Panoramic Stock Images, Ltd. v. McGraw-Hill Companies, Inc.Panoramic Stock Images, Ltd. v. McGraw-Hill Companies, Inc.
Plaintiff Panoramic Stock Images, Ltd. (“Panoramic”) is an Illinois business that licenses photographs to publishers, including Defendant The McGraw-Hill Companies, Inc. (“McGraw-Hill”), an education publisher. For several years, the parties operated under an agreement that permitted McGraw-Hill to make limited use of photographs in which Panoramic claims to hold a copyright. In this lawsuit, Panoramic alleges that McGraw-Hill has exceeded the scope of the license agreement by publishing copyrighted photos in unspecified “additional publications.” (Compl. [1] ¶ 12.) Panoramic charges McGraw-Hill with copyright infringement and contributory copyright infringement and claims that McGraw-Hill itself maintains “a list of its wholly unauthorized uses.” Id. McGraw-Hill has moved to dismiss certain of Panoramic’s claims for failure to state a claim on the ground that, according to McGraw-Hill, those claims rely on defective or unissued copyright registrations in violation of
FACTUAL BACKGROUND
Panoramic is a stock photography agency. It licenses photographs created by various photographers to other entities such as textbook publishers. McGrawHill is a licensee of Panoramic. (Compl. [1] ¶¶ 1-2, 7.) Between 1991 and 2012, McGraw-Hill paid Panoramic for limited licenses to use copies of 170 photographs
At some point prior to December 2012, Panoramic allegedly learned that McGraw-Hill had violated the licensing agreements by exceeding the permitted uses of the photographs at issue here, including by using the photographs in publications that exceeded the licensing agreements’ scope and terms. (Compl. ¶¶ Ills.) Panoramic claims that “McGraw[Hill] alone knows [the full extent of] these wholly unauthorized uses,” but alleges that Defendant “has developed a list of its wholly unlicensed uses and Panoramic’s Photographs are among those McGraw[Hill] has so identified.” (Compl. ¶ 12.) On December 4, 2012, Plaintiff provided Defendant with a detailed listing of the 276 limited licenses (involving 170 photographs) at issue, including the photographs’ authors, descriptions, copyright registration identifications, and license limits. (Compl. ¶ 13.) According to Plaintiff, Defendant did not respond to Plaintiffs request that Defendant provide accurate information about Defendant’s actual use of the photographs and declined to state which, if any, of the photographs it infringed. (Compl. ¶ 13.)
Plaintiff further alleges that Defendant has a pattern of copyright infringement. According to Panoramic, McGraw-Hill re
In response, McGraw-Hill argues that Panoramic cannot sue for copyright infringement of 101 of the 170 photographs at issue because, it claims, Panoramic lacks valid copyright registration for those 101 photos. (McGraw-Hill does not challenge Panoramic’s standing to sue on the remaining 69 photographs.) According to Defendant, 52 of the relevant photographs lack valid copyright registrations, and 49 more are not registered at all. McGrawHill argues that Panoramic’s claims that arise from those 101 photographs should therefore be dismissed because the alleged copyright registration deficiencies “preclude Panoramic from litigating the majority of its copyright infringement claims.” (Def.’s Partial Mot. to Dismiss [10], hereinafter “Def.’s Mot.”, at 2.)
DISCUSSION
Standard of Review
A party may seek dismissal of a complaint for a “failure to state a claim upon which relief can be granted.”
Plaintiff Panoramic has adequately alleged that McGraw-Hill made unauthorized use of the photographs at issue. At this stage, the parties dispute only whether Plaintiff held valid copyrights in those photographs. McGraw-Hill asserts that Panoramic failed to identify the authors or titles for 52 of the 101 disputed photographs when it sought copyright protection. As a result, McGraw-Hill urges, those registrations are improper and the photographs do not qualify for copyright protection. With respect to 49 other photographs, Panoramic has submitted a copyright application but has not yet received a registration certificate from the Copyright Office. McGraw-Hill contends that Panoramic is not entitled to enforce its copyright for those photographs in this action until the certificate has issued. The court addresses these arguments separately.
