Pyrotechnics Management Inc v. XFX Pyrotechnics LLC

38 F.4th 331
Court of Appeals for the Third Circuit·Decided June 29, 2022·No. 21-1695·Published·Cited by 9 cases

Opinion

PRECEDENTIAL

UNITED STATES COURT OF APPEALS FOR THE THIRD CIRCUIT

No. 21-1695

PYROTECHNICS MANAGEMENT, INC.

v.

*XFX PYROTECHNICS LLC; FIRETEK, Appellants

*Dismissed Pursuant to Clerk Order dated 12/29/21.

On Appeal from the United States District Court for the Western District of Pennsylvania (D.C. No. 2:19-cv-00893)

District Judge: Honorable Robert J. Colville

Argued on April 27, 2022

Before: HARDIMAN, NYGAARD, and FISHER, Circuit Judges.

(Filed: June 29, 2022)

Louis J. Kroeck [Argued]

LJK Law PLLC 1200 Sarah Street Pittsburgh, PA 15203 Counsel for Appellant

Kevin C. Harkins Lucy E. Hill [Argued] Frederick L. Tolhurst Dentons Cohen & Grigsby P.C. 625 Liberty Avenue 5th Floor Pittsburgh, PA 15222 Counsel for Appellee

OPINION OF THE COURT

HARDIMAN, Circuit Judge.

This appeal arises under the copyright laws of the United States. The parties are competitors in the fireworks business. Appellee Pyrotechnics Management, LLC (Pyrotechnics) sued Appellant fireTEK under 17 U.S.C. § 106, claiming fireTEK violated Pyrotechnics’s copyright in the communication protocol it uses to control fireworks displays. Pyrotechnics sought, and received, a preliminary injunction preventing fireTEK from distributing its allegedly infringing product. fireTEK contends here, as it did in the District Court, that Pyrotechnics’s copyright in the protocol is invalid. We agree, so we will vacate the preliminary injunction entered by

the District Court and remand the case for the District Court to dismiss Pyrotechnics’s copyright claim.

I

A Pennsylvania company, Pyrotechnics manufactures and sells hardware and software that control fireworks displays under the “FireOne” brand. fireTEK App. 71–72. The FireOne system includes two main devices: a control panel and a field module. The control panel accepts user input, creates digital messages, and converts the digital messages to analog signals that it sends to a field module over two wires. On receipt of the analog signal, the field module decodes the message and performs the assigned task—for example, the message may instruct the field module to ignite a particular firework. Sometimes the field module sends a response message to the control panel. Since around 1995, Pyrotechnics’s control panels and field modules have used a proprietary protocol to communicate with each other. Pyrotechnics developed the protocol to enable the FireOne system to precisely—and safely—control complex fireworks displays, which can involve tens or hundreds of field modules.

Pyrotechnics’s Romanian competitor, fireTEK, reverseengineered Pyrotechnics’s hardware to learn its communication protocol. In 2018, fireTEK developed a router that could send analog signals to Pyrotechnics’s field module just like those sent by Pyrotechnics’s control panel. In early 2019, fireTEK began promoting its router as a replacement for Pyrotechnics’s control panel. Pyrotechnics responded by sending fireTEK a letter claiming the router infringed Pyrotechnics’s copyright in its communication protocol.

In June 2019, Pyrotechnics filed a seven-page document describing its protocol (the Deposit Copy) with the United States Copyright Office and received from the Office a Certificate of Registration. Though the Certificate indicates the copyrighted work is “text,” fireTEK App. 60, Pyrotechnics asserts that it submitted the Deposit Copy as “identifying material” for its protocol under 37 C.F.R. § 202.20(c)(2)(viii) (permitting submission of specified representative “identifying material” for certain “[m]achine-readable” electronic works). Pyrotechnics claims the protocol was first published when it was embedded inside its hardware in 1995.

