Diagnostic Unit Inmate Council v. Films Inc.

88 F.3d 651, 1996 WL 376680
CourtCourt of Appeals for the Eighth Circuit
DecidedJuly 8, 1996
Docket94-2867, 94-2917
StatusPublished
Cited by14 cases

This text of 88 F.3d 651 (Diagnostic Unit Inmate Council v. Films Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Diagnostic Unit Inmate Council v. Films Inc., 88 F.3d 651, 1996 WL 376680 (8th Cir. 1996).

Opinions

LOKEN, Circuit Judge.

The Arkansas Department of Corrections (“ADC”) shows videotaped movies to inmates in the common areas of its prisons. In 1985, an attorney representing motion picture copyright owners wrote ADC, warning that it would infringe owner copyrights to use videotapes licensed for home use only at these public performances. ADC has since contracted with appellees Films Inc. (“Films”) and Swank Motion Pictures, Inc. (“Swank”), to provide videotaped movies that come with “public performance distribution rights.”

Certain Arkansas inmates commenced this class action against Films and Swank seeking a declaratory judgment under the Copyright Act that in-prison showings of “home use only” rented movies do not infringe the owners’ copyrights, either because prison showings are not “public performances” within the meaning of 17 U.S.C. §§ 101 and 106(4), or because such showings are “fair use” within the meaning of 17 U.S.C. § 107. The inmates believe that ADC could obtain a more desirable selection of movies at less cost by renting from local video stores. For example, the 1994 contract between ADC and Swank provided that Swank would supply 121 videotapes for a total annual cost of $9,600, whereas the parties have stipulated that ADC could rent a comparable number of “home use only” videotapes for an annual cost of about $2,200.

The district court1 initially dismissed the complaint for failure to state a legally eogni-[653]*653zable claim, but we remanded with directions to consider whether ADC should be joined. Diagnostic Unit Inmate Council v. Motion Picture Ass’n of America, Inc., 953 F.2d 376, 379 (8th Cir.1992). On remand, ADC was joined as an involuntary plaintiff under Fed. R.Civ.P. 19(a). However, when ADC declined to take a position in the lawsuit, the district court again dismissed on the ground that there is no actual controversy. The inmates appeal. Counsel for ADC has advised this court that ADC “did not join with the Inmate Council in appealing the judgment of the district court and is, therefore, not an appellant in this case.” Agreeing with the district court that ADC’s refusal to participate means there is no actual controversy, we affirm.

1. The Declaratory Judgment Act authorizes federal courts to declare the rights of interested parties “[i]n a ease of actual controversy.” 28 U.S.C. § 2201. The requirement of an “actual controversy” is imposed by Article III of the Constitution. See Steffel v. Thompson, 415 U.S. 452, 458, 94 S.Ct. 1209, 1215, 39 L.Ed.2d 505 (1974). In general, an actual controversy is “a substantial controversy, between parties having adverse legal interests, of sufficient immediacy and reality to warrant the issuance of a declaratory judgment.” Maryland Cas. Co. v. Pacific Coal & Oil Co., 312 U.S. 270, 273, 61 S.Ct. 510, 512, 85 L.Ed. 826 (1941).

In patent and copyright cases, there is an actual controversy if “defendant in the declaratory judgment lawsuit has either expressly or impliedly charged the plaintiff with infringement.” Sherwood Medical Indus., Inc. v. Deknatel, Inc., 512 F.2d 724, 727 (8th Cir.1975). The defendant copyright owner must have evidenced its intent to enforce a copyright, usually by a charge or threatened charge of infringement, such as the 1985 attorney letter to ADC. And the declaratory judgment plaintiff must have engaged in “present activity which could constitute infringement or concrete steps taken with the intent to conduct such activity.” BP Chemicals Ltd. v. Union Carbide Corp., 4 F.3d 975, 978 (Fed.Cir.1993). In a copyright ease, “plaintiff must show that it has actually published or is preparing to publish the material that is subject to the defendant’s copyright [in a manner that] places the parties in a legally adverse position.” Texas v. West Pub. Co., 882 F.2d 171, 175 (5th Cir.1989), cert. denied, 493 U.S. 1058, 110 S.Ct. 869,107 L.Ed.2d 953 (1990); see also Wembley, Inc. v. Superba Cravats, Inc., 315 F.2d 87, 90 (2d Cir.1963) (“where there is no actual manufacture, use or sale, and no immediate intention and ability to practice the invention, there is no justiciable [patent] controversy”).

The inmates as declaratory judgment plaintiffs cannot satisfy this standard. True, the inmates have an indirect financial stake in the issue because ADC pays for movie rentals from an Inmate Welfare Fund generated by profits from commissaries sales to inmates and prison employees. However, while that Fund must be spent “for the general benefit of the inmates,” Ark.Code Ann. § 12-29-107, ADC has total authority over all Fund expenditures and, more importantly, ADC has complete control over the renting and showing of videotaped movies at its prisons. Inmates may request certain movies, but they cannot rent movie videotapes for prison showings. The inmates do not, and cannot, engage in the activity that prompted the copyright owners’ 1985 charge of infringement. Thus, there is no actual controversy between the inmates and defendants Films and Swank that would support Declaratory Judgment Act jurisdiction.

2. On remand, we directed the district court to “consider, after obtaining the views of the Attorney General of Arkansas, whether [ADC] should be joined.” 953 F.2d at 379. ADC received the 1985 infringement letter, and it continues to rent and show videotaped movies in its prisons. If ADC credibly asserted a present intent to use ■ home-use-only movies for these showings, it would have standing to seek a declaratory judgment that such activity would not infringe the owners’ copyrights. However, though invited to join and later involuntarily joined in the action, ADC has steadfastly refused to take a position on these copyright issues. There is no other evidence in the record that Films, Swank, or any copyright owner objects to the way in which ADC is [654]*654now obtaining and showing videotaped movies. Accordingly, there is no party plaintiff whose present activity, or intended present activity, could constitute infringement.

The inmates nonetheless suggest that ADC’s joinder as an involuntary plaintiff, without more, created an actual controversy. We disagree. Rule 19(a), which authorizes joinder of unwilling plaintiffs, “makes no provision for a plaintiff to require another person to maintain an action vested solely in such other person, even though its maintenance might result in benefit to the plaintiff.” Coast v. Hunt Oil Co., 195 F.2d 870, 872 (5th Cir.), cert. denied, 344 U.S.

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Bluebook (online)
88 F.3d 651, 1996 WL 376680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/diagnostic-unit-inmate-council-v-films-inc-ca8-1996.