Defined Space, Inc. v. Lakeshore East, LLCDefined Space, Inc. v. Lakeshore East, LLC
MEMORANDUM OPINION & ORDER
Defendants Lakeshore East, LLC, Magellan Development Group, LLC, and NNP Residential, LLC (collectively, the “defendants”) have moved to dismiss Counts II-V, VIII, and IX of Defined Space, Inc.’s amended complaint under
I. Background
Defined Space, Inc. (hereinafter, “DSI”) is the firm through which professional photographer David B. Seide conducts his business. In 2005, DSI entered into a series of agreements with the defendants to produce color photographs of the defendants’ properties. The defendants planned to use these photographs as part of their marketing campaign to rent and sell their properties. The parties entered into a licensing agreement, in which the defendants agreed not to display DSI’s works without attribution. Although the defendants occasionally credited DSI’s work to DSI, sometimes they omitted this notice in their uses of DSI’s work. DSI called this lack of attribution to the defendants’ attention from time to time, but on occasion these omissions of attribution were not corrected.
II. Legal Standard
In addition,
A. Whether Count II Should Be Dismissed For Failure To State A Valid Lanham Act Claim.
The defendants argue that Count II of DSI’s amended complaint, which alleges a Lanham Act claim, should be dismissed under
In
Dastar,
Twentieth Century Fox had acquired the exclusive television rights to General Dwight D. Eisenhower’s written account of the allied campaign in Europe, “Crusade in Europe.” Fox arranged for a production of a television series based upon the book, but did not renew the copyright on the television series when it expired in 1977, leaving the series in the public domain. Dastar then took the original Crusade television series, copied the original beta cam tapes,
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edited them, and produced a “Campaigns” series that had a new opening sequence, credit page, and final closing different from the original “Crusade” series. Dastar then manufactured and sold the Campaigns video set as its own product without giving credit to Fox.
Dastar,
The Supreme Court held that the Copyright Act precluded Fox’s claims under the Lanham Act.
Id.
at 34-35,
The Lanham Act was intended to make “actionable the deceptive and misleading use of marks,” and “to protect persons engaged in ... commerce against unfair competition.” While much of the Lanham Act addresses the registration, use and infringement of trademarks and related marks, § 43(a),15 U.S.C.
§ 1125(a) is one of the few provisions that goes beyond trademark protection. As originally enacted § 43(a) created a federal remedy against a person who used in commerce either “a false designation of origin, or any false description or representation” in connection with “any goods or services.”
Id.
at 28-29,
In
Cyber Websmith,
Cyber Websmith alleged that the defendants were operating websites for dental practices comprised of photographs copied directly from Cyber Websmith’s copyrighted website templates.
Cyber Websmith,
After finding that the works’ in question were within the subject matter of the copyright statute, the court asked whether the claims asserted by the plaintiff were merely duplicative of its copyright claims. The court noted that to avoid preemption, an extra element must be incorporated in the claim that changes the nature of the action so that it is qualitatively different from a copyright infringement claim.
Id.
at *2 (citing
Kluber Skahan & Assoc. v. Cordogen, Clark & Assoc., Inc.,
No. 08-CV-1529,
In
Cable,
Cable was an experienced real estate photographer who sold his photographs to • a real estate firm, Garrison.
Cable,
The court rejected AFP’s argument that
Dastar
precluded a claim under the Lanham Act. It noted that “the
Dastar
court limited its 'ruling in one important way — it stated that a claim under § 43(a) ‘would undoubtedly be sustained if Dastar had bought some of New Line’s Crusade videotapes and merely repackaged them as its own.’ ”
Id.
at 981 (quoting
Dastar,
Here, the defendants assert that in the wake of
Dastar,
the Lanham Act claim alleged by DSI is preempted by the Copyright Act and should be dismissed. DSI responds by distinguishing
Dastar
as being primarily motivated by the public work nature of the film in question. Additionally, DSI points out that
Dastar
explicitly left open a claim under § 43(a)(1)(B) under the Lanham Act.
Dastar,
As illustrated above, courts in this district addressing this issue
post-Dastar
are split.
3
Dastar
rested heavily on the fact that the materials at issue were in the public domain and had been edited by Dastar prior to redistribution. In contrast, DSI alleges that the defendants appropriated and used its
copyrighted works
without DSI’s permission and
without alteration.
Thus, the Supreme Court’s admonition that the Lanham Act claim “would undoubtedly be sustained if Dastar had bought some of New Line’s Crusade videotapes and merely repackaged them as its own” is directly on point.
