COPYRIGHT-8th Cir.: Realtors’ use of home design floorplans in listings is fair use


In a landmark decision, the U.S. Court of Appeals for the Eighth Circuit has ruled that real estate agents may incorporate simplified floorplans of copyrighted home designs into their property listings without infringing upon the intellectual property rights of architects. This ruling arose from a lawsuit filed by architect Designworks Homes, Inc. against two agents who included basic floorplans in their listings for homes featuring a unique triangular atrium design. Initially, a district court sided with the agents, citing exemptions under Section 120(a) of the Copyright Act, which was later reversed by the Eighth Circuit. The appellate court determined that this exemption pertains solely to artistic representations, not functional drawings like floorplans. Upon remand, the district court concluded that the agents' use of the floorplans constituted fair use, prompting the current appeal. The Eighth Circuit's unanimous decision emphasized that the agents' inclusion of these simplified two-dimensional representations served a transformative purpose distinct from the original architectural designs, thereby favoring fair use. While acknowledging the commercial aspect of real estate listings, the court highlighted the informational intent behind the floorplans. The court's analysis of the four statutory fair use factors revealed that the first factor favored the agents, while the second and third factors were either neutral or slightly against fair use. Notably, the fourth factor, concerning market impact, strongly supported fair use, as there was no evidence that the agents' actions harmed Designworks' market for architectural designs. The court dismissed concerns about potential licensing revenue as speculative and emphasized that the practice could enhance the value of architects' designs by facilitating buyer access to information. This ruling clarifies that real estate agents can generally utilize simplified floorplans to convey essential information about existing homes, provided there is no demonstrable harm to the architects' markets. The court also upheld the denial of Designworks' request to reopen discovery on the fair use issue, affirming that fair use had been a relevant consideration from the outset of the proceedings.



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