EMI Mills Music, Inc. v. Empress Hotel, Inc.

470 F. Supp. 2d 67, 82 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. Dist. LEXIS 94719, 2006 WL 3921863
CourtDistrict Court, D. Puerto Rico
DecidedSeptember 20, 2006
DocketCIV. 03-1940(RLA)
StatusPublished
Cited by13 cases

This text of 470 F. Supp. 2d 67 (EMI Mills Music, Inc. v. Empress Hotel, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EMI Mills Music, Inc. v. Empress Hotel, Inc., 470 F. Supp. 2d 67, 82 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. Dist. LEXIS 94719, 2006 WL 3921863 (prd 2006).

Opinion

OPINION AND ORDER

ACOSTA, District Judge.

This is an action for copyright infringement under the United States copyright laws, 17 U.S.C. §§ 101, et seq. In their complaint, plaintiffs Emi Mills Music, Inc., Universal-Polygram International Publishing, Inc., Dreamworks Songs, Billy Stray-horn Songs, Inc. and Universal Studios, Inc. (“Plaintiffs” or “Copyright Owners”) alleged that defendants, Empress Hotel, Inc. and Mr. Carl Palermo (collectively “Defendants”), infringed Plaintiffs’ copyrights in four songs through their unauthorized public performance in defendants’ premises (the “Empress Hotel”). Plaintiffs further claimed that defendants threatened to continue such infringing performances.

Non-jury trial was held on August 7 and August 8, 2006. The court having heard the testimony of the witnesses presented by the parties, reviewed the documentary evidence introduced at trial as well as the *70 stipulations submitted thereat hereby finds as follows.

FINDINGS OF FACT

The songs “CARAVAN,” “ALL THE THINGS YOU ARE, ARE MINE,” “TAKE THE ‘A’ TRAIN,” and “A NIGHT IN TUNISIA” (a/k/a THE MELODY STILL LINGERS ON) (collectively “the Copyrighted Works”) are original works afforded protection under the copyright laws of the United States, 17 U.S.C. §§ 101, et seq., and properly registered thereunder.

Plaintiffs Emi Mills Music, Inc., Universal-Polygram International Publishing, Inc., Dreamworks Songs, Billy Strayhorn Songs, Inc. and Universal Studios, Inc. are owners of the Copyrighted Works.

Plaintiffs are members of the American Society of Composers, Authors and Publishers (“ASCAP”) and at all times pertinent, their songs, including each of the four songs listed above, have been in the ASCAP repertory.

ASCAP is an unincorporated membership association whose more than 230,000 members write and publish musical compositions.

Each member, including each plaintiff herein, has granted to ASCAP a non-exclusive license to authorize public performances of the members’ copyrighted music. In this capacity ASCAP licenses, inter al-ios, music users, television networks and stations, radio stations, restaurants, nightclubs and hotels.

The San Juan Empress Hotel (hereinafter “Empress Hotel”) is owned by defendant Empress Hotel, Inc.

Defendant Carl Palermo, at all relevant times, was President and Treasurer of Empress Hotel, Inc., and had responsibility for the control, management operations and maintenance of the affairs of said corporation.

Defendants regularly hire musicians to publicly perform musical compositions for the entertainment of Defendants’ patrons. As a result thereof they derive financial benefit from these public performances inasmuch as the musicians attract or entertain paying patrons of the Empress Hotel.

Beginning on or about February 13, 1998, ASCAP took several steps to persuade the Defendants to obtain an ASCAP license and thereby obtain permission to perform lawfully copyrighted musical works in the ASCAP repertory.

During the period from February 13, 1998 through December 14, 2001, ASCAP representatives contacted defendants by way of at least 10 letters, telephone calls and personal visits as part of ASCAP’s unavailing efforts to persuade Defendants to obtain a license for the Empress Hotel.

Defendants were repeatedly advised that in order to lawfully perform any of the copyrighted musical compositions in the ASCAP repertory at the Empress Hotel, permission was required from either ASCAP or the individual copyright owners directly.

Moreover, ASCAP consistently reminded Defendants of their potential liability under the United States copyright laws for the unauthorized public performance of copyrighted musical compositions at the Empress Hotel. Nevertheless, Defendants repeatedly ignored and rejected AS-CAP’s licensing offers.

The Defendants have not obtained an ASCAP license, nor have they obtained permission directly from ASCAP members to perform copyrighted music at the Empress Hotel.

During trial, Dean Demerritt, Director of Licensing for ASCAP, testified that AS-CAP calculates the license fees charged to *71 hotels based on the hotel/motel’s expenditure statement and ASCAP’s licence fee schedule. Mr. Demerritt testified that, in the normal course of business, the information provided by hotels and motels in these statements is used to calculate the appropriate fees with the assistance of the fee schedule.

Defendants never filled out an expenditure statement for the Empress Hotel from the time they were contacted in 1998 up to the present. Nevertheless, relying on admissions from Mr. Palermo’s testimony at his deposition in this ease, Mr. Dem-erritt was able to estimate the Empress Hotel’s license fees for the year 2006.

In his deposition Mr. Palermo testified that: (1) the Empress Hotel has 31 rooms; (2) he spent approximately $1,050.00 per week for musical performers; (3) there was dancing at the Empress Hotel but no cover charge, shows or acts, and (4) music was also played at the Empress Hotel by means of a jukebox.

Based on the aforementioned admissions and ASCAP’s license fee schedule, Mr. Demerritt was able to estimate the Empress Hotel’s license fees for 2006 at $2,095.00. Mr. Demerritt further explained that, as a general rule, ASCAP license fees have varied from year to year in accordance with changes in the Consumer Price Index (“CPI”). This testimony was not impeached by Defendants.

Even in the light most favorable to Defendants, the percentage decrease in license fees going back from 2006 to 1998 based on changes in the CPI would be balanced out by the increase in the value of money if ASCAP had been able to invest or use the license fees that the Empress Hotel would have paid if licensed from 1998 to the present. Thus, in light of the actual fees due for 2006 ($2,095.00), it would be reasonable to estimate the license fees due from 1998-2006 at about $2,000.00 per year. The Court finds this computation reasonable, since the amount of ASCAP fees are just a guide in its discretionary determination of statutory damages for copyright infringement. See, Morley Music Co. v. Dick Stacey’s Plaza Motel, Inc., 725 F.2d 1, 3 (1st Cir.1983) (“[since] district court[s][are] not constrained to award only an amount equal to plaintiffs’ lost license fees, [ ] the question of what plaintiffs would have received had defendants bought an ASCAP license is not determinative.”)

Based on the foregoing, the estimated license fees that Defendants would have paid had the Empress Hotel been properly licensed by ASCAP from 1998 to 2006 total approximately $18,000.00. 1

On the nights of June 20-22, 2002, Mr.

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470 F. Supp. 2d 67, 82 U.S.P.Q. 2d (BNA) 1674, 2006 U.S. Dist. LEXIS 94719, 2006 WL 3921863, Counsel Stack Legal Research, https://law.counselstack.com/opinion/emi-mills-music-inc-v-empress-hotel-inc-prd-2006.