Source: https://law.justia.com/cases/federal/appellate-courts/F2/686/234/414942/
Timestamp: 2019-10-16 00:02:27
Document Index: 581512909

Matched Legal Cases: ['§ 2314', '§ 2312', '§ 2', '§ 7', '§ 2314', '§ 2314', '§ 2314']

United States of America, Plaintiff-appellee, v. Ralph E. Smith, D/b/a Televideo Corporation, Defendant-appellant, 686 F.2d 234 (5th Cir. 1982) :: Justia
Justia › US Law › Case Law › Federal Courts › Courts of Appeals › Fifth Circuit › 1982 › United States of America, Plaintiff-appellee, v. Ralph E. Smith, D/b/a Televideo Corporation, Defend...
United States of America, Plaintiff-appellee, v. Ralph E. Smith, D/b/a Televideo Corporation, Defendant-appellant, 686 F.2d 234 (5th Cir. 1982)
US Court of Appeals for the Fifth Circuit - 686 F.2d 234 (5th Cir. 1982) Sept. 2, 1982
As a result, a more specific description of the things to be seized was unnecessary. Since there was probable cause to believe the entire contents of the truck was illegal, the warrant-in allowing seizure of recorded video tapes and electronic video recording and playback equipment-was sufficiently particular so that "nothing (was) left to the discretion of the officer(s) executing the warrant."4 Stanford v. Texas, 379 U.S. 476, 85 S. Ct. 506, 512, 13 L. Ed. 2d 431 (1965) quoting Marron v. United States, 275 U.S. 192, 48 S. Ct. 74, 76, 72 L. Ed. 231 (1927); see also Andresen v. Maryland, 427 U.S. 463, 96 S. Ct. 2737, 2748, 49 L. Ed. 2d 627 (1976).
Determination of whether Congress intended for the NSPA section 2314 to apply in cases of copyright infringement is a sensitive inquiry at best. It implicates the constitutional concerns of separation of powers, since significant potential exists for a court to encroach upon Congress' lawmaking prerogative. It is for Congress to say what shall be a crime and how that crime shall be punished; it is not the prerogative of this Court. Consequently, since "(s)ection 2314 is a criminal statute '... (it) must be strictly construed.' " Merrill v. United States, 338 F.2d 763, 770 (5th Cir. 1964) quoting Prussian v. United States, 282 U.S. 675, 677, 51 S. Ct. 223, 224, 75 L. Ed. 610 (1931).
In order to interpret section 2314 strictly and correctly, this Court must look first to the language of the statute. Determining whether copyright infringement by unauthorized distribution falls within the ambit of transporting goods, wares, or merchandise that have been stolen, converted, or taken by fraud requires an examination and interpretation of section 2314's terms in their usual or common sense. United States v. Williams, --- U.S. ---- at ----, 102 S. Ct. 3088 at 3088, 73 L. Ed. 2d ----; Merrill, 338 F.2d at 769. "And, when interpreting a criminal statute (such as the NSPA section 2314) ... we are reluctant to base an expansive reading on inferences drawn from subjective and variable 'understandings.' " Williams, --- U.S. at ----, 102 S. Ct. at 3092.
Consequently, a "copyright", together with the exclusive rights and privileges associated with the copyright, does not implicate any tangible embodiment of the work.7 Additionally, ownership of a copyright does not encompass ownership of the words, sounds, pictures, or images embodied in the tangible object. In other words, a copyright is independent of both its physical manifestation and the very thing that is copyrighted. United States v. Bottone, 365 F.2d 389, 393 (2nd Cir. 1966); Local Trademarks, Inc. v. Price, 170 F.2d 715, 718 (5th Cir. 1948); King Brothers Productions, Inc. v. RKO Teleradio Pictures, Inc., 208 F. Supp. 271, 277 (S.D.N.Y. 1972).
Specific interpretations of section 2314 confirm this general conclusion. The Third Circuit case of United States v. Seagraves, 265 F.2d 876 (3rd Cir. 1959), provides the most recognized definition of section 2314's phrase "goods, wares, (or) merchandise." In that case, the court looked to what has been described as the "normal, ordinary and logical import of the statutory language." United States v. Greenwald, 479 F.2d 320, 322 (6th Cir. 1973), cert. denied, 414 U.S. 854, 94 S. Ct. 154, 38 L. Ed. 2d 104. It concluded that the phrase goods, wares, or merchandise means "a general and comprehensive designation of such personal property or chattels as are ordinarily a subject of commerce." Seagraves, 265 F.2d at 880.
