Thursday, September 25, 2014

Happy Together? Not Anymore.

According to this story in Billboard, a California judge has granted summary judgment that Sirius/XM has violated the Turtles' copyrights by broadcasting their songs without permission.

Here's the interesting part:  Sirius/XM has been broadcasting Turtles' songs for seven years without paying, and the Turtles knew about it, but didn't sue or even ask for royalties.  

At this point, I'm thinking "laches."  Laches is an equitable doctrine that bars suit where a plaintiff has "slept on his rights."  Typically, at least in patent cases, laches kicks in after six years.  So if I know that somebody's infringing my patent for six years, and I don't do anything about it, not even a nasty letter, then I'm SOL.

However, the Turtles' case wasn't brought under Federal law, because Federal copyright law doesn't apply to sound recordings made before 1972.  (Copyright law is weird).  So the case was brought under California state law.  And since they're seeking statutory damages for the infringement, the case is being brought in law, not in equity.  The result?  Laches doesn't apply.  Here's the relevant passage from the decision.

Sirius XM reasons that Flo & Eddie [the owners of the Turtles catalog] and Sirius XM have been "happy together" for years without any licensing or royalty arrangements, and Flo & Eddie cannot disrupt this practice that Sirius XM has built its "oldies" business around after Flo & Eddie had allowed it for so long.  ...It is undisputed that Flo & Eddie has been aware of Sirius XM's public performance of its sound recordings for over seven years and has never demanded payment or sued Sirius XM regarding the performances prior to this lawsuit. ...However, "the laches defense is unavailable in an action at law for damages 'even [if] combined with the cumulative remedy of declaratory relief.'"  ...This case is, in part, an action at law for damages...; therefore, before reaching the issue of prejudice, the laches defense fails because it is unavailable to Sirius XM in this action.
Slip op. at 15; cites omitted. 

Did not see that coming.


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