Robert R. Jones Associates, Inc. v. Nino Homes

Robert R. Jones Associates, Inc. (plaintiff) designed, built, and sold custom-made homes. Nino Homes (defendant) also constructed and sold new homes. In 1980, Jones Associates designed and built a model home called the Aspen. In order to promote sales, Jones Associates distributed to potential customers brochures that contained the abridged floor plans of the Aspen. In 1983, Jones Associates discovered that Nino Homes was constructing similar houses and managed to obtain the building plans filed by Nino Homes. Following close examination of these plans, Jones Associates concluded that its Aspen plans had been copied by Nino Homes. Jones Associates thereafter registered the complete architectural drawings and the abridged floor plans of the Aspen and sent a cease-and-desist letter to Nino Homes. Jones Associates initiated suit for infringement after Nino Homes denied that its home, which it called the Riverside, copied the Aspen. During trial, Jones Associates presented evidence that Nino Homes used the abridged floor plans contained in its promotional brochure to design the Riverside and that the architect had been specifically instructed to duplicate these plans. The district court concluded that Nino Homes had infringed Jones Associates’ copyright and awarded actual damages in the amount of $298,870: $212,550 for presumed profits of seven homes not earned by Jones Associates because of Nino Homes’ infringement, and $86,320 for the profits earned by Nino Homes from the sale of seven homes built pursuant to the infringing plans. On appeal, Nino Homes argued the district court used an improper standard to compute the damages awarded to Jones Associates.