The “Demise” of the Server Test

As with Mark Twain, reports of the death of the server test are greatly exaggerated. In this article, Minnesota attorney Thomas James (“The Cokato Copyright Attorney”) explains what happened – and what did not happen – in Emmerich Newspapers, Inc. v. Particle Media, Inc.

The Copyright Act gives a copyright owner the exclusive right to publicly display the work.

In Perfect 10 v. Amazon, the Ninth Circuit Court of Appeals held that a website is liable for unauthorized public display of a coprighted work only if the image is stored on the website’s server. The court reasoned that “display” means showing a copy of the work. To show a copy, it is necessary to possess one. But it is not necessary for a website owner to possess a copy of a work to write code that instructs a user’s browser to display the content of a file that is hosted somewhere else. Therefore, encoding a website to instruct a user’s browser to display as an embedded image a copy of a work that is hosted on a different server does not infringe the copyright owner’s public display right.

That case involved the display of images in search engine results. Astute readers with remarkably good memories will recall that I have previously written about a case that extended the “server test” announced in Perfect 10 to social media. Specifically, a district court held that directing a user’s browser to an image that is hosted on Instagram’s server does not constitute “display” of the image. Since no direct infringement by means of “public display” occurred, Instagram could not be held secondarily liable for contributing to the unauthorized public display of the image. The Ninth Circuit has since affirmed the decision. See Hunley v. Instagram. I described this as one of the “Top Copyright Cases of 2022.”

As I indicated in that article, a Ninth Circuit affirmance could result in a circuit split. It has.

In McGucken v. Newsweek, LLC, a court in the Second Circuit held that Newsweek publicly displayed another person’s copryighted photograph when it embedded the photograph from the copyright owner’s Instagram page. The photograph was hosted on Instagram’s server, not Newsweek’s. And in Nicklen v. Sinclair Broadcast Group, a New York court explicitly rejected the server test, declaring that it is “contrary to the text and legislative history of the Copyright Act.” Of course, these were district court decisions, not decisions of Circuit Courts of Appeals, so they would not suffice to create a “circuit split.” A recent case out of the Fifth Circuit, however, might. That case is Emmerich Newspapers v. Particle Media.

Emmerich Newspapers v. Particle Media

Particle Media runs NewsBreak, a news aggregator that embeds stories from various news media into a single feed. When a user clicked on an Emmerich story, it opened in a frame that loaded the Emmerich page from Emmerich’s server on the user’s browser. Emmerich filed a copyright infringement lawsuit claiming that Particle Media violated its exclusive aright to publicly display the work.

The district court applied the server test, holding that the framed view of the story did not infringe Emmerich’s exlcusive right to publicly display the work. The Fifth Circuit Court of Appeals rejected the server test.

The Transmit Requirement

For the Fifth Circuit, the inquiry should not be into who possesses a copy of the work, but who transmits it. In many cases, including this one, the outcome will be the same. Emmerich’s story was neither stored on Particle Media’s server nor transmitted by it. Therefore, under either test, it was not liable.

URLs as Copyright Management Information

A second issue raised in Emmerich Newspapers is whether a website URL is a kind of “copyright management information” (CMI) under the Digital Millennium Copyright Act (DMCA). If it is, then removing it would violate the DMCA.

So is it or isn’t it? Well, possibly yes and possibly no. It depends on whether a person looking at the URL would understand it as identifying the work or its owner, on one hand, or as idenfiying only a website address, on the other.

The Fifth Circuit Court of Appeals did not resolve the issue in this case. Instead, it remanded it to the district court to decide. Nevertheless, the decision establishes a precedent that a URL, in principle, can be copyright manamgement information for purposes of the DMCA.

Is There Really a Circuit Split?

The Fifth Circuit clearly rejected the Ninth Circuit’s server test. On the other hand, though, both circuits agree that embedding generally does not infringe the copyright owner’s public display right. They disagree about the rationale, but the result is the same. That might not be enough for the Supreme Court to perceive a need to resolve a circuit split.

Conclusion

When assessing the public display right in the embedding context, some courts will apply the server test. Others will apply the transmit requirement. In most cases, merely encoding a website to instruct a third-party server to display content in a user’s browser will not result in liability for infringement of the copright owner’s public display right under either test.

Websites that deploy embedding, however, have reason to be careful about stripping the URL from embedded content. If the URL is perceived as identifying a work or its author, stripping it from the embedded display could violate the DMCA.

Whiskey & Dog Toys: The Last Word

After more than a decade of litigation, the showdown between Jack Daniel’s whiskey and Bad Spaniels dog toys has come to an end, most likely.

The Claims

I’ve written about this case before. (See, e.g., Balancing the First Amendment on Whiskey and Dog Toys, 5/4/2023).

