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Grant Heilman Photography, Inc. v. McGraw-Hill Companies, Inc.

Citations: 28 F. Supp. 3d 399; 2014 WL 2892504; 2014 U.S. Dist. LEXIS 86911Docket: Civil Action No. 12-2061

Court: District Court, E.D. Pennsylvania; June 26, 2014; Federal District Court

Narrative Opinion Summary

In this legal dispute, a stock photography agency (Plaintiff) brought copyright infringement claims against a publishing company (Defendants), alleging unauthorized use of images beyond the terms specified in limited licenses. The case revolves around 2,395 instances of alleged infringement related to 594 invoices, with the Plaintiff asserting that Defendants exceeded usage permissions outlined in a 2003 Preferred Vendor Agreement (PVA). Defendants previously sought summary judgment on statute of limitations grounds, which was denied, leading to a bifurcated trial process separating statute of limitations from liability and damages. Plaintiff's motion for partial summary judgment targets the unauthorized use of 57 images and contests several affirmative defenses, including statute of limitations and implied licensing. The Court noted factual disputes, particularly regarding the scope of implied licenses and the applicability of the statute of limitations, influenced by the discovery rule. The Plaintiff's ownership of copyrights was substantiated through registration certificates, establishing standing. The Court ultimately denied the Plaintiff's motion for partial summary judgment without prejudice, citing unresolved factual issues related to the statute of limitations and the lack of specific evidence of infringing use post-April 2009. However, the Court allowed an opportunity for the Plaintiff to amend their record with further evidence.

Legal Issues Addressed

Bifurcation of Trials

Application: The court ordered a bifurcated trial to separately address statute of limitations and liability/damages for selected invoices.

Reasoning: The Court ordered a bifurcated trial based on selected invoices.

Copyright Infringement and Licensing Terms

Application: The plaintiff seeks summary judgment for copyright infringement, arguing that the defendants used images beyond the licensing terms specified in invoices.

Reasoning: Plaintiff claims Defendants exceeded the use permissions defined in limited licenses issued from 1995 to 2011.

Implied Licenses and Course of Dealing

Application: Defendants argue that their use of images was permitted under an implied license based on past dealings, but the court examines whether such a license existed.

Reasoning: The parties in question dispute whether the GPHI invoices define the license terms or if the defendants had an implied license based on their conduct.

Ownership and Standing in Copyright Infringement

Application: Plaintiff demonstrated ownership of copyrights through registration certificates, satisfying standing requirements for infringement claims.

Reasoning: Plaintiff has demonstrated sufficient ownership interest in the images to have standing for copyright infringement claims.

Statute of Limitations in Copyright Claims

Application: The case addresses whether the statute of limitations for copyright claims was tolled due to the discovery rule, affecting the plaintiff's ability to sue for older infringements.

Reasoning: The Court allows the Plaintiff to amend their record within fourteen days if they can present undisputed evidence of infringing use within three years of filing the complaint.