Tenenbaum Appeal Heard: Is It Okay To Make Someone Pay $675,000 For Downloading 30 Songs?
from the we-will-soon-find-out dept
The latest in the ongoing trial of Joel Tenenbaum, the student who was found guilty of sharing 30 songs online, and told to pay $675,000 for it, until the judge unilaterraly reduced the amount to $67,500. As we noted at the time, it really seemed like Tenenbaum had horrifically bad legal counsel, in the form of Harvard law professor Charlie Nesson, who still seems more focused on making the case a circus, rather than focusing in on the key issues. That does not, however, mean there aren't key issues here, with the big one being the appropriate standards for determining how much one should have to pay if found guilty of file sharing.The appeal was just heard on Monday, and you can listen to the oral arguments (mp3) from the court's website. It's definitely an interesting hearing and worth listening to. As with most appeals court situations, the bulk of the work is done in the briefs that were filed prior to the hearing, and which everyone is familiar with. The oral hearings get right to the point and drill down on where the panel of judges has questions.
Was file sharing in existence at the time the statute was passed?The Justice Department tries to get around this by pointing to the legislative record from the last time the statutory damage rates were changed, but the judge is not buying it. He immediately points out that if this is what Congress intended, it's quite odd that no such cases (or perhaps one other case -- by which they're referring to the Jammie Thomas case) have been tried, involving file sharing for non-commercial means. The judge clearly seems skeptical that copyright law was intended for such cases. While the lawyer tries to explain all of this away, with some claim about how everyone makes choices in who they sue, another judge chimes in and points out that for all the claims that Congress meant for these damages to cover non-commercial file sharing, wouldn't Congress also know that the law had never been used that way.
The lawyer again goes on to insist that since file sharing "greatly multiplies the harm" to the copyright holder (um... citation needed on that one...), Congress must have meant for such ridiculous statutory rates to cover file sharing as well. Again, the judges seem skeptical, pointing out that in this particular case, the only evidence was that Joel Tenenbaum downloaded 30 songs, and the RIAA presented no evidence that anyone else copied from him. In other words, they immediately push back on the claims of "harm." The lawyer, again says that there's lots of other evidence, even though the labels chose not to bring it.
Once again, the court is skeptical. They ask the DoJ lawyer: if Tenenbaum had sat down in a single setting and downloaded 1,000 songs, would it be appropriate under the law to claim he owed $75,000 for each download. And the lawyer says, effectively, yes, after going through the specific statutory rates ($750 to $30,000 for non-willful, and up to $150,000 for willful). Realizing how ridiculous this sounds, the lawyer tries to focus on the fact that the judge can tell the jury about mitigating factors and be specific in the jury instructions.
From there, the lawyer for the record labels, Paul Clement, steps in, and claims that the ridiculously high damages are fine because Congress wanted to send a message about the harm of "willful" infringement. He then goes on to rail about how Tenenbaum's downloading destroyed "the value of the copyright," and complains about how the district court judge likened downloading to public performance rights. At that point, another judge interrupts, and says that he basically doesn't understand "the mechanics" of infringement, and would like more specific info.
After explaining (somewhat misleadingly, but carefully) how file sharing works, Clement goes on to rail against file sharing as being incredibly damaging, because it pushes people who download to also upload... and immediately a judge cuts to the heart of one of the key legal questions:
Is "making available" the same as distribution?Clement sidesteps this, by noting that while the RIAA obviously thinks it is, that's "not an issue in this case." The judge doesn't want to give up, though, and asks him if the record labels "have the technological capacity to determine if distribution was actually effectuated?" Again, Clement tries to get around this, by saying it doesn't matter in this case.
Another judge asks a pertinent question about damages, wondering if the actual damage to the record labels was just "the lost sales" from people not buying the music, and Clement, quite ridiculously, then tries to pin the entire demise of copyright law on Tenenbaum:
"It's more than that, your honor. It's really the complete undermining of the copyright. What I mean by that is you can't just isolate what's going on here as if it's an individual's, by copying it, has not gone and bought the work on iTunes or not bought the work in a record store when we used to have record stores. What happens is, by distributing it to others, there are... the viral nature of this technology, really has a substantial impact on the value of the work. And the way I'd ask you to think about it is this: one, I think, relevant question in a statutory damages case is, what would it cost to get a license for what the defendant has done. And, if all the defendant had done was making a copy and that was it, then maybe an analogy to just getting a copy off of iTunes would be appropriate. But here, by distributing it... if someone wanted to go to one of the record companies and say 'we'd like to do what the defendant did in this case,' the value of that license would be essentially the value of the entire copyrighted work. Because the effect of putting this work up on peer-to-peer technology is essentially you take a copyrighted work, and put it in the public domain."He goes on to blame the poor financial state of the record labels on file sharing, and seems to indicate that we should blame Tenenbaum for this.
