Gordon v. Pearson Education, Inc.

85 F. Supp. 3d 813, 113 U.S.P.Q. 2d (BNA) 1486, 2015 U.S. Dist. LEXIS 2343, 2015 WL 132415
CourtDistrict Court, E.D. Pennsylvania
DecidedJanuary 9, 2015
DocketCivil Action No. 14-2329
StatusPublished
Cited by6 cases

This text of 85 F. Supp. 3d 813 (Gordon v. Pearson Education, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gordon v. Pearson Education, Inc., 85 F. Supp. 3d 813, 113 U.S.P.Q. 2d (BNA) 1486, 2015 U.S. Dist. LEXIS 2343, 2015 WL 132415 (E.D. Pa. 2015).

Opinion

MEMORANDUM

RONALD L. BUCKWALTER, Senior District Judge.

Currently pending before the Court is a Motion to Dismiss Count II of the Complaint by Defendant Pearson Education, Inc. For the following reasons, the Motion is granted in part and denied in part.

I. FACTUAL BACKGROUND

According to the facts set forth in the Complaint, Plaintiff Joel Gordon is a professional photographer who makes his living by creating and licensing photographs. (Compl. ¶ 1.) Defendant Pearson Education, Inc. (“Pearson”) is a sophisticated and highly-profitable global publishing company which creates and sells educational textbooks. {Id. ¶ 2.)

Gordon is the author and owner of certain photographs and Susan Lerner is the author and owner of other photographs (collectively “Photographs”). Prior to this action, Lerner transferred to Gordon the exclusive right to grant licenses for reproduction, distribution, and display of her photographs. {Id. ¶ 6.) Each of the Photographs has been registered with the United States Copyright Office, except for two which have pending registrations and for which Gordon delivered completed applications, deposits, and fees to the United States Copyright Office before the filing of the Complaint. {Id. ¶ 7.)

Between 1989 and 2012, in response to permission requests from Pearson, Gordon sold Pearson limited licenses to use copies of the Photographs in particular educational publications identified by Pearson’s requests and Gordon’s licenses. The licenses that Gordon granted to Pearson were expressly limited by the number of copies, distribution area, language, duration, and/or media. {Id. ¶ 8.) Pearson represented to Gordon that it intended to use the Photographs within the negotiated license terms. {Id. ¶ 9.) When determining the license fee, Gordon relied on Pearson’s representations. {Id. ¶ 10.)

According to Gordon, however, Pearson knew that its actual uses would exceed its represented uses and that Pearson intended to obtain access to the Photographs at a lower cost than it would have paid had it been honest in its dealings {Id. ¶¶ 11-12.) Indeed, shortly after obtaining the licenses from Gordon, Pearson exceeded the licenses and infringed Gordon’s copyrights in numerous ways, including: (a) printing more copies of the Photographs than Gordon authorized; (b) distributing publications containing the Photographs outside the authorized distribution area; (c) publishing the Photographs in electronic, ancillary, or derivative publications without permission; (d) publishing the Photographs in international editions and foreign publications without permission; (e) publishing the - Photographs beyond the specified time limits; and/or (f) publishing and distributing Gordon’s works in subsequent editions, foreign language translations, and various other publications without obtaining authorization. {Id. ¶ 13.)

Gordon alleges that Pearson’s practice of requesting and paying for a license for limited uses, and then exceeding those authorized uses, extends beyond the publications referenced above. {Id. ¶ 16.) Indeed, according to the Complaint, Pearson’s business model is built on a foundation of pervasive and willful copyright infringement that deprived Gordon, and hundreds of other photographers and visual art licensors, of their rightful compensation, and unjustly enriched Pearson with outlandish profits in the process. {Id.) Currently, there are several parallel cases of copyright infringement pending [816]*816against Pearson. (Id. ¶¶ 17-18.) On May 3, 2010, and January 13, 2011, Julie Orr, Pearson’s Curriculum Group’s Image Manager, Rights and Permissions, testified that Pearson had published photographs in its textbooks in some instances without obtaining an permission and had printed in excess of license limits in situations where licenses were obtained. (Id. ¶ 19.) On June 16, 2010, Maureen Griffin, Pearson’s Curriculum Group’s Photo Commissions Editor, testified that Pearson had published photographs in its textbooks “before the FTP [file to printer] date” and that “the number of textbooks printed exceeded the licenses we obtained.” (Id. ¶ 20.) Numerous other photographers and stock photographers and stock photography agencies have brought actions against Pearson alleging copyright infringement claims nearly identical to those asserted by Gordon in this action. (Id. ¶ 21.)

According to the Complaint, Pearson also engages in indirect copyright infringement. Pearson facilities the international distribution of its publications, in part, through its international rights management group (“IRMG”) located in Indiana and New Jersey. The IRMG website indicates that it is the IRMG’s “mission to maximize the number of translations and local versions published that are . based upon products of Pearson Education,” and that IRMG “arranges for approximately 4,000 third-party licenses annually, which includes translations in approximately 50 languages read around the world.” The IRMG website also indicates that its team “frequently travels to countries to visit with local publishing partners who are interested in obtaining foreign rights to our books.” (Id. ¶ 25.) According to the Complaint, Pearson reproduced and distributed, the Photographs without Plaintiffs permission to other entities, subsidiary companies, divisions, affiliates, and/or third parties (“Third Parties”). (Id. ¶26.) The alleged unauthorized reproduction and distribution to the Third Parties took place in the United States. (Id.) The Third Parties then translated the- publications at issue into additional languages or published them in local adaptations or reprints and included the Photographs in these publications without Plaintiffs permission. (Id. ¶ 27.) Gordon alleges that Pearson knew when it reproduced and distributed the Photographs that the Third Parties would reproduce and distribute the Photographs without Plaintiffs authorization.

Plaintiff Gordon initiated the current action on April 22, 2014, setting forth two causes of action. Count I asserts that Pearson’s acts constitute infringements of Gordon’s copyrights in the Photographs in violation of 17 U.S.C. §§ 501 et seq. (Compl. ¶¶ 35-37.) Count II contends that Pearson’s acts also constitute contributory and/or vicarious infringement of Gordon’s copyrights in the Photographs in violation of 17 U.S.C. §§ 501 et seq. (Compl. ¶¶ 38-40.)

On October 20, 2014, Defendant filed the current Motion to Dismiss Count II of the Complaint. Plaintiff filed a Response on November 3, 2014, and Defendant submitted a Reply Brief on November 13, 2014, making the Motion ripe for judicial review.

II. STANDARD OF REVIEW

Under Rule 12(b)(6), a defendant bears the burden of demonstrating that the plaintiff has not stated a claim upon which relief can be granted. Fed.R.Civ.P. 12(b)(6); see also Hedges v. United States, 404 F.3d 744, 750 (3d Cir.2005). In Bell Atlantic Corporation v. Twombly, 550 U.S. 544

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85 F. Supp. 3d 813, 113 U.S.P.Q. 2d (BNA) 1486, 2015 U.S. Dist. LEXIS 2343, 2015 WL 132415, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gordon-v-pearson-education-inc-paed-2015.