WorkSteps, Inc. v. ErgoScience, Inc.

88 F. Supp. 3d 732, 2015 WL 1807402
CourtDistrict Court, W.D. Texas
DecidedApril 20, 2015
DocketCase No. A-14-CA-968-SS
StatusPublished

This text of 88 F. Supp. 3d 732 (WorkSteps, Inc. v. ErgoScience, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WorkSteps, Inc. v. ErgoScience, Inc., 88 F. Supp. 3d 732, 2015 WL 1807402 (W.D. Tex. 2015).

Opinion

ORDER

SAM SPARKS, District Judge.

BE IT REMEMBERED on the 7th day of January 2015, the Court held a hearing in the above-styled cause, and the parties appeared by and through counsel. Before the Court are Defendants ErgoScience, Inc. and Deborah E. Lechner’s Motion to Dismiss [# 8], Plaintiff WorkSTEPS’ Response [# 19] thereto, Defendants’ Reply (Defs.’ MTD Reply) [# 25] thereto, Defendants’ Supplement to Pending Motion to Dismiss/Motion for Summary Judgment (Defs.’ Mot. Summ. J.) [#27], Plaintiffs Opposition Memorandum to Defendant’s Motion for Summary Judgment and Plaintiffs Cross-Motion for [Partial] Summary Judgment [#32-2] (sealed), Defendants’ Reply in Support of Motion to Dismiss/Motion for Summary Judgment and Response to Plaintiffs Cross-Motion for Summary Judgment [# 39], Plaintiffs Reply to Defendant’s Motion for Summary Judgment and Plaintiffs Cross-Motion for Summary Judgment [# 42], and Plaintiffs Motion to File Pleadings Under Seal [# 32] (sealed).1 Having reviewed the documents, the arguments of the parties at hearing, the file, and the governing law, the Court now enters the following opinion and orders.

Background

This is an action for copyright infringement and breach of contract brought by [737]*737Plaintiff WorkSTEPS, Inc. against Defendants ErgoScience, Inc., Deborah Lechner, President of ErgoScience, and Does 1-300, unknown alleged third-party infringers, for alleged willful, contributory, and induced infringement in violation of a consent judgment and settlement agreement. Work-STEPS is a national provider of “functional employment testing,” a type of testing designed to evaluate the physical abilities of job applicants and new employees such that workers’ jobs are matched to their physical capabilities, decreasing the likelihood of job-related injuries. ErgoScience is also a provider of functional employment testing and directly competes with Work-STEPS.

WorkSTEPS holds a copyright in various materials related to its testing programs under Copyright Registration Number TXu000942472. The two copyrighted documents at issue in this case are Work-STEPS’ “Functional Capacity Evaluation,” a twelve-page detailed form that guides WorkSTEPS’ providers through administration of WorkSTEPS’ functional employment test and provides space for recording the results as the test proceeds, and WorkSTEPS’ “Medical History” form, a questionnaire apparently given prior to administration of the Functional Capacity Evaluation (together, the WorkSTEPS Materials). WorkSTEPS alleges ErgoScience’s “Physical Agility Test” and incorporated “Medical Issues” form infringe the WorkSTEPS Materials.

This is the second time WorkSTEPS has brought suit alleging ErgoScience has infringed its copyright. Although the original dispute between the parties was dismissed by consent judgment in July of 2012, attorney error (and, evidently, a heaping helping of inability to compromise) brought the action roaring back two years later. The mess the parties have made is now spread over two cause numbers: this one, No. 1:14-CV-968-SS, and the originally filed suit, WorkSTEPS, Inc. v. Johnston et al. No. 1:10-CV-850-SS (W.D.Tex.2010) (the Original Suit). A brief history is outlined below.

