Legal Document

415 U.S. 394 94 Supreme Court Reporter 1129 39 United States Reports Lawyer’s Edition 2d Series KF101.8 U54 TELEPROMPTER CORPORATION et al., Petitioners,v.COLUMBIA BROADCASTING SYSTEM, INC., al. COLUMBIA Petitioners, versus Nos. 72—1628 and 72—1633. Argued Jan. 7, 1974. Decided March 4, Syllabus Several creators producers of copyrighted television programs brought this suit claiming that defendants had infringed their copyrights by intercepting broadcast transmissions material rechanneling these through various community antenna (CATV) systems to paying subscribers. The District dismissed the complaint on ground cause action was barred Court's decision in Fortnightly Corporation Artists Television, 392 390, 88 2084, 20 1176. On appeal, Appeals divided CATV into two categories for copyright purposes: (1) those where signal already 'in community' served system, could be received there either a or standard rooftop other antennae belonging owners sets; (2) imported 'distant signals' from broadcasters so far away foregoing local facilities not normally receive adequate signals. Holding reception retransmission non-'distant' signals do constitute infringement, but 'distant' amount 'performance' thus court affirmed as first category, reversed remanded remaining systems. Held: 1. development implementation, since new functions systems—program origination, sale commercials, interconnection with even though they may allow compete more effectively market, convert entire operation, regardless distance broadcasting station, 'broadcast function,' subjecting operators infringement liability, are extraneous determination such none is any nexus operators' broadcasters' materials. Pp. 402—405. 2. importation one another does under Copyright Act. 406—415. (a) By importing current technology it serves, system not, purposes, alter function performs its subscribers, simultaneous viewing essentially viewer function, irrespective between station ultimate viewer. Pacific KF135 P2 408. (b) Even exercising limited freedom choose among stations, operator cannot viewed 'selecting' signals, when chooses which rechannel, creative then extinguished thereafter 'simply carr(ies), without editing, whatever (it) receive(s),' supra, at 400, 2089. Nor procure propagate them public, engaged converting sights sounds an event program electronic available receives rechannels having been 'released public' specific segment public system. 409—410. (c) fact have shifts business commercial relationships communications industry result systems' entail extending range viewability program, interfere traditional sense holders' means extracting recompense creativity labor advertisers basis all viewers who watch particular program. 410—414. 5th Cir., 476 Federal Reporter, 2nd 338, part, Court. Robert C. Barnard, Washington, D.C., petitioners Number respondents Asa D. Sokolow Seymour Graubard, New York City, Mr. Justice STEWART delivered opinion 1 plaintiffs litigation, televised provisions Act 1909, amended, 17 Code KF62 § seq., commenced 1964 Southern York, subscribers.1 initially stayed agreement parties, pending Inc., In case, decided 1968, we held distribution broadcasts involved did within meaning Act, infringement.2 After present litigation filed supplemental pleadings sought distinguish five challenged here whose operations found Fortnightly3. subsequently plaintiffs' decision. 355 F.Supp. 618. appeal Second Circuit, judgment part case further proceedings. 338. Both petitioned certiorari, and, because seemingly important questions federal law involved, granted both petitions. 414 817, 52, 38 50. 2 * alleged infringements occurred certain dates each illustrative located Elmira, York; Farmington, Mexico; Rawlins, Wyoming; Great Falls, Montana; City. typically beams special owned operated Teleprompter, transmission cable combination point-to-point microwave4 homes conversion electromagnetic images subscribers' own sets.5 some cases point original relatively great—in instance than 450 miles—and stations ordinary antenna, extremely high one, would impossible curvature earth topographical factors. others, close customers' receiving sets equipment. Between extremes were involving intermediate distances only intermittently, imperfectly, sporadically.6 3 Among actual potential described trial discerned, distinct categories. One category included situations erected adjacent community. Such systems, found, performed same 'no enhance viewer's capacity broadcaster's signals,' U.S., 399, S.Ct., second neither nor near locality capable providing acceptable images. 4 determined '(w)hen performing distributing beyond antennas, . extent, functionally equivalent broadcaster should deemed 'perform' programming distributed subscribers signals.' F.2d, 349. complaint—those Elmira City—the rechanneled claims dismissal complaint. As three findings order apply appellate court's test determining whether 'distant.'7 72—1633 ask reverse infringement. 