2nd Circuit Rules Against MP3tunes in Appeals of EMI Lawsuit

The 2nd Circuit Court of Appeals ruled against cyberlocker pioneer MP3tunes Tuesday on appeals from Sony, Universal Music Group and former MP3tunes owner Michael Robertson of a 2014 U.S. District Court jury verdict in New York saying Robertson and his firm were liable for secondary, contributory and vicarious infringement. The jury originally awarded Sony and UMG, owners of elements of original plaintiff EMI, $48 million in damages. Judge William Pauley slashed the damages award to $12 million in 2015 because he said Robertson was mostly immune from infringement liability because of the safe harbors included in Digital Millennium Copyright Act Section 512. The 2nd Circuit vacated the portion of Pauley's verdict that said Robertson had partial immunity under Section 512. Pauley “applied too narrow a definition of 'repeat infringer'” under the statute, Judge Raymond Lohier wrote, joined by José Cabranes and Chester Straub. The 2nd Circuit reversed the district court's ruling dismissing claims that MP3tunes and Robertson were liable for permitting pre-2007 infringement of EMI's catalog and Beatles songs “because there was sufficient evidence to allow a reasonable jury to conclude that MP3tunes had red-flag knowledge of, or was willfully blind to, infringing activity” related to the songs. The 2nd Circuit remanded the case to Pauley's court for a new decision on damages. Robertson’s own appeal of the case was struck down, with the 2nd Circuit saying the “evidence showed that Robertson acted in a manner intended to promote infringement.” Sony and UMG didn’t comment. Robertson’s lawyer declined comment.