Before CHOY, WIGGINS and LEAVY, Circuit Judges.
CHOY, Circuit Judge:
This appeal involves a dispute over the copyright ownership of a computer
spreadsheet program called "Full Impact" and the alleged misappropriation
of Appellants' trade secrets by Ashton-Tate. The district court published
its order granting summary judgment on all claims in favor of Ashton-Tate.
Ashton-Tate v. Ross, 728 F.Supp. 597 (N.D.Cal.1989). Appellants, Richard
Ross and his company Bravo Technologies, Inc., argue that the district court
abused its discretion by refusing to consider their supplemental brief in
opposition to the summary judgment motion. They also argue that the district
court erred in any event by declaring Ashton-Tate the sole owner of the
copyright in Full Impact. Finally, they argue that the district court should
not have ruled that their trade secret claims were time- barred. We affirm.
In September 1984 appellant Richard Ross (Ross) decided to collaborate
with Randy Wigginton (Wigginton) on the development of a computer spreadsheet
program for the Apple Macintosh computer. Ross alleged that he and Wigginton
agreed that Ross would work on the "engine," or computational
component of the program, and Wigginton would work on the user interface
portion. During September 1984 through February of 1985, Ross and Wigginton
worked on their respective portions of the program. They also met on at
least two occasions to discuss ideas and concepts for the program. At one
of these meetings, Ross gave Wigginton a handwritten list of user commands
he felt the interface should contain. The actual writing of the user interface
portion of the program was done by Wigginton, however. Ross did all the
writing of the computational half of the program.
Ross and Wigginton had not entered into any formal or written contract
other than a nondisclosure of proprietary information agreement. In February
1985 the collaborators started to disagree about how they would publish
and market their new program. Ross wanted to publish and distribute the
product using his independent company, Bravo Technologies. Wigginton apparently
wanted a more established company to publish and market the program.
In March, Wigginton made a presentation to employees of Ashton-Tate, one
of the Nation's largest software publishers, to see if Ashton-Tate might
be interested in publishing the spreadsheet program he and Ross were developing.
When Ross learned of Wigginton's meeting with Ashton-Tate, he confronted
Wigginton on March 28, 1985. According to Ross, once it became clear to
Wigginton that Ross and Bravo were not interested in having Ashton-Tate
publish the spreadsheet, Wigginton informed Ross that he was going to work
for Ashton- Tate and was going to take the user interface portion of the
MacCalc prototype with him.
In April 1985 Wigginton did go to work for Ashton-Tate. He and his company,
"Encore," continued to work on the user interface and adapted
it for use with a new engine from a program called "Alembic,"
which Ashton-Tate already had an interest in. Eventually, the combination
of Wigginton's user interface and the adapted Alembic engine became the
"Full Impact" spreadsheet program released by Ashton-Tate. Meanwhile,
Ross worked on his spreadsheet program. By June of 1986, he completed work
on a user interface to combine with his engine and published "MacCalc."
On April 17, 1985, Ross met with representatives of Ashton-Tate to discuss
working on an Ashton-Tate program for IBM personal computers. Ross signed
Ashton-Tate's nondisclosure agreement and Micheal Stone of Ashton-Tate signed
Bravo's, Ross's company. According to Ross, Stone asked about the MacCalc
product, whereupon Ross obtained Stone's assurance that the nondisclosure
agreement would cover any discussion about MacCalc. Ross also claims that
he subsequently received confirmation from Roy Folk, an outside consultant
to Ashton-Tate and the other person at the meeting, that the nondisclosure
agreement covered Wigginton's earlier demonstration of the MacCalc prototype.
In June 1985, Ross wrote to Stone to express concern that Ashton-Tate was
using his and Bravo's proprietary information to help develop a spreadsheet
program. Ross received no response to this inquiry. Ross also alleges
that in June 1987 Dave Stephenson, a marketing manager at Ashton-Tate, contacted
Ross to discuss the possibility of Ross assisting in the development of
a Macintosh spreadsheet program tentatively called "Glass." Ross
claims to have again expressed concern about Ashton-Tate's possible use
of Bravo's proprietary information. Ross asserts that Stephenson assured
him things would be worked out and that there was only a "fifty-fifty"
chance that Ashton-Tate would actually complete "Glass." Ross
claims to have discussed his concerns with other Ashton-Tate executives
during 1987, and to have received assurances from each one.
