Broadcast Music, Inc. et al v. Haibo, Inc. et al
Filing
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DECISION AND ORDER GRANTING Plaintiffs' 21 Motion for Summary Judgment; AWARDING Plaintiffs $2,500 for each of the eight instances of copyright infringement, totaling $20,000; ENJOINING Defendants, their officers, employees, and agen ts, from publicly performing, allowing, or causing to be publicly performed the musical compositions licensed by BMI without lawful authorization; DIRECTING the Clerk of the Court to take the steps necessary to close this case. Signed by William M. Skretny, Chief Judge U.S.D.C. on 3/12/2012. (MEAL)
UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NEW YORK
BROADCAST MUSIC, INC., et al.,
Plaintiffs,
v.
DECISION AND ORDER
10-CV-240S
HAIBO, INC., d/b/a YINGS WINGS THINGS
and HAIBO L. JIANG, individually
Defendants.
I. INTRODUCTION
Plaintiffs, Broadcast Music Inc., (“BMI”) and several other entities holding music
copyrights, bring this action against Haibo, Inc., doing business as Yings Wings Things
(“Yings”), and its sole shareholder and director, Haibo L. Jiang for alleged violations of the
United States Copyright Act of 1976, 17 U.S.C. § 101 et seq. (the “Copyright Act”).
Presently before this Court is Plaintiffs’ motion for summary judgment. (Docket No. 21.) For
the following reasons, that motion is granted.
II. BACKGROUND
A.
Facts1
The facts of this case are brief and mostly undisputed. BMI is a “performing rights
licensing society,” meaning that it licenses the right to publicly perform copyrighted musical
compositions on behalf of the copyright owners of those works. (Plaintiffs’ Statement, ¶ 1;
1
This Court has accepted facts in Plaintiffs’ statem ent of facts to the extent that they have not
been controverted by Defendants. See Local Rule 56(a)(2) (statem ents not specifically controverted are
deem ed adm itted).
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Docket No. 21-3.) It grants music users – like broadcasters, music halls, bars, and night
clubs – the right to publicly perform any of the works in BMI’s repertoire, which includes
songs from each of the other plaintiffs in this action. (Id., ¶ 3, 4)
According to BMI, it sent 26 letters and made 90 phone calls to Haibo Jiang
informing him that he needed to retain a licensing agreement before its songs could be
performed at Yings. (Id., ¶ 19.) However, Haibo Jiang, who is the sole shareholder of
Haibo, Inc., which in turn owns and operates Yings, a bar and restaurant in Tonawanda,
New York, ignored these entreaties and did not enter into a licensing agreement with BMI
nor any of the plaintiffs. (Id., ¶ 12.)
It is undisputed that on November 14 and15, 2009, BMI sent a “logger” – a BMI
authorized agent whose duty is to record unlicenced performances – to Yings to determine
if Haibo was violating its members’ copyrights. The logger, Michael Nelson, heard three
songs publicly performed, “Landslide,” “Travelin’ Soldier,” and “Play Something Country,”
which required a license that Haibo did not have. (Id., ¶ 15.) Plaintiffs also claim that on
December 22 and 23, 2009, BMI’s logger, Mitchell Greco, heard five other songs that it
owned the licensing rights to: “Can’t Take My Eyes Off of You,” “Piece of My Heart,”
“Sympathy for the Devil,” “Glycerine,” and “Do You Realize.”2 (Id., ¶ 16.)
B.
Procedural History
Plaintiffs filed a complaint in this Court on March 22, 2010. (Docket No. 1.)
Defendants answered on April 30, 2010. (Docket No. 8.) Thereafter, Plaintiffs moved for
2
It appears that BMI sent loggers to Yings on only two occasions, but BMI identifies each occasion
with two calender days because the loggers stayed past m idnight on Novem ber 14 and Decem ber 22. For
the sake of clarity and concision, this Court will hereupon refer only to the date on which the loggers first
arrived at Yings.
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summary judgment on March 18, 2011. (Docket No. 21.) After briefing, which concluded
on May 16, 2011, this Court took the motion under consideration without oral argument.
III. DISCUSSION
A.
