MacRo Niche Software, Inc. v. Imaging Solutions of Australia

603 F. App'x 351
CourtCourt of Appeals for the Fifth Circuit
DecidedMay 20, 2015
Docket14-20371
StatusUnpublished
Cited by1 cases

This text of 603 F. App'x 351 (MacRo Niche Software, Inc. v. Imaging Solutions of Australia) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MacRo Niche Software, Inc. v. Imaging Solutions of Australia, 603 F. App'x 351 (5th Cir. 2015).

Opinion

PER CURIAM: *

Imaging Solutions of Australia (“ISA”) prevailed in a copyright infringement suit brought against it by Plaintiffs Macro Niche Software, Inc., R/MED, Inc., and Michael J. Ruthemeyer (collectively “Plaintiffs”). ISA appeals the district court’s denial of its motion for attorney’s fees. We affirm.

I. Factual and Procedural Background

On August 1, 2012, Plaintiffs filed suit against, inter alia, ISA for copyright infringement and civil conspiracy. Plaintiffs sell computer software known as Apron-Check, which tracks the maintenance of lead aprons used by x-ray technicians to facilitate the protection of the apron users from radiation. ISA is a supplier of radio-graphic products, including lead aprons, to Australian, New Zealand, and Southeast Asian markets. Plaintiffs’ suit claimed that they and ISA discussed marketing the ApronCheck software in Australia and that the parties began to work on joint marketing materials but never reached a definitive agreement. ISA subsequently was involved in the release of competing apron-tracking software named RadTrack. Plaintiffs’ infringement suit claimed that RadTrack is substantially similar to ApronCheck and was developed using the Plaintiffs’ protected intellectual property. ISA filed counterclaims against the Plaintiffs for negligent misrepresentation and fraudulent misrepresentation.

On December 27, 2013, the district court granted ISA’s motion for summary judgment on the Plaintiffs’ copyright and civil conspiracy claims. The district court found that while Plaintiffs claimed Rad-Track in its entirety was substantially similar to ApronCheck, Plaintiffs failed to produce evidence that would allow it to perform the necessary abstraction and filtration steps of this circuit’s test for software copyright infringement. See., e.g., Computer Mgmt. Assistance Co. v. Robert F. DeCastro, Inc., 220 F.3d 396, 400-01 (5th Cir.2000) (describing the “abstraction-filtration” method). After summary judgment, the only remaining issues between Plaintiffs and ISA were ISA’s counterclaims. Due to Plaintiffs’ failure to adequately answer the counterclaim allegations, the district court deemed them admitted. After a trial on the issue of damages, a jury awarded ISA $129,607.00.

ISA then filed a motion seeking $239,723.30 in attorney’s fees, $35,265.57 in costs, and pre-judgment and post-judgment interest on the damages award. The district court denied attorney’s fees, but awarded ISA costs and interest. ISA appeals the denial of attorney’s fees.

II. Discussion

We review the district court’s refusal to award attorney’s fees in a copyright infringement case for abuse of discretion. Virgin Records Am., Inc. v. Thompson, 512 F.3d 724, 725 (5th Cir.2008) (citing *353 Positive Black Talk Inc. v. Cash Money Records, Inc., 394 F.3d 357, 380 (5th Cir.2004)). “A trial court abuses its discretion in awarding or refusing to' award attorney’s fees when its ruling is based on an erroneous view of the law or a clearly erroneous assessment of the evidence.” Id. (quoting Positive Black Talk, 394 F.3d at 380).

“The Copyright Act of 1976, 17 U.S.C. § 505, provides in relevant part that in any copyright infringement action ‘the court may ... award a reasonable attorney’s fee. to the prevailing party as part of the costs.’ ” Fogerty v. Fantasy, Inc., 510 U.S. 517, 519, 114 S.Ct. 1023, 127 L.Ed.2d 455 (1994) (quoting 17 U.S.C. § 505). “Prevailing plaintiffs and prevailing defendants - are to be treated alike, but attorney’s fees are to be awarded to prevailing parties only as a matter of the court’s discretion.” Id. at 534, 114 S.Ct. 1023. An award of attorney’s fees to the prevailing party in a copyright action is “the rule rather than the exception and should be awarded routinely.” Virgin Records, 512 F.3d at 726 (quoting Positive Black Talk, 394 F.3d at 380). However, “recovery of attorney’s fees is not automatic.” Id.; see Fogerty, 510 U.S. at 533-34, 114 S.Ct. 1023 (rejecting a proposed automatic-recovery rule). In Fogerty, the Supreme Court listed several non-exclusive factors that a court may consider in exercising its discretion: “frivolousness, motivation, objective unreasonableness (both in the factual and in the legal components of the case) and the need in particular circumstances to advance considerations of compensation and deterrence.” Fogerty, 510 U.S. at 534 n. 19,114 S.Ct. 1023 (quoting Lieb v. Topstone Industries, Inc., 788 F.2d 151, 156 (3rd Cir.1986)); see Virgin Records, 512 F.3d at 726. “There is no precise rule or formula for making these determinations,” but instead the district court must exercise equitable discretion in light of the considerations identified by the Supreme Court. Fogerty, 510 U.S. at 519, 114 S.Ct. 1023 (quoting Hensley v. Eckerhart, 461 U.S. 424, 436-37, 103 S.Ct. 1933, 76 L.Ed.2d 40 (1983)); see Virgin Records, 512 F.3d at 726-27. We have previously affirmed the denial of attorney’s fees in copyright infringement cases where the district court fully considered and applied the relevant factors when denying fees. See Virgin Records, 512 F.3d at 726-27; Positive Black Talk, 394 F.3d at 381-83; Creations Unlimited, Inc. v. McCain, 112 F.3d 814, 817 (5th Cir.1997).

In this case, the district court correctly set forth the standards, including the text of 17 U.S.C. § 505, the principle that, fee awards for prevailing parties are the rule rather than the exception, its own discretion, and the non-exclusive list of Fogerty factors. The district court then applied each of the factors to the facts of this case, concluded that all of the factors weighed against awarding attorney’s fees to ISA, and gave a reasonable explanation for its analysis of each factor. Specifically, the court found that although Plaintiffs lost at summary judgment, their claims were neither frivolous nor objectively unreasonable.

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603 F. App'x 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/macro-niche-software-inc-v-imaging-solutions-of-australia-ca5-2015.