosecute said accrued or later accrued claims ... as if it were the undersigned.
Any proceeds obtained by settlement or judgment for said claims shall, after deducting all costs, expenses and attorney’s fees, be divided and paid as per the photographer contract of 40% for the undersigned and 60% for Alaska Stock.33
By the end of July 2011, the images underlying Alaska Stock’s claims were re-registered with the Copyright Office and new certificates of registration were issued, listing Alaska Stock as the registered copyright owner.
On August 12, 2011, Alaska Stock filed its currently pending complaint against Pearson, alleging that Pearson committed copyright infringement by exceeding the scope of its licenses (or, in one case, using a photograph without a license) with respect to over 200 of its photographs.
III. LEGAL STANDARD
Summary judgment is warranted when the pleadings and the evidence in the record “show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.”
Generally, it is the moving party that must demonstrate that it is entitled to summary judgment.
IV. DISCUSSION
A. Alaska Stock’s Summary Judgment Motion
Aaska Stock moves for partial summary judgment solely on the issue of liability on 27 of its copyright infringement claims. Pearson opposes the motion, arguing that material questions of fact exist with respect to: (1) whether the claims are time-
1. Statute of Limitations
Pearson argues, both in opposition to Alaska Stock’s motion and in support of its own motion, that Alaska Stock’s claims are barred by the statute of limitations.
The Copyright Act provides that “[n]o civil action shall be maintained under the provisions of [the Act] unless it is commenced within three years after the claim accrued.”
Alaska Stock filed its complaint on August 12, 2011.
However, the parties have used an “all or nothing” approach in briefing the statute of limitations issue and did not identify for the Court the claim or claims linked to this particular overuse by Pearson. From the record, it appears that the book title and ISBN number discussed in the parties’ May 2008 through July 2008 email exchanges match the title and ISBN number associated with images 18 and 19 in Exhibit 1 to the complaint.
Apart from the two claims discussed above, the Court is not persuaded by Pearson’s argument that Alaska Stock’s copyright infringement claims accrued outside of the three-year limitations period. Despite Alaska Stock’s frequent requests for Pearson’s print run information related to other licenses, Pearson did not provide any such information until September 22, 2008, when it disclosed only two additional instances of overprinting.
In sum, issues of fact preclude summary judgment in favor of Alaska Stock on the claims associated with images 18 and 19. With respect to the remaining
2. Standing
Pearson next argues that Alaska Stock does not have standing to assert its copyright infringement claims because it was assigned only “the bare right to sue” and was not granted actual ownership of the copyrights.
The Copyright Act restricts the individuals and entities who are entitled to bring an action for infringement to those who qualify as “the legal or beneficial owner of an exclusive right under a copyright.”
In determining whether an agreement has transferred an exclusive right, in addition to the right to sue, courts “look not just at the labels parties use but also at the substance and effect of the contract.”
Ninth Circuit authority directly relevant to Pearson’s standing argument is limited. In Silvers v. Sony Pictures Entertainment, the Ninth Circuit established that “[t]he bare assignment of an accrued cause of action is impermissible” under the Copyright Act.
Following Silvers, in Nafal v. Carter, the Ninth Circuit affirmed the decision of a district court in a case involving a less straightforward assignment.
More recently, in Righthaven LLC v. Hoehn, the Ninth Circuit considered an assignment agreement that purported to transfer both the right to sue and various exclusive rights, but was limited by a preexisting contract.
Prior to executing the assignment, however, Righthaven entered into a separate contract with the assignor, which placed “limits on what Righthaven could do with any copyright assigned to it.”
Here, Pearson asserts that questions of fact exist regarding Alaska Stock’s standing to bring this action. The Court disagrees. Unlike the agreements at issue
In sum, the Court is not convinced that Alaska Stock lacks standing to bring this action.
