Star Fabrics, Inc. v. Target Corporation et al

Filing 54

ORDER by Judge Dean D. Pregerson: Plaintiff's Motion for Partial Summary Judgment 30 is GRANTED. (ir)

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1 2 O 3 4 5 6 No JS-6 7 8 UNITED STATES DISTRICT COURT 9 CENTRAL DISTRICT OF CALIFORNIA 10 11 STAR FABRICS, INC., a California corporation, 12 Plaintiff, 13 v. 14 15 16 TARGET CORPORATION, a Minnesota Corporation; KANDY KISS OF CALIFORNIA, INC., a California corporation; MOREX ENTERPRISES, INC., 17 Defendants. 18 ___________________________ ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) ) Case No. CV 10-07987 DDP (AGRx) ORDER GRANTING MOTION FOR PARTIAL SUMMARY JUDGMENT [Motion filed on 8/11/11] 19 20 Presently before the court is Plaintiff Star Fabrics, Inc. 21 (“STAR”)’s Motion for Partial Summary Judgment. 22 the submissions of the parties and heard oral argument, the court 23 grants the motion and adopts the following order. 24 I. 25 Having considered Background STAR is a “textile converter” that provides fabric printed 26 with art designs to garment manufacturers. 27 Haroni ¶ 2.) 28 a similar service. (Declaration of Adir Defendant Morex Enterprises, Inc. (“Morex”) provides (Haroni Dec. ¶ 10.) STAR creates or acquires 1 designs, offers those designs to customers, and provides fabric 2 bearing those designs. 3 for fabric by the yard based on quantity ordered and type of 4 material requested. 5 acquisition and development costs are treated as overhead expenses, 6 and the particular design printed on a given fabric does not affect 7 the cost of the fabric. 8 9 (Haroni Dec. ¶ 3.) STAR charges customers (Haroni Deposition at 40.) STAR’s design (Haroni Depo. at 45.) In 2006, STAR purchased an art design, the “59705” design, for $550, and began offering the design to customers. (Haroni Dec. ¶¶ 10 6-7; Haroni Deposition at 14:20, 27:15.) 11 copyright to the 59705 design. 12 sold fabric samples bearing the 59705 design to Defendant Kandy 13 Kiss of California, Inc. (“Kandy Kiss”), a garment manufacturer. 14 (Haroni Dec. at 8.) 15 STAR also registered the (Haroni Dec. ¶ 6). In 2007, STAR In 2010, STAR discovered a garment bearing a design virtually 16 identical to the 59705 design for sale at a store operated by 17 Defendant Target Corporation (“Target”). 18 variations in coloring distinguish the 59705 design from the design 19 on the Target garment. 20 learned that Kandy Kiss had manufactured the dresses for Target 21 from fabric obtained from Morex. 22 moves for partial summary judgment that Defendants have infringed 23 upon the 59705 design. 24 II. (Haroni Dec. ¶ 10.) (Mot. at 15, Exhibits 4, 7 to Mot.) (Haroni Dec. ¶ 10.) Only STAR STAR now Legal Standard 25 A motion for summary judgment must be granted when “the 26 pleadings, depositions, answers to interrogatories, and admissions 27 on file, together with the affidavits, if any, show that there is 28 no genuine issue as to any material fact and that the moving party 2 1 is entitled to a judgment as a matter of law.” Fed. R. Civ. P. 2 56(c). 3 of informing the court of the basis for its motion and of 4 identifying those portions of the pleadings and discovery responses 5 that demonstrate the absence of a genuine issue of material fact. 6 See Celotex Corp. v. Catrett, 477 U.S. 317, 323 (1986). 7 A party seeking summary judgment bears the initial burden Where the moving party will have the burden of proof on an 8 issue at trial, the movant must affirmatively demonstrate that no 9 reasonable trier of fact could find other than for the moving 10 party. 11 burden of proof, however, the movant can prevail merely by pointing 12 out that there is an absence of evidence to support the nonmoving 13 party’s case. 14 burden, the non-moving party must set forth, by affidavit or as 15 otherwise provided in Rule 56, “specific facts showing that 16 there is a genuine issue for trial.” Anderson v. Liberty Lobby, 17 Inc., 477 U.S. 242, 250 (1986). 18 light most favorable to the non-moving party, and all justifiable 19 inferences are to be drawn in its favor. 20 242. 21 On an issue as to which the nonmoving party will have the See id. If the moving party meets its initial The evidence is viewed in the Anderson, 477 U.S. at It is not the court’s task “to scour the record in search of a 22 genuine issue of triable fact.” Keenan v. Allan, 91 F.3d 1275, 23 1278 (9th Cir. 1996). 