SCOTUS to Weigh in on Unicolors Dispute with H&M

The Supreme Court of the United States agreed to hear a copyright dispute between fabric designer Unicolors and retailer H&M regarding whether inaccuracies in a copyright registration can result in invalidation. Unicolors accused H&M of using its design on jackets and skirts. In 2018, the Central District of California ruled in favor of Unicolors and ordered H&M to pay damages and attorneys’ fees for willful copyright infringement. H&M appealed, arguing that Unicolors’ registration for the design was invalid because the registration covered 31 unrelated designs. While U.S. copyright law allows registration of multiple works together, the works must form a “single unit." In 2020, the Court of Appeals for the Ninth Circuit reversed the district court’s decision, finding that a “single unit” should mean a “collection of works in a singular, bundled collection.” The appeals court also ruled that the district court should have sought guidance from the Copyright Office on whether these inaccuracies would have led to a refusal of registration. World Intellectual Property Review interviewed Finnegan partner Margaret Esquenet for her thoughts on the case.

Margaret was not surprised that the Supreme Court agreed to review this case. She noted that the case could have significant ramifications for artists and smaller brands. She said, “Permitting defendants to invalidate registrations on the basis of knowing material misrepresentations that do not rise to the level of fraud would likely have the biggest negative impact on individual artists and small businesses who often file applications without the advice of counsel and may not fully understand the nuances of the application process.”

Read the full article here.