Source: https://law.justia.com/cases/federal/district-courts/FSupp/269/605/1800968/
Timestamp: 2019-04-19 08:54:52
Document Index: 389961167

Matched Legal Cases: ['§ 7', '§ 13', '§ 1338', '§ 115', '§ 101', '§ 116']

Key West Hand Print Fabrics, Inc. v. Serbin, Inc., 269 F. Supp. 605 (S.D. Fla. 1966) :: Justia
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Key West Hand Print Fabrics, Inc. v. Serbin, Inc., 269 F. Supp. 605 (S.D. Fla. 1966)
US District Court for the Southern District of Florida - 269 F. Supp. 605 (S.D. Fla. 1966)
269 F. Supp. 605 (1966)
*606 *607 *608 James L. Guilmartin and Stanley Jay Bartel, of Guilmartin & Bartel, and M. A. Baskin, Miami, Fla., for plaintiff.
Eugene C. Heiman and Richard E. Reckson, of Heiman & Heiman, and Edwin M. Ginsburg, of Myers, Kaplan & Porter, Miami, Fla., for defendant.
This action was brought by Key West Hand Print Fabrics, Inc. v. Serbin, Inc. for copyright infringement of fabric designs known as "Bougainvilla," "Zuzek Rose Butter," and "Dragon,"[1] and for unfair competition.
The "Zuzek Rose Butter" rendering was accomplished by an artist drawing the "Zuzek Rose" portion freehand out of her head. Thereafter, a number of additional designs of a similar nature *609 were drawn and photographed. The photographs were then artistically arranged and an acetate made of this portion of the design. Superimposed on the "Zuzek Rose" portion of the design were butterflies added in an artistic arrangement.
When these composite designs were hand printed on the fabric, they were sufficiently original in creation and arrangement for copyright protection within the purview of Title 17 U.S.C.A. § 7. H. M. Kolbe Co., Inc. v. Armgus Textile Company, Inc., 2 Cir. 1963, 315 F.2d 70, 99 A.L.R.2d 390; Dan Kasoff, Inc. v. Novelty Jewelry Co., Inc., et al., 2 Cir. 1962, 309 F.2d 745; and Peter Pan Fabrics, Inc. v. Dixon Textile Corporation, 2 Cir. 1960, 280 F.2d 800.
The defendant had the burden of proving that the notice of copyright could have been incorporated in the body of the design instead of the selvage. Cortley Fabrics Company Inc. v. Slifka, et al., 138 U.S.P.Q. 110, S.D.N.Y., affirmed per curiam, 2 Cir. 1963, 317 F.2d 924. This it failed to do; and under such circumstances, the placing of the copyright notice on the selvage has been repeatedly approved. Peter Pan Fabrics, Inc. v. Martin Wiener Corp., 2 Cir. 1960, 274 F.2d 487; Peter Pan Fabrics, Inc. v. Dixon Textile Corp., supra; Peter Pan Fabrics, Inc. v. Puritan Dress Co., Inc., S.D.N.Y.1962, 207 F. Supp. 563.
The defendant, however, makes a further double thrust: first, that the demonstration of the original drawing of the work which was ultimately copyrighted to a prospective purchaser for the purpose of inducing that purchaser to buy material imprinted with the design was a publication within the meaning of the Act; and second, that the publication of the design in a promotional magazine article utilized as an advertisement by the manufacturer of dresses imprinted *610 with the design with the knowledge and encouragement of the copyright holder, without the statutory mark, was a dedication of the design to the public.
In any event, under the circumstances here shown, the exhibition of the renderings to Miss Pulitzer to get her opinion or reaction was not a publication resulting in a dedication of the expression of the idea to the public. Even a limited distribution of copyrighted material to prospective purchasers for sales purposes has been held not to affect a forfeiture. Burnett v. Lambino, S.D.N. Y. 1962, 204 F. Supp. 327.
