By , September 08, 2011.

Back in June, I wrote about Kernel Records Oy v. Mosley, where a Norwegian chiptune producer sued hip-hop producer Timbaland for allegedly sampling one of his tracks (“Acid Jazzed Evening”) without permission, using it in the track “Do It” by Nelly Furtado.

In somewhat of a twist, the court granted summary judgment in favor of Timbaland since Kernel Records had not timely registered its copyright. Although foreign copyright owners are generally not required by US law to register their copyright with the US Copyright Office as a prerequisite to filing an infringement suit, the magistrate judge noted that the Copyright Act does require registration when the work is published “simultaneously in the United States and another treaty party” — and since the judge found that Kernel had first published its work on the Internet, this amounted to a simultaneous publication that triggered the registration requirement.

Only one other court had previously confronted the issue of whether first publication on the Internet triggers the registration requirement for foreign copyright holders under this statute, and that court held that it doesn’t. 1Moberg v. 33T LLC, 666 F.Supp.2d 415 (D. Dela 2009).

Kernel Records quickly filed a notice of appeal with the Eleventh Circuit and last week filed its appellate brief with the court, embedded below. (Link).

[scribd id=64219598 key=key-2inkrzrc0dgmemzdv4p3 mode=list]

In the well-argued brief, Kernel says that the court’s interpretation of the Copyright Act’s registration requirement was incorrect. It also raises two other issues. It argues that the district court should not have dismissed its claim so quickly for failure to register its copyright — Kernel eventually did register its copyright on March 31, 2011, but the court denied its motion to amend its claim to reflect this fact. Kernel also argues that the court erred in granting summary judgment since there was a factual dispute over whether the work was even first published on the Internet in the first place.

The last point is interesting, as it seems to involve a faulty reading of a transcription from a deposition where two people are speaking at the same time — one of whom doesn’t speak English as his primary language. Kernel raises some policy issues with its second argument that are worth taking a look at. But it’s the first point that seems to me to be the main attraction in this appeal.

While copyright protection automatically vests in a work as soon as it is in a fixed medium, under the US Copyright Act, “no civil action for infringement of the copyright in any United States work shall be instituted until preregistration or registration of the copyright claim has been made in accordance with this title.” 217 USC § 411(a). The Copyright Act states that

For purposes of section 411, a work is a “United States work” only if—

(1) in the case of a published work, the work is first published—
(A) in the United States;

(B) simultaneously in the United States and another treaty party or parties, whose law grants a term of copyright protection that is the same as or longer than the term provided in the United States;

(C) simultaneously in the United States and a foreign nation that is not a treaty party; or

(D) in a foreign nation that is not a treaty party, and all of the authors of the work are nationals, domiciliaries, or habitual residents of, or in the case of an audiovisual work legal entities with headquarters in, the United States 317 USC § 101.

The lower court held that “publishing AJE [Acid Jazzed Evening] on a website in Australia was an act tantamount to global and simultaneous publication of the work, bringing AJE within the definition of a “United States work” under §101(1)(C) and subject to §411(a)’s registration requirement.”

Kernel Record’s first argument in its appeal is that this holding interprets the statute incorrectly.

The statute specifies four ways a published work qualifies as a United States work, three of which are relevant to the inquiry herein. A work is a United States work under Definition 1(A) if it is first published in the United States; under Definition 1(B) if it is first published simultaneously in the United States and a longer-term party or parties; and under Definition 1(C) if it is published in the United States and a non-treaty party. 17 U.S.C. § 101. Definition 1(D) is inapplicable as it is undisputed the author of AJE, Gallefoss, is not a national, domiciliary, or habitual resident of the United States.

Kernel notes that the statutes use of “only” means that these four definitions are exclusive — it notes the familiar interpretive canon of expressio unius est exclusio alterius (“the mention of one thing implies the exclusion of another”). Thus, a work first published simultaneously in the US and a treaty country with a longer copyright term is a US work under (B), but a work simultaneously published in the US and a treaty country with a shorter term — or a work published in the US, a treaty country with a longer term, and a treaty country with a shorter term — is not.

