Schatz v. Binary Bits L.L.C.

Background

Howard Schatz and Beverly Ornstein brought a copyright lawsuit against Binary Bits LLC, doing business as FriendsEAT.com. They alleged that Binary Bits displayed their copyrighted photograph on its website without permission.

Binary Bits moved to dismiss under Federal Rule of Civil Procedure 12(b)(6), arguing that the copyright claim was barred by the applicable statute of limitations. In the alternative, Binary Bits sought to limit the attorney fees, damages, and costs that the plaintiffs could recover.

Court’s Review

The court had referred the motion to Magistrate Judge Sarah Netburn. Judge Netburn issued a Report and Recommendation recommending that the motion to dismiss be denied. No party filed objections.

Because there were no objections, Judge Engelmayer reviewed the recommendation for clear error, meaning an obvious mistake on the face of the record. He found no such error and adopted the Report and Recommendation in its entirety. The opinion does not independently describe the factual analysis in that report; instead, it incorporates the report’s factual summary by reference.

Ruling

Judge Engelmayer denied the motion to dismiss. Under the order, Binary Bits must answer the complaint by August 29, 2024. The court also stated that the parties’ failure to object to the recommendation waived appellate review of those objections.