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Court: US Court of Appeals for the Tenth Circuit
Docket:
23-5046
Opinion Date: April 12, 2024
Judge:
BACHARACH
Areas of Law:
Business Law, Copyright, Intellectual Property
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The case revolves around a dispute between two competitors in the construction equipment market, I Dig Texas, LLC, and Kerry Creager, along with Creager Services, LLC. I Dig Texas used copyrighted photographs of Creager's products, which were made in China, in its advertisements to emphasize its own products' American-made status. This led to claims under the Copyright Act and the Lanham Act.
Previously, the United States District Court for the Northern District of Oklahoma granted summary judgment to I Dig Texas on Creager's federal claims and remanded all of the state-law claims to state court. Creager had claimed that the use of its photographs constituted copyright infringement and that the accompanying text misrepresented the origin of I Dig Texas's products.
The United States Court of Appeals for the Tenth Circuit affirmed the lower court's decision. The court found that Creager failed to present evidence of any profit from the use of its photographs, which was necessary to establish a claim for copyright infringement. The court also found that I Dig Texas's advertisements were not literally false under the Lanham Act. The advertisements were ambiguous as to whether a product is considered American-made when it is assembled in the United States but uses some foreign components. The court concluded that such a claim is not literally false because the claim itself is ambiguous. The court also affirmed the lower court's decision to decline supplemental jurisdiction over the remaining state-law claims and remand these claims to state court.
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