Shen Engineers v. Brighton
748 F.Supp.3d 1086
D. Utah2024Background
- Shen Engineering created structural engineering plans for model cabins in a residential development in Kamas, Utah, at architect Brighton's request, without a written contract.
- Shen was paid for the initial plans and creation of two mirrored versions; these plans were registered with the Copyright Office in August 2022.
- In late 2020, Shen discovered Brighton had reused these plans multiple times (over 30 repeat uses) for additional cabins in the same development, without paying additional/reuse fees.
- Shen demanded a "reuse" fee (traditionally 50% of the original fee per reuse), which Brighton did not pay, although he acknowledged the reuses.
- Shen brought suit for copyright infringement and unjust enrichment, seeking summary judgment on both claims.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Scope of License | Implied license allowed only initial/model builds; each additional use required reuse fee. | Implied license included unlimited reuses in subdivision; this is industry standard. | Implied license was limited; defendant’s unauthorized reuses exceeded scope—liability for infringement. |
| Copyright Infringement | Repeated unlicensed use of plans to obtain permits/build cabins is infringement. | Plans were provided without express use limits; default is broad use. | Multiple reuses without payment were infringement. |
| Unjust Enrichment | Brighton was unjustly enriched by using plans for profit without additional payment to Shen. | No inequity, as Shen did not perform additional work for reuses and had no added liability. | Unjust enrichment claim preempted by Copyright Act. |
| Notice/Contract Requirements | No contract/written notice needed to restrict use; practice and past request for reuse fees suffice. | Lack of written restrictions means broad use—industry practice supports this. | No requirement for written limits; totality of circumstances shows restricted license. |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (standard for summary judgment evaluation)
- Celotex Corp. v. Catrett, 477 U.S. 317 (standard for burden of proof on summary judgment)
- Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574 (nonmovant must set forth specific facts to show genuine issue)
- Nelson-Salabes, Inc. v. Morningside Dev., LLC, 284 F.3d 505 (implied license parameters in copyright law)
- LGS Architects, Inc. v. Concordia Homes of Nevada, 434 F.3d 1150 (scope of architectural copyright licenses)
