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345 F. Supp. 3d 482
S.D. Ill.
2018
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Background

  • Michael Grecco (MGP) photographed Jeffrey Gundlach for Barron’s (published Feb. 2011); MGP retained copyright and registered the work on Feb. 20, 2011.
  • Valuewalk.com (owned/operated by Jacob Wolinsky) published a Gundlach "Resource Page" that used an image identical to Grecco’s without license or attribution; Valuewalk earned advertising revenue from page views.
  • Valuewalk contractors produced site content; instructions encouraged downloading images from Google and Valuewalk had no repeat-infringer policy or designated DMCA agent at the time.
  • Grecco (through ImageRights) discovered Valuewalk’s use in 2015; record also shows a 2012 Valuewalk page that used the same image; Defendants contend only one continuous 2012 posting (server migration explains differences).
  • MGP sued for direct, contributory, and vicarious copyright infringement and for DMCA §1202 removal of copyright management information; parties filed cross-motions for partial summary judgment.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Direct infringement (Valuewalk) Valuewalk reproduced and displayed an identical copy of Grecco’s photo without license. Valuewalk contends the image differs (size/quality) and thus is not identical. Court: Summary judgment for Plaintiff on infringement (images substantially identical), but final liability deferred because statute-of-limitations issue remains.
Fair use defense N/A (Plaintiff seeks to preclude defense). Valuewalk claims its use was transformative (biographical context) and scaled/downsampled. Court: Fair use rejected—use was nontransformative, commercial, full-image use that harms licensing market; Plaintiff entitled to judgment on fair use defense.
Vicarious and contributory liability (Wolinsky) Wolinsky had ability to supervise, assigned contractors, and financially benefited from page views. Wolinsky denies routine editorial control/knowledge of the specific image and disputes substantial involvement. Court: Genuine disputes of material fact exist as to Wolinsky’s control, knowledge, and financial benefit; summary judgment denied on these claims.
Statute of limitations (accrual/discovery) MGP discovered 2015 posting and timely sued; 2012 posting was only uncovered later. Defendants say the image was publicly available from 2012 and MGP should have discovered it earlier (limitation barred). Court: Material factual dispute over whether claims accrued in 2012 or 2015; resolution required at trial—summary judgment denied on this issue.
DMCA §1202 (removal of CMI) Valuewalk removed/failed to display Barron’s gutter credit identifying Grecco; removal was intentional or with knowledge. Defendants say CMI may have been inaccessible behind Barron’s paywall and any omission was inadvertent; lack evidence of intent/knowledge. Court: Triable issues exist as to knowledge and intent; summary judgment denied to Defendants on DMCA claims.
DMCA §512 safe-harbor defense N/A (Plaintiff seeks to defeat defense). Defendants asserted §512(c) safe harbor but offered no evidence of required threshold (service-provider status, repeat-infringer policy, designated agent). Court: Plaintiff entitled to judgment rejecting §512 safe-harbor defense—Defendants didn’t satisfy statutory prerequisites.

Key Cases Cited

  • Harper & Row Publishers, Inc. v. Nation Enters., 471 U.S. 539 (U.S. 1985) (fair use—commercial, unpublished-first-publication considerations)
  • Campbell v. Acuff‑Rose Music, Inc., 510 U.S. 569 (U.S. 1994) (transformative-use inquiry central to fair use analysis)
  • Ringgold v. Black Entm't Television, Inc., 126 F.3d 70 (2d Cir. 1997) (substantial-similarity standard for visual works)
  • Bill Graham Archives v. Dorling Kindersley Ltd., 448 F.3d 605 (2d Cir. 2006) (transformative use of images in biographical context)
  • Petrella v. Metro‑Goldwyn‑Mayer, Inc., 572 U.S. 663 (U.S. 2014) (separate‑accrual rule for successive infringements/statute of limitations)
  • Viacom Int'l, Inc. v. YouTube, Inc., 676 F.3d 19 (2d Cir. 2012) (DMCA safe-harbor framework)
  • Gershwin Publ'g Corp. v. Columbia Artists Mgmt., Inc., 443 F.2d 1159 (2d Cir. 1971) (standard for vicarious liability: control and direct financial interest)
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Case Details

Case Name: Michael Grecco Prods., Inc. v. Valuewalk, LLC
Court Name: District Court, S.D. Illinois
Date Published: Nov 6, 2018
Citations: 345 F. Supp. 3d 482; 1:16-cv-6171-GHW
Docket Number: 1:16-cv-6171-GHW
Court Abbreviation: S.D. Ill.
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    Michael Grecco Prods., Inc. v. Valuewalk, LLC, 345 F. Supp. 3d 482