Company successfully defends against trade dress and copyright infringement claims over online software tool

trade dress

A federal court in Delaware dismissed most of the intellectual property infringement claims concerning a competing online room-planning software tool. The court held that plaintiff’s trade dress infringement and breach of contract claims failed, and that its copyright infringement claims failed, except for those allegations relating to the copying of computer code.

No trade dress protection where look and feel was functional

On the trade dress claim, plaintiff had identified fifteen elements that formed a cohesive “look and feel” of its software. And the court found – based on extensive use, wide advertisement and appearance in industry publications – that the trade dress had acquired secondary meaning. But the court found that the look and feel was merely functional and not subject to trade dress protection.

Copyright infringement – mixed bag

Similarly, the court dismissed the copyright infringement claim regarding the selection, arrangement and coordination of visual elements of the program. In the court’s view, these elements were merely functional and thus not subject to copyright protection. The court dismissed the copyright infringement claim as well concerning the tool’s graphics. On this point the court was even more bold – it found after a visual comparison of the works that they simply were not similar.

The court allowed the copyright infringement claim concerning the program’s code to move forward. It found that plaintiff had alleged both access and similarity. Plaintiff had also alleged that defendant repeatedly accessed the program to stress test the design, and that there were extensive similarities in the tools’ mechanics. These allegations were enough to survive a motion to dismiss.

Browsewrap not enough

Finally, the breach of contract claim failed, not on the basis of preemption as one might expect, but because the court found plaintiff had not sufficiently alleged that a contract had been formed. Plaintiff asserted that its website’s terms of service prohibited copying of the software, and that defendant’s employees should have been aware of those terms on a browsewrap theory – there was a link to the terms at the bottom of the page. But the court would not find that plaintiff alleged enough facts to plausibly allege that  defendant’s employees manifested assent to those browsewrap terms.

Design With Friends, Inc. v. Target Corporation, 2022 WL 4448197 (D. Delaware, September 23, 2022)

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Court dismisses company executive’s name and likeness lawsuit over YouTube videos

name likeness

Strouse was the president and CEO of a company but departed with the company was sold. He did not approve of how the new company continued to use YouTube videos Strouse had made when he was with the company. So Strouse sued under Pennsylvania law for unauthorized use of his name and likeness. The company moved to dismiss the claim and the court granted the motion.

There are three elements to a claim for unauthorized use of name and likeness under Pennsylvania law:

  • a natural person’s name or likeness must have commercial value;
  • the accused party must make an unauthorized use of that name or likeness; and
  • the use is for commercial or advertising purposes.

The court found that Strouse’s claim failed on the first and second elements.

Although he claimed he suffered substantial damages due to the company’s supposed misappropriation, the court found he offered no explanation for how or why these damages occurred. He did not allege that his name had any special reputation or prestige such that mention of his name or use of his image in a video on the company’s website could confer an actionable benefit.

And the court found that Strouse’s pleadings did not establish that the company was using the videos without authorization. Strouse had made the videos as president and CEO of the company – he certainly authorized such use then. The acquiring company purchased the business’s assets, including the videos that were made.

Wurth Baer Supply Co. v. Strouse, 2022 WL 4125802 (M.D. Pennsylvania, September 9, 2022)

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