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Whimsicality v Rubie's Costume Co, 891 F.2d 452 (2nd Cir 1989)

Whimsicality, Inc. and appellee Rubie's Costume Co., Inc are competing costume designers and manufacturers. Believing that Rubie's was selling "knock-offs" of its costumes, Whimsicality commenced the instant action and sought initially a preliminary injunction to prevent further manufacture and sale of the alleged knock-offs. The complaint alleged copyright infringement and unfair competition.

The district court granted summary judgment in favor of Rubie's on the copyright claim and denied injunctive relief, reserving decision on the unfair competition claim. The court refused Rubie's request for attorney's fees. The district court held that Whimsicality had registered a copyright on its costumes, but that the costumes were not copyrightable.

The 2nd Circuit Coart of Appeals agreed with the result reached by the district court, and affirmed the dismissal of the copyright claim and the denial of injunctive relief; but it did so on grounds other than those relied on by the district court. It hold that Whimsicality obtained its copyright registrations by misrepresentation of its costumes to the United States Copyright Office. It therefore declined to reach the issue of copyrightability, since proper registration is a prerequisite to an action for infringement. Finding bad faith on the part of Whimsicality, it vacated that part of the order which declined to award attorney's fees to Rubie's pursuant to 17 U.S.C. § 505 (1982) and remanded the case to the district court for determination of that issue in light of the opinion.