CDN INC. v. KENNETH A. KAPES
197 F.3d 1256 (1999)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
Price estimations in a guide are copyrightable if they are the product of a creative process involving expertise, judgment, selection, and analysis, rather than being mere discoveries of pre-existing facts.
Facts:
- CDN, Inc. publishes the 'Greysheet,' a weekly newsletter containing its estimates of wholesale prices for collectible U.S. coins.
- To create its price list, CDN analyzes data from coin publications, online networks, auctions, and private sales, and considers economic factors, using its expertise and judgment to create a 'best estimate' of a coin's value.
- The prices are not simply reports of actual transactions but are original estimations created by CDN.
- Kenneth Rapes, a coin dealer, operated a website called 'The Fair Market Coin Pricer.'
- Rapes used a computer program to take CDN's wholesale prices from the Greysheet and use them as a baseline to generate and publish retail prices on his website.
Procedural Posture:
- CDN, Inc. filed a copyright infringement complaint against Kenneth Rapes in the U.S. District Court for the Central District of California.
- The parties stipulated that the dispositive issue in the case was the copyrightability of the prices in CDN's guides.
- Based on the stipulation, the parties filed cross-motions for summary judgment.
- The district court granted summary judgment for CDN, Inc., finding the prices were original creations, and issued an injunction against Rapes.
- Rapes, the defendant, appealed the district court's decision to the U.S. Court of Appeals for the Ninth Circuit.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Do wholesale prices listed in a coin price guide, which are created through a process of estimation, judgment, and analysis rather than mere discovery of pre-existing data, possess sufficient originality to be copyrightable subject matter?
Opinions:
Majority - O’Scannlain, Circuit Judge
Yes, the wholesale prices possess sufficient originality to be copyrightable subject matter. The prices are not discovered, pre-existing facts, but are original creations that result from a process of analysis, selection, and judgment. The court reasoned that unlike the uncopyrightable phone listings in Feist Publications, Inc. v. Rural Tel. Serv. Co., which were merely compiled, CDN's prices are the product of a creative process. CDN does not simply republish data; it reviews multiple sources, extrapolates from available data, and applies its expertise to create its best estimate of a coin's value. This process contains the 'minimal degree of creativity' required for copyright protection. The court also rejected Rapes' argument that the merger doctrine applied, holding that while the 'idea' of a price guide is not protectable, CDN's specific expression of what those prices are is protectable, which properly balances competition and protection.
Analysis:
This decision clarifies the application of the originality requirement from Feist to compilations of data, particularly price guides. It establishes that data points, like prices, can be protected expression if they are created through a process of expert judgment and estimation, rather than simply being discovered and reported. This holding provides significant protection for publishers of valuation guides and other data-driven products that rely on proprietary analysis. The ruling solidifies the distinction between unprotectable raw facts (e.g., historical transaction prices) and protectable creative estimations (e.g., an expert's opinion of current market value).
