Online platform’s EULA barred software developer from claiming copyright ownership

eulaDeveloper entered into an agreement with the TD Ameritrade platform that gave him access to the platform’s APIs so that he could develop his own analytical tools. He claimed that without his authorization, the platform incorporated his software routines into its own technology. Developer sued for copyright infringement.

The platform moved to dismiss the claim and the court granted the motion.

Developer had presented to the court a registration certificate as evidence that he owned the copyright in the software he created. Such a registration certificate serves as prima facie evidence of copyright ownership, and establishes a rebuttable presumption of such ownership.

In its argument to dismiss developer’s claims, the platform pointed to its agreement with developer that stated, among other things, that use of the services “[would] not confer any title, ownership interest, or any intellectual property rights to me.” It also expressly prohibited the developer from creating derivative works from the services. The platform looked to these provisions in the agreement to rebut the presumption that the developer owned the copyright in the tools. The court agreed.

Developer argued that the platform had actually encouraged – and thereby authorized – the development of tools such as the ones he had created. But the court observed that while such a claim is “possible,” the developer had failed to allege any facts to demonstrate that the claim is “plausible.” So in sum, the court credited the terms of the agreement, and took those terms to preclude the developer from owning the copyright in the software he had developed.  It should be noted that the court left open the option for plaintiff to re-plead. But that does little to mitigate the extent to which the court’s reasoning here as to how the agreement could limit a claim of copyright is questionable.

TD Ameritrade v. Matthews, 2017 WL 4812035 (D. Alaska, October 25, 2017)

[Post updated 27 Oct 2017 at 8:08 CST to address option to re-plead.]

Evan_BrownAbout the Author: Evan Brown is a Chicago technology and intellectual property attorney. Call Evan at (630) 362-7237, send email to ebrown [at] internetcases.com, or follow him on Twitter @internetcases. Read Evan’s other blog, UDRP Tracker, for information about domain name disputes.