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Tenise Barker Takes On RIAA Damages Theory

NewYorkCountryLawyer writes "Tenise Barker, the young social worker from the Bronx who took on the RIAA's 'making available' theory and won, has now launched a challenge to the constitutionality of the RIAA's damages theory. In her answer to the RIAA's amended complaint [PDF], she argues that recovering from 2,142 to 428,571 times the actual damages would be a violation of Due Process. She says that the Court could avoid having to find the statute unconstitutional by construing the RIAA's complaint as alleging a single copyright infringement — the use of an 'online media distribution system' — and limiting the total recovery to $750. In the alternative, she argues, if the Court feels it cannot avoid the question, it should simply limit the plaintiffs' damages to $3.50 per song file, since awarding more — against a single noncommercial user, for a single upload or download of an MP3 file for personal use — would be unconstitutional."

43 of 282 comments (clear)

  1. Re:WRONG by RingDev · · Score: 4, Insightful

    it's not about downloading a song. The price of downloaded music is well established at $0.99 (or less). DISTRIBUTING is the issue and unless she has logs which show exactly how many times she distributed it, she can fuck off.

    Actually, if this case is like many of the others, and the RIAA has proof that she distributed the song to Media Sentry, then they have proof that she distributed the content to 1 other person, a single copy right violation.

    It's just a civil case, so they don't have to prove absolutely that she distributed to hundreds of people, but they have to make some effort at showing that there were more distributions than just the single unauthorized distribution that they authorized...

    -Rick

    --
    "Most people in the U.S. wouldn't know they live in a tyrannical state if it walked up and grabbed their junk." - MyFirs
  2. If this goes through... by MostAwesomeDude · · Score: 4, Insightful

    ...I wonder how much pain it might become, to settle? After all, if the cost of settling my (alleged, unsubstantiated) piracy becomes a mere forty dollars per album, I might not be so disinclined to just sign a piece of paper and fork over a tiny bit of cash.

    --
    ~ C.
    1. Re:If this goes through... by CelticWhisper · · Score: 2, Insightful

      Because it makes financial sense to settle for $40 for one infringement case if you can grab, say, 5 albums and only get sued for one of them. Not saying it's ethical or unethical, but it's sensible.

      --
      Help protect civil rights from abuse by the TSA - visit TSA News Blog.
      http://www.tsanewsblog.com
    2. Re:If this goes through... by shark72 · · Score: 3, Insightful

      "Paying $15-20 for a CD is ridiculous."

      In the time since you've stopped buying CDs, prices have dropped dramatically. They're about $13 at retail now, and often much less online.

      "It's fucking expensive, dumbshit! It costs me, a musician, exactly 1 dollar to get 1 CD pressed. In bulk, it costs less."

      It's a little-known fact (at least among Slashdotters) that in the retail industry, the cost of goods is often the smallest of the costs of sale. The devil is in the details, and it's those details that have ground down Warner Music's margins to the point that they lost money last year.

      If you're not sure what I mean, make a few mental notes of how much it might cost you to get that $1 CD onto the shelves at Target, along with a marketing budget that would be adequate to cause people to actually seek out and buy the CD once it's there. Those nickels and dimes add up fast.

      --
      Sitting in my day care, the art is decopainted.
    3. Re:If this goes through... by torkus · · Score: 3, Insightful

      Just to throw some accurate financial information in here. I suppose I should put a flamebait/troll warning too. FWIW it's at least accurate information.

      WMG has some overall increases in revenue and gross profit over 4 out of the last 5 quarters. They're also spending 3-400million *per quarter* on "research and development". Amzing how a billion dollars a year can't bring their business model to more than 5-10 years behind the modern world. Cry me a river that they posted a loss of 14c per share for 2007. For a company to behave as they (and other of the MAFIAA) have and still be in business at all is astounding.

      So yes, it cost more than $1 to get a CD onto the shelf in target. How much more though is a serious question. What it comes down to is a band could easily put CDs in a store in a for $5 each and make more money than they do by feeding the MAFIAA beast and selling for $13.

      Adapt or die. Darwinism. A team of over-paid lawyers should not make your company an exception to this rule.

      --
      You can get rich if you own a politician, but you have to be rich to buy one in the first place.
    4. Re:If this goes through... by Danse · · Score: 4, Insightful

      Yeah, unfortunately this is a discussion about copyright, a legal fiction created for economic stimulous, and not about tangible goods which can be stolen.

