November 3, 2015
BMI May Recover More Than Minimum Statutory Damages After Nightclub's Default
The Third Circuit held that performance rights organization BMI could recover a default judgment for more than the minimum statutory damages available under the Copyright Act. The Court found that so long as the award falls within the limits set by statute, the trial court's discretion and sense of justice were controlling in setting the amount of the award, even in the case of a default judgment and where the defendant's alleged profits are less than the amount awarded. Accordingly, the $35,000 award of statutory damages was affirmed.
April 27, 2015
Pre-Trial Evidentiary Rulings In Grooveshark Case
In advance of a jury trial on statutory damages, the Court made a number of pre-trial evidentiary determinations on motions in limine. Among its holdings as to what the parties could or could not introduce at trial, the Court held that defendants were precluded from offering argument or evidence contesting that their conduct was willful or in bad faith (the jury would be instructed that there was a cap of $150,000 per work, not $30,000), but defendants were permitted to present proof as to the degree and extent of their willfulness. As to Defendants' argument that Plaintiffs could receive statutory damages for infringement of pre-1972 sound recordings (or that the Court had jurisdiction over such claims), the Court reserved decision. The Court also made several rulings as to what evidence Defendants could introduce concerning their failure to mitigate damages defense (e..g, concerning settlement and future licensing negotiations, failure to make claims against other infringers, DMCA compliance
November 30, 2014
11th Cir. Finds Summary Judgment Properly Granted In Favor of BMI And Against Tavern; Adopts 2nd Cir. Davis v. Blige
The 11th Circuit affirmed summary judgment in favor of the performing rights society BMI, rejecting the defendant-tavern's argument that there were questions of material fact as to the copyright ownership of the musical compositions at issue and as to whether defendants were innocent infringers. With respect to the chain-of-title for the five songs at issue, the court examined each chain of title, and further found that the district court properly found that BMI could be awarded judgment on each song in addition to the copyright holder (generally, the music publisher who owned the copyright). As BMI agreed to be responsible for all costs and expenses pursuing infringement actions based on the titles that BMI licenses from copyright owners, the number of them to whom summary judgment is granted made no difference in the award of damages, attorneys' fees and costs. Thus, there was no error in granting summary judgment to the other plaintiffs (the copyright owners) under Fed. R. Civ. P. 61.
As to innocent infringement, the Court affirmed that is not a defense to summary judgment liability, and instead is only a consideration as to the amount of statutory damages to award. The court also found that an award of attorney's fees was appropriate. Notably, the 11th Circuit joined the rule adopted by the Second Circuit in Davis v. Blige, 505 F.3d 90, 99 (2d Cir. 2007) that a copyright co-owner may maintain and recover in a copyright infringement action without joining other co-owners. See fn. 2.
August 14, 2013
Article re Registering Multiple Works In A Single Copyright Registration
This article clarifies:
"...if music is being commercially released exclusively via sale of a complete album, one is only entitled to one statutory damage award for any infringements therein. If, on the other hand, the individual songs on that album, which were registered as part of the single application, are also 'issued' individually, those individually released songs gain full statutory damage protection."The article was a reply to an earlier published article wherein the author had suggested that a single copyright application for more than one work can retain all the legal remedies afforded by the Copyright Act while saving money by avoiding multiple registration fees. Citing Bryant v. Media Rights Prods., Inc., 603 F.3d 135 (2d Cir. 2010), and Arista Records LLC v. Lime Group LLC, 2011 WL 1311771 (S.D.N.Y. 2011), the article suggests that traditional registration of each track and each song may still provide the best possible protection for sound recordings and musical compositions.
June 26, 2013
1st Cir Affirms $675,000 Jury Award For Unauthorized Downloads/Distributions
From the decision:
Joel Tenenbaum illegally downloaded and distributed music for several years. A group of recording companies sued Tenenbaum, and a jury awarded damages of $675,000, representing $22,500 for each of thirty songs whose copyright Tenenbaum violated. Tenenbaum appeals the award, claiming that it is so large that it violates his constitutional right to due process of law. We hold that the award did not violate Tenenbaum's right to due process, and we affirm.The two issues on appeal were: (1) what is the correct standard for evaluating the constitutionality of an award of statutory damages under the Copyright Act; and (2) did an award of $675,000 violate defendant's right to due process? On issue one, the Court held that the correct standard was that announced in St. Louis, I.M. & S.Ry. Co. v. Williams, 251 U.S. 63 (1919), that a statutory damage award violates due process only "where the penalty prescribed is so severe and oppressive as to be wholly disproportionate to the offense and obviously unreasonable." On issue two, the Court found that the award did not violate defendant's due process rights.
