A federal judge has officially placed graduate student Joel Tenenbaum on the line for $675,000 USD, the fine he was given by a jury after being found guilty of sharing 30 unauthorized songs via P2P networks.
Judge Nancy Gertner signed off on the damages, meaning Universal gets $292,500, Warner gets $225,000, Sony BMG gets $112,500 and Arista gets $45,000.
Despite signing off on the giant fine, Judge Gertner once against expressed concern over the “astronomical penalties” available to copyright holders, and noted that Tenenbaum missed out on an opportunity to shape the future of fair use laws.
“As it made clear previously, the Court was prepared to consider a more expansive fair use argument than other courts have credited—perhaps one supported by facts specific to this individual and this unique period of rapid technological change. For example, file sharing for the purposes of sampling music prior to purchase or space-shifting to store purchased music more efficiently might offer a compelling case for fair use. Likewise, a defendant who used the new file-sharing networks in the technological interregnum before digital media could be purchased legally, but who later shifted to paid outlets, might also be able to rely on the defense,” says Gertner.
Tenenbaum has said he will declare bankruptcy leaving the record labels with nothing if the fine is ruled constitutional on January 5th.
Result for: federal judge
The Big 4 record label EMI sued Bluebeat.com this week, claiming the site is selling unauthorized digital copies of the Beatles albums.
The site sells each track for $0.25 but EMI says they have “not authorized content to be sold on Bluebeat.com.”
Bluebeat garnered the attention of the label and curious downloaders because the Beatles tracks have never been officially been digitized, and certainly would not sell for 25 cents when all other tracks on iTunes sell for $1.
Perhaps just as notably, Bluebeat allows for free streaming of some tracks, including those by the Beatles.
Bluebeat, in their defense, say that they actually own the tracks and the copyrights for those tracks. What? MRT, the parent company behind Bluebeat, says they ran the Beatles tracks through psycho-acoustic simulation and added new pictures to the MP3s, thus making them completely new pieces of media. Media of which they own the copyrights for.
For those confused, (everyone), “Psychoacoustic simulations are a synthetic creation of that series of sounds which best expresses the way I believe a particular melody should be heard as a live performance,” says MRT CEO Hank Risan.
Today, a federal judge has ruled in favor of EMI and granted the label a temporary restraining order against Bluebeat and MRT. Judge Walter almost immediately agreed that Bluebeat was not selling new tracks, just copyrighted materials run through “psycho-acoustic simulation.”
The judge also tore apart their other argument of having all new “audio visual work” by saying (via Ars): “However, as one court obviously pointed out. [Defendant] cannot invalidate the copyright of an independent and preexisting sound recording, simply by incorporating that sound recording into an audiovisual work.’”
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Result for: federal judge
On Wednesday a Federal judge granted Verizon’s request for summary judgement, shooting down all of ASCAP’s claims that mobile phone providers should pay public performance royalties for ringtones they sell.
The sale of ringtones already requires the seller to pay mechanical royalties to the publisher (songwriter) and recording artist, just like MP3s or CDs.
ASCAP claimed that when the ringtone is downloaded by a customer or plays when a mobile phone rings it’s a public performance. Because of that they were asking for additional royalties.
The short version of Judge Denise Cote’s ruling is that there is no public performance under US copyright law so there can be no infringement of that right.
The first claim Judge Cote addressed was the transmission of a digital file from mobile provider to the customer’s phone. She pointed out “ASCAP does not contend… that a Verizon customer can actually listen to a ringtone while she is downloading it; it acknowledges that the ringtone cannot be played before the transmission is concluded”
In other words a data download isn’t a performance. She also concluded that because the transmission is sent to a single individual it’s not public by definition.
Expect these points to be revisited in the pending case by ASCAP and BMI over downloads from online music stores like iTunes.
But what about when the phone rings? That was an even easier question to answer.
She wrote “customers do not play ringtones with any expectation of profit. The playing of a ringtone by any Verizon customers in public is thus exempt under 17 U.S.C. § 110(4) and does not require them to obtain a public performance license.”
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