If posting a work online, then, results in “simultaneous global publication”, it does not fall within this definition of a US work. Posting a work on the Internet amounts to publication in every country with Internet access, as Kernel notes. This would include treaty parties with shorter terms, treaty parties with longer terms, and non-treaty parties, and none of the definitions of a US work includes all of these together.

It’s a strong argument, and one that is bolstered by Kernel’s second argument: this interpretation tracks the Berne Convention’s definition of “country of origin” in Article 5(4). The legislative history of the Berne Convention Implementation Act is explicitly clear that it was Congress’s intent to do so. As Kernel points out, “The District Court‘s interpretation unnecessarily creates a conflict between United States law and the very treaty the United States was attempting to implement.”

Given that Kernel Records has solid arguments for this and the other two issues it has raised, I think it’s likely that the Eleventh Circuit will remand back to the lower court, where the litigation will move forward. Mosley has 30 days to file his reply brief.

References

References
1 Moberg v. 33T LLC, 666 F.Supp.2d 415 (D. Dela 2009).
2 17 USC § 411(a).
3 17 USC § 101.
By , September 07, 2011.

Before Operation in Our Sites, there was htmlComics.

Though the US Government’s seizure of over 100 domain names as property facilitating the commission of copyright infringement over the past year has received a lot of attention, the story of htmlComics has mostly stayed out of the limelight (except within the comics community).

The case of htmlComics.com is, as far as I know, the first time a domain name has been forfeited under 18 USC § 2323(a) as property “used, or intended to be used, in any manner or part to commit or facilitate the commission of” criminal copyright infringement. 1I’ve uploaded some of the court filings for this case to Scribd. The rest are available through PACER, or at the RECAP archive. For this reason, it’s worth taking another look at — although the circumstances are very different than the forfeiture case against the Rojadirecta domain names (the only domain name seized during Operation in Our Sites that has been disputed so far).

It’s just like a library

A man by the name of Gregory Hart (no relation) registered the htmlcomics.com domain in December 2008, and shortly after began creating a large library of digitized comic books. The site soon grew to include hundreds of thousands of complete copies of comics, attracting thousands of visitors and plenty of speculation over its legality.

Several online postings by Hart shed some light on his motivations for creating the site. In one, he says he’s never “read even one entire comic book!!!!!!!” and created the site as a sort of proof of concept of a large-scale digitized library project. In another, he asks about legal issues relating to the site, operating under the assumption that his site is no different from any public library.

htmlComics.com quickly attracted the attention of most major comic book publishers. Some sent cease and desist letters, but soon, a consortium of publishers — including Marvel Comics, DC Comics, Dark Horse Comics, Bongo Comics, Archie Comics, Conan Properties Int’l LLC, Mirage Studios Inc., and United Media — enlisted the aid of the FBI.

The Feds Get Involved

The FBI began an investigation of the site and Hart in July 2009. On April 20th, 2010, agents executed a search warrant on Hart’s residence, seizing various paper records and computer equipment. On May 27th, the FBI filed a complaint for forfeiture of the htmlComics.com domain name (along with five related domain names). A warrant for the seizure of the domain names was made the same day.

Like the forfeiture complaints filed against the domain names seized during Operation in Our Sites, 2Along with Rojadirecta, the US has filed a complaint against tvshack.net, movies-link.tv, zml.com, now-movies.com, thepiratecity.org, planetmoviez.com, and filespump.com. the htmlcomics.com complaint alleges that the domain name is subject to forfeiture under 18 USC § 2323(a) because it is property used to facilitate the commission of criminal copyright infringement.

Hart filed a claim as an owner of the domain names and represented himself in the forfeiture proceedings. He filed his answer to the complaint on June 29th, along with several counterclaims against the government. The answer denied any wrongdoing. Hart repeated his assertion that the site was just like any public library:

The presentation of htmlComics.com was not in violation of U.S. Statutory laws. If it is, then so too is every private library within an apartment community, libraries within private clubs, every schoolhouse library, every prison library, and every military base library.