Basically, Jack Daniel’s Products claimed trademark rights, including trade dress, in its Old No. 7 Tennessee whiskey, including the distinctive shape and label of its whiskey product. VIP Products made a dog toy called “Bad Spaniels,” shaped like a bottle of Jack Daniel’s whiskey with a label that looks like the famous whiskey label. Instead of “Jack Daniel’s,” the dog toy is called “Bad Spaniels.” Instead of “Old No. 7 Brand Tennessee sour mash whiskey,” the dog toy label reads, “Old No. 2 on your Tennessee carpet.”

Jack Daniels whiskey bottle and Bad Spaniels dog toy - parody goods trademark infringement

Jack Daniel’s sued VIP, claiming trademark infringement and dilution.

The district court ruled in favor of Jack Daniel’s. The court ruled that the “Bad Spaniels” dog toy was likely to confuse consumers about the source of the product and to tarnish the Jack Daniel’s brand.

The Ninth Circuit Court of Appeals reversed. The dog toys, the Court ruled, are parody goods protected as expression by the First Amendment.

The U.S. Supreme Court granted certiorari to review the decision. (See Court Agrees to Hear Parody Goods Case, 11/27/2022).

The Supreme Court Decision

The United States Supreme Court reversed the Ninth Circuit Court of Appeals. The Court held that although using a trademark for an expressive purpose might qualify for First Amendment protection, that protection does not insulate the user from trademark infringement or dilution liability if it is also used as a source-identifier for a product. Parodic uses of other people’s trademarks may result in trademark liability if they are used not only for expressive purposes but also to identify the source of a product or service. (See Can We Talk Here? Trademark Speech Rights, 6/14/2024.)

The First Amendment does not shield parody goods from trademark infringement and dilution claims when the alleged diluter uses a mark (or something confusingly similar to it) as a designation of source for its own products or services. (See Enduring (Non-AI) Legal Issues, 5/16/2026).

The Ninth Circuit Remand

The case returned to the Ninth Circuit Court of Appeals with the infringement question having been decided in VIP’s favor on the facts. The Court addressed only the tarnishment claim.

The Court ruled in favor of VIP Products:

“Neither Bad Spaniels nor the toy’s trade dress facially tarnished Jack Daniel’s corresponding famous marks, and neither was portrayed in an unwholesome or unsavory context that was likely to tarnish the reputation of the famous marks”

VIP Products v. Jack Daniel’s Properties (August 4, 2026).

Jack Daniel’s proved its word mark (“Jack Daniel’s) and trade dress (the whiskey bottle shape) are sufficiently famous to be protected against dilution. It did not, however, prove that “Old No. 7” is famous.

More significantly, the Court ruled that the evidence did not support a finding of likely reputational harm. An expert had testified that consumers generally are disgusted by an association between a consumable product and feces. The Court, however, ruled that this is not enough. Evidence of likely harm from the specific product and marks involved in the case is necessary. When it is obvious to consumers that a product is a parody, consumer disgust cannot be assumed.

What this means is that although parody is not a complete defense to a claim of trademark dilution by tarnishment, winning a claim that parody goods tarnish a trademark’s reputation might not be easy. Parody is not absolutely protected, but it raises a trademark claimant’s burden to demonstrate actual likelihood of reputational harm. If it is an effective parody, consumers are likely to recognize it as a joke rather than a serious claim about the nature or quality of the trademarked product.

Anti-Nudification

This is clearly a radical non sequitur, but if you have a prurient or other interest in developments in AI law, check out my analysis of the constitutionality of Minnesota’s new anti-nudification law in Why Minnesota’s Anti-Nudification Statute Is Probably Unconstitutional.

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Copyright Litigation Update

A roundup of some developments in the copyright world. The Copyright Claims Board issues its first attorney fee award. The Bartz v. Anthropic generative-AI class action settlement is approved. Generative-AI companies have been adding copyright guardrails to their products. Information about a website that is tracking AI lawsuits, and the latest Buc-ee’s trademark lawsuit.

“Go Home, Ball!”

PerfectPinz LLC v. K9 King, LLC

PerfectPinz LLC (“PerfectPinz”) sells golf paraphernalia. It created four cartoon images depicting scenes from the Adam Sandler movie, Happy Gilmore.

One of the images is a cartoon image of the Happy Gilmore character on the ground, yelling at a golf ball to get in the cup (“Go home, ball!”) Another cartoon image of Mr. Gilmore is captioned “Just Tap It In.” A third one is a cartoonized version of the scene in the movie in which he brawls with Bob Barker. It is captioned, “The Price Is Wrong.” The last image depicts the Gilmore and Chubbs characters and is captioned “It’s All in the Hips.”

K9 King also produced golf paraphernalia based on these same scenes from Happy Gilmore.

Apparently, neither party secured permission from Universal Pictures to copy or make derivative works based on the movie.

PerfectPinz LLC filed a copyright infringement claim against K9 King, LLC in the Copyright Claims Board (CCB). The Board denied the claim.

