Justia U.S. D.C. Circuit Court of Appeals Opinion Summaries

IPG, an agent for royalty claimants in these proceedings, filed suit challenging Copyright Royalty Judges' denial of most of its clients' royalty fee claims for programming in the devotional and program suppliers' categories that was retransmitted by cable during specific years. IPG lost the right to pursue many of its clients' claims as a result of a discovery sanction and ultimately failed to establish for certain claims that it was a duly appointed agent pressing valid claims.The DC Circuit affirmed the Judges' decisions as to IPG's challenge to the revocation of the presumption of validity where the Judges did not abuse their discretion in withholding the presumption based on false testimony and where IPG received constitutionally adequate due process; affirmed as to IPG's challenge to the imposition of discovery sanctions where the sanction, while harsh, was not arbitrary and capricious and did not violate due process; and affirmed as to IPG's challenge to the final distribution of royalties where the Judges' distribution methodology decisions were well within a zone of reasonableness. View "Independent Producers Group v. Copyright Royalty Board" on Justia Law

IMAPizza, which operates the "&pizza" chain of restaurants in the United States, filed suit under the Copyright and Lanham Acts as well as D.C. common law against At Pizza, operator of the "@pizza" restaurant in Edinburgh, Scotland.The DC Circuit affirmed the district court's dismissal of IMAPizza's Copyright and Lanham Act claims, holding that IMAPizza failed to state a claim under the Copyright Act because it did not allege an act of copyright infringement in the United States. The court declined to extend the Copyright Act beyond its territorial limits lest U.S. law be used to sanction what might be lawful conduct in another country. The court also held that IMAPizza failed to state a claim under the Lanham Act because it failed to allege some plausible effect — let alone a significant or substantial effect — upon U.S. commerce. Finally, the court held that IMAPizza's trespass claim fails for want of any unauthorized entry into its restaurants, and the district court did not abuse its discretion in denying IMAPizza's motions for leave to file a surreply and to exercise supplemental jurisdiction over the U.K.'s "passing off" claim. View "Imapizza, LLC v. At Pizza Limited" on Justia Law

Plaintiffs challenged the Copyright Royalty Board's most recent determination for rates noninteractive webcasters must pay to play recordings over the Internet under a statutory copyright license. The DC Circuit sustained the Board's determinations in all respects and held that the Board's acceptance of the Pandora and iHeart benchmark agreements was not arbitrary and capricious; the court applied Chevron deference to the Board's adjustment downward of SoundExchange's proposed benchmark; the Board adequately and reasonably explained its decision to set different rates for ad-based and subscription noninteractive webcasting services; and the court rejected SoundExchange's challenge concerning the Board's decision to amend a license term setting forth the requirements to qualify as an auditor that can verify royalty payments. Finally, the Board rejected a pro se appellant's challenge concerning the constitutionality of the Board's determination. View "SoundExchange, Inc. v. Copyright Royalty Board and Librarian of Congress" on Justia Law

The district court granted summary judgment to the Standards Developing Organizations (SDOs) on their claims of direct copyright infringement, finding that they held valid and enforceable copyrights in the incorporated standards that PRO had copied and distributed, and that PRO had failed to create a triable issue of fact that its reproduction qualified as fair use under the Copyright Act. The district court also concluded that ASTM was entitled to summary judgment on its trademark infringement claims, and issued permanent injunctions prohibiting PRO from all unauthorized use of the ten standards identified in the summary judgment motions and of ASTM's registered trademarks.The DC Circuit reversed and held that the district court erred in its application of both fair use doctrines. The court remanded for the district court to develop a fuller record regarding the nature of each of the standards at issue, the way in which they were incorporated, and the manner and extent to which they were copied by PRO in order to resolve this mixed question of law and fact. View "American Society for Testing v. Public.Resource.Org, Inc." on Justia Law