Summary Judgment Standard
Rule 56 of the Federal Rules of Civil Procedure provides that “[t]he court shall grant
summary judgment if the movant shows that there is no genuine dispute as to any material
fact and the movant is entitled to judgment as a matter of law.” A fact is “material” only if
it “might affect the outcome of the suit under governing law.” Anderson v. Liberty Lobby,
Inc., 477 U.S. 242, 248, 106 S. Ct. 2505, 2510, 91 L. Ed. 2d 202 (1986). A “genuine”
dispute exists “if the evidence is such that a reasonable jury could return a verdict for the
non-moving party.” Id. In determining whether a genuine dispute regarding a material fact
exists, the evidence and the inferences drawn from the evidence “must be viewed in the
light most favorable to the party opposing the motion.” Adickes v. S. H. Kress & Co., 398
U.S. 144, 158–59, 90 S. Ct.1598, 1609, 26 L. Ed. 2d 142 (1970) (internal quotations and
citation omitted).
“Only when reasonable minds could not differ as to the import of evidence is
summary judgment proper.” Bryant v. Maffucci, 923 F.2d 979, 982 (2d Cir. 1991) (citation
omitted). Indeed, “[i]f, as to the issue on which summary judgment is sought, there is any
evidence in the record from which a reasonable inference could be drawn in favor of the
opposing party, summary judgment is improper.” Sec. Ins. Co. of Hartford v. Old Dominion
Freight Line, Inc., 391 F.3d 77, 82-83 (2d Cir. 2004) (citations omitted). The function of the
court is not “to weigh the evidence and determine the truth of the matter but to determine
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whether there is a genuine issue for trial.” Anderson, 477 U.S. at 249.
B.
Plaintiffs’ Motion for Summary Judgment
To establish its claim of copyright infringement in this context, a plaintiff generally
must establish: (1) ownership of a valid copyright; and (2) unauthorized performance of the
compositions involved. See Feist Publ’ns, Inc. v. Rural Tele. Serv. Co., 499 U.S. 340, 361,
111 S. Ct. 1282, 113 L. Ed. 2d 358 (1991); Shapiro, Bernstein & Co. v. H.L. Green Co.,
316 F.2d 304, 307 (2d Cir.1963); 17 U.S.C. § 106. Plaintiffs argue that no genuine issue
of material fact exists as to its claim that Defendants violated its copyrights. It submits
several declarations in support of this position.
First, Kerri Howland-Kruse, Assistant Vice President at BMI, attests that BMI owns
the right to issue public-performance license agreements to music users for all eight songs
identified in the complaint. (Howland-Kruse Declaration, ¶ 5; Docket No. 21-2.) She also
attaches to her declaration copies of the copyright registration and agreements between
BMI and the copyright owners. (Exhibits A-H to the Howland-Kruse Declaration.)
Second, BMI submits the declaration of Lawrence Stevens, Assistant Vice President
of General Licensing for BMI, who testifies that Haibo, Inc. does not have a licensing
agreement with BMI and that Michael Nelson and Mitchell Greco were authorized by BMI
to attend Yings to listen for potential violations. (Stevens Declaration, ¶¶ 9,11; Docket No.
21-1.) Attached to his declaration are the loggers “infringement reports,” which were
certified under 28 U.S.C. § 1746.3 (Id., ¶ 11; Corrected Exhibit A to Stevens Declaration;
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That statute, in pertinent part, provides:
W herever, under any law of the United States or under any rule,
regulation, order, or requirem ent m ade pursuant to law, any m atter is
required or perm itted to be supported, evidenced, established, or proved
by the sworn declaration, verification, certificate, statem ent, oath, or
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Docket No. 33.) Those reports note that the eight songs alleged to have been played were
in fact played on the dates indicated in the complaint. (Id.) Stevens also testifies and
attaches records indicating that: (1) BMI sent numerous notices to Haibo concerning the
need to acquire a licensing agreement; and later, on several occasions, (2) BMI notified
Haibo of the investigation into Yings. (Stevens Declaration, ¶¶ 4-8, 12-14.) BMI received
no response to this correspondence. (Id., ¶ 12.)
Haibo concedes Plaintiffs’ claim regarding the three songs played on November 14,
but argues that Plaintiffs do not have admissible evidence supporting their claim regarding
the five remaining songs. Thus, they argue, not only should Plaintiffs’ motion be denied on
those songs, but this Court should enter summary judgment in their favor instead.
