Spanski Enterprises, Inc. v. Telewizja Polska, S.A.

883 F.3d 904
CourtCourt of Appeals for the D.C. Circuit
DecidedMarch 2, 2018
Docket17-7051
StatusPublished
Cited by18 cases

This text of 883 F.3d 904 (Spanski Enterprises, Inc. v. Telewizja Polska, S.A.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spanski Enterprises, Inc. v. Telewizja Polska, S.A., 883 F.3d 904 (D.C. Cir. 2018).

Opinion

Tatel, Circuit Judge:

When the owner of a foreign website, acting abroad, uploads video content in which another party holds exclusive United States public performance rights under the Copyright Act and then directs the uploaded content to United States viewers upon their request, does it commit an infringing "performance" under the Act? If so, is it protected from liability by the principle-unquestioned here-that the Act has no extraterritorial application? Answering these questions "yes" and "no," the district court concluded that Polish broadcaster Telewizja Polska was, by transmitting fifty-one episodes of certain Polish-language television programs into the United States via its online video-on-demand *907 system, liable for infringing copyrights held by a company, Spanski Enterprises, Inc., that enjoys exclusive North and South American performance rights in the episodes. Telewizja Polska appeals this determination, as well as the district court's imposition of statutory damages of $60,000 per episode, for a total of $3,060,000. For the reasons that follow, we affirm as to both liability and damages.

I.

Appellant Telewizja Polska, S.A. ("TV Polska"), Poland's national public television broadcaster, owns, operates, and creates content for several Polish-language television channels, including one now called TVP Polonia. TV Polska entered into a licensing agreement with Canadian corporation Spanski Enterprises, Inc. ("Spanski"), appellee here, granting it North and South American broadcasting rights in TVP Polonia content. Following a legal dispute over the scope of these rights, the parties signed a 2009 settlement agreement establishing that Spanski has the exclusive right to perform TVP Polonia content, including over the internet, in North and South America.

In order to protect Spanski's exclusive rights, TV Polska-which makes its programming publicly available through a video-on-demand feature on its website-employs technology that prevents internet users in North and South America from accessing TVP Polonia content though its website. Known as geoblocking, this technology allows a website owner to digitally embed territorial access restrictions into uploaded content. When an internet-enabled device attempts to access restricted content, the geoblocking system compares the device's unique internet protocol (IP) address to a third-party database that reveals which IP addresses are associated with which countries. If the device's IP address is associated with a country subject to restricted access, the device cannot access the content.

Two groups of TV Polska employees are responsible for ensuring that each episode uploaded to the website is programmed to include the appropriate territorial restrictions. The first group-the audiovisual technicians working in what TV Polska calls its "Workflow System"-converts each episode into one or more digital video formats in accordance with episode-specific instructions they receive from the second group, the program editors working in TV Polska's "Content Management System." For example, such instructions might direct a technician working on a particular episode to create one format that is pay-per-view and one that is not or, as in this case, to create only formats that are geoblocked from specified countries. Even if a technician ignores an instruction to create a geoblocked format for a given episode in the Workflow System, though, a device with an IP address associated with a given country can access the episode only if the instructions generated in the Content Management System also specify that access from that country is permitted. In other words, an episode is geoblocked either if the technicians working in the Workflow System create only territorially restricted digital formats of that episode or if the program editors assign the episode a territorial restriction in the Content Management System. During the period relevant here, the default territorial access setting assigned to each TVP Polonia episode in the Content Management System was "minus America," meaning that the episode would be automatically geoblocked from devices with North or South American IP addresses unless a program editor affirmatively selected a different instruction from a drop-down menu, regardless of *908 what the technicians did in the Workflow System.

In late 2011, Spanski's attorneys discovered that certain TVP Polonia content was not properly geoblocked, leaving it available to North and South American internet users through TV Polska's video-on-demand system. This content included fifty-one individual episodes that Spanski had registered with the United States Copyright Office and in which it held valid and exclusive United States copyrights. From December 2011 to March 2012, Spanski's attorneys and website developer, between them, viewed each of these fifty-one episodes, at least in part, on TV Polska's website.

Spanski then sued TV Polska in federal district court, asserting its exclusive right under the Copyright Act, 17 U.S.C. § 101 et seq. , to "perform" the fifty-one episodes "publicly," id. § 106(4). Following a five-day bench trial, the district court found that "the 51 episodes copyrighted by [Spanski] were available and viewed in the [United States] via [TV Polska's] website" during the period of infringement, see Spanski Enterprises, Inc. v. Telewizja Polska S.A. , 222 F.Supp.3d 95 , 105 (D.D.C. 2016), and that "[t]here [was] no evidence that a failure in [TV Polska's] geoblocking system" caused the episodes to become available, id. at 108 . Rather, the district court found, the episodes became available in the United States because "[TV Polska] employees took ... volitional action[ ]" by removing the episodes' default "minus America" territorial restriction in the Content Management System and creating non-geoblocked digital formats of the episodes in the Workflow System. Id. at 106 .

Based largely on these findings, the district court held TV Polska liable under the Copyright Act for infringing Spanski's exclusive United States performance rights in the fifty-one episodes. Id. at 111-12 .

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Bluebook (online)
883 F.3d 904, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spanski-enterprises-inc-v-telewizja-polska-sa-cadc-2018.