3. Copyright Registration
Pearson also challenges the validity of Alaska Stock’s copyright registrations. Specifically, Pearson argues that Alaska Stock has failed to provide copies of the deposits (the actual photographs) on file with the Copyright Office and has therefore failed to establish that it owns copyrights to those images.
A registered copyright is generally a precondition to a copyright infringement claim.
Here, Alaska Stock submitted certificates of registration for each of the images with respect to which it seeks summary judgment.
The certificates themselves do not include a meaningful description of the images to which they apply. Each certificate merely provides a series of numbers and letters as the “Title of Work,” and lists “photograph(s)” as the work created by the author.
In response to Pearson’s challenge, Alaska Stock cites the general rule governing summary judgment motions, asserting that Pearson has not “come forward with specific facts showing that there is a genuine issue for trial” and cannot prevent summary judgment merely by stating that Alaska Stock has not presented evidence of the deposits.
There is little law directly on point, and the briefing provides little guidance. Pearson cites two cases; Alaska Stock cites none.
In Corbis Corp. v. Amazon.com, Inc., the Western District of Washington considered a substantially similar argument, in which the defendant asserted that it was entitled to summary judgment because the plaintiff, by not showing that a particular photograph was covered by the certificates
In Lanard Toys Ltd. v. Novelty, Inc., the Central District of California considered this issue in the context of a motion for preliminary injunction.
Like the certificates in Corbis and Lanard Toys, the certificates of registration in this case do not provide the details necessary to confirm that the image or images relating to Alaska Stock’s claims are the same images underlying the certificates of registration. Under these circumstances, the Court concludes that a genuine issue of material fact exists such that summary judgment in favor of Alaska Stock is inappropriate with respect to the 26 claims not covered by the presumption of validity.
4. Implied License
In most of its claims, Aaska Stock alleges that Pearson used photographs beyond the scope of express licenses. But, in its claim pertaining to image 217, Aaska Stock alleges that Pearson engaged in copyright infringement by printing the image with no license at all.
Athough “transfers of copyright ownership must be in writing, “[a] nonexclusive license may be granted orally, or may even be implied from conduct.”
In similar litigation against Pearson, other courts have reached differing conclusions on substantially the same argument. In Psihoyos Education v. Pearson, the Southern District of New York found that material issues of fact precluded summary judgment on the issue of an implied license, in part, because the parties’ prior dealings suggested that, with the plaintiffs knowledge, Pearson sometimes published images before finalizing permission.
Pearson supports its position, in part, by pointing to evidence that over a 12-year business relationship, Alaska Stock “never denied a request by Pearson for a license” and seemed to have a “policy of [ ] granting Pearson whatever rights it requested.”
Nevertheless, the Court finds that there exists at least some evidence to create a triable issue of fact with respect to whether Pearson had an implied license. For example, the following exchange took place at the deposition of Alaska Stock’s president, Jeffrey Schultz:
Q: [After you became aware of Pearson’s overprinting,] you [] continued asking for new licenses for new images so that [Pearson would] continue to use your images, correct?
A: Yes.
Q: And you [asked to be part of] their in-house image system so that [ ] Pearson’s researchers [could] use [the images] as they needfed] to?
A: Right.
Q: Use Alaska Stock’s images as they want[ed]? Yes?
A: Yes.
Q: And then send a [purchase order]? A: Yes.
Q: When they’re used?
A: Correct?
Q: After they’re used?
A: Correct.125
Aside from this deposition excerpt, none of the evidence to which Pearson points suggests that Pearson was free to use a photograph for which it had no license, or to postpone requesting a license for more than six months after publishing an image.
B. Defendant’s Summary Judgment Motion
Pearson moves for summary judgment on Alaska Stock’s claims in their entirety.
For the reasons explained previously, Pearson’s motion for summary judgment based on its statute of limitations defense is denied. For the reasons discussed below, the Court finds that Pearson is entitled to summary judgment on the 78 claims for which Alaska Stock has submitted no evidence, but rejects Pearson’s other arguments.
