Sony BMG Music Entertainment v. Tenenbaum
Encyclopedia
Sony BMG Music Entertainment v. Tenenbaum(1st Circuit Court) is the subsequent appeals lawsuit following the initial case Sony BMG v. Tenenbaum decided on 31 July 2009 by the Massachusetts District Court. The initial court decision stated Joel Tenenbaum was to pay a sum of $675,000 for damages on counts of willful copyright violation through peer-to-peer file-sharing of 31 songs. The sum of $675,000 was reduced ten-fold to $67,500 due to the district court reasoning that the punishment was excessive and in violation of Tenebaum's due process rights.
Both parties then cross-appealed the Massachusetts District Court decision to the First Circuit Court of Appeals. Sony et al., in defense of full reinstatement of original damages payments and Tenebaum on challenge of both liability and damages. The First Circuit has rejected all of Tenenbaum's arguments, affirmed the denial of Tenebaum's motion for a new trial, reversed the District Court's decision to reduce the damages, reinstated the original award, and remands on the question of the common law remittitur.
in Maryland 2005 prior to the original litigation in the Massachusetts District Court. During this period, Joel Tenenbaum engaged in peer-to-peer file-sharing of at least 31 individual songs owned by the plaintiffs listed collectively as Sony BMG Music Entertainment.
The Plaintiffs Sony BMG Music Entertainment is composed of the following recording companies:
Following the Massachusetts District Court's opinions and holdings that Joel Tenenbaum is guilty on account of Copyright violation, owed Sony $675,000 in statutory damages, and the consequent reduction of damages to $67,500 based upon constitutional remittur, this appeal to a higher court was filed and processed. Collectively, the plaintiffs cross-appellants Sony and defendant Joel Tenenbaum has brought this litigation to the first district court to argue the matters of statutory damages and injunctive relief under the Copyright Act, constitutionality of the damages reduction, matters of fair use, and a district court's ability to invoke constitutionality.
The Massachusetts District Court entered judgement against Tenenbaum that he was liable for willful violation of the Copyright Act and summarily awarded Sony statutory damages of $22,500 for each infringed song. This reward is within the $750 to $150,000 per infringement that Congress established for willful infringement.
Tenenbaum then motioned for a new trial or remittitur
. The district court skipped over the issue of the remittitur and instead reached a constitutional issue. Reasoning that the $675,000 fine is excessive and thus in violation of Tenenbaum's due process rights
Both parties then crossed appealed.
The First Circuit court then moved to reject all of Tenenbaum's arguments. They point out that Tenenbaum has received multiple warnings from his parents, school, ISP, and the recording companies to cease and desist from his file-sharing and thus has willfully violated the Copyright Act and infringed the Copyrights of Sony et. all. by using the peer-to-peer sharing platform Kazaa. In addition, the court affirmed the denial of Tenenbaum's motion for a new trial or remittitur on the claim that the Copyright Act is not applicable to his actions or trial. Lastly, the court reversed the District Court's supplemental decision to reduce the damages Tenenbaum owed Sony et al., and instead reinstated the original full value of $675,000.
Both parties then cross-appealed the Massachusetts District Court decision to the First Circuit Court of Appeals. Sony et al., in defense of full reinstatement of original damages payments and Tenebaum on challenge of both liability and damages. The First Circuit has rejected all of Tenenbaum's arguments, affirmed the denial of Tenebaum's motion for a new trial, reversed the District Court's decision to reduce the damages, reinstated the original award, and remands on the question of the common law remittitur.
Background
Defendant and cross-appellant Joel Tenenbaum was a graduate student studying physics and mathematics in Goucher CollegeGoucher College
Goucher College is a private, co-educational, liberal arts college located in the northern Baltimore suburb of Towson in unincorporated Baltimore County, Maryland, on a 287 acre campus. The school has approximately 1,475 undergraduate students studying in 31 majors and six interdisciplinary...
in Maryland 2005 prior to the original litigation in the Massachusetts District Court. During this period, Joel Tenenbaum engaged in peer-to-peer file-sharing of at least 31 individual songs owned by the plaintiffs listed collectively as Sony BMG Music Entertainment.
