Business start-up must clarify copyright situation herself before placing order

It is common knowledge among the general public that one cannot simply download images from the Internet - in this case from the already intensively commercially exploited "boy band" BTS with 41 million fans - and then commercially exploit them oneself without any regard for third-party copyrights. Thus, there is no knowledge gap between the parties to a contract for the printing of pillowcases with members of this band. In a decision published today, the Frankfurt am Main Higher Regional Court declared the challenge declared by the contracting start-up company to be unfounded. However, since the respondent had not sufficiently presented evidence of the expenses saved after termination, the complainant was granted partial legal aid.

The complainant is a paralegal. She wanted to build up a professional existence by selling printed large pillowcases. Motifs were to be life-size images of the members of the South Korean "boy band" BTS, which customers could slip over cardboard stand-up displays.

The complainant commissioned the respondent's company, which specializes in printing on textiles, for just under €20,000. Whether the latter pointed out at an early stage that the complainant must have the copyrights to the images it used is disputed. After payment of a good €11,000, the respondent pointed out in any case that the complainant had to ensure that there was no copyright infringement. The complainant then terminated the contract.

After contesting the contract, the complainant is now seeking legal aid for an action for repayment of the down payment. She feels that she was deceived by the respondent. The respondent had not informed her about the copyright issue. The Regional Court had rejected this application. On appeal, the Higher Regional Court granted partial legal aid.

However, the OLG justified its decision by stating that the district court had correctly rejected the respondent's duty to provide information and a deception. There had been no knowledge gap between the parties. The complainant had acted as a founder of a business as an entrepreneur. As a paralegal, she also had "at least a certain basic understanding of the legal system," the OLG emphasized.

However, the action could not be denied every prospect of success, so that partial legal aid was to be granted. The complainant was at least entitled to terminate the contract. For the amount of its repayment claim, the amount of the expenses saved by the respondent as a result of the termination would then be relevant, among other things. The respondent would have to make concrete submissions in this regard. This has not been done so far. To the extent that it claimed not to have saved any expenses at all, this was "inconsistent". At the very least, it saved on making-up and printing.  

The decision is not appealable.

Frankfurt am Main Higher Regional Court, decision dated June 6, 2023, Ref. 4 W 13/23

(preceding LG Limburg a. d. Lahn, decision of 9.3.2023, Ref. 1 O 458/22)

Source: Press release no. 43/2023 of the Frankfurt am Main Higher Regional Court of 14.06.2023

GoldbergUllrich Lawyers 2023

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