Hays v. Sony Corp. Of America

847 F.2d 412 (7th Cir. 1988)

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Nature of the Case

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Facts

Ps teach business courses at a public high school. They prepared a manual for their students on how to operate the school's DEC word processors. They distributed copies to students and other faculty members. The school district bought word processors from D. The district gave Ps' manual and to D to modify it so that it could be used with D's word processors. D used parts of Ps' manual verbatim and did not charge anything its preparation. There is no evidence that D has sold or disseminated the manual elsewhere. Ps never put a copyright notice on their manual. Ps eventually registered their own manual with the Copyright Office and then filed suit for common law copyright, and federal copyright. Ps alleged that D made large profits from Ps' manual. D filed a motion to dismiss and several motions for sanctions under Rule 11 seeking reimbursement of some $47,000 in attorney's fees and related expenses. The judge dismissed Ps' lawsuit and about nine months later awarded D $14,895.46 in sanctions against Ps' counsel, Guyon, but not against Ps. Guyon was to pay 10% of D’s attorney’s fees from filing until April 1, 1986, when Guyon should have known the suit was frivolous, and 50% of the fees thereafter, and 75% of the fees from motions to strike made by Guyon in June of 1986 in an attempt to avoid dismissal. Guyon filed a motion to vacate the judgment, and the judge denied the motion on September 8. On October 8, a notice of appeal was filed, but it named Ps as the appellants and not Guyon even though Ps would have had to appeal well over 30 days prior.