The Chamberlain Group, Inc. v. Skylink Technologies, Inc.
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Full Opinion
The Chamberlain Group, Inc. (âChamberlainâ) appeals the November 13, 2003 summary judgment of the United States District Court for the Northern District of Illinois (âDistrict Courtâ) in favor of Skyl-ink Technologies, Inc. (âSkylinkâ), finding that Skylink is not violating the anti-trafficking provisions of the Digital Millennium Copyright Act (âDMCAâ), 17 U.S.C. § 1201 et seq., and dismissing all other claims, including claims of patent infringement. Chamberlain Group, Inc. v. Skylink Techs., Inc., 292 F.Supp.2d 1040 (N.D.Ill.2003) (âChamberlain //â). That same court, in an earlier ruling, denied Chamberlainâs motion for summary judgment on its DMCA claims. Chamberlain Group, Inc. v. Skylink Techs., Inc., 292 F.Supp.2d 1023 (N.D.Ill.2003) (âChamberlain Iâ). Chamberlain does not appeal *1182 that denial of its summary judgment motion.
Chamberlainâs claims at issue stem from its allegation that the District Court incorrectly construed the DMCA as placing a burden upon Chamberlain to prove that the circumvention of its technological measures enabled unauthorized access to its copyrighted software. But Skylinkâs accused device enables only uses that copyright law explicitly authorizes, and is therefore presumptively legal. Chamberlain has neither proved nor alleged a connection between Skylinkâs accused circumvention device and the protections that the copyright laws afford Chamberlain capable of overcoming that presumption. Chamberlainâs failure to meet this burden alone compels a legal ruling in Skylinkâs favor. We therefore affirm the District Courtâs summary judgment in favor of Skylink.
BACKGROUND
A. The Applicable Statute
Chamberlain sued Skylink, alleging violations of the patent and copyright laws. Chamberlainâs second amended complaint, dated March 26, 2003, enumerated eight causes of action against Skylink, including the infringement of three patents. The matter on appeal involves only Chamberlainâs allegation that Skylink is violating the DMCA, specifically the anti-trafficking provision of § 1201(a)(2). The District Court first denied Chamberlainâs motion for summary judgment of its DMCA claim, Chamberlain /, and then granted Skylinkâs motion for summary judgment on the DMCA claim. Chamberlain II. The District Court also dismissed all other counts.
The District Courtâs ruling, along with the appellate briefs that the parties and amici filed with this court, raise numerous provisions of the DMCA for our consideration. The key provisions at issue, however, are all in § 1201(a).
§ 1201. Circumvention of copyright protection systems
(a) Violations regarding circumvention of technological measures.
(1) (A) No person shall circumvent a technological measure that effectively controls access to a work protected under this title....
(2) No person shall manufacture, import, offer to the public, provide, or otherwise traffic in any technology, product, service, device, component, or part thereof, that â â
(A) is primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work protected under this title;
(B) has only limited commercially significant purpose or use other than to circumvent a technological measure that effectively controls access to a work protected under this title; or
(C) is marketed by that person or another acting in concert with that person with that personâs knowledge for use in circumventing a technological measure that effectively controls access to a work protected under this title.
(3) As used in this subsectionâ
(A) to âcircumvent a technological measureâ means to descramble a scrambled work, to decrypt an encrypted work, or otherwise to avoid, bypass, remove, deactivate, or impair a technological measure, without the authority of the copyright owner; and
(B) a technological measure âeffectively controls access to a workâ if the measure, in the ordinary course of its operation, requires the application of information, or a process or a treatment, *1183 with the authority of the copyright owner, to gain access to the work.
17 U.S.C. § 1201(a).
B. The Dispute
The District Court reviewed the basic facts and the underlying technology in its dismissal of Chamberlainâs motion for summary judgment. Though the parties emphasize different aspects of the District Courtâs factual discussion, neither one questions its general accuracy.
The technology at issue involves Garage Door Openers (GDOs). A GDO typically consists of a hand-held portable transmitter and a garage door opening device mounted in a homeownerâs garage. The opening device, in turn, includes both a receiver with associated signal processing software and a motor to open or close the garage door. In order to open or close the garage door, a user must activate the transmitter, which sends a radio frequency (RF) signal to the receiver located on the opening device. Once the opener receives a recognized signal, the signal processing software directs the motor to open or close the garage door.
