Justia Copyright Opinion Summaries

Several major music copyright owners, including a leading entertainment company, sought to hold an Internet service provider responsible for copyright infringement committed by its subscribers. The service provider, which serves millions of customers, was notified by a monitoring company of over 160,000 instances where its subscribers’ IP addresses were linked to alleged copyright violations such as illegal music file sharing. Although the provider had policies prohibiting infringement and took steps such as issuing warnings and suspending service, the copyright holders argued these measures were inadequate and brought suit seeking to impose liability on the provider for continuing to serve known infringers.The case was tried in the United States District Court for the Eastern District of Virginia. There, the jury found in favor of the copyright owners on both contributory and vicarious liability, and determined the provider’s infringement was willful, awarding $1 billion in statutory damages. After the District Court denied the provider’s post-trial motion, the United States Court of Appeals for the Fourth Circuit affirmed the finding of contributory liability, reasoning that supplying a service with knowledge it would be used for infringement was sufficient. The Fourth Circuit, however, reversed as to vicarious liability and remanded for a new determination of damages.The Supreme Court of the United States reviewed the case concerning contributory liability. The Court held that a service provider is contributorily liable for a user’s infringement only if it either induced the infringement or provided a service tailored for infringement. Because the provider neither encouraged infringement nor offered a service primarily designed for infringement—since Internet access has substantial lawful uses—the provider was not contributorily liable. The Supreme Court reversed the Fourth Circuit’s judgment on contributory liability and remanded the case for further proceedings. View "Cox Communications, Inc. v. Sony Music Entertainment" on Justia Law

A major music performing rights organization, which licenses the public performance of musical works to concert promoters, was unable to reach agreement with a national association of concert promoters on the rates and revenue base for blanket licenses covering live performances. For the first time in their relationship, the rights organization petitioned the United States District Court for the Southern District of New York to set the licensing terms, as permitted under an antitrust consent decree applicable to the organization due to its significant market share. The promoters’ association, whose members include the two largest concert promoters in the United States, has historically secured blanket licenses from multiple performing rights organizations to avoid copyright infringement.The district court accepted the organization’s proposed rates for a retroactive period and set a new, higher rate for a more recent period. It also broadened the definition of “gross revenues” for calculating royalties, including new categories such as revenues from ticket service fees, VIP packages, and box suites, which had not traditionally been included. The promoters’ association appealed these decisions, arguing that both the rates and the expanded revenue base were unreasonable. The rights organization cross-appealed the denial of prejudgment interest on retroactive payments.The United States Court of Appeals for the Second Circuit reviewed the district court’s decisions. It held that the district court imposed unreasonable rates, in part because it adopted an unprecedented and administratively burdensome revenue base without justification and relied too heavily on benchmark agreements that were not sufficiently comparable to prior agreements with the association. The court also found no economic changes justifying a significant rate increase. While it found no abuse of discretion in denying prejudgment interest, it vacated the district court’s judgment and remanded for further proceedings consistent with its opinion. View "Broadcast Music, Inc. v. North American Concert Promoters Association" on Justia Law

A professional photographer discovered that between 2018 and 2022, hundreds of his photographs were uploaded to an online stock photo platform operated by a large digital content marketplace, without his permission. Three contributors to the platform were responsible for uploading these images, and the platform subsequently licensed many of them to customers, generating revenue shared with the uploaders. After being notified by the photographer’s attorney, the platform removed the images and terminated the contributor accounts, but the photographer filed suit alleging both copyright infringement and violations related to the removal and alteration of copyright management information (CMI).The United States District Court for the Southern District of New York granted summary judgment to the platform on all claims. The court concluded that the platform qualified for safe harbor immunity under the Digital Millennium Copyright Act (DMCA) for the copyright infringement claims. For the CMI claims, the court found that the photographer failed to present evidence of the platform's required scienter (knowledge or intent) to sustain a violation under 17 U.S.C. § 1202.On appeal, the United States Court of Appeals for the Second Circuit affirmed the district court’s decision regarding the CMI claims, agreeing that there was no evidence the platform acted with the necessary scienter under § 1202(a) or (b). However, the appellate court vacated the grant of summary judgment on the copyright infringement claims. It held that factual disputes remained as to whether the infringing activity occurred “by reason of the storage at the direction of a user” and whether the platform had the “right and ability to control” the infringing activity, both critical to safe harbor eligibility under the DMCA. The case was remanded for further proceedings on these factual questions. View "McGucken v. Shutterstock, Inc." on Justia Law

