Galiano v. Harrah's Operating Co.

416 F.3d 411, 2005 WL 1579734
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 8, 2005
Docket04-30521, 04-30806
StatusPublished
Cited by15 cases

This text of 416 F.3d 411 (Galiano v. Harrah's Operating Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Galiano v. Harrah's Operating Co., 416 F.3d 411, 2005 WL 1579734 (5th Cir. 2005).

Opinion

*413 JERRY E. SMITH, Circuit Judge:

Gianna, Inc. (“Gianna”), sued Harrah’s Entertainment, Inc. (“Harrah’s”), for copyright infringement. The district court granted Harrah’s’ motion for summary judgment on the infringement claim and denied Gianna’s motion for summary judgment on Harrah’s’ fraud on the Copyright Office counterclaim. After the court issued its judgment, in a separate motion Harrah’s requested, and the district court granted, attorney’s fees. Gianna timely appealed (1) the summary judgment against its copyright infringement claim; (2) the denial of its summary judgment motion involving Harrah’s fraud on the Copyright Office counterclaim; -and (3) the award to Harrah’s of attorney’s fees. We have consolidated all issues for appellate argument. We affirm the summary judgment in favor of Harrah’s on the infringement claim, dismiss the appeal regarding the denial of summary judgment to Gianna on the counterclaim, and vacate and remand the order awarding attorney’s fees.

I.

Jane Galiano is the founder and owner of Gianna, Inc., which designs clothing and counsels various industries regarding their professional attire. In August 1995, Gian-na and Harrah’s entered into an agreement (the “Design Consulting Agreement”) pursuant to which Gianna was to design uniforms for employees of various Harrah’s casinos. Subsequent exchanges between the parties resulted in the creation of several proposed sketches.

Because Gianna did not have the capacity to produce patterns of the sketch designs or make the finished uniforms, it entered into a manufacturing agreement (the “Uniform Manufacturing Agreement”) with Uniform Ideas, Inc., one of Harrah’s’ suppliers. That agreement stated that Uniform Ideas, Inc., would manufacture uniforms for Gianna during the period from September 1, 1995, to August 31, 1996. Gianna also contacted All — Bilt Uniform Fashion ' (“All — Bilt”), another Har-rah’s supplier, about manufacturing some of the uniform designs. Gianna and All-Bilt did not sign a contract, but All — Bilt produced some prototypes of Gianna-de-signed uniforms and submitted them for Harrah’s’ approval.

The design agreement between Gianna and Harrah’s expired according to its terms on December 1, 1995. The parties entered into negotiations to extend the contract, but failed to do so and entered into an agreement purporting to settle all disputes in May 1996. 1 Harrah’s continued to order Gianna-designed costumes from its suppliers.

In October 1999 Gianna sought and received copyright protection for a collection of sketches entitled “Uniform and Costume Collection submitted to Harrah’s Operating Company, Inc.” 2 The certificate identified the collection as “Artwork for Wearing Apparel” and classified the work as “2-dimensional artwork.” Galiano is identified as the author of the copyrighted work. The collection includes more than fifty colored and numbered illustrations, including sketches of uniform style shirts, blouses, vests, jackets, pants, shorts, ensembles, elaborate masquerade-type costumes, and unique head gear and a dozen pages of silkscreen artwork. 3

*414 Three months after obtaining the copyright protection, Gianna (with Gali-ano individually as co-plaintiff) sued in federal district court alleging that Har-rah’s had breached the May 1996 settlement agreement 4 and committed copyright infringement by continuing to use and order Gianna-designed uniforms. Harrah’s counterclaimed for fraud and misuse of the Copyright Office, asserting that Gianna had failed to disclose that the allegedly copyrighted work was not original and that it intended to cover items that are not properly copyrightable.

II.

To prove copyright infringement, a plaintiff must show ownership of a valid copyright and actionable copying. See Positive Black Talk, Inc. v. Cash Money Records, Inc., 394 F.3d 357, 367 (5th Cir.2004). Accordingly, the district court first determined the extent of Gianna’s copyright in her “registered” works. Because copyright law does not allow one to copyright “clothing designs” in which the artistic and utilitarian qualities are indivisible, the court reasoned, Gianna’s copyright could not extend to the designs for the wearing apparel depicted in the illustrations referenced in her Certificate of Copyright. The court therefore found that Gi-anna’s copyright is valid only to the extent that it protects the two-dimensional artwork, i.e., the illustrations and silkscreens that comprise the collection. We elaborate on this first holding somewhat extensively here.

The district court relied on much of the material we examine in part II.C.2.b, infra, in holding that Gianna’s copyright did not extend to the uniform designs. The court explained that copyright protection would be available only for a design’s artistic expression and not for the design of the clothing itself. Because the court could not equate the design of the uniforms’ buttons, pleats, and collars' — though admittedly very creative — to an artistic drawing on a shirt or a fabric design, it concluded that the design’s artistic and utilitarian elements were conceptually indivisible and therefore not copyrightable subject matter.

Gianna also relies heavily on the deposition and report of Bonnie Belleau, Ph.D., 5 *415 who opined that the Gianna uniform designs are highly artistic and that the utilitarian and aesthetic elements are easily separable. Belleau testified that the Gian-na uniforms have a “costume look” as distinguished from a “functional uniform appearance” and therefore should qualify for copyright protection as artistic costumes. 6 Gianna argues that Belleau’s report and testimony demonstrate that these designs are not intended merely to enhance the garment’s functionality, but to render the design a creative asset. 7

The district court noted that Belleau set out in some detail the artistic features of the uniforms, but the court found that these features were nothing more than “useful design features of wearing apparel.” Because none of these design features has intrinsic value as a work of art that can exist independently of the uniform wearing apparel, the district court concluded, they do not qualify for copyright protection.

Next, the court analyzed whether Har-rah’s committed “actionable copying” of Gianna’s collection, in light of the previously determined scope of copyright. The court differentiated between “direct infringement” and “contributory or vicarious infringement,” which are separate and distinct causes of action.

In her original and amended complaints, Gianna alleged that Harrah’s “reproduced the copyrighted work in Copies” and “prepared derivative works based on the copyrighted works throughout its gambling empire.” 8

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416 F.3d 411, 2005 WL 1579734, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galiano-v-harrahs-operating-co-ca5-2005.