The Plaintiffs Sony BMG Music Entertainment is composed of the following recording companies:
- Sony BMG
- Warner Bros. RecordsWarner Bros. RecordsWarner Bros. Records Inc. is an American record label. It was the foundation label of the present-day Warner Music Group, and now operates as a wholly owned subsidiary of that corporation. It maintains a close relationship with its former parent, Warner Bros. Pictures, although the two companies...
- Arista RecordsArista RecordsArista was an American record label. It was a wholly owned subsidiary of Sony Music Entertainment and operated under the RCA Music Group. The label was founded in 1974 by Clive Davis, who formerly worked for CBS Records...
- Atlantic Recording Corporation
- UMG Recordings
Following the Massachusetts District Court's opinions and holdings that Joel Tenenbaum is guilty on account of Copyright violation, owed Sony $675,000 in statutory damages, and the consequent reduction of damages to $67,500 based upon constitutional remittur, this appeal to a higher court was filed and processed. Collectively, the plaintiffs cross-appellants Sony and defendant Joel Tenenbaum has brought this litigation to the first district court to argue the matters of statutory damages and injunctive relief under the Copyright Act, constitutionality of the damages reduction, matters of fair use, and a district court's ability to invoke constitutionality.
Facts
Appearing before Chief Judge Lynch, and Circuit Judges Torruella and Thompson, the facts of the case are as follows:The Massachusetts District Court entered judgement against Tenenbaum that he was liable for willful violation of the Copyright Act and summarily awarded Sony statutory damages of $22,500 for each infringed song. This reward is within the $750 to $150,000 per infringement that Congress established for willful infringement.
Tenenbaum then motioned for a new trial or remittitur
Remittitur
A remittitur is a ruling by a judge lowering the amount of damages granted by a jury in a civil case. Usually, this is because the amount awarded exceeded the amount demanded...
. The district court skipped over the issue of the remittitur and instead reached a constitutional issue. Reasoning that the $675,000 fine is excessive and thus in violation of Tenenbaum's due process rights
Both parties then crossed appealed.
Tenebaum's argument
Joel Tenenbaum challenges the District Court's opinion that he is liable for copyright violation and he should owe Sony statutory damages. Tenenbaum challenges the constitutionality of the Copyright Act. In addition, he challenges the Copyright Act's statutory damages provision's applicability to his conduct. Tenenbaum also argues the district court committed various errors that require a new trial and that a further reduction of the damage award is required by the due process clause.Sony BMG's argument
Sony argues the district court has erred in reducing the jury's award of damages and seeks to reinstate of the full award of $675,000 and in its defense of Tenenbaum's willful infringement and liability of infringement.Court decision
Foremost in the circuit court ruling, the United States defended the constitutionality of the Copyright Act against Joel Tenenbaum's challenge. In addition, the United States contended the District Court of Massachusetts erred in bypassing the question of common law remittitur and thus should not have reduced Tenenbaum's punishment sum as a constitutional issue.The First Circuit court then moved to reject all of Tenenbaum's arguments. They point out that Tenenbaum has received multiple warnings from his parents, school, ISP, and the recording companies to cease and desist from his file-sharing and thus has willfully violated the Copyright Act and infringed the Copyrights of Sony et. all. by using the peer-to-peer sharing platform Kazaa. In addition, the court affirmed the denial of Tenenbaum's motion for a new trial or remittitur on the claim that the Copyright Act is not applicable to his actions or trial. Lastly, the court reversed the District Court's supplemental decision to reduce the damages Tenenbaum owed Sony et al., and instead reinstated the original full value of $675,000.
Aftermath
Although the First Circuit Court, in its opinion, recommends Congress to reanalyze its copyright laws, The United States Supreme Court has yet to weigh in with its opinion. As such, the current legal precedents and legal situation for the states in the First District are as follows:- The Copyright Act is constitutional.
- The Copyright Act is applicable for cases of peer-to-peer file sharing of copyrighted material by individuals.
- Peer-to-peer file sharing of copyrighted works by individuals for the purpose of "enjoyment" is not fair use.
- Skipping common law remittitur and instead applying for constitutional reasoning is erroneous.
- Courts must practice constitutional avoidance: the practice of first arguing or reasoning a point based upon common law before turning to use the constitution.