Justia U.S. 2nd Circuit Court of Appeals Opinion Summaries

Plaintiffs, members of a musical group called "Sly Slick & Wicked," filed suit alleging that Dynatone and others collected royalties from the sampling of their song, "Sho' Nuff" in 2013 and that plaintiffs were entitled to those royalty payments. The Second Circuit held that the district court erred in concluding that a repudiation of plaintiffs' claims with respect to the original terms constituted a repudiation of the renewal terms. In this case, plaintiffs did not have reasonable notice that defendants had filed a registration in the capacity of employer for hire. Therefore, the registration did not constitute effective repudiation, triggering an obligation for plaintiffs to bring suit. Accordingly, the court vacated this portion of the judgment. The court affirmed the district court's dismissal of plaintiffs' state law accounting claim for failure to allege a fiduciary duty. Therefore, the court remanded for further proceedings as to plaintiffs' renewal term copyright claims. View "Wilson v. Dynatone Publishing Co." on Justia Law

The Second Circuit appealed the district court's dismissal of Great Minds' copyright infringement action against FedEx. The court found that Great Minds' license did not explicitly address whether licensees may engage third parties to assist them in exercising their own noncommercial use rights under the license. The court held that, in view of the absence of any clear license language to the contrary, licensees may use third‐party agents such as commercial reproduction services in furtherance of their own permitted noncommercial uses. In this case, because FedEx acted as the mere agent of licensee school districts when it reproduced Great Minds' materials, and because there was no dispute that the school districts themselves sought to use Great Minds' materials for permissible purposes, FedEx's activities did not breach the license or violate Great Minds' copyright. View "Great Minds v. FedEx Office & Print Services, Inc." on Justia Law

Fox filed suit against TVEyes for copyright infringement after TVEyes, a media company that continuously records the audiovisual content of more than 1,400 television and radio channels, enabled its clients to watch Fox's programming. The Second Circuit held that TVEyes's actions were not protected by the fair use doctrine. The court explained that, although TVEyes's re‐distribution of Fox's content served a transformative purpose by enabling clients to isolate material and to access it in a conventional manner, such re‐distribution makes available to clients virtually all of Fox's copyrighted content that clients wish to see and hear. Therefore, TVEyes deprived Fox of revenue that properly belongs to the copyright holder. The court reversed the district court's order to the extent that it found fair use; affirmed the district court's order to the extent that it denied TVEyes's request for additional relief; and remanded for entry of a revised injunction. View "Fox News Network, LLC v. TVEyes, Inc." on Justia Law

DRK, a purported assignee of photographers' rights to sue for infringement, filed suit seeking statutory damages from Wiley, a licensee, for exceeding its licensed use of certain photographs as to which DRK non‐exclusively represents the photographers. The Second Circuit invoked its precedent in Eden Toys v. Florelee Undergarment, Co., 697 7 F.2d 27 (2d Cir. 1982), and held that as a matter of law the Copyright Act did not permit prosecution of infringement suits by assignees of the bare right to sue that were not and have never been a legal or beneficial owner of an exclusive right under copyright. In this case, the court held that DRK was not and has never been the holder of an exclusive right in the photographs. Accordingly, the court affirmed the judgment of the district court. View "John Wiley & Sons, Inc. v. DRK Photo" on Justia Law

Sirius appealed the district court's order denying its motions for summary judgment and reconsideration in regard to Flo & Eddie's copyright infringement suit. The court certified a significant and unresolved issue of New York law that is determinative of this appeal: Is there a right of public performance for creators of pre-1972 sound recordings under New York law and, if so, what is the nature and scope of that right? The New York Court of Appeals answered that New York common law does not recognize a right of public performance for creators of pre-1972 sound recordings. In light of this ruling, the court reversed the district court's denial of summary judgment and remanded with instructions to grant Sirius's motion for summary judgment and to dismiss the case with prejudice. View "Flo & Eddie v. Sirius XM Radio" on Justia Law

Plaintiffs filed a copyright infringement suit against MP3tunes and its founder and CEO, alleging that two internet music services created by MP3tunes infringed their copyrights in thousands of sound recordings and musical compositions. The district court granted partial summary judgment to defendants, holding that MP3tunes had a reasonably implemented repeat infringer policy under section 512 of the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 512. A jury returned a verdict in favor of plaintiffs, but the district court partially overturned the verdict. The court vacated the district court's grant of partial summary judgment to defendants based on its conclusion that MP3tunes qualified for safe harbor protection under the DMCA because the district court applied too narrow a definition of “repeat infringer”; reversed the district court's grant of judgment as a matter of law to defendants on claims that MP3tunes permitted infringement of plaintiffs’ copyrights in pre‐2007 MP3s and Beatles songs because there was sufficient evidence to allow a reasonable jury to conclude that MP3tunes had red‐flag knowledge of, or was willfully blind to, infringing activity involving those categories of protected material; remanded for further proceedings related to claims arising out of the district court's grant of partial summary judgment; and affirmed the judgment in all other respects. View "EMI Christian Music Group, Inc. v. MP3tunes, LLC" on Justia Law

