Specific Software Solutions, LLC v. Institute of Workcomp Advisors, LLC

615 F. Supp. 2d 708, 92 U.S.P.Q. 2d (BNA) 1208, 2009 U.S. Dist. LEXIS 42083, 2009 WL 1393331
CourtDistrict Court, M.D. Tennessee
DecidedMay 18, 2009
DocketCase 3:09-0112
StatusPublished
Cited by3 cases

This text of 615 F. Supp. 2d 708 (Specific Software Solutions, LLC v. Institute of Workcomp Advisors, LLC) is published on Counsel Stack Legal Research, covering District Court, M.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Specific Software Solutions, LLC v. Institute of Workcomp Advisors, LLC, 615 F. Supp. 2d 708, 92 U.S.P.Q. 2d (BNA) 1208, 2009 U.S. Dist. LEXIS 42083, 2009 WL 1393331 (M.D. Tenn. 2009).

Opinion

MEMORANDUM

ALETA A. TRAUGER, District Judge.

Pending before the court is a Motion to Dismiss (Docket No. 5) filed by defendant Institute of WorkComp Advisors (“the Institute”) to which the plaintiff, Specific Software Solutions (“Specific Software”) has responded (Docket No. 12). For the reasons discussed herein, this motion will be granted.

FACTUAL AND PROCEDURAL BACKGROUND

The plaintiff, Specific Software, is a Tennessee LLC that assists professionals in managing and understanding issues that regularly arise in the field of worker’s compensation. 1 Specific Software maintains a content-rich website that features topics and information of interest to professionals in the field of worker’s compensation. The defendant, the Institute, is a North Carolina LLC and is comprised of four members, namely, Preston Lee Diamond, Karla Epperson Diamond, Frank M. Pennachio, and Sherry Pennachio. The Institute performs a similar service to that performed by Specific Software and maintains training manuals and materials with information of interest to professionals in the field of worker’s compensation. The Institute also maintains a website with similar information.

The Institute and Specific Software have a history of working well together. Indeed, Specific Software created its website with some input from Mr. - Pennachio (of *710 the Institute) pursuant to a 2007 consulting agreement between Mr. Pennachio and Specific Software. Sometime after this agreement was signed, however, Mr. Diamond and Mr. Pennachio (both of the Institute) had a falling out, which negatively-affected the good working relationship between the Institute and Specific Software.

On November 12, 2008, on behalf of the Institute, Mr. Diamond wrote a cease-and-desist letter to Timothy Coomer (CEO of Specific Software), which alleged that Specific Software, primarily through its website, had generally infringed on the Institute’s copyrights. (Docket No. 1 Ex. C.) On November 20, 2008, Specific Software’s counsel responded, seeking specific examples of copyright infringement. (Docket No. 1 Ex. D.) In that letter, among other things, Specific Software’s counsel noted that its search of the records of the United States Copyright Office revealed that the Institute did not have any registered copyrights. (Id.)

On December 29, 2008, counsel for the Institute responded, stating that “registration of the copyright is not a precondition for the basic underlying protection. However, in order for a copyright owner to sue for infringement, it must register the copyright or file an application for registration, depending on the circuit in which the suit is filed.” (Docket No. 1 Ex. E.) This letter further advised Specific Software that the Institute had filed four copyright registration applications for “works created by employees of the Institute” and, while “the copyrights associated with those applications have not yet been registered, ... we anticipate registration shortly.” (Id.) The letter also advised that, if Specific Software sought specific examples of infringement, its representatives should sit down with Mr. Pennachio and compare the materials on Specific Software’s website with the Institute’s materials, which were in Mr. Pennachio’s possession. (Id.)

On January 12, 2009, after a discussion between Mr. Pennachio and representatives from Specific Software, Mr. Pennachio wrote Coomer a letter stating that Specific Software’s materials did not infringe on the Institute’s copyrights. (Docket No. 1 Ex. F.) On January 14, 2009, Specific Software’s counsel forwarded Mr. Pennachio’s letter to the Institute’s counsel (1) pointing out that a principal from the Institute had just written Specific Software a letter stating that there was no infringement and (2) arguing that, in light of this letter, this matter should be considered closed. (Docket No. 1 Ex. G.) In a January 21, 2009 response, the Institute’s counsel claimed that Mr. Pennachio was not correct, and counsel also claimed that the Institute had identified, through a review of Specific Software’s website, thirty-three specific examples of willful copyright infringement. (Docket No. 1 Ex. H.) The Institute threatened to take “appropriate legal action” if Specific Software did not remove the allegedly offending material from its website within ten days. (Id.)

On February 4, 2009, Specific Software filed this lawsuit asserting that the Institute had “threatened litigation against Specific Software based on unwarranted assertions that Specific Software has allegedly infringed the Institute’s copyrights.” (Docket No. 1 at 2.) Specific Software’s Complaint seeks multiple declaratory judgments, but all of these proposed judgments would find, for various potential reasons, that Specific Software’s materials did not infringe on copyrights held by the defendant. 2 (Id.) Indeed, Specific Software *711 seeks a judgment that it “does not infringe any of the Institute’s asserted copyrights” and that the copyrights at issue are invalid. (Id. at 6.) On March 24, 2009, the Institute moved to dismiss this case, arguing that, because its copyrights were not “registered,” this court does not have the power to hear this copyright infringement suit.

ANALYSIS

The defendant has moved to dismiss this declaratory judgment action, because, the defendant argues, the court cannot hear this matter because the copyrights at issue have not been “registered” by the U.S. Copyright Office. While the defendant captions its motion as a Federal Rule of Civil Procedure 12(b)(6) motion to dismiss for failure to state a claim upon which relief can be granted, other district courts in this circuit have indicated that, when the defendant seeks to dismiss a copyright infringement action because the copyrights at issue have not been registered, the proper vehicle is a Rule 12(b)(1) motion to dismiss for lack of subject matter jurisdiction. See Teevee Toons, Inc. v. Overture Records, 501 F.Supp.2d 964, 967 (E.D.Mich.2007); Hawaiian Village Computer, Inc. v. Print Management Partners, Inc., 501 F.Supp.2d 951, 954 (E.D.Mich.2007). The court agrees with this characterization and, therefore, the court will analyze this issue under the Rule 12(b)(1) standard.

I. Motion to Dismiss — Rule 12(b)(1)

Federal Rule of Civil Procedure 12(b)(1) governs dismissal of lawsuits for lack of jurisdiction over the subject matter. The “first and fundamental question presented by every case brought to the federal courts is whether it has jurisdiction to hear a case.” Douglas v. E.G. Baldwin & Assoc., Inc., 150 F.3d 604, 606-07 (6th Cir.1998).

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615 F. Supp. 2d 708, 92 U.S.P.Q. 2d (BNA) 1208, 2009 U.S. Dist. LEXIS 42083, 2009 WL 1393331, Counsel Stack Legal Research, https://law.counselstack.com/opinion/specific-software-solutions-llc-v-institute-of-workcomp-advisors-llc-tnmd-2009.