When a homeowner purchases a GDO system, the manufacturer provides both an opener and a transmitter. Homeowners who desire replacement or spare transmitters can purchase them in the aftermarket. Aftermarket consumers have long been able to purchase âuniversal transmittersâ that they can program to interoperate with their GDO system regardless of make or model. Skylink and Chamberlain are the only significant distributors of universal GDO transmitters. 1 Chamberlain places no explicit restrictions on the types of transmitter that the homeowner may use with its system at the time of purchase. Chamberlainâs customers therefore assume that they enjoy all of the rights associated with the use of their GDOs and any software embedded therein that the copyright laws and other laws of commerce provide.
This dispute involves Chamberlainâs Security + line of GDOs and Skylinkâs Model 39 universal transmitter. Chamberlainâs Security + GDOs incorporate a copyrighted ârolling codeâ computer program that constantly changes the transmitter signal needed to open the garage door. Skylinkâs Model 39 transmitter, which does not incorporate rolling code, nevertheless allows users to operate Security + openers. Chamberlain alleges that Skylinkâs transmitter renders the Security + insecure by allowing unauthorized users to circumvent the security inherent in rolling codes. Of greater legal significance, however, Chamberlain contends that because of this property of the Model 39, Skylink is in violation of the anti-trafficking clause of the DMCAâs anticircumvention provisions, specifically § 1201(a)(2).
The code in a standard (i.e., non-rolling code) GDO transmitter is unique but fixed. Thus, according to Chamberlain, the typical GDO is vulnerable to attack by burglars who can open the garage door using a âcode grabber.â According to Chamberlain, code grabbers allow burglars in close proximity to a homeowner operating her garage door to record the signal sent from the transmitter to the opener, and to return later, replay the recorded signal, and open the garage door. Chamberlain concedes, however, that code grabbers are more theoretical than practical burgling devices; none of its witnesses had either firsthand knowledge of a single code grabbing problem or familiarity with data dem *1184 onstrating the existence of a problem. Nevertheless, Chamberlain claims to have developed its rolling code system specifically to prevent code grabbing. 2
The essence of the rolling code system is that the transmitted signals are broken into fixed and variable (or ârollingâ) components. The entire transmitted signal is a bit string. The fixed component serves to identify the transmitter. The rolling component cycles through a lengthy cycle of bit strings only some of which are capable of opening the door at any given time, ostensibly so that a burglar replaying a grabbed code is unlikely to send a valid signal â and therefore unlikely to open the garage door.
A user wishing to set up a new transmitter for use with her Security + GDO must switch the opener to âprogram modeâ and send a signal from the transmitter to the opener. The opener stores both the fixed and rolling components of the transmitted signal. When the user switches the opener back to âoperate mode,â the system is set and the user may operate the opener with the newly programmed transmitter. In Chamberlainâs transmitter, a computer program increases the rolling code by a factor of three each time the user activates the transmitter. When the transmitted signal reaches the receiver, a program in the opener checks to see whether the rolling code received was identical to one of the most recently received 1,024 rolling codes (the ârear windowâ). If so, it will not activate the motor. If, on the other hand, the rolling code received is among the next 4,096 binary signals (the âforward windowâ), the receiver will activate the motor.
Not all recognized binary rolling signals are in either the forward or rear windows. If the transmitter sends a single signal outside of either window, the receiver will ignore it. If, however, the transmitter sends two signals outside either window in rapid succession, the opener will again access its programming, this time to determine whether the two signals together comprise a âresynchronizationâ sequence. If the signals differ by three, the receiver will reset the windows and activate the motor. According to Chamberlain, resynchronization accommodates the possibility that homeowners using the same transmitter for multiple residences may transmit so many signals while out of range of the opener that they exhaust the entire forward window.
Skylink began marketing and selling universal transmitters in 1992. Skylink designed its Model 39, launched in August 2002, to interoperate with common GDOs, including both rolling code and non-rolling code GDOs. 3 Although Chamberlain concedes that the Model 39 transmitter is capable of operating many different GDOs, it nevertheless asserts that Skylink markets the Model 39 transmitter for use in circumventing its copyrighted rolling code computer program. Chamberlain supports this allegation by pointing to the Model 39âs setting that operates only Chamberlainâs rolling code GDOs.
