Wildlife Internationale, Inc. v. Clements

591 F. Supp. 1542, 223 U.S.P.Q. (BNA) 806, 1984 U.S. Dist. LEXIS 24216
CourtDistrict Court, S.D. Ohio
DecidedAugust 21, 1984
DocketC-1-83-66
StatusPublished
Cited by12 cases

This text of 591 F. Supp. 1542 (Wildlife Internationale, Inc. v. Clements) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wildlife Internationale, Inc. v. Clements, 591 F. Supp. 1542, 223 U.S.P.Q. (BNA) 806, 1984 U.S. Dist. LEXIS 24216 (S.D. Ohio 1984).

Opinion

ORDER

CARL B. RUBIN, Chief Judge.

This matter is before the Court, by agreement of the parties, for decision based on the record. That record consists of the documents filed with the Court, 1 deposition transcripts, and exhibits filed as attachments to documents and in anticipation of trial. The parties have agreed to have the Court determine both facts and law based on the record. See Doc. No. 81. 2

*1544 Background Facts 3

Plaintiff John A. Ruthven (“Ruthven”) is a well-known wildlife artist. Plaintiff Wildlife Internationale, Inc., (“Wildlife”) produces and sells lithographic reproductions of original artwork painted by Ruthven. Ruthven is the owner and president of Wildlife.

Defendant B. Russell Clements 4 (“Clements” or “defendant”) is the former president, chief operating officer and owner of DeSales Ltd., Inc., (“DeSales”). DeSales was adjudicated bankrupt in 1971 and no longer exists.

In 1967, Ruthven and DeSales entered into the first of three contracts (Pltf.Ex. 8) pursuant to which DeSales was given certain rights to reproduce and sell prints of Ruthven paintings. Similar contracts were entered into in January, 1968, for a period of one year (Pltf.Ex. 9) and September, 1968, for a period of five years. (Pltf.Ex. 10). The specific rights of the parties under those contracts will be set forth, where pertinent, below.

In 1969, Ruthven notified DeSales of his desire to terminate their contractual relationship. This led to a series of lawsuits in state court involving Ruthven, DeSales, Clements and others. Those disputes were resolved by means of a November 5, 1970, Restraining Order (Pltf.Ex. 26) and November 6, 1970, Judgment Entry. (Pltf.Ex. 11). Pertinent provisions of those documents will be discussed below.

In December, 1971, Wildlife acquired the physical, Ruthven-related assets of the bankrupt DeSales from the Central Trust Company (see Pltf.Ex. 28) which had acquired those assets through two security agreements with DeSales. (Pltf.Ex. 6 and 7). 5 With certain unimportant exceptions, the remaining assets covered by the Central Trust security agreements were purchased by James E. Saling in March, 1972. (Pltf.Ex. 51). In April, 1973, Ruthven purchased from the trustee in bankruptcy the reproduction rights previously granted to DeSales in the November 6, 1970, Judgment Entry. (See Pltf.Ex. 41).

In 1972, Clements became associated with Old Square Gallery (“Old Square”). Although Old Square was technically a partnership owned by Clements’ wife and daughter, the Old Square business card lists “Russ, Claire & Beth Clements” as “Family Proprietors.” (See Pltf.Ex. 5A).

In the summer of 1982, Clements informed Ruthven and his counsel that he was planning to offer certain Ruthven prints for sale to the public, unless a “potentially profitable business deal between us” could be reached. (See Pltf.Ex. 15). In October, 1982, Clements began mailing to potential purchasers promotional materials regarding those Ruthven prints. (See Pltf.Ex. 29). The materials indicated that the Ruthven artwork was being offered by Clements through Old Square (see Pltf.Ex. 5C) and included a price list/order form bearing the Old Square name and logo (Pltf.Ex. 5B), an Old Square business card (Pltf.Ex. 5A) and random brochures depicting Ruthven prints. (Pltf.Ex. 5D and 5E); (see generally Pltf.Ex. 29). The Court finds from the evidence (see e.g., Pltf.Ex. 30) and from the arguments of the parties (see e.g., Doc. No. 78 at 7-8; Doe. No. 82 at 10-22) that the prints offered for sale by Clements in October, 1982, and thereafter may be generally categorized as follows:

(1) Limited and unlimited edition prints, including prints known as “Towhee,” “Indigo Buntings" and “Tufted Titmice;” 6
(2) Proofs and make ready sheets. 7
*1545 (3) Prints referred to by the parties as “Dee Bee prints” and “Giant Photo prints.” 8

As mentioned above, Clements also distributed various advertising brochures depicting Ruthven works as part of his promotional activities.

Plaintiffs allege causes of action for copyright and trademark infringement, unfair competition under federal and state law, and conversion, based upon defendant’s distribution, sale and/or possession of the foregoing materials. Defendant denies any wrongdoing.

Discussion

A. In Count One of their Complaint, plaintiffs allege that Clements has infringed Ruthven’s copyright in 22 works of art 9 by “distributing copies of the copyrighted works ... to the public by sale or other transfer of ownership.” (Doc. No. 1 at 3).

Defendant raises several arguments in response to Count One. 10 Initially, he asserts that the Court lacks jurisdiction over the copyright claim because plaintiffs have failed to follow the procedural prerequisites to maintaining an infringement action. His argument is based on 17 U.S.C. § 205(d), which provides:

No person claiming by virtue of a transfer to be the owner of eopyrightor of any exclusive right under a copyright is entitled to institute an infringement action under this title until the instrument of transfer under which such person claims has been recorded in the Copyright Office, but suit may be instituted after such recordation on a cause of action that arose before recordation.

Defendant argues that both Ruthven and Wildlife acquired the copyright interests at issue by transfer and that the instruments of transfer have not been recorded. Therefore, regardless of whether Ruthven or Wildlife is bringing the infringement claim, the failure to observe § 205(d) deprives the Court of jurisdiction. See Burns v. Rockwood Distributing Co., 481 F.Supp. 841, 846-47 (N.D.Ill.1979).

The Court disagrees. First, it is clear that Ruthven alone is bringing the infringement action. (See Complaint, Doc. No. 1 at 2, 11 6). Defendant argues that Ruthven is the current holder of reproduction and distribution rights in the copyrighted works solely by virtue of his reacquisition of those rights, which he had previously granted to DeSales, from the trustee in bankruptcy. (See Pltf.Ex. 41). While it may be true that Ruthven became the legal owner of those rights by virtue of that transfer, defendant’s argument still fails.

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Bluebook (online)
591 F. Supp. 1542, 223 U.S.P.Q. (BNA) 806, 1984 U.S. Dist. LEXIS 24216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wildlife-internationale-inc-v-clements-ohsd-1984.