I. Copyright Protection for Works Listed Without an Author or Title
The court first addresses the matter of the photographs’ identification in copyright registrations. A plaintiff must register a copyright claim with the Copyright Office before bringing a civil action for infringement.
The parties agree that there is no need to list the author of each individual work in a collective work in order to obtain registration for the collective work as a whole.
The parties dispute whether Panoramic’s registration of the 52 photographs only as part of several collective works allows Panoramic to sue for copyright infringement of the individual photographs whose identification information is not listed in the collective works’ registrations. In registrations VA841-131, VA957-799, VA957800, and VA1-002-221, which include the 52 photographs at issue, Plaintiff registered groups of photographs by listing titles for the collective work as a whole (for example, “Panoramic Images: no. W6”) and some, but not all, of the individual authors. (Copyright Registrations [10-1], Ex. A to Def.’s Mot., at 2-5.)
Plaintiff argues that because
Defendant contends that Plaintiffs reading of Section 409 — to require only that the author and for the collective work be listed in order to extend copyright protection to each of the component parts— would render the law “meaningless.” Under that reading, Defendant asserts, the law would not require “proper identification for the individual registered works.” (Def.’s Mem. at 3.) Listing all constituent authors and titles is required, Defendant argues, to serve the “public notice function of a copyright registration” by identifying protected components and creating a searchable public record of copyrighted works. (Def.’s Mot. at 6, Def.’s Mem. at 3, citing Cosmetic Ideas, Inc. v. IAC/Interactivecorp,
As support for this reading of
In response, Plaintiff notes that the United States of America has filed amicus briefs in support of the appellants in Alaska Stock and Bean, arguing that the Copyright Office has permissibly interpreted
In Metropolitan, the Fourth Circuit considered whether the component photographs in a database of property listings were also protected by copyright when their individual authors and titles were not part of the database’s copyright registration. The Fourth Circuit affirmed the district court’s decision that the individual photographs had been registered and held that reading
The individual photographers are not parties to this action, and the parties have not commented on the issue of whether those photographers, or any other persons, possess rights to the photographs at issue here. (Def.’s Mot. at 2.) Without specifically addressing the issue here, the Second Circuit considered the question whether the copyright registration of a magazine (deemed a collective work by the Copyright Office) reached the contributions of the individual authors, thereby permitting the author of an article to bring a copyright infringement action. See Morris v. Bus. Concepts, Inc.,
The Seventh Circuit has not explicitly addressed this issue. The closest it has come is in Publications International, Ltd. v. Meredith Corp.,
Defendant contends that the court should adopt its reading of
As Plaintiff notes, the Copyright Office appears to have adopted an interpretation of
At this early stage, and in light of the varying interpretations of
II. Copyright Protection of Pending Applications
As noted above, Defendant challenges the copyright registration of 101 of the 170 photographs at issue in this case. With
application approach). Courts adopting the registration approach urge that it follows the plain language requirements of
Although the matter is not free from doubt, the court understands the cases in this Circuit to adopt the application approach. See Chicago Bd. of Educ. v. Substance, Inc.,
Defendants’ motion to dismiss [10] is denied.
Notes
. Though Panoramic lists only 170 photographs, it identifies 276 different limited licenses that McGraw-Hill allegedly exceeded. (Table of Images [1-1], Ex. 1 to Compl.) The number of limited licenses Plaintiff identifies exceeds the number of photographs because some of the photographs were licensed multiple times for different purposes.
. Though the parties use the term "compilation,” the court notes that a compilation made up of individual components which are themselves copyrightable is a "collective work,” and therefore adopts that term. See Metro. Reg'l Info. Sys., Inc. v. Am. Home Realty Network, Inc., 722 F.3d 591, 596-97 (4th Cir.2013) (citing
. Muench was abrogated in Reed Elsevier, Inc. v. Muchnick,
. As noted earlier, Plaintiff argues that even if its registrations of the 52 photographs were improper because of the omission of required author and title information, its registration nevertheless covers the challenged photographs because the omissions were excusable errors within the meaning of