Hart counterclaimed for violations of the First Amendment, Fourth Amendment, Privacy Protection Act (42 USC § 2000AA), and trespass to chattels.

The US moved to dismiss the counterclaims, arguing that they were a “legal nullity” — the defendant in an in rem proceeding is the property, not the claimant, and any claim the claimant may have against the government must be brought in a separate action. As for the constitutional counterclaims, the US further argued that

the only conceivable basis for the Court’s subject matter jurisdiction is Bivens v. Six Unknown Named Agents of the Federal Bureau of Narcotics, 403 U.S. 388 (1971), under which an individual may bring a cause of action “against a federal agent who, while acting under the color of federal law, has violated the constitutional rights of [the] individual. Bivens actions are brought directly under the Constitution, but damages can be obtained only when (1) the plaintiff has no alternative means of obtaining redress, and (2) no “special factors counseling hesitation” are present. In essence, a plaintiff must meet heightened pleading requirements to even pursue a claim under Bivens. Under this standard, the Claimant’s First and Fourth Amendment counterclaims are grossly deficient and must be dismissed.

The court granted the motion to dismiss Hart’s counterclaims. The only success Hart would have came early on, when the court dismissed the claim against one of the six domain names because, unlike the others, it pointed to a blank page.

By January 2011, the US and Hart reached a pretrial settlement agreement, where Hart agreed the remaining five domain names were subject to forfeiture and released any future claims against the US and the FBI. The court entered the final judgment of forfeiture on February 2, 2011.

htmlComics, Operation in Our Sites, and the PROTECT IP Act

The differences between this case and Operation in Our Sites are obvious. This was a singular action, investigated by the FBI, against a specific site while Operation in Our Sites constituted a broader, coordinated enforcement effort by ICE. htmlComics.com hosted infringing content on its own servers while many of the domains seized by ICE, including Rojadirecta, did not host the content themselves — though, under the language of the forfeiture statute, this is not as relevant a distinction as some critics of the operation make it out to be.

It’s the similarities, however, that I find interesting. Both involve the use of 18 USC § 2323 to forfeit the domain names of websites aiding piracy. Both htmlComics and Rojadirecta raised First Amendment arguments against the seizures — though not too much should be read into the failure of the argument in htmlComics since it flopped procedurally, and the outcome of Rojadirecta’s arguments are still pending. This case especially highlights the advantage of the forfeiture provision, added by the PRO-IP Act in 2008 — it gives the federal law enforcement agencies more options to carefully craft efforts to reduce online piracy. The FBI could have brought criminal charges against Hart himself or the comic book publishers could have sued Hart and his company in civil court. Instead, it proceeded in rem against the offending site itself, which is probably the most direct route. In the same way, ICE has targeted the domain names of rogue sites through the forfeiture process, making it more difficult for them to operate and profit.

Congress is back in session this week, and work on the proposed PROTECT IP Act is expected to begin shortly. The bill will give the US an additional option to use against pirate sites. Through a process similar to the in rem forfeiture proceedings used in htmlComics and Operation in Our Sites, the Attorney General will be able to request court orders against the often unwitting partners of pirate sites — advertising and financial service providers. This process is especially useful for taking the profit out of pirate sites where the operators are, unlike Hart and htmlComics, unknown or operating overseas.

References

References
1 I’ve uploaded some of the court filings for this case to Scribd. The rest are available through PACER, or at the RECAP archive.
2 Along with Rojadirecta, the US has filed a complaint against tvshack.net, movies-link.tv, zml.com, now-movies.com, thepiratecity.org, planetmoviez.com, and filespump.com.
By , September 06, 2011.

Spend any amount of time reading or talking about copyright and you’re bound to have come across a debate over infringement and theft. Like many internet debates, it is very much a dead horse that has been beaten — I personally have written not one but two posts on the topic — yet the subject never dies.