      Should read: "a legal fiction created for cultural and scientific stimulus, and altered over the last few decades to provided an unending stream of income to the entertainment industry for work that somebody did decades ago, all at the expense of the public."

      --
      It's not enough to bash in heads, you've got to bash in minds. - Captain Hammer
  3. And now we wait by digitrev · · Score: 4, Insightful

    I'm sure the RIAA will have some excuse as to why this isn't unconstitutional, and was in fact the idea the Founding Fathers had in mind when they set up copyright. Good arguments, but I'm a touch wary that the judge will just ignore any constitutional issue. And even if they do listen, the RIAA will try and get out of it so no precedent can be made.

    --
    Cynical Idealist
  4. Re:WRONG by larry+bagina · · Score: 2, Insightful

    Do you feel the same when GPL software being illegally distributed?

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  5. Treble damages by Orne · · Score: 4, Insightful

    This would fit nicely with the puntative damages model that are currently used for financial, anti-trust, and counterfeit fraud called "Treble damages".

    Since Itunes can show that the market value of a single MP3 is approximately $1, then a fraud penalty of $3 per song does not seem unreasonable, providing that the prosecution can show that the song was actually downloaded that is...

    -- Scott

    1. Re:Treble damages by Z_A_Commando · · Score: 3, Insightful

      That will be their argument. However, in order to claim distribution damages, they have to prove distribution and they've already had their "making available" == distribution theory shot down. I'm sure they'll try to come up with another way, but until they do, they can't claim damages for something they can't prove.

    2. Re:Treble damages by Retric · · Score: 4, Insightful

      Read up on the write of first sale. If you can buy something for X and ship it for y then the cost to distribute it is X + Y and you can leave Sony out of the picture.

    3. Re:Treble damages by Retric · · Score: 2, Insightful

      Yes, but you can buy a 2nd, 3rd or 30,000th song at the same price. So, damage per song does not go up as you distribute more songs.

  6. punitive fines by Khashishi · · Score: 4, Insightful
    Punitive fines need to be much greater than actual damages because of the low probability of getting caught; otherwise, entities could just make a calculated decision to take the risk of breaking the law, since the expected cost is much lower.

    Imagine if megacorps only paid damages whenever they harmed someone.

    1. Re:punitive fines by Anonymous Coward · · Score: 3, Insightful

      Better yet, imagine if megacorps actually paid damages whenever they harmed someone.

    2. Re:punitive fines by JCSoRocks · · Score: 4, Insightful

      The trouble is... the amount necessary to dissuade a company from doing it is pretty different from an individual. $50,000 would probably convince average joe that it's a bad idea... but megacorps spend that on free coffee for employees in a year.

      --
      You are using English. Please learn the difference between loose and lose; they're, there, and their; your and you're.
    3. Re:punitive fines by salahx · · Score: 2, Insightful

      But the damages aren't "punitive", they are "statutory". They aren't intended to punish the infringer, rather the are intended to grant the appropriate relief to the plaintiffs when "actual" damages can't be easily calculated (since no one knows how many works were infringed).

    4. Re:punitive fines by CodeBuster · · Score: 3, Insightful

      This is why punitive damages should be subjected to a means test whereby the damages are adjusted to reflect a fixed percentage of the annual income of a convicted individual. Thus, the poor working mother might only pay several hundred dollars total or perhaps a couple of thousand max whereas the mega corporation could be on the hook for millions. Fixing the absolute dollar amounts in the laws makes very little sense because the relative burdens will obviously fluctuate over time due to inflation while at the same time imposing a regressive burden of punishment when they are applied (i.e. the poor suffer more than the rich for being convicted of the same crime).

    5. Re:punitive fines by jedidiah · · Score: 2, Insightful

      "Deterrence" doesn't require $200K or $50K.

      $2000 will do. This is the approximate deterrence
      involved in theft of a real CD. It's should seem
      instinctively wrong to anyone that theft in the
      biblical sense is treated as 1/200th the crime as
      software piracy is.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    6. Re:punitive fines by jedidiah · · Score: 2, Insightful

      It doesn't matter what the alleged rationale is: it's bullshit.

      Any damages should require demonstration of harm.

      That's what the whole tort system is based on.

      Statutory damages against non-profit individuals are obscene.

