Karlson v. Red Door Homes, LLC

18 F. Supp. 3d 1301, 2014 WL 1765186
CourtDistrict Court, N.D. Alabama
DecidedApril 30, 2014
DocketCase No. CV-11-J-1511-NE
StatusPublished

This text of 18 F. Supp. 3d 1301 (Karlson v. Red Door Homes, LLC) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Karlson v. Red Door Homes, LLC, 18 F. Supp. 3d 1301, 2014 WL 1765186 (N.D. Ala. 2014).

Opinion

MEMORANDUM OPINION

INGE PRYTZ JOHNSON, Senior District Judge.

I. Procedural History

On March 14, 2014, the Eleventh Circuit Court of Appeals vacated this court’s Memorandum- Opinion and Order of May 16, 2012, and remanded the case “for further proceedings consistent with” the Court’s opinion (doc. 64). Because the Eleventh Circuit concluded this court granted summary judgment on grounds not briefed by the parties and without notice to the parties, the court provided the parties an opportunity to brief solely the issue of implied license, as instructed by the Eleventh Circuit. See docs. 69, 70, 75, 78, and 85. The specific question is whether defendants’ use of plaintiffs renderings of defendants’ new home plans violated plaintiffs claimed copyright in said renderings.

Defendants sought summary judgment on plaintiffs claim of copyright infringement and the court, finding that a nonexclusive implied license was created for defendants’ use of plaintiffs renderings, granted summary judgment in defendants’ favor on that issue, among others.1 See Memorandum Opinion and Order of May [1303]*130316, 2012, 2012 WL 1747845 (docs. 55 and 56). However, the Eleventh Circuit, being of the opinion that the parties were not aware that the court might rule on the defendants’ motion for summary judgment on the plaintiffs claim of copyright infringement by examining whether. some type of license was granted by the plaintiff to the defendants, vacated the court’s opinion. Now having the benefit of the parties’ respective briefs on the issue of implied license, this court’s opinion as to the merits of the plaintiffs claims is unsurprisingly, unchanged. Because the court, with the benefit of evidence submitted by the parties, previously set forth detailed factual findings, the court adopts the facts previously found and restates only those undisputed facts relevant to the issue before it.

II. Factual Background

Plaintiff creates renderings of new home plans for marketing purposes.2 Plaintiff depo. at 20, 24 (submitted as doc. 37, exhibit B). Defendants Red Door Homes, LLC (“Red Door”), and SMA Operations Management, LLC (“SMA”), design new homes. Patrick Miller depo. at 51 (submitted as doc. 37, exhibit A). SMA sells home plans and drawings to builders “on demand,” including plaintiffs renderings, if requested by builders, whereas Red Door provides software estimates and building packages, including access to the renderings, to its licensees, who sell the plans to builders. Declaration of Miller, ¶¶ 3-6 (submitted as doc. 37-2).

Plaintiff and non-party Patrick Miller had previously worked together, with Miller designing new homes and calling on plaintiff for renderings should the same be sought by a builder. Miller first began designing homes for SMA in 2000 or 2001. Miller affidavit (doc. 37-2), ¶ 6. When Miller was hired as a full-time employee of SMA to design homes in 2008, plaintiff was hired by the defendants as an independent contractor, on a “per design” basis, to create renderings of new home designs. He was paid a set dollar amount for each of the renderings he created. Miller depo. (doc. 37-1) at 57, 87.

The plaintiff asserts he has claimed a copyright interest in his renderings since he began working with Miller in 1998. Plaintiff depo. (doc. 37, exhibit B) at 35-36. When Miller joined SMA and retained plaintiff as an independent contractor to produce renderings in April 2008, the plaintiff placed copyright language on each invoice he sent to defendants. Karlson affidavit (doc. 70-3), ¶ 11. The language added stated plaintiff transferred “a limited copyright to reproduce the artwork ... in unlimited quantities ... royalty free, but only for use directly by you and may not be transferred to another business entity without my expressed permission....” See e.g., defendants exhibit M (doc. 37-2). Nothing was said about the language by either the plaintiff or the defendants until November 2009 when a dispute arose over whether plaintiff should be paid for redoing a rendering upon request by the defendants.3 Karlson affidavit (doc. 70-3), ¶ 13.

[1304]*1304The court has again examined the evidence before it concerning the parties’ agreement. Taking the evidence in the light most favorable to the plaintiff, the court finds as follows:

The plaintiff knew when he created the renderings that SMA was never the end user of the renderings. See Karlson depo. at 75-76 (doc. 37, exhibit B). However, plaintiff claims that he never intended for SMA to distribute his work and that the same was done without his knowledge. In November 2009 the plaintiff sent defendants an email outlining his terms for payment and royalties if they wished to continue to use his services and renderings. See defendants exhibit Q (doc. 37-2). The plaintiff alleges he misunderstood the nature of the Red Door business, but upon learning that his artwork was being provided to licensees, he believed he was entitled to royalties based on the number of builders using the plans. Id. Defendants responded this was not their agreement and the same would not be a good business model for them. Id. Defendants also told plaintiff he could continue doing renderings for a “one time” price, but if he declined, they would find someone else to perform this service. Plaintiff responded that defendants could not use any of his artwork anymore. Id.

Plaintiff argues that “Miller understood and intended that the terms of the sale between [plaintiff] and Red Door Homes would be the same as Karlson and Miller had used during their nearly decade long business relationship.” Plaintiffs brief (doc. 70), at 3. The court can find no evidence which supports this assertion by the plaintiff of Miller’s understanding and intent. The excerpt from Miller’s deposition that plaintiff cites as proof of what Miller intended as the manner in which Red Door Homes would utilize plaintiffs renderings does not state what plaintiff represents to the court. The entire page cited by plaintiff in support of this representation reads as follows:

Q. All right. Would you then sell or would these plans and designs that you had made then be sold to builders, or how — how did ADG make any money.
[Miller]. ADG — ADG as an entity never made any money.
Q. Okay. How was it supposed to make money?
[Miller]. Keith was supposed to make money if somebody wanted a rendering. I would make money on my plans.
Q. To your knowledge, did ADG ever sell any renderings or plans to any builders or prospective home buyers?
[Miller]. AD — I don’t sell to home buyers. I deal with builders.
Q. All right.
[Miller], I sold drafting and design consultation to homebuilders, and if they asked me if there were renderings available, I would tell them that I had a — a resource to do such.

Plaintiff ex. 70-5, at 51.

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Bluebook (online)
18 F. Supp. 3d 1301, 2014 WL 1765186, Counsel Stack Legal Research, https://law.counselstack.com/opinion/karlson-v-red-door-homes-llc-alnd-2014.