ALISON J. NATHAN, District Judge:
On January 14, 2013, this Court issued an opinion in the above-captioned case granting partial summary judgment to Defendant Daniel Morel ("Morel") and denying summary judgment to Plaintiff/Counterclaim Defendant Agence France Presse ("AFP") and Third-Party Counterclaim Defendants Getty Images (US), Inc. ("Getty"), and The Washington Post Company ("the Post") (collectively, "Counterclaim Defendants"). Agence France Presse v. Morel, 934 F.Supp.2d 547, 2013 WL 146035 (S.D.N.Y.2013). On February 8, 2013, Counterclaim Defendants moved for reconsideration of Section E.1 of that decision, (Dkt. No. 200), which discusses statutory damages under § 504(c) of the Copyright Act. See 17 U.S.C. § 504(c). Specifically, Counterclaim Defendants requested reconsideration of the portion of Section E.1 in which the Court concluded that "AFP and Getty are, at most, each liable for a single statutory damages award per work infringed." Morel, 934 F.Supp.2d at 582, 2013 WL 146035, at *29.
At a conference on February 22, 2013, the Court determined that the motion for reconsideration standard had been met and ordered supplemental briefing with regard to the question whether, as a matter of law or fact, Morel could be entitled to recover one statutory award per work infringed from AFP and one from Getty, for a total of two awards per work infringed. Finally, on May 7, 2013, the Court heard oral argument on these supplementary submissions. The Court now concludes that, pursuant to § 504(c) of the Copyright Act and as this action has been structured, pled and litigated, Morel is, at most, entitled to receive one award of statutory
The Court assumes familiarity with the facts of this case and with the opinion now under reconsideration. Having already determined that reconsideration was appropriate, the Court will limit the current discussion to the merits of the precise issue under review.
In relevant part, the Court's summary judgment opinion addressed the question whether an infringer (or group of joint infringers) could be held liable for multiple statutory damages awards based on the infringement of a single copyrighted work if that party was jointly liable with a number of other infringers who were not, themselves, jointly liable with one another. Morel, 934 F.Supp.2d at 579-82, 2013 WL 146035, at *26-29. The Court held that the liability of an individual or group of individuals for the infringement of any single work could not be multiplied by the number of separate end-point infringers with whom that individual or group was jointly liable. Id. at 581-82, at *29 ("The Court concludes that any award of statutory damages against AFP or Getty may not be multiplied based on the number of infringers with whom AFP or Getty is jointly or severally liable.").
At issue on reconsideration is the concluding line of the section of the Court's opinion discussing statutory damages under the Copyright Act, which stated that "AFP and Getty are, at most, each liable for a single statutory damages award per work infringed." Id. Counterclaim Defendants argue that this line could be interpreted as allowing Morel to recover more than one statutory award per work infringed in this action, which they argue is incorrect both as a matter of law and under the facts of this case. Practically speaking, Counterclaim Defendants request that the Court clarify whether they are potentially liable for eight statutory damages awards or for sixteen. More specifically, however, the issue on reconsideration is whether, as a matter of law or fact, Morel could elect to pursue one statutory award per work from AFP, alone, for its individual pre-kill notice conduct and a separate statutory award for that same work from Getty for its individual post-kill notice conduct.
