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Verdict Reached In RIAA Trial

Posted by CowboyNeal on Thu Oct 04, 2007 08:14 PM
from the finally-won-one dept.
jemtallon writes "The jury in the previously mentioned Captiol v Thomas story has reached a verdict. They have found in favor of the plaintiffs, Capitol, and ordered that she pay a $222,000 fine for 24 cases of copyright infringement."

Related Stories

[+] Testimony Wraps In RIAA Trial 132 comments
Eskimo Joe writes "A federal judge surprised observers in the Captiol v Thomas file-sharing trial yesterday by barring RIAA president Cary Sherman from testifying. 'After a brief recess this afternoon, plaintiffs' counsel Richard Gabriel and defendant's counsel David Toder made their cases before the judge as to the relevance of Sherman's testimony. Toder argued that Sherman's testimony was not relevant to the question at hand, the fact of whether Thomas was liable for copyright infringement. Gabriel said that Sherman would be able to tell the jury why this case was significant, and more importantly, describe the harm the RIAA believes piracy has caused to the music industry. "I don't want to turn this case into a soap box for the recording industry," Toder argued in response.' Testimony wrapped up today [Wednesday] with closing arguments expected Thursday morning." Ars has up a summary, filed a few hours earlier, of other testimony in the trial. The jury could come back with a verdict later today.
[+] White House Lauds MN RIAA Win, Analysis of Victory 368 comments
cnet-declan writes "The Bush administration's copyright czar says the RIAA's $222,000 recent jury verdict against a Minnesota woman shows copyright law is 'effective' and working as planned. C|Net's coverage has comments from Chris Israel, the U.S. Coordinator for International Intellectual Property Enforcement. Israel is formerly a senior Commerce Department official appointed by President Bush in July 2005 who previously worked for Time Warner's public policy arm (Warner Bros. Records is one of the plaintiffs in the RIAA case). The site also features an interview with Rep. Rick Boucher, no fan of the RIAA, on whether Congress will change the law, an analysis of why U.S. copyright law is broken, and four reasons why the RIAA won."
[+] Juror From RIAA Trial Speaks 918 comments
Damon Tog notes a Wired blog posting featuring quotes from a juror who took part in the recent RIAA trial. Some excerpts: "She should have settled out of court for a few thousand dollars... Spoofing? We're thinking, "Oh my God, you got to be kidding."... She lied. There was no defense. Her defense sucked... I think she thought a jury from Duluth would be naive. We're not that stupid up here. I don't know what the f**k she was thinking, to tell you the truth."
[+] Jammie Appeals, Citing "Excessive" Damages 403 comments
Peerless writes "Capitol v. Thomas defendant Jammie Thomas has officially appealed the RIAA's $222,000 copyright infringement award. She is seeking a retrial to determine the RIAA's actual damages, arguing that the jury's award was 'unconstitutionally excessive': 'Thomas would like to see the record companies forced to prove their actual damages due to downloading, a figure that Sony-BMG litigation head Jennifer Pariser testified that her company "had not stopped to calculate." In her motion, Thomas argues that the labels are contending that their actual damages are in the neighborhood of $20. Barring a new trial over the issue of damages, Thomas would like to see the reward knocked down three significant digits — from $222,000 to $151.20.'"
[+] News: Judge in Capitol v. Thomas Considers New Trial 234 comments
Jay Maynard writes "The judge in Capitol Records v. Thomas said today he's thinking about granting a new trial because he may have committed a 'manifest error of law' in his jury instructions. He says that his instruction that simply uploading music to a P2P network without any proof that anyone actually downloaded it may conflict with a case in the Eighth Circuit Court of Appeals that said 'infringement of [the distribution right] requires an actual dissemination.' Briefs are due by May 29, with oral argument July 1. The judge invited friend of the court briefs by May 29, as well." NewYorkCountryLawyer links to the Judge's order itself (PDF), in which the Judge notes that he may (in NYCL's words) "have overlooked controlling Eighth Circuit authority, the case of National Car Rental v. Computer Associates, which held that you can't have a violation of the 'distribution right' without an 'actual dissemination of copies or phonorecords.'" Update: 05/15 18:54 GMT by T : Note that while the linked story as well as Jay Maynard's summary use the term "upload," Thomas wasn't uploading the files themselves, only making them available.
[+] Law Profs File Friend-of-Court Brief Against RIAA 186 comments
NewYorkCountryLawyer writes "A group of 10 copyright law professors has filed an amicus curiae ('friend of the court') brief on the side of the defendant in Capitol v. Thomas, agreeing with the judge's recent decision that the $222,000 verdict won by the RIAA appears to be tainted by a 'manifest error of law.' The clear and well-written 14-page brief (PDF) argues that the 'making available' jury instruction, which the RIAA had requested and the judge ultimately accepted, was in fact a 'manifest error of law,' making the point, among others, that an interpretation of a statute should begin with the words of the statute. My only criticism of the brief is that it overstates the authorities relied on by the RIAA, citing cases which never decided the 'making available' issue as cases which had decided it in the RIAA's favor." As it turns out, the MPAA, close ally to the RIAA, has come forth with a more controversial view. They suggest that proof of actual distribution shouldn't be required. From their brief (PDF): "Mandating that proof could thus have the pernicious effect of depriving copyright owners of a practical remedy against massive copyright infringement in many instances."
[+] News: RIAA Gets Nervous, Brings In Big Gun 16 comments
NewYorkCountryLawyer writes "I guess the RIAA is getting nervous about the ability of its 'national law firm' (in charge of bringing 'ex parte' motions, securing default judgments, and beating up grandmothers and children) to handle the oral argument scheduled to be heard on Monday, August 4th in Duluth, in Capitol v. Thomas. So, at the eleventh hour, it has brought in one of its 'Big Guns' from Washington, D.C., a lawyer who argues United States Supreme Court cases like MGM v. Grokster to handle the argument. This is the case where a $222,000 verdict was awarded for downloading 24 songs, but the judge ultimately realized that he had been misled by the RIAA in issuing his jury instructions, and indicated he's probably going to order a new trial. But, not to worry. A group of 10 copyright law professors from 10 different law schools and several other amici curiae (friends of the court) have filed briefs now, so it is highly unlikely the judge will allow himself to be misled again, no matter who the RIAA brings in as cannon fodder on Monday."
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  • by nweaver (113078) on Thursday October 04 2007, @08:17PM (#20860755) Homepage
    Unfortunately inevitable, since there was really no defense contesting of the network forensics, or that the username in question just happened to be the same as the defendent's accounts on many other networks, that the system in question was connected to her cable modem, and using her IP address.

