Religious Technology Center v. F.A.C.T.NET, Inc.

901 F. Supp. 1528, 1995 U.S. Dist. LEXIS 14838, 1995 WL 590466
District Court, D. Colorado·Decided October 3, 1995·No. Civ. A. 95-K-2143·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER ON VARIOUS MOTIONS

KANE, Senior District Judge.

On August 21, 1995 Religious Technology Center (“RTC”), a California non-profit corporation, filed a verified complaint against Lawrence Wollersheim, Robert Penny and F.A.C.T.NET, Inc. (“FACTNET”) for injunc-tive relief and damages for copyright infringement (17 U.S.C. § 501) and trade secrets misappropriation (Colo.Rev.Stat. § 7-74-102). On October 2, 1995, RTC and an additional party, Bridge Publications, Inc., filed an amended complaint, but this event has no effect on the pending motions.

Jurisdiction is based on 28 U.S.C. §§ 1331 and 1338(a) and (b) in that this is an action for copyright infringement under 17 U.S.C. § 501. Supplemental jurisdiction under 28 U.S.C. § 1367 is asserted over the trade secrets misappropriation claim, which RTC alleges arises out of the same transaction and occurrences.

*1529 I. Background.

On August 21,1995, Judge Babcock, ruling on ex parte motions, granted a temporary-restraining order against Defendants. His order restrained Defendants from the unauthorized copying, use or reproduction of the Works identified in Exhibit “A” to the complaint or any other part of the works that are part of the Advanced Technology, in particular the copying into “any computer data base, information service, storage facility, archives, or other computerized network or facility.” The order further restrained the destruction or concealing by Defendants of such Works in their possession. It also required RTC to file a bond in the amount of $10,000 with the court forthwith. Judge Babcock set a hearing for a preliminary injunction before me due to his being unavailable on that date.

Judge Babcock ordered Defendants to deliver the infringing articles within their possession and control into the custody of RTC’s counsel. In this regard, he issued a writ of seizure and ordered a portion of the court file sealed until execution of the writ of seizure.

On August 22, 1995, extensive materials, including computer equipment, computer software and voluminous documents were seized from Defendants’ premises pursuant to the writ. They were placed in the custody of RTC’s counsel who proceeded to search for allegedly infringing materials.

The preliminary injunction hearing took place before me on September 8, 11, and 12, 1995. At the termination thereof, I issued an oral ruling. I denied RTC’s request for a preliminary injunction and ordered RTC to return and restore to the Defendants all seized materials. I ordered Defendants to maintain the status quo as to the possession of all copyrighted materials at issue in the case and restricted each of Defendants to making only fair use of the materials. I reserved my right to clarify my oral order with a written opinion. I denied RTC’s request for a stay pending its appeal of the order.

On September 13, 1995, RTC filed an emergency motion with the United States Court of Appeals for the Tenth Circuit for a stay pending appeal of the order ^denying preliminary injunction and ordering-return of seized materials. On that day, the Tenth Circuit temporarily stayed the September 12, 1995 order and directed Defendants to respond to the emergency motion by noon on Friday September 15, 1995.

On September 15, 1995, I clarified my oral order with a written memorandum opinion and order. I memorialized my oral orders denying RTC’s motion for preliminary injunction; requiring RTC to return and restore to Defendants immediately and at RTC’s expense all seized materials in the condition they were when taken and to the precise places from which they were taken; ordering Defendants to maintain the status quo as to their possession of all copyrighted materials at issue in this ease and restricting them to making only fair use thereof; and prohibiting Defendants from making any additional-copies of the materials or transferring them in any manner or publicizing them other than in the context of fair use. (Mem. Op. & Order at 18.)

On September 15 and September 18, 1995, RTC filed supplemental memoranda in support of its motion for stay of the order pending appeal. On September 18, 1995, the Tenth Circuit granted RTC’s motion to place Exhibit 8 of Defendants’ appendix under seal but dissolved the temporary stay entered on September 13,1995 and denied RTC’s motion for stay pending appeal.

RTC filed an application for a stay of my order before the United States Supreme Court, Justice Breyer, Circuit Justice for the Tenth Circuit Court of Appeals. On September 20, 1995, Justice Breyer denied the request for a stay. On September 21, 1995, RTC renewed its application to the Supreme Court and requested it be addressed to Justice Souter. (To my knowledge no action on this application has occurred.)

On September 22, 1995, RTC’s counsel agreed the seized materials would be returned on September 25, 1995 at 2:00 p.m. Defendants demanded that all copies made of seized materials be returned as well. At that scheduled date and time, RTC’s counsel, two RTC representatives and two of its computer experts appeared at the offices of Defendants’ counsel.

*1530 RTC maintains it tendered to Defendants’ counsel the remaining 1 computerized equipment and items in its possession with the exception of:

a. One floppy disk which contained Advanced Technology (“AT”) materials. RTC asserts the disk has been copied and a disk with the AT document removed has been given to Defendants.

b. Two computer tapes which contained AT materials. RTC asserts exact duplicate tapes have been given to Defendants with only the AT materials deleted.

c. One computer CD on which AT materials were found. RTC asserts the CD has not been copied as a duplicate CD cannot be made.

d. The original hard drives of two computers which contained AT materials. RTC asserts an identical hard drive has been secured for Wollersheim’s hard drive, and an equivalent for Penny’s. It maintains the entirety of the original two hard drives has been copied into the duplicate hard drives which have been installed in their computers and returned to them with only the AT materials deleted.

On September 25, 1995, RTC filed Plaintiffs Motion for an Order Concerning Full Compliance with the Court’s Order of September 15, 1995, Directing Return of Seized Materials and for an Order on New Issue Regarding Relief from Violation of First Amendment Ecclesiastical Rights. On September 26, 1995, RTC filed a Motion for Leave to Deposit Disputed Computer Media with Court under Seal.

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Religious Technology Center v. F.A.C.T.NET, Inc., 901 F. Supp. 1528, 1995 U.S. Dist. LEXIS 14838, 1995 WL 590466 (D. Colo. 1995).

901 F. Supp. 1528 (Religious Technology Center v. F.A.C.T.NET, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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