CMM Cable Rep, Inc. v. Ocean Coast Properties, Inc.

97 F.3d 1504
CourtCourt of Appeals for the First Circuit
DecidedSeptember 20, 1996
DocketNos. 95-1985, 95-2059
StatusPublished
Cited by44 cases

This text of 97 F.3d 1504 (CMM Cable Rep, Inc. v. Ocean Coast Properties, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CMM Cable Rep, Inc. v. Ocean Coast Properties, Inc., 97 F.3d 1504 (1st Cir. 1996).

Opinion

TORRUELLA, Chief Judge.

CMM Cable Rep., Inc. (“CMM”) appeals from the district court’s grant of summary judgment dismissing all but one of its claims for federal copyright, trademark, and trade dress infringement and related state law claims. See CMM Cable Rep., Inc. v. Ocean Coast Properties, Inc., 888 F.Supp. 192 (D.Me.1995). CMM brought suit against Ocean Coast Properties, Inc. (radio station WPOR), several of WPOR’s executives, and its graphic design consultant (collectively referred to as ‘WPOR”) alleging infringement of CMM’s employment theme-based radio promotional contest by WPOR’s similar promotion. The only claim to survive summary judgment — copyright infringement by WPOR’s direct mail brochure — was tried to a jury, whose verdict CMM also appeals. Also before us is WPOR’s cross-appeal from the district court’s denial of summary judgment on CMM’s only surviving claim. We affirm the district court’s summary judgment and the jury verdict. In so doing, we address CMM’s copyright arguments but neither address its trademark nor trade dress argu-[1508]*1508mente as we find those waived. Finally, we decline to address WPOR’s cross-appeal.

FACTUAL BACKGROUND

As this is primarily an appeal from the grant of summary judgment, we review the summary judgment materials1 in the light most favorable to CMM, the nonmov-ant, drawing all reasonable inferences in its favor. Alan Corp. v. Int’l Surplus Lines Ins. Co., 22 F.3d 339, 341 (1st Cir.1994). Under this review,2 those materials show the following.3

CMM produces and markets direct mail promotional campaigns to assist radio stations in preserving and increasing listener-ship. Operating on a national level, CMM markets its services to radio stations nationwide by sending radio stations sample promotional materials that-bear copyright and trademark notifications. Its services are provided on a “market exclusive” basis, as its promotions are only effective if sold to a single radio station in a particular market.4 CMM’s radio station customers spend roughly $30,000 per campaign for CMM to prepare all printed materials associated with its on-air promotion and handle the actual mailing.

At the center of this litigation are two of CMM’s most successful direct mail radio promotions, entitled “Payroll Payoff®” and “Paycheck Payoff®,” which it registered as servicemarks in 1991. CMM owns registered copyrights for its promotional materials prepared in connection with these promotions.5 Payroll Payoff® and Paycheck Payoff®, (collectively referred to as “Payroll Payoff®”),6 have been marketed to and purchased by numerous radio stations nationwide, to whom CMM has continuously provided copyright notice regarding its promotional materials. The general idea underlying Payroll Payoff® is to entice a lis[1509]*1509tener to tune into the radio station by promising the listener payment by the radio station of an “hourly wage” if the listener calls in after his or her name is selected and read on the air. One name is read each hour during a pre-announced time and, if the listener calls in when his or her name is called, the listener goes “on the payroll” or “on the clock” as the radio station’s “employee,” earning an “hourly wage.” If the named listener does not call within the time limit, the previous successful caller stays “on the payroll” and continues to be paid until replaced by a named listener who does call in on time. All contestants who successfully go “on the payroll” are eligible for a grand prize drawing at the end of the promotion period. Listeners enter the promotion by submitting their names to the radio station in response to direct mail pieces containing mail-in or fax-in reply forms. See CMM Cable Rep., Inc. v. Ocean Coast Properties, Inc., 888 F.Supp. 192, 195 (D.Me.1995); CMM Cable Rep., Inc. v. Keymarket Communications, Inc., 870 F.Supp. 631, 633-34 (M.D.Pa.1994).

Direct mail radio contest promotions having an accumulating cash prize, such as those involved in the instant case, have certain standard, inherent characteristics, which include: (i) inviting a potential listener to enter the promotional contest, (ii) requiring the contestant to listen to the station to determine the right moment to participate, and (iii) requiring the contestant to telephone the station at a designated time. CMM’s principal, Nancy Izor (“Izor”), “borrowed” the idea for its payroll promotions from an earlier radio promotion she heard called “Working Women’s Wednesday,” in which female listeners called in on Wednesday to be placed on the radio station’s “payroll” to earn an “hourly wage” (the ‘WWW promotion” or “WWW”). Izor had in her possession the radio station’s typewritten sheet of contest rules for the WWW promotion, of the kind stations make available to participants upon request. In contrast to the WWW promotion, CMM’s version runs all week, is open to men as well as women, and the cash prize accumulates hourly. Another difference is that CMM’s version involves supporting “printed collateral” materials; the WWW promotion was an on-air promotion only without any accompanying promotional materials. CMM’s direct mail brochures are original work products of CMM.

WPOR is a popular country music radio station operating out of Portland, Maine, and serving the greater metropolitan area and eight surrounding counties. In the summer of 1994, WPOR contacted CMM to inquire about running one of CMM’s payroll promotions with a view to bolstering its listener-ship ratings. WPOR admitted to having in its possession, prior to contacting CMM, one of CMM’s brochures, identified during the preliminary injunction hearing as the brochure prepared for radio station WKIX in Punta Gorda, Florida (the “KIX brochure”). CMM declined to license its promotion to WPOR, out of loyalty to one of WPOR’s competitors in the Portland, Maine, market, and also informed WPOR of its copyrights and trademarks for its payroll promotions. After being informed by its independent media consultant, McVay Media Consultants (“McVay Media”), that payroll-type games were not original to or conceived by CMM, WPOR decided to create its own promotion based upon the employment analogy of earning an “hourly wage.” WPOR’s promotion, entitled “Payday Contest,” involved a direct mail brochure as well as various supporting materials, consisting of newspaper and television advertisements, faxes and on-air script.

Competing against other local radio stations for listeners in the Portland-based market, WPOR ran its promotion from late September through December 14,1994, during a period known in the radio industry as the fall “sweeps period,” when the rating firm Arbi-tral measures the listenership share of each station in the Portland market. Despite running the Payday Contest, WPOR’s listener-ship in the fall 1994 sweeps period declined from its previous levels. CMM received two phone calls from WPOR’s competitors inquiring whether WPOR’s promotion was produced by CMM.

WPOR’s Payday Contest brochure was designed and produced by Graphics North, Inc. (“Graphics North”). Before it was designed, WPOR gave Graphics North’s James Spizuo-[1510]

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Bluebook (online)
97 F.3d 1504, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cmm-cable-rep-inc-v-ocean-coast-properties-inc-ca1-1996.