To prevail on a copyright infringement claim, a plaintiff must prove (1) ownership of a valid copyright; and (2) unauthorized exercise of one of the exclusive rights of copyright ownership, such as the right to make copies of the original elements of the work. The Board rested its decision on the second requirement, ruling that PerfectPinz had not established that K9 King copied enough elements of the works that were original to PerfectPinz to qualify as infringement.

Comparisons of Happy Gilmore movie stills with cartoon images created by PerfectPinz and K9King
Images for comparison, from the complaint filed with the CCB

Because the copied elements were copies of scenes from the movie, they were not original to PerfectPrinz. Therefore, the Board ruled that K9 King had not copied any content original to PerfectPinz’s images.

Sanctions

The Board found that PerfectPinz acted in bad faith in failing to mention that the scenes it depicted in its images were copies of scenes in Happy Gilmore. This was not mentioned in the copyright registrations, either. This omission, the Board held, warranted an award of attorney fees to K9 King, in the amount of $900.

This is the first time the CCB has awarded attorney fees in a case. It is also one of those very rare times when a company that has made an unauthorized derivative work sues another company for also making an unauthorized derivative of the same work.

Bartz v. Anthropic Settlement Approved

Bartz et al. v. Anthropic PBC

As I described in a 2025 blog post (“Ai OK; Piracy Not: Bartz v. Anthropic“), a federal district court in California last year determined that Anthropic is liable for copyright infringement in connection with its unauthorized copying of copyright-protected works to use in training its generative AI. Since then, the parties have entered into a settlement.

On July 20, 2026, the court issued an Order approving the settlement and awarding attorney fees. The settlement fund consists of $1.5 billion plus interest. $101,561,111 of it will go to the attorneys and several million dollars will be applied toward reimbursement of costs and expenses incurred and to be incurred in the future.

Copyright Infringement Guardrails

While this is not news about a court case, it is about a response to copyright infringement litigation.

As I explained in Generative AI: The Top 12 Lawsuits, OpenAI has been sued more than once for copyright infringement in connection with the training of its generative AI product, ChatGPT.

In Tremblay v. OpenAI, Inc., authors alleged that ChatGPT was trained on the text of books they and other proposed class members authored, without their permission, and that it facilitates output copyright infringement. The Judicial Panel on Multidistrict Litigation centralized dozens of AI copyright lawsuits against OpenAI into a single venue: U.S. District Court for the Southern District of New York. In Re OpenAI, Inc. Copyright Infringement Litigation. Tremblay is included in this consolidation.

Silverman et al. v. OpenAI is another such lawsuit. Sarah Silverman (comedian/actress/writer) and others alleged that OpenAI, by using copyright-protected works without permission to train ChatGPT, infringed copyrights. The case was subsequently consolidated into the Multidistrict Litigation (MDL) in the Southern District of New York.

Blocking users from reproducing large swaths of text from books or creating derivative works based on books used during training are “guardrails” against output infringement. According to Ars Technica, OpenAI’s ChatGPT is now refusing user requests to generate text that mimics the style of famous authors.

To test this, I prompted ChatGPT to “write something in the style of Tom James.” Here is the response I received:

ChatGPT response to prompt to write in the style of Tom James, author of Tuber Tips

As it happens, I am indeed the author of Tuber Tips, an offbeat compilation of whimsical and completely worthless suggestions of uses for sweet potatoes, along with some actual recipes. I had kind of hoped my name might bring to mind E-Commerce Law or IP Law for Non-IP Attorneys, but such is life.

The snippet it produced was completely bereft of humor. Everything in it was completely practical. The guardrails appear to be working.

AI Litigation Tracker

The website ExhibitAI.info is tracking “every lawsuit shaping the future of advanced AI.” The coverage spans 190 cases, 342 claims, 47 defendants, 117 plaintiff firms, and 44 courts.

The dataset reportedly is “updated continuously as new cases are filed and decided across jurisdictions.”

The dataset can be filtered by case type (copyright, tort, trademark, etc.), claims, date filed, defendants, forum, etc.

It looks like it could be a useful resource.

Buc-ee’s Redux

In a previous post (“Last Exit from Paradise“) I mentioned a trademark infringement lawsuit that Buc-ee’s, a popular chain of gas-and-convenience stores in the South. filed against Mickey’s gas stations. Well, now it has filed another one. This time, it is against Ohio-based Hanes Road Carryout, Inc.

Hanes Road Carryout, Inc. operates Beaver’s Mini Mart in Beavercreek, Ohio.. The complaint alleges that their logo is confusingly similar to Buc-ee’s because it “incorporate[s] a cartoon beaver with wide eyes and a smile” and “uses red as a predominant color in its exterior signage with its anthropomorphic representation of a cartoon beaver mascot.”

Beaver's MiniMart sign

(Top: Buc-ee’s logo. Bottom: Beaver’s Mini Mart logo.)

What do you think, Beave?

Jerry Mathers (Leave It To Beaver actor)

Need help with a CCB case?

If you need help with a CCB case or other copyright matter, contact the Law Office of Tom James.