October 12, 2012
$6.6 Million Copyright Infringement Judgment In Lyrics Website Case
Defendants operated song lyric websites that infringed copyrights held by a group of music publishers. The company was run by the co-founder of MySpace Inc. The Court granted a default judgment to plaintiffs and awarded statutory damages in the sum of $12,500 per each of the 528 songs shown to be infringed for a total of $6,600,000. Plaintiffs were also awarded their attorneys fees.
Kudos to my former colleagues Paul Fakler and Ross Charap, who represented Plaintiffs.
January 9, 2012
ReDigi Sued For Copyright Infringement
Plaintiff alleges copyright infringement arising from defendant's contributory, vicarious, and inducement of the willful and systemic use of plaintiff's original sound recordings on defendant's "ReDigi" music service. Defendant is an internet business whose stated purpose is to help consumers buy and sell "used" digital music files. Plaintiff seeks $150,000 per infringement (maximum statutory damages for willful infringement).
October 6, 2011
Karaoke Damages Limited On Per "Work" Basis
August 31, 2011
Statutory Damages Awarded To EMI For Willful Infringement
April 19, 2011
Plaintiff Cannot Swap Election Of Statutory Damages
April 18, 2011
"Work" Defined For Statutory Damages Against Limewire
The Court had granted summary judgment in favor of Plaintiffs on their claims against Defendants LimeWire LLC ("LW"), Lime Group LLC ("Lime Group"), and Mark Gorton (collectively, "Defendants") for secondary copyright infringement. The Court found that Defendants had induced multiple users of the LimeWire online file-sharing program ("LimeWire") to infringe Plaintiffs' copyrights. The litigation is now in the damage phase, with a trial on damages scheduled. Plaintiffs identified approximately 11,205 sound recordings that had allegedly been infringed through the LimeWire system. Of those, approximately 9,715 are sound recordings as to which Plaintiffs have elected to seek statutory damages under Section 504(c)(1) of the Copyright Act.
On March 10, 2011, the Court held that Plaintiffs are entitled to a single statutory damage award from Defendants for each "work" that was infringed by a direct infringer on the LimeWire system. The parties now seek a resolution of a threshold legal dispute regarding what constitutes a "work" as to which Plaintiffs can recover a statutory damage award.
The Court holds that both an album, and a sound recording that Plaintiffs issued as an individual track may constitute a "work" infringed. Accordingly, Plaintiffs are entitled to a statutory damage award for each sound recording that was infringed on the LimeWire system during the time period that Plaintiffs made that sound recording available as an individual track. However, for those sound recordings that Plaintiffs issued only as part of an album, Plaintiffs can recover only one statutory damage award for that album, not for each individual sound recording.
March 15, 2011
LimeWire Damages in Trillions "Absurd"
September 27, 2010
$6.5mil Statutory Damages In Copyright Case
Arista Records LLC v. Usenet.Com, Inc., 07 Civ. 8822 (HB), NYLJ 1202472409489 (SDNY, Decided September 16, 2010)
"In this copyright infringement action, this Court previously granted Plaintiffs'2 motion for summary judgment in its entirety, granted Plaintiffs' motion for terminating sanctions in part, and dismissed Defendants'3 cross-motion for summary judgment as moot. See Arista Records, LLC v. Usenet.com, Inc., 633 F. Supp. 2d 124, 129 (S.D.N.Y. 2009) (hereinafter the "Liability Decision"). The action was then referred to Magistrate Judge Theodore H. Katz for an inquest on damages. On February 2, 2010, Magistrate Judge Katz issued a detailed and articulate 23-page Report and Recommendation ("R&R"), in which he recommended that Defendants be held jointly and severally liable for statutory damages in the amount of $6,585,000. On February 15, 2010, Defendant Gerald Reynolds timely filed objections to Magistrate Judge Katz's R&R pursuant to 28 U.S.C. §636(b)(1) and Federal Rule of Civil Procedure 72.4 For the following reasons, after considering Reynolds's objections, and reviewing the remainder of the R&R for clear error, this Court approves, adopts, and ratifies Magistrate Judge Katz's R&R in its entirety."