1. Breach of Contract vs. Copyright Infringement
Pearson asserts that it is entitled to summary judgment on Alaska Stock’s copyright infringement claims because any violation of the terms of its licenses amounted to a breach of covenants, which gives rise only to a breach of contract action.
“To recover for copyright infringement based on breach of a license agreement, (1) the copying must exceed the scope of the defendant’s license[,] and (2) the copyright owner’s complaint must be grounded in an exclusive right of copyright (e.g., unlawful reproduction or distribution).”
[CJonsider a license in which the copyright owner grants a person the right to make one and only one copy of a book ■with the caveat that the licensee may not read the last ten pages. Obviously, a licensee who made a hundred copies of the book would be liable for copyright infringement because the copying would violate the Copyright Act’s prohibition on reproduction and would exceed the scope of the license. Alternatively, if the licensee made a single copy of the book, but read the last ten pages, the only cause of action would be for breach of contract, because reading a book does not violate any right protected by copyright law.136
Alaska Stock’s claims that Pearson exceeded the scope of its various licenses with respect to the number of publications in which an image could appear is no different from the Ninth Circuit’s example of the person who made a hundred copies of a book while licensed to make only one.
As the District of Hawaii recently concluded in Pacific Stock, because Alaska Stock’s claims “go to exceeding the scope of an exclusive right of copyright granted in various licenses, as opposed to a covenant contained in those licenses,” Alaska Stock can maintain its copyright infringement claims against Pearson.
Accordingly, Pearson’s request for summary judgment on this basis is denied.
2. Rule 26 Disclosures
Pearson separately asserts that it is entitled to summary judgment because Alaska Stock failed to provide supplemental information regarding its damages calculations as required by Federal Rule of Civil Procedure 26.
Rule 26(a)(l)(A)(iii) requires parties to make initial disclosures, including their computation of damages. Rule 37(c)(1) provides that if a party fails to provide disclosures under Rule 26(a), “the party is not allowed to use that information ... to supply evidence on a motion, at a hearing, or at a trial, unless the failure was substantially justified or is harmless.”
1. Alaska Stock seeks damages pursuant to 17 U.S.C. 504(b) as set forth in the Complaint, for actual licensing fees it is owed as a result of Defendants’ authorized, infringing uses of the Images.
2. Alaska Stock seeks all revenues from Defendants’ unauthorized, infringing uses of the Images pursuant to 17 U.S.C. 504(b), except to the extent that Defendants can prove elements of profit attributable to factors other than Defendants’ unauthorized, infringing uses of the Images —
3. Where applicable, and at Alaska Stock’s election, Alaska Stock seeks statutory damages pursuant to 17 U.S.C. 504(c).
8. Said damages and interest will be calculated following the disclosure of relevant facts presently known only to Defendants.140
In response to Pearson’s motion, Alaska Stock asserts that it could not calculate its actual damages or provide revenue numbers until Pearson disclosed its print run information and the revenue it received for the books in which Alaska Stock’s images were printed.
According to Pearson, because Alaska Stock was late in providing damages calculations, Pearson is entitled to summary judgment on all of Alaska Stock’s claims.
This ease is also unlike Use Techno Corp. v. Kenko USA, Inc., in which the plaintiff alleged numerous instances of false advertising and sought damages relating to the defendant’s profits.
Here, Pearson was not only already in possession of information regarding its profits and revenue, but could also independently identify the publications in which it had printed Alaska Stock’s images beyond the limits of its licenses.
The Court agrees with Pearson that Alaska Stock was obligated to provide its damages information sooner than it did. However, the Court concludes that Alaska Stock’s delay in disclosing the information was harmless. Pearson does not identify any specific surprise or prejudice it suffered as a result of the tardy disclosure, and it does not assert that Alaska Stock’s failure to produce the information in a timely manner was the product of willfulness or bad faith.