The case concerns Frederick Allen, a videographer, and his company, Nautilus Productions, who documented the excavation of the Queen Anne’s Revenge, the sunken pirate ship of Blackbeard, off the North Carolina coast. Allen registered copyrights for many years of video footage he recorded during the recovery project. The State of North Carolina and its Department of Natural and Cultural Resources entered into agreements related to the salvage operation. Allen alleged that state officials infringed his copyrights by using his footage online and in state publications without permission, and that the state passed a law, N.C. Gen. Stat. § 121-25(b), which Allen argued authorized this infringement.The United States District Court for the Eastern District of North Carolina initially dismissed some claims but allowed Allen’s claims for declaratory judgment and copyright infringement to proceed, finding Congress had validly abrogated state sovereign immunity under the Copyright Remedy Clarification Act (CRCA). On appeal, the United States Court of Appeals for the Fourth Circuit reversed, holding that the CRCA did not validly abrogate state sovereign immunity, and the Supreme Court affirmed. Allen then voluntarily dismissed his remaining claims against the only non-governmental defendant, closing the case.Despite these rulings, the district court in 2021 allowed Allen to reopen the case, permitting him to amend his complaint based on a new constitutional theory stemming from United States v. Georgia, seeking as-applied, case-by-case abrogation of state sovereign immunity. In 2024, the district court denied sovereign immunity on this new claim, allowing it to proceed. The North Carolina defendants appealed.The United States Court of Appeals for the Fourth Circuit held that the district court abused its discretion in reopening the litigation under Rule 54(b) rather than Rule 60(b), where no extraordinary circumstances justified such relief. The appellate court reversed the order reopening the case, vacated the subsequent 2024 ruling as moot, and remanded with instructions to close the litigation and dismiss all claims against the North Carolina defendants with prejudice. View "Allen v. Stein" on Justia Law

A Kentucky high school intended to administer a mental-health survey to its students. Concerned about the survey’s contents, a parent requested a copy under the Kentucky Open Records Act, aiming to share it with other parents and reporters. The school denied her request, citing a provision of the state law that excludes records “prohibited by federal law or regulation” from disclosure, and argued that the survey was copyrighted by its publisher, NCS Pearson. The school did allow her to inspect the survey in person, but would not provide a copy.The parent, Miranda Stovall, did not pursue available state remedies, such as review by the Kentucky Attorney General or a state court appeal. Instead, she filed suit in the United States District Court for the Western District of Kentucky, seeking a declaratory judgment that releasing the survey would fall under the fair-use exception in federal copyright law. NCS Pearson moved to dismiss for lack of jurisdiction, and the district court dismissed the case, finding that Stovall’s claim did not arise under federal law.The United States Court of Appeals for the Sixth Circuit reviewed the district court’s decision. The appellate court held that federal jurisdiction was lacking because Stovall’s claim arose under state law, not the Copyright Act, and did not “necessarily raise” a substantial federal question. The court found that copyright law entered the dispute only as a defense to the state-law claim, and that potential future infringement actions did not establish Article III standing. The court affirmed the district court’s dismissal for lack of federal subject-matter jurisdiction. View "Stovall v. Jefferson Cnty. Bd. of Education" on Justia Law

