Schrock v. Learning Curve Int'l, Inc.
586 F.3d 513 (2009)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
The author of an authorized derivative work automatically owns the copyright to their original contributions by operation of law; separate permission to copyright the work is not required unless the parties contractually agree otherwise. Furthermore, derivative works are not subject to a heightened standard of originality but must merely possess a non-trivial, distinguishable variation from the underlying work.
Facts:
- HIT Entertainment owns the copyright to the 'Thomas & Friends' characters.
- HIT granted Learning Curve International a license to create and market toys based on these characters.
- In 1999, Learning Curve hired professional photographer Daniel Schrock to take photographs of its 'Thomas & Friends' toys for use in promotional materials.
- For approximately four years, Schrock photographed Learning Curve's toys and submitted invoices, some of which purported to limit Learning Curve's use of the photos to two years.
- In mid-2003, Learning Curve stopped employing Schrock but continued to use his photographs on its product packaging and in its advertising.
- Schrock's photographic process involved artistic and technical choices regarding perspective, angle, lighting, and shading to make the toys appear more 'life like' and 'personable'.
Procedural Posture:
- Daniel Schrock registered his photographs for copyright protection.
- Schrock sued HIT Entertainment and Learning Curve in U.S. District Court for copyright infringement.
- The defendants moved for summary judgment, arguing Schrock's photos were not copyrightable.
- The district court granted summary judgment for the defendants, holding that the photos were derivative works and Schrock lacked the necessary permission to copyright them.
- Schrock, the appellant, appealed the summary judgment ruling to the U.S. Court of Appeals for the Seventh Circuit.
- HIT Entertainment and Learning Curve are the appellees.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does the author of a derivative work, who had permission from the underlying copyright holder's licensee to create the work, need separate, express permission to copyright the original contributions contained within that derivative work?
Opinions:
Majority - Sykes, Circuit Judge
No. The author of an authorized derivative work does not need separate permission to copyright their new expression. Copyright in the original expression of a lawfully created derivative work arises by operation of law and vests in its author, although parties may alter this default rule by contract. The court's prior suggestion in Gracen v. Bradford Exchange that an author needs permission to make and permission to copyright a derivative work was mistaken dicta. The Copyright Act vests copyright in the author at the moment an original work is fixed in a tangible medium, and this applies equally to derivative works, so long as their creation was not infringing. The court also clarified that derivative works do not require a heightened standard of originality; they need only possess a 'nontrivial' and 'distinguishable variation' from the underlying work. Schrock's photos met this low threshold through his creative choices in lighting, angle, and perspective, which were more than 'slavish copies'.
Analysis:
This decision significantly clarifies copyright law for derivative works within the Seventh Circuit. It explicitly rejects a heightened originality standard, aligning the circuit with the generally low threshold established in Feist Publications, Inc. v. Rural Telephone Service Co. More importantly, it discards the mistaken dicta from Gracen, establishing a clear default rule that copyright in a derivative work's new expression automatically vests in its author if the work was authorized. This shifts the practical burden onto the commissioning parties and underlying copyright holders to use explicit contracts if they wish to claim ownership of copyrights in derivative works created by independent contractors or licensees.
Unlock the full brief for Schrock v. Learning Curve Int'l, Inc.