Skylinkâs Model 39 does not use rolling code technology. Like Chamberlainâs products, however, the Model 39âs binary signal contains two components. The first corresponds to the Chamberlainâs fixed *1185 component identifying the transmitter, and the second simulates the effect of the Chamberlainâs rolling code. Like the Chamberlain fixed component, the primary-role of the Model 39âs identifying component is in programming; a homeowner wishing to use a Model 39 in conjunction with a Chamberlain GDO must program the opener to recognize his newly purchased transmitter. When the homeowner actually uses the transmitter, it broadcasts three fixed codes in rapid succession. The first binary signal combines the identifying component with an arbitrary binary sequence. The second binary signal subtracts 1800 from the first signal. The third signal adds three to the second signal. The combination of these three codes transmitted with every press of the Model 39 transmitter button will either cause the Chamberlain GDO to operate in response to the first fixed code or cause the GDO to resynchronize and operate in response to the second and third fixed codes. Chamberlain characterizes this procedure as a circumvention of an important security measure; a code grabber that recorded the Model 39âs three codes could later play them back and activate a Chamberlain rolling code GDO without authorization.
These facts frame the dispute now before us on appeal. Though only Chamberlainâs DMCA claim is before us, and though the parties dispute whether or not Skylink developed the Model 39 independent of Chamberlainâs copyrighted products, 4 it is nevertheless noteworthy that Chamberlain has not alleged either that Skylink infringed its copyright or that Skylink is liable for contributory copyright infringement. What Chamberlain has alleged is that because its opener and transmitter both incorporate computer programs âprotected by copyrightâ and because rolling codes are a âtechnological measureâ that âcontrols accessâ to those programs, Skylink is prima facie liable for violating § 1201(a)(2). In the District Courtâs words, âChamberlain claims that the rolling code computer program has a protective measure that protects itself. Thus, only one computer program is at work here, but it has two functions: (1) to verify the rolling code; and (2) once the rolling code is verified, to activate the GDO motor, by sending instructions to a microprocessor in the GDO.â Chamberlain I, 292 F.Supp.2d at 1028.
- C. The Summary Judgment Motions
The District Court first considered Chamberlainâs motion for summary judgment on its DMCA claim. Chamberlain I. Chamberlain sued Skylink under 17 U.S.C. § 1201(a)(2), a statutory provision that neither the Seventh Circuit nor any previous District Court in the Seventh Circuit had ever considered. To date, in fact, only the Second Circuit has construed § 1201(a)(2), and that construction focused on First Amendment issues rather than on an application of the statute to case-specific facts. See Universal City Studios v. Corley, 273 F.3d 429 (2d Cir.2001) (âCorley â). The District Court therefore correctly viewed this case as a matter of first impression, and provided detailed analyses of *1186 Chamberlainâs various arguments and Skylinkâs proffered defenses.
At the end of this review, the District Court denied Chamberlainâs motion for summary judgment. Chamberlain does not appeal this denial. The District Court, however, did refer back to its discussions numerous times in its consideration and grant of Skylinkâs motion for summary judgment, the subject of the current appeal. In fact, the District Courtâs discussion of Skylinkâs motion began by âassuming] the readerâs familiarity with [its] earlier decision.â Chamberlain II, 292 F.Supp.2d at 1042. Understanding the District Courtâs denial of Chamberlainâs summary judgment motion is therefore critical to understanding its grant of Skyl-inkâs summary judgment motion.
Chamberlainâs argument, submitted in both summary judgment motions, rests on its interpretation of the statuteâs âplain language.â Chamberlain contends first, that Skylink âprimarily designed or produced [the Model 39] for the purpose of circumventing [Chamberlainâs rolling code] technological'measure that effectively controls access to [Chamberlainâs copyrighted computer programs],â contravening § 1201(a)(2)(A); second, that the Model 39 âhas only limited commercially significant purpose or use other than to circumvent [Chamberlainâs rolling code] technological measure that effectively controls access to [Chamberlainâs copyrighted computer programs],â contravening § 1201(a)(2)(B); and third, that Skylink marketed the Model 39 âfor use in circumventing [Chamberlainâs rolling code] technological measure that, effectively controls access to [Chamberlainâs copyrighted computer programs],â contravening § 1201(a)(2)(C). Chamberlain I, 292 F.Supp.2d at 1035.