The Seagraves definition creates a two part test for determining whether something is a good, ware, or merchandise for purposes of the NSPA section 2314. The first part of the test is consistent with the general dictionary definition of goods, wares, or merchandise. The "thing" or "item" must have some sort of tangible existence; it must be in the nature of "personal property or chattels." This part of the test is also consistent with the need to read statutory language strictly and in its usual or common sense. Such a test explains and justifies the Second Circuit's statement that "(t)o be sure, where no tangible objects were ever taken or transported, a court would be hard pressed to conclude that 'goods' had been stolen and transported within the meaning of § 2314."10 United States v. Bottone, 365 F.2d 389, 393 (2nd Cir. 1966). See also Greenwald, 479 F.2d at 322; In re Vericker, 446 F.2d 244, 248 (2nd Cir. 1971); American Cyanamid Co. v. Sharff, 309 F.2d 790, 796 (3rd Cir. 1962); Italiani v. Metro-Goldwyn Mayer, 45 Cal. App. 2d 464, 114 P.2d 370 at 372 (holding that literary property, such as a copyright, "certainly does not come under the designation of 'goods and chattels.' ").
While section 2314 is broad enough to encompass more than common-law larceny, United States v. Long Cove Seafood, Inc., 582 F.2d at 163-64, makes clear that not all wrongful acquisitions are the equivalent of the NSPA section 2314's stealing, converting, or taking by fraud. To hold that stealing, converting, or taking by fraud means any acquiring of something in violation of law would unacceptably expand the scope of section 2314.17 See Williams, --- u.s. AT ----, 102 S. Ct. At 3092. the Distribution in interstate or foreign commerce in violation of a copyright owner's exclusive distribution rights of copyrighted works, which have been taped "off the air" is not normally, ordinarily, or logically stealing, converting, or taking by fraud.
The NSPA was an extension of the National Motor Vehicle Theft Act, 18 U.S.C.A. § 2312 (NMVTA), which was passed in response to the growing number of automobile thefts in the United States. The Supreme Court, in United States v. Turley, 352 U.S. 407, 77 S. Ct. 397, 1 L. Ed. 2d 430 (1957), provided a succinct description of the need for the NMVTA:
Id. 77 S. Ct. at 400 quoting Hall, Theft, Law and Society (2d ed. 1952).
Attorney General Cummings' letter clearly states the belief prevalent at the time the NSPA was passed-there was a need to federalize certain crimes in order to aid the states. See McClain, 545 F.2d at 994 citing United States v. Sheridan, 329 U.S. 379, 384, 67 S. Ct. 332, 334, 91 L. Ed. 359 (1946) and United States v. Patten, 345 F. Supp. 967, 968 (D.P.R. 1972). See also United States v. Roselli, 432 F.2d 879, 891 (9th Cir. 1970); United States v. Ludwig, 523 F.2d 705, 707 (8th Cir. 1975), cert. denied, 423 U.S. 1076, 96 S. Ct. 861, 47 L. Ed. 2d 86 (1976). Indeed, the greatest opposition to the NSPA came from those who feared the extension of federal criminal jurisdiction and were opposed to federalizing local crimes. In addition, at no time was it suggested that the 1934 statute should be applicable to anything other than tangible property that was stolen, converted, or taken by fraud as those terms were, and are, commonly used and understood. "Although the Government refers to passages in the legislative history where the proponents of (the NSPA) ... expressed an intention to cover 'all property,' appellant relies on the same history to show that Congress was aiming at the kind of property normally the subject of theft by gangsters and racketeers. Under such circumstances, we must give the words actually used their ordinary meaning." In re Vericker, 446 F.2d at 248.
Consequently, the legislative history of the 1934 NSPA fails to provide necessary evidence that Congress was aware of the statute's claimed scope. See Williams, --- U.S. at ----, 102 S. Ct. at 3093. Indeed, copyrights and copyright infringement were never mentioned in the legislative history of the NSPA. Of course, there would be no need for Congress to utilize the commerce clause in order to gain jurisdiction over activities involving copyrights. The United States Constitution, Article I, section 8, clause 8, grants Congress jurisdiction over copyright activity, and Congress had been utilizing the authority for several years prior to the 1934 NSPA. Copyright infringing activity was already federalized and controlled with specific legislation. If Congress really intended to enact a statute broad enough to encompass copyright infringement, "it did so with a peculiar choice of language and in an unusually backhanded manner. (The NSPA) was not necessary to interdict (the interstate infringement of copyrights), for, as Congress surely knew, (copyright infringement) already (was) addressed in comprehensive fashion by (other federal) law." Williams, --- U.S. at ----, 102 S. Ct. at 3093. Consequently, the "legislative history does not demand a broader reading of the statute" than the statutory language apparently requires. Id.19
This analysis is supported by Congress' recent assault on the pirating of copyrighted works. On May 24, 1982, the President signed into law the Piracy and Counterfeiting Amendments Act of 1982. Pub. L. No. 97-180, 96 Stat. 91 (1982). This Piracy Act provides a graduated punishment scheme for various copyright infringing activities, including distribution in violation of a copyright owner's exclusive rights.24 The purpose of the act is to "strengthen the laws against record, tape, and film piracy and counterfeiting" by "increas(ing) the penalties for trafficking in counterfeit labels for copyrighted records, tapes, and audiovisual works and for copyright infringements involving such products." S.Rep.No. 97-274, 97th Cong., 1st Sess. 1 (1981), reprinted in 4 U.S.Code Cong. & Ad.News '82 127.
