Posts in Circuit Courts of Appeal

On Monday, March 4, Justice Brett Kavanaugh issued the decision for a unanimous Supreme Court in Rimini Street, Inc. v. Oracle USA, Inc., which asked whether the meaning of “full costs” under 17 U.S.C. § 505 of the U.S. Copyright Act extends to damages outside of the six categories of costs that U.S. district courts can award against a losing party as outlined in 28 U.S.C. § 1821 and 28 U.S.C. § 1920. In siding with petitioner Rimini Street, the Supreme Court held that “full costs” in the copyright litigation context are limited to Sections 1821 and 1920, reversing the Court of Appeals for the Ninth Circuit’s decision to award $12.8 million to Oracle covering litigation expenses outside of the statutory schedule of costs.

This week in Other Barks and Bites: the Senate Judiciary Committee plans to go after drug patents to promote access to generic medications; Apple faces another patent suit in the Eastern District of Texas in the midst of attempts to remove its business presence from the district; China enacts a code of conduct for patent agents; Samsung and Huawei enter into an agreement to terminate their multi-year legal battle in the Android sector; the makers of Fortnite face yet another copyright suit over dance moves; Warner Bros. strikes down a Kickstarter campaign intending to distribute edited versions of The Departed; and a Delaware jury upholds cholesterol treatment patents owned by Amgen.

This week in Other Barks & Bites: the Federal Circuit affirms a Section 101 invalidation of patent claims in favor of Mayo Collaborative Services; Apple wins an order to limit damages in Qualcomm patent case; Google frets over proposed European Union copyright rules; India proposes jail time for film piracy; patent validity challenges drag down the stock of a major pharmaceutical firm; and a snag in the U.S.-China trade talks throws Wall Street for a loop.

Early last month, the U.S. Court of Appeals for the Ninth Circuit issued a memorandum affirming the district court’s grant of partial summary judgment in Hope Road Merchandising v. Jammin Java Corporation. The Ninth Circuit’s decision upholds a nearly $2.5 million damages award for trademark infringement in favor of Hope Road, the licensing and merchandising arm for the family of the late reggae icon Bob Marley, against coffee distributor Jammin Java.

This week in Other Barks & Bites: Huawei is in hot water with both the U.S. and UK governments, while Qualcomm has just completed a new patent licensing deal with Huawei; IBM tops a new global list for most artificial intelligence-related patent applications filed; Apple files another appeal of a major patent infringement damages award handed to VirnetX in the Eastern District of Texas; and see how the biggest IP players are doing Wall Street.

Just after Capitol Records filed its complaint in this litigation, ReDigi launched a new service, called ReDigi 2.0. With ReDigi 2.0, customers would originally download iTunes music files directly from Apple onto a specific physical location on ReDigi’s server, from which they could then stream their music or download it for personal use on their own media devices.  When a customer chose to sell a digital file, ReDigi would retain the file in the same server space and simply assign “title” to the new owner.  Thus, there would be no duplication of files, and the content would be transferred along with the original physical media. For now, we don’t know the legal status of such a system because it was introduced too late for it to be reviewed in this litigation.

The Court of Appeals for the Second Circuit recently issued a decision in Capitol Records, LLC v. ReDigi Inc. affirming a previous finding out of the Southern District of New York that ReDigi’s digital music file reselling platform infringed upon the plaintiffs’ copyright to the music files being resold. The Second Circuit panel upheld the lower court’s decision over ReDigi’s arguments that its platform enabled the lawful resale of digital music files under the first sale doctrine.

Christopher Gordon, under the pseudonym “Randall,” released the Honey Badger movie in 2011 and the 3:20-long video has been viewed more than 89 million times. Gordon filed trademark applications to cover the use of the video’s well-known phrase Honey Badger Don’t Care in various classes including audio books, greeting cards, mugs and clothing. In 2012, Gordon hired a licensing agent who contacted American Greetings, the parent company of co-defendant Papyrus-Recycled Greetings, to discuss a potential licensing deal but those parties never agreed to a deal. Beginning in June 2012, the defendants released a series of seven greeting cards, including birthday, Halloween and election cards, which made use of the trademarked phrase Honey Badger Don’t Care and another well-known phrase from the video, Honey Badger Don’t Give A S—.

