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February 12, 2012

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Venetian triumphs in lawsuit over light fixtures

Friday, Oct. 9, 2009 | 11:07 a.m.

Click to enlarge photo

A Venetian light fixtures at issue in the case.

The Venetian casino-resort on the Las Vegas Strip has prevailed in a two-year-old lawsuit accusing it of violating copyright law by allegedly stealing a San Francisco firm's design for thousands of light fixtures used in a room remodeling project.

Jonathan Browning Inc. filed suit against the resort in federal court in California in August 2007.

U.S. District Judge Jeffrey White, in dismissing the case Tuesday, noted that the U.S. Copyright Office had "refused the registration for the two light fixtures designed by plaintiff as useful articles not having any separable features that are copyrightable."

"This court owes such a determination deference and also finds that the subject sconces do not contain any separable features that are copyrightable," White wrote in his ruling.

Browning's suit charged that in 2006 the Venetian asked the company to bid on a project to provide more than 11,000 wall-mounted sconces, or fixtures, to be used in the resort's guest rooms and corridors.

Browning said it sold 10 samples to the resort -- priced at $2,790 to $3,490 apiece -- to be used in a mock up and that Browning submitted a bid to provide the sconces at a discounted price.

"The Venetian declined the bid, stating that the price was too high. The Venetian showed no interest in negotiating," the lawsuit charged. "In fact, the Venetian then proceeded to copy, or had others copy, the design on the sample Jonathan Browning sconces.

"The Venetian has made and installed in its guest rooms and corridors literally thousands of illegal copies of Jonathan Browning's sconces ... The Venetian paid Jonathan Browning nothing for the designs it copied. Rather, the Venetian simply ripped off Jonathan Browning's designs from the samples provided."

Jonathan Browning, who owns the company, said in the lawsuit that he is a prominent designer whose work has been featured in such publications as Forbes FYI and Architectural Record.

As a former senior vice president of design for Starwood Hotels and Resorts, he said he was surprised at the Venetian's lack of interest in negotiating the price since "it was standard industry practice to negotiate when price is truly the basis for rejecting an initial bid."

He charged the Venetian used "deceptive and unfair means" to learn the identity of Browning's contract manufacturing plant in China and then had that plant make "more than 13,000 nearly identical copies of the sconces."

But the Venetian and its owner Las Vegas Sands Corp., represented by attorneys with the firm Duane Morris LLP, argued that Browning's suit sought a "monopoly" on fixtures "comprised of an unoriginal combination of pre-existing features that have been in existence for centuries."

The Venetian argued Browning had the burden of proving the Venetian copied the Browning fixtures and could not do so because the fixtures were not manufactured by the hotel-casino.

"The undisputed evidence shows that the light fixtures at issue were manufactured by (Chinese manufacturer) Diamond Life -- not the Venetian. The Copyright Act does not render anyone directly liable for infringement committed by another," the attorneys argued in their successful motion for summary judgment.

The Venetian attorneys also argued that the infringement claim should be rejected because it failed to show the light fixtures were subject to public display.

The Venetian said the fixtures, which were also used in Las Vegas Sands' adjacent Palazzo resort, were not publicly displayed because they are in non-public hotel rooms and corridors.

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