July 13, 2010
File Sharing Jury Award Reduced 90%
This copyright case raises the question of whether the Constitution’s Due Process Clause is violated by a jury’s award of $675,000 in statutory damages against an individual who reaped no pecuniary reward from his infringement and whose individual infringing acts caused the plaintiffs minimal harm. I hold that it is.
May 18, 2010
2d Cir Rules On Copyright Statutory Damages
December 5, 2008
Statutory Damages Should Relate to Actual Damages
Post from Recording Industry vs. The People
March 18, 2008
Amazon Faces False Attribution Claim in Infringement Suit For Unauthorized Digital Downloads
Defendants have placed on their website and have offered for sale MP3 files of the thirteen sound recordings Plaintiff created which QuiXote Music pressed and marketed [with authorization from plaintiff, pursuant to a written agreement] ... The page on Defendants' website falsely indicates the copyright in [sound recording and composition] as being "(c) 2008 QuiXote". [However,] the compact discs pressed and marketed [with written authorization] by QuiXote Music beginning in 2001 bear multiple clear indications that the copyright in [the sound recordings and compositions] belong to Plaintiff.
Nowhere on the compact discs pressed and marketed by QuiXote Music is there any representation that the copyright in Cheshire Tree Suite belongs to QuiXote Music. On information and belief, QuiXote Music has never represented that it owns the copyright in [the sound recording and compositions]. [Eds: This may explain why QuiXote, the European based manufacturer and distributor of the album, is not a party to this suit.]
Thus, notwithstanding the basic infringement allegation (unauthorized sale of the sound recording via defendants' online digital music store), the central theme of Plaintiff's complaint is a moral rights theory of false attribution. In addition to the above quoted material, the theme of a moral rights claim as central to this action is buttressed by plaintiff's allegations of "deliberate misstatement of copyright ownership", and reference to the Berne Convention as a source of protection.
Nonetheless, Plaintiff's demand for relief is limited to an injunction prohibiting Defendants "from the infringement and unauthorized use of Plaintiff's copyright."
Several Observations and Comments:
(1) Plaintiff does not specify whether the sound recordings and/or compositions are registered. Rather than list (or include as an exhibit) any SR registration number, Plaintiff merely alleges that the works "are protected under the Untied States Code, including without limitation the Copyright Act of 1976 and the Digital Millennium Copyright Act." If unregistered, Plaintiff's claim has a fatal problem (17 U.S.C. 411). (Alternatively, her demand for fees and statutory damages may be barred, 17 U.S.C. 412. Homkow v. Musika Records Inc., No. 04 Civ. 3587, N.Y.L.J. "Decision of the Day", Mar. 17, 2008 (S.D.N.Y. decided Feb. 25, 2008)). Notable, however, is the filing of an AO Form 121 mailed to the Register of Copyright pursuant to 17 U.S.C. 508. This form, entitled "Report on the Filing or Determination of an Action or Appeal Regarding a Copyright", presumably was filed with the relevant Registration Numbers, i.e., not left blank? (However, a search of the Copyright Office's public catalogue did not find any relevant SRs.)
(2) What is the process by which digital music stores obtain information regarding copyright ownership?
(3) Where is the European label? Review of Plaintiff's agreement with QuiXote Music would seem highly relevant to whether Plaintiff granted the label authorization to distribute the sound recordings in intangible electronic or digital form, e.g., MP3?
January 23, 2008
Another Day at the Races
At a quick glance, the number of alleged infringements range from approximately 400 recordings to nearly 2,000, and appear to all have occurred in 2007.
What is remarkable is that in each of the courts -- e.g., California Eastern District, Florida Middle District, Georgia Northern District -- the complaints are virtually identical!
