Sunday, November 30, 2008

Practice tip: statutory damages should bear some relation to actual damages suffered, Yurman v. Castaneda

In a recent case in the Southern District of New York, Yurman Studio, Inc. v. Castaneda, 07 Civ. 1241 (SAS)(S.D.N.Y. November 19, 2008), District Judge Shira A. Scheindlin reminds us of the well settled principle that "At the end of the day, 'statutory damages should bear some relation to actual damages suffered' [citing RSO Records v. Peri, 596 F.Supp. 849,862 (SDNY 1984); New Line Cinema Corp. v. Russ Berrie & Co., 161 F.Supp.2d 293,303 (SDNY 2001); 4 Nimmer Sec. 14.04[E][1] at 14-90(2005)] and 'cannot be divorced entirely from economic reality'"

The damages disproportion and economic reality disconnect in RIAA cases were recognized in the September 24, 2008, dictum of District Judge Michael J. Davis, set forth at pages 40-43 of the Court's decision (pdf) in Capitol v. Thomas, where Judge Davis observed that the statutory damages awarded were "wholly disproportionate", and urged Congressional action to prevent a recurrence. While we agree that Congressional action would be nice, we think it is clear that copyright jurisprudence itself prevents the outlandish damage awards sought by the RIAA.

The lessons to be learned from Yurman, and the body of law upon which it rests, are:

(a) it is necessary to obtain pretrial discovery into the plaintiffs' actual damages,

(b) the RIAA's outlandish theories for recovery of from 2,600 to 450,000 times plaintiffs' actual damages are inconsistent with the main body of copyright law, and cannot be allowed;

(c) the RIAA's allegation of a single copyright violation -- i.e. the use an "online media distribution system" -- should be treated as a single act of copyright infringement, and the award should be limited to a maximum of $750 in statutory damages, total, or $200 if the infringement was innocent; and

(d) as an alternative to (c), the maximum award of statutory damages should be nine (9) times the actual damages proved by plaintiffs to have been sustained, which would limit recovery to a range of from zero to $3.15 per song file (typically, lost profits are approximately 35 cents per song file).

The Courts should recognize that any other interpretation of the Copyright Act would lead to an inescapable conclusion that the statute is unconstitutional.

We should also be mindful of the rule that no statutory damages at all are recoverable if the complaint alleges (as the RIAA complaints do allege) an ongoing course of copyright infringement, for any recordings whose effective date of copyright registration is later than the date the defendant's ongoing course of copyright infringement began. 17 U.S.C. Sec. 412. See, e.g., Homkow v. Musika Records, Inc., 2008 U.S. Dist. LEXIS 14079 (S.D.N.Y. February 26, 2008); Irwin v. ZDF Enters. GmbH, 2006 U.S. Dist. LEXIS 6156 (S.D.N.Y. 2006); Shady Records, Inc. v. Source Enters., 2004 U.S. Dist. LEXIS 26143 (S.D.N.Y. 2004). As to those song files, only the actual damages are recoverable. (Example: Plaintiffs' allegations are that defendant used an online media distribution system to download and/or distribute plaintiffs' songs without permission on a continuing basis. Plaintiffs' proof is to the effect that defendant began using Kazaa on November 1, 2006; defendant used it to download copyrighted song files A through F without permission, during the period January 1, 2007, to December 31, 2007; the copyright registration effective date for song file A is October 1, 2006; the copyright registration effective date for song file B is December 1, 2006; the copyright registration effective dates for song files C through F are in 2007. Plaintiffs can recover statutory damages for Song File A only, and are relegated to actual damages only for song files B through F.)

Yurman v. Castaneda, November 19, 2008, Decision

Commentary & discussion:

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Friday, November 28, 2008

District Judge grants severance as to all John Does other than John Doe #1 in case targeting Case Western Reserve students, Arista v. Does 1-11

In a Cleveland, Ohio, case targeting students at Case Western Reserve University, Arista Records v. Does 1-11, the District Court has granted the defendant John Doe #9's motion for severance, and severed as to Doe #9 and all other defendants except John Doe #1.