    Without such defense, a simple "preponderence of the evidence" (the criteria for a civil case) was inevitable.

    • by ruiner13 (527499) on Thursday October 04 2007, @09:21PM (#20861553) Homepage
      God they have balls. According to this Wired article [wired.com], the lawyer for the RIAA actually said "This is what can happen if you don't settle.". If that in itself isn't proof that all they are trying to do is extort people, I don't know what is.
      • by j00r0m4nc3r (959816) on Thursday October 04 2007, @08:29PM (#20860929)
        She will still end up paying $50k in legal fees, even if she wins an appeal. Just another reason to never do business with any RIAA entity ever again.
      • There is a case that challenges the constitutionality of such high fines. I believe our very own NewYorkCountryLaywer (912032) [slashdot.org] is counsel for the defendants.

        One thing you point out is paramount. Since this was a civil case, the fine should be only enough to promote equity rather than be punitive in nature.

        Another interesting thing is that, averaged out, this adds up to $9250 per infringement. At that price the defendant could have physically stolen about 600 copies of each work (assuming around $15 per work). So it pays to remember that the fines for physically stealing copyrighted works are much less than infringing on them.
        • by PhysicsPhil (880677) on Thursday October 04 2007, @08:53PM (#20861221)

          One thing you point out is paramount. Since this was a civil case, the fine should be only enough to promote equity rather than be punitive in nature.

          Another interesting thing is that, averaged out, this adds up to $9250 per infringement. At that price the defendant could have physically stolen about 600 copies of each work (assuming around $15 per work). So it pays to remember that the fines for physically stealing copyrighted works are much less than infringing on them.

          This was actually addressed in the Ars Technica writeup of the case. Normally the damages for copyright infringement are a few hundred dollars ($300 max rings a bell). In the case of willful infringement, however, damages can increase up to $150,000 per incident. The jury found that the defendant had engaged in such willful infringement, and could have awarded up to $3.6 million ($150,000 for each of 24 songs being distributed).

          • by Smeagel (682550) on Thursday October 04 2007, @09:03PM (#20861325)
            I would completely agree with this. Since the inception of emusic my online downloading has gone down significantly, and even more significantly very recently now that Amazon has some major label MP3 downloads.

