Umg Recordings, Inc v. Sinnott

300 F.Supp. 2d 993 (2004)

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Nature of the Case

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Facts

P are owners of the copyrights to some of the most popular sound recordings in the world. Ps are members of the Recording Industry Association of America (RIAA), an organization that, among other things, is charged with combating the problem of counterfeit sound recordings in the United States. The RIAA investigated the sale of counterfeit compact discs by vendors at the Marysville Flea Market (MFM). D has been the sole owner of the MFM since 1992. MFM operates every Sunday, weather permitting, and has the capacity to accommodate about 200 vendor booths, although there are generally some booths left empty. Vendors pay D a fee to rent a booth to sell merchandise. D provides security, utilities, restrooms, and a clean environment in which to sell merchandise to the approximately 1,500 customers that attend the flea market each week. D operates concession stands and he is the only authorized seller of food or beverages on the premises. D recently opened and operates a go-kart track at the property. D sets all rules and regulations and is generally present during operating hours. D reserves the 'right to inspect all merchandise, and also the right to refuse or cancel space rental.' D prohibits the sale of alcohol, and also food and drinks that can readily be consumed on the premises. The rules also add special requirements for vendors that sell produce. MFM employs security personnel that patrol the grounds and enforce these rules. MFM security personnel can, and have, ejected both customers and vendors for violating these rules. RIAA investigators found three vendors collectively offering approximately 3000 counterfeit CDs and cassettes for sale. The investigators went to the MFM office and explained to D that several of his venders were selling CDs in violation of Ps' copyrights, and sought his assistance in putting a stop to these infringing sales. They offered to train MFM employees on simple methods of detecting pirated and counterfeit CDs and cassettes, and on ways to distinguish these from original recordings. D threw them out but allowed them to deliver cease and desist letters to the vendors. RIAA investigators visited six more times between September 2000 and September 2003, each time encountering vendors offering infringing CDs and cassettes for sale. Approximately 20,000 infringing CDs and cassettes were seen by RIAA investigators as being offered for sale during these visits, and investigators purchased 151 of these infringing CDs and cassettes. D was sent four letters advising him of the infringing activity conducted by his vendors and explaining his potential liability. D did not respond to any of these letters, and while acknowledging receipt, claims that he did not read them. Ps sued to enforce their copyrights. Ps moved for summary judgment on the issue of D's contributory and vicarious liability.