3. Fraud Claims
Pearson seeks summary judgment on Alaska Stock’s fraud claims on the basis that Alaska Stock “has not proffered any evidence of fraud.”
Alaska Stock’s fraud claims correspond to Pearson’s overuse of Alaska Stock’s photographs in three of Pearson’s textbooks.
As circumstantial evidence of Pearson’s knowledge and intent, Alaska Stock points to Pearson’s pre-publication print run forecast for one of the textbooks which shows that Pearson forecasted a greater number of books than the number of uses for which it requested licenses.
4. Other Copyright Infringement Claims
Finally, Pearson seeks summary judgment on 78 of Alaska Stock’s copyright infringement claims because Alaska Stock has presented no evidence to support them.
For the foregoing reasons, Alaska Stock’s summary judgment motion at Docket 99 is DENIED, and Pearson’s summary judgment motion at Docket 92 is GRANTED, in part, and DENIED, in part.
. Dkt 1.
. Dkt. 92; Dkt. 99.
. Dkt. 99-3 at 3; Dkt. 129-3 at 21.
. Dkt. 99-3 at 3.
. Id. at 3-4.
. See Dkt. 99-6; see also Dkt. 94 at 2.
. The image numbers cited by the Court throughout this order correspond to the numbers listed in Exhibit 1 to the Complaint. See Dkt. 1-1.
. See Dkt. 99-6 at 2-4; Dkt. 100-1 at 3.
. Dkt. 99-6 at 2-4.
. See Dkt. 99-7.
. Dkt. 99-8 at 5.
. Id.
. Id.
. Id.
. Dkt. 99-10.
. Id. at 6.
. Id.
. Id.
. Dkt. 99-9 at 11.
. Id.
. Id.
. Dkt. 118 at 7; see also Dkt. 118-6 at 20.
. Dkt. 118 at 7.
. Id.
. Id.; Dkt. 118-6 at 18.
. Dkt. 118 at 7.
. Dkt. 118-6 at 16, 18.
. Dkt. 118 at 8.
. Dkt. 118 at 8; Dkt. 118-6 at 16.
. Dkt. 118 at 8; Dkt. 118-6 at 12. Between July 22, 2008, and September 22, 2008, Alaska Stock and Pearson exchanged numerous contacts regarding the status of Alaska Stock's request. See Dkt. 118-6 at 12-16.
. Dkt. 118 at 9; Dkt. 118-6 at 8-11.
. Dkt. 99-4.
.See id.
. See Dkt. 99-5.
. Dkt. 1; Dkt. 1-1.
. Dkt. 1.
. See Dkt. 90; Dkt. 165 (August 15, 2013 Order granting motion for voluntary dismissal).
. See Dkt. 99 (seeking summary judgment with respect to image numbers 3, 4, 18, 19, 20, 26, 29, 30, 31, 33, 45, 47, 54, 56, 57, 59, 60, 62, 63, 64, 69, 83, 84, 98, 108, 147, 217).
. See Dkts. 100 through 100-5.
. SeeDkt. 93; Dkt. 128.
. Fed.R.Civ.P. 56(c).
. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248-49, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).
. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Nissan Fire & Marine Ins. Co. v. Fritz Co., Inc., 210 F.3d 1099, 1102-03 (9th Cir. 2000).
. Celotex, 477 U.S. at 323, 106 S.Ct. 2548.
. Id.
. Id.
. Fed.R.Civ.P. 56(e); Celotex, 477 U.S. at 324, 106 S.Ct. 2548; Anderson, 477 U.S. at 256, 106 S.Ct. 2505.
. Celotex, 477 U.S. at 322, 106 S.Ct. 2548; Anderson, 477 U.S. at 252, 106 S.Ct. 2505.
