The plaintiffs, Karen Dudnikov and Michael Meadors, were “power
sellers” on eBay, dealing in a variety of fabrics and handmade crafts.
One of the fabrics they listed for auction made a play upon famous
works by the artist Erté
titled Symphony in Black and Ebony on White (sic). The original artwork
portrayed an elegant woman with a sleek dog upon a leash. The fabric
sold by Dudnikov portrayed Betty Boop with her dog, “Pudgy,” in a
similar pose. Defendant Chalk & Vermilion Fine Arts, Inc. is the
American Agent for British corporation SevenArts, who owns the
copyright for the Erte works of interest. Upon discovering the sale of
the Betty Boop fabric, Chalk & Vermilion filed a request with eBay
through their Verified Rights Owner Program (“VeRO”) for a notice of
claimed infringement. Under this program
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