The Court concludes, as a matter of law, that, in cases such as this, a plaintiff seeking statutory damages for copyright infringement may not multiply the number of per-work awards available in an action by pursuing separate theories of individual liability against otherwise jointly liable defendants. As with individually liable infringers, the statute authorizes a single statutory award per work for all infringements in an action against jointly and severally liable infringers, regardless of temporal or causal breaks in the course of those parties' infringement of a given work. Moreover, the Court concludes that
In their motion for reconsideration, Counterclaim Defendants argue that "Morel is, at most, entitled to a single statutory damages award per work infringed for a total of eight (8) statutory damage awards against Defendants jointly." (Defs. Br. 6) They argue that this conclusion is correct as a matter of law and fact because: (1) "[n]othing in the statute, legislative history, or case law supports Morel's view that the joint-and-several liability limitation in § 504(c)(1) is
Morel's original position on this motion was that he could seek to recover one statutory award per work from AFP and Getty (as a unit) for their joint infringement and, in addition, recover another statutory award per work from Getty (alone) for its individually wrongful post-kill notice conduct. In his supplementary brief, however, Morel disclaimed his original position and instead "submitted] that he is entitled to seek one statutory award per work from AFP for its conduct and one statutory award per work from Getty for its individual violations of the Copyright Act, for a total of up to sixteen awards." (Morel Sup. Br. 1 (emphasis in original)) Morel's position now is that he may present and argue to the jury that he is entitled to one award per work against AFP for its individual conduct — "acquiring wrongfully Mr. Morel's images, disseminating [them] and licensing [them] to other parties," (Tr. 6: 15-17) — and a separate award per work against Getty for its post-kill notice conduct, which, Morel argues, constituted "an independent act on [Getty's] part to engage in a series of licensings that it had no right to do." (Tr. 12: 1-3)
"The Copyright Act provides that a copyright owner may elect to receive statutory damages, rather than actual damages, any time before final judgment is rendered." Morel, 934 F.Supp.2d at 579, 2013 WL 146035, at *26 (citing 17 U.S.C. § 504(c)(1)). Specifically, the relevant language of the statute provides that:
17 U.S.C. § 504(c)(1). Pursuant to § 504(c)(2), the maximum award of statutory damages may be increased from $30,000 to $150,000 on a showing of willfulness. 17 U.S.C. § 504(c)(2).
As discussed in the summary judgment opinion, although the "statutory text is not
Morel argues that under the statute, and consistent with this Court's holding, "he should be allowed to seek one statutory award from AFP for its wrongful misappropriation and downstream licensing for every infringed work and one award from Getty for each of Morel's photographs that it licensed after AFP directed Getty to remove the images from all of its systems and to stop using or licensing the works." (Morel Sup. Br. 3-4) The statutory basis for Morel's argument lies in the terms "elect" and "or" — as in, "the copyright owner may elect ... to recover ... an award of statutory damages ... for which any one infringer is liable individually, or for which any two or more infringers are liable jointly and severally," 17 U.S.C. § 504(c)(1) (emphasis added). Under his reading of the statute, the "or" in this clause establishes two distinct awards (individual and joint and several), and the copyright holder may "elect" which of these awards to pursue, even if that means seeking an individual award where a joint and several award is available.
"As with any question of statutory interpretation, we begin with the text of the statute to determine whether the language
Contrary to Morel's position, the best reading of the language of § 504(c)(1) is that the "or," distinguishes between the two factual scenarios in which a copyright holder would be entitled to recover statutory damages for the infringement of his work, rather than that it distinguishes between two types awards or theories of recovery. These factual scenarios are, first, one in which "any one infringer is liable individually," and, second, one in which "two or more infringers are liable jointly and severally." 17 U.S.C. § 504(c)(1); cf. Louis Vuitton Malletier, S.A. v. Akanoc Solutions, Inc., 658 F.3d 936, 946 (9th Cir.2011) ("Stated another way, a plaintiff may receive a single statutory award for all infringements of any one copyrighted work from either (1) any one defendant, where that defendant is separately liable or (2) multiple defendants, where those defendants are jointly and severally liable.").
Morel would have the Court focus, however, on the interplay between the "or," and the preceding statutory term, "elect" — as in, "the copyright owner may elect," 17 U.S.C. § 504(c)(1) (emphasis added). (See Tr. 30: 2-3 ("It is an election that the plaintiff can make, your Honor.")). Under Morel's reading, the "elect[ion]" that the copyright owner is permitted to make is between pursuing an individual or a joint award. The better, and in fact only supportable, reading of the plain language of § 504(c)(1) is that the copyright owner's election is to recover statutory damages, under § 504(c), in lieu of actual damages and profits, under § 504(b). While this is apparent from the language of § 504(c)(1), it is even more clear when considered in conjunction with the remainder of § 504,
Because the statutory language of § 504(c) does not establish two categories of awards from which a plaintiff may make an election, whether an award will be individual rather than joint and several is a question of fact not susceptible to the gamesmanship in which Morel is attempting to engage. If a single individual acting alone infringes a work, the award is individual. If multiple infringers acting together infringe a work, the award is joint and several. Nothing in this proposition or in the statutory language permits a plaintiff to make an election that contravenes fact. Accordingly, the Court concludes that, under § 504(c), if two or more defendants in an action have jointly infringed a single work, the copyright holder may not elect to seek a statutory damages award for that joint conduct against one defendant individually in order to pursue a separate award against another defendant for the same work. As the Court will now discuss, this same conclusion holds true even if there is a causal or temporal break in the infringement.