Skylink submitted several defenses, arguing that: (1) the Model 39 transmitter serves a variety of functions that are unrelated to circumvention; (2) Chamberlain has failed to demonstrate that its GDOs contain a computer program protected by copyright; (3) consumers use the Model 39 transmitter to activate the Security+ GDOs with Chamberlainâs consent; (4) Skylink has not violated the DMCA because it falls within a safe harbor provision per § 1201(f); 5 and (5) Chamberlainâs rolling code computer program does not protect a copyrighted computer program, but instead protects an uncopyrightable process. Id. at 1035-36. Though the District Court commented on all of these arguments, it based its rulings entirely on Skyl-inkâs third argument concerning authorization and consent.
Chamberlain submitted two arguments in response to Skylinkâs assertion that Chamberlain authorized its customers to use the Model 39. First, Chamberlain argued that Skylink bore the burden of prov *1187 ing that its behavior was authorized, and that Skylinkâs argument was therefore, at best, an affirmative defense rather than a defect in its own pleadings. Chamberlain II, 292 F.Supp.2d at 1044. Second, Chamberlain noted that it never gave consumers explicit authorization to program competing universal transmitters into its rolling code openers, at least in part because it never anticipated that any competitor would crack its code.' Skylink did not dispute this point, but asserted simply that in the absence of an explicit restriction, consumers must be free to infer that they have purchased the full range of rights that normally accompany consumer products â including those containing copyrighted embedded software.
In assessing the authorization issue, the District Court noted that according to the statuteâs internal definitions, âcircumvent a technological measureâ means to âde-scramble a scrambled work, to decrypt an encrypted work, or otherwise to avoid, bypass, remove, deactivate, or impair a technological measure, without the authority of the copyright owner.â Id. at 1043 (citing 17 U.S.C. § 1201(a)(3)(A)) (emphasis added by the District Court).
According to undisputed facts, a homeowner who purchases a Chamberlain GDO owns it and has a right to use it to access his or her own garage. At the time of sale, Chamberlain does not place any explicit terms or condition on use to limit the ways that a purchaser may use its products. A homeowner who wishes to use a Model 39 must first program it into the GDO. Skylink characterizes this action as the homeownerâs authorization of the Model 39 to interoperate with the GDO. In other words, according to Skylink, Chamberlain GDO consumers who purchase a Skylink transmitter have Chamberlainâs implicit permission to purchase and to use any brand of transmitter that will open their GDO. The District Court agreed that Chamberlainâs unconditioned sale implied authorization. Id.
Chamberlain also argued that its web page and warranty implied restrictions on the use of competing transmitters. The District Court, however, refused to read an implicit restriction from the mere absence of competing products discussed on Chamberlainâs web page, particularly given the longstanding industry practice of marketing universal transmitters. The District Court rejected the alleged implications of Chamberlainâs warranties even more strongly, noting that consumers are always free to forego the benefits of a productâs warranty and to use consumer products in any way that they choose. The District Court similarly rejected Chamberlainâs reiteration of the arguments that had proved unpersuasive in its own summary judgment motion to defend itself against Skyl-inkâs summary judgment motion.
The District Court further noted that under Chamberlainâs proposed construction of the DMCA, not only would Skylink be in violation of § 1201(a)(2) (prohibiting trafficking in circumvention devices), but Chamberlainâs own customers who used a Model 39 would be in violation of § 1201(a)(1) (prohibiting circumvention). The District Court declined to adopt a construction with such dire implications. See Chamberlain I, 292 F.Supp.2d at 1039-40.
In short, the District Court concluded that because Chamberlain never restricted its customersâ use of competing transmitters with its Security + line, those customers had implicit authorization to use Skyl-inkâs Model 39. Because of that implicit authorization, Chamberlain could not possibly meet its burden of proving that Skyl-ink trafficked in a device designed to circumvent a technological measure to gain unauthorized access to Chamberlainâs *1188 copyrighted computer programs. The District Court therefore granted Skylinkâs motion for summary judgment on Chamberlainâs DMCA claim. Chamberlain timely appealed only the District Courtâs final judgment in favor of Skylink on Chamberlainâs DMCA claim, not the District Courtâs denial of its own summary judgment motion.
