American Visuals Corp. v. Holland

162 F. Supp. 14, 117 U.S.P.Q. (BNA) 180, 1957 U.S. Dist. LEXIS 2603
CourtDistrict Court, S.D. New York
DecidedNovember 26, 1957
StatusPublished
Cited by2 cases

This text of 162 F. Supp. 14 (American Visuals Corp. v. Holland) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Visuals Corp. v. Holland, 162 F. Supp. 14, 117 U.S.P.Q. (BNA) 180, 1957 U.S. Dist. LEXIS 2603 (S.D.N.Y. 1957).

Opinion

THOMAS F. MURPHY, District Judge.

This action is for infringement of copyright, unfair competition and the misuse of confidential information by plaintiff’s former employees. It relates to two pamphlets — plaintiff’s pamphlet entitled “Killer in the Streets” and defendant Holland’s “It Can’t Happen to Us.” Each pamphlet details pictorially in cartoon style three common types of highway accidents resulting from careless driving by members of one family.

Plaintiff originally moved before Judge Dawson for preliminary injunction, which was denied with opinion. D.C.S.D.N.Y.1954, 126 F.Supp. 513, 514. On appeal Judge Dawson’s order was affirmed. 2 Cir., 1955, 219 F.2d 223.

Judge Dawson compared both pamphlets and found “An examination of these two books or pamphlets does not sufficiently indicate that the execution of the basic idea in the first book has been plagiarized in the other. * * * The fact that certain episodes are used which are typical of the dangers of careless or reckless driving is not, in and of itself, sufficient to indicate in a motion for preliminary injunction that the book in question was an infringement of the copyrighted book.” He concluded on the infringement issue, “the treatment of the episodes in the second book is different. The art work is different. The composition is different. It thus does not appear that there is sufficient similarity in the execution of the work to justify the Court in reaching the conclusion on this motion for a preliminary injunction that the registered copyright has been infringed.” On the other causes of action he found that there were sufficient issues of fact to warrant a trial.'

On appeal, the Court of Appeals held that there was no abuse of discretion in denying injunction pendente lite. It went on to state, “Only the expression of ideas is copyrightable, and Judge Dawson was of opinion (126 F.Supp. 515) [sic] that there was not ‘sufficient similarity in the execution of the work’ to show infringement. The pictures in the accused pamphlet are different from, and superior to, those of plaintiff’s pamphlet. Even if some of the words ascribed to the pictured characters are sufficiently similar to suggest plagiarism, as to which it is unnecessary to express an opinion, the denial of a temporary injunction was proper, because the affidavits raise a question as to the validity of plaintiff’s copyright on the ground that its pamphlet, under a different title, had been dedicated to the public by prior publication without any copyright notice. Furthermore, the affidavits do not show that money damages will not be an adequate remedy or that plaintiff will suffer irreparable injury if a temporary injunction is denied.” [219 F.2d 224.]

Thereafter defendant moved for summary judgment on the ground that plaintiff’s work “Killer in the Streets” was not published within the meaning of 17 U.S. C. § 10 and that the form of work rendered it not copyrightable. Judge Sugarman granted that motion in an unreported decision, and also held that in the absence of copyright jurisdiction he could not entertain the claim for misuse of confidential information and dismissed the fifth cause of action.

On appeal the order was reversed. 2 Cir., 1956, 239 F.2d 740. The Court of Appeals held that there was sufficient publication and that plaintiff had a valid statutory copyright; that the material was copyrightable and that even if there was no publication the court had jurisdiction of the non-statutory causes of action because of 28 U.S.C. § 1338(b).

Before discussion of the merits after trial some disposition must be made of the effect of the two opinions by the Court of Appeals insofar as they establish “the law of the case.” We conclude it is no longer open to dispute that this court has jurisdiction on all causes of action and that plaintiff had a valid statutory copyright. No facts appeared on trial different from what the Court of Appeals relied on in arriving at this con-[16]*16elusion. The more troublesome question is whether anything Judge Dawson said in the District Court or anything the Court of Appeals said on the appeal from the denial of the injunction pendente lite is binding on the trial court insofar as issues of fact are presented. As we view it the only sentence that spells out a finding of fact in the Court of Appeals’ opinion, 2 Cir., 1955, 219 F.2d 223, 224 is, “the pictures in the accused pamphlet are different from, and superior to, those of the plaintiff’s pamphlet.” But little time need be spent on this issue since it agrees with our finding.

Judge Dawson’s finding that “an examination of these two books or pamphlets does not sufficiently indicate that the execution of the basic idea in the first book has been plagiarized in the other” is disturbing but, on analysis, not insurmountable. The most he says is that “an examination * * * does not sufficiently indicate * * * *” Obviously he was referring to the necessity on such a motion for a clear and convincing impression of plagiarism. In any event and with deference, we do not feel bound by any “law of the case” theory in view of the comparatively recent reexamination of that phrase by Judge Hand in Dictograph Products Co. v. Sonotone Corp., 2 Cir., 1956, 230 F.2d 131, 134-136, and accordingly we approach the merits of the controversy.

Plaintiff is engaged in the business of creating and selling illustrated books for industrial purposes. In 1950 it conceived and created an illustrated cartoon booklet on highway safety entitled “Sudden Death.” Undoubtedly the title and the subject matter were prompted by the famous article entitled “And Sudden Death” published in the Reader’s Digest in 1935. For a period of two years plaintiff restricted distribution of the pamphlet, still in rough dummy form, to a limited number of persons. In August 1952 defendant Holland, at that time one of plaintiff’s salesmen, showed the pamphlet to a Mr. Browne of the Aetna Casualty Company who suggested a change of name to “Killer in the Streets.” The name was changed and the pamphlet "cleaned up” by plaintiff’s other employee, defendant Schwartz, i. e., he redid some of the lettering and copying but none of the creative work. In September 1952 defendant Holland, on behalf of plaintiff, attended a convention of accident and casualty insurance companies in the Poconos, Pennsylvania, and distributed some 100 copies of plaintiff’s pamphlet, still in dummy form, and induced an insurance association to distribute a similar number to its members. On September 25, 1953, Holland left plaintiff’s employ and started a new business under the name and style of Frederick A. Holland Company, and within a short time thereafter published his pamphlet “It Can’t Happen to Us”, oddly enough for a group of insurance companies who, according to him, expressed no interest when “Killer in the Streets” was shown to them. It is undisputed that Schwartz did the actual art work in “It Can’t Happen to Us” and that he was paid for his labor and is not a partner, nor did he share in the profits, of defendant Holland’s publication and sale. His recollection was not clear as to whether or not he had “Killer in the Streets” before him at the time of the preparation of “It Can’t Happen to Us”, but we find as a fact that he did.

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162 F. Supp. 14, 117 U.S.P.Q. (BNA) 180, 1957 U.S. Dist. LEXIS 2603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-visuals-corp-v-holland-nysd-1957.