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Issues in original lawsuit: Copyright Infringement, Derivative Works Discussed by Court: Owner of a copy of a computer program, "Copies" by Definition

William Krause vs Titleserve, Inc, 158 F.3d 693 (2nd Cir. 1998) ` Copyright Infringement Misappropriation of Property. Production of Derivative Works. Copying of Programs Cause Of Action PLAINTIFF: Between 1986 and 1996 plaintiff Krause performed computer and communications work for Titleserv. . DEFENDANT : Alleged that Titleserv infringed the plaintiff’s copyright by modifying the source code of eight computer programs he authored. The district court, adopting the magistrate judge’s report, assumed arguendo that Krause was an independent contractor and owner of the copyright in the programs he developed. Krause contended the software copies were as a mere licensee. Court of Appeals affirmed the district court's grant of summary judgment. The Court concluded Titleserv owned copies of the disputed programs within the meaning of § 117(a) because Titleserv paid Krause substantial consideration to develop the programs for its sole benefit, Krause customized the software to serve Titleserv’s operations, the copies were stored on a server owned by Titleserv. The Court concluded that Krause confused ownership of a copyright with ownership of a copy of the copyrighted material.

Source
http://caselaw.lp.findlaw.com/data2/circs/2nd/039303p.pdf