Gerig v. Krause Publications, Inc.

58 F. Supp. 2d 1261, 51 U.S.P.Q. 2d (BNA) 1936, 1999 U.S. Dist. LEXIS 11934, 1999 WL 592585
District Court, D. Kansas·Decided July 15, 1999·No. 98-1043-JTM·Published·Cited by 7 cases

Opinion

MEMORANDUM ORDER

MARTEN, District Judge.

Currently pending before the court in this action for breach of contract and copyright infringement action is the motion to dismiss of defendant Krause Publications. As an alternative to dismissal, Krause seeks to strike the plaintiff Steven Gerig’s claims for statutory damages and attorney’s fees. In its motion, Krause claims Gerig’s amended complaint should be dismissed for two reasons: (1) an earlier filed action pending in Wisconsin captioned Krause Publications, Inc., v. Steve W. Gerig, Case No. 98-C-1218 (E/D.Wis.) takes precedence over this action; and (2) Ger-ig’s claim does not arise under the Federal Copyright Act, 17 U.S.C. § 101 et seq. and diversity jurisdiction is lacking because the amount in controversy does not exceed $75,000. Even if the court were to have subject matter jurisdiction over Gerig’s claims, Krause argues, Gerig’s request for statutory damages and attorney’s fees should be dismissed because statutory damages and attorney’s fees are not available for alleged infringing acts predating registration of the claimed works.

I. Facts

During the period of 1991-1994, Krause hired Gerig on approximately 15 occasions to take photographs of home decorating styles (the “Images”). Krause paid Gerig an “assignment” fee for all of the photographs taken on each occasion. Krause subsequently included some of the photographs in various issues of Collector’s Mart Magazine. On October 8, 1997, Krause published a book titled, Decorating With Collectibles (the “Book”), which Ger-ig alleges included approximately 70 photographs taken by him during the photography sessions. Gerig’s amended complaint *1263 arises out of Krause’s alleged use of the Images in the Book.

II. Procedural History

On February 9, 1998, Gerig filed a complaint in this court against Krause alleging copyright infringement and breach of contract. On April 8, 1998, Krause filed a motion to dismiss, noting that Gerig had not pleaded or obtained registration of the works at issue with the Copyright Office, a jurisdictional prerequisite to the filing of a copyright infringement action in federal court. It further argued diversity jurisdiction did not exist on Gerig’s contract claim because he did not meet the amount in controversy requirement. It is undisputed that none of the works Gerig alleged had been infringed had been registered with the Copyright Office as of February 9, 1998.

In November of 1998, at Gerig’s request, the parties stipulated to the dismissal of this action. According to Krause’s counsel, there were no preconditions or other “strings” tied to Gerig’s request. On November 18, 1998, Krause’s counsel signed the stipulation prepared by Gerig’s counsel and returned it to her for filing with the court. On December 16, 1998, assuming this case had been dismissed pursuant to the stipulation, Krause filed a declaratory judgment action in the U.S. District Court for the Eastern District of Wisconsin, seeking a declaratory judgment that, under the Copyright Act, it is not liable to Gerig as a result of the use of Gerig’s Images in the Book. That action is still pending, and Krause claims the Wisconsin court has subject matter jurisdiction under the Declaratory Judgment Act, 28 U.S.C. §§ 2201 et seq.

Gerig’s counsel never filed the stipulation of dismissal with this court, which Krause claims is a breach of the parties’ agreement. On January 12, 1999, this court granted Krause’s motion to dismiss this action for lack of subject matter jurisdiction, noting that Gerig could later file a “new action” when a jurisdictional basis had been established. In doing so, the court did not note the breach of contract claim. On March 4, 1999, after he obtained the requisite registrations, Gerig filed an amended complaint in this court. On March 17, 1999, the court set aside its January 12, 1999 order and reopened the case.

III. Subject Matter Jurisdiction

A. The Contract Claim — Diversity Jurisdiction

At the time Gerig filed this case, his copyright claim did not provide the basis for subject matter jurisdiction because he had not yet received the proper registrations. See, e.g., M.G.B. Homes v. Ameron Homes, 903 F.2d 1486, 1488-89 (11th Cir.1990) (Trial court properly dismissed the entire claim without prejudice to file a new complaint once the copyright registration was obtained.); Boyle v. Stephens, Inc., No. 97Civ.1351(SAS), 1997 WL 529006, at *3 (S.D.N.Y. Aug. 26, 1997) (finding no viable copyright infringement claim for plaintiff whose registration was pending, but not yet completed); Dielsi v. Falk, 916 F.Supp. 985, 994 (C.D.Cal.1996) (dismissing plaintiffs infringement claims without prejudice — “Plaintiffs failure to plead that he has applied for a copyright registration deprives this court of subject matter jurisdiction over his copyright claim.”); International Trade Management v. United States, 553 F.Supp. 402, 403 (Cl.Ct.1982) (dismissing the action until the Copyright Office permitted or denied plaintiffs copyright). Therefore, Gerig’s contract claim must provide the basis for subject matter jurisdiction. When a contract claim provides the basis for subject matter jurisdiction in the federal courts, jurisdiction is based on diversity of citizenship.

The diversity statute, 28 U.S.C. § 1332(a)(1), provides: “The district courts shall have original jurisdiction of all civil actions where the matter in controversy exceeds the sum or value of $75,000, exclusive of interest and costs, and is between ... citizens of different states.” This case is between citizens of different states— *1264 Gerig is a Kansas resident, and Krause is a business organized under the laws of Wisconsin and has its principal place of business in Iola, Wisconsin. Therefore, the sole question that remains is whether the amount in controversy exceeds $75,000.

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Gerig v. Krause Publications, Inc., 58 F. Supp. 2d 1261, 51 U.S.P.Q. 2d (BNA) 1936, 1999 U.S. Dist. LEXIS 11934, 1999 WL 592585 (D. Kan. 1999).

58 F. Supp. 2d 1261 (Gerig v. Krause Publications, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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