Copyright License Improperly Read As Perpetual Under New York Law

The U.S. Court of Appeals for the Second Circuit reversed the dismissal of a copyright infringement claim, holding that the district court erred in dismissing the claim on the basis that the contract at issue unambiguously granted the defendants the right to copy plaintiffs' materials indefinitely. Chapman v. New York State Div. for Youth, Case No. 05-7010 (2nd Cir., Oct. 14, 2008) (Walker, J.).

Plaintiffs Bruce Chapman and Handle With Care Behavior Management Systems (HWC) marketed a training program that teaches a safe technique for physically restraining others. The plaintiffs sued 16 defendants—various New York state entities—for copyright infringement and antitrust violations based on a dispute arising from a 1997 contract. Pursuant to the contract, HWC provided training in the techniques to defendants and allowed defendants to reproduce the training materials. The contract provided for a four-month term ending on August 31, 2007. In 1998, one defendant, Cornell