417 F. Supp.2d 248
No. 05 Civ. 7043(SAS).United States District Court, S.D. New York.
October 27, 2005.
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[EDITORS’ NOTE: THIS PAGE CONTAINS HEADNOTES. HEADNOTES ARE NOT AN OFFICIAL PRODUCT OF THE COURT, THEREFORE THEY ARE NOT DISPLAYED.]West Page 250
Robert L. Epstein, Jason M. Drangel, William C. Wright, Epstein Drangel Bazerman James, LLP New York City, Washington, DC (Laurence Singer, of counsel), for Plaintiff.
Stephen Huff, Esq. Tom J. Ferber, William Charron, Colleen E. Parker, Pryor Cashman Sherman Flynn, LLP, New York, City, Louis P. Petrich, Vincent Cox, Leopold, Petrich Smith, Los Angeles, CA, for Defendants.
OPINION AND ORDER
SCHEINDLIN, District Judge.
Clonus Associates seeks a preliminary injunction against defendants DreamWorks, LLC and Warner Brothers Entertainment, Inc. Plaintiff alleges that defendants infringed the copyright of its 1979 movie, Parts: The Clonus Horror (“Clonus“) through production and distribution of The Island, a movie released by defendants in July 2005.
I. BACKGROUND
On July 6, 2005, plaintiff sent a letter to defendants to “formally place Defendants on notice that any release of The Island constituted copyright
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infringement.”[1] DreamWorks responded by denying any wrongdoing, and Warner Brothers did not respond.[2] On August 8, 2005, plaintiff filed a complaint alleging copyright infringement under the Copyright Act of 1976,[3] followed by a motion for preliminary injunction on August 19.[4]
II. LEGAL STANDARD
A preliminary injunction is an extraordinary measure that should not be routinely granted.[5] This drastic remedy is available only when a party can demonstrate: (1) probability of irreparable harm in the absence of injunctive relief and (2) either a likelihood of success on the merits of the claim, or a serious question going to the merits and a balance of hardships tipping decidedly in plaintiff’s favor.[6]
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A. Irreparable Harm
The party requesting a preliminary injunction “must show not only that irreparable injury is possible, but that it is likely.”[7] Irreparable harm is defined as “an injury that is not remote or speculative but actual and imminent, and `for which a monetary award cannot be adequate compensation.'”[8] In the Second Circuit, a
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prima facie case of copyright infringement generally gives rise to a presumption of irreparable harm.[9] Thus, “the requirement of proof of irreparable harm can in such a case effectively be met by proof of a likelihood of success on the merits.”[10] This presumption exists because where illegal copying has occurred, the confusion created in the marketplace will often damage the copyright holder in incalculable and incurable ways.[11]
The presumption of irreparable harm that arises with a prima facie
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case of copyright infringement “falls when opposing evidence is offered.”[12] For example, the presumption “vanishes if the copyright holder unreasonably delays prosecuting his infringement claim.”[13] The presumption of irreparable harm may also be rebutted if “`the plaintiff’s damages appear to be trivial.'”[14] If a defendant successfully rebuts the presumption, the burden of proof reverts to plaintiff to prove irreparable harm.[15]
B. The Merits
To prevail on a claim of copyright infringement, a plaintiff must establish “(1) ownership of a valid copyright, and (2) copying of constituent elements of the work that are original.”[16] A certificate of registration made before or within five years of publication of a work is prima facie evidence of the first element.[17] Because direct evidence is seldom available to prove the second
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element, a plaintiff may establish copying with indirect evidence.[18] To support an inference that copying took place, the indirect evidence must demonstrate both that the person who composed the defendant’s work had access to the copyrighted material, and that there is substantial similarity between the two works.[19]
1. Access
Access to a copyrighted work may be inferred from the fact that a work was widely disseminated at the time of copying.[20]
If the infringed work has not been widely disseminated, a plaintiff can prove access by showing “a particular chain of events or link by which the alleged infringer might have gained access to the work.”[21] Finally, there are certain limited
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situations in which a plaintiff need not prove access at all, because the similarities between the two works are so “striking” that they alone serve “both to justify an inference of copying and to prove improper appropriation.[22]