. Pearson raises two additional arguments in opposition to Alaska Stock’s summary judgment motion — (1) that Alaska Stock’s claims should have been brought under contract law, and (2) that summary judgment should be denied because Alaska Stock has failed to comply with Federal Rule of Civil Procedure 26. See Dkt. 128. Because of the manner in which the Court resolves Alaska Stock's summary judgment motion, the Court defers discussion of these additional arguments to its consideration of Pearson’s summary judgment motion, in which Pearson makes identical arguments.
. Dkt. 93; Dkt. 128. The statute of limitations is an affirmative defense, even when raised in a summary judgment motion, and the burden of proof lies with the defendant who raises it. See Pacific Stock v. Pearson Educ., Inc., 927 F.Supp.2d 991, 1001-02 (D.Hawai’i 2013); Entous v. Viacom Int'l, Inc., 151 F.Supp.2d 1150, 1154 (C.D.Cal. 2001).
. 17 U.S.C. § 507(b).
. Roley v. New World Pictures, Ltd., 19 F.3d 479, 481 (9th Cir. 1994).
. Polar Bear Prods., Inc. v. Timex Corp., 384 F.3d 700, 706 (9th Cir. 2004) (statute of limitations may bar copyright infringement claim where "plaintiff filed [his] copyright claim more than three years after [he] discovered or should have discovered infringement”).
. In re Napster, Inc. Copyright Lit., No. 00-cv-1369, 2005 WL 289977, at *4 (N.D.Cal. Feb. 3, 2005) (citing Polar Bear Prods., 384 F.3d at 707) (a cause of action does not accrue until the plaintiff "learned or by reasonable diligence could have learned that he had a cause of action”).
. See Dkt. 1.
. See Dkt. 128 at 8-10.
. Id. at 9.
. Id.
. Id.
. See Dkt. 118-6 at 18; Dkt. 118 at 7.
. Compare Dkt. 118-6 at 18 with Dkt. 1-1 at 3.
. See Dkt. 118-6; Dkt. 100-1 at 6.
. See Dkt. 118-6 at 12.
. Id. at 16.
. Pearson alternatively asserts the doctrine of laches. A copyright holder is "vulnerable to the laches defense if he had knowledge of a planned infringement more than three years prior to filing his action, even if he complied with the statute of limitations by filing less than three years after the infringement actually began.” Kling v. Hallmark Cards, Inc., 225 F.3d 1030, 1036 (9th Cir. 2000). The Court rejects this argument for the same reasons it rejected the statute of limitations argument. Pearson has not shown that, prior to the start of the three-year statute of limitation period, Alaska Stock was aware of anything more than one instance of overprinting.
. Dkt. 128 at 18-21.
. Righthaven LLC v. Hoehn, 716 F.3d 1166, 1169 (9th Cir. 2013) (quoting 17 U.S.C. § 501(b)) (emphasis added); Silvers v. Sony Pictures Entert., Inc., 402 F.3d 881, 884 (9th Cir. 2005) (en banc) ("[t]o be entitled to sue for copyright infringement, the plaintiff must be the legal or beneficial owner of an exclusive right under a copyright”) (citation and internal quotations omitted).
. Righthaven, 716 F.3d at 1169 (citing 17 U.S.C. § 106).
. Righthaven, 716 F.3d at 1169.
. Silvers, 402 F.3d at 890 n. 1; see also 17 U.S.C. § 201(d)(1) ("The ownership of a copyright may be transferred in whole or in part....”); Sybersound Records, Inc. v. UAV Corp., 517 F.3d 1137, 1145-46 (9th Cir. 2008) ("ownership of a copyright may be transferred in whole or in part by any means of conveyance”).
. Righthaven, 716 F.3d at 1169-70.
. Id.
. See id. at 1170-72.
. 402 F.3d at 890.
. Id. at 883.
. 388 Fed.Appx. 721 (9th Cir. 2010) (unpublished).
. 540 F.Supp.2d 1128 (C.D.Cal. 2007), aff'd, Nafal v. Carter, 388 Fed.Appx. 721.