DISCUSSION
A. Jurisdiction
Though we have jurisdiction to hear this appeal under 28 U.S.C. § 1295(a)(1), that finding rests upon a detailed jurisdictional inquiry. Chamberlainâs initial complaint described âan action for patent infringement arising under the Patent Laws of the United States, 35 U.S.C. §§ 271 et seq. and for copyright infringement arising under the Copyright Act, 17 U.S.C. § 1201.â The complaint stated four counts; three involved infringement of Chamberlain patents. Subsequent amendments to the complaint added four more non-patent claims. There is therefore little doubt that, both as filed and as amended, the District Courtâs jurisdiction âarose underâ the patent laws, at least in part.
Chamberlain argues, with some justification, that this characterization of its complaint alone is enough to confer appellate jurisdiction on this court. According to Chamberlain, the Supreme Courtâs emphasis of the well-pleaded complaint rule in determining our jurisdiction requires us to inquire only whether the District Courtâs jurisdiction âarose underâ the patent laws, at least in part. See Holmes Group v. Vornado Air Circulation Sys., 535 U.S. 826, 829, 122 S.Ct. 1889, 153 L.Ed.2d 13 (2002). Skylink does not dispute this point. Nevertheless, â[ejvery federal appellate court has a special obligation to satisfy itself ... of its own jurisdiction ... even though the parties are prepared to concede it.â Bender v. Williamsport Area Sch. Dist., 475 U.S. 534, 541, 106 S.Ct. 1326, 89 L.Ed.2d 501 (1986) (citations omitted). Though both our precedent and the Supreme Courtâs dicta concerning cases, such as.this one, where all patent issues were dismissed and only non-patent issues are on appeal, support our jurisdiction, the determination is not as clear cut as Chamberlain contends â in part because of the unusual language that the District Court used in dismissing the claims other than Count III, the DMCA claim that is the subject of this appeal.
The District Court first dismissed one of Chamberlainâs patent claims, Count II, âwithout prejudice to Plaintiffs reasserting its â703 patent claims if the Federal Circuit reverses Judge Conlonâs decision in Chamberlain Group, Inc. v. Interlogix, Inc., No. 01 C6157.â Chamberlain and Interlogix settled their case while it was on appeal. This court then remanded the matter for âthe purpose of allowing the District Court to consider the partiesâ motion to vacate its judgment.â Chamberlain Group, Inc. v. Interlogix, Inc., 75 Fed.Appx. 786 (Fed.Cir.2003). 6 Though the Interlogix trial court subsequently denied that motion, Chamberlain Group, Inc. v. Interlogix, Inc., No. 01-C6157, 2004 WL 1197258, 2004 U.S. Dist. LEXIS 9851 (N.D.Ill., May 28, 2004), that denial in no way disturbed the settlement. As a result, there is no longer any set of circumstances *1189 under which this court could âreverse Judge Conlonâs decision.â Chamberlain can no longer reassert Count II in any forum. The District Courtâs dismissal of Count II, though styled as âwithout prejudice subject to a condition subsequent,â has ripened into a dismissal with prejudice, and therefore serves as an adjudication on the merits of Count II.
The District Courtâs effective adjudication of Count II confirmed Federal Circuit jurisdiction to hear all appeals from the final judgment in this matter, 28 U.S.C. § 1295(a)(1), by assuring that the District Courtâs own jurisdiction arose in part under the patent laws. See Holmes, 535 U.S. at 826, 122 S.Ct. 1889. At the time that the District Court dismissed Count II, however, numerous other claims and counterclaims remained unresolved. Shortly thereafter, though, and subject to stipulation by the parties, the District Court dismissed all remaining claims other than Count III, the DMCA claim:
Counts IV through VII of the Second Amended Complaint and Counts I through VII of the Amended Answer and Counterclaim are dismissed with prejudice pursuant to Fed.R.Civ.P. 41(a). Counts I and VIII of the Second Amended Complaint are dismissed without prejudice pursuant to Fed.R.Civ.P. 41(a). The dismissal of the patent claims is without prejudice solely for the purpose of permitting the maintenance of the patent claims in the ITC investigation and nowhere else as per agreement of the parties. 7
Counts I, II, and VIII were the only patent claims in the Second Amended Complaint. This broad dismissal rendered the District Courtâs summary judgment for Skylink on the DMCA claim a final judgment from which Chamberlain could appeal.
