LADS Network Solutions, Inc. v. Agilis Systems, LLC

CourtDistrict Court, E.D. Missouri
DecidedSeptember 28, 2022
Docket4:19-cv-00011
StatusUnknown

This text of LADS Network Solutions, Inc. v. Agilis Systems, LLC (LADS Network Solutions, Inc. v. Agilis Systems, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LADS Network Solutions, Inc. v. Agilis Systems, LLC, (E.D. Mo. 2022).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MISSOURI EASTERN DIVISION

LADS NETWORK SOLUTIONS, INC., ) ) Plaintiff, ) ) v. ) Case No. 4:19-cv-00011-SEP ) AGILIS SYSTEMS, LLC, et al., ) ) Defendants. )

MEMORANDUM AND ORDER Before the Court is Plaintiff’s Motion to Reconsider Pursuant to Federal Rules of Civil Procedure 59(e) and 60(b). Doc. [149]. For the reasons set forth below, the motion is denied. FACTUAL BACKGROUND On March 12, 2014, Daniel Huber filed on Plaintiff’s behalf a copyright registration application and accompanying deposit material with the United States Copyright Office for its GPStrac software. Doc. [92] (Pl.’s Resp. to Defs.’ Statement of Material Facts) ¶ 1. In compiling the deposit material, Huber asked one of Plaintiff’s employees to retrieve the entire GPStrac code, then, Huber claims, “the first and last 25 pages were extracted, and lines were redacted to protect trade secrets.” Doc. [93] ¶ 13. On September 4, 2014, Melissa Wells Saharko, a registration specialist with the Copyright Office, responded to Huber’s application, noting discrepancies between the application and the deposit material. Doc. [92] ¶ 3. Saharko explained that the application indicated that GPStrac was created on May 1, 2000, but the deposit material contained a 2004 copyright notice. Id. ¶ 4. In response to Saharko’s correspondence, according to Huber, he asked the same LADS employee “to identify the correct set of files, which was again assembled, the first and last 25 pages extracted with lines redacted.” Doc. [93] ¶ 13; see also Doc. [92] ¶ 6. On September 15, 2014, Huber again submitted what was purportedly the first 25 pages and last 25 pages of the relevant source code, with redactions. Doc. [92] ¶ 6. On September 16, 2014, Saharko confirmed that the registration was complete, and Plaintiff received a copyright registration for its GPStrac software the same day. Id. ¶¶ 7-8. On January 3, 2019, Plaintiff filed this lawsuit alleging that the Defendants committed copyright infringement. Doc. [1]. On March 10, 2020, in response to Defendants’ discovery requests, Plaintiff produced the complete and unredacted GPStrac source code: LADS000139-437- GPStrac Copyright Full Source Code 5-1-00.PDF. Doc. [92] ¶ 9. Upon reviewing the complete, unredacted source code, Defendants discovered that it contained references to Apache License Version 2.0, Google Maps, InfoBubble JS, and Developer.yahoo.com/yui—third-party programs that did not exist on May 1, 2000, when the GPStrac source code was supposedly published according to the September 2014 application and registration. Id. ¶¶ 8, 10-16. On March 13, 2020, Defendants’ counsel informed Plaintiff’s counsel about the issue with the deposit material, and Plaintiff’s counsel confirmed that the source code produced on March 10, 2020, contained software that did not exist on May 1, 2000. Id. ¶ 27; see also Docs. [83-23] (March 13, 2020, email from Corsale to Rabenberg) (notifying Plaintiff’s counsel that the source code produced on March 10th incorporates software created years after May 1, 2000); [83-22] (April 2, 2020, email from Rabenberg to Corsale) (“Your observations about the source code that were previously produced (LADS000139-437) . . . were correct. My client selected a file for production that began with the correct source code from the correct time frame but included material that existed later in time.”). On April 2, 2020, Plaintiff provided Defendants with a different source code: LADS000438-539.1 Doc. [92] ¶ 26; see also Doc. [83-22] (April 2, 2020, email from Rabenberg to Corsale). After the March 13th communication, Huber claims to have “realized the mistake that had been made with the deposit material for the [September 15, 2014] copyright application,” Doc. [93] ¶ 16, and contacted the Copyright Office “to inquire how [he] could correct” the deposit material. According to Huber, an unnamed employee said that “the [O]ffice would contact [him] and give [him] 30 days to correct the problem” if “[the Office] were to receive information questioning the deposit[.]” Id. ¶ 17. On April 3, 2020, Defendants moved for summary judgment, arguing that Plaintiff’s September 16, 2014, copyright registration was invalid pursuant to 17 U.S.C. § 411(b).2 Docs. [82], [83] at 14-15. On March 26, 2021, as required by 17 U.S.C. § 411(b)(2), the Court queried the Copyright Office as to whether that Office would have refused registering Plaintiff’s September 15, 2014, application “had it known that the deposit material/source code submitted with the

1 According to Defendants, the source code produced on April 2, 2020, was not the same source code submitted to the Copyright Office on September 15, 2014, which Plaintiff does not deny. Doc. [92] ¶ 28. 2 Section 411(b) states that “[a] certificate of registration satisfies the requirements of this section and section 412, regardless of whether the certificate contains any inaccurate information, unless—(A) the inaccurate information was included on the application for copyright registration with knowledge that it was inaccurate; and (B) the inaccuracy of the information, if known, would have caused the Register of Copyrights to refuse registration.” application . . . included source code created after the purported publication date of May 1, 2000[.]” Doc. [134] at 1. On August 3, 2021, the Copyright Office responded that it would have denied registration under those circumstances. Doc. [137] as 1 (“[I]f the Office had been aware that the deposit submitted on September 15, 2014, included source code created after the May 1, 2000 publication date provided in the application, it would not have registered the work.”). On August 23, 2021, the Court held oral argument on the motion. Doc. [139]. In their papers and at oral argument, the parties did not dispute that the first and third requirements of § 411(b)—i.e., that inaccurate information was included in the September 15, 2014, application and that had the Office known of the inaccuracy, it would have refused registration—were met. See, e.g., Docs. [91] at 5; [93] ¶ 16; [137] at 1; [148] (Trans. of Oral Arg.) at 14:12-21. But they disagreed about the level of knowledge required to satisfy § 411(b)(1)(A). Plaintiff argued that fraudulent intent was necessary, Doc. [91] at 6-7, while Defendants claimed that it was not, Doc. [99] at 8-10. On August 25, 2021, the Court granted Defendants’ motion on the oral record. Docs. [141], [142]. After acknowledging that the legal question was unsettled in the Eighth Circuit, the Court followed Bruhn NewTech, Inc. v. United States, 144 Fed. Cl. 755, 802 (2019), in holding that, by its terms, § 411(b)(1)(A) does not require fraudulent intent. Doc. [147] at 5:8-20. Then the Court found that Defendants had shown an absence of genuine dispute that Plaintiff knew3 information redacted from the September 15, 2014, application was inaccurate when it was submitted, id. at 6:6-

3 The Court found that it was “undisputed . . . that someone at LADS reviewed the inaccurate information, not once, but twice before submitting it; that that person was charged with determining whether the contents of the code contained trade secrets, and determined that the sections that contained inaccurate information did contain trade secrets. So whoever it was who made those redactions . . . they knew enough about coding to know whether these things were trade secrets or not.” Doc. [147] at 7:6-11.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
LADS Network Solutions, Inc. v. Agilis Systems, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lads-network-solutions-inc-v-agilis-systems-llc-moed-2022.