Earth Flag Ltd. v. Alamo Flag Co.

153 F. Supp. 2d 349, 59 U.S.P.Q. 2d (BNA) 1223, 2001 U.S. Dist. LEXIS 6508, 2001 WL 527429
CourtDistrict Court, S.D. New York
DecidedMay 17, 2001
Docket00 CIV. 3961(SAS)
StatusPublished
Cited by8 cases

This text of 153 F. Supp. 2d 349 (Earth Flag Ltd. v. Alamo Flag Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Earth Flag Ltd. v. Alamo Flag Co., 153 F. Supp. 2d 349, 59 U.S.P.Q. 2d (BNA) 1223, 2001 U.S. Dist. LEXIS 6508, 2001 WL 527429 (S.D.N.Y. 2001).

Opinion

OPINION AND ORDER

SCHEINDLIN, District Judge.

Earth Flag Ltd. (“EFL”) is suing defendants, Alamo Flag Company (“Alamo”), eBay, Inc. (“eBay”), MRCR Enterprises, Inc. (“MRCR”), Robert B. Goodspeed, Worldflags, Sharif Kesbeh, Robert P. Knerr d/b/a Walliphant, and John Does 5 through 10, for copyright infringement of EFL’s flag bearing a public domain photograph of Earth taken from outer space (“Earth Flag”). 1 Plaintiff also asserts state law claims of conversion, quantum meruit, tortious interference with contractual rights, and tortious interference with prospective economic advantage. Both Alamo and eBay now move for summary judgment pursuant to Rule 56 of the Federal Rules of Civil Procedure. Plaintiff cross-moves for summary judgment. For the reasons stated below, defendants’ motions are granted and plaintiffs cross-motion is denied.

I. LEGAL STANDARD

Rule 56 provides for summary judgment “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show 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(c). “An issue of fact is ‘material’ for these purposes if it might *351 affect the outcome of the suit under the governing law [while] [a]n issue of fact is ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Shade v. Housing Auth. of City of New Haven, 251 F.3d 307, 314 (2d Cir.2001) (quotation marks and citations omitted). “In determining whether a genuine issue of material fact exists, a court must resolve all ambiguities and draw all reasonable inferences against the moving party.” Flanigan v. General Elec. Co., 242 F.3d 78, 83 (2d Cir.2001).

II. BACKGROUND

A. Parties

EFL is a California corporation with offices in Maspeth, New York, and is the owner of the copyright in the Earth Flag. See 1/31/01 Affidavit of Henry A. Waxman, President and Sole Shareholder of EFL (“Waxman Aff.”), ¶ 2. Alamo is a corporation in the business of selling a large variety of flags and flag related items, and owns a retail store in New York City. See id. ¶ 27; Alamo Rule 56.1 Statement (“Alamo 56.1”) ¶ 11. eBay is a Delaware corporation, with its principal place of business in San Jose, California. See eBay Inc.’s Statement of Undisputed Facts (“eBay 56.1”) ¶ 7. It operates a website that permits users to both sell and buy a wide variety of merchandise to each other in an auction-style format. See id. ¶ 8. eBay has created a Verified Rights Owner (“VeRO”) program, designed to enable rights holders to notify eBay of infringing listings and to request their removal. 2 See id. ¶¶ 18, 35. Plaintiff contends that eBay permitted defendants MRCR, Goodspeed, and Knerr, among others, to place on its website flags that plaintiff alleges infringe plaintiffs copyright in the Earth Flag. 3 See EFL’s Rule 56.1 Statement (“Pl.56.1”) ¶ 23a; Am. Compl. ¶¶ 4-6.

B. The Earth Flag and the “Imitation” Flags

The Earth Flag was first designed over thirty years ago by John McConnell. See PL 56.1 ¶ 3a. Since May 16, 1997, however, EFL has been the exclusive owner of the copyrights to the Earth Flag. 4 See id. ¶¶ 3b-3h. EFL markets and sells its Earth Flag (under the name “Authentic Earth Flag”) in different dimensions, the most important of which is a 3 foot by 5 foot flag which sells for approximately $50.00. See Waxman Aff. ¶ 26. The Earth Flag consists of two identical circular photographs of Earth taken from space, sewn onto each side of a dark blue synthetic fabric. A strip of white fabric is sewn onto one of the shorter ends of the flag, and a grommet is attached to each of the white strip’s corners, thus permitting the flag to be flown horizontally or vertically as a banner. Since its creation, the Earth Flag has become closely associated with the environmental movement and “Earth Day”. See id. ¶¶ 8-10.

*352 McConnell’s Earth Flag was awarded a copyright in 1969. See PI. 56.1 ¶3a. A second, slightly modified, Earth Flag was copyrighted as a work of art on March 28, 1990. 5 See id. ¶ 3c. The Certificate of Copyright Registration states the following under the heading “Material Added To This Work”: “Replace earth image of original Earth Flag with a reproduction of another Apollo photograph by using a lithographic process.” Id.; 3/28/90 Certificate of Copyright Registration, Ex. D to Waxman Aff., at 2. On March 30, 1990, a supplemental registration was filed, which “amplified” the nature of the work as follows:

Coverage is of the flag or banner, regardless of size, representing the image of the Earth as taken from outer space by the Apollo mission, reproduced on a dark blue or black background, and the replication or reproduction thereof in any way, on any media or material.

PI. 56.1 ¶ 3d.

The photograph used to produce the Earth Flag was taken on NASA’s Apollo space mission and, as plaintiff admits, is in the public domain. See Alamo 56.1 ¶7; PI. 56.1 ¶ 7. In that photograph, the Earth appears against a dark blue backdrop of space. See PI. 56.1 ¶ 7a.

On May 23, 2000, Waxman purchased at one of Alamo’s retail stores a 3 foot by 5 foot flag bearing a public domain photograph of Earth taken from space on a light blue background (“Alamo Flag”). See Alamo 56.1 ¶ 12. The Alamo Flag, like the Earth Flag, includes a white strip of fabric with grommets at its corners. The photograph of Earth on the Alamo Flag is different than that displayed on EFL’s Earth Flag. For example, while the Arabian Peninsula is visible on the Earth Flag, it is not visible on the Alamo Flag. Both the photograph of Earth and the fabric used for the Alamo Flag are of lesser quality than EFL’s Earth Flag. 6 See Waxman Aff. ¶ 29. Accordingly, the Alamo Flag, listed as “Earth” in its catalogue, is less expensive than EFL’s Earth Flag. See Alamo Flag Company Catalogue, Ex. H to 1/18/01 Affidavit of H. Nicholas Goodman (“Goodman Aff.”), counsel to Alamo Flag Company, at 3, 4. 7

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153 F. Supp. 2d 349, 59 U.S.P.Q. 2d (BNA) 1223, 2001 U.S. Dist. LEXIS 6508, 2001 WL 527429, Counsel Stack Legal Research, https://law.counselstack.com/opinion/earth-flag-ltd-v-alamo-flag-co-nysd-2001.