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I.A.E., Inc. v. Shaver

Citations: 74 F.3d 768; 1996 WL 15552Docket: No. 95-2220

Court: Court of Appeals for the Seventh Circuit; January 16, 1996; Federal Appellate Court

Narrative Opinion Summary

In the case concerning the alleged copyright infringement by an architect, the district court ruled on the issues surrounding an implied nonexclusive license. The architect, who was subcontracted to provide schematic design drawings for an airport cargo building, claimed copyright infringement after the designs were used without his continued involvement. The court analyzed whether the architect had granted an implied license to the joint venture and the airport authority, which were parties to the construction contract. The court concluded that the architect's conduct, including the delivery of the drawings and his initial approval for their use, constituted an implied nonexclusive license, thereby negating the infringement claim. It ruled that nonexclusive licenses do not require written agreements, as consent can be inferred from actions or lack of objection. The court affirmed the district court's summary judgment, finding no genuine issue of material fact and concluding that the use of the designs was within the scope of the implied license. As a result, the architect's claims were dismissed with prejudice, and the court upheld the rights of the joint venture, airport authority, and associated parties to use the designs as intended for the project.

Legal Issues Addressed

Contractual Interpretation and Implied Terms

Application: The court found that the contract's language was clear and unambiguous, supporting the existence of an implied nonexclusive license without the need for extrinsic evidence.

Reasoning: The court found Shaver's contract clear and unambiguous, negating the need for extrinsic evidence to interpret it.

Copyright Infringement and Implied Nonexclusive License

Application: The court held that Shaver granted an implied nonexclusive license for the use of his schematic design drawings, which negated the copyright infringement claims.

Reasoning: The court determined that Shaver had granted an implied nonexclusive license for his drawings to be used in the project execution.

Criteria for Implied Licenses

Application: The court applied the Ninth Circuit's criteria for implied licenses, concluding that Shaver intended for the Joint Venture to use his designs for the airport project.

Reasoning: The district court referenced the Ninth Circuit's ruling in Effects, which established criteria for determining implied licenses: (1) the licensee requests the creation of a work, (2) the creator delivers that work, and (3) the creator intends for the licensee to copy and distribute it.

Requirements for Nonexclusive Licenses

Application: The court found that nonexclusive licenses do not require a written agreement under the Copyright Act, and can be granted through conduct or oral agreement.

Reasoning: While copyright ownership transfers must be in writing per section 204(a) of the Copyright Act, section 101 exempts nonexclusive licenses from this requirement.

Scope and Revocation of Nonexclusive Licenses

Application: The court ruled that a paid nonexclusive license is irrevocable, and the use of Shaver's designs by the Joint Venture and Airport fell within the license's scope.

Reasoning: The court followed Nimmer's position on copyright, stating that a paid license is irrevocable and ruled that Shaver could not revoke the implied license.