Though we have never before had to consider our jurisdiction over matters in which a trial court dismissed all patent claims using precisely the language that this District Court did in dismissing Claims I, II, and VIII, our precedent is clear. Federal Circuit jurisdiction depends on whether the plaintiffs complaint as amended raises patent law issues. Gronholz v. Sears, Roebuck & Co., 836 F.2d 515, 519 (Fed.Cir.1987); see also Holmes, 535 U.S. at 829 n. 1, 122 S.Ct. 1889; Christianson v. Colt Indus. Operating Corp., 486 U.S. 800, 822-24, 108 S.Ct. 2166, 100 L.Ed.2d 811 (1988) (Stevens, J., concurring); Holmes, 535 U.S. at 835, 122 S.Ct. 1889 (Stevens, J., concurring). Where, as here, all of the patent claims in the amended complaint were dismissed prior to the non-patent ruling on appeal, the dispositive question is whether the dismissal was with or without prejudice. Nilssen v. Motorola, Inc., 203 F.3d 782, 785 (Fed.Cir.2000).
Dismissals without prejudice are de facto amendments to the complaint. Gronholz, 836 F.2d at 519. For the purposes of determining Federal Circuit jurisdiction, we do not differentiate between actual and constructive amendments; both divest us of jurisdiction if they eliminate all issues of patent law. See id. Dismissals with prejudice are adjudications on the merits, and not constructive amendments *1190 to the complaint. Zenith Elecs. Corp. v. Exzec, Inc., 182 F.3d 1340, 1346 (Fed.Cir.1999). In all such eases, we retain jurisdiction to hear all appeals on all issues. See id.
Taken together, whenever the complaint included a patent claim and the trial courtâs rulings altered the legal status of the parties with respect to that patent claim, we retain appellate jurisdiction over all pendent claims in the complaint. See Atari Inc. v. JS & A Group, Inc., 747 F.2d 1422, 1432 (Fed.Cir.1984) (en banc) overruled on other grounds by, Nobelpharma AB v. Implant Innovations, Inc., 141 F.3d 1059 (Fed.Cir.1998) (en banc in relevant part); Zenith, 182 F.3d at 1346; Nilssen, 203 F.3d at 785. In other words, if all patent claims raised in the amended complaint were dismissed without prejudice, the dismissal would divest us of jurisdiction; dismissals with prejudice would not. Nilssen, 203 F.3d at 785. Neither the specific rule under which the District Court dismissed the claims nor the wording of the dismissal alters the fundamental basis of our jurisdiction. Id. Dismissals divest this court of jurisdiction only if â[t]he parties were left in the same legal position with respect to [all] patent claims as if they had never been filed.â Id. â[T]he dismissal of a claim with prejudice operate[s] as an adjudication of that claim on the merits,â id., and preserves our jurisdiction.
Our jurisdiction in the present matter therefore hinges on whether one or more of the District Courtâs dismissals altered the legal positions of Chamberlain and Skylink vis-a-vis the dismissed claim. The Supreme Court has defined the difference between dismissals with and without prejudice:
The primary meaning of âdismissal without prejudice,â we think, is dismissal without barring the defendant from returning later, to the same court, with the same underlying claim. That will also ordinarily (though not always) have the consequence of not barring the claim from other courts, but its primary meaning relates to the dismissing court itself. Thus, Blackâs Law Dictionary (7th ed.1999) defines âdismissed without prejudiceâ as âremoved from the courtâs docket in such a way that the plaintiff may refile the same suit on the same claim,â id. at 482, and defines âdismissal without prejudiceâ as â[a] dismissal that does not bar the plaintiff from refiling the lawsuit within the applicable limitations period, ibid.â
Semtek Intâl Inc. v. Lockheed Martin Corp., 531 U.S. 497, 505-06, 121 S.Ct. 1021, 149 L.Ed.2d 32 (2001). This distinction is functional, rather than semantic. Notwithstanding the District Courtâs semantic characterization of its dismissal of Claim II as âwithout prejudiceâ subject to a condition subsequent that can no longer occur, and of Claims I and VIII as âwithout prejudiceâ except in a single forum, Chamberlain is barred from reasserting these claims. The District Courtâs dismissals clearly fail to meet the Supreme Courtâs definition of âdismissal without prejudiceâ because they alter the legal status of the parties vis-ĂĄ-vis all of Chamberlainâs asserted patent claims. Chamberlain and Skylink were not âleft in the same legal position with respect to the patent claims as if they had never been filed.â Nilssen, 203 F.3d at 785. We therefore have jurisdiction to hear this appeal under 28 U.S.C. § 1295(a)(1).