72 1628, us 'performance,' II 5 We turn assertions 1633 work. These contend number significant developments mandate reassessment conclusion reached act extension set's made public. reviewed earlier courts while analogies performer envisioned Congress 1909—that live filmed performances watched audiences—were necessarily imperfect, simple line drawn: 'Broadcasters perform. Viewers perform.' 398, 2088 (footnotes omitted). Analysis played comparison convinced fall 'on side line.' Id., 2089 (footnote 6 'The has little common broadcasters. rebroadcast. Broadcasters select viewed; simply carry, receive. public; released carry private channels additional viewers. hold operators, like unlike broadcasters, perform carry.' 400—401, 2089—2090 7 claim basic changes operation bring question over 'side particular, emphasize taken place few years First, out many including here, originate wholly independent off-the-air rchannel subscribers.8 It undisputed produce own; contended that, addition, engagement programing converts Second, assert sued Fortnightly, sells advertising time interests wishing sell goods services localities out, considered characteristically n. 28, 2089, citing Intermountain Broadcasting & Television Idaho Microwave, 196 315, 325. Finally, engaging systems—whereby originates right redistribute simultaneously subscribers—the similarly transferred themselves liability.9 8 significance functions—program interconnection—suffers logical flaw: defendants' observed respect '(e)ven origination service sold package remain separate different operations, sensibly say becomes 'performer' offers services, remains nonperformer latter.' 347. Similarly, accompanying advertisements carried via arrangement petitioners.10 9 For reasons correct implementation functions, liability programs. III 10 Teleprompter subsidiary, Conley Electronics Corp., seek reversal portion Appeals' constitutes concluding similar nearby relied description contained Southwestern Cable Co., 157, 1994, 1001, announced week before Fortnightly: 11 'CATV functions. supplement facilitating satisfactory areas otherwise possible; second, transmit distant entirely antennae.' 163, 1998. 12 Cable, however, faced conflicting concerning jurisdiction Communications Commission regulate interest Insofar language quoted purely descriptive purpose, related issue regulatory authority Commission. context purport create separation purposes.11 13 briefs oral argument rationales distinction adopted advanced. first, itself relied, assertion communities considerably 'enhance instead 'bring receivable large area.' transformed performers, misconceived thrust Fortnightly. 14 concluded constituted depend 'how much (CATV system) about hearing work.' 377 872, 877. This quantitative approach squarely rejected Court: 15 '(M)ere contribution proper determine broadcasting. Rather, resolution depends upon plays total process reception.' 397, 2088. 16 When transmits contents privilege inheres members doing so. reasoned '(i)f individual hill, strung his house, installed necessary amplifying equipment, he 'performing' set,' id., '(t)he difference users entrepreneur.' Ibid. same. While ability inclination erect might decrease increased cost bringing home, status 'nonperformer' unchanged. lose nonbroadcaster, carries rather sources. 18 argued increases redistribute, exercises elements choice selection alternative sources exercise brings scope function. pointed equal ease import no greater serve. instances, 'leapfrogged' nearer rechannel programs.12 choosing said, network affiliate mix national will broadcast. 19 following terms: without, viewers.' 21 'selecting,' 'procuring,' 'propagating' terms used selects time, possible affiliated, holders rerun motion pictures, generate material. alternatives myriad, possibilities imagination financial considerations. An makes extinguished. Thereafter receive(s).' Moreover, 22 deleterious impact economics market structure licensing. holder licenses shown television, expect recoup investment single after 'first run' major networks, often later syndicated affiliates 'second propagation secondary markets. argue if allowed markets dilute profitability syndications, measured rating diminishes successive showing given market. told ensure 'the general benefits derived labors authors,' Fox Film Doyal, 286 123, 127, 52 546, 547, 76 L.Ed. 1010, "the incentive efforts objects," 127—128, Kendall Winsor, How. 322, 328, 165, licensing must maintained. 