February 25, 2016

Co-Ownership Claims In Jay-Z Songs Time Barred; 2nd Cir.

Mahan v. Roc Nation, No. 15-1238cv (2d Cir. Feb. 24, 2016).

A former Roc-a-fella Records sound engineer's copyright co-ownership claims in certain Jay-Z recordings, brought 14 years after the recordings were made and released, are time-barred, holds the Second Circuit Court of Appeals in affirming the lower court's dismissal of the claim.  The Court found that defendants had expressly repudiated the plaintiff's ownership claim years prior, when the multi-million copy selling albums were released without attribution to him or the payment of any royalties.  Accordingly, the clock started ticking then.  The Court further found that the defendants were properly awarded their attorney's fees under the Copyright Act, and remanded solely for a determination of the amount of fees available on the appeal.

Cars' Audio Technology May Require Royalty Payment

Alliance of Artists &Rec. Cos. v. Gen. Motors Co. et al., No. 14-1271 (D.D.C. Feb. 19, 2016).

Audio technology that has been installed in a number of car models since 2008 may require payment of royalties under the Audio Home Recording Act of 1992 (17 USC 1001 et seq.), holds the court in denying the defendant car manufacturer's motion to dismiss.  The Audio Home Recording Act of 1992 requires manufacturers, importers, and distributoers of "digital audio recording devices" to incorporate copying control technolgy into their devices and pay a set royalty amount for each device.  The statute has been referred to as a "compromise" and at the time of its adoption then-current technology was much different than it is today (DAT tapes were the issue then).  On defendants' Rule 12 motions to dismiss, the Court undertook an extensive and detailed analaysis of the statutory text and agreed with Defendants' asserting that a "digital audio recording device" must be capable of producing "digital audio copied recordings;" that these recordings are a type of "digital music recording;" and that the device's output must therefore comport with the definition of a digital music recording that is establisehd at 17 USC 1001(5).  However, the Court also concluded that the plaintiff's complaint sufficiently alleged facts that, if true, could plausible demonstrate that Defendants' devices are in violation of the statute.

February 22, 2016

Pre-1972 Copyright Claims Limited By 3, Not 6, Year Limitation Period

ABS Entm't, Inc. v. CBS, No. 15-cv-6801 (S.D.N.Y. Feb. 17, 2016).

New York's 3 year statute of limitations "for an injury to property" applies to plaintiffs' claims for common law copyright infringement of pre-1972 sound recordings, holds the Court, not the State's 6-year "catch-all" provision.  CPLR 213(1) and 214(4).  Plaintiffs, a putative class, allege that CBS violated the public performance rights of pre-1972 sound recordings as protected under New York common law, and allege common law infringement and unfair competition.  The narrow issue before the Court was whether a 3 or 6 year limitations period applied, and Judge Koetel held that the plain meaning of "property" (as used in the 3 year statute) is broad enough to encompass intangible property, like intellectual property in the form of sound recordings (or trade secrets).  In other words, the 3 year limitations period is not limited to tangible property.  Notably, the Court recognized that "the case law is mixed" on this question, addressing both the Flo & Eddie [80 F. Supp. 3d 535 , 541 (S.D.N.Y. 2015)] and Harrison [44 Misc. 3d 428 , 986 N.Y.S.2d 837 , 838 (Sup. Ct. 2014)] cases.