Sarl Louis Feraud International v. Viewfinder, Inc.

489 F.3d 474, 35 Media L. Rep. (BNA) 1879, 83 U.S.P.Q. 2d (BNA) 1105, 2007 U.S. App. LEXIS 12926, 2007 WL 1598057
CourtCourt of Appeals for the Second Circuit
DecidedJune 5, 2007
DocketDocket 05-5927-CV
StatusPublished
Cited by11 cases

This text of 489 F.3d 474 (Sarl Louis Feraud International v. Viewfinder, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sarl Louis Feraud International v. Viewfinder, Inc., 489 F.3d 474, 35 Media L. Rep. (BNA) 1879, 83 U.S.P.Q. 2d (BNA) 1105, 2007 U.S. App. LEXIS 12926, 2007 WL 1598057 (2d Cir. 2007).

Opinion

POOLER, Circuit Judge.

Plaintiffs-appellants Sari Louis Feraud International (“Feraud”) and S.A. Pierre Balmain (“Balmain”) appeal from the September 29, 2005, order of the United States District Court for the Southern District of New York (Lynch, J.) dismissing plaintiffs’ action to enforce two judgments issued by the Tribunal de grande instance de Paris (“the French Judgments”) against defendant-appellee Viewfinder, Inc. (“Viewfinder”). Plaintiffs challenge the district court’s conclusion that enforcement of the French Judgments would be repugnant to the public policy of New York under N.Y. C.P.L.R. § 5304(b)(4) because it would violate Viewfinder’s First Amendment rights. Because the district court did not conduct the full analysis necessary to reach this conclusion, we vacate its order and remand for further proceedings consistent with this opinion.

BACKGROUND

Plaintiffs-appellants Feraud and Bal-main are French corporations that design high-fashion clothing and other items for women. Defendant-appellee Viewfinder is a Delaware corporation with a principal place of business in New York. Viewfinder operates a website called “firstView.com,” on which it posts photographs of fashion shows held by designers around the world, including photographs of plaintiffs’ fashion shows. Donald Ashby, the president of Viewfinder, is a professional fashion photographer. Viewfinder styles itself as an Internet fashion magazine akin to the online version of Vogue. The firstView website contains both photographs of the current season’s fashions, which may be viewed only upon subscription and payment of a fee, and photographs of past collections, which are available for free. An annual subscription to firstView costs $999. See http://vnvw.firstview.com/ subscribeJ.nfo.php (last visited June 1, 2007). Users can also view the content for *477 one hour for $5.95. See http://www. firstview.com/subscribe.php (last visited June 1, 2007). Viewfinder does not sell clothing or designs.

In January 2001, Feraud and Balmain, along with several other design houses, each filed suit against Viewfinder in the Tribunal de grande instance de Paris seeking money damages from Viewfinder for alleged unauthorized use of their intellectual property and unfair competition. These civil actions stemmed from Viewfinder displaying photographs of the designers’ fashion shows, which revealed designs from their upcoming collection, on the firstView.com website. Viewfinder was served in New York in accordance with the terms of the Hague Convention on the Service of Judicial and Extrajudicial Documents in Civil or Commercial Matters. Viewfinder failed to respond to the complaints, however, and therefore, on May 2, 2001, the French court issued default judgment against Viewfinder. The French court found that plaintiffs’ “ready-to-wear” and “haute couture” collections from 1996-2001 were available on the firstView.com website. The court further found that Viewfinder’s posting of these photographs of plaintiffs’ designs was “without the necessary authorization” and thus “constitute[d] counterfeit and violation of royalties pursuant to articles L 716-1 and L 122-4 of the Intellectual [Pjroperty Code.” The court also found with respect to each of the plaintiffs that Viewfinder had committed “parasitism” under French law because it had “take[n] advantage of plaintiffs reputation and commercial efforts creating confusion between the two companies.” The French court ordered Viewfinder to remove the offending photographs, and awarded damages of 500,000 francs for each plaintiff, costs of the action, and a fine (“astreinte”) of 50,000 francs a day for each day Viewfinder failed to comply with the judgment. 1

On October 6, 2003, Viewfinder appealed these judgments to the Cour d’appel de Paris, but subsequently withdrew its appeal without opposition after plaintiffs filed their brief. The French appellate court accordingly dismissed the appeal in February 2004. In December 2004, plaintiffs filed separate complaints in the United States District Court for the Southern District of New York to enforce the French Judgments. Plaintiffs sought enforcement under New York’s Uniform Foreign Money Judgment Recognition Act, which provides that, subject to certain exceptions, foreign judgments that are “final, conclusive and enforceable” in the country where rendered are deemed conclusive between the parties and enforceable by U.S. courts. N.Y. C.P.L.R. §§ 5302, 5303. The district court consolidated these actions and also granted plaintiffs’ request for an order of attachment. Federal jurisdiction is based on diversity of citizenship.

On January 18, 2005, Viewfinder filed a motion to dismiss or, in the alternative, a motion for summary judgment and a motion to vacate the attachment order. Viewfinder raised a variety of arguments in its motion papers, one of which was found meritorious by the district court. 2 The district court found that enforcing the French Judgments would be repugnant to *478 the public policy of New York because it would violate Viewfinder’s First Amendment rights. See Sarl Louis Feraud Int’l v. Viewfinder Inc., 406 F.Supp.2d 274, 281 (S.D.N.Y.2005). Specifically, the district court found that the fashion shows at issue were public events and Viewfinder had a First Amendment right to publish the photographs at issue. Id. at 282-83. Thus, as the district court concluded, the “First Amendment simply does not permit plaintiffs to stage public events in which the general public has a considerable interest, and then control the way in which information about those events is disseminated in the mass media.” Id. at 285. The district court also stated that to the extent that plaintiffs’ designs were protected by copyright, “the copyright law similarly provides, as a matter of First Amendment necessity, a ‘fair use’ exception for the publication of newsworthy matters.” Id. at 284. Based on its conclusion that enforcing the judgment would impinge upon Viewfinder’s free speech rights, the district court dismissed the action and vacated the order of attachment. Id. at 285. Plaintiffs filed a timely notice of appeal.

DISCUSSION

The question presented by this appeal is whether the district court properly found that the French Judgments were unenforceable under New York law. In order to address this question, we begin with the language of the relevant state statute: “A foreign country judgment need not be recognized if ... the cause of action on which the judgment is based is repugnant to the public policy of this state.” N.Y. C.P.L.R. § 5304(b)(4) (emphasis added). As the plain language of the statute makes clear, the first step in analyzing whether a judgment is unenforceable under Section 5304(b)(4) is to identify the “cause of action on which the judgment is based.” The district court never identified the French statutes that underlie the judgments at issue in this case. Nor does Viewfinder do so in its submission.

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Bluebook (online)
489 F.3d 474, 35 Media L. Rep. (BNA) 1879, 83 U.S.P.Q. 2d (BNA) 1105, 2007 U.S. App. LEXIS 12926, 2007 WL 1598057, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sarl-louis-feraud-international-v-viewfinder-inc-ca2-2007.