B. The Partiesâ Positions
On appeal, the parties have raised a number of issues that we must address both as matters of statutory construction and as they relate to the factual disposition of this case. Chamberlain argues that *1191 âSkylink violates the prima facie requirement of anti-trafficking § 1201(a)(2).â According to Chamberlain, âSkylink did not seriously dispute that the operation of its transmitters bypasses Chamberlainâs rolling code security measure to gain access to Chamberlainâs copyrighted GDO receiver operating software, but instead focuses on an âauthorizationâ defense.â Given that âplain languageâ interpretation of the statute, Chamberlain also argues that the District Court erred in assigning the plaintiff the burden of proving that access was unauthorized rather than placing the burden on the defendant to prove that the access was authorized. Finally, with the burden thus shifted, Chamberlain argues that Skylink has not met its burden, and that the District Courtâs grant of summary judgment was therefore in error.
Skylink primarily urges us to adopt both the District Courtâs construction and its application of its construction to the facts of this case. In particular, Skylink urges us not to place the burden of proving authorization on defendants, arguing that it would be tantamount to reading a new âauthorityâ requirement into the DMCA. 8 To resolve this dispute, we must first construe the relevant portions of the DMCA, and then apply the statute, properly construed, to the specific facts at issue.
C. Standard of Review
To resolve issues of substantive copyright law, this court applies the law as interpreted by the regional circuits, in this case the Seventh Circuit. See Atari Games Corp. v. Nintendo of Am., Inc., 975 F.2d 832, 837 (Fed.Cir.1992). Because this matter came to us following a summary judgment, we must apply the Seventh Circuitâs standard of review for summary judgments. This standard does not differ from circuit to circuit. Fed.R.Civ.P. 56; Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). Appellate courts review summary judgment motions de novo, viewing the record and all inferences from it in the light most favorable to the nonmoving party. Schmidt v. Ottawa Med. Ctr., P.C., 322 F.3d 461, 463 (7th Cir.2003). Summary judgment is appropriate only when there is no genuine issue as to any material fact and where the moving party is entitled to judgment as a matter of law. Id.
Our task is essentially one of statutory construction. It is also a matter of first impression. For us to determine whether or not Skylink was entitled to summary judgment that its Model 39 universal transmitter does not violate the DMCA, we must first determine precisely what § 1201(a)(2) prohibits. The Seventh Circuit has considered the DMCA only once, in In re Aimster Copyright Litigation, 334 F.3d 643, 655 (7th Cir.2003). That case involved provisions of the DMCA other than those at issue here. To the extent *1192 that the Seventh Circuit provided any useful guidance to our consideration of the DMCA, it can be captured in two simple sentences: âThe DMCA is an attempt to' deal with special problems created by the so-called digital revolution.... The Act does not abolish contributory infringement.â Id. As a result, there is no binding precedent governing the substantive issues in this case. The parties have provided numerous citations to persuasive authority from other regional circuits and from District Courts, primarily but not exclusively Universal City Studios, Inc. v. Reimerdes, 111 F.Supp.2d 294, 319 (S.D.N.Y.2000) (âReimerdesâ), aff'd sub nom. Universal City Studios v. Corley, 273 F.3d 429 (2d Cir.2001) (âCorleyâ). 9 The parties pointed the District Court toward this case as well, and the District Court relied in part upon the Reimerdes analysis in its own construction of the DMCA. See Chamberlain I, 292 F.Supp.2d at 1036-40; Chamberlain II, 292 F.Supp.2d at 1045. â
The general methodology guiding a courtâs construction of a statute is well established, and is the same in the Seventh Circuit as it is in the Federal Circuit.
Compare Bethlehem Steel Corp. v. Bush,
918 F.2d 1323, 1327 (7th Cir.1990),
with Madison Galleries, Ltd. v. United States,
870 F.2d 627, 630 (Fed.Cir.1989). We must start with the language of the statute.
See Gwaltney of Smithfield, Ltd. v. Chesapeake Bay Found.,
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