Spilman v. Mosby-Yearbook, Inc.

115 F. Supp. 2d 148, 2000 U.S. Dist. LEXIS 14590, 2000 WL 1482906
CourtDistrict Court, D. Massachusetts
DecidedSeptember 26, 2000
DocketCiv.A.98-10934-PBS
StatusPublished
Cited by2 cases

This text of 115 F. Supp. 2d 148 (Spilman v. Mosby-Yearbook, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spilman v. Mosby-Yearbook, Inc., 115 F. Supp. 2d 148, 2000 U.S. Dist. LEXIS 14590, 2000 WL 1482906 (D. Mass. 2000).

Opinion

MEMORANDUM AND ORDER

SARIS, District Judge.

Plaintiff, Shawn Spilman, d/b/a Eliot Press, sold the publication rights to his health care manuals to the defendant, Mosby-Yearbook, Inc. (“Mosby”), which agreed to use its best efforts to protect the copyrights and to use commercially reasonable efforts to promote the publications. Alleging that Mosby failed to com *150 ply with these obligations, plaintiff filed this diversity action asserting breach of contract (Count 1) and unfair and deceptive trade practices under Mass.Gen.L. ch. 93A (Count 2). Mosby has filed counterclaims for breach of contract and unfair practices, alleging that Spilman broke his end of the deal when he sold manuals after July 11,1994.

Defendant moves for summary judgment on the grounds that: (1) Spilman materially breached the agreement by failing to transfer valid copyrights to the manuals; (2) Mosby had total discretion under the contract as to whether to publish and promote the works; and (3) Spil-man is estopped from bringing the claim because he misrepresented the validity of his copyrights during the parties’ negotiations.

For the reasons herein, defendant’s motion is DENIED.

FACTS

Drawing all reasonable inferences in favor of the nonmoving party, the Court treats the following facts as undisputed except where noted.

A. Background

The Resident Assessment Instrument is a government mandated system for evaluating the functional capacity of chronically ill patients. It is typically used in nursing homes and other long-term health care facilities. The system has three components: the minimum data set (“MDS”); the utilization guidelines; and the Resident Assessment Protocols (“RAPS”). As a matter of convention, this entire system is called MDS.

The Original MDS was developed under the auspices of the Health Care Financing Administration (“HCFA”), a federal agency, in response to a Congressional mandate that all nursing homes participating in Medicare and Medicaid programs comply with specific resident assessment requirements. 1 The original MDS was created by a team of experts from the public and private sectors under the supervision of John Morris of the Hebrew Rehabilitation Center for the Aged. They were subcontractors for the Research Triangle Institute. In September 1990, the HCFA made the project available to the public by publishing it in the State Operations Manual and the State Medicaid Manual. The system was mandatory although states were allowed to supplement it with additional requirements.

B. The Red Book

In January 1991, Morris gave Spilman a copy of the Original MDS on a computer disk. Indeed, the authors distributed it to anyone who asked for it. Spilman agreed to create and publish a commercial book which would explicitly name the authors. Spilman also agreed to provide copies of his publication to the original authors at no charge. In return, Spilman claims Morris orally agreed that Spilman would own the copyright with the understanding that the Original MDS manuscript would remain in the public domain. Morris remembers the transaction differently. Morris’s memory is that Spilman was looking to copyright only the form and the look of the document.

Spilman used the electronic copy to develop the Resident Assessment Instrument Training Manual and Resource Guide (the “Red Book”). Although its text was substantively the same as the Original MDS (which Spilman concedes is in the public domain), it also included several enhancements. The most labor-intensive enhancement was that Spilman altered the source codes in the computer disk he received from Morris to a format that allows mass publication. His other contributions include: editing the original MDS for style, grammar, and punctuation; creating a table of contents; adding the term “Minimum Data Set” and “MDS” to the title on the cover; creating the cover design and *151 logo; adding a two-color scheme to the text, changing the “line art”; and adding the names of the Original MDS authors to the title page. Spilman published the book himself under the name Eliot Press. He also registered it with the U.S. Copyright Office. The resulting Red Book went to press in mid-1991. Tens of thousands were sold.

C.MDS Plus

After releasing the Original MDS, the HCFA undertook a separate parallel project with the different goal of evaluating the system’s efficacy in dealing with the mixed-payment Medicare and Medicaid patients. The study was headed by Elizabeth Cornelius of the HCFA and included several private consultants. Morris was not involved in its development. Based on the study, the HCFA developed MDS Plus. Fifteen to twenty states adopted the MDS Plus system as their official in-state system. It had to contain everything in the Original MDS plus the requirements of the state system. MDS Plus was never codified in the Federal Register.

Over the next three years, using the Red Book as his starting point, Spilman produced a special book for use in Colorado and a series of three MDS Plus books for use in various other states. Spilman obtained information about MDS Plus from Cornelius and the consultants who worked on the project, and used the information to develop the MDS Plus Reference Manual. Spilman asserts that he obtained the rights in HCFA’s work in a verbal agreement with Cornelius. The MDS manual contains numerous format changes. Spilman claims that he primarily authored significant textual additions to the Red Book (words, sentences and paragraphs). Mosby disputes this claim. He also included specific material at the request of HCFA or a state.

In 1992 and 1993, Spilman registered five publications relating to the Red Book and the MDS Plus (four publications) with the U.S. Copyright Office. He licensed excerpts of MDS or MDS Plus to computer software and medical forms vendors, including Briggs Corp. and Med-Pass, Inc., the two largest vendors of MDS products. Their licensed products carried the copyright of Eliot Press. He also gave licenses to various translators.

D. MDSv.2

Finally, in the mid-1990’s, HCFA contracted with Morris of the Hebrew Rehabilitation Center, and others, to update the Original MDS. In 1996, the HCFA published MDS Version 2.0 (“MDSv.2”). It published that version in the Federal Register effective as of January 1, 1996, making it applicable to all states. According to Spil-man, it contains substantial portions of MDS Plus books authored by Spilman. It rendered the Original MDS largely obsolete. Spilman developed a manuscript entitled the MDS Version 2.0 Reference Manual, which was based on the HCFA’s public domain work. MDS Version 2.0 was made available on HCFA’s website. All the authors of the Original MDS and MDSv.2 assigned their rights to interRAI, a non-profit group.

E. The Agreement

In early 1994, Spilman entered into negotiations with Mosby for the sale of the publications. As part of Mosby’s due diligence for the purchase, it developed a business plan for Eliot Press.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
115 F. Supp. 2d 148, 2000 U.S. Dist. LEXIS 14590, 2000 WL 1482906, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spilman-v-mosby-yearbook-inc-mad-2000.