Elektra Records Co. v. Gem Electronic Distributors, Inc.

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Elektra Records Co. v. Gem Electronic Distributors, Inc.
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United States District Court for the Eastern District of New York
Full case nameElektra Records Co. v. Gem Electronic Distributors, Inc.
Date decidedJune 29, 1973
Docket nos.73-cv-772
Citations360 F. Supp. 821
Judge sitting Edward Raymond Neaher

Elektra Records Co. v. Gem Electronic Distributors, Inc., 360 F. Supp. 821 (E.D.N.Y. 1973), [1] was an important case before the United States District Court for the Eastern District of New York that concerned copyright infringement, which held that secondary persons or entities could be liable for that tort under certain circumstances, and is also called the "'make-a-tape' case". [2]

Case law is the collected body of decisions written by courts and similar tribunals in the course of deciding past cases, in which the tribunals analyzed the law to resolve ambiguities and fill gaps to set principled rules for deciding those past cases. These past decisions are called "case law", or precedent to the extent that those past decisions are used by future judges to decide future cases. Stare decisis—a Latin phrase meaning “let the decision stand”—is the principle by which judges are bound to such past decisions. These judicial interpretations are distinguished from statutory law, which are codes enacted by legislative bodies, and regulatory law, which are established by executive agencies based on statutes. In some jurisdictions, case law can be applied to ongoing adjudication; for example, criminal proceedings or family law.

United States District Court for the Eastern District of New York

The United States District Court for the Eastern District of New York is the federal district court whose jurisdiction comprises Long Island and Staten Island in New York. The court's territorial jurisdiction includes the Counties of Kings (Brooklyn), Queens, Richmond, Nassau, and Suffolk as well as, concurrently with the Southern District of New York, the waters of New York and Bronx counties. Courthouses are located in Brooklyn and Central Islip.

Copyright infringement Intellectual property violation

Copyright infringement is the use of works protected by copyright law without permission for a usage where such permission is required, thereby infringing certain exclusive rights granted to the copyright holder, such as the right to reproduce, distribute, display or perform the protected work, or to make derivative works. The copyright holder is typically the work's creator, or a publisher or other business to whom copyright has been assigned. Copyright holders routinely invoke legal and technological measures to prevent and penalize copyright infringement.

Contents

The facts were that:

a record shop rented sound recordings to customers who would also purchase blank tape and then use a recording machine on the store premises to copy the rented recording onto the blank tape. The store owner's knowledge of the likely use of the blank tape was patent.

— Jane Ginsburg, Professor, Columbia Law School [2]

Federal courts have held that secondary tort liability exists when:

In law, liable means "responsible or answerable in law; legally obligated." Legal liability concerns both civil law and criminal law and can arise from various areas of law, such as contracts, torts, taxes, or fines given by government agencies. The claimant is the one who seeks to establish, or prove, liability.

enabling or inciting another to infringe, at least when the enabler knows that her conduct will result in infringement. Decisions dating back several decades recognize that one who supplies the means to infringe, and knows of the use to which the means will be put (or turns a blind eye), can be held liable for contributory infringement. In the early cases, however, the relationship between the supplier and the user of the means was sufficiently close, that there could be little doubt of either the knowledge or the nexus between the means and the infringement.

— Jane Ginsburg, Professor, Columbia Law School [2]

Knowledge of the infringement of the copyright is the essential element that Elektra Records developed.

Knowledge is a familiarity, awareness, or understanding of someone or something, such as facts, information, descriptions, or skills, which is acquired through experience or education by perceiving, discovering, or learning.

Under United States law, an element of a crime is one of a set of facts that must all be proven to convict a defendant of a crime. Before a court finds a defendant guilty of a criminal offense, the prosecution must present evidence that, even when opposed by any evidence the defense may choose, is credible and sufficient to prove beyond a reasonable doubt that the defendant committed each element of the particular crime charged. The component parts that make up any particular crime vary depending on the crime.

Impact

This case was used as a precedent for the US Supreme Court cases of Sony Corp. of America v. Universal City Studios, Inc. , 125 S. Ct. 2764 (1984) and MGM Studios, Inc. v. Grokster, Ltd. , 464 U.S. 417 (2005). [2]

In common law legal systems, precedent is a principle or rule established in a previous legal case that is either binding on or persuasive for a court or other tribunal when deciding subsequent cases with similar issues or facts. Common-law legal systems place great value on deciding cases according to consistent principled rules, so that similar facts will yield similar and predictable outcomes, and observance of precedent is the mechanism by which that goal is attained. The principle by which judges are bound to precedents is known as stare decisis. Common-law precedent is a third kind of law, on equal footing with statutory law and subordinate legislation - that is, delegated legislation or regulatory law.

