Enterprise Management Limited Inc v. Construx Software Builders Inc

CourtDistrict Court, W.D. Washington
DecidedMarch 1, 2024
Docket2:19-cv-01458
StatusUnknown

This text of Enterprise Management Limited Inc v. Construx Software Builders Inc (Enterprise Management Limited Inc v. Construx Software Builders Inc) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Enterprise Management Limited Inc v. Construx Software Builders Inc, (W.D. Wash. 2024).

Opinion

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5 6 7 8 UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON 9 10 ENTERPRISE MANAGEMENT LIMITED, INC., MARY LIPPITT, CASE NO. 2:19-CV-1458-DWC 11 Plaintiffs, ORDER ON MOTIONS FOR 12 v. SUMMARY JUDGMENT 13 CONSTRUX SOFTWARE BUILDERS, INC, STEVE C. MCCONNELL, 14 Defendants. 15 Currently pending before the Court are Defendants Construx Software Builders, Inc. and 16 Steve C. McConnell’s Partial Motion for Summary Judgment and Plaintiffs Enterprise 17 Management Limited, Inc. and Mary Lippitt’s Motion for Summary Judgment. Dkts. 139, 140.1 18 Defendants assert there is no genuine issue of material fact regarding whether Defendants 19 had access to Plaintiffs’ Aligning Chart and, therefore, dismissal of Plaintiffs’ claims related to 20 the Aligning Chart is appropriate. Defendants also seek a summary judgment finding that 21 Plaintiffs should be limited (at most) to a single statutory damages award. Plaintiffs assert there 22 23 1 Pursuant to 28 U.S.C. § 636(c), Federal Rule of Civil Procedure 73, and Local Rule MJR 13, the parties 24 have consented to have this matter heard by the undersigned Magistrate Judge. Dkt. 11, 12. 1 is no genuine issue of material fact regarding Defendants’ copying of Plaintiffs’ Managing and 2 Aligning Charts and summary judgment in favor of Plaintiffs is appropriate on the issue of 3 Defendants’ copying of the Managing Chart and copyright infringement of the Aligning Chart. 4 After consideration of the relevant record, the evidence shows Defendants did not have

5 access to the Aligning Chart. Further, Defendants’ Chart is not strikingly similar to the Aligning 6 Chart. Therefore, the Court finds summary judgment in favor of Defendants is appropriate as to 7 Plaintiff’s copyright infringement claim regarding the Aligning Chart. There is, however, a 8 genuine issue of material fact regarding whether Plaintiffs have ownership of a valid copyright 9 registration for the Managing Chart. Additionally, there is a genuine issue of material fact 10 regarding whether the charts at issue in this case were copied from a different or prior common 11 source. Therefore, Plaintiff has not shown a summary judgment finding that Defendants’ Chart is 12 strikingly similar to the Managing Chart is appropriate. Finally, the Court finds only one 13 statutory award is permissible, in the event infringement can be proven. 14 For these reasons, Defendants’ Partial Motion for Summary Judgment (Dkt. 139) is

15 granted and Plaintiffs’ Motion for Summary Judgment (Dkt. 140) is denied. 16 I. Background 17 In the First Amended Complaint, Plaintiffs allege Defendants unlawfully copied and 18 distributed Lippitt’s works or derivations based on her works, which are owned by Enterprise, 19 without permission. Dkt. 29.2 The following two charts are Plaintiffs’ alleged copyrighted 20 works: 21 22

23 2 Plaintiffs also allege Defendants used Lippitt’s name to benefit their business without Lippitt’s permission in violation of Washington State’s Consumer Protection Act (“CPA”) and Personality Rights Act. Dkt. 29. These 24 claims were dismissed by the Court on May 29, 2020. Dkt. 37. 1 5 ee 3 4

6 Vision | skaits | Resources Action Plan Change [a Joe ofa > eration sia} Starts 9 10 4 Aligning for Success

Ged 0 Gedo ene 0 aes 0 GeO) tr 13 ene) 0 G9 nr) cee 14 => Comes 0 Cees 0 Geer) sae 15 Reeawenct, 16 Cea Coo Gens) 8