A. The Original Suit

In the Original Suit, WorkSTEPS claimed ErgoScience, Lechner, and Donna Johnston, an ErgoScience employee not party to the present action, infringed WorkSTEPS’ copyright by incorporating portions of the WorkSTEPS Materials into ErgoScience’s testing materials. After completing discovery, the parties to the Original Suit informed the Court they had settled the case. Under the parties’ settlement agreement, the defendants agreed to pay WorkSTEPS $75,000 and to cease using WorkSTEPS’ copyrighted materials. Mot. Order Show Cause [# 39-9] (sealed), Feeler Deck, Ex. 3 (Settlement Agreement) at 3, Original Suit.2 On July 26, 2012, the parties jointly moved the Court for entry of a consent judgment against the defendants. Agreed Stipulation [# 31] at 1-2, Original Suit. On July 30, 2012, the Court entered the consent judgment as drafted by the parties. Consent Judgment [# 32] at 2, Original Suit.

As part of the Settlement Agreement, the parties negotiated a safe harbor which would permit ErgoScience to use certain materials without threat of further litigation. See Mot. Order Show Cause [# 39-8] (sealed), Feeler Decl., Ex. 2 (Safe Harbor) at 3, Original Suit. Unfortunately, a serious miscommunication occurred during the negotiations. During WorkSTEPS’ fi[738]*738nal review of the proposed safe harbor, WorkSTEPS “redlined,” or electronically crossed out, certain portions, indicating WorkSTEPS did not agree to inclusion of those portions in the final safe harbor. See Defs.’ Resp. Mot. Order Show Cause [# 54] (sealed) at 1, Original Suit. Work-STEPS then sent the redlined version to ErgoScience via email. Counsel for Er-goScience printed and reviewed the safe harbor-but, apparently due to the configuration of certain printing settings in Adobe Acrobat (counsel’s PDF reader), Work-STEPS’ electronic redlines did not appear on the printed document. Id. at 1-2. Believing WorkSTEPS had agreed to the proposed safe harbor without redlining anything, counsel for ErgoScience confirmed the same to his clients, and “re-lyi[ng] on its lawyer’s confirmation that the ‘safe harbor’ materials had been fully approved by WorkSTEPS,” ErgoScience signed the Settlement Agreement and proceeded to use all of the proposed safe harbor materials in its business, including those WorkSTEPS redlined. Id. at 2; see also Mot. Order Show Cause [# 39-16] (sealed), Feeler Deck, Ex. 10 (July 31, 2013 Letter) at 1-2, Original Suit (letter from Brandon Browning, then-counsel for ErgoScience, to counsel for WorkSTEPS explaining the error).

WorkSTEPS eventually- discovered Er-goScience’s use of the redlined materials, reigniting the infringement dispute. To their credit, the parties attempted to resolve their issues without court involvement, but were ultimately unsuccessful. See, kg., July 31, 2013 Letter; Mot. Order Show Cause [# 39-17] (sealed), Feeler Deck, Ex. 11, Original Suit (Sept. 27, 2013 Letter). Consequently, on August 5, 2014, WorkSTEPS filed a motion for order to show cause in the Original Suit. See Mot. Order Show Cause [# 39] (sealed), Original Suit. In its motion, WorkSTEPS argues ErgoScience has committed willful infringement, should be held in contempt of the Consent Judgment, and is liable to WorkSTEPS for damages and attorney’s fees.

The Court held a show cause hearing in the Original Suit on September 5, 2014. During the hearing, the Court heard testimony concerning the alleged infringement from Larry Feeler, CEO of WorkSTEPS and author of the materials at issue, and ordered the parties to submit supplemental briefing on the question whether the issue of infringement, in the context of a contempt proceeding, should be tried to a jury or the bench. In that briefing, Work-STEPS indicated because “the law is unsettled as to what relief a complainant in a contempt proceeding may recover[,]” it would file a new lawsuit and seek to consolidate the two cases to preserve its rights. Pl.’s Brief Responsive to Court’s Sept. 5, 2014 Order [# 58] at 4, Original Suit. WorkSTEPS has not sought consolidation of the Original Suit and the present action.

B. The Present Action

On October 24, 2014, WorkSTEPS filed its complaint in the present action.

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Cite This Page — Counsel Stack

Bluebook (online)
88 F. Supp. 3d 732, 2015 WL 1807402, Counsel Stack Legal Research, https://law.counselstack.com/opinion/worksteps-inc-v-ergoscience-inc-txwd-2015.