Court Denied Fox News Network, LLC’s Motion To Dismiss Amended Complaint Alleging Copyright Infringement.

In a March 18, 2014 Memorandum and Order, Judge Analisa Torres denied Defendant Fox News Network, LLC’s motion to dismiss Plaintiffs Yunghi Kim and Contact Press Images, Inc.’s amended complaint alleging copyright infringement. Plaintiff alleged that defendant made unauthorized copies of and displayed Kim’s copyrighted photograph in a video aired on defendant’s cable television channel and posted on defendant’s website. Defendant contended that the video constituted “fair use” as defined by Section 107 of the Copyright Act. Defendant argued that, because a fair use purportedly appeared on the face of the compl
aint and in the video, this action should be dismissed pursuant to Rule 12(b)(6).

Fair use is an affirmative defense, and is, therefore, not appropriate for determination on a Rule 12(b)(6) motion unless the defense appears on the face of the complaint. “[F]air use is a mixed question of law and fact.” Section 107 of the Copyright Act provides that “the fair use of a copyrighted work . . . for purposes such as criticism, comment, news reporting, teaching . . . scholarship, or research, is not an infringement of copyright.” 17 U.S.C. § 107. The four factors identified by Congress as especially relevant in determining whether the use was fair are: (1) the purpose and character of the use; (2) the nature of the copyrighted work; (3) the substantiality of the portion used in relation to the copyrighted work as a whole; (4) the effect on the potential market for or value of the copyrighted work. Thus, a fair use defense appears on the face of a complaint where the complaint contains unambiguous factual allegations sufficient to enable the district court to evaluate each of these four factors.

Court Applies Fair Use Defense to Dismiss Copyright Infringement Claims Over Google Books

In a November 14, 2013 decision, Judge Denny Chin (continuing a case in which he presided before joining the Second Circuit) granted summary judgment in favor of Google, Inc in the long-running case by The Authors Guild, Inc. based on the fair use defense to copyright infringement.  As part of its Google Books program, Google "has scanned more than twenty million books," "has delivered digital copies to participating libraries, created an electronic database of books, and made text available for online searching through the use of 'snippets.'"  Since many of the scanned books are still under copyright, The Authors Guild, and three named plaintiffs brought a class action copyright infringement action.  The parties cross-moved for summary judgment on Google's fair use defense.

At the outset, Judge Chin assumed that the plaintiffs had made out a prima facie case of infringement, and that the sole issue for decision "is whether Google's use of the copyrighted works is 'fair use' under the copyright laws."  The defense, which the defendant has the burden of proving, is codified at 17 U.S.C. § 107, and requires the consideration of four non-exclusive factors:  "(1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work."  The Court considered each of these factors in turn.