Chicago School Reform Board of Trustees v. Substance, Inc.

79 F. Supp. 2d 919, 53 U.S.P.Q. 2d (BNA) 1623, 28 Media L. Rep. (BNA) 1289, 2000 U.S. Dist. LEXIS 23, 2000 WL 11909
CourtDistrict Court, N.D. Illinois
DecidedJanuary 4, 2000
Docket99 C 440
StatusPublished
Cited by6 cases

This text of 79 F. Supp. 2d 919 (Chicago School Reform Board of Trustees v. Substance, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chicago School Reform Board of Trustees v. Substance, Inc., 79 F. Supp. 2d 919, 53 U.S.P.Q. 2d (BNA) 1623, 28 Media L. Rep. (BNA) 1289, 2000 U.S. Dist. LEXIS 23, 2000 WL 11909 (N.D. Ill. 2000).

Opinion

OPINION and ORDER

NORGLE, District Judge.

Plaintiff Chicago School Reform Board of Trustees and Third-Party Defendant Paul Valias move to dismiss Defendants’ Counterclaim and Third-Party Complaint and to strike three of Defendants’ Affirmative Defenses. For the following reasons, the court grants the motion.

*921 I. Background 1

The Illinois Common Schools Act empowers the Plaintiff in this case, the Chicago School Reform Board of Trustees (“the Board”), to develop and administer educational level tests. See 105 ILCS §§ 5/34-2.4, 5/34-3.3. Pursuant to this authority, the Board developed the 1998 Chicago Academic Standards Examinations (“CASE” or “tests”). The Board designed the tests to assess the educational levels of Chicago Public High School freshman and sophomore students, and to calculate up to 20% of a student’s grade in various academic subjects. The Board expected to use the tests, 22 in all, in 1999 and in future years. (See Am.Compl. ¶ 13.)

According to the Board, the tests cost approximately $1.3 million to develop. Of this cost, the John D. and Catherine T. MacArthur Foundation contributed $500,-000 from a fund that was “dedicated to pay for the professional testing design services of the Center for Research on Evaluation, Standards, and Student Testing [and] to assist [the Board] in designing CASE.” (Id. ¶ 10.) Illinois taxpayers funded the remaining $800,000. (See id.)

To protect its interest in the tests, the Board included a copyright notice on each of the 22 tests. That notice reads:

© 1998 Chicago School Reform Board of Trustees

(Answer ¶ 17.) Each of the tests also contains the following restriction:

This work may not be reproduced in any form or by any means (electronic, including photography, recording, or any information storage and retrieval) without prior permission in writing from the Chicago Public Schools.

(Id.) Additionally, the Board implemented the “Chicago Public Schools Test Security Guidelines,” which required the Guidelines to be distributed to all staff members who handle test materials. These Guidelines, as well as the CASE General Administration Policies, expressly prohibit copying the CASE examinations.

The Board administered the tests to students from January 11, 1999 through January 15, 1999. (Id.) Defendant George Schmidt (“Schmidt”), a Chicago Public School teacher and editor of Defendant newspaper Substance, Inc. (“Substance ”), 2 helped administer the January 1999 test for freshman English. (See id. ¶ 22.) Pri- or to administering the test, Schmidt received a copy of a booklet entitled “Instructions for Administering the CASE Constructed Response and Multiple Choice Examination.” (See id. ¶ R4.) The Instructions state in large, bold type: “According to the Test Security Guidelines, CASE material may not be duplicated.” (Id. ¶ 25.)

During the week of January 11, 1999, Schmidt asked Bowen High School’s CASE coordinator, Judy Wiatrowski, for copies of an unspecified number of tests for subject areas other than freshman English. Wiatrowski provided him the requested copies, and Schmidt returned them to her shortly thereafter. However, in- their Counterclaim and Third Party Complaint (collectively “Counterclaims”), Schmidt and Substance (“Defendants”) maintain that “[i]n January 1999, [they] received, through anonymous sources, copies of some of the [CASE] pilot B Examinations.” (Countered 13.) 3 Defendants *922 assert that an anonymous source left one test on Substance’s doorstep, although the court notes that Defendants share the same address. (See id.) Defendants also claim that several other tests were delivered in plain envelopes to Substance’s mailbox. (See id.) On or before January 21, 1999, Schmidt published, in the January-February, 1999 issue of Substance (Volumes XXIV, Nos. 5 and 6), entire copies of five of the tests and a substantial portion of a sixth. (See Answer ¶ 27.) In two of the test reproductions, Schmidt included the copyright notice and the “no reproduction” restriction. (See id. ¶ 28.) As for the other four reproductions, Schmidt deleted the copyright notice and the “no reproduction” restriction. (See id.) In the same issue of Substance that included copies of the tests, Schmidt criticized the tests.

On January 26, 1999, the Board filed a verified Complaint against Schmidt, Substance, Jane or John Does (One through Twenty), and Volumes XXIV, Nos. 5 and 6 of Substance (January-February, 1999), in rem. Also on January 26, 1999, the Board moved for a Temporary Restraining Order and Writ of Seizure to restrain Defendants from copying or disseminating any of the CASE tests in any format, and to give up for seizure any and all copies of Substance Volume XXIV, Nos. 5-6 (January-February 1999). The court granted the Board’s motion on the same day. On February 1, 1999, the Board sought to extend the temporary restraining order. The court denied the Board’s request.

On February 5, 1999, the Board filed an Amended Verified Complaint. Count I alleges that Defendants published the Board’s copyrighted literary works, see 17 U.S.C. § 102(a)(1), and thus violated the United States Copyright Act (“Copyright Act”), 17 U.S.C. §§ 101 et seq., and Count II claims that Defendants misappropriated trade secrets in violation of Illinois’ trade secret statutes, 765 ILCS §§ 1065/1 et seq. (See Am.Compl. at 8-14.) The Board maintains that by publishing the tests, Defendants divulged confidential materials and destroyed the Board’s future use of the tests. The Board asserts that developing more tests to replace the now-unusable tests will cost in excess of $1,000,000, (See id. ¶ 49.) The Board asks the court (1) to enjoin Defendants from continuing to publish and deliver issues of Substance which contain reproductions of the tests; (2) to order the seizure and destruction of all copies of Substance in which the tests were reproduced; (3) to report the conduct of Defendants and other “Teacher-Publishers” to the United States Attorney for the Northern District of Illinois, Eastern Division, pursuant to section 506 of the Copyright Act; (4) to award the Board damages, attorneys fees and costs, pursuant to the Copyright Act; (5) to award the Board damages, punitive damages, attorneys fees and costs, and prejudgment interest pursuant to the Illinois Trade Secrets Act; and (6) for other relief the court deems appropriate. (See id. at 14-18.)

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79 F. Supp. 2d 919, 53 U.S.P.Q. 2d (BNA) 1623, 28 Media L. Rep. (BNA) 1289, 2000 U.S. Dist. LEXIS 23, 2000 WL 11909, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chicago-school-reform-board-of-trustees-v-substance-inc-ilnd-2000.