Duchess Music Corporation et al., Petitioners-appellants, v. Martin Stern et al., Respondents-appellees

United States Court of Appeals, Ninth Circuit. - 458 F.2d 1305

March 13, 1972.Rehearing Denied April 26, 1972

Robert C. Osterberg (argued), John S. Clark, of Abeles & Clark, New York City, Pasquale R. Cheche, of Meadow, Cheche, Thrasher & Zalut, Phoenix, Ariz., for petitioners-appellants.

B. Allen Millstone (argued), Hollywood, Cal., William C. Loftus, Phoenix, Ariz., for respondents-appellees.

Before KILKENNY and CHOY, Circuit Judges, and BYRNE,* Senior District Judge.

CHOY, Circuit Judge:

1

This interlocutory appeal requires construction of the remedial and compulsory license provisions of the Copyright Act of 1909, 17 U.S.C. Secs. 1(e) and 101(c), (d) and (e). Appellants are a group of music companies which own the copyrights to musical compositions by such diverse and well-known musicians as Elvis Presley, Johnny Cash, Burt Bacharach, Mick Jagger, Joni Mitchell, and Buck Owens. They allege that appellee Pearl Rosner and others are music pirates who make cassette tape recordings of phonograph records legitimately issued by appellants from copyrighted compositions. After a nationwide search, appellants discovered a major pirate haven in Phoenix, Arizona. With the aid of private investigators and the local police, they obtained sufficient information to secure from the District Court an ex parte order to show cause, a temporary restraining order and a writ of seizure, all directed against the alleged pirates.

2

The writ of seizure, issued pursuant to 17 U.S.C. Sec. 101(c) and the Rules of Practice issued by the Supreme Court,1 directed the marshal to seize

3

". . . any and all parts of instruments serving to reproduce mechanically plaintiffs' copyrighted musical works and all means for making the same, comprehending labels, cartridges, tape recordings and machinery utilized in the manufacturing process, including Livingston recording machine-side winder, Jagerberg-Werke AG brand tape machines, Weldotron brand equipment, GRT tape winders and Craig testing tape players . . ."

4

The marshal seized and impounded 25,000 complete tape recordings and master recordings, which serve to reproduce mechanically appellants' copyrighted musical compositions; blank tapes and cartridges designed for use in the manufacture of tape recordings; printed labels; machinery used to transfer the sounds onto blank tapes; packaging and promotional materials; and other equipment and machinery utilized in the manufacturing process. Appellants filed the requisite bond.

5

Only appellee Rosner, who does business as National Manufacturing Company, appeared and contested the seizure order. She objected to the order's scope on the ground that the statutory authority for seizure and the Supreme Court rules implementing that authority contemplate the seizure and impoundment only of items of ". . . such nature that they would be the last item of identifiable character used to make an infringing copy." She also contended that since she had filed a statutory Notice of Intention to Use under 17 U.S.C. Sec. 101(e), after the writ of seizure was issued and executed but before the hearing on the preliminary injunction, injunctive relief prohibiting her from using appellants' copyrighted works was unavailable.

6

The District Court agreed with Rosner on each count. It ordered the return of all ". . . tape recording equipment and machinery, as well as . . . all blank tapes, cartridges, cassettes, labels or any unmarked or unprinted packaging materials. On the other hand, all property which either embodies a mechanical and/or electronic impression of plaintiff publishers' copyrighted works or any packaging or promotional devices identifying or referring to same are still subject to impoundment." The District Court also held that Rosner could avail herself of the compulsory license scheme although she had previously illegally infringed appellants' copyrights and although she intended to continue duplicating the copyrighted material.

7

The District Court later amended its order, nunc pro tunc, to allow an appeal under 28 U.S.C. Sec. 1292(b). The court also stayed its order pending the outcome of this appeal. The seized materials have not been returned to Rosner. We reverse the District Court on both counts and remand.

