*1 TECHNOLOGY, LTD., CREATIVE Singapore corporation,
a
Plaintiff-Appellant, PTE, LTD, Sing
AZTECH SYSTEM
apore corporation; Labs, Inc., Aztech corporation, Defendants-Ap
California
pellees.
No. 93-16997. Appeals,
United States Court of
Ninth Circuit.
Argued April and Submitted 1995. July
Decided
698 *3 Nest, Keker,
Robert A. Van Broekett & Nest, Francisco, CA, Van San Lin- and Joel zer, Roach, Oakland, Crosby, Heafey, May, & CA, plaintiff-appellant. for Coats, Bostick, Carolyn William S. F. and Anderson, Bain, Sarah W. Brown & Palo Alto, CA, defendants-appellees. for GIBSON,* HUG, Before: FLOYD R. FERGUSON, Judges. Circuit Opinion by Judge GIBSON; FLOYD R. by Judge Dissent FERGUSON. GIBSON, FLOYD R. Senior Circuit Judge. Technology appeals
Creative the district court’s non conveniens dismissal of its copyright infringement jur- action. We have appeal pursuant isdiction over this to 28 (1988), U.S.C. and we affirm.
I. BACKGROUND Appellant Technology, Ltd. (Creative) Appellee Systems Aztech Pte. (Aztech) competing Ltd. are cor- porations in the developing, business of man- GIBSON, sitting by *The HONORABLE designation. FLOYD R. Senior Judge Eighth Appeals, for the Circuit Court of motion, concluding ufacturing, distributing sound cards.1 Aztech’s principal place adequate Both Aztech’s and Creative’s offered an alternative forum and Singapore. All the sound of business is that the balance of inter- developed, designed, are and manufac- cards dismissing est factors favored the action in Singapore. Creative markets its tured adjudication favor of under the sound cards the United States appeals. through Crea-
brand name “Sound Blaster”
Inc.,
Labs,
corporation and
tive
a California
II. DISCUSSION
turn,
Aztech,
subsidiary.
wholly owned
sound cards in the United States
markets its
party moving
Galaxy”
under
the brand name “Sound
conveniens dismissal must demonstrate two
(Aztech
Labs,
through
Inc.
Appellee Aztech
(1)
*4
things:
adequate
the existence of an
al
Labs),
corporation
another California
and
(2)
forum;
ternative
and
that the balance of
wholly
subsidiary.
owned
private
public
relevant
and
interest factors
favor dismissal. Contact Lumber Co. v. P.T.
present
protract-
action arises from a
The
Ltd,.,
1446,
Moges Shipping Co.
918 F.2d
copyright dispute
and
ed
between Creative
(9th Cir.1990) (citing
Corp.
1449
v.
Oil
copyright litiga-
Aztech. The first round of
Gulf
Gilbert,
501, 508-09,
839,
330 U.S.
67 S.Ct.
erupted
tion
in November of 1992 when
(1947)).
843,
ted).
Singapore Copyright
prevent
Act cannot
Creative’s claim that the territorial High
Singapore
granting
Court
from
Singapore Copyright
Act
limits of
ren
enjoin
request
permanently
Creative’s
Az
High
Singapore incapable
ders the
Court
tech’s
conduct in
In
copy
protecting
Creative’s United States
deed, we are unable to conceive of a more
by
scope
rights interests is belied
protecting
effective
means
Creative’s Unit
Singapore
counterclaim.
Creative’s own
by
ed States
interests than
shut
monetary
That counterclaim seeks both
ting
pipeline
infringing goods
off the
at the
permanent
injunctive
for
relief
all
Thus, regardless
source.
of whether
infringement arising
acts of
from both the High
jurisdiction
Singapore
Court of
has
development of the “Sound Blaster clones” in
adjudicate
copyright infringement
acts of
oc
Singapore and their distribution abroad. We
curring
Singapore,
outside
we believe that
High
conclude that the
Court of
capable
offering
Court is
ade
capable
granting
Creative the relief it
quate monetary
injunctive remedy
or
under
despite
seeks
the territorial limitations of the
Singapore Copyright
Act. While the
Singapore Copyright Act.
scope
High
of relief
in the
available
Singapore may not be what Creative envi
First, lack of extraterritorial
reach should
sioned
it
when
filed its claim in the United
prevent
not
Court of
court,
States district
non conve
subsuming
damages
the amount of
in-
require
niens doctrine does not
it to be so.
alleged illegal
curred
Aztech Labs’
distri-
Zipfel,
As we observed in
pirated
bution of
sound cards within the
pro
“[s]ueh [an] alternative
not
for[um]
damages
in the amount of
vide all of the remedies and benefits which
Singapore Copyright
awarded under the
Act
court,
might
be available
an American
but
alleged infringing
occurring
Azteeh’s
acts
provided
clearly
the remedies
are not ‘so
in Singapore. The Second Circuit did exact-
inadequate
unsatisfactory
or
that [there] is
Art,
Pub.,
ly
Update
that in
Inc. v. Modiin
”
remedy
(quoting Piper,
no
at all.’
