Health Insurance Ass'n of America v. Novelli

211 F. Supp. 2d 23, 2002 WL 1410176
CourtDistrict Court, District of Columbia
DecidedMay 17, 2002
DocketCivil Action 02-0831 (RBW)
StatusPublished
Cited by11 cases

This text of 211 F. Supp. 2d 23 (Health Insurance Ass'n of America v. Novelli) 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
Health Insurance Ass'n of America v. Novelli, 211 F. Supp. 2d 23, 2002 WL 1410176 (D.D.C. 2002).

Opinion

AMENDED MEMORANDUM OPINION

WALTON, District Judge.

This matter is before the Court on plaintiffs application for a temporary restraining order 1 and motion for a preliminary injunction, defendants’ Goddard Claussen Porter Novelli’s (“Goddard”) and Cures-Now Action’s (“CuresNow”) 2 oppositions to plaintiffs motions, and plaintiffs reply to defendants’ oppositions. Upon consideration of the arguments advanced by the parties during the hearing on plaintiffs motions that was held on May 13, 2002, and the positions raised in the parties pleadings, the Court concludes that plaintiffs motions must be denied.

I. Summary of Facts

The plaintiff, Health Insurance Association of America (“HIAA”), is an organization comprised of traditional risk-bearing organizations, such as health insurers, managed care organizations, and reinsur-ers that “attempt! ] to shape and influence state and federal public policy through advocacy.” (ComplJ 4.) 3 In 1993, as part of its campaign opposing then-President Clinton’s proposed health care initiatives, HIAA retained defendant Goddard, a company that provides public relations and public affairs services, to aid it in creating a national advertising campaign. (Id. ¶¶ 6-7.) The campaign resulted, in part, in the creation of the “now famous Harry and Louise advertisements.” (Id. ¶¶ 9-10.) 4

There are several features of the “Harry and Louise” advertisements which, HIAA contends, make them distinctive: the actors used in the advertisements are the same; 5 there is a piano playing soft music *26 in the background; the characters have a colloquy in “worried tones” regarding a serious political issue; and there is contact information displayed at the end of the advertisement informing viewers how they can express their -views. (Id. ¶ 9.) 6 In addition the characters normally act according to specified roles, with Louise typically being “educative” and Harry being “reactive.” (Id.)

Throughout 1993-1994, there were 13 “Harry and Louise” advertisements created. (Goddard Decl. ¶ 4.) The first six were created pursuant to an oral agreement; 7 the remaining advertisements were completed pursuant to a written agreement executed between HIAA and Goddard in 1994. Section VI of the 1994 agreement (the “Termination” section) provides that:

“[a]ll advertising copy and tapes and all other work product, including mailing lists, developed as a result of this campaign, are and shall be the property of the Client; however, this shall not prevent [Goddard] from using, as a sample of its work, any materials produced for use in the campaign.”

(Goddard Decl. Ex. A.) HIAA and Goddard executed another'agreement in 1998 wherein they included more specific language regarding copyright ownership, however, this agreement did not specifically refer to the Harry and Louise advertisements at issue, but dealt with the subject of “public relations counseling and communications services.” (Compl.Ex.A). 8 In 2000, HIAA again retained Goddard to create advertisements' in connection with an effort named “InsureUSA,” HIAA’s initiative to increase and expand health insurance coverage among uninsured Americans. (Id. ¶ 13.) Again, actors Harry Johnson and Louise Claire Clark were used in these commercials.

On April 23 and 24, 2002, Benjamin Goddard, Goddard’s executive creative director, informed individuals at HIAA that Goddard had created political advocacy advertisements for defendant CuresNow, a non-profit organization that is a member of the Coalition to Advance Medical Research and an advocate that supports therapeutic cloning. 9 (Id. ¶ 6.) The advertisements, which were created as a part of Cures-Now’s campaign against proposed Congressional legislation that will criminalize therapeutic cloning, 10 are very similar to *27 the advertisements Goddard had created for HIAA, and in fact use the same actors, the same business attire, the same background music, the same setting, the same “worried” tones, the same actor roles and the same display of contact information at the end of the advertisement, although the CuresNow advertisements instruct viewers to contact CuresNow, not HIAA. (Id. ¶ 23.) News releases issued by CuresNow and Goddard specifically refer to the advertisements as the Harry and Louise advertisements. (Id.) 11

On April 30 and May 1, 2002, HIAA filed copyright registration forms, submitted the deposits, and paid the required fees to register the copyrights for its Harry and Louise advertisements and their formats. (Id. ¶ 30.) HIAA specifically checked the box on its registration forms designated for “works made for hire.” 12 (See Compl. Ex. E.) 13

In addition to its copyright position, HIAA claims that it owns the “trade dress” in the format of the Harry and Louise advertisements, which is protectible under the Lanham Act, 15 U.S.C. § 1125(a) (1994). HIAA argues that it is entitled to a preliminary injunction because it has established a substantial likelihood of success on the merits of its trademark infringement claim 14 and is being irreparably harmed by continued dissemination of the CuresNow advertisements because they confuse the public as to whether HIAA sponsors therapeutic cloning 15 and permits CuresNow to unjustly benefit from HIAA’s goodwill.

Defendant Goddard argues that HIAA does not own the copyrights in the Harry and Louise advertisements because HIAA' did not, despite its argument to the contrary, co-author the advertisements, the parties never contracted to transfer Goddard’s copyright in the advertisements, and the advertisements were not intended to be works made for hire. Therefore, Goddard submits that it is the copyright owner of the Harry and Louise advertisements. In addition, Goddard contends *28 that HIAA does not own any trade dress rights to the format of the advertisements. Finally, both defendants argue that the balance of equities tilt in.

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Cite This Page — Counsel Stack

Bluebook (online)
211 F. Supp. 2d 23, 2002 WL 1410176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/health-insurance-assn-of-america-v-novelli-dcd-2002.