Bridge Publications, Inc. v. F.A.C.T.Net, Inc.

183 F.R.D. 254, 48 U.S.P.Q. 2d (BNA) 1919, 1998 U.S. Dist. LEXIS 17574, 1998 WL 774228
CourtDistrict Court, D. Colorado
DecidedNovember 4, 1998
DocketNo. Civ.A. 95-K-2143
StatusPublished
Cited by5 cases

This text of 183 F.R.D. 254 (Bridge Publications, Inc. v. F.A.C.T.Net, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Colorado primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bridge Publications, Inc. v. F.A.C.T.Net, Inc., 183 F.R.D. 254, 48 U.S.P.Q. 2d (BNA) 1919, 1998 U.S. Dist. LEXIS 17574, 1998 WL 774228 (D. Colo. 1998).

Opinion

MEMORANDUM OPINION AND ORDER ON FURTHER PENDING MOTIONS

KANE, Senior District Judge.

Bridge Publications, Inc., a California nonprofit corporation (“BPI”) sues Lawrence Wollersheim, Robert Penny and F.A.C.T.Net, Inc. (“FACTNET”) for injunc-tive relief and damages for copyright infringement. Because this is an action for copyright infringement under 17 U.S.C. § 501, jurisdiction is based on 28 U.S.C. §§ 1331 and 1338(a),

Before me are BPI’s Motion to Strike & In Limine Motion to Exclude, BPI’s Motion for Summary Judgment against all Defendants, Penny’s Cross-motion for Summary Judgment, and BPI’s Motion for Sanctions under Rule 11. Oral argument on these motions was heard on Tuesday, October 6, 19981 at [256]*256which time I struck BPI’s Motion to Strike & In Limine Motion to Exclude, and severed any issues with respect to Defendant Penny. Any such issues, will be dealt with at a subsequent proceeding. I deny BPI’s motions for summary judgment and for Rule 11 sanctions.

Also pending (and not orally argued) are Defendants FACTNET and Wollersheim’s Motion to Amend Pretrial Order to Add a Witness, which I grant, and their Motion to Vacate Protective Order, which I deny. I appoint a special master under Fed.R.Civ.P. 53(b) and vacate the pretrial conference set for November 16, 1998 and trial date of January 4,1999.

I. Background.

BPI is one of numerous formal entities forming part of the corporate structure of the Church of Scientology (“Scientology”) founded by L. Ron Hubbard. FACTNET is a non-profit educational and charitable corporation registered and with its principal place of business in Colorado. Wollersheim serves as President of the Board and Executive Director of FACTNET and Penny is a member of the FACTNET Board. Wollersheim and Penny are former Scientologists.

Wollersheim and Scientology have a long history of opposing each other in litigation. In 1980, Wollersheim filed tort claims against the Church of Scientology of California (“CSC”) arising out of his dissatisfaction with counseling he had received. See Woller-sheim v. Church of Scientology, 212 Cal. App.3d 872, 66 Cal.Rptr.2d 1 (Cal.Ct.App. 1989). The jury awarded Wollersheim a judgment of $30 million in damages, which was reduced. Wollersheim v. Church of Scientology, 6 Cai.Rptr.2d 532 (Cal.Ct.App. 1992). After numerous appeals and challenges, this judgment became final and collectible in March 1994. Wollersheim has not collected the judgment and, in May 1997, moved the California Superior Court to amend it to add Religious Technology Center (“RTC”) and Church of Scientology International (“CSI”) as judgment debtors. The Superior Court granted Wollersheim’s motion in October 1997, finding that RTC and CSI were alter egos of CSC and had controlled the litigation in the CSC case. This matter is apparently on appeal to the Second District Court of Appeal of the State of California. According to Wollersheim’s declaration his judgment in excess of six million dollars is outstanding.

FACTNET is a small non-profit corporation which maintains a library and archive information concerning, inter alia, an ongoing public controversy regarding Scientology’s status as a religious tax exempt organization and charges that its practices involve psychological coercion which has resulted in mental and physical harm to a significant number of its adherents. Much of the information maintained by FACTNET is available to the public on FACTNET’s Bulletin Board Service on the Internet.2 Other data is stored in a private portion of the FACTNET library, which includes information concerning and provided by former Scientologists and their families.

In the instant case, BPI seeks a judgment of copyright infringement against FACT-NET, Wollersheim and Penny. BPI alleges (1) it is the exclusive licensee of the copyrights in 1,914 copyrighted works authored by L. Ron Hubbard; (2) Defendants made unauthorized verbatim copies of these works in both hard copy and computer readable form (stored on hard drives, back-up tapes, floppy disks and CD-ROM’s (“CD’s”)); and (3) Defendants offered for sale to the public, and in fact sold CD’s containing computer readable copies of the vast majority of these works, all in violation of BPI’s exclusive rights under 17 U.S.C. § 106.

BPI seeks entry of a permanent injunction prohibiting Defendants from any unauthorized reproduction, adaptation, distribution, [257]*257publication, performance or display, including any so-called archiving, in any media, of the works of L. Ron Hubbard, including the 1,914 works identified by BPI. BPI also seeks all remedies under the Copyright Act, including statutory damages and attorney fees for Defendants’ infringements, pursuant to 17 U.S.C. §§ 504(c) and 505, as well as impoundment and destruction of all infringing copies and the means for making such copies, pursuant to 17 U.S.C. § 503. Furthermore, BPI alleges Defendants’ infringements were willful and that BPI is therefore entitled to enhanced statutory damages pursuant to 17 U.S.C. § 504(c)(2) in the amount of $100,000 per work.

Defendants deny BPI has valid copyrights to the works at issue and deny violating any alleged copyright. They maintain there are only 13 works at issue herein; and one or more Defendants may or may not have made copies of portions of those works; all the works copied were copied for scholarship, research and backup purposes against any ongoing and threatened attacks by Scientology, and fell within the doctrine of fair use; and Defendants did not publish any of the works, nor did they offer them for sale or sell any of the works in violation of BPI’s licence. Defendants deny any copying of portions of the thirteen works was willful, asserting it was entirely privileged. They further deny BPI has any right to recovery herein and seek an award of attorney fees for the malicious prosecution of this action.

Defendants assert affirmative defenses of laches, collateral estoppel, res judicata, unclean hands, copyright misuse, unlawful enforcement of the alleged copyrights (claiming the writ of seizure allowing original Plaintiff RTC to search for documents was obtained unlawfully), public domain, fair use, and the library/archive exception of 17 U.S.C. § 108. Further defenses asserted are that BPI’s claims are barred because it is not the actual owner of the alleged copyrights which were obtained by fraud, duress, undue influence or illegal procedures as well as statute of limitations, abuse of process, judicial fair use, set off, and release.3

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Bluebook (online)
183 F.R.D. 254, 48 U.S.P.Q. 2d (BNA) 1919, 1998 U.S. Dist. LEXIS 17574, 1998 WL 774228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bridge-publications-inc-v-factnet-inc-cod-1998.