The record indicates the agents received two additional warrants to search the Televideo premises. The subsequent search resulted in a comprehensive seizure. However, as a result of defendant's motion pursuant to Fed. R. Crim. P. 41(e), a district court declared the warrants allowing a search of the premises to be invalid general warrants and the items seized from the premises were returned
All things (including specially manufactured goods) which are moveable at the time of identification to the contract for sale other than the money in which the price is to be paid, investment securities and things in action. Also includes the unborn of animals and growing crops and other identified things attached to realty as fixtures. U.C.C. § 2-105(1). All things treated as moveable for the purposes of a contract of storage or transportation. U.C.C. § 7-102(1) (f).
As used with reference to collateral for security interests, goods include all things which are moveable at the time the security interest attaches or which are fixtures. Section 9-105(1) (h) of the 1972 U.C.C.; Section 9-105(1) (f) of the 1962 U.C.C.
As a legal and practical matter, the images were dedicated to the public. Teleprompter Corp. v. Columbia Broadcasting Systems, Inc., 415 U.S. 394, 94 S. Ct. 1129, 1138, 39 L. Ed. 2d 415 (1974)
Of course, in reaching its conclusion, this Court recognizes the previous pronouncements of this Court and other courts, that copyright infringement is neither the equivalent of "conversion," Local Trademarks, Inc. v. Price, 170 F.2d at 718 (5th Cir. 1948); King Brothers Productions, Inc., 208 F. Supp. at 277; Italiani, 114 P.2d 369, nor the equivalent of "taking" in the constitutional sense, Porter v. United States, 473 F.2d 1329, 1337 (5th Cir. 1973) citing Twentieth Century Fox Film Corp. v. Dieckhaus, 153 F.2d 893 (8th Cir. 1948) and Turton v. United States, 212 F.2d 354 (6th Cir. 1954)
This Court also notes that United States v. Berkwitt, 619 F.2d 649, 650 (7th Cir. 1980) and United States v. Whetzel, 589 F.2d 707 (D.C. Cir. 1978) are both less than helpful in the case sub judice because their suggestion that § 2314 applies to copyright infringing activities is made with little or no explanation and either by implication or in dictum. See also United States v. Sam Goody, Inc., 506 F. Supp. 380 (E.D.N.Y. 1981) (new trial subsequently granted on other grounds, 518 F. Supp. 1223 (1981)). But Cf. Local Trademarks, Inc. v. Price, 170 F.2d at 718 (5th Cir. 1948).
Turley, 77 S. Ct. at 401 n. 13.
The Court notes that, if § 2314 were read as the Government urges, the statute conceivably could make a surprisingly broad range of conduct a violation of federal law. Consequently, this Court avoids such an interpretation in order to follow the lesson of the Supreme Court in the case of Williams, --- U.S. at ---- - ----, 102 S. Ct. at 3092-3093
At most, there is ambiguity regarding Congress' intention in this specific case. Accordingly, this Court is compelled to read § 2314 narrowly. Such a reading is consistent with the usual approach to construction of criminal statutes. The Supreme Court has emphasized that " 'when (a) choice has to be made between two readings of what conduct Congress has made a crime, it is appropriate, before we choose the harsher alternative, to require that Congress should have spoken in language that is clear and definite.' " Williams, --- U.S. at ----, 102 S. Ct. at 3093, quoting United States v. Bass, 404 U.S. 336, 347, 92 S. Ct. 515, 522, 30 L. Ed. 2d 488 (1971), quoting United States v. Universal C. I. T. Credit Corporation, 344 U.S. 218, 221-22, 73 S. Ct. 227, 229-230, 97 L. Ed. 260 (1952). See also Whalen v. United States, 445 U.S. 684, 100 S. Ct. at 1440 n.10, 63 L. Ed. 2d 715, quoting Ladner v. United States, 358 U.S. 169, 79 S. Ct. 209, 214, 3 L. Ed. 2d 199 (1958); McClain, 545 F.2d at 995 quoting Rewis v. United States, 401 U.S. 808 (1971); Merrill, 338 F.2d at 770