      --
      A Pirate and a Puritan look the same on a balance sheet.
    7. Re:punitive fines by Maxo-Texas · · Score: 3, Insightful

      We would be buying american cars of lower quality than Toyota if they were the $3k to $5k per car cheaper due to lower retirement and medical costs.

      GM/Ford/Etc. Over promised benefits 30 years ago to avoid higher salaries then. And the end result is that young workers today will cover GM/Ford/Etc's pension benefits out of their taxes (and the benefits will be reduced to about 30-50% of what was promised). Meanwhile, the executives will keep all the money that they made along the way.

      Here in Houston, they stupidly promised unreasonably high pensions to our police-- some of them are making mid six figures because they were able to gimmick their last couple years to pump the payout up. The total amount is basically impossible (I think about $1billion) so at some point Houston will either raise taxes so high that business and people flee or it will default on the pension obligations.

      That is why 401k's are better- you know what you are getting. You don't end up 71 years old and suddenly have your monthly income cut by 60% without warning.

      --
      She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
    8. Re:punitive fines by AK+Marc · · Score: 2, Insightful

      But that's cruel to the ones caught. If someone breaks the law once in their life, and it happens to be one of these "example" laws where they try to make an example of you, the punishment for that one violation exceeds the resonable punishment for you. Your logic only works if you assume everyone is a criminal and they just haven't been caught yet. Excessive punishments have been ruled unconstitutional. Excessive punishments to make an example of someone aren't going to work either.

      Imagine if megacorps only paid damages whenever they harmed someone.

      Like Exxon and the civil actions against them? Oh wait, it's been 10 years since they lost the Exxon Valdez cases and they still haven't paid a penny to the people. So even when megacorps are responsible for causing harm to large numbers of people, they aren't held responsible, even when they lose court cases for billions. And yes, they are complaining because they don't want to be made an example of, and they are claiming that the damages are excessive because they were somewhere around 3 times the actual damages proven (and not made up damages, like music cases). That's how it's handled by megacorps. They get a slap on the wrist they get to defer for decades (for 3 times actual damages), while regular people get fines of 10,000 times actual damages, and people call the music sharers whiners...

  7. Re:WRONG by Mathinker · · Score: 5, Insightful

    Actually, if this case is like many of the others, and the RIAA has proof that she distributed the song to Media Sentry, then they have proof that she distributed the content to 1 other person, a single copy right violation.

    Actually, my impression is that from a legal standpoint, the distribution to Media Sentry isn't a copyright violation because Media Sentry is the authorized agent of the copyright owner. And before everyone jumps in, remember that this is law we're talking about, so common sense doesn't necessarily apply (as we've seen in some of the other results of RIAA trials).

  8. I'm not so sure by XahXhaX · · Score: 5, Insightful

    The only argument of which I'm currently aware is that they state the excessive damages are necessary to deter others.

    It may be fortunate that this is the kind of rhetoric that sells to politicians moreso than courts. The extortionate damages that IP holders currently seek is clearly intended not to simply deter people from violating copyright, but from even putting up a fight in the first place--as demonstrated by the way the RIAA handles these cases by offering to settle for a few grand or face the threat of an exponential lawsuit.

    Otherwise you're just stating the obvious: yes, the RIAA will find a way to fight this. And the sky is blue and birds chirp.

    1. Re:I'm not so sure by AndersOSU · · Score: 3, Insightful

      IANAL, but is deterrence factored into civil law? I was under the impression that the only thing you can sue for is punitive and actual damages. I think civil court operates under the notion that you harmed me, so this amount of money will make me whole - I don't think it says anything about stopping someone else from harming me. Supposedly the punitive damages are to account for your bad action, not stopping someone else from doing the same.

    2. Re:I'm not so sure by sm62704 · · Score: 2, Insightful

      IANAL either, but I think the ACTUAL damages are to "make me whole". For instance, if someone runs a red light in Illinois you are entitled to three times the doctor's bills; this pays the doctor, your lawyer, and your third is for "pain and suffering." These are "actual damages". However, if there are other factors, like the other driver has no license or is drunk, etc, you can collect punitive damages as well as a deterrent to hum driving drunk without a license.

      --
      mcgrew's razor: Never attribute to stupidity that which can be explained by greedy self-interest
  9. Re:WRONG by Anonymous Coward · · Score: 5, Insightful

    That depends on the context.

    Is the GPL violation some kid who is giving the software to a few of his friends, but not allowing them to see the source? That's what's most comparable to this case.

