CA No. 09-35969
DC No. 2:07-cv-01189-RAJ
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
T
IMOTHY
S.
V
ERNOR
, an individual,
Plaintiff-Appellee,
v.
A
UTODESK
,
I
NC
., a Delaware corporation,
Defendant-Appellant.
Appeal From Judgment Of The United States District Court
For The Western District Of Washington
(Hon. Richard A. Jones, Presiding)
APPELLANT’S REPLY BRIEF
J
EROME
B.
F
ALK
,
J
R
. (No. 39087)
Email: jfalk@howardrice.com
C
LARA
J.
S
HIN
(No. 214809)
Email: cshin@howardrice.com
B
LAKE
J.
L
AWIT
(No. 211812)
Email: blawit@howardrice.com
H
OWARD
R
ICE
N
EMEROVSKI
C
ANADY
F
ALK
&
R
ABKIN
A Professional Corporation
Three Embarcadero Center, 7th Floor
San Francisco, California 94111-4024
Telephone: 415/434-1600
Facsimile: 415/677-6262
M
ICHAEL
A.
J
ACOBS
(No. 111664)
Email: mjacobs@mofo.com
G
EORGE
C.
H
ARRIS
(No. 111074)
Email: gharris@mofo.com
M
ORRISON
&
F
OERSTER
LLP
425 Market Street
San Francisco, California 94105-2482
Telephone: 415/268-7000
Facsimile: 415/268-7522
Attorneys for Defendant-Appellant Autodesk, Inc.,
a Delaware corporation
TABLE OF CONTENTS
Page
-i-
INTRODUCTION 1
ARGUMENT 3
I. THE FIRST SALE AND ESSENTIAL STEP DEFENSES
ARE INAPPLICABLE BECAUSE AUTODESK DID
NOT TRANSFER OWNERSHIP OF THE AUTOCAD
R14 SOFTWARE COPIES. 3
A. Under The Controlling Ninth Circuit Rule, Autodesk
Retained Ownership Of Its AutoCAD R14 Software
Copies Because It Expressly Retained Title To The
Copies, Barred Their Transfer, And Imposed
Material Restrictions On Their Use. 3
1. Wall Data Is The Controlling Case. 3
2. Wise Supports The Controlling Rule. 10
3. Hampton Supports The Controlling Rule. 15
B. Bobbs-Merrill Does Not Support Vernor’s Position. 15
C. Vernor’s Claim Of A Circuit Split Is Baseless. 17
D. Even If The Parties’ Contractual Arrangements
Could Be Trumped By “Economic Realities,” Vernor
Has Identified No Such Dispositive “Realities” In
This Case. 21
1. The Economic Realities Establish That CTA
Acquired A License And Not An Ownership
Interest In The AutoCAD R14 Copies. 22
2. The Absence Of A Return Requirement And
The One-Time Payment Are Neutral Facts That
Provide No Support For Vernor’s “Sale”
Theory. 24
TABLE OF CONTENTS
Page
-ii-
E. Any Limitations On The Ability Of Copyright
Owners And Their Licensees To Agree To
Limitations On Use Or Transferability Must Come
From Congress. 26
CONCLUSION 33
