Judge Gutierrez of the federal district court in the Central District of California recently granted summary judgment in favor of the plaintiffs in a copyright lawsuit against the satellite radio company Sirius XM. The case is Flo & Eddie Inc. v. Sirius XM Radio Inc., CV 13-5693 PSG (C.D. Cal. 2014). In essence, the plaintiffs (who were members of the 1960's band "The Turtles") successfully argued that they were entitled to royalty payments for public performances and reproductions of their songs on the satellite radio stations of Sirius XM, under California copyright laws.
Why am I mentioning this California-based case? Mostly because it reinforces my opinion of the case pending against Pandora internet radio in New York, that I discussed back in April of this year. Like the New York case, the songs at issue in Flo & Eddie were recorded before 1972 (for example, the Turtles recorded the psychedelic-pop hit "Happy Together" in 1967), which would put them outside the protection of the federal Copyright Act. However, to the extent that the federal Copyright Act doesn't pre-empt some provisions of state-based copyright laws, copyright owners may find more expansive protection of their rights on the state level and in the state courts.
The Flo & Eddie decision cuts both ways for New York's Capitol Records, LLC v. Pandora Media, Inc. On the one hand, the former decision is based on one federal judge's interpretation of California law; not New York law. However, to the extent our copyright protections may be similar to those of California, Capitol Records may take heart. Furthermore Judge Gutierrez's decision was a grant of summary judgement, which is a very strong award by a court (it is an "automatic" win for the plaintiff without going through trial). That remedy isn't rare, but it is only granted under federal law "if the [party] shows that there is no genuine dispute as to any material fact and the [party] is entitled to judgment as a matter of law.” However, insofar as Capitol Records filed their case in New York state court, summary judgment standards under New York state civil procedure and common law will apply. This might not be as generous as the federal standard, since section 3212 of the Civil Practice Law and Rules state that "[t]he motion [for summary judgment] will be granted if, upon all the papers and proof submitted, the cause of action or defense shall be established sufficiently to warrant the court as a matter of law in directing judgment in favor of any party ... [but] the motion shall be denied if any party shall show facts sufficient to require a trial of any issue of fact."
Nevertheless, this federal court ruling in California is significant as the first ruling on these types of issues in the many recent artist-and-record-label cases against internet and satellite radio companies. And, as the New York Times reported, it is "a case that could have wide implications for the digital music business."