After a brief, and somewhat inconsequential, discussion by Julie Ahrens, representing the EFF (which the judges clearly didn't have much interest in, pointing out that any of the issues raised should have been raised to the jury, not to them -- even though that would have raised questions by the RIAA folks of an attempt at jury nullification...), we move on to Tenenbaum's own defense, which was handled (with permission) by a Harvard Law student, Jason Harrow. He kicks off his talk by pointing out that the Justice Department's claim that companies didn't bring such lawsuits for non-commercial infringement in the past because it wasn't cost effective, is on its face ridiculous. After all, if you can get $150,000 per infringement for someone infringing on a $1 work, how is it not cost effective to bring that lawsuit over and over again (just ask the various mass file sharing lawsuit filers...). Instead, he notes that the better explanation is that "no one thought that the statute would apply to such consumer usage."
One of the judges immediately jumps in and says that Congress could have made an exception, but didn't. Harrow points out that perhaps it didn't because the result would naturally be absurd: the idea that someone sitting at home, listening to music, would suddenly be liable for billions of dollars, doesn't make any sense. The judges' questioning of Harrow seems focused on the specific standards and jury instructions, rather than on the larger issue.
Finally, Charlie Nesson presents, and goes through the history of copyright law, and how statutory damages were clearly, originally intended for commercial infringement, not non-commercial. One of the judges points out that the RIAA began these lawsuits in 2003, and if Congress was upset about them, it's had eight years to amend the statute to specify that statutory damages don't apply to non-commercial use. Of course, that ignores the reality, which is that it's effectively impossible for Congress to change copyright law in a manner that benefits consumers, since the entertainment industry would go ballistic. The court also chides Nesson a bit for "pushing the bubble" very far in some of his arguments.
Clement then comes back for a brief rebuttal, trying to claim that the very first Congress put in place statutory damages for copyright... which is immediately shot down by one of the judges, who notes that the Congress felt that statutory damages should not be punitive, which Clement tries to sidestep around (not very successfully, in my opinion).
And that's about it. If you had asked me prior to the oral hearing, I would have said that the court would almost certainly uphold the statutory damage rates as being perfectly reasonable. It just seems like the sort of question that the courts don't want to touch -- especially (as mentioned by one of the judges in the case) noting that Congress has said nothing on the issue in the last decade. However, I have to admit that I was surprised at how (I believe) two of the judges really seemed to dig in against both the Justice Department lawyer and the RIAA/labels lawyer, on the big key questions, and suggested, repeatedly, that they're not buying the overall claim. I'm still guessing that the court won't say that the award was unconstitutionally excessive, but I'm not nearly as certain after listening to the hearing as I was before it...
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Filed Under: appeal, copyright, damages, joel tenenbaum
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No
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I'm baffled ..
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Re: I'm baffled ..
If they were awarded damages based on fact, the guy might actually have to pay for his music at full retail price and maybe damages are trebled. The total fine might be more like $200-$300, which would actually seem almost reasonable. But remember, reasonable is not an option and it certainly does pay the legal team!
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(Another vote for an edit button, MM!)
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Whoa! Headspin! Logic Loop.....,
If he downloaded it, then it must by the lawyer's own argument have already been in the public domain as once the work has been uploaded "the copyright value is removed".
By that reasoning they can go after the original uploader (assuming they can track such a person down)for 2 Gazillion pounds, but any downloader who subsequently shares it is de-facto sharing public domain content and therefore not infringing.....
It's kinda funny (in a sick sort of way) watching the the tortuous knots these people seem to generate to try and steal money from anyone they can find
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Judge: So when a work is shared on P2P networks, you essentially lose the entire value of that work?
Lawyer: Yes, exactly!
Judge: And would it be safe to say that nearly all of your company's works are currently being shared on P2P networks, if not by this defendant than by others?
Lawyer: Yes! It's destroying our industry!
Judge: So since you have lost the entire value of all of your works, your revenue for the past year was $0, right?
Lawyer: Um...
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While the litigation was limited to 30 songs for the sake of simplifying the proceedings, it was admitted by T at the trial that he had wilfully downloaded well over 1,000 songs that were then placed in his P2P distribution folder.
To say this is about 30 songs is plainly wrong.
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If the case had been solely about what T downloaded, litigation almost certainly would have never ensued.
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Re: ?
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"the student who was found guilty of sharing 30 songs online, and told to pay $675,000 for it."
Then later you tell me:
"and you can listen to the oral arguments (mp3) from the court's website."
So now I am confused. I can download an MP3 which has no release of Copyright information, about a court case where a kid got sued for downloading and sharing MP3's which were under copyright, but never said so?
