Copyright Law

$675,000 verdict reduced to $67,500 in SONY v Tenenbaum

By Ty Rogers and Ray Beckerman

In SONY BMG Music Entertainment v. Tenenbaum, the Court has reduced the jury's award from $675,000, or $22,500 per infringed work, to $67,500, or $2,250 per infringed work, on due process grounds, holding that the jury's award was unconstitutionally excessive.

In a 64-page decision, District Judge Nancy Gertner ruled that:

-to decide the issue on common law remittitur grounds would not have avoided the constitutional question, since plaintiffs had indicated they would not accept a "remitted" award, but would instead proceed to a second trial in the event of remittitur;
-the award of $22,250 per infringed work could not withstand scrutiny under the Due Process Clause and was unconstitutionally excessive;
-$2,250 per infringed work was the maximum amount that the Constitution would permit given the facts of this case;
-the Gore, Campbell, and Williams line of cases was applicable to determining the constitutionality of statutory damages awards
-statutory damages must bear a reasonable relationship to the actual damages
-the actual damages sustained by plaintiffs was no more than $30
-the benefit to the defendant was in the neighborhood of $1500
-it was permissible to treble the minimum statutory damages due to defendant's wilfulness

[Ed. note. Since the Court concluded that the actual damages were ~ $1 per work, or $30 total, I don't understand how it arrived at the conclusion that an award of 2250 times that amount passes constitutional muster. -R.B.]

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Full post as published by Recording Industry vs The People on July 09, 2010 (boomark / email).