RT Computer Graphics, Inc. v. United States

44 Fed. Cl. 747, 52 U.S.P.Q. 2d (BNA) 1436, 1999 U.S. Claims LEXIS 224, 1999 WL 744433
CourtUnited States Court of Federal Claims
DecidedSeptember 22, 1999
DocketNo. 97-476C
StatusPublished
Cited by8 cases

This text of 44 Fed. Cl. 747 (RT Computer Graphics, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Federal Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
RT Computer Graphics, Inc. v. United States, 44 Fed. Cl. 747, 52 U.S.P.Q. 2d (BNA) 1436, 1999 U.S. Claims LEXIS 224, 1999 WL 744433 (uscfc 1999).

Opinion

OPINION

HORN, Judge.

The above-captioned case comes before the court on the parties’ cross-motions for summary judgment on the issue of copyright infringement. According to the plaintiff, the defendant, the United States Postal Service, failed to give credit to plaintiff, RT Computer Graphics, Inc., when defendant used plaintiff’s copyrighted electronic clip art border designs in defendant’s American Indian Dances stamp series and related products. Plaintiff alleges that an authorship credit requirement in the parties’ licensing agreement for the related products was a condition precedent, and that plaintiffs consent for the use of the copyrighted material was not given because the condition precedent was not met by the Postal Service. Alternatively, RT Graphics argues that the failure to provide credit was a material breach of the essential terms of the licensing agreement, and the breach entitled plaintiff to rescind the contract. Under both theories, plaintiff contends that it is entitled to summary judgment of copyright infringement by the Postal Service. Defendant, however, counters that it is entitled to a summary judgment of non-infringement because plaintiff consented to the use of the copyrighted designs through the licensing agreements, and “[wjhere a work is reproduced with the consent of the copyright owner, that consent is a complete defense to a claim that the- reproduction infringes the copyright.”

After careful consideration of the record, the parties’ filings, and the relevant law, the court holds that the credit requirement was not a condition precedent to plaintiffs consent to use the copyrighted material, and that the defendant did not repudiate the valid licensing agreements or act in a manner which would have indicated a repudiation of those agreements. Thus, as defendant at all times had plaintiff’s consent to use the copyrighted material, summary judgment of non-infringement of plaintiffs copyrights is appropriate.

FINDINGS OF FACT

The plaintiff, RT Computer Graphics, Inc. (“RT Graphics”), is a corporation organized under the laws of the State of New Mexico, with its principal place of business in Rio Rancho, New Mexico. RT Graphics is a designer, manufacturer and distributor of computer software and graphics collections, and is the holder of federally-registered copyrights in two collections of electronic clip art called the Santa Fe Collection and the [749]*749Plains Collection.1 These collections contain images of various southwestern-, midwestern and/or Native American-styled border designs. According to the plaintiff, it “extensively uses the [border designs] and components thereof in promoting and advertising its software products, and the [border designs] are widely known and associated with RT Graphics.”

In August of 1995, Jana Belsky, a senior photo researcher at PhotoAssist, Inc., on behalf of the United States Postal Service, spoke via telephone with Paul D. Gibson, an employee of RT Graphics. Ms. Belsky asked Mr. Gibson for permission to use various border designs from the Santa Fe and Plains Collections in postage stamps which would be issued in 1996 and called the “American Indian Dances” stamp series. According to the Joint Stipulated Facts submitted by both parties to the court, “Ms. Belsky and Mr. Gibson agreed that if the designs were used by the U.S. Postal Service, no credit to RT Graphics would be planted on the stamps.”

On August 2, 1995, Ms. Belsky sent Mr. Gibson a form calling for a signature by RT Graphics to corroborate their agreement. Ms. Belsky had signed the form before she transmitted it to the plaintiff. The form states:

This document is to confirm that RT Graphics, Inc. has given permission to the United States Postal Service to use borders selected from the SFC [Santa Fe] and PLC [Plains Collections] Mad-EPS in a stamp series to be issued in 1996. The material is not copyrighted and there are no fees or royalties associated with the granting of this permission.

This document was never executed by RT Graphics, at least partly because it erroneously indicated that the border designs were not copyrighted. In response, the President of RT Graphics, Arthur B. Bernstein, wrote a letter to Ms. Belsky on August 15, 1995. The letter reads as follows:

I understand that the United States Postal Service is considering the use of one or more of our images or borders in a U.S. Postal Stamp Service series that will be issued in 1996. I can not think of a more profound affirmation of the work we do here. This is a great honor for us.
This document is to confirm that RT Computer Graphics, Inc. gives permission to the United States Postal Service to use images and/or borders selected from the Santa Fe Collection and the Plains Collection electronic clip art libraries in a stamp series to be issued in 1996. The material within these Collections is provided royalty free and there are no fees or royalties associated with the granting of this permission.
RT Computer Graphics, Inc. respectfully requests that should any artwork from these collections be considered or used, that copies of the design(s) be forwarded to RT Computer Graphics, Inc. as is timely and appropriate. If there is any literature that would be associated with the release of the stamp(s), we would of course be delighted to receive mention or credit.

In late December, 1995, Ms. Belsky called Mr. Bernstein and asked for permission to use the border designs in products related to the American Indian Dances stamp series. • Mr. Bernstein responded by sending a document entitled “Use Agreement” which was drafted and executed by Paul D. Gibson. The Use Agreement, with the exception of a date and signature from Mr. Gibson,2 contained only one three-sentence paragraph. It states:

This document is to confirm that RT Graphics, Inc. has given permission to the United States Postal Service to use its American Indian border designs in any philatelic products related to the American Indian Dance stamp series. There are no fees associated with the granting of this permission. RT Graphics, Inc. requires a credit in said materials.

[750]*750In June of 1996, the Postal Service introduced to the public the American Indian Dances stamp series along with related products. The related products included stationery sets, T-shirts, wrapping paper, cups, wall posters, a StampFolio (including a CD of Indian dance recordings), a Commemorative Panel with historical information and engravings, a pane of twenty commemorative stamps signed by artist Keith Birdsong, an unsigned pane of twenty commemorative stamps, and a First-Day Souvenir folder.3

Mr. Bernstein became aware that the products did not contain any credit to RT Graphics. On June 28, 1996, Mr. Bernstein called Ms. Belsky and discussed, among other issues, the lack of credit given to RT Graphics on any of the related products incorporating their copyrighted border designs. The moment she received his call, Ms. Belsky realized that credit to RT Graphics had been inadvertently omitted in the Stamp-Folio and First-Day Souvenir. At least twice in the next few weeks, Ms. Belsky tried unsuccessfully to reach a compromise with Mr. Bernstein that would compensate RT Graphics for the omission.

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44 Fed. Cl. 747, 52 U.S.P.Q. 2d (BNA) 1436, 1999 U.S. Claims LEXIS 224, 1999 WL 744433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rt-computer-graphics-inc-v-united-states-uscfc-1999.