Sensory Path Inc. v. Fit and Fun Playscapes LLC

District Court, N.D. Mississippi·Decided November 17, 2022·No. 3:19-cv-00219·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI OXFORD DIVISION SENSORY PATH INC. PLAINTIFF Vv. NO; 3:19CV219-GHD-RP LEAD CASE FIT AND FUN PLAYSCAPES LLC, et al. DEFENDANTS CONSOLIDATED WITH FIT AND FUN PLAYSCAPES LLC PLAINTIFF V. NO: 3:22CV32-GHD-RP SENSORY PATH INC., et al. DEFENDANTS

MEMORANDUM OPINION Before the Court is Plaintiff and Counter-Defendants' Motion for Summary Judgment as to copyright infringement. [232]. Defendants and Counter-Claimant Fit and Fun Playscapes, LLC (“Fit and Fun”) and Pamela Gunther have responded in opposition to the Motion for Summary Judgment [232] of The Sensory Path, Inc., Holly Clay, and Madison Barker (collectively “Sensory Path”). Upon due consideration, for the reasons set forth herein, the Court hereby grants in part and denies in part Sensory Path’s motion for summary judgment. Factual Background Sensory Path is a corporation organized and existing under the laws of the state of Mississippi and has its principal place of business at 198 Woodlawn Drive, Oxford, Mississippi 38655. Holly Clay is the founder of Sensory Path, Inc. and Clay began developing her “Sensory Path” product in 2007 which aimed to reduce sensory stimulation by using a child’s movements in a coordinated pattern to target key areas of the neurological system that the child experiences during the learning process. These paths were created with viny! stickers or painted depending on

their placement. Clay began using the domain “thesensorypath.com” in 2018 to market her products. Fit and Fun is a limited liability company organized and existing under the laws of the state of New York with Pamela Gunther as the founder and president. Fit and Fun was founded in 2011 and sells interactive playscapes which include reusable stencils, paint kits, indoor adhesive stickers, and roll-out games, On August 22, 2019, Fit and Fun sent a cease-and-desist letter to Sensory Path Inc. alleging that Sensory Path was violating unfair competition laws and infringing on Fit and Fun’s copyrights,

Fit and Fun sent a second cease-and-desist letter approximately a month later on September 25, 2019, After receiving the cease-and-desist letters, Sensory Path initiated a suit against Fit and Fun alleging trademark infringement. Fit and Fun then filed suit against Sensory Path for copyright infringement, false designation of origin and false representation of fact, and false advertising. Standard ,

Summary judgment “should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine dispute as to any material fact and that the movant is entitled to judgment as a matter of law.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S. Ct. 2548, 91 L. Ed. 2d 265 (1986) (quoting Fed. R. Civ. P. 56(a)). The rule “mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a sufficient showing to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” □□□ at 322, 106 8, Ct, 2548, The party moving for summary judgment bears the initial responsibility of informing the Court of the basis for its motion and identifying those portions of the record it believes demonstrate

the absence of a genuine dispute of material fact. See id, “An issue of fact is material only if ‘its resolution could affect the outcome of the action.’” Manning v. Chevron Chem. Co., LIC, 332 F.3d 874, 877 (Sth Cir. 2003) (quoting Wyatt v. Hunt Plywood Co., 297 F.3d 405, 408 (Sth Cir. 2002)), The burden then shifts to the nonmovant to “go beyond the pleadings and by . . . affidavits, or by the depositions, answers to interrogatories, and admissions on file, designate specific facts showing that there is a genuine issue for trial.” Celotex, 477 U.S. at 324, 106 8. Ct. 2548 (internal quotation marks omitted.); Littlefield v. Forney Indep. Sch Dist., 268 F.3d 275, 282 (Sth Cir. 2001); Willis vy. Roche Biomedical Labs., Inc., 61 F.3d 313, 315 (Sth Cir, 1995). The Court “resolve[s} factual controversies in favor of the nonmoving party, but only where there is an actual controversy, that is, when both parties have submitted evidence of contradictory facts.” Antoine v. First Student, Inc., 713 F.3d 824, 830 (Sth Cir. 2013) (quoting Boudreaux v. Swift Transp. Co., Inc., 402 F.3d 536, 540 (Sth Cir. 2005)). “[T]he nonmoving party ‘cannot defeat summary judgment with conclusory allegations, unsubstantiated assertions, or only a scintilla of evidence.” Hathaway v. Bazany, 507 F.3d 312, 319 (Sth Cir. 2007) (quoting Turner y. Baylor Richardson Medical Center, 476 F.3d 337, 343 (Sth Cir, 2007)). Discussion Presently at issue are product designs used by Sensory Path and Fit and Fun’s allegation that these designs infringe on copyrights held by Fit and Fun. Fit and Fun alleges that Sensory Path’s “Numbered Daisy Element,” floating log element, and “Dilly the Dragon” are unauthorized derivatives of Fit and Fun’s Daisy Hopscotch Reusable Stencil design, Log Reusable Stencil design and layout, and Alphabet Snake Reusable Stencil. A claim for copyright infringement has

three elements: “(1) ownership of a valid copyright; (2) factual copying; and (3) substantial similarity.” Armour v. Knowles, 512 F.3d 147, 152 (Sth Cir. 2007), 1. Ownership of Copyrights — Authorship and Assignment Sensory Path first argues in its Motion for Summary Judgment that Fit and Fun lacks standing as Fit and Fun has failed to provide any evidence showing ownership of the alleged copyrighted works. Specifically, Sensory Path claims that two of the designs at issue were not authored by Fit and Fun or its enployees but were instead created by an independent contractor. Further, Sensory Path claims that Fit and Fun lacked ownership of one of the copyrights when the suit was initiated, For the Daisy Hopscotch and Log designs, Sensory Path asserts that Meghan Spratt was the creator of these works as an independent contractor who did not assign the copyright to Fit and Fun, thus these copyright claims should be dismissed for lack of standing. Copyright ownership “vests initially in the author or authors of the work[,]” and “the author is the party who actually creates the work, that is, the person who translates an idea into a fixed, tangible expression.” 17 US.C. § 201(a), Community for Creative Non—Violence v. Reid, 490 U.S. 730, 737, 109 S.Ct. 2166, 2171 (1989). Sensory Path asserts that Meghan Spratt fixed the ideas of the Daisy Hopscotch and Log designs into a tangible expression, claiming that the evidence shows Meghan Spratt took an idea of the designs and created the final design with a computer drawing. Fit and Fun alternatively asserts that Meghan Spratt was given the designs, not just ideas, and then drew those designs on the computer.

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Sensory Path Inc. v. Fit and Fun Playscapes LLC, (N.D. Miss. 2022).

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