## Facts

- Religious Technology Center (RTC) claimed copyright ownership in Scientology “Operating Thetan” (OT) materials authored by L. Ron Hubbard and maintained under strict confidentiality controls.
- Arnaldo Pagliarina Lerma, a former Scientologist and critic, obtained portions of the OT materials (including OT II and OT III).
- Lerma copied the materials to his computer and posted substantial verbatim excerpts on the Internet, generally with little or no commentary.
- RTC sued Lerma for copyright infringement in federal court.
- The case reached cross-motions for summary judgment on RTC’s infringement claim and Lerma’s defenses, including fair use and copyright misuse.

## Issues

1. Whether RTC established ownership of valid copyrights in the OT materials and whether Lerma’s copying and Internet posting constituted actionable infringement.
2. Whether Lerma’s Internet postings qualified as fair use under 17 U.S.C. § 107.
3. Whether RTC’s enforcement conduct barred relief under the doctrine of copyright misuse.

## Decision

- The court granted RTC’s motion for summary judgment on copyright infringement and denied Lerma’s cross-motion.
- The court found no genuine dispute of material fact as to RTC’s copyright ownership and Lerma’s copying/posting of substantial portions of the works.
- The court held Lerma’s fair-use defense failed as a matter of law under the four statutory factors.
- The court rejected Lerma’s copyright-misuse defense, concluding RTC’s conduct amounted to ordinary enforcement of asserted copyrights rather than an improper attempt to extend copyright beyond its statutory scope.
- The ruling determined liability; issues of damages and other relief were left for later proceedings.

## Legal Principles

- Copyright infringement requires proof of (1) ownership of a valid copyright and (2) copying of original elements of the work.
- Fair use under 17 U.S.C. § 107 turns on: (1) purpose and character of the use, (2) nature of the work, (3) amount and substantiality used, and (4) market effect.
- Noncommercial intent does not establish fair use where the defendant posts extensive verbatim excerpts with minimal commentary and the use functions as a substitute for access to the work.
- Creative and closely held religious works receive stronger protection in fair-use analysis than factual compilations, particularly where distribution is restricted.
- Extensive verbatim copying, including qualitatively central passages, weighs strongly against fair use.
- Market-effect analysis includes harm to actual or potential markets and to the value derived from controlled dissemination; free online distribution can constitute cognizable market harm.
- Copyright misuse requires an attempt to use copyright to obtain rights not granted by copyright law; aggressive litigation to stop unauthorized copying, without more, is insufficient.

## Conclusion

The court held that RTC proved copyright ownership and infringement and that Lerma’s substantial verbatim Internet postings were not protected by fair use; it also declined to bar enforcement on a misuse theory because RTC’s conduct reflected standard efforts to prevent unauthorized reproduction of copyrighted works.


Religious Tech. Ctr. v. Lerma, 40 U.S.P.Q.2d 1569 (E.D. Va. 1996)