Graham Technology Solutions, Inc. v. Thinking Pictures, Inc.

949 F. Supp. 1427, 1997 U.S. Dist. LEXIS 2258, 1997 WL 11556
CourtDistrict Court, N.D. California
DecidedJanuary 7, 1997
DocketC-96-20790-EAI
StatusPublished
Cited by15 cases

This text of 949 F. Supp. 1427 (Graham Technology Solutions, Inc. v. Thinking Pictures, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Graham Technology Solutions, Inc. v. Thinking Pictures, Inc., 949 F. Supp. 1427, 1997 U.S. Dist. LEXIS 2258, 1997 WL 11556 (N.D. Cal. 1997).

Opinion

ORDER TRANSFERRING ACTION TO SOUTHERN DISTRICT OF NEW YORK ON GROUNDS OF IMPROPER VENUE (RULE 12(b)(3), FED.R.CIV. P.)

INFANTE, United States Magistrate Judge.

I. Introduction & Procedural Background

Plaintiff Graham Technology Solutions, Inc. (“GTSI”), filed suit against defendant Thinking Pictures, Inc. (“TPI”) alleging copyright infringement, unfair competition and false advertising. After filing suit, GTSI filed an expedited motion seeking relief from the automatic stay of formal discovery required by Civil L.R. 16-3 on the grounds that such discovery was required to determine the extent of TPI’s alleged unlawful conduct pri- or to GTSI’s filing of a motion for preliminary injunction. TPI opposed the motion, and filed a motion to dismiss, asserting that the appropriate venue for this action is the Southern District of New York. TPI argued that a choice of law provision contained within a Professional Services‘Agreement executed by John Graham, President of GTSI, barred venue in this district. Finding that the issue of venue must be resolved prior to any other procedural or substantive issues in this ease, the court deferred GTSI’s motion for expedited discovery and for entry of a protective order and seFaTbriefing schedule for the motion to dismiss. The parties are presently before the court on defendant TPI’s Motion to Dismiss or 'transfer tor improper Venue. " *

II. Factual Background

A. TPI: The Development of rock.com and the Professional Services Agreement

TPI is a privately owned corporation engaged in the development of technology which broadcasts sound and video images through interactive media, including the Internet. See Declaration of Stephan Fitch (“Fitch Deck”), ¶4. In 1994, TPI began developing a new product called rock.com. Id., ¶4. Rock.com permits live audio and video transmission of rock and roll concerts through the Internet. By utifizmglTpfoCess known as video streaming and audio streaming, digital video images and sounds are “conveyed to a web page that can be accessed without additional software.” Id. The concept for rock.com is described by Stephan Fitch, Chief Technology Officer and founder of TPI, as follows:

As TPI envisioned the first phases of rock. com, three remote cameras would be locat *1429 ed at a rock club or other concert site. These cameras would be controlled by a camera operator from any place in the world via a web page on a personal computer. The camera operator would receive, via video streaming, images and sound from the cameras and could focus and control the cameras in accordance with instructions from a remote director. Obviously, it was necessary to see the images from the cameras in order to control them. Therefore, video streaming was an integral and necessary part of the remote camera control programming. In addition to the camera operator, a director would receive the images from the cameras via a separate web page. The director, too would need to receive real time images in order to give instructions to the camera operator and to select the desired image for the ultimate viewer. Once the director selected the appropriate camera shots ... the resulting image would be streamed, through a web browser, to the web page of the viewer sitting at a personal computer anywhere in the world. Both audio and video streaming were integral parts of rock.com from the outset. Neither the camera operator interface (web page) nor the remote camera control could be developed without using video and audio streaming.

Fitch Deck, ¶ 6.

In order to successfully complete the rock, com project, TPI required the assistance of a programmer. Id,., ¶ 6-7. In 1995, TPI contacted John Graham to provide the programming assistance required for the rock.com project. On or about May 4, 1995, Mr. Graham signed a non-disclosure agreement and began to review conceptual materials and schematics for rock.com. Fitch Decl.,- ¶ 8. In July 1995, Mr. Graham entered into a Professional Services Agreement (“PSA”) on behalf of “John Graham and Graham Technology Solutions, a corporation organized under the laws of the State of California.” 1 Fitch Deck, Ex. A, p. 1. The PSA “related to services to be provided to TPI[ ] in connection with the development of the prototype of, or other preliminary services in connection with an interactive multimedia product tentatively entitled,‘roek.com.’ ” Id.

The terms of the PSA provided that TPI would own all right, title and interest to the completed work product described in Schedules A and B of the PSA as well as to all additions to, deletions from, alterations of or revisions in said work product. 2 Id., p. 5, ¶ 4.1. TPI would also own all right, title and interest to all other materials provided to Mr. Graham by or at the expense of TPI, and all other materials developed or furnished by Mr. Graham in connection with the services he provided under the PSA. Id. The PSA further provided that: (1) TPI would have exclusive rights to Mr. Graham’s completed work product; (2) Mr. Graham’s work and services would be “work made for hire” for TPI; and (3) in the event that any work product of Mr. Graham’s was determined not to be a work for hire, said work would be irrevocably assigned, transferred, released and conveyed to TPI. Id., p. 5, ¶¶4.2-4.4. In addition the PSA contained a forum selection clause which stated:

10.11 The validity of this Agreement, the construction of its terms and the interpretation of the rights and duties of the parties hereto shall be governed by and construed in accordance with the substantive laws of the state of New York, without reference to laws relating to conflicts of laws. The parties agree to submit to the exclusive jurisdiction over all disputes hereunder to the federal and state courts in the State of New York located in New York County.

See Fitch Deck, Ex. A, p. 10, ¶ 10.11 (emphasis added).

Mr. Graham began providing programming services to TPI under the terms of the *1430 PSA. In doing so, he reviewed proposed hardware and software specifications for rock.com. Fitch Deel., ¶ 10. Mr. Graham also attended at least two meetings with representatives of Sun Microsystems and Sony Worldwide Network (“Sony”) to discuss and promote the rock.com project. Id., ¶ 11. During the meetings, Mr. Graham was represented as part of the “TPI roek.com team” responsible for programming work. Id. It is not clear from the information provided by the parties when Mr. Graham’s employment relationship with TPI ended. However, Mr. Graham’s work on the roek.com project continued through at least August 15, 1995, as evidenced by an e-mail sent from Mr. Graham to Mr. Fitch which comments on the rock.com specifications, and appears to represent a continuing relationship between Mr. Graham and TPI:

Everything looks good, the only thing I added is the spec on the Hardware 128 Meg RAM.... Here’s the Agenda we took to SUN.

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Bluebook (online)
949 F. Supp. 1427, 1997 U.S. Dist. LEXIS 2258, 1997 WL 11556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graham-technology-solutions-inc-v-thinking-pictures-inc-cand-1997.