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11 August 2017Copyright

Cheerleader copyright case ends in settlement

A long-running copyright dispute has finally come to an end, five months after a ruling by the US Supreme Court.

In March this year, the US Supreme Court, in a 6-2 decision, held that decorative elements of a cheerleading uniform may be protected by copyright law.

The court backed Varsity Brands in its clash with clothing company Star Athletica.

Varsity had claimed that cheerleader uniforms sold by Star Athletica were “substantially similar” to its own.

The Supreme Court had agreed to hear the case in May 2016, to answer: “what is the appropriate test to determine when a feature of a useful article is protectable under section 101 of the Copyright Act?”

Under section 101, “useful” articles are eligible for copyright protection as artistic works if those features “can be identified separately from, and are capable of existing independently of, the utilitarian aspects of the article”.

At the time of the decision, the fashion industry breathed a sigh of relief.

“There is now no doubt that applied art on clothing is protectable under the copyright law,” explained Michelle Mancino Marsh, partner at Arent Fox, speaking to WIPR.

Yesterday, August 10, US District Judge Robert Cleland handed down an order, allowing Varsity to drop its claims against Star Athletica at the US District Court for the Western District of Tennessee, Western Division.

Varsity had filed its dismissal request, outlining a settlement agreement with Star Athletica’s insurer, but not Star Athletica itself.

Star Athletica hit back, arguing that the court must resolve the company’s pending counterclaims seeking declaratory judgment before it could dismiss the case, while Varsity claimed that the Supreme Court’s decision and Varsity’s filing “moots any possible counterclaims and disposes of the case”.

“Plaintiffs’ filing is no simple stipulated order of dismissal, as it is made without the sole defendant’s blessing,” said Cleland.

He added: “The court concludes that it will not use its discretion to assert jurisdiction over the declaratory judgment counterclaims, and therefore dismisses the remaining counterclaims.”

The court retained jurisdiction over Varsity’s claims to enforce the terms of the settlement agreement.

It added that it will reinstate Varsity’s claims in the event the payment to be made by Star Athletica’s insurer is not received by Varsity in accordance with the terms of the settlement agreement.

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More on this story

Copyright
22 March 2017   Decorative elements of a cheerleading uniform may be protected by copyright law, according to the US Supreme Court.
Copyright
23 March 2017   The US Supreme Court’s decision in Star Athletica v Varsity Brands brings a sigh of relief for the fashion industry, according to IP lawyers.