Id.
Ltd.,
(2nd Cir.1988), despite
same
1. Private Interest Factors
simply
support
no
Finally, there is
(1)
private
interest factors include:
argument
that 28 U.S.C.
for Creative’s
proof;
to
relative ease of access
sources
1338(a)
High
Singapore
§
bars the
Court
(2)
availability
compulsory process
copyright law.
applying United States
from
witnesses,
unwilling
for attendance of
clearly grants
States
statute
United
That
obtaining
willing
cost of
attendance of
wit-
jurisdiction
courts
over
district
(3)
nesses;
possibility
viewing subject
states,”
of the courts of the
claims “exclusive
(4)
premises;
all other factors that render
foreign nations.
of the courts of
not exclusive
expeditious
inexpen-
of the case
trial
interpret
urges this Court to
sive.
jurisdiction
grant
exclusive
provision as
fifty
of the
foreign courts as well as courts
Oil,
(citing
Zipfel,
consider the balance
public
factors include:
interest
whether to dis
interest factors to determine
(1)
flowing administrative difficulties
of forum non conveniens.”
miss
(2)
jury duty
congestion;
imposition of
Oil,
court
Lockman,
(citing
both Labs, wholly tech Inc. is a owned I. subsidiary of Aztech Defendant States-based Systems Systems. Both and Aztech determining that it is not convenient to computer manufactured the designed and court, try this case its the district court compa- at issue in Both software majority and the have failed to take into wholly have owned subsidiaries nies abiding principles account one that distribute their software United States law, particularly as it American owns twelve the United States. Creative developed pursuant has to the Berne Con copyrights for the “text of principle vention: of “national treat protect computer which it seeks to software” According principle, authors ment.” copy- in this action. All twelve of Creative’s enjoy should in other countries the same published in the righted works were first protection for their works as those countries complaint entire is United States. Creative’s II; Art. accord their own authors. See UCC infringement defendants’ in the based on the generally 3 Nim Berne Conv. Art. V. See only of Creative’s twelve Unit- 17.01[B], 17-8; mer on design, copyrights through their ed States (BCIA) H.Rep. Foreign at 14. authors who manufacture, importation, and distribution copyrights must granted are American be software. Each the United States similar same as American authors. treated the separate of these acts constitutes a and inde- Moreover, commonly acknowledged “it Copy- pendent violation of the United States principle impli the national treatment 107-120, §§ right Act. See 17 U.S.C. territoriality.” Subafilms, cates a rule of Moreover, the remedies that Crea- and 501. Co., 94 Ltd. v. MGM-Pathe Communications seeks, injunction namely permanent a tive Cir.1994). also See C.D.O.S. production infringing against further (“The Nimmer, 17.05, supra, § at 17-39 software, recalling an order all in- computer copyright law of the applicable law is the fringing copies, profits from obtained occurred, not state which infringing products, are those sales of the a of which the author is that of the state by provided the United States ...”). purposes national For §§ Act. See 17 U.S.C. 502-504. analysis, principle national conveniens apart copyright cases complaint alleges that Creative treatment sets Creative’s treatment kinds of cases. The national damaged the distribution of the de- other was that, requires principle where fendants’ software the United country, infringed particular §§ in a of 17 501 and has been violation U.S.C. *10 706 remedy copyrights infringed by con- right pursue a were
the author has the to country. in that duct which occurred the United States protection the benefit and the must receive majority consider the have failed to principle. of the national treatment Creative adequacy Singapore of as an alternative fo- protection the United is entitled to under light principle of national treat- rum in of the Copyright Act. States They impact the of the ment. do not address Convention, requires which Berne Thus, part the first of the non forum foreign of States courts to treat owners requires conveniens test us to retain this copyrights American the same as American principle action the of national treat- because Instead, majority the use the doc- owners. precludes Singapore being an ment ade- trine of non conveniens to hold that quate Piper Aircraft, alternative forum. See foreign persons copy- when own American at at 266. The na- U.S. rights, it is not convenient for an American principle requires in- tional treatment adjudicate Contrary claims. to court to their fringement occurring in the United States be assertion, majority’s simply I the advocate adjudicated in the United States. by al- that we follow the Berne Convention However, majority conclude that the lowing foreign copyright the same owners “High Singapore capable is of Court opportunity give copy- that we to American granting They the relief it seeks.” right litigate case in the owners to their High provide conclude that Court can infringement when the injunction permanent both a and sufficient place takes in the United States. damages remedy independent to viola- case, alleges independent In this importation tions of