Case in point: a couple weeks ago, Ben Jones at TorrentFreak resurrected the debate in an article called Copyright Infringement and Theft – The Difference. In it, Jones says, “A common recurring theme in the comments here on TorrentFreak is that P2P file-sharing is ‘stealing’. While such sentiments are often expressed by the industry lobby groups, it’s completely at odds with the law. It could also be the very LAST thing those bodies want.”

In the article, Jones makes the argument that since copyright infringement is enforced in courts through infringement claims rather than theft claims, it is wrong to ever use theft-type language to describe the harm caused by infringement. While this is not the only argument used by the “infringement is not theft” crowd, it is one of the more common ones.

It is also semantic nonsense.

At the risk of belaboring this point, here are five reasons why this argument fails.

#1. It’s based on an imaginary rule

According to the argument advanced in the TorrentFreak article, it’s wrong to call copyright infringement theft because it isn’t prosecuted under theft statutes.

This argument implies a rule: you’re only allowed to use words in their formal, legal manner. Throw away your Merriam-Webster’s, because the Blacks Law Dictionary is the only proper source for learning the meaning of a word.

Even the strictest language prescriptivist would cringe at the thought of such a rule. Many words have different meanings in different contexts — a certain definition in one context doesn’t preclude other definitions in other contexts.

#2. It assumes there’s only one legal definition for theft

If we accept this arbitrary, made-up rule, we still run into problems. Which legal definition of “theft” do we use? Every jurisdiction has its own specific definition; in the US, that means there is a different definition in each state.

Some states don’t call it “theft” at all. In West Virginia, for example, the criminal deprivation of personal property is prosecuted as either grand or petit larceny, depending on the value of the property. 1W.Va.Code § 61-3-13. Cries of “Larceny isn’t theft!” would be the nonsensical result of this argument. Stealing is stealing no matter what a lawyer is required to call it for pleading purposes.

#3. The same argument doesn’t make sense with other words

Suppose, for the sake of argument, that we can get around the previous two objections: it’s a settled rule that we should only use words in their formal, legal sense, and we can agree on a legal definition for “theft.” We still run into absurd results under this argument.

“Theft” is commonly used to describe the criminal offense of depriving someone of personal property. But in most jurisdictions, someone can sue for a wrongful deprivation in civil court rather than pressing charges. Such a claim would be for conversion — the “unauthorized dominion over personal property in interference with a plaintiff’s legal title or superior right of possession” 2LoPresti v. Terwilliger, 126 F.3d 34, 41 (2nd Cir. 1997).. It’s entirely accurate, then, to say that “conversion isn’t theft”, but so what? The nature of the act itself doesn’t change depending on which court the claim is brought in.

#4. Stealing or theft?

The crux of the argument advanced in the TorrentFreak article is that infringement isn’t theft, but it kicks off with an example of a comment that “P2P file-sharing is ‘stealing'”. So which is it? Even if this particular argument was valid, does that mean it extends to the characterization of infringement as stealing? Stealing isn’t a legal term, after all — though it should be noted that, in the US, criminal copyright infringement is codified under the heading “Stolen Property“.

This little switch-a-roo just highlights the semantic shenanigans involved in the “infringement isn’t theft” argument.

#5. Some pretty smart people disagree

The argument that calling copyright infringement “theft” is “completely at odds with the law” takes on a patronizing air — i.e., “you’re only calling it theft because you don’t understand the law as well as we do.” This is no more than hubris, however; many people whose job it is to know the law know better.