    Or is something like a large router company using linux to power it's newest router, making a ton of money off it, and then not releasing the source? That's totally different from this case.

    Nice straw man argument though.

  10. Re:WRONG by wile_e_wonka · · Score: 5, Insightful

    So, because she can't show that she distributed a song exactly, say five, times, she should be charged an absurdly high amount for each infringement? What happened to proving damages?

    I think the problem is that the statute is not designed in a manner than can handle Napster and beyond peer-to-peer distribution. It is designed for instances in which an entity is making money off someone else's copyrighted work. Read the notes to the statute. It's pretty clear that Congress did not have in mind the possibility of someone sharing his or her individual music/movie/whatever collection with others on the Internet. Even Congress would not saddle a $150,000 fine on a person for sharing a $0.99 song.

  11. Re:WRONG by ByOhTek · · Score: 2, Insightful

    friends might be the wrong term...

    A few other people, unknown to the individual, given teh way file sharing works.

    --
    Self proclaimed typo king, and inventor of the bear destroying coffee table (patent not pending).
  12. Only sold one router? by Mathinker · · Score: 5, Insightful

    1) I can't remember anyone being sued for non-commercial distribution of GPL-ed software, and it's safe to assume that anyone distributing it commercially is trying to distribute it as much as possible, since every distribution is profitable.

    2) The FSF, at least, will gladly settle for the distribution of the source code (in the case of GPL2 --- at least, this is what Eben Moglen claims were RMS's instructions to him while he was counsel to the FSF). This isn't "many times the damages they actually perceive".

    1. Re:Only sold one router? by Mathinker · · Score: 3, Insightful

      Interesting. Perhaps you're right, but I think a better analogy would be that if the FSF were like the **AA, they'd be asking for the distribution of the source code of the illegally distributed program, and the distribution of the source code for 749 other programs of the same company, even if those other programs weren't distributed in violation of the GPL.

  13. I haven't seen this mentioned yet by Sir_Real · · Score: 5, Insightful

    So I'll just say it on behalf of (most of) the slashdot audience.

    Thank you. Thank you for doing the work that we didn't, couldn't or were unwilling to do. Thank you for carrying a heavy, unwieldy torch. Thank you. Thank you.

    Thank you.

  14. Re:WRONG by cfulmer · · Score: 4, Insightful

    Forget about the number -- it's whether she distributed any at all.

    The RIAA's claim is based on the idea that if you make a file available, you are distributing it, regardless of whether you actually distributed it anybody.

    The problem with the RIAA's claim is that it make distributors out of everybody who happens to have a song on a shared folder, even if an official "p2p" network isn't involved. Consider Windows file sharing: if "My Documents" on your dorm computer is readable by the universe, congratulations -- you now owe the RIAA thousands of dollars. Remember, it isn't a question of whether anybody actually copied the song, or even of whether you intended to distribute it.

    Consider this even more bizarre situation: Your kid installs p2p software on the family computer, sharing a directly called "music," that includes only songs he wrote & recorded. Later, you decide to rip your CD collection and, not knowing that there's p2p software, you stick it in "music." Now, you owe the RIAA a bunch of money.

  15. Re:Exxon Valdez damages were limited too by Anonymous Coward · · Score: 3, Insightful

    Let's see...

    Exxon: Well-funded corporation backed by powerful lobbying groups.
    RIAA: Well-funded lobbying group backed by powerful corporations.

    You: ???

  16. Re:WRONG by slashdotlurker · · Score: 4, Insightful

    Even Congress would not saddle a $150,000 fine on a person for sharing a $0.99 song.

    You mean until the members of Congress had lunch with their bribers, ahem, lobbyists ?

  17. Re:WRONG-Proving Damages by Nom+du+Keyboard · · Score: 3, Insightful

    What happened to proving damages?

    There may not be any damages at all. None of those distributions, even if they occurred, may have resulted in a single lost sale because people who download files may not have bought the song had the free download not been available. Then the recording industry is out zero money overall.

    --
    "It's the height of ridiculousness to say for those 9 lines you get hundreds of millions."
  18. Re:WRONG by compro01 · · Score: 2, Insightful

    theoretically, everyone is at least distantly related to everyone else on the planet, though you would need an utterly huge family tree and consanguinity table to determine the relationships.

    --
    upon the advice of my lawyer, i have no sig at this time
  19. Re:WRONG by Spy+der+Mann · · Score: 5, Insightful

    Do you feel the same when GPL software being illegally distributed?