District Judge Kathleen O'Malley rejected the RIAA's argument that severance was premature, agreed with the authorities that had granted severance, and dismissed the authorities cited by the RIAA as providing insufficient analysis, explanation, or rationale.

November 3, 2008, Decision



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Magistrate's order affirmed by District Judge in Fonovisa v. Does 1-9, pro se case defended by Carnegie Mellon student

In Fonovisa, Inc. v. Does 1-9, a Pittsburgh, Pennsylvania, case targeting Carnegie Mellon students, in which a student -- appearing pro se -- succeeded in challenging the misjoinder of John Does, but failed to get dismissal of the complaint or quashing of the subpoena, the Magistrate Judge's ruling has now been affirmed by the District Court Judge.

The appeal has been pending for approximately one year.

November 28, 2008, Order Affirming Rulings of Magistrate Judge



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RIAA files motion to compel discovery in St. Louis case, Atlantic Recording v. Raleigh

In Atlantic Recording v. Raleigh, a case pending in St. Louis, Missouri, the RIAA has made a motion to compel discovery.

Plaintiffs' motion to compel discovery

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Prof. Nesson writes article in Journal of New England Technology, on SONY BMG Music v. Tenenbaum

Thanks to Jon Newton at p2pnet.net for pointing out, and commenting on, this article by Prof. Nesson on SONY BMG Music v. Tenenbaum which appeared in the Journal of New England Technology:

"The RIAA’s prosecution of copyright law is unconstitutional"

For Jon's article go here.


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Wednesday, November 26, 2008

In SUNY Albany case, Arista Records v. Does 1-16, defendant's counsel advises Court of London-Sire Records v. Does 1-4 ruling

In Arista Records v. Does 1-16, the case targeting students at SUNY Albany, defendant's lawyer advised the Court of the recent ruling in a Boston University case, London-Sire Records v. Does 1-4. In the Albany case, defendants' motion to quash the subpoena is pending.

Supplemental Declaration of Richard A. Altman

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Warner Bros. Records v. Cassin case settled

Warner Bros. Records v. Cassin, the Westchester case challenging the "making available" theory, has been settled. A notice of dismissal without prejudice of the 2nd phase of that case, the case against the "John Does", was filed today.

Notice of dismissal without prejudice

Commentary & discussion:

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Tuesday, November 25, 2008

Practice Tip: Motions to Quash After Judge Gertner's November 24, 2008, Decision in London Sire Records v. Does 1-4

As you know, on November 24th, in one of the "John Doe" cases targeting Boston University, consolidated under the heading London-Sire Records v. Does 1-4, after the university advised the Court that it could not identify John Does #8, 9, and 14 to a reasonable degree of technical certainty, Judge Nancy Gertner deemed the letter a motion to quash, and granted it, quashing the subpoena as to those defendants:

The Court treats Boston University's 9/23/08 Letter as a Motion to Quash and GRANTS the motion with respect to Doe Defendants # 8, 9, and 14. The University has adequately demonstrated that it is not able to identify the alleged infringers with a reasonable degree of technical certainty. As a result, the Court finds that compliance with the subpoena as to the IP addresses represented by these Defendants would expose innocent parties to intrusive discovery. Accordingly, under the test laid out in its 3/31/08 Order, the Court declines to authorize discovery and quashes the subpoena as to Does # 8, 9, and 14.
(emphasis supplied) We have been saying this for years. It is refreshing to see it finally recognized in a decision. Interestingly, it occurred in an undefended case, where no "John Doe" appeared. The Court, however, deemed the University's letter explaining the identification problem a motion to quash, and granted it.

The reason we believe this little, 4-sentence, decision is so important is that if the principle it enunciates is followed consistently by Judge Gertner and by other judges, very few, if any, RIAA subpoenas will withstand a motion to quash going forward. E.g., if this principle had been followed in Arista Records v. Does 1-17 targeting University of Oregon students, or in LaFace Records v. Does 1-14 targeting University of Arizona students, in both of which the university's plea fell on deaf ears, the respective subpoenas would have been quashed as to all, or at least most, of the students.