Relying on Title 17 U.S.C.A. § 13,[2] defendant insists that the plaintiff's delay in complying with the Act's requirements and alleged misstatements in the application invalidate the copyrights.
In November 1962, both "Dragon" and "Zuzek Rose Butter" were published. The original publication date, stated in the application to have been December 31, 1962, was in error. There was no showing, however, that this was other than an innocent misstatement, unaccompanied by fraud or intent to extend the statutory period of copyright protection and does not, therefore, invalidate the copyright. Advisors, Inc. v. Wiesen-Hart, Inc., 6 Cir. 1956, 238 F.2d 706; cert. den. 1957, 353 U.S. 949, 77 S. Ct. 861, 1 L. Ed. 2d 858.
The "Dragon" design was deposited in the copyright office on March 11, 1963, and "Zuzek Rose Butter" on May 8, 1963. Defendant notes that some of the plaintiff's fabrics had a copyright notice of "Key West Fabric Company" and that the corporate name "Key West Hand Print Fabrics, Inc." didn't come into existence until early March 1963. Defendant also takes the position that plaintiff permitted eleven months to elapse before bringing suit, and this, with plaintiff's delay in completing its registration, induced the defendant to continue to sell the infringing articlesthus, the action is barred by laches.
The delay in registration was explained by the plaintiff as the result of production problems. So-called "Lilly's" became the rage of the dress-buying public in late 1962 and early 1963, and the demands on the manufacturing of fabric in Key West was great. In any event, registration in the copyright office is only a prerequisite to suit and does not affect the efficacy of the copyright itself. Washingtonian Publishing Company v. Pearson, 306 U.S. 30, 59 S. Ct. 397, 83 L. Ed. 47.
While it is true that the company's original name, "Key West Fabric Company," was changed by charter amendment to "Key West Hand Print *611 Fabrics, Inc." and some of the material with the new name may have appeared before the official change of name took place in the Secretary of State's office, this does not affect the validity of the copyright. Indeed, it is not necessary that the owner's true name be used at all so long as a name with which it is identified is used and no innocent persons are mislead. Moreover, the defendant was a knowing infringer and aware of the existence of the copyright. Dan Kasoff, Inc. v. Novelty Jewelry Company, Inc., et al., supra; Scarves by Vera, Inc. v. Fabrex Corp., S.D.N.Y.1961, 129 U.S. P.Q. 395.
That the defendant was an infringer would seem abundantly established. However, it takes the position, succinctly stated, that its articles are as similar to the public domain material as they are the copyrighted material, and thus, there is no infringement. Differences in the garments manufactured of plaintiff's material by Lilly, as compared with the garments manufactured by the defendant, are pointed out, i. e., in the "Dragon" design the Lilly background is full of intricate detail while the defendant's is not; the subjects appear to be arranged and planned differently on the cloth; Lilly has a symmetrical pattern while the subjects in the design imprinted on the defendant's are scattered; the dragon's features are different, etc. In the "Zuzek Rose Butter" the butterflies are different; the rose background is such that at a distance it becomes indistinguishable as a design, etc. In sum, the defendant denies that it copied any original or conceptual "expression" of the plaintiff.
The defendant has stated "with tongue in cheek" that it assumes "that the court is proficient in buying women's dresses since it refused to permit experts to lend their advice to the court on the subject of the means used to attract the eye of the female buyer." While the court may lack such proficiency, it is not a disqualifying judicial requisite, for in copying a copyright the test is that of an ordinary observer, not an expert. Here the differences in design are purely incidental and anyone who did not set out to detect the disparities might well overlook them and regard the aesthetic appearances as the same. Peter Pan Fabrics, Inc. v. Martin Wiener Corp., supra; and Doran v. Sunset House Distributing Corp., S.D.Cal.1961, 197 F. Supp. 940, 947.