In Metro-Goldwyn-Mayer v. Grokster, Justice Breyer, joined by Justices Stevens and O’Connor, said, “deliberate unlawful copying is no less an unlawful taking of property than garden-variety theft.” 3545 US 913, 961 (2005) (concurrence). The Supreme Court has been comfortable referring to copyright infringement as theft on other occasions. 4For example, Harper & Row Publishers v. Nation Enterprises, 471 US 539, 558 (1985) (citing Iowa State University Research Foundation v. American Broadcasting Cos., 621 F.2d 57, 61 (2nd Cir. 1980): “The fair use doctrine is not a license for corporate theft, empowering a court to ignore a copyright whenever it determines the underlying work contains material of possible public importance” ; Teleprompter Corp. v. Columbia Broadcasting System, 415 US 394, 417 (1974) (J. Blackmun, dissent in part): “A CATV that builds an antenna to pick up telecasts in Area B and then transmits it by cable to Area A is reproducing the copyrighted work, not pursuant to a license from the owner of the copyright, but by theft”; Dun v. Lumberman’s Credit Assn, 209 US 20,22 (1908): “[a] number of instances are disclosed in the evidence which have strong tendency to establish the charge that defendants have used some of complainants’ copyright material in making their book … such indicia is held to indicate a substantial theft of copyright property.” Lower courts and Congress have also used “theft” to describe copyright infringement on various occassions. 5See, for example, In re Verizon Internet Services, 240 F.Supp.2d 24, 35 (D. DC 2003): “There is little doubt that the largest opportunity for copyright theft is through peer-to-peer (“P2P”) software”; A&M Records v. Napster, 114 F.Supp.2d 896, 900 (ND Cali 2000): “The matter before the court concerns the boundary between sharing and theft, personal use and the unauthorized world-wide distribution of copyrighted music and sound recordings”; Protecting Intellectual Rights Against Theft and Expropriation Act, S.2863 (2004); Artists’ Rights and Theft Prevention Act, S.1932 (2003); Digital Theft Deterrence and Copyright Damages Improvement Act, PL 106-160 (1999); No Electronic Theft Act, PL 105-147 (1997).

Perhaps TorrentFreak and the rest of the “infringement isn’t theft” crowd knows more about the law than Supreme Court Justices, federal court judges, and Congress, but I’m willing to bet that that’s not the case.

Copyright infringement is theft

Language is incredibly malleable; we use words in a variety of ways. Many people over the centuries have described the deprivation of the exclusive rights in the fruits of their creative endeavors as “theft”, there’s no question about that.

But I think it is fair to ask why some bristle at any mention of theft in connection with infringement and piracy. I highly doubt their motives are solely to increase legal literacy by ensuring that words are used in their exact legal sense — mistakenly, in this case, as shown above. After all, one doesn’t have to look very far to see losing civil defendants being described as having been found “guilty”, or statutory damages for infringement being described as “fines” by these same critics — both terms that aren’t accurate in their strictly legal sense.

It’s my sense that this linguistic peeving is explained by the fact that “theft” has definite moral overtones to it, while “infringement” is still capable of euphemistically avoiding any moral concerns. Perhaps proponents of this argument hope that by straining semantics, they don’t have to confront the very real harm that infringement causes to creators and the public.

In other words, the “infringement isn’t theft” argument is often just cover for some other point.

References

References
1 W.Va.Code § 61-3-13.
2 LoPresti v. Terwilliger, 126 F.3d 34, 41 (2nd Cir. 1997).
3 545 US 913, 961 (2005) (concurrence).
4 For example, Harper & Row Publishers v. Nation Enterprises, 471 US 539, 558 (1985) (citing Iowa State University Research Foundation v. American Broadcasting Cos., 621 F.2d 57, 61 (2nd Cir. 1980): “The fair use doctrine is not a license for corporate theft, empowering a court to ignore a copyright whenever it determines the underlying work contains material of possible public importance” ; Teleprompter Corp. v. Columbia Broadcasting System, 415 US 394, 417 (1974) (J. Blackmun, dissent in part): “A CATV that builds an antenna to pick up telecasts in Area B and then transmits it by cable to Area A is reproducing the copyrighted work, not pursuant to a license from the owner of the copyright, but by theft”; Dun v. Lumberman’s Credit Assn, 209 US 20,22 (1908): “[a] number of instances are disclosed in the evidence which have strong tendency to establish the charge that defendants have used some of complainants’ copyright material in making their book … such indicia is held to indicate a substantial theft of copyright property.”
5 See, for example, In re Verizon Internet Services, 240 F.Supp.2d 24, 35 (D. DC 2003): “There is little doubt that the largest opportunity for copyright theft is through peer-to-peer (“P2P”) software”; A&M Records v. Napster, 114 F.Supp.2d 896, 900 (ND Cali 2000): “The matter before the court concerns the boundary between sharing and theft, personal use and the unauthorized world-wide distribution of copyrighted music and sound recordings”; Protecting Intellectual Rights Against Theft and Expropriation Act, S.2863 (2004); Artists’ Rights and Theft Prevention Act, S.1932 (2003); Digital Theft Deterrence and Copyright Damages Improvement Act, PL 106-160 (1999); No Electronic Theft Act, PL 105-147 (1997).
By , September 02, 2011.

