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Re: SFLC stipulated dismissal of Comtrend without any settlement


From: Alexander Terekhov
Subject: Re: SFLC stipulated dismissal of Comtrend without any settlement
Date: Tue, 04 May 2010 16:14:58 -0000

Hyman Rosen wrote:
> 
> On 4/13/2010 10:31 AM, Alexander Terekhov wrote:
> > The contract laws recognize a concept called "efficient breach" which
> > *encourages* breach of (enforcable) obligations if it's economically
> > efficient to do so.
> 
> That's fine. The copyright infringers will then be enjoined

--------- 
While a party that owns copyright rights is ordinarily entitled to 
pursue infringement claims against any third party who violates them, 
the courts have recognized that the rights and remedies available to 
copyright holders change significantly when the owner elects to give 
others a nonexclusive license to use such property. In that situation, 
the owner/user relationship is fundamentally different. Absent a 
license, the rights of the copyright holder are governed by statutory 
and common law rules applicable to such rights. With a license, 
however, the terms and covenants of the license establish the 
applicable rules. See Effects Associates, Inc. v. Cohen, 908 F.2d 555, 
559 (9th Cir. 1990) (in granting a copyright license, the licensor 
gives up its right to sue the licensee for infringement). 

Recognizing that the existence of consensual licensing arrangements 
significantly changes the applicable rules and the expectations of the 
parties, federal courts have held that a party cannot normally pursue 
a copyright infringement action based upon the licensees breach of 
covenants in the license agreement. As a general rule, " if the 
[licensees] improper conduct constitutes a breach of a covenant 
undertaken by the licensee . . . and if such covenant constitutes an 
enforceable contractual obligation, then the licensor will have the 
cause of action for contract," not for copyright infringement. Graham 
v. James , 144 F.3d 229, 236-37 (2d Cir. 1998) quoting 3 Melville B. 
Nimmer & David Nimmer, Nimmer on Copyright, 10.15[A] at 10-120 
(1998); see also Kolbe v. Trudel , 945 F. Supp. 1268, 1270-71 
(D. Ariz. 1996). As the Ninth Circuit explained in Topolos v. 
Caldewey, 698 F.2d 991, 993 (9th Cir. 1983): 

[A] case does not arise under the federal copyright laws . . . 
merely because the subject matter of the action involves or affects a 
copyright. 
--------- 

regards, 
alexander. 
       
P.S. "Every computer program in the world, BusyBox included, exceeds the
originality standards required by copyright law."

Hyman Rosen <address@hidden> The Silliest GPL 'Advocate'

P.P.S. "Of course correlation implies causation! Without this 
fundamental principle, no science would ever make any progress."

Hyman Rosen <address@hidden> The Silliest GPL 'Advocate'

--
http://gng.z505.com/index.htm 
(GNG is a derecursive recursive derecursion which pwns GNU since it can 
be infinitely looped as GNGNGNGNG...NGNGNG... and can be said backwards 
too, whereas GNU cannot.)


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