*612 In addition to the infringement counts, plaintiff asserts a claim for unfair competition under Title 28 U.S.C.A. § 1338(b).[4] There was no showing that the defendant palmed off its dresses as being the product of the plaintiff or misrepresented to the public that it manufactured "Lilly's." On the contrary, each dress had a Serbin tag sewed into the garment, a hand tag affixed indicating it was manufactured by Serbin, and was on a Serbin hanger. While the defendant knowingly copied plaintiff's designs and color combinations and used them in making dresses and sold them at a price lower than the plaintiff did, this does not constitute unfair competition. Cheney Brothers v. Doris Silk Corporation, 2 Cir.1929, 35 F.2d 279; cert. den. 281 U.S. 728, 50 S. Ct. 245, 74 L. Ed. 1145. See also the recent cases of Sears Roebuck & Co. v. Stiffel Co., 1964, 376 U.S. 225, 84 S. Ct. 784, 11 L. Ed. 2d 661; and Compco Corp. v. Day-Brite Lighting, Inc., 1964, 376 U.S. 234, 84 S. Ct. 779, 11 L. Ed. 2d 669. Plaintiff attempts to distinguish this case because of a special relationship between the plaintiff and defendant through its principal customer, Lilly, (because Lilly bought her fabrics from the plaintiff and had her garments manufactured in a plant which was owned one-half by the defendant through its employees). But this did not create or constitute a confidential relationship between the plaintiff and defendant which is essential for a holding of unfair competition in this category of cases.
"(b) To pay to the copyright proprietor such damages as the copyright proprietor may have suffered due to the infringement * * *."
During the period March 1, 1963 to May 25, 1963, Lilly purchased from the *613 plaintiff 4,000 yards per week of fabric imprinted with handscreen print designs. This order was for an assortment of designs, fifteen in number, including the two in question. Lilly had the right to, and did from time to time, change the quantity of particular designs that were ordered from plaintiff, and the order was subject to cancellation at any time.
Defendant relies on negativesthat plaintiff did not exert any effort to develop new markets, and that there was no showing that other manufacturers refused to purchase the designs. In the face of the deliberate infringements of the defendant and the consequent result, these arguments are not persuasive.
The plaintiff's claim for loss of future profits was bottomed upon the cancellation of the Zuzek Rose Butter and Dragonfly portion of the Lilly order. Plaintiff kept no record of its actual production, either by the yard or by design. To establish the total number of yards of fabric of all designs produced during the period March 1 to May 25, 1963, plaintiff assumed three work shifts a day, each shift producing 442½ yards of assorted fabric design, or 1,327½ yards per day, or better than 9,000 yards per week, although the total production capacity of the plant was supposed to have been 7,000 yards per week.
To determine the amount of each design in question produced, plaintiff's packing slips were examined and showed that for the period November 1, 1962 to May 25, 1963, plaintiff shipped 13,712½ yards of Zuzek, 6,254¾ yards of Dragonfly and 16,519 yards of unknown assorted fabric designs to Lilly. To determine the amount of each design shipped to Lilly, plaintiff assumed that the known fabric shipped would be in the same ratio to production as the unknown, and thus allocated the 16,519 yards of unknown fabric accordingly, arriving at the conclusion that 17,766½ yards of Zuzek and 6,654¾ yards of Dragonfly were produced in the period November 1, 1962 to May 25, 1963, although this did not take into account the yardage sold in the retail shop on which plaintiff maintained no records.
To arrive at plaintiff's net profit per yard of fabric, plaintiff attempted to establish its cost of production using the period March 1 to May 25, 1963 only. *614 The cost figures in plaintiff's answers to interrogatories were different from those given at the trial, and again different from those submitted in rebuttal. The basic method utilized was, however, the same.
The fallacy of this method is demonstrated by the distortions it produced, i. e., the cost of the fabric to plaintiff for production of Zuzek ranged from 30 cents a yard in March 1963 to $14.53 a yard in June 1963. This also disputes plaintiff's claimed cost per yard for cotton broadcloth fabric of $.455 per yard. Plaintiff also submitted that it produced no Dragonfly in November 1962 but had direct costs of $377.57, yet Dragonfly was produced thereafter but there was no cost allocated to this production.
