Opinion ID: 2996618
Heading Depth: 2
Heading Rank: 1

Heading: Fair Use Instruction

Text: In Morley’s case, we find no fault with the district court’s denial of a jury instruction on fair use. Federal copyright law contains a fair use exception that limits the exclusive rights of a copyright holder by excepting an otherwise infringing use of a work “for purposes such as criticism, comment, news reporting, teaching (including multiple copies for classroom use), scholarship, or research” upon consideration of the following factors: (1) the purpose and character of the use, including whether such use is of a commercial nature or is for nonprofit educational purposes; (2) the nature of the copyrighted work; (3) the amount and substantiality of the portion used in relation to the copyrighted work as a whole; and (4) the effect of the use upon the potential market for or value of the copyrighted work. 17 U.S.C. § 107. Morley urges us to find that PWA’s use of copyrighted software falls within the fair use exception. He asserts that the Sentinel site was noncommercial—merely for educational and entertainment purposes. It was “noncommercial” because members did not have to pay to download the software; it was “educational” because defendants learned something from using the software, one of the individuals operating the site was a professor, and the hardware was located at a university. We are unpersuaded—indeed, in our view these arguments barely pass the straight-face test. While members did not have to pay in hard currency to download the software, they did have to contribute valuable services—a barter form of payment—to receive commercially available software. Morley’s reliance on Sony Corp. v. Universal City Studios, 6 Nos. 02-2059 & 02-2182 Inc. is thus inapposite, because the transaction was not purely noncommercial. 464 U.S. 417, 449 (1984) (commercial use of copyrighted material is presumptively unfair use). Morley’s attempt to establish an educational purpose also strains credulity. The professor who operated the site did so without the knowledge or authorization of the university, and he kept the computer hidden in a closet. Even if Morley could show some noncommercial educational purpose, consideration of other factors weighs decisively against application of the fair use doctrine to Internet piracy. Limited copying may be permissible for certain noncommercial, educational purposes, taking into account the nature of the copyrighted work and market considerations. 17 U.S.C. § 107; Sony, 464 U.S. at 448-50. See also Stephen M. McJohn, Fair Use of Copyrighted Software, 28 Rutgers L. J. 593, 603-06 (1997). These factors, however, weigh against application of the fair use doctrine to cases involving Internet piracy. PWA allowed members to obtain unlawful, digital duplicates of thousands of commercially available software programs. The government also presented expert testimony on the harmful effect of Internet piracy on the potential market for the copyrighted work, though we think this point is fairly obvious. See generally In re Aimster Copyright Litigation, 334 F.3d 643 (7th Cir. 2003). It is preposterous to think that Internet piracy is authorized by virtue of the fair use doctrine. For these reasons, we affirm the district court’s denial of a jury instruction on fair use.