Peteski Productions, Inc. v. Rothman

264 F. Supp. 3d 731
CourtDistrict Court, E.D. Texas
DecidedAugust 30, 2017
DocketCIVIL ACTION NO. 5:17-CV-00122-JRG
StatusPublished
Cited by3 cases

This text of 264 F. Supp. 3d 731 (Peteski Productions, Inc. v. Rothman) is published on Counsel Stack Legal Research, covering District Court, E.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peteski Productions, Inc. v. Rothman, 264 F. Supp. 3d 731 (E.D. Tex. 2017).

Opinion

MEMORANDUM OPINION AND ORDER

RODNEY GILSTRAP, UNITED STATES DISTRICT JUDGE

Before the Court is Defendant Leah Rothman’s (“Defendant” or “Rothman”) Motion to Dismiss or Alternatively for Summary Judgment (Dkt. No. 10) (“the Motion”). Having considered the Motion, and for the reasons set forth below, said Motion is hereby DENIED with respect to fair use and, sua sponte, summary judgment is GRANTED in favor of Plaintiff on the issue of fair use.

I. Background

Rothman worked for Plaintiff Peteski Productions, Inc. (“Plaintiff’ or “Peteski”) as a Segment Director for The Dr. Phil Show from 2003 to early 2015. (Dkt. No. 10 at 2.) In April 2015, Rothman sued Peteski and Dr. Phil McGraw in California state court for false imprisonment, intentional infliction of emotional distress, retaliation, and wrongful termination. (Dkt. No. 32-1; Dkt. No. 32-2.) Before filing her state court action, Rothman attempted to document a “bona fide example of Dr. McGraw’s conduct for her lawsuit” (Dkt. No. 10 at 2) by recording, using her iPhone, a nine-second clip of Dr. McGraw from a larger archive of unaired footage from his eponymous television show. (Dkt. No. 10-2 at ¶ 8; Dkt. No. 32-5 at 218:25-220:18.) However, as part of her employment Rothman had agreed, among other things, “to keep confidential and never disclose, use, [or] misappropriate ... any statements or comments concerning Dr. Phil McGraw, the Dr. Phil show, or any of his/its Confidential Information.” (Dkt. No. 32 at 10-12.)

On May 9, 2017, Peteski obtained a registered copyright in the nine seconds of video that Rothman recorded from The Dr. Phil Show archives. (Dkt. No. 1-1.) On June 15, 2017, Peteski filed this lawsuit against Rothman alleging infringement of that registered copyright. (Dkt. No. 1.) Defendant filed the instant Motion to Dismiss or Alternatively for Summary Judgment on July 10. (Dkt. No. 10.) In the Motion, Defendant sought to dismiss for improper venue, lack of personal jurisdiction, and for failure to state a claim, or alternatively for summary judgment that her copying was fair use. (Id.)

On July 12, 2017, Defendant filed an emergency motion seeking a partial stay of this case so that the Court could address her fair use defense before assessing the propriety of venue or personal jurisdiction and before permitting any discovery. (Dkt. No. 17.) In granting this motion, the Court also, at Defendant’s request and based on the need to consider evidence outside the complaint in evaluating Rothman’s fair use defense, converted the underlying motion to dismiss with respect to fair use into a motion for summary judgment on Roth-man’s fair use defense. (Dkt. No. 26.) Consequently, this opinion addresses only Rothman’s claim of fair use.

II. Legal Standard

A. Fair Use

“[Ajnyone who ... makes a fair use of [a] work is not an infringer of the copyright with respect to such use.” Sony Corp. of Am. v. Universal City Studios, Inc., 464 U.S. 417, 433, 104 S.Ct. 774, 78 L.Ed.2d 574 (1984). This principle has [734]*734been recognized since “the infancy of copyright protection” as a “necessary” tool for “fulfilling] copyright’s very purpose.” Campbell v. Acuff-Rose Music, Inc., 510 U.S. 569, 575, 114 S.Ct. 1164, 127 L.Ed.2d 500 (1994). “Since its beginnings, the doctrine of fair use has been refined, .honed, and clarified in many Court decisions.” Triangle Publ’ns, Inc. v. Knight-Ridder Newspapers, Inc., 626 F.2d 1171, 1174 (5th Cir. 1980). However, at the most basic level fair use is a “rule of reason fashioned by Judges to balance the author’s right to compensation for his work, on the one hand, against the public’s interest in the widest possible dissemination of ideas and information, on the other.” Id. (internal quotation marks omitted).

Congress codified fair use as an affirmative defense to copyright infringement at 17 U.S.C. § 107, See Triangle Publ’ns, 626 F.2d at 1174; Campbell, 510 U.S. at 590, 114 S.Ct. 1164. In doing so, “Congress ... in no way intended to depart from Court-created principles” of fair use. Triangle Publ’ns, 626 F.2d at 1174.

Under §, 107, courts consider at least four statutory factors in evaluating fair use: ■

(1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes;
(2) the nature of the copyrighted work;
(3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and
(4) the effect of the use upon the potential market for or value of the copyrighted work.

17 U.S.C. § 107. None of these factors are exclusive or dispositive, Campbell, 510 U.S. at 584, 114 S.Ct. 1164, but “[c]ourts have generally placed most emphasis on the fourth factor.” Triangle Publ’ns, 626 F.2d at 1175. But see Campbell, 510 U.S. at 579, 114 S.Ct. 1164 (“[T]he more transformative the new work, the less will be the significance of other factors_”).

B. Summary Judgment

A motion for summary judgment is properly granted only if there is no genuine issue as to any material fact. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). A dispute about a material fact is “genuine” if the evidence presented, viewed in the light most favorable to the nonmoving party, would permit a reasonable jury to find for the nonmoving party. Id. However, such evidence, whether it is offered by the movant to satisfy their initial burden or by the nonmovant to defeat a properly supported motion for summary judgment, may not consist entirely of “conclusory allegations” or “unsubstantiated assertions.” Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994). Likewise, such evidence must be “capable of being ‘presented in a form that would be admissible in evidence.’” LSR Consulting, LLC v. Wells Fargo Bank, N.A., 835 F.3d 530, 534 (5th Cir. 2016) (emphasis in original).

“Fair- use is a mixed question of law and fact, which means that it may be resolved on summary judgment if a reasonable trier of fact could reach only one conclusion—but .not otherwise.” Ty, Inc. v. Publ’ns Int'l Ltd., 292 F.3d 512, 516-17 (7th Cir. 2002) (internal quotation marks and citations omitted) (citing Harper & Row Publishers, Inc. v. Nation Enters., 471 U.S. 539, 560, 105 S.Ct. 2218, 85 L.Ed.2d 588 (1985); Narell v. Freeman, 872 F.2d 907

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Bluebook (online)
264 F. Supp. 3d 731, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peteski-productions-inc-v-rothman-txed-2017.