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Court Affirms Fair Use of Floorplans in Real Estate Listings
A Victory for Real Estate Companies and Agents
In a significant ruling by the U.S. Court of Appeals for the Eighth Circuit, real estate brokers and agents scored a victory in a copyright infringement case involving the use of home floorplans in online listings. Well-known home designer and builder Charles Lawrence James and his company, Designworks, sued real estate brokers, their affiliates, and agents, in Designworks Homes, Inc. v. Columbia House of Brokers Realty, Inc., claiming the defendants infringed their copyrights by creating and publishing floorplans without obtaining permission from James and his company Designworks.
The district court granted summary judgment to the agents and associated defendants because it concluded the inclusion of floorplans in resale listings was a fair use of the homes’ designs. Fair use is a legal doctrine that allows limited use of copyrighted material without needing to obtain permission from the copyright holder. When considering “fair use” a court analyzes the:
- purpose and character of the allegedly infringing use;
- nature of the underlying copyrighted materials;
- amount and substantiality of the copyrighted material used; and
- effect of the allegedly infringing use on the marketplace.
Analyzing these factors, the Court of Appeals affirmed the lower court’s ruling, finding the agents’ use of the floorplans served an informational purpose for potential buyers, distinct from the original design’s purpose. The decision also noted the use did not harm the market for the original designs or their derivatives.
This ruling is instructive for real estate professionals. It clarifies that using floorplans in listings can be considered fair use, provided the use is different from the original intended purpose for which the plans were created, and does not harm the floorplan designer by negatively impacting the market for the original works. Agents should ensure that the use of copyrighted materials in listings is justifiable under fair use principles, focusing on the informational value and necessity of the materials for marketing purposes.
The case sets a precedent, particularly in the Eighth Circuit, that supports the practical needs of real estate professionals while respecting intellectual property rights. Agents may use floorplans to enhance listings, knowing that such use likely is protected under fair use, provided it meets the necessary criteria.
Should you have any questions regarding fair use of floorplans, please contact either Carrie A. Johnson or Scott A. Johnson.
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Disclaimer: This alert has been prepared by Eastman & Smith Ltd. for informational purposes only and should not be considered legal advice. This information is not intended to create, and receipt of it does not constitute, an attorney/client relationship.