Dastar,
Here, as in
Cable,
DSI alleges that the defendants took DSI’s photographs and passed them off as their own photographs without revision or proper accreditation. This case does not involve works in the public domain, or the fear of a perpetual copyright regime such as the Supreme Court faced in
Dastar. Id.
at 37,
B. Whether Counts III, IV, And V Should Be Dismissed As Preempted By The Copyright Act.
The defendants argue that Counts III, IV, and V of DSI’s amended complaint, which allege violations of Illinois statutes prohibiting consumer fraud and deceptive business and trade practices, should be dismissed because they are preempted by the Copyright Act. The defendants contend that the claims that DSI is bringing under state law are essentially the same claims as Count VI of the complaint, which alleges copyright infringement for the same underlying acts. The defendants argue that these claims are preempted pursuant to the reasoning of
Natkin
and
Chicago Style Productions, Inc. v. Chicago Sun Times, Inc.,
Section 301 of the Copyright Act states:
[A]ll legal or equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright are governed exclusively by this title. Thereafter, no person is entitled to any such right or equivalent right in any such work under the common law or statutes of any state.
In
Natkin,
Natkin was a professional photographer who had taken pictures of Oprah Winfrey on the set of her show for approximately seven years.
Natkin,
The court reasoned that the works at issue were fixed in a tangible form as photographs and that they fell within the subject matter of copyright.
Id.
at 1014. The court pointed out that while the plaintiffs had been creative in arguing all of the harms they had allegedly suffered, their state law claims were asserting nothing more than a garden variety copyright violation for the defendants’ unauthorized use and false claims of copyright in some of the published pictures.
Id.
Additionally, the court noted that the relevant counts did not allege any new facts, but instead just “ineorporate[d] all prior factual allegations and state[d] that those facts constitute violations of the respective state laws.”
Id.
at 1013 n. 6. For this reason, the court granted the defendant’s motion for summary judgment and dismissed the state law claims.
See also Cyber Websmith,
In
Chicago Style,
Chicago Style was a production company that prepared a television show about local people and events.
Chicago Style,
To begin with, this court finds it uncontroversial that the photographs at issue in this case fall within the subject
C. Whether DSI Should Provide A More Definite Statement Of Counts I And VI.
The defendants have moved for a more definite statement under
Motions for a more definite statement are generally disfavored.
Zaragon,
The court denied Indian Harbor’s motion. The court pointed to the fact that Zaragon’s complaint clearly discussed the Indian Harbor insurance policy, the damage to Zaragon’s property, and the claims process. Id. Additionally, the court noted that Indian Harbor’s motions and reply brief indicated that it was “fully aware of which insurance policy [was] at issue in Zaragon’s complaint.” Id. The court pointed out that “if Indian Harbor believes that Zaragon does not meet the relevant legal requirements, it may raise that issue in a motion for summary judgment.” Id.
D. Whether Counts VIII And IX Should Be Dismissed As Improperly Pled.
Lastly, the defendants have moved to dismiss Counts VIII and IX of DSI’s amended complaint as improperly pled as DSI fails to state an independent cause of action for injunctive relief, attorney fees, and punitive damages. Rather, DSI’s amended complaint prays for relief in Counts VIII and IX instead of including those prayers for relief in earlier counts in the complaint.
The defendants do not cite any authority for the proposition that, as a matter of law, requests for remedies
must
be pled as part of earlier causes of action.
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The Seventh Circuit has “made clear in the past that ‘[i]t is not the obligation of [the] court to research and construct legal arguments open to parties, especially when they are represented by counsel,’ and [has] warned that ‘perfunctory and undeveloped arguments, and arguments that are unsupported by pertinent authority, are waived.’ ”
Judge v. Quinn,
Finally, this court notes that the defendants’ arguments that DSI has not properly met its burden in showing that a
IV. Conclusion
For the foregoing reasons, the defendants’ motion to dismiss Count II of DSI’s amended complaint is denied. Counts III, IV, and V of the amended complaint are dismissed as preempted by the Copyright Act. Additionally, the defendants’ motion for a more definite statement for Counts I and VI of the amended complaint is denied. Finally, the defendants’ motion to dismiss Counts VIII and IX of DSI’s amended complaint is denied.
Notes
. The phrase “beta cam tape” refers to the first home video system, Betamax, developed by Sony. For an explanation of the Betamax technology,
see Sony Corp. of America v. Universal City Studios, Inc.,
.
But see Agence France Presse v. Morel,
.
Natkin,
upon which the defendants rely, was decided three years before
Dastar
and is thus of limited persuasive value.
See Do It Best Corp. v. Passport Software,
No. 01 C 7674,
. The parties' business relationship was not confined to the transaction at issue.
Zaragon,
. The defendants cite Indemnified Capital Investments, SA. v. R.J. O’Brien & Assocs., 12 F.3d 1406, 1413 (7th Cir.1993) as an instance where a claim for punitive damages was dismissed because it was not a substantive cause of action. However, this court notes that the court in Indemnified Capital clarified its ruling that, "Having dismissed all the other counts, we must also dismiss the punitive damages claim because it fails to state an independent cause of action.” Id. Here, this court has not dismissed all other counts of the complaint, so the comparison to Indemnified Capital is inapposite.