17 Come Do Genesio mmo) Cen) 8 reat IDO: = 19 20 Plaintiffs allege the first chart, Managing Complex Change (“Managing Chart”), is 21 protected under U.S. Copyright Registration No. TX 2-124-202 (“202”). See Dkt. 29, § 22. 22 Plaintiffs allege the second chart, Aligning for Success (“Aligning Chart”), is protected under 23 U.S. Copyright Registration Nos. TXu 956-226 (“226”) and TX 50827-350 (“350”). See id. at 24

1 || 923. Plaintiffs contend Defendants violated the Copyright Act through the use of the following, 2 || or similar, chart (“Defendants’ Chart”): 3 e)e)iaed daveysicq) me Ol al-]a)-xeM fele ee ee ee eect: eer eee 5 ne a a a a eo 6 A ena re rs □□ Sd 7 rs re ee: rs rs ere 8 ct rs ro eae 5 ens ae ee ea 9 ey ee Ps ce

10 a Se CL

11 || Dkt. 130 at 9; see Dkt. 29. 12 In the February 21, 2021 Order Granting in Part and Denying in Part Defendants’ Motion 13 || for Summary Judgment (“Order on Summary Judgment”), the Court found the Managing Chart 14 || was not protected under Registration No. 202. Dkt. 51. The Court also found neither Registration 15 || No. 226 nor 350 were derivatives of the Managing Chart or incorporated the Managing Chart 16 || into the registrations. /d. As the evidence failed to show Plaintiffs registered the Managing Chart, 17 || the Court granted summary judgment in favor of Defendants as to the copyright infringement 18 || claims arising from the Managing Chart. Jd. The Court, however, found Plaintiffs raised a 19 || genuine issue of material fact as to Plaintiffs’ Aligning Chart, and that Plaintiffs could “try 20 || [their] claims that [Defendants] infringed the 226 registration and the 350 registration.” Jd. at 13. 21 sum, after the Court ruled on a Motion to Dismiss and the Motion for Summary Judgment, the 22 || only remaining claim for trial was whether Defendants were liable for copyright infringement of 23 || Plaintiffs’ Aligning for Success chart. See Dkt. 37, 51. 24

1 This case proceeded to trial, which took place from March 22 – March 25, 2022. See 2 Dkts. 91, 93, 94, 96. The jury rendered a defense verdict and Plaintiffs appealed. Dkts. 98, 101, 3 110. On appeal, relevant to the pending motions before this Court,3 the Ninth Circuit determined 4 “Lippitt raised a genuine dispute whether she registered the Managing Complex Change chart

5 directly (in the 202 registration certificate) or whether she registered elements of that chart by 6 registering the Aligning for Success chart (in the 226 registration certificate or the 350 7 registration certificate)[.]” Dkt. 130 at 19-20. As a result, the Ninth Circuit reversed the grant of 8 summary judgment and vacated the jury verdict because Plaintiffs were prevented from 9 introducing relevant evidence. See id. at 20. 10 Defendants have now filed a Motion for Partial Summary Judgment (Dkt. 139) and 11 Plaintiffs have filed a Motion for Summary Judgment (Dkt. 140). In Defendants’ Motion, 12 Defendants seek judgments finding that they did not copy the Aligning Chart and that, in the 13 event Plaintiffs might be able to prove infringement, a single statutory damages award is, at 14 most, permissible. Dkt. 139. In their Motion, Plaintiffs request “the Court conclude on summary

15 judgment that the Auburn chart and the accused charts are strikingly similar to Dr. Lippitt’s charts.” 16 Dkt. 140 at 18. And, “[b]ecause there is further no dispute that Dr. Lippitt holds a valid copyright at 17 least to her Aligning chart, the Court should enter summary judgment in Dr. Lippitt’s favor on her 18 claim of copyright infringement.” Id. The Motions have been fully briefed and the Court heard 19 oral argument on February 7, 2024. See Dkts. 139-142, 144-152. 20 I. Standard of Review 21 Summary judgment is proper only if the pleadings, discovery, and disclosure materials on 22 file, and any affidavits, show that there is no genuine dispute as to any material fact and that the 23 3 The Ninth Circuit also found a jury instruction was incorrect. Dkt. 130. As the jury instruction is not 24 relevant to the pending motions, the Court will not discuss it at this time. 1 movant is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(c).

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Enterprise Management Limited Inc v. Construx Software Builders Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/enterprise-management-limited-inc-v-construx-software-builders-inc-wawd-2024.