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“Access means that an alleged infringer had a `reasonable possibility’ — not simply a `bare possibility’ — of hearing [or seeing] the prior work; access cannot be based on mere `speculation or conjecture.'”[23] In the Second Circuit, a plaintiff must generally prove that the creators themselves, and not only an affiliated corporation, had access to the work that was allegedly copied.[24]
2. Substantial Similarity
In determining whether two works are similar enough to prove copying, courts in the Second Circuit have applied an ordinary observer test.[25] Courts must ask “whether an average lay observer would recognize the alleged copy as having been appropriated from the copyrighted work.”[26] The Second Circuit has noted that this is “a task generally performed after detailed examination of the works themselves.”[27] A court must examine the alleged
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similarities “in such aspects as the total concept and feel, theme, characters, plot sequence, pace and setting.”[28]
It is beyond dispute that copyright protection extends only to the expression of ideas, and not to the ideas themselves.[29] In addition, “scenes a faire,” which have been described as “thematic concepts . . . which necessarily must follow from certain plot situations,” are not entitled to copyright protection.[30] In determining whether the similarities between two works constitute “more than mere generalized ideas or themes,”[31] courts should be aware that
dissimilarity between some aspects of the works will not automatically relieve the infringer of liability, for “no copier may defend the act of plagiarism by pointing out how much of the copy he has not pirated.” It is only when the similarities between the protected elements of plaintiff’s work and the allegedly infringing work are of “small import
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quantitatively or qualitatively” that the defendant will be found innocent of
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infringement.[32]
Yet, a plaintiff must establish that the similarities between the two works amount to more than “random similarities” that “are of little importance in the works.”[33] Substantial similarity will be found if “`the ordinary observer, unless he set out to detect the disparities, would be disposed to overlook them, and regard [the works’] aesthetic appeal as the same.'”[34]
3. Independent Creation
Once a plaintiff establishes a prima facie case of copyright infringement using either direct or indirect evidence, a defendant may rebut the finding by proving independent creation of the alleged copy.[35] “In analyzing this affirmative defense, the fact-finder must be mindful that `subconscious’ or `innocent’ copying is still copying.[36]
III. DISCUSSION
In evaluating whether plaintiff will likely suffer irreparable harm, the
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initial inquiry is whether plaintiff has made a prima facie showing of copyright infringement. Clonus Associates claims that the evidence it has proffered supports such a finding, creating a presumption of irreparable harm.[37] Defendants contest every pertinent factual claim, arguing that plaintiff has failed to establish copying, access, or probative similarity, and asserting that defendants can prove independent creation of The Island.[38] I have considered all of these issues, and I am left with significant concerns that the similarities between the two movies indicate copying. But it is unnecessary to engage in a full analysis of the merits of plaintiff’s copyright claim at this stage in the litigation.[39] Even if plaintiff can demonstrate a likelihood of success on the merits, the motion for preliminary
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injunction will fail because at this stage it has only shown minimal harm.[40] Any presumption
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of irreparable harm is thus rebutted, and plaintiff has failed to meet the burden of affirmatively proving that Clonus Associates will suffer irreparable harm in the absence of preliminary injunctive relief.
Plaintiff’s arguments about irreparable harm are limited to conclusory assertions that: (1) the value of the Clonus
copyright is destroyed because there is typically only one opportunity to profit from a remake of a movie; (2) Clonus
creators are suffering damage to their careers and reputations; and (3) defendants’ actions are creating marketplace confusion.[41] While each of these arguments
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might be persuasive in a different context, they do not establish more than minimal harm here due to the peculiar nature of this dispute evaluated on the basis of the current record.