Ashton-Tate neither acknowledges nor denies that it approached Ross about
working on the engine of the Glass project, but denies that Ross was given
any assurances. Ashton-Tate insists that Ross fabricated these assurances
to avoid summary judgment, and that his allegations flatly contradicted
his earlier deposition testimony.
On June 12, 1988, Ross demanded that Ashton-Tate compensate him and Bravo
for their contribution to the Full Impact program. On July 20, 1988, Ashton-Tate
filed its complaint for declaratory relief. Ross and Bravo responded by
filing their answer and counterclaims on August 24, 1988.
Proceedings Below
At a status conference on October 19, 1988, Ashton-Tate notified Ross and
Bravo that it intended to file a motion for summary judgment. On December
22, 1988, Ashton-Tate filed its summary judgment motion. Appellants Ross
and Bravo filed their response on January 11, 1989.
At the January 25 hearing on Ashton-Tate's summary judgment motion, Ross
and Bravo requested additional time so an expert could examine recently
produced evidence to determine whether the engine portion of the Full Impact
program utilized source code from the MacCalc prototype. The court granted
Ross and Bravo their request for additional time, but only for the purpose
of determining whether development of the Full Impact engine had relied
on the engine from the MacCalc prototype.
Ross and Bravo filed their supplemental brief in opposition to Ashton-Tate's
summary judgment motion on February 24, 1989. The material submitted, which
included declarations from experts Lang and Hoffman, did not comply with
the district court's order granting additional time. Ross and Bravo requested
that the district court consider their supplemental brief under Fed.R.Civ.P.
56(f). They asked the district court to consider the brief because the
information forming the basis of the declarations contained therein was
not available during the drafting of their original opposition brief.
The district court rejected Ross and Bravo's Rule 56(f) motion in an order
dated March 31, 1985. It held that the motion was not timely made, that
the expert declarations were cumulative of material already presented in
opposition to the summary judgment motion, and that Ross and Bravo failed
to show that the foundation evidence for the expert declarations could not
have been obtained far enough in advance to incorporate into the initial
opposition brief. The district court therefore refused to consider the
supplemental brief except as it related to the issue of source code copying
of the engine portion of the MacCalc prototype.
On April 4, 1989, the district court issued a published order granting
Ashton- Tate's motion for summary judgment on all issues. 728 F.Supp. 597.
The court held that even if there was an agreement to collaborate, Ross's
contribution of ideas to the user interface written by Wigginton was insufficient
to make Ross a joint author of the interface. 728 F.Supp. at 602.
The district court ruled against Ross and Bravo on their other theories
as well, including their state law cause of action for misappropriation
of trade secrets by Ashton-Tate. The court made this ruling on the basis
that the applicable limitation period had run. Ross and Bravo timely appealed.
I. Did the district court abuse its discretion in denying Ross and Bravo's
request to consider additional material in opposition to the summary judgment
motion?
II. Did the district court err in holding that Ross and Bravo had no copyright
interest in the user interface portion of the Full Impact program?
III. Did the district court err in holding Ross and Bravo's misappropriation
of trade secrets action time barred?
Denial of a Rule 56(f) application is reviewed for abuse of discretion.
Visa Int'l Service v. Bankcard Holders, 784 F.2d 1472, 1475 (9th Cir.1986).
The district court's grant of summary judgment is reviewed de novo. Kruso
v. International Tel. & Tel. Corp., 872 F.2d 1416, 1421 (9th Cir.1989),
cert. denied, --- U.S. ----, 110 S.Ct. 3217, 110 L.Ed.2d 664 (1990).
I.
