Opinion ID: 743588
Heading Depth: 2
Heading Rank: 5

Heading: Joint Liability of Dragon's President

Text: 75 At trial, Softel sought to establish that Hodge, Dragon's president, was jointly liable for Dragon's copyright infringement. Dragon moved at the close of Softel's case for dismissal of the claims against Hodge, on the ground of insufficient evidence. The district court granted this motion, on the ground that Softel had not produced evidence sufficient to establish a claim of contributory or vicarious liability. 76 The district court stated that it was dismissing Softel's claim against Hodge pursuant to Fed.R.Civ.P. 50(a), under a directed verdict standard. However, Rule 50(a) relates to dismissals in jury trials, and this was a bench trial. At the time of this trial, in April 1991, dismissals in bench trials on the ground that upon the facts and the law the plaintiff had not shown any right to relief were handled under Rule 41(b) of the Federal Rules of Civil Procedure. 9 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 2371 (1995). The substantive provisions of this rule were moved to Fed.R.Civ.P. 52(c) shortly afterwards, in December 1991. See 9A id. § 2573.1, at 493 n.1 (amendment effective Dec. 1, 1991). 77 Softel argues that we should take the trial court at its word and test its dismissal of this claim by the then-Rule 50(a) standard, i.e., whether, drawing every inference and making all credibility assessments in favor of Softel, Softel had presented sufficient evidence to support a verdict. Dragon argues that we should not review the trial court in this manner since the court in a bench trial has the power to make its own assessments of the evidence and probably did so here. We agree with Softel that the court made no findings but dismissed the case against Hodge by holding as a matter of law that Softel could not recover under any view of the evidence presented. 78 However, this does not avail Softel because we also agree with the district court that, even drawing every inference in favor of Softel, Softel had at the close of its case failed to bring forward sufficient evidence to sustain its claims against Hodge. Therefore, no findings were necessary; indeed, they would have been an exercise in futility. To establish contributory infringement, Softel was required to show that Hodge authorized the [infringing] use. Sony Corp. v. Universal City Studios, Inc., 464 U.S. 417, 437, 104 S.Ct. 774, 786, 78 L.Ed.2d 574 (1984). Softel points to no such showing prior to the district court's ruling, and offers no such evidence on appeal. To establish vicarious liability, Softel was required to show that Hodge had a right and ability to supervise [that] coalesce[d] with an obvious and direct financial interest in the exploitation of copyrighted materials. Shapiro, Bernstein & Co. v. H.L. Green Co., 316 F.2d 304, 307 (2d Cir.1963). The only evidence that Softel adduced prior to the court's ruling relating to the issue of Hodge's supervisory capacities and financial interests was that Hodge was the president of Dragon and a shareholder. 12 The evidence is too attenuated to establish a sufficiently direct financial interest in the exploitation of copyrighted materials. Cf. id. at 308 (finding appellee vicariously liable because, inter alia, it received 10%-12% of the sales of the infringing materials). 79 Therefore, the district court properly dismissed the claims against defendant Hodge.