Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
1Activity
0 of .
Results for:
No results containing your search query
P. 1
Capital Concepts, Inc. d:b:A bCreative, Inc. v. the Mountain Corp

Capital Concepts, Inc. d:b:A bCreative, Inc. v. the Mountain Corp

Ratings: (0)|Views: 50 |Likes:
Published by propertyintangible

More info:

Published by: propertyintangible on Jan 06, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

01/06/2013

pdf

text

original

 
Defendants move in the alternative to dismiss for lack of subject matter jurisdiction. However, a motion
1
to dismiss is untimely under Rule 12(b) of the Federal Rules of Civil Procedure, which requires that “[a](continued...)
I
N THE
U
NITED
S
TATES
D
ISTRICT
C
OURT
F
OR THE
W
ESTERN
D
ISTRICT OF
V
IRGINIA
C
HARLOTTESVILLE
D
IVISION
C
APITAL
C
ONCEPTS
,
 
I
 NC
.,
 
doing business as
B
C
REATIVE
,
 
I
 NC
.,
 Plaintiff 
,v.T
HE
M
OUNTAIN
C
ORPORATION
,
ET AL
.,
 
 Defendants
.C
IVIL
A
CTION
 N
O
. 3:11-
CV
-00036MEMORANDUM
 
OPINION N
ORMAN
K.
 
M
OON
U
 NITED
S
TATES
D
ISTRICT
J
UDGE
Plaintiff Capital Concepts, Inc., doing business as bCreative, Inc. (“bCreative”), filed acomplaint stating the following “NATURE OF ACTION”: “This is an action for injunctiverelief, compensatory damages, statutory damages, and other appropriate relief arising out of theDefendants’ willful infringement of bCreative’s copyrights in numerous creative works. bCreative further seeks injunctive relief and damages for Defendants’ unauthorized use of [Plaintiff’s] unique and proprietary creative materials” that, as counsel for Defendantsacknowledged at the hearing on the instant motions, are not “material that could be subject inany way to copyright.”Regarding Count I of the complaint, alleging copyright infringement, Defendants TheMountain Corporation (“The Mountain”) and Mountain Retail, LLC (“Mountain Retail”) movefor summary judgment, contending that, because of alleged errors in Plaintiffs’ copyrightregistrations, Plaintiff does not have a valid copyright that could be infringed.
See
docket no.
1
Case 3:11-cv-00036-NKM -BWC Document 72 Filed 12/30/12 Page 1 of 35 Pageid#: 1265
 
(...continued)
1
motion asserting any of [the Rule 12(b)] defenses must be made before pleading,” and Rule 7(a) defines ananswer as a pleading. Defendants filed an answer to the complaint on July 1, 2011, but did not move todismiss until June 1, 2012. In any event, Defendants’ motion to dismiss fails for the same reasons the motionfor summary judgment fails.
-2-32. Regarding the claims in Count II (breach of contract), Count III (breach of contract), CountIV (tortious interference with contract) and Count V (unjust enrichment), Defendants move for summary judgment on the ground that they are preempted by the Copyright Act.
See
docket no.30.As explained herein, Defendants’ motions will be denied. Plaintiff’s copyrightregistrations are valid and it is entitled to a jury trial on its Count I claim for copyrightinfringement, and the claims in Counts II, III, and IV seek vindication for violations of Plaintiff’s legal rights separate and distinct from the copyrights underpinning its claim for copyright infringement. Such claims are not preempted by the Copyright Act, because thoseclaims concern content that does not fall within the subject matter of copyright protection under the Copyright Act.
I.
 A.
Pursuant to a License Agreement, dated October 1, 2006 (the “License Agreement”), between The Mountain and Plaintiff’s licensee, Looking Good Licensing, LLC (“LGL”),Plaintiff provided The Mountain with 32 unique designs for a new line of outdoor-themedt-shirts to be launched by The Mountain known as “Mountain Life” (the “Designs”). In theLicense Agreement, The Mountain expressly agreed that Plaintiff owns the copyright in the
Case 3:11-cv-00036-NKM -BWC Document 72 Filed 12/30/12 Page 2 of 35 Pageid#: 1266
 
-3-Designs and all modifications thereto. Plaintiff subsequently obtained copyright registrations for 19 of the Designs (or, the “Copyrighted Designs”). Plaintiff and The Mountain were unable toagree upon terms for renewing the License Agreement, and on March 1, 2009, the LicenseAgreement terminated. The Mountain was then entitled to a three-month inventory sell-off  period, which expired on May 31, 2009. Plaintiff alleges that, since May 31, 2009, TheMountain has continued to sell t-shirts bearing the Designs to retailers across the country, andthat the co-defendant in this case, Mountain Retail, a wholly-owned subsidiary of The Mountain,has also sold t-shirts bearing the Designs on its Web-site.Defendants challenge Plaintiff’s ownership of the Copyrighted Designs, arguing that theagreement executed by Rob McAbee (“McAbee”), the graphic designer who created theCopyrighted Designs for Plaintiff (the “McAbee Agreement”), does not transfer ownership of the copyrights therein to Plaintiff. Defendants argue further that the copyright registrationsissued to Plaintiff for the Copyrighted Designs are invalid because the copyright applicationsincorrectly described the Copyrighted Designs as “works made for hire.”Both arguments fail.As Plaintiff acknowledges, the Copyrighted Designs created by McAbee are not “worksmade for hire” under the Copyright Act, 17 U.S.C. § 101, and the McAbee Agreementincorrectly describes these works as “works made for hire.” However, a determination that theCopyrighted Designs are not “works made for hire” does not end the analysis, because under § 204 of the Copyright Act, the McAbee Agreement is a sufficient writing to transfer ownershipof the Copyrighted Designs to Plaintiff. The McAbee Agreement clearly demonstrates themutual intent between McAbee and Plaintiff that McAbee would transfer ownership of thecopyrights in all works that he created for Plaintiff, and McAbee has confirmed such intent in
Case 3:11-cv-00036-NKM -BWC Document 72 Filed 12/30/12 Page 3 of 35 Pageid#: 1267

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->