Metro Associated Services, Inc. v. Webster City Graphic, Inc.

117 F. Supp. 224, 100 U.S.P.Q. (BNA) 88, 1953 U.S. Dist. LEXIS 4247
CourtDistrict Court, N.D. Iowa
DecidedDecember 31, 1953
DocketCiv. 565
StatusPublished
Cited by15 cases

This text of 117 F. Supp. 224 (Metro Associated Services, Inc. v. Webster City Graphic, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metro Associated Services, Inc. v. Webster City Graphic, Inc., 117 F. Supp. 224, 100 U.S.P.Q. (BNA) 88, 1953 U.S. Dist. LEXIS 4247 (N.D. Iowa 1953).

Opinion

*226 GRAVEN, District Judge.

The plaintiff, Metro Associated Services, Inc., in this action charges the defendant, the Webster City Graphic, Inc., with violation of copyrights and unfair competition. The complaint is in nine counts. The first eight counts relate to violation of copyrights and the ninth count relates to unfair competition. Jurisdiction as to the first eight counts is based upon Section 1338(a), Title 28, U.S.C.A., and as to the ninth count upon Section 1338(b), Title 28, U.S.C.A. The plaintiff is a New York Corporation which provides newspapers and other periodicals with illustrations and other materials for use in connection with advertising. Its service is nation-wide. It will be hereafter referred to as Metro. During the times here material William Schak, frequently referred to in the record as Schak, was the General Manager of Metro. Metro publishes the “Metro Newspaper Service” hereafter referred to as the Metro Service. The Metro Service, which is published monthly, is a large, bound, slick-paper booklet, the pages of which are approximately 17 inches by 22 inches. Each issue consists of approximately 50 pages. Each page contains from 10 to 30 or more illustrations, advertising headings or combinations of those with a mat number for each illustration. During the period of time here involved approximately 50,000 • illustrations appeared in the Metro Service. The Metro Service is subscribed to by approximately 3,500 newspapers. A newspaper which subscribes to the Metro Service makes use of the illustrations and other advertising materials in preparing advertisements for its advertisers. It appears that it is common practice for such subscribers to allow its advertisers to examine the Metro Service for suitable illustrations. When an illustration has been selected for use in an advertisement, the subscribing newspaper selects the mat for that illustration from the set of mats accompanying the printed volume and reproduces the illustration from the mat by ordinary printing processes. Metro sells its service to only one newspaper in a locality. This is done to avoid duplicate publication of the same illustration in the same locality and to induce newspapers to subscribe because of the resulting exclusive use of the Metro Service. The subscriptions are on a yearly basis. The standard Metro subscription contract, which is used by Metro generally and which was used by it in its contracts with the particular subscribers here involved, contains the following clause: “We are to have exclusive use of said service in the city of- and shall not use, loan or sell service, or any part thereof, outside of the territory.” The Metro copyright symbol, generally printed along with a mat number beneath each illustration in the Metro Service, consists of a small “c” in a circle surmounted with a capital “M”.

The defendant, Webster City Graphic, Inc., is an Iowa corporation engaged in the publishing business at Webster City, Iowa. Since March, 1951, it has published a newspaper known as the Webster City Graphic. The defendant and its publication are hereafter referred to as the Graphic. William L. Matthew has been the President and General Manager of the Graphic since its inception. All of the stock in the defendant is owned by him and the members of his family. He is hereafter referred to as Matthew. For many years prior to March, 1951, and since that time there has been a daily paper published at Webster City, Iowa, known as the Webster City Freeman-Journal, hereafter referred to as the Freeman-Journal. For a period of time prior to March, 1951, Matthew was in the employ of the Freeman-Journal as Advertising Manager. During all of the period of time here material the Freeman-Journal was the exclusive subscriber to the Metro Service in Webster City. On January 19, 1950, and February 13, 1951, Matthew, in his capacity as Advertising Manager of the Freeman-Journal, signed annual subscriptions with Metro. Matthew was familiar with the Metro Service *227 and its exclusive use feature. Shortly prior to March 1, 1951, Matthew left the employ of the Freeman-Journal and started the Graphic. The Graphic is printed by “photo-offset” process rather than by conventional printing methods made use of by most newspapers, including the Freeman-Journal. Conventional printing methods require the use of mats for illustrations. The “photo-offset” method does not necessitate the use of mats for the printing of illustrations. The Graphic began as a weekly, delivered or mailed free of charge to residents of Webster City and surrounding area. It has developed into a semiweekly paper carrying some local news and some features. Its circulation exceeds that of the Freeman-Journal. The Graphic is in competition with the Freeman-Journal for advertising, and its advertising rates are lower than those of the Freeman-Journal. The Graphic has not at any time been a subscriber to Metro Service.

During the period of time here material, the Graphic was a subscriber to a specialized service known as the MultiUse Ad Builder, published by Multi-Ad Services, Inc., of Peoria, Illinois. The publisher and the publication will be hereafter referred to as Multi-Ad and the Multi-Ad Service. The Multi-Ad Service is similar to the Metro Service except that it provides its subscribers with borders, headings, and “attention compellors” rather than with actual advertising illustrations. The Multi-Ad Service furnishes mats to its subscribers. The Graphic, not needing mats because it printed by “photo-offset,” merely cut out the desired material from the Multi-Ad Service. Commencing in 1945 Metro had given Multi-Ad permission to demonstrate the use of Multi-Ad’s borders and headings with illustrations from Metro Service. This permission was given upon the condition that each page on which the Metro illustrations were used should carry a warning that only those Multi-Ad subscribers who were also subscribers to Metro Service could avail themselves of the Metro illustrations. As a practical matter this warning was needed only as to those Multi-Ad subscribers who printed by “photo-offset” since Multi-Ad did not furnish mats for the Metro illustrations and the cost to those newspapers which were printed by conventional means of reproducing Metro’s illustrations without mats would not be economically feasible. Multi-Ad agreed to the condition specified by Metro in connection with the use of Metro material. When any Metro material appeared in Multi-Ad the Metro symbol appeared below the item used and on the same page in the lower right hand corner there appeared the following: “Material from the Metro Service which appears on this page is available to Metro Subscribers only.” Matthew did not know that Metro material was appearing in Multi-Ad until his attention was specifically called to it by Schak of Metro following a claimed copyright infringement by the Graphic. The Metro material was the proper subject of copyright and all of the material here involved was copyrighted. From the numerous pages of newspapers introduced into evidence in this case it appears the material was of the type and kind used generally in advertisements. Metro does not copyright each illustration separately but by notice and subsequent registration -secures a copyright for each monthly issue of Metro Service.

In Count One of its complaint the plaintiff charges the defendant with copyright infringement in connection with the use of the illustration which was accompanied by the words “Come To The Fair.” That illustration with the accompanying words appeared in the Metro Service of July, 1951. That issue was copyrighted by the plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
117 F. Supp. 224, 100 U.S.P.Q. (BNA) 88, 1953 U.S. Dist. LEXIS 4247, Counsel Stack Legal Research, https://law.counselstack.com/opinion/metro-associated-services-inc-v-webster-city-graphic-inc-iand-1953.