Warning! Copyright Infringement Case Dismissed Due to Choice of Law Provision
Metal Bulletin, an English corporation, sued Scepter, Inc., a company subscribing to its services that, contrary to subscription terms and conditions, purchased an individual Metal Bulletin subscription for use by their employees. Metal Bulletin brought two claims against Scepter including copyright infringement under United States law. Scepter successfully moved to dismiss the claim for copyright infringement on the ground that the subscription’s choice-of-law term requires application of English law.
The choice-of-law terms within the subscription provides:
“Where you visit, register and/or subscribe to a [Metal Bulletin] Site . . . these Terms (and any dispute or claim arising out of or in connection with these terms, including non-contractual disputes or claims), to the maximum extent permissible under the law of the territory that you are located in, will be governed by the laws of England and Wales and will be subject to the non-exclusive jurisdiction of the English courts.”
The S.D.N.Y. Court reasoned Metal Bulletin’s copyright claims fell within the subscription choice-of-law terms because the copyright infringement in question occurred as a result of excess use of the license, specifically, “any dispute or claim arising out of or in connection with these terms, including non-contractual disputes or claims.”
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