Steinmetz v. McGraw-Hill Global Education Holdings, LLC

220 F. Supp. 3d 596, 120 U.S.P.Q. 2d (BNA) 1880, 2016 WL 7048950, 2016 U.S. Dist. LEXIS 167245
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 5, 2016
DocketCIVIL ACTION NO. 15-6600
StatusPublished
Cited by9 cases

This text of 220 F. Supp. 3d 596 (Steinmetz v. McGraw-Hill Global Education Holdings, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Steinmetz v. McGraw-Hill Global Education Holdings, LLC, 220 F. Supp. 3d 596, 120 U.S.P.Q. 2d (BNA) 1880, 2016 WL 7048950, 2016 U.S. Dist. LEXIS 167245 (E.D. Pa. 2016).

Opinion

MEMORANDUM

EDUARDO C. ROBRENO, District Judge

Plaintiff George Steinmetz (“Plaintiff’ or “Steinmetz”), a renowned photographer, brings this action for copyright infringement against Defendants McGraw-Hill Global Education Holdings, LLC, and McGraw-Hill School Education Holdings, LLC (collectively, “Defendants” or “MHE”).

Before the Court is Defendants’ Motion to Transfer Venue to the Southern District of New York (EOF No. 47). This motion is based exclusively on a forum selection clause that appears in certain pricing agreements between Defendants and a third-party licensing agency, Corbis Corporation (“Corbis”). Finding that Plaintiff was not a party to the pricing agreements between Defendants and Corbis, and further that Plaintiffs copyright infringement claim does not depend on the existence or terms of those agreements, the Court concludes that the forum selection clause appearing in those agreements is not applicable here. Further, the Court finds that the private and public interest factors outlined in 28 U.S.C. § 1404(a) do not warrant transfer of this action to the Southern District of New York.

I. FACTUAL BACKGROUND AND PROCEDURAL HISTORY

Plaintiff owns the copyrights to a series of photographs that have been registered with the United States Copyright Office [599]*599or have pending copyright registrations. Am. Compl. ¶¶6~7, ECF No. 41. He alleges that, between 1997 and 2010, he sold Defendants limited licenses to use his photographs in particular educational publications. Id. ¶ 8. These licenses “were expressly limited by number of copies, distribution area, language, duration, and/or media.” Id,

Exhibit 1 to Plaintiffs Amended Complaint specifically identifies fifty-seven different uses of photographs featured in multiple grade school and college textbooks. See Am. Compl. Ex. 1, ECF No. 4-1, Id. 118. In addition to the photographs identified in Exhibit 1, which Plaintiff licensed directly to MHE, Plaintiff also entered into agreements authorizing third-party stock photography licensing agencies Corbis Corporation (“Corbis”) and National Geographic Society Image Collection (“NGS”) to grant limited licenses to MHE for the use of certain photographs.1 Am. Compl. ¶ 9. The images licensed to MHE by Corbis and NGS are summarized, respectively, in Exhibits 2 and 3 to the Amended Complaint. See Am. Compl. Ex. 2, ECF No. 41-2; Am. Compl Ex. 3, ECF No. 41-3.

Plaintiff avers that Defendants used the photographs identified in a spreadsheet titled “MHSE IStep Database, Search Report for Photo Credits Listing ‘George Steinmetz’ ” (“IStep Database”), ECF No. 33-2,2 “beyond invoice terms, or without any license,” Am. Compl, ¶ 10. He claims further that “MHE did not provide Plaintiff with the Image ID or a description of the Steinmetz photograph included in each book, nor did it provide invoice information for these uses.” Id. At the heart of Plaintiffs Amended Complaint are his allegations that Defendants “exceeded the licenses and infringed [his] copyrights ... in various ways,” including “printing more copies of the [p]hotographs than authorized; distributing publications containing the [pjhotographs outside the authorized distribution area; publishing the photographs in electronic, ancillary, or derivative publications without permission; publishing the photographs in international editions and foreign publications without permission; and publishing photographs outside the specified time limits. Id. ¶ 17. Plaintiff lists twelve examples of unauthorized printings, see id. ¶ 12, and notes that other photographers and stock photography agencies have brought copyright infringement suits against Defendants based on similar conduct, id. ¶¶ 20, 22,23.

Based on these allegations, Plaintiff brings one count of copyright infringement in violation of the Copyright Act of 1976. Id. ¶ 26; see also 17 U.S.C. § 501 (“Infringement of Copyright”). He requests a “preliminary and permanent injunction against Defendants,” “impoundment of all copies of Plaintiffs photographs used in violation of’ Plaintiffs copyrights, actual damages and Defendants’ profits from the unauthorized use of Plaintiffs photographs (or statutory damages), and attorneys’ fees and costs. See id. at 8-9.

In their Answer to the Amended Complaint, Defendants deny “that any of Steinmetz’s photographs in this suit were unlawfully reproduced by MHE.” Answer Am. Compl. ¶ 3, ECF No. 46. They specifically deny the allegations in Paragraphs 6 and 7 of the Amended Complaint, including the allegations that Plaintiff owns any [600]*600exclusive right to the photographs cited in Exhibits 1-3 to the Amended Complaint and that there is evidence that any particular photograph has been registered. Id. ¶¶ 6-7.

Defendants also raise a number of affirmative defenses, including, among other things, Plaintiffs lack of standing due to prior assignment or other defects in ownership of the copyrights at issue; Plaintiffs lack of valid and enforceable copyright registrations for the photographs at issue; and Plaintiffs failure to mitigate damages by monitoring the use of his licensed works. Id. at 7-9. Defendants further raise affirmative defenses “of license and/or implied license arising from the specific agreements between MHE and other parties for use of the photographs alleged in the [Amended Complaint], as well as any course of dealing with any such parties,” id. at 7; of “license, implied or express, and/or other legal right to continue to possess such copies, records, and/or documents by MHE,” id. at 8; and that “Steinmetz’s claims for copyright infringement are barred by the doctrine holding that any claim for breach of a covenant in a copyright license sounds in contract and not in copyright,” id

On September 6, 2016, Defendants filed the motion to transfer that is the subject of the instant hearing. ECF No. 47. On September 23, 2016, Plaintiff filed a memorandum of law in opposition to Defendants’ motion to transfer. ECF No. 51. On September 30, 2016, Defendants filed a motion for leave to reply in support of their motion to transfer, ECF No. 52, and on October 4, 2016, Plaintiff filed a response in opposition thereto, ECF No. 54.

On October 4, 2016, the Court entered an order scheduling a hearing to consider Defendants’ motion to transfer venue for October 26, 2016. ECF No. 55. In this order, the Court also granted Defendants’ motion for leave to file a reply, which was filed the same day. ECF No. 56. On October 6, 2016, Plaintiff filed a motion for leave to file a surreply, ECF No. 57, and on October 23, 2016, Defendants filed a supplemental memorandum in support of their motion to transfer. ECF No. 58.

On October 26, 2016, following a hearing held on the record, the Court granted Plaintiffs motion for leave to file a surre-ply. ECF No. 59. The surreply was filed the same day. ECF No. 60.

II. DISCUSSION

A. Legal Standard

A party may move to transfer a civil action pursuant to 28 U.S.C. § 1404, which provides in relevant part as follows:

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220 F. Supp. 3d 596, 120 U.S.P.Q. 2d (BNA) 1880, 2016 WL 7048950, 2016 U.S. Dist. LEXIS 167245, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steinmetz-v-mcgraw-hill-global-education-holdings-llc-paed-2016.