    The cases are exactly the opposite. In the case of a filesharer, the public (i.e. us) benefits at the "expense" of a company (and i quote it because it's not proven that the companies lose anything).

    In the case of a GPL violation, a single company benefits at the expense of the whole public, who DO have to pay for some software that should be free.

  20. Re:Don't tag it that... by Maxo-Texas · · Score: 2, Insightful

    You can revoke their charter to incorporate but that's extremely rare (I think it has happened once).
    It is essentially killing the corporation.

    However.. i think they would have some slimy way to start a new corporation and transfer the assets and managers quickly to it.

    --
    She was like chocolate when she drank... semi-sweet at first and then increasingly bitter.
  21. Re:very clever, but it might not stick by FLEB · · Score: 2, Insightful

    I believe the problem with that, though-- and the reason they always go after uploaders-- is that the downloader could plausibly say that the were merely taking advantage of a copy of a file offered to them, and it wasn't their job to determine whether the distributor was properly licensed or not (there's not much ground there, but there's some). On the other hand, the uploader is taking the action of copying and redistributing with a clear lack of upstream consent from anyone. IIRC, the RIAA has never gone after uploaders who aren't distributors as well.

    --
    Information wants to be free.
    Entertainment wants to be paid.
    You just want to be cheap.
  22. Re:WRONG by lgw · · Score: 2, Insightful

    1. A record store can sell CDs with no special license, thanks to the right of first sale, but can't legally make and sell copies of a CD without a specific license.

    2. Renting is a copyright violation only for phonorecords. Blockbuster can legally buy DVDs and rent them out with no special license, but cannot legally do the same with CDs. No one said the law made sense.

    3. Giving copies of CDs to a friend is a strange area. An actual IP layer could probably clarify.

    4-5. "Making available" is BS, per this recent court ruling.

    --
    Socialism: a lie told by totalitarians and believed by fools.
  23. Re:WRONG by Apotekaren · · Score: 2, Insightful

    Statutory damages are used as a means of scaring people/companies into behaving and actually do stuff with some level of thought. If you know that a possible lawsuit from someone who's gotten hurt by using your badly designed product might cost you millions, you'll think again before putting that product on the market without proper warning labels.
    Example: McDonalds with their "WARNING:Hot Contents" label on their coffee cup.

    Some cases, mostly cases of human injury, the "pain and agony" damages are not someting I'd say is easy to calculate, but they are still part of the "actual damages". Then on top of the actual damages, the offending party will often have to pay statutory damages, which are often multiple times the value of the actual damages.
    And this is why the American judicial system can be so easily manipulated:

    1)Hurt yourself
    2)Claim your specific injury was not warned about in the documentation of the product
    3)??
    4)Profit

    As you can see, this method is because of it's simplicity, used by both corporate America and the American populace.

    --
    She: Hey, are you a traitor? Me: No, I'm atheist.
  24. Re:WRONG by lgw · · Score: 2, Insightful

    The thing is "distribution" in the sense of selling given copy of a work, "distribution" in the sense of renting given copy of a work, and "distribution" in the sense of producing new copies of a work are each covered by different laws. There's no uniform sense in which "distribution" is legal or illegal. Also "making available for distribution" is different from "distribution".

    If you serve a song in a way that a stranger can download it, that's clearly "making available for distribution", but it's just as clearly not per se evidence of actual distribution. There's no law against "making available for distribution", only against distribution (assuming the other rules aren't followed).

    --
    Socialism: a lie told by totalitarians and believed by fools.
  25. Re:WRONG by bane2571 · · Score: 3, Insightful

    I've said this in a post in another story, and I like that post so here it is. This applies perfectly to bit torrent, but also to most P2P techniques:

    The "average" ratio on, for example bit torrent should always be 100% since everyone downloading is getting the file from someone else that downloaded it. I guess the original seeder would put the ratio slightly above 100% but I'm sure you get my point.

    The thing is that average is likely propped up by a small minority of high ratio users and your average john doe would have a low ratio. From reporting here, the RIAA has been going after average people rather than high ratio people. at a guess I'd say my ratio never topped 80%, which is pretty good IMO as my max upload was 1/4 of my max download. My point is that most people will only ever upload maximum 1 CD for each CD. Even with double dipping by charging both uploader and downloader it would make most people liable for 2X[cost of CD] not 100,000 X[cost of CD]