. Nafal, 540 F.Supp.2d at 1142.
. Id. at 1141-44 ("Essentially, [the pllaintiff [wa]s no more than the individual designated by [the assignor] to enforce the [l]icense [agreement at [the assignor's] whim.”).
. Righthaven, 716 F.3d 1166.
. Id. at 1170.
. Id.
. Id.
. Id.
. Id.
. See Dkt. 99-4.
. See Dkt. 99-5.
. See, e.g., Jules Jordan Video, Inc. v. 144942 Canada Inc., 617 F.3d 1146, 1156 (9th Cir. 2010) (likening copyrights to "any other property right" and discussing the means by which copyrights may be transferred).
. At least two district courts have now considered the issue of standing in contexts similar to this case and have reached conflicting decisions. Compare Minden Pictures, Inc. v. Pearson Educ., Inc., 929 F.Supp.2d 962, 965 (N.D.Cal. 2013) (finding no standing) with Pacific Stock, Inc. v. Pearson Educ., Inc., 927 F.Supp.2d 991, 996-97, 1006-07 (D.Hawai’i 2013) (concluding that an assignment substantially similar to Alaska Stock’s was sufficient to confer standing). Pearson submitted Minden Pictures as supplemental authority in support of its motion. See Dkt. 158. However, Minden is distinguishable. See 929 F.Supp.2d at 965-71 (basing its standing decision, in part, on the fact that the plaintiff had engaged in a scheme to back-date assignments so that they would pre-date the filing of the complaint and had admitted that the only purpose for which it could use the assignment was to bring the lawsuit). Moreover, to the extent the Minden court relied on Silvers, Righthaven, or Nafal to find lack of standing on facts similar to those here (which it did), this Court cannot agree. There is nothing in these appellate decisions to suggest that a copyright owner’s reason for transferring ownership, or the fact that rights are transferred for a limited period of time, negates an otherwise effective assignment.
. 17 U.S.C. § 411.
. Fleischer Studios, Inc. v. A.V.E.L.A., Inc., 654 F.3d 958, 962 (9th Cir. 2011) (citing Litchfield v. Spielberg, 736 F.2d 1352, 1355 (9th Cir. 1984)).
. Entm’t Research Grp., Inc. v. Genesis Creative Grp., Inc., 122 F.3d 1211, 1217 (9th Cir. 1997).
. Id. (citing Masquerade Novelty, Inc. v. Unique Indus., Inc., 912 F.2d 663, 669 (3rd Cir. 1990); Gates Rubber Co. v. Bando Chem. Indus., Ltd., 9 F.3d 823, 832 (10th Cir. 1993)).
. Entm’t Research Grp., 122 F.3d at 1217 (citing North Coast Indus, v. Jason Maxwell, Inc., 972 F.2d 1031, 1033 (9th Cir. 1992)).
. 17 U.S.C. § 410(c).
. See Dkt. 99-5.
. See id.
. See id.
. Dkt. 99-3.
. Dkt. 150 at 19 (citing Fed.RXiv.P. 56(c)).
. See, e.g., Entm’t Research Grp., Inc., 122 F.3d at 1217.
. 351 F.Supp.2d 1090, 1114-15 (W.D.Wash. 2004).
. Corbis Corp., 351 F.Supp.2d at 1114 (quoting Seiler v. Lucasfilm, Ltd.., 808 F.2d 1316, 1321 (9th Cir. 1986)).
. Id. at 1114-15.
. Id.
. Id. at 1115.
. Id.
. No. 05-cv-8406-CAS, 2007 WL 2439505, at *6-7 (C.D.Cal. Mar. 17, 2006).
. Id.
. Id.
. Id.
. Id. at *7.
. Alaska Stock argues, in the alternative, that its original copyright registrations (as opposed to the re-registrations discussed above) are sufficient to establish standing. Dkt. 150 at 20. The images at issue in this case were previously registered as part of photographic compilations, in which many
. See Dkt. 100-1 at 7.