Accordingly, I urge every practitioner who is consulted by a John Doe defendant, and is contemplating a motion to vacate the ex parte discovery order and quash the subpoena issued under it -- whether through a college or university or through a commercial internet service provider -- to give careful consideration to the November 24, 2008, decision in London-Sire Records v. Does 1-4.

And I urge every college and university counsel, and internet service providers' counsel, to consult with your technical staff and recognize that Judge Gertner's decision implies a responsibility on your part, on behalf of your students and subscribers, to advise the respective courts from which the subpoenas have been issued, before making disclosure to the RIAA, as to which, if any, "alleged infringers" can be identified "with a reasonable degree of technical certainty", as Boston University did, so that the Court can pass upon the question .

Order (a) treating University's letter as motion to quash, and (b) quashing subpoena as to John Does #8, 9, and 14

Commentary & discussion:

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RIAA files reply memo in support of its motion for permission to appeal in Capitol Records v. Thomas

In Capitol Records v. Thomas, the RIAA has filed a reply memorandum in further support of its motion for permission to appeal from the Court's September 24, 2008 decision.

Plaintiffs' Reply Memorandum

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Monday, November 24, 2008

Judge quashes Boston University subpoena as to 'John Does' whom BU could not identify 'to reasonable degree of technical certainty'

In one of the "John Doe" cases targeting Boston University, consolidated under the heading London-Sire Records v. Does 1-4, after the university advised the Court that it could not identify John Does #8, 9, and 14 to a reasonable degree of technical certainty, Judge Nancy Gertner deemed the letter a motion to quash, and granted it, quashing the subpoena as to those defendants:

The Court treats Boston University's 9/23/08 Letter as a Motion to Quash and GRANTS the motion with respect to Doe Defendants # 8, 9, and 14. The University has adequately demonstrated that it is not able to identify the alleged infringers with a reasonable degree of technical certainty. As a result, the Court finds that compliance with the subpoena as to the IP addresses represented by these Defendants would expose innocent parties to intrusive discovery. Accordingly, under the test laid out in its 3/31/08 Order, the Court declines to authorize discovery and quashes the subpoena as to Does # 8, 9, and 14.
Order (a) treating University's letter as motion to quash, and (b) quashing subpoena as to John Does #8, 9, and 14

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Sunday, November 23, 2008

Elektra Entertainment v. Torres and Maverick Recording v. Chowdhury, two Brooklyn cases against Queens residents, settled

Two Brooklyn cases against residents of Queens, Elektra Entertainment Group v. Torres and Maverick Recording v. Chowdhury, have been settled.

Elektra v. Torres Stipulation of Dismissal With Prejudice
Maverick v. Chowdhury, Minute Entry noting settlement in court record

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Saturday, November 22, 2008

Email string between Prof. Nesson and Timothy Reynolds

Just thought some of you might like seeing email strings between Prof. Nesson and Timothy Reynolds in SONY BMG Music v. Tenenbaum... so here's one.

I guess you'll be able to find more, and other interesting tidbits about the Tenenbaum case, by following Prof. Nesson's blog, "eon".

Commentary & discussion:

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Friday, November 21, 2008

Oral argument set for December 9th in Cincinnati in Elektra Entertainment Group v. Licata

District Judge Herman J. Weber has granted the defendant's request for oral argument of the pending motions in Elektra Entertainment Group v. Licata, a Cincinnati "throwing in the towel" case.

This is the case in which (a) the defendant moved to dismiss the complaint for failure to state a claim and for attorneys fees, (b) the RIAA moved to dismiss its own complaint "without prejudice", and (c) the Magistrate Judge denied defendant's motions, and granted the RIAA's motion.

Defendant has filed papers objecting to the Magistrate Judge's recommendations, and the matter is now before Judge Weber.

The argument is open to the public, and will be held at:

Tuesday, December 9th
10:00 AM
Room 801
Potter Stewart US Court House
100 East Fifth St.
Cincinnati, Ohio 45202




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