Polygram International Publishing, Inc. v. Nevada/Tig, Inc.

855 F.Supp. 1314 (1994)

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Nature of the Case

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Facts

TIG (D) was dismissed from this case by stipulation. The two remaining defendants, Interface Group-Massachusetts, Inc. and Interface Group-Nevada, Inc. (Ds) organize and promote major conventions and trade shows, including the world's largest trade show for the computer industry, 'COMDEX/Fall.' Ps are members of the American Society of Composers, Authors, and Publishers (ASCAP), and have granted to ASCAP the non-exclusive right to license public performances of their copyrighted musical compositions. ASCAP is a clearinghouse that takes in license fees from those who wish to perform or authorize performances of copyrighted material and then distributes these fees, after deducting operating costs. ASCAP also prepares and conducts copyright infringement litigation on behalf of its members to enforce their copyrights. ASCAP communicated with Ds in the hope of entering into a license agreement that would authorize performances of any of the copyrighted music in the ASCAP repertory at Ds' trade shows. A show license, would have cost about $4,000 for the COMDEX/Fall show. Ds believed no license was necessary for the COMDEX/Fall show because Ds itself did not intend to perform any music. The COMDEX/Fall show was held in October 1991, in Las Vegas. Over 2,000 exhibitors rented space. Exhibitors were responsible for the content of their booths, but they were required to abide by the general Rules and Regulations established by Ds. Ds forbids exhibitors from using music at a volume that might intrude upon adjacent exhibit areas and advises exhibitors that it is their responsibility to obtain proper copyright licenses from ASCAP or other licensing authorities for any music played. Investigators for ASCAP attended the show and overheard copyrighted music of Ps being performed at five exhibition booths. At the awards ceremony for the show for 'Best of COMDEX,' the investigators heard a disc jockey and a band, the 'Jazz Barons,' perform songs that Ps own the copyright on each of these songs. Ds were responsible for promoting the ceremony to the public and press and for supplying 'all audio/visual needs' for the ceremony. Ds derived its profit from COMDEX/Fall from three sources: booth rentals at $ 35.95 per square foot, admission fee charges of $ 75 per person for attendees, and advertising revenues. Gross revenues exceeded $44 million. Ds did not earn any revenue directly from any business activity generated at exhibitors' booths, or from the Best of Comdex awards. Ps sued Ds and Ds moved for summary judgment.