Narrative Ark Entertainment LLC v. Archie Comic Publications, Inc.

CourtDistrict Court, S.D. New York
DecidedAugust 29, 2019
Docket7:16-cv-06109
StatusUnknown

This text of Narrative Ark Entertainment LLC v. Archie Comic Publications, Inc. (Narrative Ark Entertainment LLC v. Archie Comic Publications, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Narrative Ark Entertainment LLC v. Archie Comic Publications, Inc., (S.D.N.Y. 2019).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------x NARRATIVE ARK ENTERTAINMENT LLC, : Plaintiff, : v. : : ARCHIE COMIC PUBLICATIONS, INC., : Defendant. : OPINION AND ORDER --------------------------------------------------------------x ARCHIE COMIC PUBLICATIONS, INC., : 16 CV 6109 (VB) Third-Party Plaintiff, : v. : : SCOTT D. FULOP, : Third-Party Defendant. : --------------------------------------------------------------x Briccetti, J.: Plaintiff Narrative Ark Entertainment, LLC (“Narrative Ark”), brings this action under the Copyright Act against defendant Archie Comic Publications, Inc. (“Archie”), asserting Archie has infringed Narrative Ark’s copyrights in certain materials appearing in comic books published by Archie. Archie believes it, not Narrative Ark, owns the copyrights in question; it has pleaded a counterclaim against Narrative Ark for declaratory relief, and a claim for slander of title against Narrative Ark’s principal, third-party defendant Scott Fulop. Now pending are (i) Archie’s motion for summary judgment on Narrative Ark’s claims (Doc. #130); (ii) Narrative Ark and Fulop’s cross-motion for summary judgment on Archie’s counterclaim and third-party claim (Doc. #136); and (iii) Archie’s motion to strike portions of Narrative Ark and Fulop’s joint statement of undisputed material facts (Doc. #145). For the reasons set forth below, Archie’s motion for summary judgment is GRANTED, Narrative Ark and Fulop’s cross-motion for summary judgment is GRANTED, and Archie’s motion to strike is DENIED. The Court has subject matter jurisdiction under 28 U.S.C. § 1331. BACKGROUND The parties have submitted briefs, statements of material facts, declarations, and exhibits, all of which reflect the following factual background.1

Archie produces and publishes comic books. From 1996 to 1998, Fulop worked for Archie as a freelance writer and artist, after two prior stints as an employee. This case concerns certain materials (the “registered works”) in a comic book series (the “series”) published and produced by Archie and containing elements of the videogame “Sonic the Hedgehog.” Former defendant Sega of America, Inc. (“Sega”) produced that videogame and, in 1992, licensed elements of it, including its titular character, to Archie for use in Archie’s comics.2 As a freelancer, Fulop’s work for Archie included creating and developing stories, scripts, artwork, and characters for the series. Archie paid Fulop for his work on each of the registered works. However, there is no evidence Archie and Fulop ever signed an agreement governing their relationship or the ownership of Fulop’s work product.3 Among Fulop’s collaborators in creating the registered

works was nonparty freelancer Ken Penders.

1 The Court notes that counsel to Narrative Ark and Fulop sent the Court courtesy copies of the full transcripts of Fulop’s two depositions in this case, but counsel never filed either transcript as part of the summary judgment record. The Court has disregarded counsel’s presumably inadvertent ex parte submission of the transcripts.

2 The Court previously granted Sega’s motion to dismiss Narrative Ark’s claims against Sega. (See Doc. #90).

3 Archie asserts Fulop did sign such an agreement. In support, Archie points to Fulop’s testimony that he helped develop a form independent contractor agreement for Archie in 1988 and 1989, when Fulop was an Archie employee. (See Doc. #141 (“Supp. Ferdinand Decl.”) Ex. 5 at 62, 73–74). Archie also notes “[a]t least one form of” the agreement Fulop helped develop From 2004 to the present,4 Archie has published and reprinted the registered works in various forms without paying Fulop compensation. Fulop concedes he knew by November 2010 of Archie’s allegedly infringing disseminations of the registered works. Between February 2009 and May 2010, Fulop filed, in some instances along with

Penders, eleven copyright registrations covering the registered works. In October 2015, Fulop assigned his interests in those copyrights to Narrative Ark, a limited liability company Fulop founded for that purpose and of which Fulop is the sole member. In 2010, Archie brought a lawsuit against Penders for declaratory and other relief, claiming Archie owned certain works Penders created for the series as an independent contractor. Penders pleaded counterclaims against Archie for copyright infringement and declaratory relief. Fulop, at his deposition in the instant case, described the Penders litigation as “a copyright litigation lawsuit that involves characters or stories that I worked on, specifically for Sonic the Hedgehog for Archie Comics.” (Ferdinand Decl. Ex. 17 at 162). Fulop knew of the Penders litigation during its pendency. Indeed, Fulop signed an affidavit dated March 6, 2012,

supporting Penders’s claims. (Id. Ex. 21).

contained provisions vesting in Archie ownership of works created by independent contractors. (Doc. #143 ¶ 101). (Footnote continued on next page). Notwithstanding, Archie offers no evidence of a written agreement with Fulop. Fulop’s testimony concerning his drafting of independent contractor agreements for Archie in the 1980s is immaterial to the question of whether Fulop signed a written agreement when he began working for Archie as a freelancer in 1996. Thus, the testimony does not place in genuine factual dispute whether Fulop signed a written agreement with Archie as a freelancer.

4 Narrative Ark purports to dispute this timeframe in its counterstatement of material facts, but Narrative Ark fails to cite any admissible record evidence controverting it. (See Doc. #136- 10 (“Pl. Counterstmt.”) ¶ 65). Thus, the timeframe is deemed admitted for purposes of this motion. See Fed. R. Civ. P. 56(e); Local Civil Rule 56.1(d). Between September 2011 and July 2013, Archie filed copyright registrations naming itself as the author, and Sega as the copyright claimant, of works that allegedly infringe five of Narrative Ark’s copyright registrations covering the registered works. (See Ferdinand Decl. Ex. 8).

No later than 2012, Archie, purporting to own the registered works, transferred and assigned to Sega Archie’s interest in and rights to them.5 (See Ferdinand Decl. Ex. 23). Thus, on Archie’s telling, Sega now owns the copyrights to the registered works. Narrative Ark and Fulop claim Archie paid Fulop for his work on the registered works in exchange for only “first publication rights in North America.” (Doc. #38 (“Am. Compl.”) ¶ 27). Pursuant to this understanding, according to Narrative Ark and Fulop, Fulop retained, and then transferred to Narrative Ark, ownership of the registered works. Thus, Narrative Ark and Fulop say any subsequent publication by Archie of a registered work (or any publication of a registered work outside North America) infringes Narrative Ark’s copyrights. Archie disagrees. It claims Fulop created each registered work for Archie as a “work

made for hire”—a designation that, when the work in question was created by an independent contractor, obtains only “if the parties expressly [so] agree in a written instrument signed by them.” 17 U.S.C. § 101. If Fulop created the registered works as works for hire, then Archie owned and obtained the rights to each registered work upon its creation, and then transferred those rights to Sega no later than 2012.

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Narrative Ark Entertainment LLC v. Archie Comic Publications, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/narrative-ark-entertainment-llc-v-archie-comic-publications-inc-nysd-2019.