Letsch v. Southern Proper Hospitality, LLC

District Court, District of Columbia·Decided March 14, 2025·No. Civil Action No. 2021-1840·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

MIRJAM LETSCH, Plaintiff,

v.

Civil Action No. 21-1840 (TJK)

SOUTHERN PROPER HOSPITALITY GROUP, LLC, et al.,

Defendants.

MEMORANDUM OPINION & ORDER Gypsy Kitchen, a restaurant in Atlanta, wanted to use one of Mirjam Letsch’s photos as a mural in its dining room. So it paid her for a license permitting that use. Problems arose, though, when Letsch realized that Gypsy Kitchen had not stopped there. Instead, Gypsy Kitchen had also used the photo in a newly opened D.C. location and in digital-advertising materials. Letsch sued for copyright infringement, and the parties eventually cross-moved for summary judgment. The Court granted and denied each motion in part. Using the photo in the D.C. restaurant exceeded the scope of the license, which did not permit displaying the photo in that location or using images of that display in digital marketing. But displaying the photo in the Atlanta restaurant and using it in promotional materials for that location fell within the license’s scope. Disagreeing with the Court’s holding on the Atlanta restaurant’s promotional materials, Letsch moved for reconsidera- tion.

The Court has reconsidered that holding and finds that genuine disputes of material fact prevent summary judgment on whether marketing materials using the image in the Atlanta restau- rant infringed Letsch’s copyright. A jury could find that the original license did not authorize those uses. Nor is it beyond reasonable dispute that Letsch’s social-media activity granted an

implied license permitting the Atlanta-based marketing uses. Thus, summary judgment was inap- propriate on this issue. And because “[w]isdom too often never comes,” the Court will not “reject it merely because it comes late.” Henslee v. Union Planters Nat’l Bank & Tr. Co., 335 U.S. 595, 600 (1949) (Frankfurter, J., dissenting). So the Court will grant Letsch’s motion for reconsidera- tion. I. Background The Court’s Memorandum Opinion addressing the summary-judgment motions offers de-

tailed background about this case, see ECF No. 45, so an overview is enough here. Mirjam Letsch has worked as a professional photographer for about twenty years. ECF. No. 39-1 ¶ 29. In 2007, she took a photograph of “a woman from the Bhopa tribe in the Indian desert state of Rajasthan, drinking chai (traditional masala tea).” Id. ¶¶ 1–2.

ECF No. 1-1.

About seven years later, Southern Proper Hospitality Group, LLC (“Southern Proper”)—

an Atlanta-based owner and operator of nearly two dozen restaurants—started planning a new Atlanta restaurant called “Gypsy Kitchen.” ECF No. 39-1 ¶¶ 4, 31. The company hired an

architecture firm to design the restaurant, and that firm found Letsch’s photograph on her website. Id. ¶¶ 5–6. In early 2014, one of the architecture firm’s employees emailed Letsch about buying a digital version of the photo to use “as a permanent large feature (wall mural).” Id. ¶ 7; ECF No. 33-7. Letsch asked for more details and learned about the firm’s client that wanted to use the image “in a restaurant” as “a large mural”—about 14 feet by 14 feet—“on one of the[] dining room walls.” ECF Nos. 33-8, 33-9.

After this exchange, Letsch talked deal terms. “If you use the photo only for the ‘mural’

as specified by you,” she wrote, “I can offer you the (model released) photo at €1000.” ECF No. 33-11. “No problem,” the architecture firm replied. ECF No. 33-12 at 1. As for “grant[ing] the license,” Letsch explained that she could provide it in “[w]hatever” form “is convenient.” ECF No. 33-13 at 1. She also had a “model release”—i.e., an agreement signed by the subject of a photograph “granting permission to publish or sell the photograph in one form or another”—from the photographed woman that she could send too. Tharpe v. Lawidjaja, 8 F. Supp. 3d 743, 779 (W.D. Va. 2014); ECF No. 13-13 at 1. With these details worked out, Chris Hadermann (Southern Proper’s managing partner) sent Letsch €1,000 via PayPal. ECF No. 33-15. The invoice for the payment included the following note: “PHOTO TO BE USED FOR RESTAURANT MURAL (ONLY).” ECF No. 33-17. But “[f]or all other use,” it stated, “please contact [Letsch] first.” Id.

Gypsy Kitchen opened its doors and began using pictures of the mural in social-media posts and marketing materials. For example, the cover photo of the restaurant’s Facebook page was a picture of the dining room with the mural. See ECF No. 37-26 at 9–11. And a promotional email for a special one-year-anniversary celebration used a zoomed-in image of the photographed woman along with pictures of the restaurant, drinks, and food. Id. at 8.

By 2019, Southern Proper was planning to open another Gypsy Kitchen restaurant in Washington, D.C. ECF No. 39-1 ¶ 92. Working with the design firm RDStudio this time, Hader- mann emailed the Atlanta architecture firm to ask about the mural in the original restaurant. ECF No. 37-9 at 3. Southern Proper wanted to use that mural—or, more precisely, the image that be- came the mural—“again for DC.” Id. But Southern Proper was “unsure if [it] could” do that under the original deal with Letsch. Id. In response, the Atlanta firm sent “two documents” that led it “to believe we might need to reach out . . . again to license it for another location.” Id. at 2.

RDStudio did just that. It emailed Letsch, explained that it was “working on a restaurant in DC with Southern Proper Hospitality,” and asked if it could “use the image again for the new location” given the previous “permission” to “use the image for mural use only.” ECF No. 33-27 at 1. Letsch and the firm’s representative exchanged emails and appeared to agree on a price of €1,200 for permission to use the photo in Gypsy Kitchen D.C. See ECF No. 37-14 at 2–7. But RDStudio suddenly stopped responding, which prompted follow-up from Letsch: “You haven’t paid the invoice, have not cancelled, nothing. Please let it be clear that my photo cannot be used in any way in another project. Not as as [sic] mural, not in print or digital.” ECF No. 37-15 at 2. RDStudio forwarded that email to Hadermann, writing that: “You’ve asked us to ignore her invoice and stop communication with her since you felt that the image was already purchased by [Southern Proper] and in your original terms with her it didn’t explicitly state that you couldn’t reproduce the image.” ECF No. 37-17. Hadermann then emailed Letsch that “we have already paid you for the licensing and use of this image for our Gypsy Kitchen concept.” ECF No. 37-16 at 3. Letsch responded that they had no agreement; the original license was “only for mural use in one restau- rant”—“[n]ot for any other purpose, nor for new locations.” Id. at 2. Undeterred, Southern Proper eventually created the mural without a new licensing agreement and displayed it in the D.C.

restaurant beginning in August 2020. ECF No. 39-1 ¶¶ 94–97, 127. But after Letsch’s counsel sent a cease-and-desist letter in March 2021, Gypsy Kitchen D.C. removed the mural two months later. Id. ¶¶ 96–97.

In July 2021, Letsch sued four parties for copyright infringement: Southern Proper, Hader-

mann, RDStudio, and ABC Imaging of Washington, Inc. 1 See ECF No. 1 at 1–3, 8–11. After completing discovery, Letsch and Defendants cross-moved for summary judgment. See ECF Nos. 33, 35, 36. The motions hinged on whether Defendants’ uses of Letsch’s photo fell within the scope of the license that Letsch granted. In turn, that question raised two subsidiary issues: what was the scope of the license, and which—if any—of Defendants’ uses exceeded that scope?

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