Denial of Rule 56(f) Motion
The district court acted well within its discretion in refusing to consider
most parts of the belated declarations of Lang and Hoffman. Ross and Bravo
failed to invoke Fed.R.Civ.P. 56(f) in a timely manner. At the summary
judgment hearing, appellants requested more time for the narrow purpose
of examining the source code for "Glass," the prototype for Full
Impact, to determine whether Full Impact relied in any manner on the engine
of the MacCalc prototype. Ross and Bravo's Rule 56(f) motion was made concurrently
with the submission of their supplemental brief, more than six weeks after
the summary judgment hearing.
Ross and Bravo contend that there is no particular time by which a Rule
56(f) request must be made. They cite Garrett v. City and County of San
Francisco, 818 F.2d 1515, 1518-19 (9th Cir.1987) for the proposition that
a Rule 56(f) motion can be timely even when filed after the granting of
summary judgment. Garrett does not aid appellants. In Garrett, appellant
had a discovery motion pending, which this court construed as equivalent
to a Rule 56(f) motion, when the district court entered summary judgment.
This court merely held that the district court should have considered appellant's
discovery request prior to entering summary judgment.
According to Wright, Miller and Kane: Clearly, subdivision (f) must be
read in conjunction with subdivision (e) of Rule 56.... [W]hen the movant
has met the initial burden required for the granting of summary judgment,
the opposing party must establish a genuine issue for trial under Rule 56(e)
or explain why he cannot yet do so under Rule 56(f). Rule 56(c) states
that affidavits filed under either subdivision must be filed prior to the
day of the hearing. 10 Wright, Miller & Kane, Federal Practice and Procedure:
Civil s 2740 (emphasis added).
Rule 56(c) does not explicitly refer to either subdivisions (e) or (f).
Rather, it refers to "opposing affidavits." One could argue that
a Rule 56(f) motion is not technically an opposing affidavit and that the
time restriction in Rule 56(c) does not apply to a Rule 56(f) motion. See
Id. s 2719. The problem with such legal sophistry, however, is illustrated
by the facts of this case. Appellants' Rule 56(f) motion requested that
the district court consider supplemental expert affidavits; it thus amounted
to an introduction of additional "opposing affidavits." The district
court was not required to allow this effort to avoid reasonable time constraints.
A request for additional time, more discovery, or, in this case, a request
to consider late affidavits under Rule 56(f) does "oppose" the
entering of summary judgment, which implies that the time constraint in
Rule 56(c) should apply. Further, the process of evaluating a summary judgment
motion would be flouted if requests for more time, discovery, or the introduction
of supplemental affidavits had to be considered even if requested well after
the deadline set for the introduction of all information needed to make
a ruling has passed. See Pfeil v. Rogers, 757 F.2d 850, 858 (7th Cir.1985)
(district court's decision to disregard all material filed after a reasonable
filing deadline was not an abuse of discretion because it allowed court
to preserve moving party's right to respond to resisting party's arguments
and to decide summary judgment motion in a timely fashion); see also Nestle
Co., Inc. v. Chester's Market, Inc., 571 F.Supp. 763, 773 (D.Conn.1983)
(failure to offer any explanation or justification for not filing opposing
affidavit until one month after hearing requires that it not be considered;
to do otherwise would be bending even the liberal Federal Rules so out
of shape as to have no meaning).
Thus, implication and logic require that a Rule 56(f) motion be made prior
to the summary judgment hearing. We therefore affirm the district court's
decision not to consider the portions of the supplemental affidavits that
are unrelated to source code copying of Ross's engine. Consequently, we
also refuse to consider the expert affidavits of Lang and Hoffman except
as they address the issue of source code copying of the prototype engine.
II.
Copyright Ownership of Full Impact
Appellants present three separate theories why the district court erred
in declaring that they had no copyright interest in the Full Impact program.
First, they argue that Ross's contribution of ideas and guidance for the
user interface created a triable issue of whether he was a joint author
of the interface. Next, they claim that Ross's handwritten sheet of commands
provided to Wigginton constituted copyrightable expression, thereby making
Ross a joint author of the interface. Finally, they insist that the "joint
work" was the entire MacCalc prototype, which included the user interface
written by Wigginton and the engine written by Ross, and thus Ross became
a joint author of the entire prototype; therefore, they claim Ross is a
joint author of Full Impact because its user interface is derived substantially
from the MacCalc user interface. We reject each of these theories.
