Arica Institute, Inc. v. Palmer

Citations: 761 F. Supp. 1056; 18 U.S.P.Q. 2d (BNA) 2013; 1991 U.S. Dist. LEXIS 4731; 1991 WL 57897Docket: 90 Civ. 5153 (RPP)

Court: District Court, S.D. New York; April 9, 1991; Federal District Court

SummaryOriginalCytator Case TreatmentBackward CitatorAnalysis

EnglishEspañolSimplified EnglishEspañol Fácil

Plaintiff Arica Institute, Inc., a non-profit educational institution founded in 1971, alleges defendants Helen Palmer and Harper & Row Publishers, Inc. committed copyright infringement under the Copyright Act of 1976, trademark infringement under the Lanham Act, and common law unfair competition. The plaintiff sought a preliminary injunction, which was denied by District Judge Robert P. Patterson, Jr. 

Arica, founded by Oscar Ichazo, focuses on holistic training aimed at clarifying consciousness and operates 40 franchise training centers globally, enrolling approximately 250,000 students since its inception. Ichazo's teachings, based on his extensive background in various spiritual traditions, introduced the concept of 'ego fixations' and utilized 108 enneagrams as a method to explore the human psyche. 

The organization has registered eight volumes of Ichazo's lectures with the Copyright Office and has obtained copyright for about 46 works, including training manuals that are not publicly available and must be returned by students post-training. Defendant Helen Palmer, a psychology professor, reportedly had a conflict with Ichazo regarding the adaptation of his teachings to contemporary psychology.

Palmer testified that Naranjo selected the English terminology for Ichazo's enneagram points, as Ichazo had limited English proficiency during his lectures in Chile. After 1971, both Ichazo and Naranjo taught enneagram theory through 'intense, small group psychological growth work.' Palmer began studying with Naranjo in 1973, although she had prior knowledge of enneagrams from her involvement with the Gurdjieff Society since 1965. She stated that the enneagram diagram is closely associated with Gurdjieff, who taught that its nine points corresponded to the Seven Deadly Sins and, according to Palmer, two additional sins identified by Ichazo: self-love and fear. Gurdjieff also defined nine personality types or 'chief features' based on the enneagram.

After studying with Naranjo, Palmer believed Ichazo's teachings were derived from Gurdjieff's ideas but presented as original. She began teaching enneagram theory in 1974 and established the Center for the Investigation and Training of Intuition (CITI) in Berkeley, California, with an annual enrollment of around 1,500 students, mostly from psychology backgrounds. Her book, The Enneagram, published in November 1988, describes nine personality types and their interrelationships, offering insights for personal and interpersonal understanding. The book is structured into two main sections and includes a preface, appendix, and notes.

Palmer equates Ichazo's nine 'ego fixations' with personality types and acknowledges Ichazo's arrangement of these types on the enneagram as valid. Each of the nine chapters in her book, titled with contemporary psychological terms, details personality types and includes lists of positive traits and areas for improvement. Her research sources encompass Naranjo's lectures, Gurdjieff's teachings, a chapter from Tart's Transpersonal Psychologies, interviews with Ichazo, and feedback from her students. Palmer has not participated in Arica training or reviewed Arica materials at the Library of Congress, except for limited exposure to Ichazo's interviews. Following the initiation of a lawsuit, HarperCollins planned to release 35,000 paperback copies of The Enneagram in March 1991.

The paperback edition of *The Enneagram* closely mirrors the hardcover version, differing primarily in its soft cover and including a notice clarifying that neither Palmer nor HarperCollins is affiliated with Arica, nor is the book endorsed by the Arica Institute or Oscar Ichazo. HarperCollins distributed about 21,000 copies of the paperback from March 11-14, 1991, mainly to fulfill back orders. Publishing expert Lewis Gillenson indicated that trade paperbacks typically outsell hardcovers by a ratio of 5:1 or 6:1, while HarperCollins' vice-president William Baker noted a 1:1 sales relationship between hardcovers and trade paperbacks.

Arica and HarperCollins began correspondence in June 1988, prior to the hardcover's release, with Arica providing various copyright materials and comparisons. Arica filed a complaint on August 6, 1990, and subsequently served interrogatories regarding specific copyrighted expressions allegedly copied. Arica's detailed response to these interrogatories was not submitted until March 12, 1991, during a hearing for a temporary restraining order against the paperback's release, which the Court denied. 

The Court characterized Arica's attempt to block the paperback as a move against 'heresy' rather than copyright infringement. Testimony from Arica's Executive Director, Elliott Dunderdale, indicated that Palmer's work caused confusion among individuals familiar with Arica's training. The Court found that Arica failed to demonstrate a likelihood of success on the merits, determining that Ichazo's ego fixation system and related expressions are not copyrightable, that most alleged copying lacks substantial similarity, and that any few instances of copying are protected by fair use. The Court affirmed Palmer's right to express her interpretations of enneagram analysis regardless of their alignment with Arica's philosophy.

Fair use of copyrighted materials is defended by the analogy that a "dwarf standing on the shoulders of a giant can see farther than the giant himself," underscoring the validity of derivative works. To obtain a preliminary injunction, a moving party must demonstrate (1) irreparable harm and (2) either (i) a likelihood of success on the merits or (ii) sufficiently serious questions regarding the merits that favor the party's position, as established in Jackson Dairy, Inc. v. H.P. Hood, Sons. In copyright cases, irreparable harm is often presumed, as per Hasbro Bradley, Inc. v. Sparkle Toys, Inc. However, the Court determined that Arica failed to meet the second criterion regarding the likelihood of success on the merits.