Founders of The Pirate Bay launch new file sharing service — Displaying the kind of innovation that the dinosaurs of traditional industries lack, the inventive geniuses behind The Pirate Bay have launched an exciting new service. Called a “cyber-locker”, this revolutionary service allows users to actually store files on a web server. No more using hard drives like chumps! What’s next? Some kind of “engine” that lets you “search” through other web sites?

Fair-Weather Friends — Next week, Congress gets back to work, and one of the first things on their plate is the proposed PROTECT IP Act. The National Journal’s Sara Jerome notes, echoing a point made by Rob Levine in his upcoming book Free Ride, “tech giants such as Google, in part citing a need to protect free speech, have pledged to fight the transformative measure. Yet, in reality, the tech giants’ objections are economic, not ideological.” Highly recommended reading.

Terminating Music Copyright Licensing Agreements — Copyright termination has been in the news lately. Jess Robinson at the American University Intellectual Property Brief takes a look at what artists need for viable termination claims and what effects these terminations will have on the industry.

Property and Monopoly — Another great piece from Faza. The point he raises — how a copyright “monopoly” differs from the common meaning of “monopoly” — isn’t novel, but one worth repeating. As usual, the comments are as much worth reading as the article itself.

Getting it right with cyberlockers and safe harbours — James Gannon reports on the recent MP3Tunes decision. He uses it to draw lessons to keep in mind for Canada’s upcoming efforts to reform its copyright laws. “What this decision really demonstrates is the importance of having well-crafted, balanced copyright safe harbours for online intermediaries. Legally-savvy pirate website operators will always try to take advantage of any perceived loophole in copyright exemptions in attempt to shield themselves from liability.”

We have no budget for photos — Though I can imagine photographers hear this line more often, creative professionals in just about any field have probably heard some variation. Photographer Tony Sleep offers his brusque response to those who plead poverty or promise exposure in order to convince others to work for nothing.

Kirtsaeng asks for en banc review; let’s hope he gets it — Kirtsaeng, who recently lost his case in the 2nd Circuit, is asking the court to review the decision that held that the Copyright Act’s first sale doctrine doesn’t apply to goods manufactured abroad. Andrew Berger examines Kirtsaeng’s petition.

South Sudan: A little news on copyright and trade marks — Afro-IP has updates on the state of IP law in the world’s newest nation.

Proposed Indian Copyright Amendment — Nandita Saikia has been reporting on India’s efforts to amend its 1957 Copyright Act. A 2011 revision to the proposed 2010 amendment has recently been released; you can see more posts on the topic here.

Hulu Japan Launches With Movies, TV From CBS, Sony, Fox & More But No Ads — The TV and movie streaming service debuts in Japan with a slightly different service than US users are familiar with. Expect more expansion in the near future, as Hulu races with competitor Netflix to roll out around the world.

Scott Vener Q&A: Meet the Man Behind ‘Entourage’s’ Music — I’ve actually never seen an episode of Entourage, but this is an interesting (though short) interview of the show’s against-the-grain music supervisor.

Congestible Intellectual Property and Impure Public Goods — Copyright critics sometimes try to justify piracy by tossing around economic terms like “public goods” and “non-rivalrous”. This recent scholarly article by law professor David Barnes questions the conventional view that intellectual property is a public good, concluding that it is actually partially rivalrous and excludable. Barnes’s conclusions are focused primarily on this view’s implications for trademark law, but it’s worth a read for anyone interested in economic analysis of copyright law.