While it is true that the Court may make a just and reasonable estimate of the damage based upon inferential as well as direct proof because the wrongdoer should bear the risk of any uncertainty in computing damages which his wrong has created, nevertheless, damages cannot be based on speculation and guesswork even though the defendant by his own wrong has precluded a more precise computation. Bigelow, et al. v. RKO Radio Pictures, 327 U.S. 251, 66 S. Ct. 574, 90 L. Ed. 652.
*615 Here then we have a situation where the defendant deliberately reproduced and appropriated to its own use plaintiff's two copyrighted fabric designs which unquestionably resulted in substantial loss of profits to the plaintiff, but made none for the defendant, and because of factors over which the plaintiff had no control, it was unable to prove with legal precision its damages. "However, the statute[5] anticipates precisely that situation * * * by empowering the Trial Court, in its discretion, `in lieu of actual damages and profits' to award damages as appear just." Peter Pan Fabrics, Inc. v. Jobela Fabrics, Inc., 2 Cir. 1964, 329 F.2d 194.
Thus, the statute allows "the owner of a copyright some recompense for injury done him, in a case where the rules of law render difficult or impossible proof of damages or discovery of profits." Douglas, et al. v. Cunningham, et al., 294 U.S. 207, 55 S. Ct. 365, 79 L. Ed. 862. See also F. W. Woolworth Co. v. Contemporary Arts, Inc., 344 U.S. 228, 73 S. Ct. 222, 97 L. Ed. 276.
There is no doubt but that liability attaches in respect of each copyright that was infringed, and the damages are to be such as the court shall appear to be just. Consideration of the nature of the copyrights, the circumstances of the infringement and the like is the measure of damages to be paid. L. A. Westermann Co. v. Dispatch Printing Company, 249 U.S. 100, 39 S. Ct. 194, 63 L. Ed. 499. I entertain no doubt, on the state of this record, that the plaintiff's damages far exceeded $5,000.00 as to Zuzek and $5,000.00 as to Dragonfly as a result of the infringement of each copyright, but the assessment under the statute may not exceed these amounts.
Plaintiff also seeks full costs and a reasonable attorneys' fee as part of the costs.[6] The award of fees in copyright cases to the prevailing party is not a matter of right. Buck, et al. v. Bilkie, 9 Cir. 1933, 63 F.2d 447; Amsterdam v. Triangle Publications, Inc., 3 Cir., 1951, 189 F.2d 104, but is within the sound discretion of the court. The elements to be considered are no different than in other cases, i. e., the amount involved, time necessarily spent, skill and professional standing and reputation, but this is not to say that because the "usual charges" (as submitted by plaintiff's counsel and their experts) of performing services in this case would have been between $30,000 to $40,000, the Court must accept or assess such fees as costs. There was no continuing infringement here after notice was received by the defendant. Much of plaintiff's counsel's time was devoted to extensive discovery and attempt at proof concerning the Bougainvilla pattern, all of which was unsuccessful because of lack of an indispensable partythis having been raised by defendant at the outset. Neither was plaintiff successful as to the unfair competition count upon which time was spent. And finally, a substantial amount of time was spent in an attempt to prove both plaintiff's damages and infringer's profits, all for naught. In fact, the defendant's *616 answers to plaintiff's interrogatories disclosed higher gross sales figures than plaintiff was actually able to prove.
[1] At the trial it was determined that, as to "Bougainvilla," the copyright was registered in the joint names of plaintiff and Charles Cervantes. The latter being an indispensable party but not joined as a plaintiff, Count One must be dismissed without prejudice.
[3] Title 17 U.S.C.A. § 115(b).
[5] 17 U.S.C.A. § 101(b) provides in pertinent part:
[6] Title 17 U.S.C.A. § 116.