23 industry, relations licensees hand dilution dislocation direct economic ascribes it. Unlike propagators material, books, dramatic productions, project pictures audiences, paid directly ultimately enjoy publication material—that is, viewers—but use drawing power promote services. pay fee advertisement based estimate expected characteristics While, indirectly prices advertisers, relationship licensees.13 24 labor. license control population view program—the beam exclusively young old, women men—but gets significantly situation. Instead basing fees plus 'local ranges extended merely larger market.14 From mark reallocation reach, concern holders, mean compensation willing calculated size augmented market.15 25 relationships, organization growth controlled legislation enacted half century ago, yet conceived. Detailed regulation sensitive problems field, left Congress.16 26 directions reinstate judgment. 27 ordered. 28 Affirmed directions. 29 BLACKMUN, dissenting part. 30 N Dec. Immigration Nationality Decisions 1176 (1968), decided. Were presented today, full what Fortas said dissent. join unanswered—and, me, unanswerable—reliance Brandeis' unanimous Buck Jewell-LaSalle Realty 283 191, 51 410, 75 671 (1931). But decided, today adheres principles enunciated simplistic basis* rests. 31 With I, DOUGLAS, confine 'to precise facts leave modification Congress.' Post, 1144. Circuit best difficulties inherent in, flowing from, elbowroom consider expanding modern-day CATV. Judge Lumbard's opinion, presents imaginative well-reasoned solution transgressing restrictive parameters am therefore affirm 32 whom THE CHIEF JUSTICE concurs, dissenting. 33 extraordinary excursion legislative field. 1176, lower copyright, reversed, holding 'reception service,' line,' infringe They functioned cable, reaching towns rceive TV due, say, surrounding mountains, expanded reach confines area telecast reached. 34 Whatever thinks take next step give immunity organizations. CATV's regular broadcaster. waves travel straight lines, earth's curved surface. scientific created purposes markets.1 Those covers geographic are, estopped saying reaches remote hidden valleys area, infringes copyright. go hundreds miles, towers pick up area. 35 realistic practical device. Respondents exercised provileges licensed performance works Petitioners (hereafter petitioners) licensees. Yet payment fees. 36 §§ 1(c) (d), gives owner exclusive right' creation profit' manner method 'reproduced.' A builds telecasts Area B reproducing work, pursuant theft. That '"encouragement production literary (or artistic) lasting benefit world'" extolled Mazer Stein, 347 201, 219, 74 460, 471, 98 630. Today's war Chief Hughes, speaking 130, 548, aim Congress: 37 'Copyright during term pleasure profit forms extensive profitable enterprises. advantage gained carrying policy making grants Government property subject grants.' somewhat network-affiliated imports originated centers microwave, precisely here.2 picking managing service. miles desire serve, radio distribute If 'function' key says, broadcasters; acts piracy flagrant violations licensor virtue Los Angeles enabled lawfully make broadcasts. license-free Mexico, rebroadcast pirated programs, themselves—unlike Fortnightly—originate finance programs3 sales advertisers. way value copyrights. thing; fortune rates says 'a Act'; statement refutation truth. Rechanneling robs chance monetary rewards rates4 rebroadcasts group advised amicus brief Motion Picture Association films being competition CATV—a nonpaying pirate films—imports them. difficult imagine violation Since our guide justice see why free fees, customers reads existence desirable policy. rampant judicial activism entertain. 40 There nothing qualifies, limits, modifies, exception 'Nothing chapter shall abridge remedies now existing statute, addition remedies.' 47 414. realized can 'neither resolve, avoid' problem comes CATV.5 41 January 14, 1974, Cabinet Committee headed Clay T. Whitehead Report President. emphasizes need flow information society honors 'freedom expression'; end closely 'linked data processing, telephone, broadcasting, picture music industries, satellites,' require consistent coherent policy.' rejects framework creates constant danger unwarranted governmental influence people hear programming,' 20. opts limitation content bulk leased others.' 42 recognizes 'copyright liability' phase envisages, 39. pirating sanctioned today's anathema philosophy Report: 43 'Both equity incentives competitive supply retailers using negotiate information. Individual industry-wide negotiations license, right, rule media industry. 44 'As matter policy, retailer distributes provided retransmissions. However, reasonable expectations entitled non-negotiated, blanket conferred cover 45 course technical, legal bearing us. strongly indicates how sanctity opposed ethical achieves 'legislating' features existence. stated Midwest Video 406 649, 676, 92 1860, 1874, almost explosive suggests comprehensive re-examination statutory scheme relates development, polices courts.' 