With its Certificate of Registration in hand, Pyrotechnics sued fireTEK—and its United States distributor, XFX Pyrotechnics, LLC—for copyright infringement, tortious interference with prospective contractual relations, and unfair competition. See 17 U.S.C. § 411(a). Shortly after filing its complaint, Pyrotechnics moved for a preliminary injunction prohibiting fireTEK and XFX from selling or distributing fireTEK’s router.

After hearing testimony from the principal of each company and Pyrotechnics’s electrical engineering expert witness, the District Court granted Pyrotechnics’s motion and enjoined fireTEK and XFX. Pyrotechnics Mgmt., Inc. v. XFX Pyrotechnics LLC, 2021 WL 925812, at *17 (W.D. Pa. Mar. 11, 2021). The District Court held that Pyrotechnics was likely to prevail on its infringement claim because the company’s “command codes” (a part of the communication protocol) are protected by copyright and fireTEK’s router infringed that copyright. Id. at *12, *15. The District Court rejected fireTEK’s contentions that (1) the protocol was not copyrightable, (2) Pyrotechnics had not properly registered its protocol, (3) the merger and scènes à faire doctrines barred

extending protection to the protocol, and (4) fireTEK’s implementation of the protocol was fair use. 1 Id. at *8 & n.7, *9–11, *13–15. fireTEK timely appealed. 2

II

The District Court had jurisdiction over Pyrotechnics’s copyright infringement claim under 28 U.S.C. §§ 1331 and 1338. We have jurisdiction over this interlocutory appeal under 28 U.S.C. § 1292(a)(1). We review findings of fact for clear error, legal conclusions de novo, and the Court’s decision to grant the preliminary injunction for abuse of discretion. Osorio-Martinez v. Att’y Gen., 893 F.3d 153, 161 (3d Cir. 2018) (citation omitted).

In this appeal, fireTEK challenges only one element supporting the preliminary injunction: whether Pyrotechnics has shown a likelihood of success on its copyright infringement claim. See Dam Things From Den. v. Russ Berrie & Co., 290 F.3d 548, 556 (3d Cir. 2002). To succeed, Pyrotechnics must show that (1) it owns a valid copyright and (2) fireTEK copied protected, original elements without authorization. 3 See Dun &

1 fireTEK did not challenge the District Court’s conclusions on scènes à faire or fair use, so we do not address those issues. 2 XFX also appealed the preliminary injunction order, but its appeal was dismissed by agreement of the parties after Pyrotechnics and XFX settled. See Fed. R. App. P. 42(b). 3 Because Pyrotechnics claims that its copyrighted materials were first published in a product nearly 25 years before it registered its Deposit Copy, the presumption of validity that

Bradstreet Software Svcs., Inc. v. Grace Consulting, Inc., 307 F.3d 197, 206 (3d Cir. 2002).

III

Pyrotechnics’s communication protocol and the Deposit Copy submitted to the Copyright Office are central to resolving this dispute, so we describe both in some detail. According to the Deposit Copy, the protocol includes three components: (1) a custom digital message format; (2) specified individual messages that conform to the format and communicate specific information; and (3) a transmission scheme that describes how an individual digital message is converted into an analog signal that can be sent over the wires that connect the control panel and field module.

The Deposit Copy states that each digital message must conform to a twelve-byte format. A byte is a series of eight bits, where each bit is a digital 0 or 1, so each twelve-byte digital message is a series of ninety-six bits. The first two bytes of each message are designated “header bytes” that contain synchronization information. The last byte of each message is a “cyclic redundancy check,” whose value is calculated based on the values of the other eleven bytes. The cyclic redundancy check byte is used to ensure there are no errors in the transmitted message. Pyrotechnics acknowledges that using synchronization header bytes and cyclic redundancy check bytes are standard communication practices. The remaining

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Pyrotechnics Management Inc v. XFX Pyrotechnics LLC, 38 F.4th 331 (3d Cir. 2022).

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