Seven Arts Filmed Entertainmen v. Content Media Corporation Plc
733 F.3d 1251
| 9th Cir. | 2013Background
- Seven Arts sued Paramount (and initially Content/CanWest) claiming ownership of U.S. copyrights in three films and alleging Paramount paid royalties to CanWest/Content instead of Seven Arts. Seven Arts relied on a 2011 Canadian summary judgment declaring it owner of certain copyrights.
- Seven Arts had pursued multiple prior lawsuits (2002 in California, 2003 in Ontario, 2005 in California) over chain-of-title and ownership; the 2005 federal action was stayed/dismissed and Seven Arts litigated in Canada where it obtained summary judgment (non-adversarial) in 2011.
- Paramount moved to dismiss the 2011 federal complaint under Rule 12(b)(6) arguing the Copyright Act's three-year statute of limitations barred the suit; the district court dismissed with prejudice.
- The Ninth Circuit reviewed de novo whether an infringement claim in which ownership is the gravamen is time-barred when a freestanding ownership claim would be barred.
- Seven Arts argued (1) Zuill-style accrual should not bar its infringement claims, (2) legislative history indicates the statute limits remedies not substantive rights, and (3) equitable tolling or prior actions tolled the limitations period; the court rejected these contentions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an infringement suit is time-barred when the gravamen is ownership and a freestanding ownership claim would be barred by §507(b)’s 3‑year limit | Seven Arts: statute limits remedies, not substantive ownership; tolling/prior actions prevented timely suit | Paramount: where ownership is disputed, accrual follows repudiation; repudiation occurred >3 years before suit so claims are time‑barred | The Ninth Circuit: Adopted Second/Sixth Circuits — when ownership is dispositive and parties are in a close relationship, an untimely ownership claim bars related infringement claims |
| Whether equitable tolling or prior related litigation tolled the limitations period | Seven Arts: prior suits (2002, 2003 Canadian action, 2005 stay) tolled accrual | Paramount: no concealment or defendant-created impediment; no authority tolling §507(b) for separate prior suits against different defendants | Court: No equitable tolling; Seven Arts knew of Paramount’s distributions and failed to show a basis to toll, so claim was untimely |
Key Cases Cited
- Feist Publ'ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340 (1991) (elements of copyright infringement: ownership and copying)
- Zuill v. Shanahan, 80 F.3d 1366 (9th Cir. 1996) (co‑ownership claims accrue on plain and express repudiation)
- Roley v. New World Pictures, Ltd., 19 F.3d 479 (9th Cir. 1994) (rolling 3‑year accrual for continuing acts of infringement)
- Aalmuhammed v. Lee, 202 F.3d 1227 (9th Cir. 2000) (authorship claims accrue on repudiation when creation is the gravamen)
- Kwan v. Schlein, 634 F.3d 224 (2d Cir. 2011) (ownership‑based infringement claims barred where ownership claim is time‑barred)
- Ritchie v. Williams, 395 F.3d 283 (6th Cir. 2005) (extending Zuill accrual rule to close contractual relationships)
- Roger Miller Music, Inc. v. Sony/ATV Publ'g, LLC, 477 F.3d 383 (6th Cir. 2007) (infringement timely only if related ownership claim is timely)
- Silvers v. Sony Pictures Entm't, 402 F.3d 881 (9th Cir. 2005) (importance of uniform national copyright rules)
- UMG Recordings, Inc. v. Shelter Capital Partners LLC, 718 F.3d 1006 (9th Cir. 2013) (standards for Rule 12(b)(6) review)