A. Value of the Copyright
Plaintiff’s first claim is that “the entire value” of its copyright is being destroyed because in Hollywood, there is generally only one opportunity for a successful remake.[42]
Plaintiff states that “at one time” a studio considered turnin Clonus into a TV series, and claims that a movie generally preempts a television series on a similar concept.[43]
Defendants contend that this claim about the entertainment industry is factually untrue.[44] But more importantly, plaintiff’s claim is unsupported by concrete evidence. Courts in this Circuit have frequently rejected such speculative arguments in deciding whether to issue a preliminary injunction.[45]
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Nor has plaintiff provided any theory as to how a preliminary injunction would remedy the alleged diminution in the value of its copyright. Whatever harm the distribution of The Island
might cause to the value of the Clonus copyright “has already occurred in virtually all material respects,” because The Island has been on the market
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since July 22.[46] Plaintiff was not able to explain how a preliminary injunction would prevent or correct any devaluation of its copyright, and focused instead on the desire to prevent defendants from profiting unfairly.[47]
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B. Damage to Careers and Reputations
Plaintiff’s second argument is that Clonus creators are suffering damage to their careers and reputations by not receiving credit for what was allegedly copied.[48] It is fair to presume that an artist whose work has been copied will usually suffer incalculable harm if she does not receive credit for her creation. But under New York law, a partnership such as Clonus Associates cannot claim the damages of its individual members.[49]
Even if the Court could rely on this argument, at this stage it would only support a finding of minimal harm. Plaintiff does not provide any evidence about how the alleged reputational harm is occurring. I assume the creators of Clonus believe that if they were given credit in The Island, its marketing and distribution would have improved their reputations among film producers and others in the movie industry.[50] The problem is that the bulk of such harm has
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already occurred. The Island has been playing in theaters for several months. Only the release to home video, pay-per-view and pay cable is yet to occur.[51] Those in the film industry who control the “future employment opportunities” that Clonus
creators are allegedly “losing out on” are not waiting to se The Island until it is released on DVD.[52] Thus, even if Clonus Associates was able to raise the claims of its individual members, any harm to the careers and reputations of Clonus
creators would not increase between now and a decision of this matter on the merits.[53]
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C. Marketplace Confusion
Plaintiff has demonstrated that various observers publicly questioned
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whether The Island was a remake of Clonus.[54] In most copyright cases, such “marketplace confusion” is presumed to create harm for a copyright holder. Judge Henry Friendly outlined the reasons for this inference in a case about the copying of an expensive camera.[55] Marketplace confusion between two cameras, he explained, can erode the plaintiff’s profit whenever customers purchase the copy instead of the original, and these damages can be difficult to quantify after the fact.[56]
Confusion between products can also “cause purchasers to refrain from buying either product and to turn to those of other competitors. . . . Furthermore, if an infringer’s product is of poor quality . . . a more lasting but not readily measurable injury may be inflicted on the plaintiff’s reputation in the market.”[57]
Marketplace confusion between two movies, by contrast, does not lead inexorably to a finding of irreparable harm. In contrast to the purchase of an expensive camera, the purchase of one DVD is not likely to preclude the purchase of another. And unlike confusion between two cameras, marketplace confusion about the alleged connection between these movies is not as likely to affect
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consumer judgments about the quality of either. Finally, there is evidence here that any confusion has actually benefitted Clonus
by bringing it increased publicity. Although it was produced in 1979, a DVD of Clonus was first released in March, 2005.[58] The publicity and sales of this DVD appear to have been enhanced as a result of marketplace confusion:
“Sales have definitely picked up,” reports Pete Tombs of Mondo Macabro, distributor of the DVD. He says people who’d experienced the flick years earlier — or saw it lampooned on “Mystery Science Theater 3000” — are getting their memories jogged by the “Island” buzz, and that the company’s getting plenty of e-mails. “Many of them along the lines of, `I always knew it was a great idea. Now we see Hollywood had finally realized this, too!” Tombs says this kind of publicity is very unusual for his small, niche company . . . [s]o it plans to reissue “Clonus” with a new cover that includes some of the recent press remarks.[59]
Indeed, plaintiff was unable to provide an explanation as to why the alleged marketplace confusion would create any harm to Clonus Associates, much less the required likelihood of irreparable harm.[60]
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I recognize the importance of the general presumption that copyright infringement creates irreparable harm. When a
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copyright is violated, there will usually be damages that are incalculable and incurable, and courts must be guided by the notion that “[t]he Copyright Law does not condone a practice of `infringe now, pay later.'”[61]
Nonetheless, under the peculiar circumstances presented here, plaintiff has failed to prove that it is entitled to a preliminary injunction, which is “one of the most drastic tools in the arsenal of judicial remedies.”[62]
Regardless of the eventual resolution of the copyright dispute, I cannot find that Clonus Associates will likely suffer irreparable harm prior to that resolution.[63]
IV. CONCLUSION
For the reasons set forth above, plaintiff’s motion for preliminary injunction is denied, and the Clerk of the Court is directed to close the motion. The parties shall immediately commence expedited discovery, to conclude within sixty days of this Order. A conference is scheduled for January 4 at 4:30 to schedule a trial or a fully dispositive motion. Any discovery disputes that cannot
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be resolved by the parties should be raised immediately with this Court. The case is referred to Magistrate Judge Henry B. Pitman solely to conduct settlement negotiations.
SO ORDERED:
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