ZOMBA ENTERPRISES, INC.; ZOMBA SONGS, INC., Plaintiffs-Appellees, v. PANORAMA RECORDS, INC., Defendant-Appellant., 491 F.3d 574

Summary

The manufacturer recorded and sold karaoke discs without considering whether it infringed the intellectual property rights of others. The companies held copyrights to songs used by the manufacturer on its karaoke discs. The companies sent a cease and desist letter, but the manufacturer failed to obtain licenses to use the companies' songs. The appellate court found that the manufacturer made and sold the karaoke packages for a profit which militated against a fair-use defense. The manufacturer also copied the relevant compositions in their entirety. The manufacturer could not show that its copying passed the market-harm test. The manufacturer exhibited a reckless disregard for the companies' rights; accordingly, reliance on its fair-use defense was objectively unreasonable. The manufacturer's infringements were willful and justified enhanced statutory damages. The Excessive Fines Clause of the Eight Amendment did not apply. The statutory damages did not violated due process. The ...