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Copyright Law

Ninth Circuit Revises UMG Recordings v. Shelter Capital Opinion

Veoh logoI want to briefly interrupt the hubbub over Kirtsaeng (which I fully intend to contribute to at some point) to note that last week the Ninth Circuit released an updated opinion in UMG Recordings v. Shelter Capital Partners, the Section 512 immunity case it decided back in December 2011. The old opinion, 667 F.3d 1022 (9th Cir. 2011), is now vacated. Apparently the panel conducted a rehearing and the new opinion modifies the old one in a few ways, primarily to bring the opinion in line with the Second Circuit’s opinion in Viacom v. YouTube, 676 F.3d 19 (2d Cir. 2012). I’ve created a redlined version showing the changes (aside from minor differences like page numbers).

That’s a pretty interesting development, I think. I can’t think of another copyright case where an appellate court changed its opinion after having been persuaded by the reasoning in another circuit’s opinion. Certainly it would be better if the Ninth and the Second Circuits “talked to each other” more often in this way.

In any event, the outcome is still the same: UMG lost on all of its arguments that Veoh didn’t fall within the safe harbor, and that Veoh’s investors were secondarily liable for infringement; Veoh still loses on its argument that its Rule 68 offer of judgement should get it attorneys fees. But there are several important alterations to the reasoning. Read More »Ninth Circuit Revises UMG Recordings v. Shelter Capital Opinion

Securitized Copyright Income Streams: The New School Bond?

The ownership of academic work has been controversial for some time. One DC-area school district wants to simplify things:

A proposal by the Prince George’s County Board of Education to copyright work created by staff and students for school could mean that a picture drawn by a first-grader, a lesson plan developed by a teacher or an app created by a teen would belong to the school system, not the individual.

The measure has some worried that by the system claiming ownership to the work of others, creativity could be stifled and there would be little incentive to come up with innovative ways to educate students. Some have questioned the legality of the proposal as it relates to students.

I expect to see more of these “InstaGrab” style ownership claims in the future, as tax revolts and billionaire-funded political movements erode public support for education. The longer-term goal will be to push debt-financing down the educational ladder, from college to high school and beyond. If instability in the debt markets makes that less feasible, another solution is to securitize future income streams–be they wages after school or rents from IP created while in school. PG County may end up pioneering a whole new chapter in the financialization of education.
Read More »Securitized Copyright Income Streams: The New School Bond?