A. Are Intention and Ideas Enough?
As the district court correctly noted, a "joint work" is "a
work prepared by two or more authors with the intention that their contributions
be merged into inseparable or interdependent parts of a unitary whole."
17 U.S.C. s 101 (1977). The authors of a joint work are co-owners of the
copyright in that work. 17 U.S.C. s 201(a). The question presented by
Appellants' first theory, where Ross claims authorship on the basis of an
alleged agreement to collaborate combined with his noncopyrightable contribution
to the interface, is what satisfies the requirements for joint authorship.
The district court held that "[b]ecause Ross only contributed ideas
to the Full Impact interface, which by themselves are not protectable, the
program is not a 'joint work' between Ross and Wigginton." 728 F.Supp.
at 602. The rule expressed by the district court--that only contributors
of copyrightable material can be authors of a work--is not entirely settled,
but is consistent with the direction our circuit has taken.
Academic authorities split on what type of "contribution" the
copyright law requires for joint authorship purposes. The Nimmers argue
that: If authors A and B work in collaboration, but if A's contribution
is limited to plot ideas which standing alone would not be copyrightable,
and B weaves the ideas into a completed literary expression, it would seem
that A and B are joint authors of the resulting work. M. & D. Nimmer,
1 Nimmer on Copyright s 6.07, p. 6-18 (1989). Conversely, Goldstein in
Copyright: Principles, Law and Practice, takes a different view: A collaborator's
contribution will not produce a joint work, and a contributor will not obtain
a co-ownership interest, unless the contribution represents original expression
that could stand on its own as the subject matter of copyright. P. Goldstein,
Copyright: Principles, Law and Practice, s 4.2.1 p. 379 (1989).
The district court adopted the view championed by Professor Goldstein.
This court recently adopted the same position in S.O.S. Inc. v. Payday
Inc., 886 F.2d 1081, 1086-87 (9th Cir.1989). In Payday, the appellee claimed
joint authorship of a computer program on the basis of contributions to
the design of the program. We ruled that such a contribution was insufficient
to raise a material issue of fact about whether such a contributor was a
joint author. Id., citing Whelan Assocs. v. Jaslow Dental Laboratory, 609
F.Supp. 1307, 1318-19 (E.D.Pa.1985), aff'd, 797 F.2d 1222 (3d Cir.1986),
cert. denied, 479 U.S. 1031, 107 S.Ct. 877, 93 L.Ed.2d 831 (1987). We held
in Payday that "[t]o be an author, one must supply more than mere direction
or ideas; one must 'translate[ ] an idea into a fixed tangible expression
entitled to copyright protection.' Community for Creative Non-Violence
v. Reid, [490 U.S. 730,] 109 S.Ct. 2166, 2171 [104 L.Ed.2d 811] (1989)."
Id.
Payday involved a dispute over a commissioned work. The Reid decision
quoted in Payday stated the general rule that a person must translate ideas
into copyrightable expression to receive copyright protection as an author
of a work. Reid also pointed out, however, that the Copyright Act carves
out an important exception for works made for hire. 109 S.Ct. at 2171.
Further, Reid left undecided whether joint authorship is another exception
to the general rule that to be an author one must make an independently
copyrightable contribution to a work. Neither party in Reid had appealed
the D.C. Court of Appeals' decision to remand the joint authorship issue
to the district court. The D.C. Court of Appeals remanded because it thought
it possible that the plaintiff had contributed copyrightable expression
to the work, and that one might be an author of a "joint work"
by making significant contributions even if they are not independently copyrightable.
846 F.2d 1485, 1496-98 (D.C.Cir.1988).
Even though this issue is not completely settled in the case law, our circuit
holds that joint authorship requires each author to make an independently
copyrightable contribution. Thus the district court properly decided this
issue against Appellants.
B. Was Ross's Contribution to the User Interface Copyrightable?
Appellants argue that the handwritten list of user commands Ross gave
to Wigginton was a fixed expression of Ross's ideas, and as such was entitled
to copyright protection. They contend that this list was used by Wigginton
to help develop the user interface and therefore, Ross is a joint author
of the interface portion of Full Impact. This argument is meritless for
the reasons given in the district court's order, 728 F.Supp. at 602. The
list simply does not qualify for copyright protection.
