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SuperMedia LLC v. Yellow Pages Photos, Inc. (In re SuperMedia LLC)

Citation: 540 B.R. 85Docket: Case No. 13-10546(KG); Adv. Proc. No. 15-50044(KG)

Court: United States Bankruptcy Court, D. Delaware; October 27, 2015; Us Bankruptcy; United States Bankruptcy Court

Narrative Opinion Summary

In this case between SuperMedia, LLC and Yellow Pages Photos, Inc. (YPPI), the court addressed cross-motions for summary judgment concerning a copyright infringement and contractual dispute. The primary legal issues revolved around the amendment of pleadings, collateral estoppel, and the applicability of statutory damages and attorneys' fees under the Copyright Act. SuperMedia argued that certain transfers occurred before YPPI's copyright registration, thus barring statutory damages under Section 412, a position supported by precedent. YPPI's claims against Idearc, SuperMedia's predecessor, were found not discharged in bankruptcy due to inadequate notice, aligning with the National Gypsum precedent. Additionally, the court examined whether YPPI's claims were timely under the statute of limitations, ultimately finding that factual disputes precluded summary judgment. The court upheld that YPPI's images constituted a single work eligible for one statutory damage award, consistent with prior rulings. Consequently, summary judgment was granted to SuperMedia regarding statutory damages and attorneys' fees but denied regarding other claims, including YPPI's existence and the statute of limitations.

Legal Issues Addressed

Amendment of Pleadings in Litigation

Application: The Court permitted SuperMedia's amendment despite YPPI's objections concerning collateral estoppel, procedural timeliness, and potential prejudice.

Reasoning: The Court permitted SuperMedia's amendment despite YPPI's objections concerning collateral estoppel, procedural timeliness, and potential prejudice.

Bankruptcy Discharge and Notice

Application: YPPI's claims were not discharged in Idearc's bankruptcy due to insufficient notice, aligning with the National Gypsum precedent.

Reasoning: Based on the National Gypsum precedent, the court ruled that YPPI's claim was not discharged by Idearc’s confirmation order.

Collateral Estoppel

Application: YPPI's motion for summary judgment was denied as the Court clarified that the liability trial did not include the timing of the transfers in question.

Reasoning: The Court clarified that the liability trial focused on infringement during the Administrative Claim Period (March 18, 2013, to April 30, 2013) and did not include the timing of the transfers in question.

Copyright Infringement and Registration

Application: SuperMedia is not liable for statutory damages or attorneys' fees for pre-registration infringements since the images were not registered until after the infringement commenced.

Reasoning: Section 412(2) of the Copyright Act prohibits statutory damages or attorneys' fees for infringements if the copyright holder has not registered the copyrights prior to the infringement.

One Work Doctrine under Copyright Act

Application: YPPI's images are treated as a compilation eligible for only one statutory damage award, as previously upheld by the Eleventh Circuit.

Reasoning: YPPI has previously litigated this issue and lost in *Yellow Pages Photos, Inc. v. Ziplocal LP*, where the Eleventh Circuit upheld that the compilation constituted a singular work.

Statute of Limitations for Copyright and Contract Claims

Application: The Court found material questions regarding when YPPI became aware of alleged breaches, thus denying summary judgment on statutes of limitations.

Reasoning: The Court concludes that material questions regarding when YPPI became aware of the alleged breaches and infringements are factual issues for trial, ruling that summary judgment is not appropriate.

Summary Judgment Standard

Application: Summary judgment will be granted if the movant shows no genuine dispute exists over material facts and is entitled to judgment as a matter of law.

Reasoning: Regarding summary judgment, the Court will grant it if the movant shows no genuine dispute exists over material facts and is entitled to judgment as a matter of law.