8

* The scope of the seizure order

9

The Copyright Act of 1909 provides for injunctive and monetary relief for infringement, and also for impoundment and destruction of infringing articles."If any person shall infringe the copyright in any work protected under the copyright laws of the United States such person shall be liable:


1

214 U.S. 533 (1909), as amended by 307 U.S. 652 (1939). See 17 U.S.C. pp. 276-281

2

Rules 2 and 3 refer to ". . . infringing copies, records, plates, molds, matrices, etc., or other means for making the copies alleged to infringe the copyright . . ." Rule 2. Rule 9 and Rule 3, in a second sentence, omit the "etc." Rules 6 and 11 refer to "infringing articles" and "the articles seized."

3

"Ejusdem generis, of the same kind, class or nature. In the construction of laws, wills and other instruments, the 'ejusdem generis rule' is that where general words follow an enumeration of person or things, by words of a particular and specific meaning, such general words are not to be construed in their widest extent, but are to be held as applying only to persons or things of the same general kind or class as those specifically mentioned." Black's Law Dictionary (4th ed. 1968) However, ejusdem generis is not to be applied to render general words meaningless, United State v. Alpers, 338 U.S. 680, 682, 70 S.Ct. 352, 94 L.Ed. 457 (1950), or to thwart Congress' intent, United States v. Gilliland, 312 U.S. 86, 93, 61 S.Ct. 518, 85 L.Ed. 598 (1941)

4

The Committee commented only that "some legislation of this kind is necessary." H.R.Rep. No. 2222, 60th Cong., 2d Sess., 7 (1909). All future references to this Report will be to H.R.Rep. (1909)

5

See Hearing on S. 6330 and H.R. 19853 before the Senate and House Committees on Patents, conjointly, 59th Cong., 1st Sess., 146 (December, 1906)

6

See, in the December hearings, supra, n. 8, pp. 179-180, and in the Hearings on S. 2499 before the Senate and House Committees on Patents, conjointly, 60th Congress, 1st Sess., (March, 1908), pp. 37, 123, and 139

This was not the judicial practice before the Copyright Act, e. g., Morrison v. Pettibone, 87 F. 330 (N.D. Ill. 1897). However, the 1909 statute was a thorough revision of American copyright law, and the legislative hearings demonstrate that Congress was cognizant of the innocent use problem.

7

While the Copyright Act was intended in some way to overrule White-Smith Music Publishing Co. v. Apollo Co., 209 U.S. 1, 28 S.Ct. 319, 52 L.Ed. 655 (1908), Note, "Sound Recordings, Records, and Copyright: Aftermath of Sears and Compco," 33 Albany L.Rev. 371, 372 (1969), it did not permit phonograph records to be copyrighted. Capitol Records, Inc. v. Mercury Record Corp., 109 F.Supp. 330 (S.D.N.Y.1952) aff'd 221 F.2d 657 (2d Cir. 1955). However, if the underlying work is copyrighted, there may be an infringement of that copyright by duplicating the record. Shapiro, Bernstein & Co. v. Goody, 248 F.2d 260 (2d Cir. 1957). The Congress has at last remedied this anomaly by creating an exclusive right in the copyright holder "[t]o reproduce and distribute to the public . . . reproductions of the copyrighted work if it be a sound recording . . ." S. 646, 92nd Cong., 1st Sess., enacted October 15, 1971. This new right is not retroactive

8

Given our view that exact duplication is not "similar use," we need not decide when a prospective licensee must invoke the compulsory license scheme and file his notice of intention to use

9

See Ball, The Law of Copyright and Literary Property 461 (1944); Note, "Battle over the Compulsory License: Mechanical Recording of Music," 36 Colum.L.Rev. 501, 503 (1964); Diamond, "Copyright Problems of the Phonograph Industry," 15 Vand.L.Rev. 419, 426 (1962); Note, 13 Rutgers L.Rev. 365, 368 (1958)

10

It has long been the law in this Circuit that "[o]ne cannot copy the substance of another's work without infringing his copyright." Benny v. Loew's Inc., 239 F.2d 532, 537 (9th Cir. 1956). See also Berlin v. E. C. Publications, 329 F.2d 541 (2d Cir. 1964); Columbia Pictures Corp. v. National Broadcasting Co., 137 F.Supp. 348 (S.D. Calif. 1955). Under the Copyright Act, if the copying is "substantial," it is an infringement. Comment, "Piracy or Parody: Never the Twain," 38 U.Col.L.Rev. 550 (1966). Rosner's copying is exact