C. Did Ross's Copyrightable Contribution to the MacCalc Prototype Make
Him a Joint Author of Full Impact?
Appellants also claim that Ross is a joint author of the Full Impact program
on the basis of his contribution to the MacCalc prototype. They argue that
because Ross contributed copyrightable expression to the MacCalc prototype
by writing the engine portion of the program, he is a joint author of the
prototype and that this gave him an undivided ownership interest in the
entire prototype. Hence, they argue, Full Impact's use of the user interface
portion of the MacCalc prototype made Ross a joint author of that program
as well.
The district court focused on the user interface and Ross's contributions
to it when determining appellants' joint authorship claim. This made sense,
because this was the theory pushed by Appellants, and at the time the contribution
requirement for authorship of joint works was not settled in this circuit.
It is possible, however, to conceive of the entire MacCalc prototype as
a joint work. Indeed, if Ross and Wigginton intended to create a joint
work, and both contributed copyrightable material to the resulting work
(the MacCalc prototype), then they may have both obtained an undivided interest
in the entire work. 17 U.S.C. s 201(a); 1 Nimmer on Copyright, s 6.03
(1989).
In other words, Ross may have obtained a one-half ownership interest in
the user interface and Wigginton may have obtained a one-half interest in
the engine. We need not decide this issue now, however. Even assuming,
arguendo, that Ross does have a one-half interest in the interface written
by Wigginton, it does not follow that Ross is a joint author of the Full
Impact program because its interface is derived from his and Wigginton's
joint work. The Second Circuit's decision in Weissmann v. Freeman, 868
F.2d 1313 (2d Cir.), cert. denied, 493 U.S. 883, 110 S.Ct. 219, 107 L.Ed.2d
172 (1989), is a clear refutation of this position. Joint authorship in
a prior work is insufficient to make one a joint author of a derivative
work: "[i]f such were the law, it would eviscerate the independent
copyright protection that attaches to a derivative work that is wholly independent
of the protection afforded the prexisting work." Id. at 1317. The
analysis in Weissmann is sound, and we adopt its reasoning on this point.
Interestingly, the court in Weissmann also discussed the situation where
a joint work is utilized or licensed for use in a derivative work by one
of the co-authors of the joint work. In such a situation, no cause of action
for infringement exists, "because an individual cannot infringe his
own copyright. The only duty joint owners have ... is to account for profits
from [the joint work's] use." Id. at 1318.
This circuit made a similar ruling in Oddo v. Ries, 743 F.2d 630 (9th Cir.1984).
There a co-owner of a copyright in an unpublished guide book had infringed
the other co-owner's copyright by publishing a revised and expanded guide
book that used much of the original unpublished one. We held that a co-
owner cannot be liable for infringement of the copyright, and that each
author has the independent right to use or license the copyright subject
only to a duty to account for any profits he earns from the licensing or
use of the copyright. Id. at 633. The duty to account for profits for
use or licensing a joint work does not derive from the copyright law's proscription
of infringement but it stems from equitable doctrines relating to unjust
enrichment and general principles of law governing the rights of co-owners.
Id.
Appellants discussed this theory for protecting their legal interest on
the penultimate page of their response brief, where they state that "[w]hether
or not Ross is considered a joint author of the Full Impact, he is entitled
to an accounting of the profits of Full Impact to the extent that the product
utilizes his undivided ownership interest in the MacCalc user interface."
This might be correct if Wigginton were the owner of Full Impact and appellants
had sued him. However, because Wigginton presumably sold his services and
the use of the user interface to Ashton-Tate for use in Full Impact, appellants
at most have a right to a share of the proceeds Wigginton has received or
receives for the use of the interface (assuming Appellants can prove that
the prototype was a joint work Ross has an undivided ownership interest
in and part of the work was used in Full Impact).
