United States v. Lee William Sachs

801 F.2d 839, 94 A.L.R. Fed. 85, 231 U.S.P.Q. (BNA) 197, 1986 U.S. App. LEXIS 31137
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 23, 1986
Docket86-1021
StatusPublished
Cited by54 cases

This text of 801 F.2d 839 (United States v. Lee William Sachs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Lee William Sachs, 801 F.2d 839, 94 A.L.R. Fed. 85, 231 U.S.P.Q. (BNA) 197, 1986 U.S. App. LEXIS 31137 (6th Cir. 1986).

Opinion

CONTIE, Senior Circuit Judge.

Defendant-Appellant Lee William Sachs appeals from a jury verdict finding him guilty of aiding and abetting in the infringement of copyrights in motion pictures in violation of 17 U.S.C. §§ 106(3), 506(a) and 18 U.S.C. § 2(a), and guilty of conspiring to infringe copyrights in motion pictures in violation of 18 U.S.C. § 371 and 17 U.S.C. § 506(a). For the reasons set forth below, we affirm the convictions.

I.

In April 1979, a five-count indictment was issued against defendant Sachs and co-defendant Irving Stollman. The indictment alleged that Sachs and Stollman, and others unknown, had conspired to infringe copyrights in motion pictures from December 1, 1977 to November 14, 1978. It further alleged that Sachs and Stollman specifically infringed the copyrights of three movies: “Smokey and the Bandit,” “Shampoo” and “Blazing Saddles.” A jury trial was not conducted until September 1985, however, because appellant Sachs had taken up residence in Florida under a different name and was not discovered until sometime in 1985. In the meantime, the charges against co-defendant Stollman were dismissed. The following facts were adduced at trial.

FBI agent James Owens arranged to meet with the defendant on November 11, 1978 to discuss purchasing videotaped movies. Agent Owens was working undercover as part of an investigation into the manufacture of “pirate” movies, using the name Rubin Stern. Stollman picked up Owens at a hotel and drove him to an apartment which contained numerous pieces of equipment used for recording and duplicating videotapes as well as “master tapes” 1 on s/4-inch tape and boxes of blank video cassette tapes. Defendant Lee Sachs was present at the apartment.

Defendant then provided agent Owens with a list of movies for sale. Owens first ordered three films, “Smokey and the Bandit,” “Shampoo” and “Blazing Saddles.” These films were to be ready the next day for a price of $60 each. Owens then told Sachs, as part of a cover-up story, that he was hoping to purchase 50 to 100 movies per week for export to the Middle East. As a result, Owens reached a second agreement with Sachs to purchase 20 or 30 additional movies, on a trial basis, for this imaginary export business. He testified that the defendant told him that it would take approximately one week “to duplicate” that number of films. Owens gave Sachs a $1500 check as a deposit for the large order.

Owens returned to the same apartment on the following day to pick up the films he had initially ordered, giving Sachs $260 in cash. In exchange, Owens received copies of the film on video cassette tape and a receipt for this purchase signed by Sachs in Owens’ presence.

On November 14, 1978, FBI agents seized many items from Sachs’ apartment pursuant to a search warrant based on Owens’ undercover work. 2 Sachs was ar *842 rested in Florida six years later following a domestic dispute with Karyn Rose, the woman he had been living with. At that time, Sachs was using a different name and was carrying different documents containing false identification. Karyn Rose testified that Sachs had said he used false identification because he was a “felon.”

The jury returned a verdict on December 13, 1985, finding Sachs guilty on each of the substantive counts as well as the conspiracy count. The defendant raises several issues on appeal.

II.

A. “FIRST SALE”

As his initial assignment of error, the defendant asserts that there was insufficient evidence to convict him of the charged offenses. In particular, the defendant argues that the goverment failed to meet its burden of proving that the particular films purchased by Owens had not been the subject of a “first sale.” In order to address the merits of this argument, we must review the “first sale” doctrine and relevant statutory provisions.

Under 17 U.S.C. § 106(3), the owner of a copyright has the exclusive right to “distribute copies ... of the copyrighted work to the public by sale or other transfer of ownership, or by rental, lease, or lending— ” 17 U.S.C. § 506(a) establishes a criminal offense for “[a]ny person who infringes a copyright willfully and for purposes of commercial advantage or private financial gain_” 17 U.S.C. § 501 provides that an individual is an “infringer” if he “violates any of the exclusive rights of the copyright owner....” Therefore, an individual who duplicates and sells for profit a copyrighted work which he does not own is infringing on the copyright owner’s exclusive rights. In the instant case, the defendant was charged with infringing copyrighted works by distributing by sale copies of the copyrighted motion pictures.

Implicit in the act of “infringement,” is the requirement that the particular copy of the copyrighted work be an unauthorized or illegally obtained copy. In other words, the law does not forbid an individual from selling, or otherwise transferring, a copy of a copyrighted work which was lawfully obtained or lawfully manufactured by that individual. If the copyright owner has given up title to a copy of a work, the owner no longer has exclusive rights with respect to that copy. This is known as the “first sale doctrine,” which was originally contained in 17 U.S.C. § 27, see United States v. Powell, 701 F.2d 70, 72 (8th Cir.1983), and has since become a “judicial gloss” on the criminal liability provisions for copyright infringement. United States v. Atherton, 561 F.2d 747, 750 (9th Cir.1977).

The Ninth Circuit has held that the government has the burden, as part of its burden of proving the defendant guilty beyond a reasonable doubt, of establishing that the copy which the defendant distributed was not subject to a first sale; i.e., that the defendant did not, in fact, distribute a lawfully obtained copy. See United States v. Moore, 604 F.2d 1228, 1232-33 (9th Cir.1979); Atherton, 561 F.2d at 750; United States v. Wise, 550 F.2d 1180, 1188-91 (9th Cir.), cert. denied,

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Bluebook (online)
801 F.2d 839, 94 A.L.R. Fed. 85, 231 U.S.P.Q. (BNA) 197, 1986 U.S. App. LEXIS 31137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-lee-william-sachs-ca6-1986.