The dispute arose from a 2024 Christmas fundraising effort in Pentwater, Michigan, where Laura Muirhead designed commemorative coins featuring a laser-engraved image of the village gazebo to raise money for local schools. Crystal Babbin, owner of Oldewick Post Gift Shoppe, claimed the gazebo artwork had been exclusive to her store for over 20 years and accused Muirhead of scanning and copying the design. Babbin confronted Muirhead publicly on Facebook and later wrote to the village Downtown Development Authority alleging copyright infringement.
Judge Jarbou found that Babbin's letter to the DDA was protected by qualified privilege, explaining that copyright holders have a shared interest with third parties in warning about potential violations. "The DDA has an interest in knowing about potential copyright violations for items sold to support its fundraising efforts and events," Jarbou wrote. The court distinguished the case from situations where complaints are made solely out of private competitive interests, finding no facts suggesting Babbin acted purely for personal gain.
Muirhead had filed defamation and false-light invasion of privacy counterclaims in January 2026 after Babbin sued her for copyright infringement in December 2025. The court dismissed defamation claims based on Babbin's Facebook posts as time-barred under Michigan's one-year statute of limitations, but allowed consideration of the DDA letter, which was sent in October 2025. However, because the letter was qualifiedly privileged, Muirhead needed to prove actual malice, which the court found she failed to adequately allege.
The ruling could impact how copyright disputes unfold in small communities, establishing that good-faith warnings to relevant third parties about potential infringement may receive legal protection. The underlying copyright case between Babbin and Muirhead over the gazebo artwork remains pending, with Babbin also seeking declaratory relief to prevent Muirhead from trademarking the disputed image.