Further, although it concedes the three violations, it argues that Plaintiffs’ requested
damages of $3,000 per song is excessive. Instead, it asks this Court to apply a $2,000
award for each admitted violation.
1.
Five Disputed Songs
It is undisputed that Mitchell Greco took notes on his phone while in Yings on
December 22, 2009, in which he identified and recorded each song played in the bar.
affidavit, in writing of the person m aking the sam e (other than a
deposition, or an oath of office, or an oath required to be taken before a
specified official other than a notary public), such m atter m ay, with like
force and effect, be supported, evidenced, established, or proved by the
unsworn declaration, certificate, verification, or statem ent, in writing of
such person which is subscribed by him , as true under penalty of perjury,
and dated, in substantially the following form :
“I declare (or certify, verify, or state) under penalty of perjury that the
foregoing is true and correct. Executed on (date).
(Signature)”.
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Because he admits to working from those notes when completing the “certified
infringement report,” Defendants argue that those notes, which have since been destroyed
or lost, are the “best evidence” under Federal Rule of Evidence (“FRE”) 1002.
FRE 1002 provides that “[a]n original writing, recording, or photograph is required
in order to prove its content”; Defendants therefore argue that this rule bars the admission
of the Mitchell infringment report because the notes, not the later-drafted report, constitute
the “original writing” under FRE 1002. Continuing this line of argument, they posit that
without the report, Plaintiffs have no admissible evidence to support their claim regarding
the five songs allegedly played on December 22, 2009.
But Defendants’ argument ultimately fails. Initially it must be noted that the report,
which was sworn to under penalty of perjury and thus serves as an affidavit, need not be
admissible itself. See Santos v. Murdock, 243 F.3d 681, 684 (2d Cir. 2001). Rather, it need
only “contain evidence that will be presented in an admissible form at trial.” Id.; see also
Fed. R. Civ. P. 56(c)(4). Here, Plaintiffs have presented a document containing admissible
evidence because Greco has personal knowledge, independent of the notes he created
that night, of the songs that were played: Greco was at Yings and heard the songs in
question being played himself. At trial, he would therefore not be attempting to prove the
contents of his notes, but simply drawing on his personal knowledge of that night. See FRE
602 (“A witness may testify to a matter only if evidence is introduced sufficient to support
a finding that the witness has personal knowledge of the matter”); see also Dean v. N.Y.
Marriott Fin. Ctr. Hotel & Marriott Int'l, 94 Civ. 4343 (TPG), 1998 WL 574382, at *5
(S.D.N.Y. Sept. 8, 1998) (best evidence rule does not apply where witness is not
attempting to prove the contents of a writing); United States v. Finkielstain, 718 F. Supp.
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1187, 1192 (S.D.N.Y. 1989) (“As to the best evidence rule, that canon requires the
production of a document to prove its content when a witness testifies on the issue of what
that document contains. It does not require production of a document simply because the
document contains facts that are also testified to by a witness.”).4
Moreover, even if FRE 1002 were to apply, the admission of the report would be
permissible under FRE 1004, which provides that “an original is not required . . . if . . . all
the originals are lost or destroyed and not by the proponent acting in bad faith.” Defendants
argue to the contrary because Greco deleted the notes after this action had been
commenced. But Greco’s deposition testimony reveals that he deleted the notes as a
matter of course without a hint of bad faith and without knowledge that litigation had been
commenced. When asked if he preserved the notes, Greco responded, “I did for a while.
I usually keep them about nine months. And then, after nine months, I didn’t hear anything
about this, so I went ahead and deleted them.” (Greco Deposition, 14:16-19; Docket No.
28-3.) Because Greco deleted the notes pursuant to routine procedure, there is no reason
for this Court to find that Greco acted in bad faith. See United States v. Harper, No. 05CR-6068, 2009 WL 140125, at *2 (W.D.N.Y. Jan. 20, 2009) (collecting cases that find no
violation of FRE 1002 where original is destroyed pursuant to routine procedure). As such,
the report would not be barred by the best-evidence rule.
Because this is the only argument proffered by Defendants, and it otherwise
4
Nor would the best-evidence rule would be im plicated if Greco were to refresh his m em ory with
his report. See, e.g., 28 Charles Alan W right, Victor Jam es Gold & Michael H. Graham , Federal Practice
and Procedure § 6184 (1st ed. 2011) ("It is frequently stated that anything can be used to refresh the
recollection of a witness. If a writing is em ployed, it is generally agreed that it need not have been
authored by the witness, need not have been m ade contem poraneous with the m atters described therein,
need not be an original, and need not be adm issible or even reliable.").
