Two Federal Preemption Cases, One Consistent Outcome
Two recent decisions from the Fourth and Fifth
Circuits—with similar outcomes—have contributed further
guidance and consistency on the issue of federal preemption with
respect to state law claims pertaining to conversion and computer
fraud, as well as unfair competition.
Both circuits explained that federal preemption, as it applies
to federal intellectual property laws, is intended to maintain
balance by preventing states from offering intellectual property
protections that the federal Copyright or Patent Acts do not
provide. Citing § 301 of the Copyright Act, both courts
examined the facts of their respective cases under the Act's
two-pronged inquiry to determine when a state law claim is
preempted. First, the work at issue must be within the scope of the
subject matter of copyright. If it is, then a state-law claim is
preempted if the rights granted thereunder are equivalent to those
protected by federal
