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Practice Management Information Corp. v. American Medical Ass'n

Citations: 877 F. Supp. 1386; 1994 WL 763947Docket: CV 94-3107 DT (GHKx)

Court: District Court, C.D. California; December 8, 1994; Federal District Court

Narrative Opinion Summary

This case involves a legal dispute between Practice Management Information Corporation (PMIC) and the American Medical Association (AMA) regarding the copyright validity of the 'Physicians' Current Procedural Terminology' (CPT). PMIC sought a declaration that the AMA's copyrights on the CPT were invalid, arguing that federal mandates requiring CPT codes for reimbursement rendered the copyrights unenforceable. The AMA countered with a motion for partial summary judgment, asserting the CPT's copyright validity. The court granted the AMA's motion, reaffirming that the CPT's copyright is protected, despite its incorporation into government programs as a reference tool, and does not transform it into a 'law' under the Copyright Act. Furthermore, the court dismissed PMIC's copyright misuse claim, finding no evidence of antitrust violations in the AMA's licensing agreement with the Health Care Financing Administration (HCFA). The court emphasized that the CPT remains a copyrighted work, and its integration into federal regulations does not negate its copyright status. As a result, PMIC's cross-motion for summary judgment was denied, and the AMA's rights over the CPT were upheld.

Legal Issues Addressed

Copyright Misuse Defense

Application: The court rejected PMIC's claim of copyright misuse regarding the AMA's licensing agreement with HCFA, finding no violation of public policy or evidence of antitrust violations.

Reasoning: PMIC's claim of copyright misuse related to the AMA's exclusive dealing arrangement with HCFA is dismissed, as the Agreement does not constitute copyright misuse according to the Court's interpretation of the facts.

Copyright Protection of Private Works

Application: The court affirmed that the AMA's CPT qualifies for copyright protection despite being mandated for use in federal programs.

Reasoning: The Court has previously ruled that the CPT qualifies for copyright protection.

Government Use of Copyrighted Materials

Application: The court upheld that the government can use copyrighted materials like the CPT without affecting their copyright status.

Reasoning: The Copyright Act specifically excludes federal statutes and judicial opinions from copyright protection, but allows for the government to utilize copyrighted materials without affecting their copyright status.

Incorporation of Private Works into Government Regulations

Application: The court determined that incorporation into government regulations does not transform the CPT into a 'law' under the Copyright Act.

Reasoning: PMIC argues that the CPT should be exempt from copyright because it is incorporated into government statutes and regulations; however, the Court disagrees, stating this would undermine the copyrights of other privately developed works.

Summary Judgment Standards

Application: The court granted the AMA's motion for partial summary judgment, emphasizing the need for the opposing party to present specific facts demonstrating genuine issues of material fact.

Reasoning: The document also outlines the standard for summary judgment under Rule 56(c) of the Federal Rules of Civil Procedure, emphasizing that the moving party must show the absence of genuine fact issues, while the opposing party must present specific facts to demonstrate such issues exist.