Taylor Corporation v. Four Seasons Greetings, LLC

403 F.3d 958, 74 U.S.P.Q. 2d (BNA) 1443, 2005 U.S. App. LEXIS 5866, 2005 WL 820283
CourtCourt of Appeals for the Eighth Circuit
DecidedApril 11, 2005
Docket04-1088
StatusPublished
Cited by73 cases

This text of 403 F.3d 958 (Taylor Corporation v. Four Seasons Greetings, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor Corporation v. Four Seasons Greetings, LLC, 403 F.3d 958, 74 U.S.P.Q. 2d (BNA) 1443, 2005 U.S. App. LEXIS 5866, 2005 WL 820283 (8th Cir. 2005).

Opinion

RILEY, Circuit Judge.

This appeal is primarily governed by the standard of review. We directly address a challenge to the appropriate standard for reviewing a district court’s findings of substantial similarity in copyright law cases. We adopt the standard from the majority of other circuits and review the district *961 court’s fact findings concerning substantial similarity for clear error.

In this copyright infringement action, Taylor Corporation (Taylor), a greeting card manufacturer, claims Four Seasons Greetings, LLC (Four Seasons), a competing greeting card company, infringed Taylor’s copyrights in six greeting card designs. Following a bifurcated trial, the district court 1 concluded Taylor owns the copyrights in the six greeting card designs at issue, and Four Seasons’s card designs infringe Taylor’s copyrights. The district court issued a permanent injunction against Four Seasons, directing Four Seasons to stop copying, selling, or distributing the six greeting card designs. Four Seasons appeals, arguing the district court erred: (1) in holding Four Seasons liable for copyright infringement, and (2) in issuing a permanent injunction. We affirm.

I. BACKGROUND

This case involves claims of illegal copying ‘Of six holiday greeting card designs. Creative Card Company (Creative Card) employed Frank Stockmal (Stockmal), Bernard Granger (Granger), Michael Shelton (Shelton), and Aleta Brunettin (Brun-ettin) to design greeting cards. While working for Creative Card, these artists created the six card designs disputed in this case: Colored Presents, Ribbon of Flags Around Globe, Three Worlds of Thanks Globe Ornament, Pencil Sketch Farm, Thanksgiving Cart, and Wreath with Verse. Because the artists were employed by Creative Card when the artists created the card designs, Creative Card is considered the author and the original copyright owner of the six designs. 2 At the time Creative Card authored the six card designs, Creative Card was a wholly owned subsidiary of AP & P Manufacturing, Inc. (AP & P).

In 1999, Creative Card’s president left Creative Card and formed Four Seasons. Three of Creative Card’s artists-Stockmal, Shelton, and Brunettin-resigned from Creative Card and went to work for Four Seasons. While employed by Four Seasons, Stockmal, Shelton, and Brunettin created six card designs Taylor contends are similar to six card designs the artists and Granger previously created for Creative Card.

AP & P later filed for bankruptcy. In April 2000, AP & P and Taylor entered into an Asset Purchase Agreement (Agreement), in which AP & P agreed to sell certain assets to Taylor, including AP & P’s assets “used in the operation of [AP & P’s] Business.” The Agreement defines “business” as “the business of designing and publishing greeting cards, ... as currently conducted by the Creative Card division of [AP & P].” AP & P also agreed to transfer to Taylor “[a]ll intellectual property of the Business, including ... copyrights, ... artwork, designs and other intangible property of the Business, ... including without limitation the Intellectual Property listed in Schedule 1.1(d).” Schedule 1.1(d) identifies hundreds of greeting card designs, including the six card designs authored by Creative Card. On April 28, 2000, the United States Bankruptcy Court for the District of Delaware approved the sale of AP & P’s assets to Taylor.

*962 In June and August 2001, Taylor registered the six card designs at issue in this case with the United States Copyright Office. The original copyright registrations misidentified Taylor as the author of each card design. In August 2003, Taylor filed supplementary registrations correctly identifying Creative Card as the author of each work. The supplementary registrations listed Taylor as the copyright claimant. The registration form requires the copyright claimant, if different from the author, to give a brief explanation as to how the claimant obtained ownership of the copyright. In response to that direction, each supplementary registration contains the statement “Bill of Sale and Assignment from [AP & P] to Taylor ... dated May 9, 2000.”

Taylor sued Four Seasons for copyright infringement under the 1976 Copyright Act, 17 U.S.C. §§ 101-1332, for “copying, manufacturing, producing, publishing, selling, promoting and/or advertising ... greeting cards bearing designs ... substantially similar to [Taylor’s] Works.” The district court preliminarily enjoined Four Seasons from further sale or distribution of the six cards in question. This court affirmed the preliminary injunction. Taylor Corp. v. Four Seasons Greetings, LLC, 315 F.3d 1039, 1041 (8th Cir.2003) (Taylor I).

Before trial, Four Seasons stipulated it earned a profit of $45,976.95 from sales of the six card designs. Despite Four Seasons’s stipulation of damages, Taylor filed a “Notice of Election of Remedies and Withdrawal of Jury Demand,” wherein Taylor sought only injunctive relief at trial. The district court bifurcated Taylor’s action into two separate trials. First, the parties tried Taylor’s infringement claim to the court and to an advisory jury. The advisory jury unanimously found Four Seasons’s cards infringed Taylor’s copyrights. Second, the parties tried Taylor’s claim that it owns the copyrights at issue to the district court, which concluded “[Taylor] is the legal owner of the copyrights pertaining to the [six card designs].” After deciding Four Seasons infringed Taylor’s copyrights, the district court entered judgment in favor of Taylor and issued a permanent injunction against Four Seasons, prohibiting Four Seasons “from any further copying, manufacture, production, reproduction, publication, display, distribution, promotion, sale or offering for sale of the six Four Seasons designs.”

Four Seasons challenges the district court’s judgment, contending the district court erred: (1) in concluding Taylor owns the copyrights in the six card designs; (2) in “failing to identify what constituent elements of the Taylor cards were original, protectable expression that was copied by Four Seasons”; (3) in failing to find Four Seasons’s cards were independently created; (4) in granting injunctive relief after Taylor elected not to accept monetary damages; and (5) in depriving Four Seasons of its right to a jury in the ownership phase of the trial.

II. DISCUSSION

A. Copyright Infringement

Copyright law grants the copyright owner a limited monopoly to exploit his creation. This limited monopoly “is intended to motivate the creative activity of authors and inventors by the provision of a special reward, and to allow the public access to the products of their genius after the limited period of exclusive control has expired.” Sony Corp. of Am. v. Universal City Studios, Inc., 464 U.S. 417, 429, 104 S.Ct. 774, 78 L.Ed.2d 574 (1984).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
403 F.3d 958, 74 U.S.P.Q. 2d (BNA) 1443, 2005 U.S. App. LEXIS 5866, 2005 WL 820283, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-corporation-v-four-seasons-greetings-llc-ca8-2005.