Even if Morel could establish that there was a causal break in infringement between the pre — and post-kill notice activity, after which Getty engaged in its own separate course of action, Morel would still not be entitled to recover separate statutory awards from AFP and Getty. As a preliminary matter, in light of the fact that Morel now recognizes that § 504(c) does not permit a copyright holder in an action to pursue both a joint and an individual award against a single defendant, (Morel Sup. Br. 1 n. 1), it follows that a jointly liable defendant's additional individual infringement of the same work would not give rise to a new award. That is, if two or more defendants in an action are jointly liable for infringing a work, because the copyright holder cannot elect to hold any single one of those defendants liable for their joint infringement, an additional award for any of those defendants' individual infringement of that same work would necessarily result in the Court impermissibly awarding two awards against a single defendant.
Moreover, this conclusion is logically consistent with the general statutory intent of § 504(c), which contemplates a single per-work award for all infringements in an action and is unconcerned with causal or temporal breaks in infringement. As the Court noted in its previous opinion:
934 F.Supp.2d at 579, 2013 WL 146035, at *26 (internal citations omitted). In line with this general limitation on statutory awards, the Court concluded that the liability of an individual or group ("two or more") of infringers for the infringement of any single work could not be multiplied by the number of separate end-point infringers with whom that individual or group was jointly liable. Id. at 582, at *29 ("The Court concludes that any awards of statutory damages against AFP or Getty may not be multiplied based on the number of infringers with whom AFP or Getty is jointly and severally liable.").
Because jointly and severally liable infringers are treated "the same way" as individually liable infringers, and because neither the number of infringements nor the manner or causal connection of the infringements are pertinent as to individually liable infringers, it follows that a causal or temporal break of the kind Morel describes would have a similar null effect on the calculation of the number of statutory damages awards available to a copyright holder. All of which, in turn, leads back to the central tenet of the Court's summary judgment opinion: that § 504(c) "provides generally for a single award of statutory damages `for all infringements involved in the action,' as to any one work." Morel, 934 F.Supp.2d at 581, 2013 WL 146035, at *28; cf. Walt Disney Co. v. Powell, 897 F.2d 565, 569 (D.C.Cir.1990) ("Both the text of the Copyright Act and its legislative history make clear that statutory damages are to be calculated according to the number of works infringed, not the number of infringements.").
This conclusion is also logically consistent with the overall intent of joint and several liability, which allows a copyright holder to sue less than all of the joint infringers of his work(s), but to account for all joint infringers' acts of infringement in determining the value of the statutory award. See Lime Group LLC, 784 F.Supp.2d at 316-17; EMI Enter. World, Inc. v. Karen Records, Inc., 806 F.Supp.2d 697, 709-711 (S.D.N.Y.2011). Plainly, in cases like this one, involving claims of secondary liability, a copyright holder need not join all infringers as defendants in order for the Court to consider the actions of the non-party infringers in determining where, within the permissible scale, a statutory damages award should fall. See, e.g., Arista Records LLC v. Usenet.com, Inc., No. 07 Civ. 8822(HB)(THK), 2010 WL 3629688, at *5 (S.D.N.Y. Feb. 2, 2010) (during an inquest on damages, after granting summary judgment in plaintiff's favor on direct and secondary liability, the court looked to the actions of the nonparty subscribers of the defendants' file sharing website in determining the proper statutory damages award); Lime Group LLC, 784 F.Supp.2d at 316 ("fact-finder may take into account the number of direct infringers who infringed each of Plaintiffs' copyrighted works"); cf. Bouchat v. Champion Prods., Inc., 327 F.Supp.2d 537, 552-53 (D.Md.2003) (noting that "[s]ection 504(c) (1) speaks of `infringers,' not parties"). Because the award is joint and several, it already accounts for the all of the acts of all joint infringers — that is "for
For this same reason, Morel's argument, and indeed much of the discussion of § 504(c) statutory damages, is flawed in that it presumes that an increase or limit on the number of available statutory damages awards will necessarily result in an increase or limit on the actual recovery. Although this presumption could be true (particularly on either extreme end of the statutorily permissible scale), in general, the factors that determine the statutory damages calculation
As a final matter, even if § 504(c) allowed a plaintiff to isolate what would be joint and several conduct into individual acts of liability, and to seek separate
The simplified facts, in the light most favorable to Morel, are as follows. On January 12, 2010, AFP provided Morel's photos to Getty, who in turn provided them to the various downstream infringers. On the afternoon of January 14, 2010, AFP issued a kill notice "through AFP's wire and on ImageForum, and it was sent to Getty and to Getty's customers who received AFP's content through Getty's feed." (Morel Sup. Br. 7-8) Getty received the kill notice, but nonetheless continued to distribute Morel's photos.