It’s football season, so of course we should be talking about beer. Specifically, beer secrets. For fourteen years James Clark had an enviable job at Anheuser-Busch, where he had access to the brewer’s confidential recipes. For unexplained reasons he resigned. Instead of joining a competitor, he went to see a lawyer about planning a class action against his former employer for “intentionally overstating the alcohol content” of the company’s “malt beverages.”… Anheuser-Busch sued him for misappropriation of its secrets for making beer.

Courts consistently focus on the availability of non-infringing substitutes as of the date of the hypothetical negotiation. In most of the cases reviewed, the determination of available substitutes was limited to those available at the date of first infringement. If an alternative introduced after the hypothetical negotiation was considered, its impact was discounted to reflect uncertainty as of the date of the negotiation. For example cases, please contact the author. From a review of the above cases, it is clear that the book of wisdom can be relevant and useful, but it is not always allowed by courts. Use and acceptance of the book of wisdom is case and court specific.

A closely watched cross-border trademark case finally has been resolved, and the results of the case have implications for global trademark holders. A  U.S. District Court Judge in the Eastern District of Virginia granted Bayer AG’s motion for summary judgment, dismissing rival Belmora’s claims to the trademark FLANAX. In Mexico, Bayer uses the FLANAX mark for the popular pain medication known elsewhere as Aleve (naproxen), and successfully blocked Belmora’s attempt to market its own naproxen product under the mark FLANAX in the United States. The ruling also affirms a U.S. Trial and Appeal Board ruling that cancelled Belmora’s U.S. trademark for FLANAX, which the company secured in 2005. The United States Court of Appeals for the Fourth Circuit had previously determined that the Lanham Act authorized Bayer’s claims against Belmora for unfair competition under §43(a) and its cancellation action under §14(3).

The U.S. Supreme Court has agreed to hear Mission Product Holdings Inc. v. Tempnology, LLC on appeal from the Court of Appeals for the First Circuit. The case will ask the nation’s highest court to determine whether 11 U.S.C. § 365, the statute in U.S. bankruptcy code regarding executory contracts and unexpired leases, requires that a debtor-licensor’s rejection of a trademark license agreement in bankruptcy terminates rights of the licensee that would survive the licensor’s breach under applicable non-bankruptcy law. The Supreme Court declined to take up a second question presented on whether an exclusive right to sell certain products practicing a patent in a particular geographic territory is a “right to intellectual property” within Section 365(n) of U.S. bankruptcy code.

On Friday, November 2nd, the Court of Appeals for the Eighth Circuit issued a decision in Sturgis Motorcycle Rally, Inc. v. Rushmore Photo & Gifts, Inc., et. al. which reversed various parts of the lower court’s decision in the trademark infringement case brought by Sturgis, which claimed to own trademarks covering merchandise related to a well-known motorcycle rally which has taken place in Sturgis, SD, going back to 1938. While the appellate court affirmed the district court’s denial as a matter of law to the defendants’ as to Sturgis’ claims of deceptive trade practices, false advertising and trademark infringement claims, the Eighth Circuit reversed the lower court’s findings that various marks asserted by Sturgis were valid because it found that Sturgis didn’t provide the jury with sufficient proof regarding validity.

An analysis of the Official Code of Georgia Annotated led the appellate court to find that the annotations, while not having the force of law, are part and parcel of the law. First, the Eleventh Circuit found that the Georgia General Assembly was the driving force behind the annotations in the OCGA. Although the annotations were prepared by LexisNexis, those annotations were drafted based upon highly detailed instructions contained within its publishing agreement with the Code Revision Commission, making Georgia’s legislators the creators of the annotations.

The U.S. Court of Appeals for the Second Circuit recently issued a summary order in Latin American Music Company v. Spanish Broadcasting System affirming a lower court’s judgment denying copyright infringement claims brought by music publisher Latin American Music Co. (LAMCO) against radio station owner Spanish Broadcasting System (SBS). The Second Circuit determined that LAMCO’s arguments on appeal were without merit and upheld findings that its infringement claims were either time-barred or unprovable.