24 support clearly. Carmen v. San Francisco Sch. Dist., 237 F.3d 1026, 25 1031 (9th Cir. 2001). The court "need not examine the entire file 26 for evidence establishing a genuine issue of fact, where the 27 evidence is not set forth in the opposition papers with adequate 28 references so that it could conveniently be found." Counsel have an obligation to lay out their 3 Id. 1 2 III. Discussion To prove copyright infringement, a plaintiff must demonstrate 3 (1) ownership of the allegedly infringed work and (2) copying of 4 the protected elements of the work by the defendant. Narell v. 5 Freeman, 872 F.2d 907, 910 (9th Cir. 1989); Three Boys Music Corp. 6 v. Bolton, 212 F.3d 477, 481 (9th Cir. 2000), cert. denied, 531 7 U.S. 1126 (2000). Here, Defendants do not dispute that STAR owns 8 the 59705 design. (Opp. at 8 n.3.) 9 A plaintiff may prove copying or infringement by showing that 10 1) the defendant had access to the protected work and 2) the two 11 works are substantially similar. 12 Even where there is no proof of access, however, a “striking 13 similarity” between an allegedly infringing work and a protected 14 work gives rise to an inference of copying. 15 812 F.2d 421, 423 (9th Cir. 1987). 16 favored on questions of substantial similarity in copyright cases.” 17 Shaw v. Lindheim, 919 F.2d 1353, 1355 (9th Cir. 1990). 18 “grant of summary judgment for plaintiff is proper where works are 19 so overwhelmingly identical that the possibility of independent 20 creation is precluded.” 21 Inc., 715 F.2d 1327, 1330. Three Boys, 212 F.3d at 481. Baxter v. MCA, Inc., Summary judgment “is not highly However, a Twentieth Century-Fox Film Corp. v. MCA, 22 A. Access 23 A plaintiff may show that a defendant had access to a work 24 through direct evidence, or through circumstantial evidence that 1) 25 a chain of events links the protected work and the defendant’s 26 access to the work or 2) the work was widely disseminated. 27 Attacks Ink, LLC v. MGA Entertainment Inc., 581 F.3d 1138, 1143 28 (9th Cir. 2009). 4 Art 1 Here, there is no genuine issue as to defendants’ access to 2 the 59705 design. 3 access to the design, a sample of which it purchased in 2007. 4 Subsequently, Kandy Kiss obtained fabric from Morex bearing a 5 design of Kandy Kiss’s choosing. 6 garments bearing that design and provided them to Target. 7 chain of events constitutes circumstantial evidence that Morex and 8 Target had access to the 59705 design.1 9 10 B. There is direct evidence that Kandy Kiss had Kandy Kiss then manufactured This Substantial Similarity To determine whether two works are substantially similar, the 11 Ninth Circuit employs a two-part analysis — an extrinsic and an 12 intrinsic test. 13 specific expressive elements. 14 F.3d 815, 822 (9th Cir. 2002). 15 subjective comparison that focuses on “whether the ordinary, 16 reasonable audience” would find the works substantially similar in 17 the “total concept and feel of the works.” 18 Pictures & Televison, 16 F.3d 1042, 1045 (9th Cir. 1994). The “extrinsic test” is an objective comparison of Cavalier v. Random House, Inc., 297 The “intrinsic test” is a Kouf v. Walt Disney 19 Here, both the extrinsic and intrinsic tests are easily met.2 20 The observable elements in the 59705 design and the design printed 21 on the offending garment are numerous, complex, and virtually 22 identical. The 59705 design displays intricate plant designs 23 1 24 25 26 27 In their opposition, Defendants assert that STAR disseminates its designs to numerous fabric printing companies in Asia, and that Morex obtained the 59705 design from one of these companies. (Opp. at 3.) Thus, even absent the chain of events linking Morex and Target with the 59705 design, Morex and Target had access to the design via what Defendants themselves acknowledge to be wide dissemination of the design. 2 28 Nowhere do Defendants assert that the two designs are not substantially similar. 5 1 featuring multiple leafy stems, flowers, and buds of different 2 shapes and sizes. 3 prominent fringed teardrop shape, within which are contained 4 additional plant shapes, including dozens of different flowers of 5 various configurations and sizes and stems bearing heart-shaped 6 leaves of varying size. 7 design are, in size, shape, proportion, layout, and indeed every 8 aspect but coloration, identical to those in the protected work. 9 No ordinary observer or reasonable juror could fail to conclude 10 The 59705 design also displays a large, The elements of the allegedly infringing that the works are substantially similar.3 11 C. 12 Defendants assert that their affirmative defense of misuse of Affirmative Defenses 13 copyright and unclean hands warrant denial of Plaintiff’s motion 14 for summary judgment. 15 by virtue of copyright misuse prevents the copyright owner from 16 asserting infringement and asking for damages when the infringement 17 occurred by his dereliction of duty.” 18 v. San Fernando Valley Board of Realtors, 786 F.2d 1400, 1408 (9th 19 Cir. 1986). 