In short, it appears that Appellants have misframed the type of relief
they could litigate with any possibility of success. While an author of
a joint work does not acquire an authorship interest in derivative works
that utilize part of the joint work, that author may be entitled to compensation
for the use of the original joint work. The problem for Appellants in this
appeal, however, is that such a claim for compensation is not a copyright
claim. Furthermore, the claim would have to be against the alleged "co-author"
Wigginton, because he was the person who allegedly allowed Ashton-Tate to
use the user interface portion of the joint work for use in Full Impact.
We wish to clarify, however, the district court's statement that "[b]ecause
Ross only contributed ideas to the Full Impact interface, ... the program
is not a 'joint work' between Ross and Wigginton." 728 F.Supp. at
602. While the court was correct to hold that the user interface is not
a "joint work" as a result of Ross's contribution to the interface
itself, the court did not resolve whether Ross's copyrightable contribution
to the engine of the MacCalc engine entitled him to an undivided interest
in the entire prototype, including the interface. We do not decide this
question either, because it is unnecessary to the resolution of this appeal.
Thus we affirm the district court's order granting summary judgment on
Ashton-Tate's request for a declaration that: (1) Ashton-Tate owns all
the copyright interest in Full Impact; and (2) Full Impact does not infringe
upon existing copyrights. Similarly, it was proper to enter summary judgment
against Appellants' counterclaim for declaratory relief with respect to
their copyright interest in Full Impact.
III.
Trade Secret Claims, Commencement of the Limitation Period
In its order granting Ashton-Tate's summary judgment motion, the district
court ruled that Appellants' trade secret claims were time-barred under
the applicable statute of limitation. The court also expressed its belief
that the alleged trade secrets were not actually trade secrets at all, but
it did not make a ruling on this point. 728 F.Supp. at 603 fn. 2. We agree
with the district court that Appellants' trade secret claims were time-
barred.
There is agreement that Cal.Civ.Code s 3426.6 contains the applicable statute
of limitation. It reads: [a]n action for misappropriation must be brought
within three years after the misappropriation is discovered or by the exercise
of reasonable diligence should have been discovered. For the purpose of
this section, a continuing misappropriation constitutes a single claim.
Cal.Civ.Code s 3426.6 (1989). "Misappropriation" is defined in
a separate section of California's trade secret laws as: (1) Acquisition
of a trade secret of another by a person who knows or has reason to know
that the trade secret was acquired by improper means; or (2) Disclosure
or use of a trade secret of another without express or implied consent by
a person who:
. . . . .
(B) At the time of disclosure or use, knew or had reason to know that his
or her knowledge of the trade secret was:
. . . . .
(ii) Acquired under circumstances giving rise to a duty to maintain its
secrecy or limit its use. Cal.Civ.Code s 3426.1 (1989).
California only recently adopted the Uniform Trade Secrets Act (UTSA),
but we believe the district court correctly interpreted the language of
the statute and properly applied it to this dispute. The initial misappropriation
in this case, if any, occurred in February 1985 when Wigginton disclosed
Appellants' alleged trade secrets to Ashton-Tate. Ross learned of this
incident in March, 1985. It is true that if Ashton-Tate subsequently used
these secrets, that also constitutes misappropriation. The statute of limitation,
however, specifically states that a continuing misappropriation constitutes
a single claim. Thus Appellants' argument is unpersuasive that the limitation
period only commenced to run in 1988 upon their discovery of Ashton-Tate's
use of the secrets.
The district court cited Whittaker Corp. v. ExecuAir Corp., 736 F.2d 1341
(1984), to support its view of when the "misappropriation" occurred
and the limitation period started to run. ExecuAir held that the misappropriation
claims in that case accrued when the alleged owner of the trade secrets
became aware of the third party's (ExecuAir) acquisition of those secrets.
Id. at 1345. While ExecuAir came down prior to California's adoption of
the UTSA, we think it expresses the rule intended by Cal.Civ.Code s 3426.6.
See Milgrim, Milgrim on Trade Secrets, s 7.04[2] fn. 14.1. We also find
Appellants' estoppel claims meritless. Accordingly, we affirm the district
court's well reasoned ruling on the trade secret claims.
We AFFIRM the district court's grant of summary judgment in its entirety.