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concedes liability, Plaintiffs’ motion on this ground is granted.
2.
Statutory Damages
In lieu of actual damages under the Copyright Act, a plaintiff may receive an award
of statutory damages “in a sum of not less than $750 or more than $30,000" per
infringement. 17 U.S.C. § 504(c)(1). If the defendant's infringement was willful, the district
court may also enhance the statutory damages award to as much as $150,000 per
infringed work. Id., at (c)(2). “District courts ‘enjoy wide discretion . . . in setting the amount
of statutory damages.’” Bryant v. Media Right Prods., Inc., 603 F.3d 135, 143 (2d Cir.
2010) (quoting Fitzgerald Pbl'g Co. v. Baylor Pbl'g Co., 807 F.2d 1110, 1115 (2d Cir.1986)).
Indeed, this Court's task is to determine a “just” award, in which “‘the court's ‘discretion and
sense of justice are controlling’ subject only to the specific statutory limits.” Engel v. Wild
Oats, Inc., 644 F.Supp. 1089, 1091 (S.D.N.Y. 1986) (quoting F.W. Woolworth Co. v.
Contemporary Arts, Inc., 344 U.S. 228, 232, 73 S. Ct. 222, 97 L. Ed. 276 (1952)).
Plaintiffs seek a statutory award of $3,000 per infringement, arguing that the
violations were wilful and citing the voluminous mailings and phone calls made to Haibo
Jiang that went unanswered.
Haibo Jiang contends that he considered the mailings “junk mail” and never opened
them. He also claims that he never received the phone calls. Thus, he argues that the
violations were not wilful and asks this Court to apply a $2,000-per-infringement award.
But “[u]nder the Copyright Act, there is no need for an infringer to act willfully for it
to be sanctioned” under § 504(c)(1). Island Software & Computer Serv., Inc. v. Microsoft
Corp., 413 F.3d 257, 265 (2d Cir. 2005). When determining the amount of statutory
damages to award for copyright infringement, courts may consider: “(1) the infringer's state
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of mind; (2) the expenses saved, and profits earned, by the infringer; (3) the revenue lost
by the copyright holder; (4) the deterrent effect on the infringer and third parties; (5) the
infringer's cooperation in providing evidence concerning the value of the infringing material;
and (6) the conduct and attitude of the parties.” Bryant, 603 F.3d at 144.
Although this Court does not have all the information necessary to examine each
of these factors, understanding that these are simply suggested considerations and the
fact that the parties are only $1,000 apart on a scale of $750 to $150,000, this Court finds
that it can capably make an award determination based on the information before it.
This Court finds that the first factor listed above proves most helpful in this case.
BMI has attached numerous, properly addressed letters that it sent to Haibo Jiang at the
Yings address.
Jiang claims to have discarded each of these letters as mere
“solicitations.” While that may have been true in the beginning, the letters soon taken a
different tenor and contained accusations that Jiang was playing music without the
necessary licensing agreement. As a business owner, Jiang should have took these letters
seriously and dealt with them in an responsible manner. This is especially true after BMI’s
investigation into Yings, when BMI tried repeatedly to warn him that it had proof that his
actions violated copyright law and offered to resolve the matter if Jiang entered into a
licensing agreement. But instead of responding to the letters or entering into a contract, he
recklessly discarded the letters and blithely continued to play copyrighted songs in
contravention of the law. This demonstrates a “willful blindness” towards BMI’s rights that
suggests that a higher statutory award is appropriate. See Island Software, 413 F.3d at
263.
However, even in the cases cited by Plaintiffs in their supporting memorandum, only
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two courts awarded damages higher than $2,500. See, e.g., Broad. Music Inc., v. Spring
Mount Area Bavarian Resort, Ltd., 555 F. Supp. 2d 537, 544-45 (E.D. Pa. 2008) (awarding
$2,000 per violation). One of those cases is significantly distinguishable because the
defendant was a radio station, not a local bar. Dream Dealers Music v. Parker, 924 F.
Supp 1146, 1153 (S.D. Ala. 1996).