. See Dkt. 100-1 at 7; Dkt. 128 at 14-16.
. Dkt. 128 at 14-16.
. Effects Assoc., Inc. v. Cohen, 908 F.2d 555, 558 (9th Cir. 1990) (quoting Nimmer on Copyright § 10.03[A], at 10-36).
. Falcon Enters., Inc. v. Publishers Svc., Inc., 438 Fed.Appx. 579, 581 (9th Cir. 2011) (unpublished) (citing Effects, 908 F.2d at 559).
. See, e.g., Falcon Enters., 438 Fed.Appx. at 581 (parties' history of "frequent and informal interactions” sufficient to establish implied license); Psihoyos v. Pearson Education, 855 F.Supp.2d 103, 127-29 (S.D.N.Y. 2012) (among other things, evidence that "Pearson did at times publish images before finalizing permission” was sufficient to create material issue of fact precluding summary judgment).
. See Psihoyos, 855 F.Supp.2d at 129.
. Id. at 124 (citing Viacom Int’l Inc. v. Fanzine Int’l Inc., No. 98-cv-7448, 2000 WL 1854903, at *3 (S.D.N.Y. My 12, 2000) (“As with all copyright licenses, an implied license protects the licensee only to the extent the copyright owners intended that their copyrighted works be used in the manner in which they were eventually used.”)).
. See Pacific Stock, 927 F.Supp.2d at 1001-02; Bean v. Pearson Educ., Inc., 949 F.Supp.2d 941, 945-47, 2013 WL 2564106, at *2-3 (D.Ariz. 2013).
. Dkt. 128 at 15.
. Pacific Stock, 927 F.Supp.2d at 1001-02.
. Dkt. 148-3 at 5-6.
. See Dkt. 100-1 at 7 (although the publication in which image 217 appeared was circulated in 2010, Pearson did not request permission to use the image until June 3, 2011).
. Dkt. 92.
. See Dkt. 93.
. See id.
. Dkt. 93 at 13-16.
. See Pacific Stock, 927 F.Supp.2d at 998-99.
. See Bean, 949 F.Supp.2d at 945 n. 2, 2013 WL 2564106, at *2 n. 2.
. MDY Indus., LLC v. Blizzard Entm’t, Inc., 629 F.3d 928 (9th Cir. 2010), as amended; see also Sun Microsystems, Inc. v. Microsoft Corp., 188 F.3d 1115, 1121-22 (9th Cir. 1999) ("Generally, a copyright owner who grants a nonexclusive license to use his copyrighted material waives his right to sue the licensee for copyright infringement and can sue only for breach of contract^] however, [if] a license is limited in scope and the licensee acts outside the scope, the licensor can bring an action for copyright infringement") (citation omitted); S.O.S., Inc. v. Payday, Inc., 886 F.2d 1081, 1087-88 (9th Cir. 1989) ("A licensee infringes on the owner's copyright if its use exceeds the scope of its license.”).
. MDY Industries, 629 F.3d at 939.
. Id.
. Id. (quoting Storage Tech. Corp. v. Custom Hardware Eng’g & Consulting, Inc., 421 F.3d 1307, 1316 (Fed.Cir. 2005)).
. Pacific Stock, 927 F.Supp.2d at 998-99.
. In the same section of its brief as it makes its covenant argument, Pearson alternatively argues that the parties’ preferred vender agreement authorized Pearson to print in excess of its licenses. See Dkt. 93 at 19-20. Although Pearson makes a number of creative arguments to support this assertion, there is nothing in the plain language of the PVA to suggest that it establishes anything more than pricing terms. See Dkt. 95-5. As the District of Hawaii recently explained in rejecting Pearson’s identical argument, "[njothing in the agreement[ ] allowed Pearson to unilaterally enhance its usage without notification to Pacific Stock and without payment; certainly nothing in the agreement[ ] rendered inapplicable copyright infringement laws requiring compliance with the scope of a limited license when a licensee has not [] sought a license enhancement.” Pacific Stock, 927 F.Supp.2d at 1001-02. Like the District of Hawaii, this Court is unconvinced by Pearson's arguments. At a minimum, questions of fact exist which preclude summary judgment.
