Miller v. Goody

139 F. Supp. 176, 108 U.S.P.Q. (BNA) 409, 1956 U.S. Dist. LEXIS 3595
CourtDistrict Court, S.D. New York
DecidedMarch 16, 1956
StatusPublished
Cited by8 cases

This text of 139 F. Supp. 176 (Miller v. Goody) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller v. Goody, 139 F. Supp. 176, 108 U.S.P.Q. (BNA) 409, 1956 U.S. Dist. LEXIS 3595 (S.D.N.Y. 1956).

Opinion

IRVING R. KAUFMAN, District Judge.

Some time in 1951, defendant Joseph Krug, a phonograph record salesman,, came into possession of certain acetate' disks recording propaganda radio broadcasts made by Glenn Miller and orchestra when Mr. .Miller was a major in the-United States Army during World War II. Krug tape-recorded the selections on. *177 those disks, and from the tapes he made the matrices, plates, molds, stamps, etc., necessary for the manufacture of records ; then, doing business as the A. F. N. Record Company, he commenced to manufacture and sell two ten inch long-play records of the Miller performance. The jackets in which the records were sold carried a picture of Glenn Miller in his army uniform and the captions, “Major Glenn Miller and His A. E. F. Orchestra”, “An AFN Presentation”. The labels on the records themselves were similarly captioned.

Of the thirteen musical selections contained on both of these records, nine were copyrighted musical works whose copyrights were held by various musical publishers. 1 These copyright proprietors had each previously permitted the recording of the selections involved; therefore, under the so-called compulsory licensing provisions of the copyright law, 17 U.S.C. § 1(e) and § 101(e), which deal specifically with mechanical reproduction of musical compositions, Krug was entitled to manufacture recordings of these selections provided he filed notice of his intention to do so, and provided he paid the copyright proprietors a royalty of 2 cents for each record manufactured. Krug, however, neither filed the requisite notice nor paid the statutory royalties, and he thereupon became an infringer and subject to statutory damages. 2

*178 Among Krug’s record dealer customers were Portem Distributing, Inc. and Sam Goody, the latter reputed to be one of the largest record dealers in the world. Both Mr. Robert E. Pare, president of Portem Distributing, Inc. and Mr. Goody had been acquainted with Mr. Krug in his capacity as a record salesman for the Colony Record & Radio Center, but both assert that they found nothing surprising or suspicious when it appeared that he was also in the business of manufacturing records under his own label. They made no effort to ascertain whether he had fulfilled his obligations under the copyright law, nor, seemingly, did they make inquiry as to Krug’s authority to use Glenn Miller’s picture, and to re-record his performance. 3 Both assert that because of the large number of record manufacturers in the field, ranging from large-scale producers to small operations similar in size to Krug’s, and because of the compulsory licensing provisions of the copyright law, they cannot and do not attempt to ascertain whether every manufacturer with which they deal has taken the proper steps required under that law.

In May of 1954, Helen D. Miller, who is Glenn Miller’s widow and executrix of his estate, joined with the six publishing companies who between them own the nine musical copyrights which had *179 been infringed, and together they brought suit against Krug individually and doing business as A.F.N. Record Company, and against Sam Goody, Portem Distributing, Inc. and several other record dealers who had allegedly bought infringing records from Krug and resold them to the public. Helen D. Miller’s complaint was based on unfair trade practices and unfair competition as she alleged that she had the exclusive right to control the recording of Glenn Miller’s performances, that she and her husband before her had negotiated exclusive contracts with RCA Victor which fact was well known in the industry, that Krug’s records were of inferior quality, and that he and the defendant dealers, therefore, had damaged the value of Glenn Miller’s name and reputation by selling these technically inferior recordings, and had also interfered with and damaged her property rights in the name, likeness and music of Glenn Miller, which rights have earned her substantial royalties from RCA Victor and other companies which have paid to use the name and likeness of Glenn Miller in the motion picture, radio and sheet music industries. The complaint of the publishers was based on Krug’s violation of the copyright law and on the resale by the dealer defendants of those infringing records, which sale, the publishers assert, was also a violation of the copyright law subjecting the dealers to liability for statutory damages.

The plaintiffs proceeded first against Krug, and on October 5, 1954, the publisher plaintiffs made a motion for a default judgment against Krug who had failed to answer their complaint or take any other steps with respect to it. The default was granted, and by its terms, Krug was enjoined from infringing the musical copyrights involved; a Special Master was appointed to take testimony and compute the amount of damages and royalties owing; and Krug was ordered to turn over to the Special Master all the materials with which he had made the infringing records, provided that upon satisfactory proof to the Court that Krug had filed the requisite notice and paid the royalties found due, the injunction and impounding order would be lifted. Miller v. Goody, D.C.S.D.N.Y. 1954, 125 F.Supp. 348. Computation proceedings were started, and Krug was called as a witness before the Special Master; before the royalties owing could be ascertained, however, the publisher plaintiffs and Helen D. Miller entered into a stipulation of settlement with Krug. Under its terms, the injunction against making the offending records was made permanent; Krug turned over to the plaintiffs all the materials with which he had manufactured, labeled and jacketed the recordings; and he paid the plaintiffs other than Helen D. Miller $2,000. “on account of the costs and expenses incurred * * * in their proceedings” against him. All the plaintiffs, while discharging Krug and his heirs, executors and administrators from any further liability arising from this cause of action expressly reserved all their rights against the other defendants in the case.

By the present motion, the plaintiff publishers are pressing their cause of action separately from that of Helen D. Miller. They seek summary judgment against Sam Goody and Portem Distributing, Inc., two of the defendant dealers. Although the publishers’ cause of action has its roots in Sections 1(e) and 101(e) of the copyright law, which sections deal with the mechanical reproduction of music, they seek to recover damages provided for in Section 101(b) of the Act. This latter section, which deals with copyright infringement generally, provides for a minimum recovery of $250 per infringement (with certain enumerated exceptions) where infringement is found but the number of infringing copies sold or published is uncertain. The publishers assert that the dealer defendants infringed their copyrights when they sold the A.F.N. records. The publishers urge that since each defendant admits the sale of some of these records (though the number sold is in dispute), and since under the *180 copyright law intention to infringe is immaterial, they are entitled to a recovery of $250 per copyright from each defendant.

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Bluebook (online)
139 F. Supp. 176, 108 U.S.P.Q. (BNA) 409, 1956 U.S. Dist. LEXIS 3595, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-v-goody-nysd-1956.