Wnet v. Aereo, Inc.

871 F. Supp. 2d 281, 2012 WL 1850911
CourtDistrict Court, S.D. New York
DecidedMay 18, 2012
DocketNo. 12 Civ. 1543 (AJN)
StatusPublished
Cited by5 cases

This text of 871 F. Supp. 2d 281 (Wnet v. Aereo, Inc.) 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
Wnet v. Aereo, Inc., 871 F. Supp. 2d 281, 2012 WL 1850911 (S.D.N.Y. 2012).

Opinion

OPINION

ALISON J. NATHAN, District Judge.

Plaintiffs, a group of corporate entities engaged in the production, marketing, distribution, and transmission of television programs, filed a complaint against Defendant Aereo, Inc. (“Aereo”) contending that Aereo’s services are unlawful. (Compl. ¶¶ 1-5, 10-18). Aereo, according to Plaintiffs, “take[s] broadcast television signals for the New York-area television stations ... and retransmits them over the Internet to Aereo subscribers.” (Compl. ¶ 1). Plaintiffs, allegedly the holders of the copyrights on at least some of the programs that Aereo rebroadcasts, view Aereo’s activities as violating their rights in this material. (Compl. ¶ 19).

In particular, Plaintiffs assert three causes of action, styled as “Counts.” Counts I and II assert liability for, respectively, infringement of Plaintiffs’ exclusive rights of public performance and exclusive rights of reproduction under the Copyright Act, 17 U.S.C. § 101 et seq. (Compl. ¶¶ 42-58). Count III is brought “in the alternative to Count I” and alleges that Aereo is “guilty of unfair competition under the common law of the State of New York.” (Compl. ¶ 60). Plaintiffs claim that “by commercially exploiting Plaintiffs’ programming and broadcasting infrastructure without authorization,” Aereo is “unfairly exploiting Plaintiffs’ property interests in their audiovisual works for Aereo’s own commercial benefit and in bad faith.” (Compl. ¶ 60).

Aereo moves under Federal Rule of Civil Procedure 12(c) for judgment on the pleadings on Count III. (Def. Mot. at 1-2). Aereo argues that Plaintiffs’ unfair competition claim is one that seeks to vindicate [283]*283rights equivalent to those provided by the general scope of copyright law and is therefore preempted under 17 U.S.C. § 301, the Copyright Act’s express preemption provision. Plaintiffs’ opposition to Aereo’s motion makes clear that their “unfair competition claim for non-public performances is an alternative to their main claim under federal copyright law based on public performances,” in the event that the Court concludes that Aereo’s service does not infringe Plaintiffs’ copyrights because it involves only private performances. (Pis. Opp. at 1-2). For purposes of this motion the Court therefore assumes, but does not decide, that Aereo’s service involves a private performance not actionable under the Copyright Act.

Accordingly, Aereo’s motion turns exclusively on a question of statutory interpretation — apparently one of first impression — regarding the breadth of preemption under § 301: does a state law unfair competition claim founded on the private performance of copyrighted works seek to vindicate rights that fall into the general scope of the exclusive rights created by the Copyright Act? The Court concludes that it does and grants Aereo’s Motion for Judgment on the Pleadings.

I. LEGAL BACKGROUND ON PREEMPTION UNDER § 301

A brief survey of preemption under the Copyright Act frames the issue. Section 301(a) provides for preemption of state law causes of action that seek to protect rights “equivalent to” the exclusive rights specified by the “general scope” of copyright protection. 17 U.S.C. § 301(a). In relevant part, the statute provides that

all legal or equitable rights that are equivalent to any of the exclusive rights within the general scope of copyright as specified by section 106 ... in works of authorship that ... come within the subject matter of copyright .. are governed exclusively by this title. Thereafter, no person is entitled to any such right or equivalent right in any such work under the common law or statutes of any State.

17 U.S.C. § 301(a). A parallel provision, § 301(b), makes clear that the Copyright Act does not preempt state laws governing “activities violating legal or equitable rights that are not equivalent to any of the exclusive rights within the general scope of copyright as specified by section 106.” 17 U.S.C. § 301(b).

Section 106, as these provisions suggest, articulates the exclusive property rights Congress has chosen to provide in copyrighted works, including “(1) to reproduce the copyrighted work;” “(2) to prepare derivative works based upon the copyrighted work;” “(3) to distribute copies or phonorecords of the copyrighted work to the public;” “(4) to perform the copyrighted work publicly;” and “(5) to display the copyrighted work publicly.” 17 U.S.C. § 106. An individual who violates one or more of the rights articulated in § 106, as cabined by subsequent sections of the Copyright Act governing principles such as fair use, see, e.g., 17 U.S.C. § 107, has engaged in copyright infringement. See 17 U.S.C. § 501(a); S.A.R.L. Louis Feraud Int’l v. Viewfinder, Inc., 489 F.3d 474, 479 (2d Cir.2007).

The Second Circuit has construed § 301 to require application of a two prong test to determine if a state law claim is preempted. First, courts consider the “subject matter requirement” and assess whether the state law claim asserts rights in the type of works protected by the Copyright Act. Briarpatch Ltd., L.P. v. Phoenix Pictures, Inc., 373 F.3d 296, 305 (2d Cir.2004). Second, under the “general scope requirement,” the rights provided by the state law claim must be “equivalent to one of the bundle of exclusive rights already protected by copyright law.” Id. at 305. If both prongs are met, the state law claim is preempted.

[284]*284The general scope requirement is satisfied “only when the state-created right may be abridged by an act that would, by itself, infringe one of the exclusive rights provided by federal copyright law. In other words, the state law claim must involve acts of reproduction, adaptation, performance, distribution or display.” Id. As part of the general scope inquiry, the Second Circuit also applies an “extra element test” that provides that even if the state law claim is one involving acts of reproduction, adaptation, performance, distribution, or display, the claim will not be preempted if it “include[s] any extra elements that make it qualitatively different from a copyright infringement claim.” Id. at 305-06.

The question before the Court is whether § 301 is properly construed to preempt Plaintiffs’ New York law unfair competition claim, argued in the alternative, which seeks to attach liability for the private performance of Plaintiffs’ copyrighted works.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Greer v. Fox Corporation
S.D. New York, 2022
Fioranelli v. CBS Broadcasting Inc.
232 F. Supp. 3d 531 (S.D. New York, 2017)
American Broadcasting Companies, Inc. v. Aereo, Inc.
874 F. Supp. 2d 373 (S.D. New York, 2012)

Cite This Page — Counsel Stack

Bluebook (online)
871 F. Supp. 2d 281, 2012 WL 1850911, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wnet-v-aereo-inc-nysd-2012.