Two individuals, Vetter and Smith, co-wrote the song “Double Shot (Of My Baby’s Love)” in 1962 and assigned all copyright interests to Windsong Music Publishers in 1963, including a contingent assignment of renewal rights. After Smith died in 1972, his heirs and Vetter renewed the copyright when the original term ended in 1994. Windsong’s ownership of renewal rights depended on the authors’ survival; thus, Windsong received Vetter’s renewal rights because he survived, while Smith’s heirs received his share. Vetter Communications Corporation later purchased Smith’s heirs’ renewal rights. In 2019, Vetter terminated his earlier assignment under 17 U.S.C. § 304(c), aiming to recapture his rights. The publisher’s ownership interests were subsequently sold to Resnik Music Group. When licensing negotiations arose for international use, conflicting ownership claims led Vetter and his corporation to seek a declaratory judgment establishing their sole copyright ownership worldwide.The United States District Court for the Middle District of Louisiana denied Resnik’s motion to dismiss and granted summary judgment for the plaintiffs. The court declared that Vetter was the sole owner of the recaptured copyright interest globally, and Vetter Communications Corporation was the sole owner of the renewal copyright interest globally, establishing their exclusive ownership.On appeal, the United States Court of Appeals for the Fifth Circuit reviewed the district court’s summary judgment de novo. The Fifth Circuit affirmed the district court’s judgment, holding that termination of copyright assignments under 17 U.S.C. § 304(c) and the renewal provisions of the Copyright Act of 1909 confer worldwide ownership rights to the terminating author or their heirs, not limited to domestic rights. The court found that statutory text, context, and purpose support this interpretation, and that the judgment does not conflict with international treaty obligations or relevant legal principles. View "Vetter v. Resnik" on Justia Law

Athos Overseas Limited owns copyrights to numerous classic Mexican and Latin American films. The company discovered that its copyrighted films were posted on YouTube without authorization. Athos sent multiple takedown notices to YouTube, which removed the specific videos identified in those notices. However, Athos argued that YouTube’s technology—particularly its video-hashing and content management tools—gave it actual or “red flag” knowledge of additional infringing material beyond what was specifically identified, and thus YouTube should have removed all such matches automatically.The United States District Court for the Southern District of Florida reviewed cross-motions for summary judgment. The district court adopted the magistrate judge’s recommendation, denied Athos’s motion for partial summary judgment, and granted summary judgment in favor of YouTube. The court found that YouTube qualified for safe-harbor protection under 17 U.S.C. § 512(c) of the Digital Millennium Copyright Act (DMCA), as it expeditiously removed infringing material identified by valid takedown notices and did not have actual or red flag knowledge of other specific infringements.On appeal, the United States Court of Appeals for the Eleventh Circuit affirmed the district court’s decision. The Eleventh Circuit held that YouTube’s copyright management technologies do not, in themselves, give YouTube actual or red flag knowledge of specific infringing material unless a valid DMCA notice is received. The court also found that YouTube’s moderation and curation features did not constitute the right and ability to control infringing activity for purposes of the DMCA safe harbor. Therefore, YouTube was entitled to safe-harbor protection under § 512(c), and summary judgment in its favor was proper. View "Athos Overseas Limited Corp. v. YouTube, Inc." on Justia Law

Two individuals who are heirs to the author of a 1983 magazine article about the United States Navy Fighter Weapons School, known as “Top Gun,” brought suit against a film studio. They alleged that a 2022 film, which is a sequel to an earlier movie inspired by the article, unlawfully copied their copyrighted work and breached a contractual obligation to credit the original author.After the 1983 article was published, the author assigned all rights to the studio in exchange for compensation and a promise that he would be credited in any movie “substantially based upon or adapted from” the article. The studio produced an initial film in 1986, which acknowledged the article. Decades later, the heirs terminated the copyright grant under 17 U.S.C. § 203(a)(3)—a statutory right for authors’ heirs. The studio released the sequel without crediting or compensating the heirs. The heirs filed claims for copyright infringement and breach of contract in the United States District Court for the Central District of California. The district court granted summary judgment for the studio, finding that the new film did not share substantial amounts of the article’s original expression and excluded the plaintiffs’ expert’s opinion for failing to filter out unprotectable elements.On appeal, the United States Court of Appeals for the Ninth Circuit affirmed the district court’s decision. The appellate court held that the sequel did not share substantial similarity in protectable expression with the article, as required for copyright infringement. It also found no original and protectable selection and arrangement of elements, and concluded that the district court properly excluded the plaintiffs’ expert and admitted the studio’s expert. The court further held that the studio did not breach the 1983 agreement, because the new film was not produced under the rights conferred by that agreement. The judgment for the studio was affirmed. View "YONAY V. PARAMOUNT PICTURES CORPORATION" on Justia Law

