Triad v. Southeastern Express

Citation: ''Triad Sys. Corp. v. Southeastern Express Co.,'' 64 F.3d 1330 (9th Cir. 1995).

Factual Background
Triad, a computer manufacturer, sued Southeastern Express, an independent service organization that serviced Triad hardware, for copyright infringement. Triad claimed that Southeastern used Triad's operating system software and utilities programs when repairing Triad machines, and that such acts constituted copyright infringement. Southeastern counterclaimed for antitrust violations, claiming that Triad was monopolizing the market for the servicing of Triad computers, and also claimed that its use of the Triad software constituted a fair use.

District Court Decision
Triad moved for summary judgment after the MAI v. Peak decision was issued by the Ninth Circuit. The district court ruled in Triad's favor on copyright infringement, but, the district judge refused to grant Triad's summary judgment motion on the fair use issue, finding that at least some of the fair use factors weighed in Southeastern's favor.

The judge bifurcated the trial, allowing the copyright infringement claim to be tried first. The judge issued findings of fact on the fair use issue and judgment was entered against Southeastern. Based on the judgment, the judge granted Triad a permanent injunction, which was stayed pending appeal.

Appellate Court Decision
Rejecting Southeastern's claim of fair use, the court of appeals found that the services that Southeastern performed provided no public benefit, stating that "we detect no appreciable public benefit arising from Southeastern's practice to justify this continuance under the fair use doctrine."

The court also held that "Triad invented, developed, and marketed its software to enable its customers and its own technicians to service Triad computers. Southeastern is getting a free ride when it uses that software to perform precisely the same services."