Addressing for the first time the standard of review for findings of "substantial similarity" in copyright cases, the U.S. Court of Appeals for the Eighth Circuit followed the majority of circuits in adopting a clearly erroneous standard of review. Taylor Corp. v. Four Seasons Greetings, Case No. 04-1088 (Eighth Cir. Apr. 11, 2005) (Rieley, C.J.)
In the trial court, six greeting cards made by Four Seasons were found to infringe copyrights owned by Taylor. Four Seasons appealed, seeking a de novo review of the district court’s findings citing Second Circuit case law. The Eighth Circuit, however, explicitly rejected the Second Circuit cases adopting a de novo review for determining substantial similarity in copyright cases. The Court held that a district court’s findings of fact should be given deference, under the clearly erroneous standard, even when they are solely based on documentary evidence.
The Court also affirmed the trial court’s grant of permanent injunction. Four Seasons argued error due to Taylor’s decision to forego damages and a jury trial. The Court rejected these arguments, finding that a party can seek a permanent injunction even where no damages are sought and that there is no right to a jury trial where the plaintiff only seeks an injunction, "a purely equitable remedy." The Court reasoned that under the circumstances, denial of the requested injunctive relief would "amount to a forced license to use the creative work of another."
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