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N.Y. Court Weighs Guilt Of Grooveshark, MP3tunes Founders
The Southern District of New York's U.S. District Court gave record labels a thorough victory against the corporate parent and two co-founders of the music website Grooveshark on Sept. 29. In addition to providing a readable history of illegal shortcuts the site took to grow quickly, the decision granted plaintiffs' motion for summary judgment on direct copyright infringement and the major varieties of secondary infringement — vicarious liability, inducement and contributory infringement. The co-founders were found liable for uploading infringing tracks, pressuring employees to do the same or else provide the officers with "anything … filled with music," as well as failing to preserve evidence of their actions. The lawsuit now proceeds to consider the scope of the permanent injunction expected to be issued against Grooveshark. Separately, on Sept. 29 in the same court, the jury award against Michael Robertson for $7.5 million in punitive damages for willful blindness to infringement while operating MP3tunes was alternatively reduced to either $750,000 or a new trial restricted to the size of the punitive damages. In addition to providing helpful guidance for future courts, the ruling found two aspects of this lawsuit problematic. First, the punitive damages were largely based on pre-1972 tracks governed by New York state law, a unique circumstance that lacks a substantial body of guiding precedent. Second, Robertson, whose name has since been changed to Michael Hammer, seems to have inspired the jury with a desire to punish him that was not adequately supported by the evidence. The judge described Robertson's storytelling about his name change as a "mystic transport" and said, "This court observed Robertson's demeanor on the witness stand. No transcript can capture his whole affect; you really had to be there."
CISAC Creators Hit WIPO With Their Best Shot
On Oct. 1 the World Intellectual Property Organization concluded their weeklong 54th Assemblies gathering in Geneva, with fresh plans for the future and new input from a panel of artists representing CISAC — the International Confederation of Societies of Authors and Composers. The week opened with the inauguration of WIPO's new conference hall on Sept. 22, which included musical performances and a call to action from French composer and CISAC President Jean Michel Jarre. "Creators around the world depend on rights and policies that protect their interests and guarantee a fair remuneration for them," said Jarre. "WIPO is where such rights and policies are discussed and agreed internationally. As President of CISAC, I call upon all WIPO member states to recognize the importance of creativity." The discussion of fairness for creators continued at a Sept. 23 panel, the first time WIPO has ever invited members of music's creative community to present to the nearly 1,000 participants assembled to represent its 187 member nations. Canadian musician Eddie Schwartz — who wrote Pat Benatar's 1980 Top 10 hit "Hit Me With Your Best Shot" — spoke repeatedly on the issue of fairness. "If the revenues don't flow back to creators, while the shareholders and CEOs of companies who deny the value of music enjoy literally billions in profits, surely something is terribly wrong," said Schwartz, addressing attendees alongside Jarre and creative artists from India, Israel and Senegal. The repeated emphasis on fairness as a guiding approach was in tune with testimony delivered before the U.S. House of Representatives in June by The Recording Academy's President/CEO Neil Portnow. The Assemblies endorsed WIPO's new senior management team, as Director General Francis Gurry begins his second term of six years, and supported the work of the Advisory Committee on Enforcement, which is tasked with building international respect for intellectual property. Notably, the delegates were unable to agree on what the normative path ahead should be for the Standing Committee on Copyright and Related Rights, one of several stalemates that caused Gurry to "urge all delegations to reflect."
California Toughens Antipiracy Law For Flea Market Flash Drives
Gov. Jerry Brown signed AB 2122 into California state law on Sept. 30, imposing a stricter criminal definition of what constitutes the illegal sale of digital storage devices loaded with music. Originally introduced by Assemblyman Raul Bocanegra, the bill changes the criminal threshold from 100 "articles" such as memory cards or CDs to 100 recordings sold without disclosing required descriptive information, even if the tracks are stored on a single device. "In an era of flash drives and memory sticks, which can store hundreds, if not thousands, of unauthorized audio or visual recordings on a single device, AB 2122 will provide law enforcement with the necessary tools to continue the fight against media piracy," said Bocanegra.
The Recording Academy actively represents the music community on such issues as intellectual property rights, music piracy, archiving and preservation, and censorship concerns. In pursuing its commitment to addressing these and other issues, The Recording Academy undertakes a variety of national initiatives. ArtsWatch is a key part of an agenda aimed at raising public awareness of and support for the rights of artists. To become more involved, visit Advocacy Action @ GRAMMY.com and sign up for Advocacy Action E-lerts.