Weekly Summaries Distributed December 26, 2014
- Music Choice v. Copyright Royalty Bd.
Communications Law, Copyright, Entertainment & Sports Law, Intellectual Property
U.S. Court of Appeals for the District of Columbia Circuit
- Isbell v. DM Records, Inc.
Constitutional Law, Copyright, Entertainment & Sports Law, Intellectual Property
U.S. Court of Appeals for the Fifth Circuit
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| Court: U.S. Court of Appeals for the District of Columbia CircuitDocket: 13-1174 | Opinion Date: December 19, 2014 |
| Areas of Law: Communications Law, Copyright, Entertainment & Sports Law, Intellectual Property |
“Musical work” and the owner’s exclusive right to perform the work in public are protected by 17 U.S.C. 106(4). Broadcast of a musical work is a performance and requires a license from the copyright owner. Copyright Act amendments afford the copyright owner of a sound recording “the narrow but exclusive right ‘to perform the copyrighted work publicly by means of a digital audio transmission.’” The law requires “certain digital music services . . . to pay recording companies and recording artists when they transmit sound recordings” and provides for appointment of three Copyright Royalty Judges. If sound recording copyrights owners are unable to negotiate a royalty with digital music services, the Judges may set reasonable rates and terms. The Judges set royalty rates and defined terms for statutorily defined satellite digital audio radio services (SDARS) and preexisting subscription services (PSS). SoundExchange, which collects and distributes royalties to copyright owners, argued that the Judges set rates too low and erred in defining “Gross Revenues” and eligible deductions for SDARS. A PSS that provides music-only television channels appealed, arguing that PSS rates were set too high. The D.C. Circuit affirmed, concluding that the Judges of the Board acted within their broad discretion and on a sufficient record.
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| Court: U.S. Court of Appeals for the Fifth Circuit Docket: 13-40878 | Opinion Date: December 18, 2014 |
| Areas of Law: Constitutional Law, Copyright, Entertainment & Sports Law, Intellectual Property |
This appeal stemmed from litigation regarding the ownership of the composition copyright to the song Whoomp! (There It Is), writen and produced by Tag Team. The district court concluded that plaintiff owned the copyright and DM Records was liable for copyright infringement, and the jury awarded $2 million in damages. DM Records appealed on several grounds. In regards to DM Record's arguments related to the district court's interpretation of the Recording Agreement as assigning a single fifty percent interest to Alvert Music, the court concluded that none of the pieces of allegedly conflicting evidence cited by DM Records presents a factual issue, and Bellmark Records waived its right to bring a Rule 50(b) motion by not raising its second argument at trial. In regards to DM Records' challenge to the district court's denial of its Rule 60(b) motion for relief from judgment based on fraud and lack of standing, DM Records is not entitled to Rule 60(b) relief on the basis of the allegedly withheld Security Agreement because standing is determined at the time of suit and the 2006 Security Agreement does not establish that plaintiff did not own the copyright in 2002 when he commenced the suit. The court also concluded that the district court did not plainly err in instructing the jury and that the jury could have determined that plaintiff was properly awarded 100 percent of the royalties from which it could pay Tag Team its share. Finally, it was not plain error for the district court to allow plaintiff's closing statement and not to grant DM's motion for a new trial. Accordingly, the court affirmed the judgment.
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