No reasonable fact-finder could determine that any infringement for which Getty is liable could be wholly independent from AFP's infringement. See Fitzgerald Publ'g Co., Inc. v. Baylor Pub. Co., Inc., 807 F.2d 1110, 1116 (2d Cir.1986) (overturning the district court's decision and holding that the defendants were jointly and severally liable for statutory damages as "the infringement flowed from [their] joint action"); Abeshouse v. Ultragraphics Inc., 754 F.2d 467, 472 (2d Cir.1985) (holding that the defendants, a printer and distributor of an infringing poster, were jointly and severally liable for actual damages). Rather, as Counterclaim Defendants note, Getty's course of conduct involves the distribution of "the same photos, obtained from the same source, through the same medium." (Def. Sup. Reply 4). In addition, the Court has already determined that Morel's contention that Getty received the photos from an alternate source was factually unsupported, and it will not revisit that discussion here. See Morel, 934 F.Supp.2d at 572, 2013 WL 146035, at *20. Although Getty's post-kill notice actions may, indeed, speak to willfulness, there is nothing on the record from which a reasonable jury could conclude that the kill notice causally severed the course of infringement such that it could be characterized as "two separate infringements, rather than merely `a series of ongoing discrete infringements.'" Shady Records, Inc. v. Source Enters., Inc., No. 03 Civ. 9944(GEL), 2005 WL 14920, at *21 (S.D.N.Y. Jan. 3, 2005) (quoting Mason v. Montgomery Data, 967 F.2d 135 (5th Cir. 1992) (determining that the "unitary language of `infringement'" as well as the "bundled award" contemplated by § 504(c) revealed Congress' intent to deny any statutory damage award to a copyright holder for a defendant's ongoing infringement "if one of those infringements commenced prior to registration"); accord U2 Home Entm't, Inc. v. Hong Wei Intern. Trading, Inc., No. 04 Civ. 6189(JFK), 2008 WL 3906889, at *14 (S.D.N.Y. Aug. 21, 2008) (rejecting plaintiff's proposal, "require[ing] courts to determine when a series has stopped sufficiently such that the restart constitutes a new series of infringements," as "inferior to the bright-line rule" discussed in Shady, 2005 WL 14920, at *21); cf. Karen Records, 806 F.Supp.2d at 703 ("[F]or the purpose of determining statutory
For the foregoing reasons, pursuant to § 504(c) of the Copyright Act and as this action has been structured, pled and litigated, the Court concludes that Morel is, at most, entitled to receive one award of statutory damages per work infringed in this action. To the extent that the Court's conclusion in Section E.1 of its summary judgment opinion — that "AFP and Getty are, at most, each liable for a single statutory damages award per work infringed," Morel, 934 F.Supp.2d at 582, 2013 WL 146035, at *29 — would allow otherwise under the circumstances of this case, it is superseded by this holding. This Memorandum and Order resolves Dkt. No. 200.
Finally, a firm start-date for trial in this matter having been set for September 16, 2013, (Dkt. No. 214), the parties are hereby ORDERED to submit to the Court, within seven days of this being docketed, a proposed timeline for the submission of the pretrial materials discussed in Rule 5 of this Court's Individual Practices in Civil Cases.
SO ORDERED.