and distribution under Copyright Act violations the United States Copyright Act. the United States The ma- by acts of distribution which occurred in the jority have reached these conclusions without United States. Our decision in this case any High Sing- resort to Court case or other put should be in the context of obvious when authority. majority apore Nor do the have analysis in this court’s cases such as Timber any Sing- basis on which to conclude that the America, lane Lumber Co. v. Bank apore High will to Court even “desire” follow Cir.1984) In and Subafilms. Indeed, remedy. only this course of Timberlane, at this court af 749 F.2d thing really Singapore copy- we know about firmed a dismissal on right law is that it is not even bound conveniens, “witnesses, par because the Convention, principles of the Berne because ties, Honduran; dastardly deeds all were Singapore signatory treaty. not a was to that clearly apply require these suits would us to single The record before us contains not Similarly, Subafilms, ...” Honduran law Singapore opinion authorizing statute or attempted this court C.D.O.S. type legal approach majority that the as- prevent by holding “international discord” fact, sumes the will In follow. only that a claim of based anything the record does not tell us about the authorization in the United States law, procedures, composition, its entirely acts which occurred out or rules. cognizable side the not United States was Thus, inadequate under the United States Act. law in- Subafilms, applicable purposes protecting Timberlane and territorial for the precluded application copyrights. nature of Creative’s United In this case, “subject dispute of the United States Act to con matter” of the copyrights duct that did not occur at all the United consists of twelve United States case, By contrast, princi protection by in this States. which are entitled American ple requires against infringement occurring national treatment that Unit courts in the applied precisely type ed States law be order United This is States. remedy infringing appro- conduct that occurred in which not ... [is] case “dismissal priate in the United States. Those works of Crea where the alternative forum does not protected by permit litigation subject tive that are matter of the
707 omitted.) (Citations 254, Here, n. Piper Aircraft, applicable 454 U.S. at the law dispute.” 265, 22, Copyright n. 22. is the United States Act at and the 102 S.Ct. alleged infringement
situs of the is the Unit finding ed States. The district court erred in II. any copyright that law other than the United ap Act would need to be determining to whether an ade- In addition plied in strong this case. Thus there is a exists, a quate alternative forum district public avoiding interest in conflict of law judge applicability court must the of forum problems by having American courts resolve by weighing the relevant controversy. Zipfel this See v. Halliburton Piper public interest factors. Co., 1477, Cir.1987); F.2d 832 1485 Su 257, Aircraft, 454 102 at 266. U.S. bafilms, addition, 94 In C.D.O.S. at 3385. as Jensen, Learjet Corp. v. 743 F.2d In Gates Learjet, in strong public Gates there is a (9th Cir.1984), 1325, this court stated: 1334 having interest American courts resolve properly analyzes If court a district controversy. this localized The district court all bal- considers relevant factors and its by failing abused its discretion to consider reasonable, ancing of factors is its these these factors. “may forum non conveniens dismissal be Moreover, the district court’s error was only a clear reversed when there has been compounded by its failure to account both for court, A abuse of discretion.” district unique significance the law in therefore, discretion it abuses its when society jurispru- American and federal court the relevant factors. fails balance complexity dence and for the enormous (Citations omitted.) law, particularly American as it pertains protection computer to the soft- enough complaint, It is clear from the Supreme ware. As the Court has stated: entirely upon copy- based American which is law, right court its the district abused The immediate effect our by dismissing discretion this action. The is to secure a fair return for “author’s” utterly public ignored district court inter- is, by labor. But aim creative the ultimate having courts of this coun- est the federal incentive, this to stimulate artistic creativi- try apply American law to resolve ty general public good. for the “The sole controversy. v. See Contact Lumber Co. pri- interest of the United States and the Ltd., Moges Shipping P.T. 918 Co. mary object conferring [copyright] (9th Cir.1990). Learjet, Gates 743 said, monopoly,” this has “lie F.2d at this court held that the district general by public benefits derived from ” by failing prop- court its abused discretion the labors of authors.... When techno- erly weigh factors in same interest change logical has rendered its literal analogous litigation: area of trademark ambiguous, terms Act must light purpose. be construed of this basic weigh
...
Ari-
the district court failed to
Aiken,
having
controversy
Century
Corp.
zona’s interest
Twentieth
Music
151, 156,
2040, 2044,
signifi-
“resolved at home.” Arizona has a
95 S.Ct.
U.S.
