Maria Ramirez v. Freddie Records, Inc., et

496 F. App'x 383
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 2, 2012
Docket10-20806
StatusUnpublished

This text of 496 F. App'x 383 (Maria Ramirez v. Freddie Records, Inc., et) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maria Ramirez v. Freddie Records, Inc., et, 496 F. App'x 383 (5th Cir. 2012).

Opinion

PER CURIAM: *

Big F., Inc. (formerly known as Freddie Records, Inc.) and Freddie Martinez, Sr. (whose sole proprietorship is Marfre Music Publishing) challenge: being held liable to Luisa Ramirez and Tony Guerrero for copyright infringement; and the district court’s awarding attorney’s fees. Defendants assert: they had an express, or an implied license to exploit Ramirez’ and Guerrero’s work; the verdict is fatally inconsistent; and the court abused its discretion in awarding the fees. AFFIRMED in part; VACATED in part; REMANDED for reconsideration of attorney’s fees.

I.

Ramirez and Guerrero are members of “La Sombra”; during the 1980s, it recorded albums with Freddie Records and was paid for each album. The albums were published by Marfre Music Publishing, Martinez’ sole proprietorship. Guerrero did not receive royalties for sales of the *385 sound recordings; Ramirez received composer royalties pursuant to several songwriter contracts. Copyrights were registered, both by Defendants and by Ramirez and Guerrero, for many of the musical compositions and sound recordings between 1987 and 2008.

In the last year of registration, Ramirez and Guerrero filed this action in Texas state court; it was removed to federal court. They sought damages and attorney’s fees for, inter alia, copyright infringement.

Trial was held in April 2010. A jury found Freddie Records and Marfre Music, but not Martinez, liable for copyright infringement. It awarded damages of approximately $65,000 to Guerrero and approximately $134,000 to Ramirez. That July, the district court awarded attorney’s fees of approximately $288,000.

Defendants’ post-trial motion was denied in October 2010, and they filed for bankruptcy in 2011. The bankruptcy court lifted the automatic stays to allow Defendants to proceed with this appeal.

II.

Defendants claim: they are entitled to a new trial on whether they infringed copyrights, maintaining they had either an exclusive or implied license to exploit the work; the verdict was so inconsistent as to be irreconcilable; and the district court abused its discretion in awarding attorney’s fees.

A.

The new-trial motion contended the evidence was insufficient to support the jury’s finding Ramirez’ and Guerrero’s copyrights had been infringed. Denial of a new-trial motion is reviewed for clear abuse of discretion. E.g., Foradori v. Harris, 523 F.3d 477, 497 (5th Cir.2008). In that regard, Defendants “must show an absolute absence of evidence to support the jury’s verdict”. Id.

Defendants maintain they had either an exclusive or implied license to exploit Ramirez’ and Guerrero’s works. The burden is on Defendants to prove having a license because it is an affirmative defense to a copyright-infringement claim. Baisden v. I’m Ready Productions, Inc., 693 F.3d 491, 499 (5th Cir.2012).

1.

An exclusive license is a transfer of copyright ownership, 17 U.S.C. § 101, and must be memorialized in a signed writing, 17 U.S.C. § 204(a). Defendants fail to meet their heavy burden of showing “an absolute absence of evidence” for the infringement finding. Foradori, 523 F.3d at 497. For example, they admit failing to locate many of the claimed songwriter agreements signed by Ramirez and transferring all rights to Marfre Music. As another example, Martinez’ testimony provided reason to doubt the validity of those contracts Defendants did introduce; he stated one of the admitted documents was “not the contract” and would have been accompanied by “an original contract”, which was not introduced.

2.

In the alternative, Defendants contend Ramirez and Guerrero knew Defendants were exploiting La Sombra music for many years and never objected, thereby providing Defendants an implied license. Because Defendants waived this contention, we do not consider it.

Defendants did not raise their implied-license claim until a May 2011 motion, in response to the district court’s jurisdiction-ally-barred (and later vacated) 10 April 2011 “amended final judgment”. Defendants failed to preserve their implied-license contention because: that part of *386 their motion seeking a new trial was untimely, Fed.R.CivP. 59(b); and they had already filed their notice of appeal, thereby divesting the district court of jurisdiction for “those aspects of the case involved in the appeal”. Weingarten Realty Investors v. Miller, 661 F.3d 904, 908 (5th Cir.2011) (internal quotation omitted).

Defendants claim they preserved the issue by pleading “license” as an affirmative defense, and by, throughout trial, contending they had a “license”. Along this line, however, the evidence Defendants presented at trial concerned written, exclusive licenses. Similarly, the jury instructions, to which Defendants did not object, specified: “To be valid, the [license] must be in writing”. (Emphasis added.) Moreover, they failed to request an implied-license instruction.

B.

Defendants contend the jury verdict must be vacated, or judgment rendered for Martinez, because the jury inconsistently found him not liable while finding his sole proprietorship, Marfre Music, liable. They assert: because Martinez and Marfre are indistinguishable, the verdict is irreconcilable and the district court “ha[d] no authority to enter judgment” based on it. Rosado v. Deters, 5 F.3d 119, 124-25 (5th Cir.1993) (internal quotation omitted). This issue must be reviewed with great deference, making an “attempt to reconcile the answers to validate the jury’s verdict”. Rideau v. Parkem Indus. Services, Inc., 917 F.2d 892, 896 (5th Cir.1990).

The jury’s answers are reconcilable. It was instructed: “Each Defendant is entitled to fair, separate and individual consideration of his ... case without regard to your decision as to the other defendants”. The jury’s special-verdict form, to which Defendants did not object, included Martinez and Marfre Music as separate defendants; and Martinez testified he had numerous employees at Marfre and did little of the publishing work himself. The instructions and Martinez’ testimony gave the jury sufficient reason to believe it could find Martinez infringed the copyrights when acting in his capacity as owner of Marfre Music.

C.

Attorney’s fees awarded under the Copyright Act, 17 U.S.C. § 505

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496 F. App'x 383, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maria-ramirez-v-freddie-records-inc-et-ca5-2012.