Computer Management Assistance Company v. Robert F. Decastro, Inc. Information Management Consultants & Associates, Inc.

220 F.3d 396, 55 U.S.P.Q. 2d (BNA) 1643, 2000 U.S. App. LEXIS 17962, 2000 WL 1022812
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 25, 2000
Docket99-30513
StatusPublished
Cited by81 cases

This text of 220 F.3d 396 (Computer Management Assistance Company v. Robert F. Decastro, Inc. Information Management Consultants & Associates, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Computer Management Assistance Company v. Robert F. Decastro, Inc. Information Management Consultants & Associates, Inc., 220 F.3d 396, 55 U.S.P.Q. 2d (BNA) 1643, 2000 U.S. App. LEXIS 17962, 2000 WL 1022812 (5th Cir. 2000).

Opinion

ROBERT M. PARKER, Circuit Judge:

Plaintiff-Appellant appeals the district court’s entry of judgment for Defendant Appellee after a bench trial on claims of copyright infringement, trade secret misappropriation and unfair trade practices. We affirm the district court’s ruling on these claims. Plaintiff also appeals the district court’s award of attorney’s fees pursuant to a fee-shifting statute. We express no judgment on the validity of this fee determination and dismiss this portion of the appeal for lack of jurisdiction.

*399 FACTUAL HISTORY AND PROCEEDINGS BELOW

Computer Management Assistance Company (“CMAC”) developed a computer program for the picture framing industry named ACCESS. ACCESS is a front-end pricing program that assists distributors in managing sales and facilitating transactions with customers. In 1983, CMAC licensed ACCESS to Robert F. de Castro, Inc., (“deCastro”) a major wholesale distributor of picture frames, and trained de-Castro’s information systems manager, Luis Escalona, (“Escalona”) to use ACCESS. Under this license agreement, CMAC placed confidentiality restrictions on deCastro’s right to use and disclose ACCESS. 1

CMAC’s package to deCastro included a sublicense of an interpreter, licensed by CMAC to run ACCESS on deCastro’s computer. ’ An interpreter translates instructions in a specific program language, in which a programmer has written a program (its “source code”), into a specific numerical language (its “object code”) that the computer is built to run on. -BUSS also depended on the CMAC licensed interpreter to run on deCastro’s computer.

In 1992, Information Management Consultants (“IMC”), a value-added reseller of FACTS, a comprehensive software package for wholesale distributors in general (i.e., not industry specific) contacted deCastro. The next year, IMC presented a proposal to install and modify FACTS to fit deCastro’s needs. This was IMC’s inaugural foray into the picture framing industry. A document referred to as “Appendix A” proposed modifications to incorporate deCastro’s internal BUSS and interface with deCastro’s pricing regime.

In August of 1993, deCastro decided to enter into a new contract with CMAC. CMAC agreed to try to modify ACCESS to provide direct order entry and for that purpose got from IMC a FACTS demonstration package including that feature. CMAC was unable to modify ACCESS to satisfy deCastro’s need for direct order capability. DeCastro renewed discussions with IMC and eventually entered into a contract for FACTS that included items from Appendix A. The uncomplicated modifications were made by adding files (approximately 750 lines of code) to generic FACTS (containing over 600,000 lines of code). IMC installed the modified FACTS and deCastro began using it in June of 1996. Because FACTS was written in a different language (BBX basic) than ACCESS, IMC also installed another interpreter. The CMAC software was still installed and the CMAC interpreter was still utilized to run BUSS.

In February of 1997, CMAC filed suit against deCastro, Escalona and IMC 2 alleging copyright infringement, trade secret misappropriation, unfair and deceptive trade practices and breach of contract. After a two-week bench trial, the district court entered judgment against CMAC on all claims. In addition, the district court awarded attorney’s fees against CMAC pursuant to the Copyright Act’s fee-shifting provision. CMAC appeals the district court’s dismissal of its claims as against IMC and the award of attorney’s fees.

STANDARD OF REVIEW

“We review the district court’s findings of fact for clear error and decide issues of *400 law de novo.” Malchi v. Thaler, 211 F.3d 953, 956 (5th Cir.2000).

DISCUSSION

I. Copyright Infringement.

A plaintiff must prove the following elements to succeed on a claim of copyright infringement: (1) ownership of the copyrighted material and (2) copying by the defendant. See Alcatel USA, Inc. v. DGI Technologies, Inc., 166 F.3d 772, 790 (5th Cir.1999). “Copyright ownership is shown by proof of originality and copy-rightability in the work as a whole and by compliance with applicable statutory formalities.” Engineering Dynamics, Inc. v. Structural Software, Inc., 26 F.3d 1335, 1340 (5th Cir.1994) (citing Plains Cotton Coop. Ass’n v. Goodpasture Computer Serv., Inc., 807 F.2d 1256, 1260 (5th Cir.1987)), opinion supplemented on denial of rehearing by 46 F.3d 408 (5th Cir.1995). It is undisputed that CMAC obtained a copyright for ACCESS.

Not all copying by a defendant is actionable as copyright infringement. “A copy is legally actionable if (1) the alleged infringer actually used the copyrighted material to create his own work, and (2) substantial similarity exists between the two works.” Alcatel, 166 F.3d at 790. The factual question of whether the defendant actually used the copyrighted material can be inferred by showing proof of access to the copyrighted work and probative similarity between the defendant’s work and the copyrighted work. See Engineering Dynamics, 26 F.3d at 1340-41 (citations omitted). The second question is whether the copying is legally actionable. The inquiry here is whether there is substantial similarity between the two works. See id.

Computer programs are entitled to copyright protection. See id. at 1341; see also Vault Corp. v. Quaid Software Ltd., 847 F.2d 255, 259 (5th Cir.1988) (noting that the Copyright Act was amended in 1976 “to include computer programs in the definition of protectable literary works”). The Copyright Act defines a computer program as “a set of statements or instructions to be used directly or indirectly in a computer in order to bring about a certain result.” 17 U.S.C. § 101 (1994). “[C]opyright protection for an original work of authorship [does not] extend to any idea, procedure, process, system, method of operation, concept, principle, or discovery, regardless of the form in which it is described, explained, illustrated, or embodied in such work.” 17 U.S.C. § 102(b) (1994). In other words, copyright protection does not extend to ideas, per se, but to the particular expression of those ideas.

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220 F.3d 396, 55 U.S.P.Q. 2d (BNA) 1643, 2000 U.S. App. LEXIS 17962, 2000 WL 1022812, Counsel Stack Legal Research, https://law.counselstack.com/opinion/computer-management-assistance-company-v-robert-f-decastro-inc-ca5-2000.