PIC Design Corporation v. Sterling Precision Corp.

231 F. Supp. 106, 142 U.S.P.Q. (BNA) 431, 1964 U.S. Dist. LEXIS 9069
CourtDistrict Court, S.D. New York
DecidedJune 29, 1964
StatusPublished
Cited by22 cases

This text of 231 F. Supp. 106 (PIC Design Corporation v. Sterling Precision Corp.) 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
PIC Design Corporation v. Sterling Precision Corp., 231 F. Supp. 106, 142 U.S.P.Q. (BNA) 431, 1964 U.S. Dist. LEXIS 9069 (S.D.N.Y. 1964).

Opinion

RYAN, Chief Judge.

PIC Design Corporation has filed this suit for copyright infringement of its trade catalogs and for unfair competition against Sterling Precision Corporation and Designatronics, Inc. This Court has jurisdiction under 28 U.S.C. § 1338 and 15 U.S.C. § 1125(a).

Plaintiff and defendant Designatronics are New York corporations and maintain their principal places of business within the State. Defendant Sterling was organized under the laws of Delaware and maintains its principal place of business in New York.

*108 Prior to 1954, precision gears — as differentiated from commercially standard gears — were apparently made only to order. Plaintiff then marketed an extensive line of precision instrument components and kept them in inventory for immediate delivery. The obvious savings to users from such prompt shipment of components resulting from plaintiff’s procedure increased plaintiff’s business, brought larger profits, and induced competition in the area from, among others, the defendant Sterling. Prior to the commencement of this suit and on March 1, 1961, Sterling sold its precision component division to the defendant Design-atronics who was subsequently joined as a defendant in this suit.

1“ To promote the sale and marketing of its line of components, plaintiff compiled and published a series of catalogs, all of a same general format, containing precision drawings of each particular component and a series of tables detailing physical and mathematical characteristics of each. The idea of these catalogs was not original with plaintiff but the application to the precision component field was new. The Boston Gear Catalog (Exhibit 101) preceded PIC’s in conception and circulation but was concerned with the standard commercial run of gears. The Boston Gear Catalog is distinguishable in format — as well as content — from those of plaintiff and defendants primarily in that it used photographs of the components instead of schematic drawings. It is conceded that much of the material in its books was originated by plaintiff.

Plaintiff complied with the provisions of Title 17 U.S.C. and secured copyright registration certificates covering its catalogs. Adequate legal notice of copyright is to be found in each of the catalogs. These copyrights are still in effect and plaintiff has retained full control and ownership over them.

Defendant Sterling subsequently entered into competition with plaintiff and issued the series of catalogs which allegedly infringe on plaintiff’s copyrights. There is no question but that the defendant Sterling had actual knowledge of plaintiff’s operations, catalogs and the copyrights relating to them before entering the field and promulgating its own catalogs. The use of such catalogs is indispensable to the successful operation of this business. The catalogs are distributed to engineers and designers who require the technical specifications they contain, and to buyers and purchasing agents, who rely on them for the selection of precision components. The catalogs are distributed at trade exhibitions and by direct mail throughout the country.

When in March, 1961, Sterling sold its precision components business to the defendant Designatronies, Sterling permitted Designatronies to use its name on the new catalogs thereafter issued by the latter. Testimony indicates that for a period of one year Sterling agreed to indemnify Designatronies against any damages in connection with the current litigation. During this period Designa-tronics issued catalogs Nos. 65, 66 and 67. Subsequently, Designatronies issued catalog No. 70 which admittedly differs to some degree from both plaintiff’s catalogs and defendants’ prior catalogs. Plaintiff claims that the distinction is insufficient to avoid a finding of copyright infringement. Designatronies has ceased publication of all prior catalogs and is now issuing only its catalog No. 70.

Plaintiff alleges two primary claims in this suit.

The first claim is for copyright infringement of its series of catalogs culminating in its PIC Master Catalog No. 20, by the defendant Sterling’s catalogs Nos. 50, 60, Ultra Precision Supplement Nos. 61, 62, 63 and 64 and by defendant Designatronies’ catalogs Nos. 65. 66, 67 and 70. Plaintiff asserts defendants copied (and so infringed on its copyrights) its drawings of the precision components, all of which are claimed to be original with the plaintiff, the tables of specifications that are generally printed under the drawings and refer to the items thus illustrated, and the allegedly original and copyrightable general for *109 mat or “visual impact” of the PIC catalog.

Plaintiff’s second claim lies in the area of unfair competition. Plaintiff alleges that the format of its catalogs is so unique with it as to have acquired a "“secondary meaning” and that defendants committed acts of unfair competition in mailing their catalogs so similar In general design and format as to appropriate to themselves the goodwill and reputation the plaintiff has established over the years. Plaintiff further contends that defendants’ actions in so doing were intended to, and in fact did, cause confusion in the trade so as to siphon off business from plaintiff by creating the impression of a connection between plaintiff and defendants.

Plaintiff further alleges acts of unfair competition by the defendants in that they falsely claimed to have in stock all of the items in their catalogs ready for immediate delivery when in fact their supplies on hand were inadequate to meet this purpose. To satisfy demands for such components as were not on hand, defendants allegedly purchased the items from plaintiff and passed them off as their own. Plaintiff claims that by so doing, defendants unfairly deprived plaintiff of business reasonably expected since it is the custom in the trade for purchasers to buy as many required components as possible from a single supplier.

Plaintiff seeks an injunction restraining both defendants from further publishing and circulating the offending catalogs, from any further infringement of plaintiff’s copyrights, requiring defendants to destroy all catalogs, plates and drawings which infringe plaintiff’s copyrights, an accounting for profits and damages, and an award for costs and counsel fees. Plaintiff also seeks an injunction barring further acts of unfair competition.

Item “7A.” of the Pre-Trial Order provides :

“Plaintiff need not prove actual damages nor the extent thereof at the trial, proof of damages being reserved for a separate proceeding pending a decision on the question of defendants’ liability.”

Copyright Infringement

The published items are trade catalogs and are copyrightable under 17 U.S.C. § 5(a), even though the subject matter contained in the catalog is within the public domain. This is so even though the same facts could be gathered by another through independent research. One must do this research himself and not merely copy the material from one who has already gathered, arranged and collated it.

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Bluebook (online)
231 F. Supp. 106, 142 U.S.P.Q. (BNA) 431, 1964 U.S. Dist. LEXIS 9069, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pic-design-corporation-v-sterling-precision-corp-nysd-1964.