The facts In Spring Mount neatly align with this case. There, BMI brought an action
based on the reports of its logger, Michael Nelson, who found that a local bar was playing
music without a copyright licensing agreement. Defendants defaulted and the court
awarded BMI $2,000 for each infringement. Considering this unbinding, but persuasive
precedent and also weighing Jiang’s willful ignorance, this Court finds that an award of
$2,500 per violation is reasonable and just. Such an award, in this Court’s discretion, will
adequately serve the compensatory, punitive, and deterrent purposes of the statute. See
Fitzgerald Pub. Co., 807 F.2d at 1117 (describing the compensatory and punitive damages
aspect of a statutory award); see also Bryant, 603 F.3d at 144 (fourth factor).
3.
Permanent Injunction
Among the relief that Plaintiffs seek is a permanent injunction barring Defendants
from future copyright violations.5 The Copyright Act authorizes a court to grant a permanent
injunction “on such terms as [the court] may deem reasonable to prevent or restrain
infringement of a copyright.” 17 U.S.C. § 502(a). Permanent injunctions are routinely
awarded in favor of copyright owners whose protected works have been misappropriated
in order to serve the public's interest in upholding copyright protections. Interscope
5
Defendants do not contest this request.
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Records v. Owusu, No. 5:05-CV-0102, 2007 WL 2343676, at *3 (N.D.N.Y. Aug. 13, 2007)
(citing Autoskill Inc. v. Nat'l Educ. Support Sys., Inc., 994 F.2d 1476, 1499 (10th Cir. 1993),
overruled on other grounds by TW Telecom Holdings Inc. v. Carolina Internet Ltd., 661
F.3d 495 (10th Cir. 2011)).
Here, the uncontroverted testimony of BMI's investigators establishes that
Defendants infringed Plaintiffs' copyrights. It further establishes that Defendants willfully
disregarded any attempt by BMI to enter into a licensing agreement and thereby comply
with the law. Plaintiffs therefore should be granted a permanent injunction against
unauthorized public performances of any copyrighted compositions licensed through BMI.
See Broad. Music, Inc. v. R Bar of Manhattan, Inc., 919 F. Supp. 656, 659 (S.D.N.Y. 1996)
(granting BMI a permanent injunction on similar facts); accord Broad. Music, Inc. v. Niro’s
Palace, Inc., 619 F. Supp. 958, 963 (N.D. Ill. 1985) (awarding permanent injunction where
local bar “provided unauthorized performances of copyrighted musical compositions on its
premises after receiving oral and written notices of infringement and demands to stop such
infringement from BMI”).
IV. CONCLUSION
For the foregoing reasons, Plaintiffs’ motion for summary judgment is granted, they
are awarded $2,500 per each of the eight infringements, and Defendants are enjoined from
further infringing Plaintiffs’ rights under federal or state copyright law.6
Further, because it is undisputed that Haibo Jiang has the right and ability to
supervise infringing copyright activities and a direct financial interest in such activities,
6
Although BMI initially requested attorney fees and costs, the parties have agreed to defer this
issue until after resolution of the m otion for sum m ary judgm ent. (See BMI’s Reply Mem orandum , p. 10;
Docket No. 34-2.)
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Haibo, Inc. and Haibo Jiang are jointly and severally liable for the infringements under the
Copyright Act. Sygma Photo News, Inc. v. High Soc. Magazine, Inc., 778 F.2d 89, 92 (2d
Cir.1985) (“All persons and corporations who participate in, exercise control over, or benefit
from the infringement are jointly and severally liable as copyright infringers.”).
V. ORDERS
IT HEREBY IS ORDERED, that Plaintiffs’ Motion for Summary Judgment (Docket
No. 21) is GRANTED.
FURTHER, that Plaintiffs are awarded $2,500 for each of the eight instances of
copyright infringement, totaling $20,000.
FURTHER, that Defendants, their officers, employees, and agents, are enjoined
from publicly performing, allowing, or causing to be publicly performed the musical
compositions licensed by BMI without lawful authorization.
FURTHER, that the Clerk of the Court is directed to take the steps necessary to
close this case.
SO ORDERED.
Dated:
March 12, 2012
Buffalo, New York
/s/William M. Skretny
WILLIAM M. SKRETNY
Chief Judge
United States District Court
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