"Pot? it's Kettle. Imma SUE YOU."
it would be funny if they played the 30 songs in the oral arguments, so now they would be public domain in a free to use MP3 from the courts..........
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The same cannot be said of that which T downloaded and distributed.
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I've been wondering...
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Re: I'm baffled ..
By obfuscating the issue by simply stating it's not able to be proven, they can claim that the highly profitable minimal statutory damages are appropriate.
The problem is that nobody charges drug-dealers for crimes they can't prove. You can't say, "he dealt drugs, but we don't know how many he sold, so we're just going to make up a number instead." If the RIAA can only prove someone downloaded or can only prove they downloaded from the defendant, they can only prove one or two violations.
This is why they attempted to argue that making available is infringement. But if that were true, there's no logical way to quantify infringement. How do you divide up availability? Every second that a file is available is a second that it could be downloaded, so do we multiple how many seconds the files are available to determine the number of infringements.
It's not logical to allow damages higher than the world's entire estimated worth, but that's what you'd have to do if you used RIAA math to determine damages.
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"The judge doesn't want to give up, though, and asks him if the record labels "have the technological capacity to determine if distribution was actually effectuated?" Again, Clement tries to get around this, by saying it doesn't matter in this case."
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If he only ends up owing $675,000, he should consider himself lucky.
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The only reason this matter proceeded to trial is because T chose to do so in lieu of a very modest settlement that was repeatedly offered to him
This has absolutely NOTHING to do with the incentives raised by the DMCA and the extended length of copyright laws in the US. This seems to only say to people "You're guilty, fess up and pay up!", which is NOT the reason he should have been sued in a civil court. Add this that the statutory damages seems to believe that he's responsible for the behavior of others to "send a message" and you have the grounds for abuse.
Of course, it did not help that a group at HLS decided to take up his cause as a learning experience, and the proceeded to handle things miserably;
I recall that T also came to the summons with no lawyer and Nesson volunteered to do it. Think about that... He's a regular person being sued for a large amount by a company with 5 lawyers. No matter if HLS was inexperienced or not, not lawyers stepped up to the plate to take the case pro bono nor did they try to touch this case other than through Nesson. That was the best he could get and I doubt that would have changed.
nor did it help that T was his own worst enemy by his conduct leading up to and during the trial.
You try being under a lawsuit where you may have your wages garnished, for an amount 10x your income, for the rest of your natural life. Then tell me you won't do everything to avoid such an amount, that was picked out of thin air, and has no basis in reality.
Now with that out of the way, here's my opinion:
It's quite deplorable that people continue to look at the proceedings, the lawsuits, and the entire "sue the world" mentality of businesses for copyright infringement and blame the victims here. Just because we have the letter of the law in the US, doesn't mean the spirit, or intention behind them should be faulted. There is NO evidence that Tenenbaum's actions caused the downfall of the RIAA. There is a LOT of evidence noting that the RIAA's lawsuits didn't stop filesharing, hurt their signatories, and was not worth the hassle of even trying the "educate" the populace when there is nothing wrong with an abundant good.
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Abolish Copyright
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Re: I've been wondering...
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Re: I've been wondering...
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Arrrr!
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Or maybe it's a bit more complicated then, "They prevailed at trial. Case closed. Nothing else matters except that part."
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The evidence produced at trial made it clear that T knew what he was doing was illegal, and yet he persisted over a long period of time. This is not the hallmark of a victim. It is the hallmark of a fool.
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Judge: "I sentence the defendant to death!"
Lawyer: "But your honor, he stole a candybar!"
Judge: "That doesn't matter. He's getting what he deserves for being, 'a gigantic douchenozzle throughout the entire process, shooting off his mouth and arrogantly thinking he could rewrite the law.'"
Sounds stupid, doesn't it?
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Garnishing his wages substantially for the rest of his life is not the hallmark of justice. It is the hallmark of financial sadism.
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Kinda like Rosa Parks and others, huh?
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Thus, there really was no issue to "get around" because it was not an issue for purposes of the appeal.
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Audio now on YouTube, with helpful annotations
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Absolutely sure.
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Curse those Johnny Depp thieves!
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Hello bully,
There was a story about a study not long ago that found that most bullies don't think that what they do do is bullying. Instead, they tend to think that they are justified because the victims somehow "deserve" it. You certainly seem to demonstrate that.
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The "very modest settlement" was bullying.
"Give me money or I'll sue you for more than you'll ever make in your life."
If you compare $675,000 to the $3000 in extortion money, it might seem modest, but if you compare $3000 to even 10 times the price of the music he downloaded, it's sadistic.
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Lawyer: Um...only when we have to figure out what we actually owe to the artists, then yes, it is $0.
Judge: Please allow Marshall Bruce Mathers III to enter the courtroom. {MBM III enters} Mr. Mathers, could you please tell the court how much money you were paid in royalties last year for your music?
