Inhale, Inc. v. Starbuzz Tobacco, Inc.

739 F.3d 446, 109 U.S.P.Q. 2d (BNA) 1337, 2014 WL 69000, 2014 U.S. App. LEXIS 441
CourtCourt of Appeals for the Ninth Circuit
DecidedJanuary 9, 2014
Docket12-56331
StatusPublished
Cited by6 cases

This text of 739 F.3d 446 (Inhale, Inc. v. Starbuzz Tobacco, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inhale, Inc. v. Starbuzz Tobacco, Inc., 739 F.3d 446, 109 U.S.P.Q. 2d (BNA) 1337, 2014 WL 69000, 2014 U.S. App. LEXIS 441 (9th Cir. 2014).

Opinions

Opinion by Judge O’SCANNLAIN; Concurrence by Judge BEA.

OPINION

O’ SCANNLAIN, Circuit Judge:

We must decide whether the shape of a hookah water container1 is entitled to copyright protection.

I

Inhale, Inc. claims copyright protection in the shape of a hookah water container that it first published on August 29, 2008 and registered with the United States Copyright Office on April 21, 2011. At both the time of publication and the time of registration, the container included skull- and-crossbones images on the outside.

Less than a month after registration, Inhale sued Starbuzz Tobacco, Inc. and Wael Salim Elhalawani (collectively, “Star-buzz”) for copyright infringement. Inhale claimed that Starbuzz sold hookah water containers that were identical in shape to Inhale’s container. The allegedly infringing containers did not contain skull-and-crossbones images. After determining that the shape of the water container is not copyrightable, the district court granted summary judgment in favor of Star-buzz.

II

Because “ownership of a valid copyright” is an element of copyright infringement, Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 361, 111 S.Ct. 1282, 113 L.Ed.2d 358 (1991), summary judgment was appropriate if the shape of Inhale’s hookah water container is not copyrightable.

A

The parties agree that Inhale’s hookah water container is a “useful article.” As “the design of a useful article,” the shape of the container is copyrightable “only if, and only to the extent that, [it] incorporates ... sculptural features that can be identified separately from, and are capable of existing independently of, the utilitarian aspects of the” container. 17 U.S.C. § 101 (defining “[p]ictorial, graphic, and sculptural works”); id. § 102(a)(5) (granting copyright protection to “pictorial, graphic, and sculptural works”).

This statutory standard is satisfied by either physical or conceptual separability. See 1 Melville B. Nimmer & David Nimmer, Nimmer on Copyright § 2.08[B][3], at 2-99-2-100 (2011). Inhale does not argue that the container’s shape satisfies the requirements of physical separability. Thus, we consider only conceptual separability.

B

Relying on Poe v. Missing Persons, 745 F.2d 1238 (9th Cir.1984), Inhale argues [448]*448that conceptual separability is a question of fact. Inhale’s reliance on Poe is misplaced. Poe decided that whether an item is a useful article is a factual question. Id. at 1241-42. But usefulness is distinct from separability.

In Ets-Hokin v. Skyy Spirits, Inc., 225 F.3d 1068 (9th Cir.2000), we ruled that the shape of a vodka bottle was not separable from its utilitarian features. Rather than treat separability as a question for the jury, we conducted our own analysis. See id. at 1080. (“[T]he district court did not identify any artistic features of the bottle that are separable from its utilitarian ones. We also find none.”). In Fabrica Inc. v. El Dorado Corp., 697 F.2d 890 (9th Cir.1983), we affirmed a district court’s directed verdict in favor of a copyright defendant on the ground that the allegedly infringed work was not copyrightable. We assessed separability ourselves. See id. at 893 (“There is no element of the folders that can be separated out and exist independently of their utilitarian aspects.”).

Our precedent suggests that whether a useful article has conceptually separable features is a mixed question of law and fact. See Pullman-Standard v. Swint, 456 U.S. 273, 289 n. 19, 102 S.Ct. 1781, 72 L.Ed.2d 66 (1982) (describing mixed questions of law and fact as those “in which the historical facts are admitted or established, the rule of law is undisputed, and the issue is whether the facts satisfy the statutory standard”). Because both parties agree that the hookah water container is a useful article that holds water within its shape, all that is left is the application of the legal standard to those facts. Thus, whether the shape of the container is conceptually separable is a conclusion that we review de novo. See Mathews v. Chevron Corp., 362 F.3d 1172, 1180 (9th Cir.2004) (“Mixed questions of law and fact are reviewed de novo; however, the underlying factual findings are reviewed for clear error.”).

C

Relying in part on Ets-Hokin, the district court ruled that the container’s shape is not conceptually separable from its utilitarian features. In Ets-Hokin, we held that the shape of a vodka “bottle without a distinctive shape” was not conceptually separable. See 225 F.3d at 1080. Attempting to distinguish this case from our precedent, however, Inhale emphasizes the distinctive shape of its hookah water container. Therefore, we must determine whether distinctiveness of shape affects separability.

When interpreting the Copyright Act, we defer to the Copyright Office’s interpretations in the appropriate circumstances.2 See Richlin v. Metro-Goldwym-Mayer Pictures, Inc., 531 F.3d 962, 972-73 (9th Cir.2008); Batjac Prods. Inc. v. Good-Times Home Video Corp., 160 F.3d 1223, 1230-31 (9th Cir.1998) (deferring to the Register’s interpretation in an internal manual, Compendium of Copyright Office Practices). Because Chevron deference [449]*449does not apply to internal agency manuals or opinion letters, we defer to the Copyright Office’s views expressed in such materials “only to the extent that those interpretations have the ‘power to persuade.’ ” See Christensen v. Harris Cnty., 529 U.S. 576, 587, 120 S.Ct. 1655, 146 L.Ed.2d 621 (2000).

In an opinion letter and an internal manual, the Copyright Office has determined that whether an item’s shape is distinctive does not affect separability. See Letter from Nanette Petruzzelli, Assoc. Register, U.S. Copyright Office, to Jeffrey H. Brown, attorney for MSRF, Inc., Re: Fanciful Ornamental Bottle Designs 1-9, Control No. 61-309-9525(S), April 9, 2008. That determination was based on the principle that “analogizing the general shape of a useful article to works of modern sculpture” is insufficient for conceptual separability. Compendium of Copyright Office Practices II (Compendium II) § 505.03.

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739 F.3d 446, 109 U.S.P.Q. 2d (BNA) 1337, 2014 WL 69000, 2014 U.S. App. LEXIS 441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inhale-inc-v-starbuzz-tobacco-inc-ca9-2014.