In Great Minds v. Fedex Office & Print Servs., Inc., 886 F.3d 91 (2d Cir. 2018), the U.S. Court of Appeals for the Second Circuit advised whether Defendant’s reproduction of educational abstracts for academy commune licensees abandoned a Creative Commons authorization carefully bound to non-commercial use. Although third-party artful was not addressed in the license, the Second Circuit beneath to acquisition ambiguity, instead captivation that such third-party reproduction was permissible accustomed the accordant accepted law bureau principles.
Plaintiff Great Minds advised and awash (in book form) copyrighted educational class alleged “Eureka Math,” which it additionally appear to the accessible for chargeless beneath a Creative Commons license. Notably, the agreement of the applicative Creative Commons authorization accompaniment that “[e]very almsman of the [Materials] automatically receives an action from the Licensor to exercise the Accountant Rights beneath the agreement and altitude of this  License.” Upon acquirements that Defendant was breeding Eureka Math at the appeal of assertive academy districts, Plaintiff sued Defendant for absorb infringement. The Commune Court absolved Plaintiff’s complaint and Plaintiff appealed.
Affirming the Commune Court, the Second Circuit alone Defendant’s altercation that it could commercially carbon the accountant abstracts beneath the license’s “reproduce and Share” language, award such accent alone accustomed licensees (not third parties) to appoint in activities acute the absorb holder’s permission. The Second Circuit additionally alone Plaintiff’s altercation that, beneath the “downstream recipients” provision, FedEx was additionally a licensee (because it accustomed the materials) and appropriately answerable to burden from bartering uses, as this “fail[ed] to annual for the banal beyond of allowable bureau relationships, in which ‘one person, to one amount or addition . . . , acts as a adumbrative of or contrarily acts on account of addition person.’”
Relying on Seventh Circuit and First Circuit case law, the Second Circuit articular that, to analyze every concrete almsman of the abstracts as an absolute licensee would be a “radical result,” that was not acceptable by the accent of the license. The added reasonable construction, the Court found, was that academy commune advisers that archetype the accountant abstracts application the Defendant’s casework were acting as agents of the academy districts, not as absolute licensees, and that by extension, third-party copiers (such as Defendant) were additionally acting as agents of the academy districts. Similarly, the Second Circuit alone Plaintiff’s altercation that the catch of rights in the license, which “specifically affluence Great Minds’ appropriate to aggregate royalties for all bartering uses,” banned Defendant’s bartering reproduction, award that such altercation “merely begs the catechism whether FedEx should appropriately be advised a licensee or an abettor of the licensee academy districts.”
The Second Circuit arbitrarily alone Plaintiff’s altercation that Defendant affianced in alternative artful based on Cartoon Network v. CSC Holdings, Inc., 536 F.3d 121 (2d Cir. 2008), award that case extraneous to whether the academy district’s could adjustment third-party copies. It additionally alone Plaintiff’s assurance on fair use cases area banal copies (rather than artful services) were offered by defendants, acquainted that such cases were awkward accustomed the attributes of the casework offered as able-bodied as the actuality that FedEx disclaimed assurance on the fair use defense.
Notably, the Second Circuit beneath to acquisition ambiguity in a authorization that lacked any accurate accent acclamation whether third-party bartering artful constituted banned action beneath the contract. In accomplishing so, the Court based its accommodation on accepted law bureau principles, allowing academy commune licensees to accomplish their non-commercial authorization by authoritative copies, whether through advisers or third-party agents.
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