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A&M Records, Inc. v. Napster, Inc.

Citations: 284 F.3d 1091; 62 U.S.P.Q. 2d (BNA) 1221; 2002 Cal. Daily Op. Serv. 2635; 52 Fed. R. Serv. 3d 5; 2002 Daily Journal DAR 3223; 2002 U.S. App. LEXIS 4752Docket: Nos. 01-15998, 01-16308, 01-16003, 01-16011

Court: Court of Appeals for the Ninth Circuit; March 24, 2002; Federal Appellate Court

Narrative Opinion Summary

In the case concerning Napster, the district court issued a modified preliminary injunction to address allegations of contributory and vicarious copyright infringement resulting from its peer-to-peer music sharing service. The court required Napster to remove infringing files upon notification and to actively monitor its platform, staying the shutdown order while the appeal is pending under 28 U.S.C. § 1292(a)(1). Both the plaintiffs and Napster filed appeals; the plaintiffs argued the injunction insufficiently protected their rights, while Napster contested the injunction's vagueness and the shutdown's legality. The court upheld the modified injunction and the shutdown order, finding no abuse of discretion. It also affirmed the role of a technical advisor in compliance monitoring, ruling this did not usurp judicial authority. The court emphasized Napster's obligation to block infringing content effectively, aligning with a 'zero tolerance' standard. The district court's authority to modify injunctions during an appeal was supported by Federal Rule of Civil Procedure 62(c) and precedent, allowing it to ensure compliance with legal standards. Ultimately, five related lawsuits were consolidated, with similar injunctions issued, though variations were deemed irrelevant to the appeal.

Legal Issues Addressed

Authority to Modify Injunction during an Appeal

Application: The court can modify the injunction to ensure compliance despite an ongoing appeal, aided by Federal Rule of Civil Procedure 62(c).

Reasoning: Under Federal Rule of Civil Procedure 62(c), a district court can suspend, modify, restore, or grant an injunction during the pendency of an appeal regarding an interlocutory or final judgment related to injunctions.

Contributory and Vicarious Copyright Infringement

Application: Napster's peer-to-peer music sharing service is alleged to contribute to and vicariously infringe copyrights, necessitating a modified preliminary injunction.

Reasoning: The plaintiffs allege contributory and vicarious copyright infringement related to Napster's peer-to-peer music sharing service.

Jurisdiction under 28 U.S.C. § 1292(a)(1)

Application: The court has jurisdiction to hear the appeal concerning the modified preliminary injunction against Napster.

Reasoning: The court has temporarily stayed this shutdown order while the appeal is pending, and has jurisdiction under 28 U.S.C. § 1292(a)(1).

Preliminary Injunction Modification and Compliance

Application: The modified injunction requires Napster to remove infringing files once notified, and mandates active monitoring of its systems.

Reasoning: The modified injunction requires Napster to remove user files from its music index once it has reasonable knowledge that they contain copyrighted works, with plaintiffs obligated to notify Napster of infringing files by providing specific details about the works.

Technical Advisor Role in Compliance Monitoring

Application: A technical advisor assisted the district court in monitoring Napster’s compliance without overstepping judicial authority.

Reasoning: The court rejects this, stating that the advisor did not replace the court’s role and did not issue independent legal findings.

Zero Tolerance Compliance Standard

Application: Napster must demonstrate effective blocking of infringing files after notice, meeting a 'zero tolerance' standard for compliance.

Reasoning: The court mandated that Napster keep the service disabled until it could demonstrate reliable capabilities to block noticed copyrighted works with a high success rate, emphasizing a zero-tolerance standard for infringement.