20 of copyright misuse, other circuits have recognized it as a use of 21 copyright in a manner contrary to public policy. (Opp. at 5.) “The defense of unclean hands Supermarket of Homes, Inc. Though the 9th Circuit has yet to define the contours MDY Industries, 22 3 23 24 25 26 27 28 Having shown that Defendants had access to the 59705 design, Plaintiff need not demonstrate a “striking similarity” between the works. Smith v. Jackson, 84 F.3d 1213, 1220 (9th Cir. 1996). “Striking similarity exists when two designs are so much alike that the only reasonable explanation for such a great degree of similarity is that the later work was copied from the first.” Stewart v. Wachowski, 574 F.Supp.2d 1074, 1103 (C.D. Cal. 2005) (internal quotations and alteration omitted). As suggested in the court’s discussion of substantial similarity, the two works are virtually identical. Reasonable minds could not differ on the striking similarity, let alone the substantial similarity, of the two designs at issue here. 6 1 LLC v. Blizzard Entm’t, Inc., 629 F.3d 928, 941 (9th Cir. 2010); 2 Altera Corp. v. Clear Logic, Inc., 424 F.3d 1079, 1090, (9th Cir. 3 2005), citing Alcatel USA, Inc. v. DGI Technologies, Inc., 166 F.3d 4 772, 792 (5th Cir. 1999); Practice Mgmt. Info. Corp. v. American 5 Med. Ass’n, 121 F.3d 516, 520 (9th Cir. 1997), citing Lasercomb 6 Am., Inc. v. Reynolds, 911 F.2d 970, 977-79 (4th Cir. 1990). 7 Defendants assert that STAR has misused its copyright in the 8 97905 design by having certain printing mills in China and Korea 9 print the fabric that STAR supplies to customers. (Opp. at 2.) 10 STAR contracted with seven fabric suppliers or trading companies in 11 Korean and China to provide fabric bearing STAR designs. 12 Depo. at 62-65; Opp. At 3, Reply at 6.) 13 then contract with factories in their own countries that actually 14 produce fabric. 15 names of the factories with which its trading company partners 16 contract. 17 (Haroni Those fabric suppliers (Haroni Depo. at 56:5-11.) STAR does not know the (Haroni Depo. at 60:15-18.) When contracting with foreign trading companies, STAR informed 18 those companies that STAR designs were not to be reproduced for 19 anyone other than STAR. 20 STAR sends to trading houses for reproduction bear stamps 21 indicating that the designs belong to STAR. 22 Dec. ¶ 12., Exhibit 8.) 23 lists and invoices, indicate that STAR’s designs are copyrighted. 24 (Supplemental Dec. ¶ 13.) 25 copyright notifications, which are engraved by the trading 26 companies and/or factories that manufacture the fabric for STAR. 27 (Supplemental Dec. ¶ 14.) 28 factories commonly do not have strict pattern controls, and that (Haroni Depo. at 61:13-20.) The designs (Supplemental Haroni All STAR documentation, such as packing STAR’s physical fabrics bear physical Nevertheless, STAR is aware that foreign 7 1 these factories disseminate proprietary designs, including STAR 2 designs, as their own. 3 (Haroni Depo. at 65:15 - 67:23.) Defendants argue that STAR has created a “cottage industry” of 4 filing infringement lawsuits in violation of the public policy 5 embedded in copyright. 6 such, Defendants’ theory appears to be that STAR intentionally 7 distributes its designs to foreign factories with the knowledge 8 that those factories will disseminate STAR designs without 9 authorization. (Opp. at 3,6-7.) Though not articulated as Those unauthorized producers will then mislead 10 customers, such as Defendant Morex, as to the provenance of a 11 design. 12 not copyrighted, proceed to innocently infringe, resulting in 13 litigation by STAR. 14 Factory customers will then, believing that a design is Though such a theory is plausible to some degree, the evidence 15 in the record does not establish that STAR intentionally subverts 16 its own copyright in an attempt to ensnare innocent infringers. 17 The only evidence Defendants put forth to support their claim is 18 STAR’s ignorance of the names of the fabric manufacturers in Korea 19 and China and knowledge that factories sometimes reproduce designs 20 without authorization. 21 has no contact with those manufacturers because STAR contracts with 22 foreign trading companies, who then in turn source the work to the 23 factories. 24 seeks to protect its copyright through verbal admonitions against 25 unauthorized reproduction, notification of design ownership on sale 26 documentation, and physical indicia of design ownership on the 27 fabric itself. 28 find that STAR misused its copyright. However, the evidence is clear that STAR In its interactions with those trading companies, STAR On such a record, no reasonable trier of fact could 8 1 2 3 IV. Conclusion For the reasons stated above, Plaintiff’s Motion for Partial Summary Judgment is GRANTED. 4 5 IT IS SO ORDERED. 6 7 8 Dated: September 22, 2011 DEAN D. PREGERSON 9 United States District Judge 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 9

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