Evan Lloyd, an Individual Doing Business as Mauna Loa Jewelers v. Steven Schlag, an Individual Doing Business as Dolphin Gallery

Evan Lloyd appeals from the imposition of Rule 11 sanctions in the form of appel-lee’s costs and fees stemming from Lloyd’s improperly filed copyright complaint. He also appeals from the district court’s holding that the copyrights in question were invalid. On the sanctions issue, we affirm in part and vacate in part, and on the substantive issue, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

This case was originally brought by Lloyd, an individual doing business as Moa-na Loa Jewelers, against Steven Sehlag, an individual doing business as Dolphin Gallery. Lloyd alleged that certain designs for costume jewelry charms had originally been produced on or about October 11, 1978, by Noreen Quirk. In August of 1980, Quirk assigned her rights in the designs to Lloyd. However, this assignment was never filed with the United States Copyright Office. Because 17 U.S.C. § 205 (d) requires proper recordation of a transfer before the bringing of a copyright infringement suit, the court granted Schlag’s Motion to Dismiss and denied Lloyd’s Motion for Leave to Pile Supplemental Pleading. The dismissal was without prejudice.

Lloyd proceeded to effect the proper rec-ordation, and the Copyright…