MBM III: I was paid $X, your honor based on sales of #Y number of copies in physical formats. However, the label claims that all my songs on iTunes are only licenses for which I should be paid $X + 20% since the digital distribution is relatively zero cost, according to my contract.
Judge: Are you the only artist signed to a contract with this label?
MBM III: No, your honor.
Judge: Council, you are full of shit!
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If it were true then no one would ever sign with a record label. duh.
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Heh, typical bully response.
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If it were true then no one would ever sign with a record label. duh.
Hey, nobody said every musician was a genius.
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So Joel should only have to pay up to the value of what he stole??? That's funny. Willful infringement penalties *by law* state he would owe more than that. Which is also, btw, far, far more than the settlement he was offered.
But like that other sociopath, Jammie Thomas, he refused to settle.
He just a huge tool that thought he could make a mockery of the law and deserves his ass being handed to him.
Which is exactly what is happening.
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Nope, he should pay nothing because by the plaintiff's lawyers own argument what he downloaded was public domain or at least inherently valueless to the copyright holder. Fantastic argument from the lawyer there and you think it's the defendant that's making a mockery of the law?
Tell me, do you have better justification for thinking that $75,000 per song (I.e. I'm guessing about 2 years average wages) is a reasonable number? Something that, unlike the argument given, doesn't mean the song was already valueless when it was downloaded? I'll give you a start to cross some off;
"Because it's the law" isn't a justification
"Because he's a 'douchenozzle'" isn't a justification
"Because you're all a bunch of freetard thieves" isn't a justification
"Because he's the only one we can get so we may as well stick him with the whole amount we think me might ever hypothetically lose" isn't a justification
What else have you got?
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???
Please share with us what you're smoking these days.
What's this "he was the only one they could get" BS? Almost every infringer (the sane ones) settled once they were caught. They took the risk and payed the consequences for breaking the law. The law is what we're talking about here. I'm sorry that your fantasist method of existence causes you to be in denial about that, but that's the reality. Especially for Joel.
Joel was the idiot that decided to take his case to court. Once he was found guilty, he was fucked. The law dictates damages. You can't blame the RIAA for that, sorry bud.
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Why are you trying to defend the indefensible?
Change copyright law or shut your piehole when it's enforced.
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It's his blog, and he's free to do that, but don't confuse it with "reporting".
This blog has an agenda that, while latent in the past, is now very overt; despite the owner being too much of a wussy to admit it.
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You're not Justin Bieber, whom, while I thionk his music is awful, had an amazing business model to work from.
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Interstate Commerce anyone?
PRK
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No they didn't. The courts turned against quite a few of the lawsuits with joinder issues, issues of jurisdiction, and issues of trying to go after dead people.
Yeah, that was really smart of them.
And the RIAA lobbied for that change in statutory damages in 1998 with the DMCA. So yes, you can blame the RIAA for that one, bud.
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Re: Interstate Commerce anyone?
The issues here arose under the latter.
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"Ignoring the question of copyright as it pertains to the downloadable mp3, it cannot be denied that the mp3 is there specifically so that it can be downloaded and listened to."
Anyone who downloads unauthorized mp3's pretty much ignores the question of copyright already - isn't that what this case is all about? Where is the explicit authorization for this file?
In fact, every mp3 that can be found online ANYWHERE is there specifically to be downloaded and listened to - that's why the format was chosen.
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The file in question was lawfully made available for downloading, so your idignation and pejorative comments are missplaced.
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For reference:
Nope not smoking anything, simply following the logic of the prosecuting lawyer as I explained above.
If you actually bothered to read my comment before wading in to try and trash it you'd have read that I was simply excluding "He was the only one they could get" as a valid justification for such a grossly out of proportion to the damage award.
I also excluded "Because it's the law" as a justification as it's a fact not a reason. Not so long ago it was fact in england that killing a dear was cause for summary execution according to law. The fact of it being a law doesn't make it a just one. I asked what your reason for thinking it justified was.
The defendant's idiocy or not is also not a justification for a law. If it were I suspect you would not be able to afford the computer to (not) reply.
To recap:
Other than there I was referring to the plaintiffs' own lawyer's argument in response to your previous post I wasn't referring to this case. I am also not necessarily saying that it is not a crime nor that there should not be a reasonable punishment if it is.
I was asking what you believe to be the justification for bankrupting someone for life when their individual actions had little or no effect of actual damage on the plaintiff.
Are you interested in answering the question or woudl you like to rant tangentially some more?
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what you said still makes no sense. The judge is asking if distribution took place. That isn't something that "T" would do, so he couldn't admit to doing it. He asking if they were actually distributed (if anyone actually downloaded them, and, if so I would only assume the followup would be asking for a quantity since that would be relevent to potential damage).
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