In this copyright infringement suit, plaintiffs challenged the district court's determination that defendants’ verbatim use of a portion of Abbott and Costello’s iconic comedy routine, "Who’s on First?," in the recent Broadway play "Hand to God," qualified as a non‐infringing fair use. The court concluded that defendants’ entitlement to a fair use defense was not so clearly established on the face of the amended complaint and its incorporated exhibits as to support dismissal. In this case, defendants' verbatim use of the routine was not transformative, defendants failed persuasively to justify their use of the routine, defendants' use of some dozen of the routine’s variations of “who’s on first” was excessive in relation to any dramatic purpose, and plaintiffs alleged an active secondary market for the work, which was not considered by the district court. The court concluded, however, that the dismissal is warranted because plaintiffs failed to plausibly plead ownership of a valid copyright. The court found plaintiffs' efforts to do so on theories of assignment, work‐for‐hire, and merger all fail as a matter of law. Accordingly, the court affirmed the judgment. View "TCA Television Corp. v. McCollum" on Justia Law

Plaintiff, the widow of Louis K. Smith, who authored and copyrighted a book entitled "The Hardscrabble Zone," filed suit alleging direct and contributory copyright infringement by Barnes & Noble. Barnes & Noble, under license, uploads books and book samples to digital “lockers” that it maintains for its individual customers. When the license granted by Smith was terminated, Barnes & Noble did not delete a sample of Smith’s book. The court concluded that, because the agreement does not provide for the license in the sample to terminate after the sample has been distributed, plaintiff cannot sustain her burden to prove that providing cloud‐based access to validly obtained samples is beyond the scope of the license agreement. Therefore, the court concluded that the conduct at issue was authorized by the relevant contracts between the parties and affirmed the judgment. View "Smith v. Barnesandnoble.com, LLC" on Justia Law

Plaintiff, a composer and music producer, filed a copyright suit against Sony, Razor Sharp Records, and Dennis Coles, a/k/a Ghostface Killah, to enforce plaintiff's claimed ownership rights in the "Iron Man" theme song. The district court determined that plaintiff failed to present sufficient evidence to rebut the presumption that Marvel was, in fact, the copyright owner. Therefore, the district court dismissed plaintiff's New York common law claims for copyright infringement, unfair competition, and misappropriation on the basis that those claims were preempted by the Copyright Act, 17 U.S.C. 101 et seq. The court held that, although the district court properly determined that defendants had standing to raise a “work for hire” defense to plaintiff’s copyright infringement claim, the district court erred in concluding that plaintiff failed to raise issues of material fact with respect to his ownership of the copyright; the district court properly dismissed plaintiff’s state law claims as preempted by the Copyright Act; the court vacated the district court’s summary judgment ruling with respect to plaintiff’s Copyright Act claim and remanded for further proceedings; and the court affirmed the district court's dismissal of plaintiff's state law claims. View "Urbont v. Sony Music Entm't" on Justia Law

The Digital Millennium Copyright Act of 1998 (DMCA), 17 U.S.C. 512(c), establishes a safe harbor which gives qualifying Internet service providers protection from liability for copyright infringement when their users upload infringing material on the service provider’s site and the service provider is unaware of the infringement. Plaintiffs filed suit against Vimeo alleging that Vimeo is liable for copyright infringement by reason of 199 videos posted on the Vimeo website, which contained allegedly infringing musical recordings for which plaintiffs owned the rights. In this interlocutory appeal on certified questions from rulings of the district court interpreting the DMCA, the court concluded that the safe harbor of section 512(c) does apply to pre-1972 sound recordings, and therefore protects service providers against liability for copyright infringement under state law with respect to pre-1972 sound recordings, as well as under the federal copyright law for post-1972 recordings. Therefore, the district court’s grant of partial summary judgment to plaintiffs with respect to Vimeo’s entitlement to the safe harbor for infringements of pre-1972 recordings is vacated. The court also concluded that various factual issues that arise in connection with a service provider’s claim of the safe harbor are subject to shifting burdens of proof. Because, on a defendant’s claim of the safe harbor, the burden of showing facts supporting a finding of red flag knowledge shifts to the plaintiff, and the district court appears to have denied Vimeo’s motion for summary judgment as to a number of videos on this issue based on a test that would improperly deny service providers access to the safe harbor, the court vacated the denial of Vimeo’s motion for summary judgment on that issue. The court remanded for reconsideration and further proceedings. Finally, the court rejected plaintiff's argument that the district court erred in its ruling in Vimeo’s favor as to plaintiffs’ reliance on the doctrine of willful blindness. Accordingly, the court affirmed in part, vacated in part, and remanded for further proceedings. View "Capitol Records, LLC v. Vimeo, LLC" on Justia Law