With regards to the P2P portion, each had this to say:
Much of the unlawful distribution of copyrighted sound recordings over the
Internet occurs via "peer-to-peer" ("P2P") file copying networks or so-called
online media distribution systems. P2P networks, at least in their most
popular form, refer to computer systems or processes that enable Internet users
to search for files (including audio recordings) store on other users' computers
and transfer exact copies of files from one computer to another via the
Internet, which can include both downloading an exact copy of that file onto the
user's own computer and distributing an exact copy of that file to other
Internet users on the same P2P network. P2P networks enable users who
otherwise would have no connection with, or knowledge of, each other to provide
a sophisticated search mechanism by which users can locate these files for
downloading and to reproduce and distribute files off of their personal
computers.Users of P2P networks who distribute files over a network can be identified
by using Internet Protocol ("IP") addresses because the unique IP address of the
computer offering the files for distribution can be captured by another user
during a search or a file transfer. Users of P2P networks can be
identified by their IP addresses because each computer or network device (such
as a router) that connects to a P2P network must have a unique IP address within
the Internet to deliver files from one computer or network device to
another. Two computers cannot effectively function if they are connected
to the Internet with the same IP address at the same time.
[**VERIFY ALL CITES**
California Eastern District:
BMG Music et al v. Espinoza; case 1:2008 00040
UMG Recordings, Inc. et al v. Higareda; case 1:2008 00039
Sony BMG Music Entertainment; case 1:2008 00041
Sony BMG Music Entertainment et al v. Evans; case 1:2008 cv 00109
Warner Bros. Records Inc. et al v. Kukendall; case 2008 00043
BMG Music et al v. Espinoza; case 1:2008 00044
Florida Middle District:
Priority Records LLC et al v. Hayes; case 3:2008cv00079
Georgia Middle District:
Zomba Recording LLC, a Delaware limited liability company et al v. Hughes; case 7:2008cv00012
Atlantic Recording Corporation et al v. Helmburg; case 5:2008cv00015
Georgia Southern District:
UMG Recordings, Inc. et al v. Emerson; case 4:2008cv00013
Mass. District:
Sony BMG Music Entertainment et al v. Crespo; case 1:2008cv10093
UMG Recordings, Inc. et al v. Saucier; case 4:2008cv40007
UMG Recordings, Inc. et al v. Straw; case 1:2008cv10092
Tennessee Middle District:
UMG Recordings, Inc. et al v. Adkins; case 3:2008cv00056
Capitol Records, Inc. et al v. Barbiere; case 3:2008cv00055
Warner Bros. Records Inc. et al v. Williams; case 3:2008cv00053
BMG Music et al v. Sharpe; case 3:2008cv00054
UMG Recordings, Inc. et al v. Farris; case 2:2008cv02027
Tennessee Eastern District:
UMG Recordings, Inc et al v. Bush; case 4:2008cv00007]
January 18, 2008
Zappa Update
Upon Zappa's death in 1993, the Trust acquired all rights and interest in Zappa's sound recordings. The Trust and Rykodisc entered into an agreement in 1994 granting the label certain un-released recordings. After a certain period, Rykodisc had an option to exploit those recordings retained by the Trust but submitted to the label for exploitation. (If Rykodisc did not exercise its option, the Trust could seek 3rd party exploitation, but Rykodisc would have a matching right.) Rykodisc was also granted the rights to exploit album artwork and images for the sound recordings it acquired, but it was restricted from altering the artwork.
However, according to Plaintiff, Rykodisc breached the agreement by asserting it had acquired more rights than it did, licensing various recordings for digital and vinyl distribution -- thereby diminishing the "integrity" (sound quality) of the recordings--, releasing masters it did not have the rights to, issuing misleading advertisements with regards to various compilations (e.g., "Best of..."), altering the artwork, and failing to pay mechanical royalties. Thus, in addition to breach of contract, Plaintiff brought numerous copyright and trademark claims, and a claim for accounting.
On each of its willful copyright infringement claims, the Trust seeks maximum statutory damages ($150,000).
[Zappa v. Rykodisc, Inc.; case number 08-cv-00396-WHP; filed 1/15/08]
December 20, 2007
Roadhouse Blues
Nothing that interesting here, other than plaintiffs claim knowing and wilful infringement, based on Defendant ignoring letters from ASCAP -- but then only demand non-wilful statutory damages (i.e., $750 - $30,000). Statutory damages for wilful infringement have a maximum of $150,000. 17 U.S.C. 504(c).
[Duke of Earle et al. v. Baker, case 6:07-cv-04062-RBH (filed 12/18/2007; Dist.S.C.)]