Design Basics, LLC v. Best Built, Inc.

223 F. Supp. 3d 825, 2016 WL 8215055, 2016 U.S. Dist. LEXIS 185787
CourtDistrict Court, E.D. Wisconsin
DecidedDecember 8, 2016
DocketCase No. 14-C-597
StatusPublished
Cited by1 cases

This text of 223 F. Supp. 3d 825 (Design Basics, LLC v. Best Built, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Design Basics, LLC v. Best Built, Inc., 223 F. Supp. 3d 825, 2016 WL 8215055, 2016 U.S. Dist. LEXIS 185787 (E.D. Wis. 2016).

Opinion

DECISION AND ORDER

William C. Griesbach, Chief Judge United States District Court

In this action, Plaintiffs Design Basics, LLC and Plan Pros, Inc. allege Defendants Best Built Inc. and Craig Kassner infringed copyrights held by Plaintiffs in [828]*828architectural works. Arising under federal law, their claims provide this court with jurisdiction under 28 U.S.C. §§ 1331 and 1338(a). The case is before the court on the parties’ cross motions for summary judgment and partial summary judgment. Plaintiffs argue that they are entitled to partial summary judgment because they own valid copyrights, Defendants had access to Plaintiffs’ protected works, and Defendants do not have a factual basis to support ten of their affirmative defenses. Defendants seek summary judgment on their affirmative defenses in which they contend that most of the alleged infringement at issue in the case is barred by the three-year statute of limitations or alternatively, that the case is subject to a release included in a settlement agreement entered into by Plaintiff Design Basics and a third-party. For the reasons below, Plaintiffs’ motion will be granted in part and denied in part and Defendants’ motion will be denied. The parties’ motions to seal will be granted.

BACKGROUND

Design Basics LLC and Plan Pros Inc. are Nebraska companies engaged in the business of creating, publishing, and licensing architectural plans and designs. (Pis.’ Proposed Undisputed Facts (PPUF) at ¶ 1, EOF No. 153.) Best Built Inc. is a Wisconsin company that markets, constructs, and sells residential homes. Craig Kassner is a vice president and former president of Best Built. (Defs.’ Proposed Undisputed Facts (DPUF) at ¶2, ECF No. 161.)

Plaintiffs claim that on May 25, 2011, they became aware of Defendants’ alleged infringement of nine of Plaintiffs’ copyright-protected residential home plans. (PPUF at ¶ 9.) Specifically, Plaintiffs assert that Best Built’s “Columbia” home plan infringes Design Basics’ “Bancroft” plan; Best Built’s “Hampton” plan infringes Design Basics’ “Monterey” plan; Best Built’s “Mayfield” plan infringes Design Basics’ “Tyndale” plan; Best Built’s “Rialto” plan infringes Design Basics’ “Laverton” plan; Best Built’s “Saratoga” plan infringes Design Basics’ “Paterson” plan; Best Built’s “Calgary” plan infringes Design Basics’ “Plainview” plan; and Best Built’s ‘Weaver” plan infringes Design Basics’ Weaver” plan. Plaintiffs also discovered that Defendants constructed three-dimensional copies of Design Basics’ Lav-erton, Paterson, Sinclair, Tyndale, and Weaver designs as well as Plan Pros’ Sadie design. (Id. at ¶ 10.) Each of the Plaintiffs’ plans were registered with the U.S. Copyright Office. (Id. at ¶ 6.)

Plaintiffs assert that their plans have become “ubiquitous in the marketplace.” (Id. at ¶ 5.) Since 1996, Design Basics has marketed its architectural work on its website, http://www.designbasics.com. A former Best Built employee testified in deposition that, although he could not recall the names of any websites specifically, it was his practice to go to other designers’ websites when drafting Defendants’ plans. (Id. at ¶ 22.) Plaintiffs also provided publications to the Brown County Homebuild-ers Association and to construction companies who purchased them. (Id. at ¶ 16.) Defendant Craig Kassner’s brother, Steven Kassner, ordered fifty-two catalogs for his construction company from January 7, 1992 through June 9, 2000. (Id. at ¶ 17.) Craig Kassner worked for his father’s company, James Kassner Construction, from 1988 to 1992. (Id. at ¶23.) During that time, the two construction companies shared office space. (Id.) Defendants contend that they neither ordered Design Basics’ home plan design books nor used the books purchased by Steven Kassner Construction. (DPUF at ¶¶ 10-11.)

[829]*829However, through discovery, Plaintiffs learned that Defendants had access to Design Basics’ “Weaver” design and Plan Pros’ “Sadie” design. On April 19, 2016, Defendants produced their inventory of electronic plans. (PPUF at ¶ 24.) This production included a folder of designs for a home entitled ‘Weaver,” which Plaintiffs contend is similar to Design Basics’ copyright-protected plan also entitled “Weaver.” (Id. at ¶¶ 25-26.) Defendants also produced a file containing a marked-up copy of Plan Pros’ “Sadie” design. (Id. at ¶ 27.) Defendants concede that they had access to the “Weaver” and “Sadie” designs, but dispute that they had access to the Plaintiffs’ other seven designs.

Defendants contend that the vast majority of the homes at issue in this case were built using architectural plans designed by another entity, Hoida Lumber & Components, Inc. a/k/a Hoida, Inc. and Hoida Design Services. (DPUF at ¶5.) Defendants seek partial summary judgment based on a settlement agreement entered into by Design Basics and a third-party, ProBuild Company LLC. (Id. at ¶ 13.) In 2010, Design Basics sued ProBuild, a national lumberyard, for widespread copyright infringement. On September 12, 2011, Design Basics and ProBuild entered into a confidential settlement agreement under which Design Basics released certain claims for infringement of its copyrights and agreed to license certain uses of its copyrights for plans drawn by ProBuild or its predecessors. (ProBuild Settlement Agreement (PSA), ECF No. 100-6.) Defendants assert that Hoida is a predecessor of ProBuild. (DPUF at ¶ 12.) As such, they argue many of Plaintiffs’ claims against them are covered by the release and license included in the PSA.

LEGAL STANDARD

Summary judgment is appropriate when the moving party shows that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). All reasonable inferences are construed in favor of the nonmoving party. Foley v. City of Lafayette, 359 F.3d 925, 928 (7th Cir. 2004). The party opposing the motion for summary judgment must “submit evidentiary materials that set forth specific facts showing that there is a genuine issue for trial.” Siegel v. Shell Oil Co., 612 F.3d 932, 937 (7th Cir. 2010) (citations omitted). “The nonmoving party must do more than simply show that there is some metaphysical doubt as to the material facts.” Id. Summary judgment is properly entered against a party “who fails to make a showing sufficient to establish the existence of an element essential to the party’s case, and on which that party will bear the burden of proof at trial.” Parent v. Home Depot U.S.A., Inc., 694 F.3d 919, 922 (7th Cir. 2012) (internal quotations omitted).

. ANALYSIS

A. Defendants’ Late-Filed Motion

Defendants filed their motion for summary judgment on September 6, 2016. Yet, the parties were required to file their motions for summary judgment on September 5, 2016 in accordance with the scheduling order entered April 4, 2016. (ECF No.

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Bluebook (online)
223 F. Supp. 3d 825, 2016 WL 8215055, 2016 U.S. Dist. LEXIS 185787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/design-basics-llc-v-best-built-inc-wied-2016.