A South Korean entertainment company that owns trademarks for the popular “Baby Shark” song and related products brought a lawsuit in the United States District Court for the Southern District of New York against dozens of China-based businesses. The company alleged these businesses manufactured or sold counterfeit Baby Shark merchandise, violating trademark, copyright, and unfair competition laws. Seeking to stop the alleged counterfeiting, the company obtained temporary and preliminary injunctions and moved to serve the defendants by email, arguing that this method was appropriate under Federal Rule of Civil Procedure 4(f)(3).After the plaintiff served process by email, most defendants did not respond, leading to default judgments against many of them. However, two defendants appeared and challenged the court’s jurisdiction, arguing that service by email violated the Hague Service Convention, to which both the United States and China are parties. The district court agreed, finding that the Convention did not permit service by email on parties in China, and dismissed the claims against these defendants without prejudice for improper service. The plaintiff appealed to the United States Court of Appeals for the Second Circuit.The United States Court of Appeals for the Second Circuit affirmed the district court’s decision. The appellate court held that the Hague Service Convention does not allow email service on defendants located in China, as China has expressly objected to alternative methods such as those in Article 10 of the Convention. The court further held that neither Federal Rule of Civil Procedure 4(f)(2) nor any purported emergency exception permitted email service in these circumstances. The court also upheld the denial of a default judgment, finding no abuse of discretion. Accordingly, the dismissal of the claims against the two China-based defendants for lack of proper service was affirmed. View "Smart Study Co., LTD v. Shenzhenshixindajixieyouxiangongsi" on Justia Law

A dispute arose from the design and installation of cabinetry in a luxury home in Charleston, South Carolina. Design Gaps, Inc., owned by David and Eva Glover, had a longstanding business relationship with Shelter, LLC, a general contractor operated by Ryan and Jenny Butler. After being dissatisfied with Design Gaps’ performance, the homeowners, Dr. Jason and Kacie Highsmith, and Shelter terminated their contract with Design Gaps and hired Distinctive Design & Construction LLC, owned by Bryan and Wendy Reiss, to complete the work. The Highsmiths and Shelter initiated arbitration against Design Gaps, which led to the arbitrator ruling in favor of the homeowners and Shelter on their claims, and against Design Gaps on its counterclaims, including those for copyright infringement, tortious interference, and unfair trade practices.After the arbitration, Design Gaps sought to vacate the arbitration award in the United States District Court for the District of South Carolina, but the court instead confirmed the award. Concurrently, Design Gaps filed a separate federal lawsuit against several parties, including some who were not part of the arbitration. The defendants moved to dismiss, arguing that res judicata and collateral estoppel barred the new claims, or alternatively, that the claims failed on other grounds such as the statute of limitations and laches. The district court agreed, dismissing most claims based on preclusion or other legal bars, and granted summary judgment on the remaining claims.The United States Court of Appeals for the Fourth Circuit reviewed the district court’s decisions. The court held that res judicata and collateral estoppel applied to bar most of Design Gaps’ claims, even against parties not directly involved in the arbitration but in privity with those who were. For the remaining claims, the court found they were properly dismissed on grounds such as the statute of limitations, waiver, or laches. The Fourth Circuit affirmed the district court’s judgment in full. View "Design Gaps, Inc. v. Distinctive Design & Construction LLC" on Justia Law