.Dkt. 93 at 17-19.
. Dkt. 95-10 at 4-5.
. Dkt. 117 at 19.
. See id.
. See Dkt. 147.
. Dkt. 18-20.
. Dkt. 93 at 17-19.
. See 544 F.Supp.2d 1121, 1128 (S.D.Cal. 2008) (granting summary judgment on the issue of damages, in part, because the plaintiff failed to disclose the information despite the defendant’s multiple requests for it).
. No. 06-cv-2754-EDL, 2007 WL 4169487, at *1-3 (N.D.Cal. 2007).
. Id. at *3.
. Id.
. Id.
. After Alaska Stock provided this information, the burden would have been on Pearson to prove any expenses that should be deducted from gross revenues and what portion of the remaining profits were not attributable to Alaska Stock’s images. See 17 U.S.C. 504(b).
. See Bean, 949 F.Supp.2d at 953, 2013 WL 2564106, at *10 (rejecting Pearson’s similar argument) (citing NW Pipe Co. v. DeWolff, Boberg and Associates, Inc., No. 10-cv-840-GHK, 2012 WL 137585, at *2 (C.D.Cal. January 17, 2012) ("Courts are more likely to exclude damages evidence when the belated disclosure would require a new briefing schedule and the reopening [of] discovery.”)).
. See id.
. Dkt. 93 at 23.
. Shehata v. Salvation Army, 225 P.3d 1106, 1114 (Alaska 2010) (citation omitted).
. See Dkt. 1 at 4; Dkt. 117 at 23.
. Dkt. 1 at 4.
. Dkts. 119 at 3-4; 119-2; 119-3; 119-4; 119-5; 119-6; 119-7; 122; see also Dkt. 100-1.
. See Dkt. 119 at 2; Dkt. 120. Although Alaska Stock requested pre-publication forecasts on each of the publications, Pearson states that, due to the passage of time, the other forecasts are unavailable. See Dkt. 147.
. See Dkt. 119 at 2; Dkt. 121.
. See Friedman v. Quest International Fragrances Co., Fed.Appx. 359, 359-60 (9th Cir. 2003) ("It is settled law in this Circuit that circumstantial evidence is sufficient to withstand summary judgment, especially in cases where direct proof of wrongdoing is difficult to obtain."); see also In re Software Toolworks Inc., 50 F.3d 615, 627 (9th Cir. 1994) ("proof of scienter in fraud cases is often a matter of inference from circumstantial evidence”); Gabaig v. Gabaig, 717 P.2d 835, 838 (Alaska 1986) ("[ejxistence of a fraudulent intent is a question of fact, often proven by circumstantial evidence”).
. The Court also notes that at least two other district courts have recently denied summary judgment motions by Pearson on substantially similar facts and arguments. See Bean, 949 F.Supp.2d at 950-52, 2013 WL 2564106, at *8-9; Pacific Stock, 927 F.Supp.2d at 1003-04.
. Dkt. 93 at 2, 9-10; Dkt. 147. Pearson identifies the claims as "lines 105 — [1]07, 109-146, 149-157, 160-162, 166, 172-179, 183-84, 188-189, 194-197, 200-202, and 204-208 of Exhibit 1 of the Complaint.” See Dkt. 1-1.
. Dkt. 117 at 27.
. Id.
Reference
- Full Case Name
- ALASKA STOCK, LLC v. PEARSON EDUCATION, INC., and John Doe Printers 1-10
- Cited By
- 5 cases
- Status
- Published