Simplexgrinnell Lp v. Integrated Systems & Power, Inc.

642 F. Supp. 2d 206, 2009 U.S. Dist. LEXIS 64684, 2009 WL 2223692
District Court, S.D. New York·Decided July 27, 2009·No. 07 Civ. 2700 (GEL)·Published·Cited by 174 cases

Opinion

OPINION AND ORDER

GERARD E. LYNCH, District Judge.

This action primarily revolves around plaintiff SimplexGrinnell LP’s allegations of copyright infringement by defendant Integrated Systems & Power, Inc. (“ISPI”) through the unauthorized use of SimplexGrinneU’s 4100 and 4100U fire alarm system panel programming software (the “Programmers”). Following a bench trial, this Court issued an Opinion and Order setting forth its Findings of Facts and Conclusions of Law (the “Opinion”), which, inter alia, granted, in part, SimplexGrinnell’s request for a permanent injunction against ISPI’s infringement of the Programmers. ,SimplexGrinnell v. Integrated Systems & Power, Inc., 642 F.Supp.2d 167, at Conclusions ¶¶ 35-39 (S.D.N.Y.2009). 1 Interpreting the Bankruptcy Stipulation that granted ISPI a limited license to use the Programmers, the Court concluded that “ISPI infringes upon SimplexGrinnell’s copyright when it uses the Programmers for new customers, but not when servicing customers on the ISPI Customer List.” Id. Conclusions ¶ 29. 2 The injunction contemplated, however, did not extend quite so far as this conclusion would on first glance indicate.

As explained in the Opinion, there are multiple revisions and versions of the Programmers. Specifically, the Programmers are divided into revisions 8, 9, 10, 11, and 12, and each revision is in turn further subdivided each into a number of versions. Id. Findings ¶¶ 19-20. So, for example, versions 10.01, 10.50, 10.60, 10.61, 10.60.99 and 10.61.01 are all part of revision 10. Id. Findings ¶ 20. In assessing SimplexGrinnell’s claim of copyright infringement, the Court noted that “[ajlthough the parties presented this issue in terms of SimplexGrinnell’s copyright in the various revisions of the Programmer, each new version constitutes a separate derivative work, and thus the issue must be approached” at the version level. Id. Conclusions ¶ 5 (internal citation omitted). In light of Second Circuit precedent establishing “that a court does not have jurisdiction to entertain a claim of infringement in an unregistered derivative work, even if that claim is cou *209 pled with a claim of infringement in the validly registered original work,” id. Conclusions ¶ 4, citing In re Literary Works in Elec. Databases Copyright Litig., 509 F.3d 116, 122-23 (2d Cir.2007), the Court concluded that it was “without jurisdiction to entertain claims based on alleged infringement of any” non-registered versions of the software. Id. Conclusions ¶ 6. Accordingly, although SimplexGrinnell sought to enjoin ISPI’s unauthorized use of revisions 8, 9, 10, 11, and 12, the injunction was limited to the only four individual versions of the Programmer properly registered: versions 8.04, 9.02, 10.01 and 11.01. Id. Findings ¶¶ 34-30; id. Conclusions ¶¶ 6, 38. At the same time, the Court also enjoined ISPI’s related misappropriation of SimplexGrinnell’s trade secrets through the use of its software keys (or “dongles”). Id. Conclusions ¶ 50. As a dongle is necessary to access the Programmers, id. Findings ¶ 64, an injunction against unauthorized use of the dongles has the same practical effect as an injunction against unauthorized use of the Programmers directly. Id. Conclusions ¶¶ 48-50.

SimplexGrinnell now moves for reconsideration of the Court’s refusal to directly enjoin ISPI’s use of the non-registered versions of the Programmers. SimplexGrinnell’s argument is two-fold and made in the alternative. First, it claims that each version of the software is not a derivative work and, as a result, it contends that the registration of one version within each revision is sufficient to confer subject matter jurisdiction over the entire revision. Alternatively, it argues that even if each version is a separate derivative work, the unregistered versions contain much of the same computer code as contained in the registered versions, and thus, infringement in the unregistered versions becomes indirectly actionable.

Neither argument was previously articulated. Indeed, prior to making this motion, SimplexGrinnell did not address the jurisdictional limitations imposed by the Copyright Act’s registration requirement, and, in accordance with its general revision-level approach, contended simply that its registration of the four versions established valid ownership (which is distinct from registration) of the copyright in the various Programmers under consideration. (E.g., P. Post-Trial Mem. 9.) Nevertheless, the arguments belatedly presented will be explored to more fully flesh out the underlying copyright analysis, as — reflective of the parties’ treatment — the Opinion glossed over the issued now raised. As will be seen below, although the legal arguments SimplexGrinnell advances have some merit, SimplexGrinneU’s motion for reconsideration must be denied in substantial part because the factual evidence is insufficient to achieve its desired result. These same factual insufficiencies, however, warrant amending the Court’s conclusion that each version of the Programmer is a separate derivative work — not, as SimplexGrinnell urges, to reflect that they are not separate derivative works, but rather to state merely that they may each be separate derivative works. Accordingly, for the reasons that follow, SimplexGrinnell’s motion for reconsideration will be granted to the extent set forth below.

DISCUSSION

I. Standard For Reconsideration

Local Civil Rule 6.3 provides that a party may submit a motion for reconsideration “setting forth concisely the matters or controlling decisions which counsel believes the court has overlooked.” Loe. Civ. R. 6.3. 3 Courts have repeatedly made *210 clear that the availability of “[a] motion for reconsideration is not an invitation to parties to ‘treat the court’s initial decision as the opening of a dialogue in which that party may then use such a motion to advance new theories or adduce new evidence in response to the court’s ruling.’ ” Patterson v. U.S., No. 04 Civ. 3170, 2006 WL 2067036, at *2 (S.D.N.Y. Jul. 26, 2006), quoting de los Santos v. Fingerson, No. 97 Civ. 3972, 1998 WL 788781, at *1 (S.D.N.Y. Nov. 12, 1998); see also Sequa Corp. v. GBJ Corp., 156 F.3d 136, 144 (2d Cir.1998). Thus, a motion for reconsideration is not an opportunity to present “new facts, issues or arguments not previously presented to the court.” Maalouf v. Salomon Smith Barney, Inc., No. 02 Civ. 4770, 2004 WL 2782876, at *1 (S.D.N.Y. Dec. 3, 2004).

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Simplexgrinnell Lp v. Integrated Systems & Power, Inc., 642 F. Supp. 2d 206, 2009 U.S. Dist. LEXIS 64684, 2009 WL 2223692 (S.D.N.Y. 2009).

642 F. Supp. 2d 206 (Simplexgrinnell Lp v. Integrated Systems & Power, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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