Sirius XM Radio Does Not Infringe Copyrighted Sound Recordings: S.D. Fla. | Practical Law

Sirius XM Radio Does Not Infringe Copyrighted Sound Recordings: S.D. Fla. | Practical Law

In Flo & Eddie, Inc. v. Sirius XM Radio, Inc., the US District Court for the Southern District of Florida split with California and New York district court precedents in granting defendant Sirius XM Radio, Inc.'s motion for summary judgment dismissing The Turtles' former band members' putative class action claiming that Sirius's satellite broadcasts infringed their common law copyrights in "Happy Together" and other sound recordings.  

Sirius XM Radio Does Not Infringe Copyrighted Sound Recordings: S.D. Fla.

Practical Law Legal Update 1-616-6866 (Approx. 3 pages)

Sirius XM Radio Does Not Infringe Copyrighted Sound Recordings: S.D. Fla.

by Practical Law Intellectual Property & Technology
Published on 23 Jun 2015USA (National/Federal)
In Flo & Eddie, Inc. v. Sirius XM Radio, Inc., the US District Court for the Southern District of Florida split with California and New York district court precedents in granting defendant Sirius XM Radio, Inc.'s motion for summary judgment dismissing The Turtles' former band members' putative class action claiming that Sirius's satellite broadcasts infringed their common law copyrights in "Happy Together" and other sound recordings.
On June 22, 2015, in Flo & Eddie, Inc. v. Sirius XM Radio, Inc., the US District Court for the Southern District of Florida entered summary judgment dismissing plaintiff Flo & Eddie, Inc.'s putative class action against Sirius XM Radio, Inc. for common law copyright infringement, ruling that the plaintiff did not have exclusive rights of public performance in its pre-1972 sound recordings under Florida common law (No. 13-23182-CIV-Gayles/Turnoff (S.D. Fla. June 22, 2015)). This decision is the last of three separate class action lawsuits that Flo & Eddie, Inc. filed against Sirius in an attempt to recover copyright royalties under state copyright law. Unlike the district court decisions rendered under California and New York law, the Southern District of Florida ruled that there is no exclusive copyright of public performance under Florida common law.
The plaintiff Flo & Eddie, Inc. was formed by two original members of the band, The Turtles, and owns the copyrights in the band's pre-1972 sound recordings. Sirius XM Radio, Inc. is a satellite radio provider that operates a nationwide broadcast service with a vast library of digital music. Sirius' databases of this music, and backup copies, contain post and pre-1972 sound recordings. Sirius's technology requires it to make buffer copies, copies ranging from a millisecond to twenty seconds, of songs to broadcast via satellite. Sirius also broadcasts identical programming to subscribers in every state in the continental US due to licenses with the FCC and certain technological restraints.
On September 3, 2013, Flo & Eddie filed nearly identical class action lawsuits asserting various claims against Sirius in California (Flo & Eddie, Inc. v. Sirius XM Radio, CV-13-5693 (PSG), (C.D. Cal. Sept. 22, 2014)), New York (Flo & Eddie, Inc. v. Sirius XM Radio, Inc., 62 F.Supp.3d 325 (S.D.N.Y. 2014)), and this suit in the Southern District of Florida. Flo & Eddie claimed that Sirius infringed its copyrights in the sound recordings by:
  • Publicly performing the recordings.
  • Reproducing the recordings via the back-up and buffer copies.
Sirius moved for summary judgment in all three lawsuits.
Unlike the district courts of the Central District of California (which granted Flo & Eddie's motion for summary judgment of common law infringement) and Southern District of New York (which denied Sirius' motion for summary judgment of dismissal), the Southern District of Florida granted Sirius's motion for summary judgment because it found no exclusive right of public performance of sound recordings under controlling Florida law. The court explained that:
  • Unlike California and New York, there is neither specific Florida legislation covering sound recording property rights nor any governing case law.
  • The Florida legislature, not the courts, should decide whether to create this new property right.
The court also found that Sirius' back-up and buffer copies were not unlawful reproductions because these copies were:
  • Neither maintained by Sirius nor publicly accessible, unlike a complete or significant portion of a compact disc or record.
  • Immediately discarded after use.
  • Not full length copies of the recording.
Because Flo & Eddie's remaining claims were all based on its alleged common law copyright claims and the court ruled that Sirius had not infringed any of Flo & Eddie's copyrights, the court granted Sirius' motion for summary judgment dismissing the action.