Protect Your Copyright - Freedenfeld v. McTigue

 

It’s a good feeling when we’re able to show you just how important following through on protecting your rights can be… not to mention the smug satisfaction of being able to say we told you so

Warren Freedenfeld Associates, Inc. v. McTigue D.V.M., which the South Carolina Construction Law Blog has posted on, is a case that should have design professionals thinking twice about doing anything with the ownership of their creations other than granting a limited license to an owner.

The architect was retained by a client and drafted plans for a veterinary clinic. The parties executed and AIA standard form agreement, likely the B151-1997 because the opinion references an Article 6 that deems the architect the author of the plans and drawings and this all took place in 1998.

The relationship went south over disputes about payment and budgeting. The architect sent the vet a letter warning that all the plans they had produced were proprietary and that no one could use them to complete the project and demanded return of the plans. The vet responded that the plans were useless and that they had been “rolled up and discarded.”

Shortly thereafter, the architect took the step securing a copyright over the plans by filing an application with the United States Copyright Office.

In September of 1999 the parties formally terminated their disputes over payment with a written Termination Agreement and the agreement stipulated that Article 6 remained in full force and effect. The agreement also said that neither the vet nor his proposed hospital would use any of the work solely produced by the architect.

The vet hired a different architect to complete the hospital and in June of 2000, the veterinary hospital opened for business.

In 2004, the architect came across an article in Veterinary Economics featuring a drawing of the floor plan of the veterinary hospital at issue… and that the design had won a merit award. The architect went to city hall and got a copy of the building plans and concluded that his copyright had been violated.

In September of 2005, the architect filed suit in federal court against the hospital, the vet and several other parties alleging copyright infringement and other violations.

The defendants moved to dismiss based on the three-year statute of limitations contained in the copyright act. The district court granted the motion to dismiss ruling that any reasonably diligent person would have learned of the copyright infringement when the hospital opened, so the copyright claim’s three-year statute of limitations ran from that date in June of 2000. The architect appealed.

The appellate court analyzed the lower court’s determination about when a reasonable person would have been aware of the infringement and found that the availability of the plans on file and the fact that the hospital was open for a time did not amount to notice that would start the limitations clock:

“Architects have no general, free-standing duty to comb through public records or to visit project sites in order to police their copyrights.”

The court held that the record in front of them did not compel a finding that the architect had not been vigilant or that the architect had been on notice since 2000 and reversed the dismissal of the copyright claim.

The architect now has the ability to prosecute his copyright claim and if he prevails, he may ask for his attorney's fees as well. For the small cost of filing the copyright he gained this added protection… not to mention, since he retained the rights to the plans, he had the ability to request them when something went south on the project… in Illinois, if one adds these remedies to the contractor prompt payment act and the mechanics lien act - a design professional’s ability to obtain payment is drastically strengthened.

 

Proof That Copyrighting Your Work Is Important

The law provides creators a myriad of opportunities for protecting themselves and their innovations.  We’ve written before and kept our readers abreast of the opportunities to copyright work and the steps the U.S. Copyright Office is taking to ensure an easy process for engineers, architects, and other design professionals to protect their rights.  Having a registered copyright on your design opens the door to protections under the federal copyright act which ads another option that you and your attorney have in case someone uses your design without permission.

We realize that harping on this matter likely won’t convince you that it is in your best interest, which is why we are happy to be able to provide you with proof that it may become necessary.

This recent complaint, filed on October 24, details an interesting scenario.  The plaintiff is an architect who designed a single family home in connection with a sub-division development in the Chicago suburbs.  The general contractor allegedly then took those plans and used them on a house in a different subdivision without the plaintiff’s approval.  The plaintiff brought a cause of action for statutory damages against those believed to be infringing his copyright and has requested an injunction from the court to stop the practice.

The lesson is especially important for those drafting plans for use on projects that could easily be turned around and built somewhere else such as single-family homes and smaller condominium projects.  With the minimal fee for filing and obtaining copyright, it makes sense to pay the fee and get this added protection.

Some Daily Updates...

We're still in the process of transferring the site to www.illinoisconstructionlawblog.com, as we continue to improve the presentation of our blog.  We'll continue to keep posting updates and cases and should have the new interface and address up and running within the next two weeks.

Some interesting updates and some things we've missed over the past few days:

  • The Second Annual Conference on Illinois Construction Law 2008 will be taking place on July 10th and 11th at the Gleacher Center in Chicago.  More information on the program is available by following the link.  The seminar boasts some prominent speakers from the Legal field as well as the industry and looks to be a worthwhile presentation.  For those unable to make it, the seminar is offered on DVD as well.
  • The Tribune's Clout Street Blog is reporting on a cessation in the measures proposed in the Chicago City Council to require licensing for permit expediters after May's Federal allegations of bribes for permits within the city.
  • The Chicago IP Litigation Blog is reporting on a new move by the Copyright Office to begin accepting basic copyright registrations electronically.


Some Morning News

These are all a bit too short for full entries, but they are important.

The deadline on HB 2094 (The Structural Work Act) has been extended to May 31.

A bill relating to the Notary Public Act, that would lessen fraudulent transfers in Cook County by requiring the thumbprints of grantors as well as sufficient descriptions of those transferring property has been amended.  The bill had been sitting in the judiciary committee since December but has been revitalized.  Important to those concerned about records keeping - the bill requires new records under the amendment to be kept for seven years by title companies and attorneys.

Mostly Memories, Inc. v. For Your Ease Only, Inc. (7th Circ. Doc. No. 06-3560)
The Seventh Circuit has reversed a denial of attorney's fees under the prevailing party statute contained in 17 USC 505.  The plaintiff had dismissed its own case as baseless and the district court had denied the defendant's motion for fees under the act.  The appellate court found that fees were proper and that under the circumstances, a dismissal with prejudice did entitle the defendant's to attorney's fees.  For those concerned about their copyright in designs, this is a boon and another reason to follow through on protecting your work through proper registration.  The opinion is here.

Registering The Copyright

©    Maintaining the copyright in a design can give an architect or engineer another tool in ensuring payment and completion of the contract.  The right to come in and take back the designs or to seek an injunction has teeth and copyright is a limited issue in most standard form contracts.  While disputes based on the licenses and the copyright terms of the contract carry meat, the A/E might consider registering their plans with the US Copyright Office prior to turning them over to other parties.

        Having the protection of the registered copyright allows for the statutory provisions of US Copyright law to be used as well as seeking the remedy under the contract and can offer the added benefit of allowing the A/E to seek to recoup statutory damages as well as legal fees.  A short primer is available from the office, and the limited fee, especially on designs that may be used multiple times can offer an added assurance that payment in full will occur.