Supreme Court of the United States Highest court in the United States

The Supreme Court of the United States (SCOTUS) is the highest court in the federal judiciary of the United States. Established pursuant to Article III of the U.S. Constitution in 1789, it has original jurisdiction over a narrow range of cases, including suits between two or more states and those involving ambassadors. It also has ultimate appellate jurisdiction over all federal court and state court cases that involve a point of federal constitutional or statutory law. The Court has the power of judicial review, the ability to invalidate a statute for violating a provision of the Constitution. Executive acts can be struck down by the Court for violating either the Constitution or federal law. However, it may act only within the context of a case in an area of law over which it has jurisdiction. The court may decide cases having political overtones, but it has ruled that it does not have power to decide non-justiciable political questions.

Sony Corp. of America v. Universal City Studios, Inc., 464 U.S. 417 (1984), also known as the “Betamax case”, is a decision by the Supreme Court of the United States which ruled that the making of individual copies of complete television shows for purposes of time shifting does not constitute copyright infringement, but is fair use. The Court also ruled that the manufacturers of home video recording devices, such as Betamax or other VCRs, cannot be liable for infringement. The case was a boon to the home video market, as it created a legal safe haven for the technology.

See also

Related Research Articles

Grokster Ltd. was a privately owned software company based in Nevis, West Indies that created the Grokster peer-to-peer file-sharing client in 2001 that used the FastTrack protocol. Grokster Ltd. was rendered extinct in late 2005 by the United States Supreme Court's decision in MGM Studios, Inc. v. Grokster, Ltd. The court ruled against Grokster's peer-to-peer file sharing program for computers running the Microsoft Windows operating system, effectively forcing the company to cease operations.

Online service provider law is a summary and case law tracking page for laws, legal decisions and issues relating to online service providers (OSPs), like the Wikipedia and Internet service providers, from the viewpoint of an OSP considering its liability and customer service issues. See Cyber law for broader coverage of the law of cyberspace.

Vicarious liability is a form of a strict, secondary liability that arises under the common law doctrine of agency, respondeat superior, the responsibility of the superior for the acts of their subordinate or, in a broader sense, the responsibility of any third party that had the "right, ability or duty to control" the activities of a violator. It can be distinguished from contributory liability, another form of secondary liability, which is rooted in the tort theory of enterprise liability because, unlike contributory infringement, knowledge is not an element of vicarious liability. The law has developed the view that some relationships by their nature require the person who engages others to accept responsibility for the wrongdoing of those others. The most important such relationship for practical purposes is that of employer and employee.

MGM Studios, Inc. v. Grokster, Ltd., 545 U.S. 913 (2005), is a United States Supreme Court decision in which the Court unanimously held that defendant peer-to-peer file sharing companies Grokster and Streamcast could be sued for inducing copyright infringement for acts taken in the course of marketing file sharing software. The plaintiffs were a consortium of 28 of the largest entertainment companies.

<i>A&M Records, Inc. v. Napster, Inc.</i>

A&M Records, Inc. v. Napster, Inc., 239 F.3d 1004 (2001) was a landmark intellectual property case in which the United States Court of Appeals for the Ninth Circuit affirmed the ruling of the United States District Court for the Northern District of California, holding that defendant, peer-to-peer (P2P) file-sharing service Napster, could be held liable for contributory infringement and vicarious infringement of the plaintiffs' copyrights. This was the first major case to address the application of copyright laws to peer-to-peer file-sharing.

Secondary liability, or indirect infringement, arises when a party materially contributes to, facilitates, induces, or is otherwise responsible for directly infringing acts carried out by another party. The US has statutorily codified secondary liability rules for trademarks and patents, but for matters relating to copyright, this has solely been a product of case law developments. In other words, courts, rather than Congress, have been the primary developers of theories and policies concerning secondary liability.

Enterprise liability is a legal doctrine under which individual entities can be held jointly liable for some action on the basis of being part of a shared enterprise. Enterprise liability is a form of secondary liability.

The inducement rule is a test a United States court can use to determine whether liability for copyright infringement committed by third parties could be assigned to the distributor of the device used to commit infringement.

File sharing is the practice of distributing or providing access to digital media, such as computer programs, multimedia, documents or electronic books. It involves various legal aspects as it is often used to exchange intellectual property that is subject to copyright law or licensing.

<i>Perfect 10, Inc. v. Amazon.com, Inc.</i>

Perfect 10, Inc. v. Amazon.com, Inc., 508 F.3d 1146 was a case in the United States Court of Appeals for the Ninth Circuit involving Perfect 10, Inc., Amazon.com, Inc. and Google, Inc. The court held that Google's framing and hyperlinking as part of an image search engine constituted a fair use of Perfect 10's images because the use was highly transformative, overturning most of the district court's decision.

Perfect 10, Inc. v. Visa Int'l Serv. Ass'n is a court case in which the pornography magazine Perfect 10 filed a complaint against Visa and MasterCard for copyright infringement and trademark infringement.