The elements of a copyright infringement claim include ownership of a valid copyright and unauthorized copying by the defendant. The defendants do not dispute the validity of Arica's copyrights but argue that much of the claimed infringement involves unprotectable elements under Section 102(b) of the Copyright Act, which excludes protection for ideas, methods, or concepts. Copyright law only protects the specific expression of an idea, as noted in Reyher v. Children's Television Workshop. Courts have ruled that mere similarities based on abstract ideas or systems do not constitute infringement, as seen in Gund, Inc. v. Smile Intern. Inc. 

Dunderdale acknowledged that the Arica system is akin to a philosophy, and Ichazo's ideas reflect a theory of nine ego fixations. The Enneagram by Helen Palmer also presents a theory of nine personality types. Arica claims Palmer infringed copyright by using similar terminology to describe these types but lacks originality in the method of description. The Court noted that the use of common terms, such as "inner critic" and "correctness," does not grant Arica exclusive rights. Moreover, the order of the points on an enneagram is not protected under copyright law, as illustrated by Mihalek Corp. v. State of Michigan. The Court recognized that these terms also appear in other personality systems, such as astrology.

Dunderdale identified an enneagram as a 'list of nine things.' Palmer’s arrangement of these nine points sequentially does not infringe copyright, as such sequences are not copyrightable, supported by case law. Thematic or chronological order lacks protection, particularly in fact-based works. Complaints regarding Palmer's chapter titles and minor similarities in wording do not meet the minimal creativity required for copyright under the Copyright Act. The court found that fragmentary phrases are too ordinary to merit protection.

In assessing copyright infringement, plaintiffs can prove unauthorized copying indirectly through evidence of access and substantial similarity. Access can be inferred when a defendant had a reasonable chance to view the plaintiff's work. Substantial similarity exists when an ordinary observer might overlook differences and perceive the works as aesthetically similar. Notably, Palmer only viewed one of Arica's copyrighted works before creating his own, which limits claims of access. Arica contends that the works are strikingly similar, particularly in labeling terms associated with the enneagrams. However, even if these labels were copyrightable, Palmer's acknowledgment of his sources and the commonality of the terminology used undermines any inference of copying. The similarities likely arise from using synonymous terms or Palmer's prior exposure to Ichazo's terminology through Naranjo.

Plaintiff has not demonstrated a likelihood of success regarding the copyright infringement claim related to the chart on page 50 of The Enneagram. A comprehensive review of the 388-page comparison indicates that most instances of alleged infringement do not relate to copyrightable expression. Specific examples from the text illustrate that similarities often consist of abstract ideas or significantly different expressions of the same idea, aligning with the precedent set in Hearn v. Meyer.

Although plaintiff argues that Arica Palmer closely paraphrased or verbatim copied elements from the copyrighted work, the identified similarities are minimal compared to the extensive body of comparisons. Importantly, Palmer's possession of interviews with Oscar Ichazo prior to writing The Enneagram raises concerns about subconscious copying, which can be actionable under copyright law. However, such instances are shielded by the fair use doctrine.

Under Section 107 of the Copyright Act of 1976, fair use is determined by four factors: (1) the purpose and character of the use (favoring non-profit educational use), (2) the nature of the copyrighted work (favoring the plaintiff due to the unpublished nature of the works), (3) the amount and substantiality of the portion used (leaning towards Palmer), and (4) the effect on the potential market (also favoring Palmer). Overall, only the second factor supports the plaintiff, while the others favor Palmer, suggesting that Palmer's use of the material qualifies as fair use, potentially concluding the assessment of the first factor.

Dunderdale acknowledged Palmer's book as an informative exposition, which includes commentary, criticism, scholarship, and research, all of which are favored under section 107. Despite being sold for profit, the book discusses the history of enneagram theory, its key figures, and integrates contemporary psychological insights, moving beyond a mystical interpretation. The claim that Palmer infringes on the terms "The Virtues" and "Holy Ideas" from the plaintiff's manuals is deemed invalid. The first fair use factor, concerning the purpose and character of the use, favors Palmer, as does the third factor regarding the amount and substantiality of the material used; many alleged infringements are considered clichés or minor paraphrasing within the context of Palmer's work.

The copyrighted material used is minimal compared to the totality of the plaintiff's 46 works. The fourth fair use factor, which examines market impairment, concludes that Palmer's paperback will not adversely affect the value or market for Arica's materials. The potential market is limited to Arica members and training program enrollees, and a decline in enrollment attributed to Palmer's class notes occurred before the book's publication. Additionally, evidence suggests that the paperback's broader audience reach does not apply in this case, as demonstrated by sales patterns. Consequently, the plaintiff's motion for a preliminary injunction is denied, and all counsel are to attend a pretrial conference on May 2, 1991.

O. Ichazo's Arica system is described as a spiritual theory grounded in trialectic logic. PROTOANALYSIS, a registered service mark, represents the third level of Arica training, emphasizing enneagrams and ego fixations. Dunderdale noted Ichazo's lectures were conducted in English. HarperCollins published approximately 55,000 copies of "The Enneagram" in November 1988, and Arica did not object to specific chapter titles. The excerpt mentions Ms. Palmer's development of distinct theories regarding the enneagram's application to personality and higher awareness. In August 1990, HarperCollins agreed to notify Arica two weeks before releasing a paperback edition, but this agreement was rescinded in February 1991. The Court observed that the 16-month delay by the plaintiff in seeking preliminary injunctive relief post-publication weakened the presumption of irreparable harm. Additionally, Palmer testified that Naranjo did not provide written materials, and Dunderdale was unaware of Palmer encountering any Arica material. The seven enneagrams referenced can be found in a specific article, and Palmer made minor word substitutions from a referenced source.