Recently, copyright law expert and Director of Legal Research at the NAHB David Crump cited a potential copyright infringement lawsuit involving a South Carolina builder. 

The following is Crump’s summary and warning to builders:

A South Carolina builder received a settlement demand letter from an architectural firm claiming infringement of its copyrighted design.  The builder had purchased a set of plans from the architectural design book of a local draftsman. Although the infringement claim has not been substantiated at this point, and the builder was not aware that any third party might have an ownership claim to the purchased design, the builder faces potential liability if the claim is proven to be true. Under the federal copyright law, even an innocent user of a copyrighted work can be liable for unauthorized use.

Builders should be cautious, even with purchased drawings, for it is always possible that these plans could have been appropriated from a copyrighted source. To protect yourself it is best that, if possible, your agreement to purchase architectural plans should contain a certification of copyright ownership, and an indemnification clause for infringement claims. Then if the supplier’s copyright ownership comes into question, and if the builder gets sued by a third party for the use of these plans, the plan supplier will have contractually agreed to pay any damages that the builder may incur, including  infringement damages, attorneys’ fees, and associated legal expenses.

Statute of limitations – For civil actions alleging copyright infringement, there is a three-year statute of limitations on bringing suit measured from the time that the claim accrued. (17 U.S.C.A s. 507(b)). Courts have ruled that the claim does not accrue until the copyright owner has knowledge of the infringement (or reasonably should have known about it). So a lawsuit can be maintained more than three years after infringement, if the copyright owner does not immediately discover the unauthorized use of his or her design.

More information on copyright law, copyright infringement of architectural drawings, and sample contract language, can be found in the NAHB publication Copyright Law for Home Builders by David Crump (http://www.nahb.org/product_details.aspx?forSaleID=27).  You can also attend the Overall Construction Law course at this year’s state convention.  Visit www.HBAofSC.com for more information.