46 counsel override limit Congress. rights specified Act: 'Any person thereto, complying title, right: '(a) To print, reprint, publish, copy, vend work; '(b) translate work languages dialects, version thereof, dramatize nondramatic novel drama; arrange adapt musical complete, execute, finish model design art; '(c) deliver, authorize delivery of, read, lecture, sermon, address production, transcription record thereof which, whole exhibited, delivered, presented, produced, reproduced; play profit, exhibit, represent, produce, reproduce whatsoever. damages referred subsection exceed sum $100 infringing shows aware reasonably foreseen; '(d) represent publicly drama or, reproduced copies sale, manuscript whatsoever thereof; performed, represented, perform, whatsoever; '(e) composition; purpose set forth hereof, setting melody notation form thought author recorded read ..' Although contain explicit definition settled unauthorized inconsistent 'exclusive rights' enumerated 1, law. See M. Nimmer, 100, Page 376 (1973). Use conflict secured widespread, fundamental (is) 'use' thing 'infringement,' short encouraged baron Kaplan, Unhurried View 57 (1967). appears conceded works. (nondramatic works) 'publicly' 1(d) (dramatic works). Cf. 395 13, 2087, amended complaints also allegations 1969 1971. differences microwave 'A link involves air. signal, according 153(o), transmitted '(reception) public.' focused narrow aimed precision points. Thus, communication. path beam. considerable distance, retransmitted point, repeated until subscribers.' 343 6. itself, sufficient 348—349. contention 'is alternative, economical circumstances, transmitting another,' 349, renewed descriptions 1001; Seiden, Economic Community Antenna Systems Industry (1965); Note, Regulation 70 Col.L.Rev. 837 (1970); Wire Mire: FCC CATV, 79 Harv.L.Rev. 366 (1965). cities household terrain 'translators,' Commission, station's 344 7. acknowledged 'difficult,' 'that possible.' 350. egulations 'which Grade contour station.' Regulations 74.1101(i) (1971) (removed Fed.Reg. 3278 (1972)). defined along good 90% 50% locations. 163 16, recognized 'this unsuitable phrased antennas fly face Fortnightly.' 'it easier state signal. Accordingly, projecting, relay retransmittal, image substantial signal.' 351 Program consisted arrangements spare automated cameras weather, news ticker, stock ticker information, aural announcements. include coverage sports events, moving films, specially CATV-First Order, F.C.C.2d 201; 390. discussion instances championship heavyweight boxing contests. examples testimony, suggest anyone interconnection, exact significance. apparently exists whereby retransmit substitute commercials appearing broadcast, claimed process. consistently emanating sources, 1966 indicated proposed rules regulating 'affect suits, matters (the FCC's) jurisdiction.' Systems, 725, 768. position 1934, source Commission's power, provides, part: highly unlikely differentiation intended Indeed, noted, unsatisfactory occurred. supra. example, represented 113 closer equidistant, zone Farmington Some commentators suggested retransmitting effect twice provilege seeing programs: Liability: Clear Day You Can Forever, Va.L.Rev. 1505, 1515 (1966); Liability, 80 1514, 1522—1523 15, infra. Testimony exhibits introduced indicate compilations statistics weight bid support established. suffer net loss dissemination permitted. increasing revenues primary scale compensate loss. assumption supporting higher advertiser Va.L.Rev., 1513—1516; Harv.L.Rev., 1522—1525. noted '(n)o evidence below show regional sponsored exhibited minor increase audience carriage yield program,' '(i)ndeed, impel opposite conclusion.' 342 very relevance decide here. At securing essential freezing not. theoretical called 'wasted' unwilling transmission,' 87 665, 675 (1974). factfinding legislative, judicial, event, prediction evolution medium, competence pre-Fortnightly history update deal technological 396 17, 2087. revise laws resolve posed apparent imminence Solicitor General defer speedy completion activities, bear fruit, diversity delicacy affected problem. 117 Cong.Rec. 2001 (remarks Sen. McClellan). Further attempts revision 91st Congress, S. 542, 92d 644, met lack success. present, Senate Hearings Subcommittee Patents, Trademarks Copyrights bill amend 1361, reported subcommittee. companion House Representatives, H.R. 8186, Judiciary 3, hearings scheduled. 1934 empowered 'assign frequencies station,' 'determine use,' '(d)etermine location stations,' '(h)ave establish zones 303(c), (h). Pursuant powers others supervised establishment maintenance nationwide responsibility pipe stolen Angeles, 600 away; developed intricate hookup 'via twenty-three steps roundabout, 1300-mile route (establish link).' 618, 622. 346—347; CATV—First 143, 148, 290; Rules re Micro-wave Served F.C.C. 683; Radio Signals, Importation sustained iriginate 5—4 1972. memorandum urged stations' protection: '(M)uch accompanies works, directed solely normal area—'local' 'national spot' category. derive outside ordinarily accordingly amounts coverage.' Memorandum curiae O.T.1967, 10.

Classification Label: 7