Scholz Design, Inc. v. Sard Custom Homes, LLC

691 F.3d 182, 2012 WL 3329725
CourtCourt of Appeals for the Second Circuit
DecidedAugust 15, 2012
DocketDocket 11-3298
StatusPublished
Cited by36 cases

This text of 691 F.3d 182 (Scholz Design, Inc. v. Sard Custom Homes, LLC) 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
Scholz Design, Inc. v. Sard Custom Homes, LLC, 691 F.3d 182, 2012 WL 3329725 (2d Cir. 2012).

Opinion

SACK, Circuit Judge:

BACKGROUND

The plaintiff-appellant, Scholz Design, Inc. (“Scholz”), alleges that three front-elevation 1 architectural drawings of homes it designed in the late 1980s were copied and posted on various websites by the defendants in violation of Scholz’s copyrights. The plaintiff also makes related claims for breach of contract and violations of the Digital Millennium Copyright Act, 17 U.S.C. § 1201, et seq.

Scholz created technical drawings, or blueprints, for three homes — which it called the “Springvalley A,” “Wethersfield B,” and “Breckinridge A” — and submitted them to the Copyright Office in 1988 and 1989 together with the front elevation drawings that are the subject of this suit, each showing the appearance of the front of the houses surrounded by lawn, bushes, and trees. See Scholz Design, Inc. v. Sard Custom Homes, LLC, No. 11-3298, Joint Appendix (“J.A.”) at 73, 76, 87 (2d Cir. Oct. 11, 2011). 2 Scholz was granted registration of copyrights based on all these submissions.

In February 1992, Scholz and Sard Custom Homes (“Sard”) entered into an agreement (the “Builder Agreement I”) permitting Sard to construct homes using Scholz’s home plans, including these three designs. See Builder Agreement I at 1-2, J.A. 97-98. The three-year contract required Sard to pay Scholz $1 per square foot of each home constructed using its plans, up to a maximum of $50,000 a year. Id. at §§ 5, 9, 10. Scholz and Sard renewed the contract for another three-year term in 1995 (the “Builder Agreement II”). Builder Agreement II at 1-2, J.A. 100-101. Both agreements required that Sard not “copy or duplicate any of the [Scholz] materials nor ... [use them] in any manner to advertise or build a [Scholz Design] or derivative except under the terms and conditions of the agreement.” Builder Agreement I at 1; Builder Agreement II at 1.

Scholz alleges that, after the termination of Scholz’s agreement with Sard and in a manner not permitted by the agreement, Sard and co-defendant Prudential Connecticut Realty (“Prudential”) posted copies of Scholz’s copyrighted drawings of the *185 Springvalley and Wethersfield homes on two different websites to advertise Sard’s “ability” to build the homes. Am. Compl. ¶ 15. Scholz also alleges that Sard and co-defendant Coldwell Banker Residential Real Estate, Inc. (“Coldwell Banker”) copied Scholz’s copyrighted image of the Breckinridge design on Coldwell Banker’s website for the same unpermitted purpose. Scholz further alleges that Sard, Prudential, and Coldwell Banker “may have used, reproduced, displayed, distributed, marketed or advertised” those designs through other means in addition to the websites identified. Am. Compl. ¶¶ 18, 33.

In October 2010, Scholz brought suit against the three defendants in the United States District Court for the District of Connecticut. The February 1, 2011, amended complaint alleges two counts of copyright infringement, two violations of the Lanham Act, 15 U.S.C. § 1051 et seq., breach of contract, and violations of the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 1201 et seq. Am. Compl. ¶¶ 9-72.

The defendants moved to dismiss the complaint, arguing inter alia that the pictures “could not have been copyrighted as architectural works because, the copyrights having been granted in 1988 and 1989, they predate the [Architectural Works Copyright Protection Act (“AWC-PA”), Pub.L. No. 101-650, tit. VII (1990) ] and that the conceptual nature of these depictions means that they are not protected by Scholz’s copyright because they contain insufficient detail from which a building could be constructed.” Scholz Design, Inc. v. Sard Custom Homes, LLC, No.

3:10-cv-1681, 2011 WL 2899093, at *2, 2011 U.S. Dist. LEXIS 76663, at *6 (D.Conn. July 15, 2011). The district court (Janet Bond Arterton, Judge) agreed. The court, in its “Ruling on Motions to Dismiss,” reasoned that “copyright protection extends to the component images of architectural designs to the extent that those images allow a copier to construct the protected design,” and therefore “the copied images do not fulfill the intrinsic function of an architectural plan and thus the act of copying them does not violate any right protected by a copyright for architectural technical drawings.” Id. at *3, 2011 U.S. Dist. LEXIS 76663, at *9.

Because it concluded that the plaintiffs amended complaint did not state a claim for copyright infringement, the district court also granted defendants’ motion to dismiss claims alleging violations of the DMCA and breach of contract, which, in the district court’s view, required that the plaintiff have a valid copyright infringement claim. 3 Id. at *4, 2011 U.S. Dist. LEXIS 76663, at *14.

The plaintiff appeals.

DISCUSSION

I. Standard of Review

We review a district court’s grant of a motion to dismiss de novo, accepting all factual allegations in the complaint as true, and drawing all reasonable inferences in the plaintiffs favor. Flagler v. Trainor, 663 F.3d 543, 546 n. 2 (2d Cir.2011); Fed. R.Civ.P. 12(b)(6).

*186 II. Copyright Infringement

In order to demonstrate copyright infringement, a plaintiff must show ownership of a valid copyright and copying of the protectable elements of the copyrighted work. 4 See Medforms, Inc. v. Healthcare Mgmt. Solutions, Inc., 290 F.3d 98, 109 (2d Cir.2002). A certificate of copyright registration is prima facie evidence of ownership of a valid copyright, but the alleged infringer may rebut that presumption. MyWebGrocer, LLC v. Hometown Info, Inc., 375 F.3d 190, 192 (2d Cir.2004) (citing 17 U.S.C. § 410(c)). To qualify for copyright protection, a work must be original — -that is, it must be independently created by the author and possess “at least some minimal degree of creativity.” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340, 345, 111 S.Ct. 1282, 113 L.Ed.2d 358 (1991). The work need not be “particularly novel or unusual.” Mattel, Inc. v. Goldberger Doll Mfg. Co., 365 F.3d 133, 135 (2d Cir.2004).

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691 F.3d 182, 2012 WL 3329725, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scholz-design-inc-v-sard-custom-homes-llc-ca2-2012.