What happened?
Originally, Universal City Studios sued Sony for copyright infringement due to Betamax recorder. Sony appealed till the Supreme Court.
Universal claimed violation of copyright, argued their works were being exploited.
Who won?
Sony won
Why did they win?
1. Staple Article defense
U.S. copyright law
The staple article of commerce doctrine "absolves the equivocal conduct of selling an item with substantial lawful as well as unlawful uses,
and limits liability to instances of more acute fault than the mere understanding that some of one's products will be misused.
It leaves breathing room for innovation and a vigorous commerce."
商业原则的主要条款“免除了以实际合法和非法用途销售产品的模棱两可的行为，
并将责任限制在更严重的过失，而不仅仅是理解自己的某些产品会被滥用。
它为创新和充满活力的商业留下了喘息的空间。”
2. Fair Use denfense
Fair use has four factors to consider 1. Purpose of the use - Purpose and character of the use, i.e is it used in commercial, or nonprofit educational.
2. Nature of the use - Nature of the copyrighted work
3. Proportion used - Amount and sustainability of the portion used in relation to the copyrighted work as whole
4. Impact on the market - Effect of the use upon the potential market or value of the copyrighted work
//4 factors of fair use, totality of circumstances.
//Totality of circumstances – each element is weighed equally, so being unable to prove one element means unable to prove copyright infringement.
There was no impact on market, it only positively affected it.
Time shifting was a novel idea that allowed for more people to watch it.
The programs were being broadcasted live for free anyways.
How did the witnesses play a role (how did they go back and forth in their argument)?
For Universal:
76% used it for time shifting.
Griffiths: “Not only to time shift, but also to build a library of cassettes. It was too expensive to maintain. Need to erase and reuse tapes.”
Claimed he kept needing to delete recordings due to limited space. For Sony:
96% used to record programs they would have otherwise missed.
Mister Rogers
Important terms:
VTR: Video Tape Recorder
Time shifting: recording a live show for viewing after the broadcast
=========================VSERION 2===============================
Sony v. Universal CityStudios
a. Sony invented a video tape recorder named Betamax which could recordTV programs for users who wanted to watch the programslater.
b. The Universal City Studio sued Sony for copyrightinfringement
c. One of the ideas Universal is afraid of is the commercial/ advertisement they going to loss due to Betamax
but Sony argue that people use the Ad time togo to the bathroom and not really watchthem.
d. The process of Betamax recording and watch later is calledTime-shifting
e. The court ruled in favor ofSony
f. Sony does not have any more influence of the product after it is sell afterthe shelf.
g. Mr.Rogers - witness- wanted people to record and share his educationalprogram
h. The recorded TV program are free in the firstplace
i. Questions from Guide: 1.Understand why this is an extremely important case in copyright law. 2.Know what happened in this case, including the background issues, the specific legal reasoning for the final outcome, details of the testimony supporting each side, and some of the "unspoken" reasons for the court's decision. 3.Be prepared to discuss the specific arguments and counter-arguments offered by each side. How did Copyright and the Fair Use Doctrine apply to the case? 4.What is its impact on copyrighted music/videos/software today? i. Sony creates Betamax video tape recorders and universal studios was seeking an injunction (stop you from producing) of the tape recorders because people were using them to record copyrighted television shows. ii. Universal lost the case before hand was now appealing it claiming contributory infringement iii. Research showed that there was only a very small portion of people that were selling the copies and not impacting the copyright holders potential market (fair use). iv. Worth mentioning that Mr Rogers, the most televised man ever at the time, testified in favor of Sony, likely influencing the outcome of the case.
How do the case help define the meaning of "FairUse?"
Sony: Manufacturers of home video recording devices (like betamax or VCRs) can’t be liable for infringement. “Time shifting” is fair use and not copyright infringement. If someone was invited to watch a televised program in itsentirety for free, reproduction of the entire work is fairuse.
===========================================VERSION3==============================================
- The main issue was that if Sony’s product is liable for copyright infringement.
- Sony just made a product for people but Universal was suing Sony for the actions of the users using their box.
- Sony used testimony of Mr. Roger who broadcast programs for children and he said he doesn’t mind if children watch his show again and again.
- In other words, he gave permission to copyright work.
- There were sports organizations that also don’t mind if people watch their sports events or games again and again.
- A vicarious liability can only be imposed on Sony if they sold equipment knowing that people will make copies of unauthorized material.
- The court was forced to apply the totality of circumstances theory based on four doctrines to decide the Fair Use.
- The universal study was worried that they will lose money from the advertisers when they broadcast their hit films annually.
- Based on the evidence and the use of product for only time shifting was enough to convince court that
- Sony’s product is not responsible for copyright infringement because they did mention in instructions that
- some of the programs broadcasted could be lead to copyright infringement.
- Court has not spoken a lot about “impact on market” under fair use.
- Because there was no impact of time shifting on market.
- So it helped court to rule in favor of Sony as time shifting fell under fair use.
- Court wants to save new innovative technology so they let Sony go.
===================================QUIZ QUESTIONS=================================================