Where a foreign broadcaster uploads copyrighted content to its website and directs that content onto a computer screen in the United States at a user's request, the broadcaster commits an actionable domestic violation of the Copyright Act. The D.C. Circuit agreed with the district court's finding, based on supportable factual findings, that TV Polska was liable for infringing Spanski's copyrights in fifty-one episodes of certain Polish-language television programs that TV Polska transmitted into the United States via its online video-on-demand system, and concluded that damages of $60,000 per episode were appropriate in light of the circumstances. Therefore, the court affirmed the district court's judgment as to both liability and damages. View "Spanski Enterprises, Inc. v. Telewizja Polska, S.A." on Justia Law

SoundExchange, a nonprofit entity, charged with the responsibility of collecting royalties for performing artists and copyright owners of music, filed suit under the Copyright Act, 17 U.S.C. 101 et seq., against Muzak, a company that supplies digital music channels to satellite television networks who, in turn, sell to subscribers. SoundExchange alleged that Muzak underpaid royalties owed. The district court dismissed the complaint. The court concluded that the better interpretation of the statute is that the term "service" under section 114(j)(11) contemplates a double limitation; both the business and the program offering must qualify before the transmissions are eligible for the favorable rate. Accordingly, the court reversed the district court. View "SoundExchange, Inc. v. Muzak LLC" on Justia Law

Cable operators’ retransmission of religious and devotional programming produced a pool of royalties that Congress charged the Copyright Royalty Judges with distributing to the copyright owners. In this appeal, Devotional Claimants argue that the Royalty Judges wrongly calculated their respective shares by allowing IPG to press claims without proper authority and refusing to accept Devotional Claimants' evidence regarding how the relative value of claims should be calculated. Devotional Claimants claim that, after the Royalty Judges rejected both their and IPG’s proposed methodologies, the Royalty Judges’ final allocation simply split the difference between the two parties, and that decision was arbitrary and capricious and unsupported by substantial evidence. The court agreed with Devotional Claimants' latter claim, concluding that the Royalty Judges are subject to the Administrative Procedure Act (APA), 5 U.S.C. 706. The court affirmed the Royalty Judges’ procedural rulings resolving which IPG claims could go forward and whether the Devotional Claimants’ methodological evidence could be properly considered. View "Settling Devotional Claimants v. CRB" on Justia Law

IBS, a nonprofit association representing college and high school radio stations, appealed the determination by the Copyright Royalty Board setting royalty rates for webcasting. The court rejected IBS's contention that the Board’s determination violated the Appointments Clause because it was tainted by the previous Board’s decision. The court concluded that the Judges’ determination was an independent, de novo decision by a properly appointed panel seized with the full authority of the prior Board. This court has twice before considered the validity of decisions made after the replacement of an improperly appointed official and both cases support the validity of a subsequent determination when -- as here -- a properly appointed official has the power to conduct an independent evaluation of the merits and does so. Because neither this court’s vacatur order nor any statute bars the procedural approach the Board took on remand, the court rejected Intercollegiate’s claim that the Board’s approach contravened the court's order. The court also rejected IBS's challenge to the Board's determination on the merits because the Board's imposition of a $500 annual minimum fee for all noncommercial webcasters was not arbitrary, capricious, or contrary to law. The court concluded that substantial evidence supports the Board's conclusion and the Board acted reasonably in setting the fee. Accordingly, the court affirmed the judgment. View "Intercollegiate Broadcasting v. CRB" on Justia Law

IPG, representative of several copyright owners in the 2000-03 royalty fee distribution proceeding, alleged that the Board erred in determining IPG's royalty fees in the sports programming and program suppliers categories. As a preliminary matter, the court concluded that the orders at issue are subject to judicial review as part of the Board’s final determination and therefore, the court has jurisdiction to review the merits of the appeal. The court concluded that an evidentiary sanction that the Board imposed during the preliminary evidentiary hearing is not arbitrary and capricious where the Board reasonably responded to a blatant discovery violation by IPG; no basis exists for overturning the Board’s reasoned decision to reject IPG’s sports programming claims on behalf of FIFA and the U.S. Olympic Committee; and the court rejected IPG's contentions that the Board improperly relied on the MPAA's methodology for calculating the relative marketplace value of their claims and allocating royalty fees within the program suppliers category. Accordingly, the court affirmed the judgment. View "Independent Producers Group v. Library of Congress" on Justia Law

“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. View "Music Choice v. Copyright Royalty Bd." on Justia Law