Masterfile Corp. v. Chaga Int'l, CASE NO. CV 12-0850-R

MASTERFILE CORPORATION, Plaintiff,

v.CHAGA INTERNATIONAL, et al., Defendants.

CASE NO. CV 12-0850-R

UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

Dated: August 10, 2012

STATEMENT OF UNCONTROVERTED

FACTS AND CONCLUSIONS OF

LAW

After consideration of the papers in support of Defendants' Motion for Summary Judgment, the papers filed in opposition to the motion and the papers filed in reply to the opposition of the motion, and after hearing the arguments of Plaintiff at oral argument on June 18, 2012, the following has been established as the Court's findings of facts in this matter.

INCONTROVERTED FACTS

1. Exhibit 1 to the motion is the complaint of the Plaintiff filed in this action. The complaint contains an "Exhibit A" which purports to consist of the copyright registrations relied upon by the Plaintiff.

2. Exhibit 2 to the motion is Copyright Registration VA 1-023-866, upon which Plaintiff relies for copyright registration of five (5) images. This registration lists Masterfile Corporation asthe author of the compilation of images covered by the registration along with a four page continuation sheet which lists an unnumbered amount of additional authors.

3. Exhibit 3 to the motion is Copyright Registration VA 1-023-869, upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a three page continuation sheet which lists an unnumbered amount of additional authors.

4. Exhibit 4 to the motion is Copyright Registration VA 1-023-877 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a four page continuation sheet which lists an unnumbered amount of additional authors.

5. Exhibit 5 to the motion is Copyright Registration VA 1-023-872 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a two page continuation sheet which lists an unnumbered amount of additional authors.

6. According to the chart in Plaintiff's complaint the next image was registered under Copyright Registration VA 1-108-991. According to the face sheet attached to Exhibit A of the complaint this registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a three page continuation sheet which lists an unnumbered amount of additional authors.

7. Exhibit 6 to the motion is Copyright Registration VA 1-145-766 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a three page continuation sheet which lists an unnumbered amount of additional authors.

8. Exhibit 7 to the motion is Copyright Registration VA 1-199-166 upon which Plaintiff relies for copyright registration of two (2) images. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a seventeen page continuation sheet which lists an unnumbered amount of additional authors.

9. Exhibit 8 to the motion is Copyright Registration VA 1-229-219 upon which Plaintiffrelies for copyright registration of four (4) images. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with a six page continuation sheet which lists an unnumbered amount of additional authors.

10. Exhibit 9 to the motion is Copyright Registration VA 1-301-526 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 217 others" as additional authors with no continuation sheet listing the additional authors.

11. Exhibit 10 to the motion is Copyright Registration VA 1-301-527 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 575 others" as additional authors with no continuation sheet listing the additional authors.

12. Exhibit 11 to the motion is Copyright Registration VA 1-303-399 upon which Plaintiff relies for copyright registration of two (2) images. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 125 others" as additional authors with no continuation sheet listing the additional authors.

13. Exhibit 12 to the motion is Copyright Registration VA 1-308-886 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 125 others" as additional authors with no continuation sheet listing the additional authors.

14. According to the chart in Plaintiff's complaint the next image was registered under Copyright Registration VA 1-308-866. It is possible that this numbering is a typographical error and the registration for this image is the same as he previous one 1-308-886.

15. Exhibit 13 to the motion is Copyright Registration VA 1-316-378 upon which Plaintiff relies for copyright registration of three (3) images. This registration lists Masterfile Corporationas the author of the compilation of images covered by the registration along with naming three individuals "and 131 others" as additional authors with no continuation sheet listing the additional authors.

16. Exhibit 14 to the motion is Copyright Registration VA 1-326-965 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 111 others" as additional authors with no continuation sheet listing the additional authors.

17. Exhibit 15 to the motion is Copyright Registration VA 1-345-179 upon which Plaintiff relies for copyright registration of two (2) images. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 109 others" as additional authors with no continuation sheet listing the additional authors.

18. Exhibit 16 to the motion is Copyright Registration VA 1-367-783 upon which Plaintiff relies for copyright registration of five (5) images. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming three individuals "and 123 others" as additional authors with no continuation sheet listing the additional authors.

19. Exhibit 17 to the motion is Copyright Registration VA 1-407-986 upon which Plaintiff relies for copyright registration of one (1) image. This registration lists Masterfile Corporation as the author of the compilation of images covered by the registration along with naming no individuals and listing "and additional authors" as additional authors with no continuation sheet listing the additional authors.

20. According to the affidavit of Nancy Wolff, the lawyer for the Picture Agency Council of America, Inc. (PACA), in 1995, Ms. Wolff and other representatives of the trade association met with staff members of the United States Copyright Office. (Declaration Ex. 20 ¶ 2.) At that meeting, Ms. Wolff outlined this mass registration procedure. (Id. ¶ 4.)

21. In 2002, Ms. Wolff once again approached the Copyright Office about the registrationpractices of her clients. (Ex. 20 ¶ 6.) In return, Ms. Wolff received a letter from Nancy Petruzzelli, Chief Copyright Examiner of the Copyright Office, (Ex. 22), which outlined the Ms. Petruzzelli's understanding of the "pattern" that stock house registrations "generally follow" and provided the Copyright Office's interpretation of that practice.

22. Ms. Petruzzelli indicated that the Copyright Office interpreted the claims to extend to "individual photographic authorship" only for those photographers identified by name in the application. (Id).

23. The first source Ms. Petruzzelli cited is the Compendium of Copyright Office Practices, Compendium II (1984). The Copyright Office identifies this now twenty-five year old document as a "manual, intended primarily for Copyright Office staff." (See http://www.copyright.gov/compendium/).

24. According to Ms. Petruzzelli, this internal manual stated that the Copyright Office preferred that a registration list all contributing authors, but that listing three authors and a reference to unnamed "others" was considered acceptable in some instances. (Ex. 22.) The second source Ms. Petruzzelli cited was Circular 62, Serials (see Ex. 18), a 2000 Circular that discussed registration procedures for serial works. (Ex. 22.).

25 Ms. Wolff then prepared an article for distribution to PACA members outlining this methodology. Declaration Exhibit 21.

26. Ms. Wolff then distributed a second article that reflected that the main impetus behind this circumvention of the plain language of Section 409 was the evasion of the requisite copyright registration fees. Declaration Exhibit 23, Update on Catalog Registration; see also Exhibit 19 Copyright Office Circular 4, Fees.

27. It appears that, according to the registrations, Plaintiff filed an initial registration for a block of photographs and then updated it periodically with additional authors pursuant to the Copyright Office regulations for registration of automated databases, 37 C.F.R. § 202.3(b)(...