(1975) (citations omitted).
in interpreting
cant
interest
its own L.Ed.2d 84
Stated
simply,
laws.... Arizona also has an interest
the United States courts are the most
companies
adjudicating
rights
protecting its
trademark well-suited
infringement
preserve
copyrights.
abroad
bestowed
vitality.
(daily
Although
Cong.Rec.
state’s economic
the si-
H1293-05
ed. March
1987) (“While
relatively
discipline,
tus of the
trademark and trade-
obscure
every
Philippines,
name
was the
it
touches
American in their
homes, schools, libraries,
appears
Philippine
workplaces.
applica-
law is not
Determining
scope
deeply
A proper understanding
ble....
of a law which
interest,
books, films,
enjoy
applicable
how all of
law and the relative
affects
us
fact,
software,
computer
suggests
programming,
that Arizona has the more
television
services, music,
products
litigation.
substantial
in this
information
*12
caution,
puter
rapidly
in
requires great
expanding
arts
software
a
mar-
and the visual
rapidly changing society
in
ket.
particularly
a
of
as ours that seeks both the free flow
such
majority
The district court and the
cite
marketplace”); Pe-
information and the free
Evangelical
Lockman Foundation v.
Alli-
Felcher, Subject
L.
Matter
ter
Mission,
(9th Cir.1991),
ance
well as Lockman, In plain- case and Lockman. system promoting is essential to our of intel- copyright tiff an American of its En- owned protec- lectual and creative freedom and glish translation of the Bible. The tion”). infringement was the translation in Asia of By dismissing this action on languages the Bible into several Asian conveniens, the district court also exclusively in In distribution almost Asia. addition, importance failed to understand the plaintiff alleged a violation of copyrightability computer in software Japanese copyright plus several non- jurisprudence. copy- American American copyright counts. The district court dis- right yet fully law has to resolve the extent ground missed all the counts on the that it software, protection computer that is due try not was convenient to them America. firmware, computer products. and other plaintiff appeal did not the dismissal of See, e.g., International Law and copyright the American claim. This Court (Paul Practice, USA, 2,§ that, at 37 E. Geller & copyright held because the American 1993) eds., (“Computer Melville B. Nimmer non-copy- claim was so intertwined with the hotly claims, at the a software stands vortex of right grant a of leave to amend in copyright contested storm United States copyright order to eliminate the claim would present”). law at We must not leave the have been futile. That not this case. It is resolution of this issue to a court. readily apparent public that the American importance computers The enormous of both language is non-existent for Asian computer-related copyrights to American Bibles distributed Asia. There was no society precludes simplistic such a and short- finding that even one Asian Bible was dis- sighted solution. infringe- tributed the United States. No place ment took in the United States. copyright may important A not be as as Lockman, not, simply there was as Su- Honor, Congressional Medal of but Aiken, preme Court found in the stimulation majority district court and the have com- creativity general public of artistic for the pletely disregarded the fact that an Ameri- good in America. copyright granted by can is a valued benefit government pri- Finally, contrary view, majority’s for the to the mary purpose benefiting general pub- given importance the enormous to American therefore, good; copyright lic society copyright protection computer private claim must not be products imported treated as mere that are distributed country, cause of action like a tort or breach of con- this the interest of the United majority importance resolving tract. The confuse the States in this matter and the rela- public good jury community law to the with the tion of the to this task importance strongly retaining law to the American favor this case the Unit- I consumer. Nowhere have stated that the ed pre- States courts. There is no evidence district court should have accounted for the sented in this case to Sing- demonstrate that importance of apore qualified this case to American consum- courts are to balance the Rather, ers. I maintain creativity protected by the district American court failed to impact privilege consider the enormous law. A United States is a general public good resulting government upon on the from its bestowed our the au- creativity. decision to leave to a court unset- thor in order reward American relating significant tled issues to the public intellectual free- law involves a copyrights dom to create American to com- interest. claiming
Because there is no basis try this case in a
it is not convenient
United States District Court and because weigh in interest factors action, retaining I
favor of dissent. The dismissing
district court erred this action *13 non conveniens. COMPANY,
ALBANY INSURANCE
Plaintiff-Appellant, EXPRESS, engines, her
M.V. ISTRIAN
tackle, machinery, etc., appurtenances, rem, Defendant-Appellee.
No. 93-17085. Appeals,
United States Court of
Ninth Circuit.
Argued April and Submitted 1995.
Memorandum Filed June 1995. July
Decided Robb, Cook, Geoffrey Quinby Derby,
G. & Tweedt, Francisco, CA, plaintiff-ap- San for pellant. Heard, Parsons,
Keith W. Burke & New City, defendant-appellee. York