<i>Religious Technology Center v. Netcom On-Line Communication Services, Inc.</i>

Religious Technology Center v. Netcom On-Line Communication Services, Inc., 907 F. Supp. 1361, is a U.S. district court case about whether the operator of a computer bulletin board service ("BBS") and Internet access provider that allows that BBS to reach the Internet should be liable for copyright infringement committed by a subscriber of the BBS. The plaintiff Religious Technology Center ("RTC") argued that defendant Netcom was directly, contributorily, and vicariously liable for copyright infringement. Netcom moved for summary judgment, disputing RTC's claims and raising a First Amendment argument and a fair use defense. The district court of the Northern District of California concluded that RTC's claims of direct and vicarious infringement failed, but genuine issues of fact precluded summary judgment on contributory liability and fair use.

Hotfile File hosting website

Hotfile was a one-click file hosting website founded by Hotfile Corp in 2006 in Panama City, Panama. On December 4, 2013, Hotfile ceased all operations, the same day as signing a $4 million settlement with the Motion Picture Association of America (MPAA); the settlement had previously been misreported as $80 million.

<i>Gershwin Publishing Corp. v. Columbia Artists Management, Inc.</i>

Gershwin Publishing Corp. v. Columbia Artists Management, Inc., 443 F.2d 1159, was a copyright infringement case in which the United States Court of Appeals for the Second District ruled that defendant Columbia Artists Management, Inc. was liable for vicarious copyright infringement and contributory copyright infringement. Plaintiff American Society of Composers, Authors and Publishers ("ASCAP"), on behalf of Gershwin Publishing Corp., sued Columbia Artists Management, Inc. ("CAMI") on the premise that CAMI had no permission to use a song from its repertory for a public, for-profit concert in which artists managed by CAMI performed. The final court decision established that contributory infringement can still be liable for copyright infringement if the party has knowledge of the violating activity, whether or not they are directly involved in the violation.

<i>Arista Records LLC v. Lime Group LLC</i>

Arista Records LLC v. Lime Group LLC, 715 F. Supp. 2d 481, is a United States district court case in which the Southern District of New York held that Lime Group LLC, the defendant, induced copyright infringement with its peer-to-peer file sharing software, LimeWire. The court issued a permanent injunction to shut it down. The lawsuit is a part of a larger campaign against piracy by the Recording Industry Association of America (RIAA).

Playboy Enterprises, Inc. v. Starware Publishing Corp. 900 F.Supp. 433 was a case heard before the United States District Court for the Southern District of Florida in May 1995. The case revolved around the subject of copyright infringement and exclusive rights in copyrighted works. Plaintiff Playboy Enterprises filed a motion for partial summary judgment of liability of copyright infringement against defendant Starware Publishing Corporation. Specifically, Playboy Enterprises ("PEI") argued that Starware's distribution of 53 of Playboy's images, taken from an online bulletin board, and then sold on a CD-ROM, infringed upon PEI's copyrights. The case affirmed that it was copyright infringement, granting Playboy Enterprises the partial summary judgment. Most importantly, the case established that "The copyright owner need not prove knowledge or intent on the part of the defendant to establish liability for direct copyright infringement."

<i>Columbia Pictures Industries, Inc. v. Fung</i>

Columbia Pictures Industries, Inc. v. Fung 710 F.3d 1020 No. 10-55946, was a United States Court of Appeals for the Ninth Circuit case in which seven film studios including Columbia Pictures Industries, Inc., Disney and Twentieth Century Fox sued Gary Fung, the owner of isoHunt Web Technologies, Inc., for contributory infringement of their copyrighted works. The panel affirmed in part and vacated in part the decision of United States District Court for the Central District of California that the services and websites offered by isoHunt Web Technologies allowed third parties to download infringing copies of Columbia's works. Ultimately, Fung had "red flag knowledge" of the infringing activity on his systems, and therefore IsoHunt was held ineligible for the Digital Millennium Copyright Act § 512(c) safe harbor.

Contributory copyright infringement is a way of imposing secondary liability for infringement of a copyright. It is a means by which a person may be held liable for copyright infringement even though he or she did not directly engage in the infringing activity. In the United States, the Copyright Act does not itself impose liability for contributory infringement expressly. It is one of the two forms of secondary liability apart from 'vicarious liability'. Contributory infringement is understood to be a form of infringement in which a person is not directly violating a copyright but, induces or authorises another person to directly infringe the copyright.

References

  1. ↑ Elektra Records Co. v. Gem Electronic Distributors, Inc., 360F. Supp.821 ( E.D.N.Y. 1973).
  2. 1 2 3 4 Jane Ginsburg, "Secondary Liability for Copyright Infringement in the U.S.: Anticipating the Aprés-Grokster", found at Secondary Liability for Copyright Infringement in the US, from Columbia Law School website Archived 2006-09-14 at the Wayback Machine . Retrieved December 13, 2008.
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