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Appellate Advocacy Keyed to Meador, 2nd Ed.
Business Guides, Inc. v. Chromatic Communications Enterprises, Inc.
Citation:
498 U.S. 533 (1991)Facts
Business Guides published specialized directories and protected them by planting false information called “seeds” to detect copying. On October 31, 1986, Business Guides filed a copyright infringement action against Chromatic, seeking a temporary restraining order. The TRO application was signed by both a Finley, Kumble attorney and Business Guides’ president. Business Guides submitted affidavits claiming Chromatic had copied its directory, evidenced by the presence of 10 seeds. When asked to specify what was incorrect about each listing, Business Guides retracted three claims. The District Court’s law clerk investigated and discovered that 9 of the 10 listings contained no incorrect information. The court denied the TRO and referred the matter for sanctions. At evidentiary hearings, Business Guides explained that it had departed from its normal methodology in compiling its “master seed list,” looking for unintended typographical errors after publication rather than deliberately planting false information. The District Court found that Business Guides failed to conduct a reasonable inquiry before filing the TRO application and imposed sanctions, dismissing the case with prejudice and ordering Business Guides to pay Chromatic’s legal expenses of $13,865.66.
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