Sanyo Laser Products, Inc. v. Arista Records, Inc.

214 F.R.D. 496, 2003 U.S. Dist. LEXIS 8487, 2003 WL 21181021
CourtDistrict Court, S.D. Indiana
DecidedMay 20, 2003
DocketNo. IP01-1649-C Y/K
StatusPublished
Cited by25 cases

This text of 214 F.R.D. 496 (Sanyo Laser Products, Inc. v. Arista Records, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Sanyo Laser Products, Inc. v. Arista Records, Inc., 214 F.R.D. 496, 2003 U.S. Dist. LEXIS 8487, 2003 WL 21181021 (S.D. Ind. 2003).

Opinion

ENTRY ON RECORD COMPANIES’ MOTION TO COMPEL DISCOVERY AND SANYO LASER COMPANY’S MOTION FOR A PROTECTIVE ORDER

BAKER, United States Magistrate Judge.

In December 2000, Federal Rule of Civil Procedure 26(b)(1) was amended to reflect that parties to litigation “may obtain discovery regarding any matter, not privileged, that is relevant to the claim or defense of any party.” As one of the most controversial of the 2000 amendments, the stated purpose of the amendment was to narrow the scope of discovery. Previous to the amendment, a party could obtain discovery into any matter, not privileged, that is “relevant to the subject matter involved in the pending action.”

Still in its infancy, few courts have addressed the difference between the two standards and how it may impact a party’s ability to obtain discovery. Plaintiff^Counterdefen-dant Sanyo Laser Products, Inc. (“SLP”) contends that the narrower standard prevents Defendants/Counterclaimants (the “Record Companies”) from obtaining discovery via interrogatories, requests for production, and Rule 30(b)(6) deposition testimony. The Court is now called upon to examine this revised discovery standard.

I. Background

This is a copyright infringement case. The Record Companies allege that SLP engaged in copyright infringement of certain sound recordings copyrighted and owned by the Record Companies. Upon the breakdown of negotiations to resolve this matter without litigation, SLP filed a complaint seeking damages and a declaratory judgment ruling that it did not engage in copyright infringement. [First Am. Compl. 111; Docket # 32]. The Record Companies counterclaimed, alleging that SLP and “Does 1 [498]*498through 10 inclusive” (collectively the “Counterdefendant”), without authorization or consent of the Record Companies, manufactured, reproduced, and distributed the Record Companies’ copyrighted sound recordings. [See. Am. Countercl., Hit 22, 26; Docket # 108]. Therefore, the Record Companies’ counterclaims allege copyright infringement in violation of 17 U.S.C. §§ 106, 501, & 602, and various supplemental claims under Indiana state law for theft, conversion, and unfair competition. [Id. at ¶¶ 31-51]. The counterclaim also alleges that “each counterdefendant is the agent of the other and the Counterdefendants have conspired with one another” in engaging in copyright infringement. [Id. at ¶ 23].

The primary focus of this discovery dispute revolves around the Record Companies’ counterclaims in regard to the unnamed “John Doe” counterdefendants. Much of the disputed discovery stems from the Record Companies’ attempt to discover SLP’s business relationship with Sanyo North America, Sanyo Electric Co, Ltd., and Sanyo Sales and Marketing Corporation. [Mot. For Protect. Ord., p. 2]. Specifically, the Record Companies believe that these closely affiliated companies with SLP are liable for “vicarious infringement” of its copyrights in that they may have had knowledge of, or participated in, the alleged infringement. [Mot. to Compel., p. 5]. The remaining discovery disputes revolve around the Record Companies’ discovery into SLP’s own contentions in this case, the nature and extent of the alleged copyright infringement committed by SLP, and a Rule 30(b)(6) notice of deposition served by the Record Companies to explore SLP’s “business relationship” with the claimed related entitles it seeks to establish were involved in the alleged infringement. [Id. at pp. 5-6; Resp. to Mot. For Protect Ord., pp. 1-2, 5]. SLP opposes the sought-after discovery and moves for a protective order on the Rule 30(b)(6) deposition notice, claiming that it is' a belated attempt by the Record Companies to add additional parties to their infringement action, and is beyond the scope of Rule 26(b)(1). [SLP’s Resp to MTC., p. 1; Mot. For Protect. Ord., UH 2, 6].

Two motions are before the Court. First, the Record Companies move to compel discovery to obtain responses to its interrogatories and requests for production of documents. Second, SLP has filed a motion for a protective order regarding the Record Companies’ Rule 30(b)(6) notice of deposition. For the reasons set forth below, the Record Companies’ motion to compel is GRANTED, and SLP’s motion for a protective order is DENIED.

II. Discussion

A. Rule 26(b) Discovery Standard

1. 2000 Amendments

Rule 26(b)(1) was amended to narrow the scope of discovery to compel the parties to focus on discovering information that is relevant to their case’s claims and defenses. The rule now permits discovery into “any matter, not privileged, that is relevant to the claim or defense of any party.” Davenport v. Indiana Masonic Home Foundation, Inc., 2003 WL 1888986, *3 (S.D.Ind. Mar.27, 2003), quoting Rule 26(b)(1). Previously, discovery was broadly defined in that information was generally discoverable if it was relevant to the subject matter involved in the pending action. See, e.g., Tax Track Systems Corp. v. New Investor World, Inc., 2002 WL 31473818, *13 n. 11 (N.D.Ill.2002) (prior to December 1, 2000, “[p]arties may obtain discovery regarding any matter, not privileged, which is relevant to the subject matter involved in the pending action, whether it relates to the claim or defense of the party seeking discovery or to the claim or defense of any other party____”); Oppenheimer Fund, Inc. v. Sanders, 437 U.S. 340, 351, 98 S.Ct. 2380, 57 L.Ed.2d 253 (1978) (“The key phrase in this definition — ‘relevant to the subject matter involved in the pending action’ — has been construed broadly to encompass any matter that bears on, or that reasonably could lead to other matter that could bear on, any issue that is or may be in the case.”). The purported purpose of the amendment was not only to narrow the scope of discovery, but also to address the rising costs and delay of discovery. See Graham v. Casey’s General Stores, 206 F.R.D. 251, 253 (S.D.Ind.2002); Advisory Committee’s Notes to 2000 Amendments to Fed.R.Civ.P. 26.

[499]*499Under the revised rule, parties are still able to obtain discovery that is relevant to the subject matter involved in the pending action if good cause is shown. See White v. Kenneth Warren & Son, Ltd., 203 F.R.D. 364, 366 (N.D.Ill.2001) (“For good cause, the court may order discovery of any matter relevant to the subject matter involved in the action.”); Advisory Committee’s Note to 2000 Amendments to Fed.R.Civ.P. 26 (“The court, however, retains authority to order discovery of any matter relevant to the subject matter involved in the action for good cause.”). The “good cause” concept is meant to be flexible. See, e.g., Hill v. Motel 6, 205 F.R.D. 490, 492 (S.D.Ohio 2001) (“The good cause standard is meant to be flexible, but the party seeking such discovery should ordinarily be able to articulate a reason for believing it is warranted”).

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214 F.R.D. 496, 2003 U.S. Dist. LEXIS 8487, 2003 WL 21181021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanyo-laser-products-inc-v-arista-records-inc-insd-2003.