Freiman v. Lazur

925 F. Supp. 14, 1996 U.S. Dist. LEXIS 6412, 1996 WL 243132
CourtDistrict Court, District of Columbia
DecidedApril 29, 1996
DocketCivil Action 95-0786-LFO
StatusPublished
Cited by22 cases

This text of 925 F. Supp. 14 (Freiman v. Lazur) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freiman v. Lazur, 925 F. Supp. 14, 1996 U.S. Dist. LEXIS 6412, 1996 WL 243132 (D.D.C. 1996).

Opinion

MEMORANDUM

OBERDORFER, District Judge.

I.

This case concerns allegations that government contractors with and government employees of the U.S. Department of Energy, through its Office of Construction and Capital Projects, infringed plaintiffs’ copyrights, conspired to infringe their copyrights, and other related pendent claims. Plaintiffs Frank Freiman and Freiman Parametric Systems, Inc. created and own the copyrights to twenty-one computer programs known by the name of “FAST”, which plaintiffs developed under contract with the Department. Plaintiffs also created a combination of the FAST computer programs known by the name of “FAMAS” pursuant to a subcontract with the Department, the prime contractor being Kaiser Engineers. Defendant Edward G. Lazur is the Acting Director of the Office of Construction and Capital Projects and represented the Department with respect to both the FAST and FAMAS contracts. Defendants Richard F. Seel, individually, and Richard F. Seel, Inc. t/a Prime Time, along with defendants Kay Hudson Wohl, individually, and Kay Hudson Wohl d/b/a Wohl Associates, parties to a subcontract with Dames & Moore, one of the Department’s prime contractors, developed for the Department and now purport to own a computer program named “INSITE”. Defendants Seel and Prime Time are former agents of the plaintiffs; defendant Wohl formerly worked at the Department with defendant Lazur in representing the Department with respect to the FAST and FAMAS contracts. Plaintiffs allege that INSITE infringes their copyrights in FAST and FAMAS.

The United States has moved to be substituted for defendant Lazur and has filed a motion to dismiss for lack of subject matter jurisdiction. Defendants Seel, Prime Time, *17 Wohl, and Wohl Associates have moved to dismiss the complaint for lack of subject matter jurisdiction, lack of personal jurisdiction, and improper venue.

II.

The Complaint alleges the following facts: In 1980 plaintiffs Frank Freiman and Frei-man Parametric Systems entered into a contract with the Department to design computer programs that could predict and estimate the costs of Department projects such as nuclear systems. Plaintiffs named these programs “FAST”. In 1983 the Department and Freiman agreed to a clause in the contract that recognized his proprietary interests in the FAST computer programs. Compl. ¶ 28. Throughout the 1980s, Department employees (and now defendants) Lazur and Wohl represented the Department in contracts that concerned the creation and production of the FAST computer programs. Id. at ¶ 27.

During this time that plaintiffs were parties to the contract with the Department to create and produce FAST, plaintiffs also sold the FAST computer program commercially. From 1981 to 1987, plaintiffs licensed defendants Seel and Prime Time as agents for sale of the FAST computer programs. Id. at ¶31. In 1987 plaintiffs gave an exclusive license for the FAST programs to Seel and Prime Time for a term of five years, automatically renewable for two more years. A clause in the licensing agreement acknowledged plaintiffs’ proprietary interest in the FAST programs. Id. at ¶ 34.

In 1991, the Department, through its prime contractor Kaiser Engineers, awarded Freiman three contracts to combine all of the FAST computer programs into a program named “FAMAS”. Id. at ¶29. Freiman subcontracted work on the FAMAS contracts to Seel and Prime Time; and Freiman “directed Defendants Seel and Prime Time as to the tasks that were to be performed as their subcontractors.” Id. at ¶40. Plaintiffs allege that “[ujnbeknownst to the Plaintiffs, Defendants Seel and Prime Time, at the same time they were subcontractors to Frei-man ... bid and received their own contract for the FAMAS project.” Id. at ¶ 42; Ex. H. Therefore, plaintiffs allege, defendants Seel and Prime Time were simultaneously parties to a contract with Kaiser Engineers and to a subcontract on plaintiffs’ contract with Kaiser Engineers, both on the same Department project to develop FAMAS. Id. at ¶ 49.

In 1993 plaintiffs and defendants Seel and Prime Time completed their work on the three FAMAS contracts. In September 1993, plaintiffs requested that as their subcontractors, defendants Seel and Prime Time provide them with the “complete set of source codes of the FAMAS project.” Id. Defendants refused to release them. Id. Consequently, Freiman “was unable to bid on Phase II of the FAMAS project” because he did not have a complete set of the source codes. Id. at ¶ 68.

On June 2, 1994, Seel and Prime Time, while still under contract with Freiman, registered a copyright for a computer program known as “INSITE” with the U.S. Copyright Office. Id. at ¶ 70, Ex. V (INSITE copyright application). Plaintiffs allege that the IN-SITE program is a “false and fraudulent registration for a copyright” because it is “actually computer language developed for use in the FAMAS program designed to use the FAST computer programs.” Id. at ¶ 70. Plaintiffs “discontinued” their licensing agreement with defendants Seel and Prime Time on or about June 30,1994. Id. at ¶ 147.

On August 30, 1994, defendants Seel and Prime Time, joined by defendants Kay Hudson Wohl and her company Wohl Associates, allegedly solicited a contract from an entity identified in the Complaint only as “SAIC” (which was also under contract with the Department) for the development of the IN-SITE computer program for the Department. Id. at ¶¶73, 77. Defendant Wohl retired from the Department earlier that month. On October 21, 1994, defendant La-zur sent a memo to the Department’s Project Management Division and the Program Budget Branch in Richland, Washington for the transfer of $180,000, originally intended for payment to plaintiffs for FAMAS, to defendant Prime Time for the generation of a proposal for INSITE. Id. at ¶78, Ex. X (copy of the memorandum). “[I]n or around October of 1994,” the Department awarded a *18 contract for INSITE to Seel, Prime Time, Wohl, and Wohl Associates, not through SAIC, but through another contractor, Dames & Moore. Id. at ¶ 79.

Plaintiffs also allege that in or around September 1994, defendants Seel and Prime Time began selling for their own account a computer program called “MAP”, which is substantially similar to plaintiffs’ FAST programs. Id. at ¶¶ 152, 89. Plaintiffs allege that defendant Wohl is a participant in the sale of the MAP program; she had the MAP manual translated from French into English. Id. at ¶ 90.

Accordingly, plaintiffs claim that the foregoing transactions by defendants infringed their copyrights in violation of 17 U.S.C. § 101 et seq.; constituted unfair competition, false designation of origin, false labeling, and false advertising in violation of 15 U.S.C. § 1125; and contributed to infringement of copyright. Plaintiffs also allege pendant state-law claims.

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Bluebook (online)
925 F. Supp. 14, 1996 U.S. Dist. LEXIS 6412, 1996 WL 243132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freiman-v-lazur-dcd-1996.