            What the RIAA doesn't understand is that a LOT of people are perfectly willing to pay for the songs, we just don't want to pay for copies of them that we don't have control over. I run Linux on all my computers and my work is a linux shop, DRM'ed music is hardly even an option (not that I would pay for it if I could, I'd get a CD in a second over a DRM'ed piece of crap).
            • by cpt kangarooski (3773) on Thursday October 04 2007, @09:16PM (#20861485) Homepage
              Perhaps a copyright lawyer will come by and put me in my place.

              Okay.

              In the 1976 Act the amounts were $250 - $10,000, and could be lowered to $100 or raised to $50,000. Congress amended this in 1988, making the new amounts $500 - $20,000, $250, and $100,000. Congress amended it again in 1999, making the new amounts $750 - $30,000, left the minimum possible floor at $250, and $150,000.

              I'm thinking that the forces that got Congress to raise the statutory damages in 1999 were well aware of how cheaply copying could be done for. Likewise, the idea that not all copying was commercial and that individuals acting noncommercially could run afoul of copyright laws was well known at that time.
        • by anagama (611277) <<moc.oohay> <ta> <rettopeht>> on Thursday October 04 2007, @08:39PM (#20861067) Homepage
          Punitive damages is a term with a special meaning. No punitive damages were awarded in this case. Statutory damages could have been as high as $150,000 per song. While that level may well be punitive in a colloquial sense, we are talking a special usage -- not a conversational usage.
          • by mrwonton (456172) on Thursday October 04 2007, @09:04PM (#20861333) Homepage
            I think relating digital assets that can be copied indefinitely for free to someone's computer or cannabis is a bit misleading. The argument that can be made is that she 'stole' the revenue they may have made by selling her or the people she shared the music with the songs.

            Somehow 24 songs shared to some unknown but probably reasonably small number of people translates into $222k in damages? Considering a song is $1 on iTunes, she'd have to share each song to over 9000 people to cause that much in lost revenue (not that the full $1 goes to the record companies, but we can pretend...). At the low end, a song might be 2 megs? So she'd have had to share nearly half a terrabyte to accomplish this. That's a lot of data for 24 songs!
          • by Grishnakh (216268) on Thursday October 04 2007, @09:08PM (#20861391) Homepage
            You're right: sharing RIAA-copyrighted music is a very bad thing. Music by Britney Spears and Justin Timberlake should never be allowed into the public, where it can destroy people's minds. This is a matter of public health; the CDC should be involved. People caught "sharing" this music shouldn't be fined; they should be quarantined!

  • Appeal fund? (Score:5, Insightful)

    by tacarat (696339) on Thursday October 04 2007, @08:20PM (#20860815) Journal
    I wonder if she'll be allowed to pay the settlement like the recording industry did theirs. In unpopular CDs that cost pennies to make but apply to the fine at retail price.
  • by spirit_fingers (777604) on Thursday October 04 2007, @08:23PM (#20860861)
    Frankly, as much as I loathe the RIAA, Thomas' story simply didn't hold up. The prosecution was able to prove that in an attempt to evade prosecution, she had replaced her hard drive shortly after receiving a warning notice from the RIAA, not before as she claimed.

    It's a shame that the defendant of this first RIAA jury trial turned out to be a liar with a bogus defense. But apparently, that's who she was. Given the facts brought out in the case, I don't see how the jury could have found for the defense.
  • by MobyDisk (75490) on Thursday October 04 2007, @08:31PM (#20860963) Homepage
    This seems like a fairly open and shut case, so I'm not sure I understand the confusion here.

    Prosecution:

    ...her user name, IP address, Modem MAC address, pass-word-protected computer, and the songs in the shared folder matched her musical tastes.

    ...Thomas replaced the hard drive in her computer two weeks after an investigation.
    Defendant:
    Tried to get the RIAA president to testify, who has nothing to do with the facts of the case.

    ...There could have been a computer party at Thomas's home or someone could have been outside her window with a laptop.

    ...suggested that computer hacking or IP spoofing could as explanations.
    The RIAA had facts, and the defendant had excuses. I know everyone wants to defend the little guy, but please pick a better case than this one to represent the people. The only thing I see odd here is the fines. THAT is ridiculous.
  • by tjasond (680156) on Thursday October 04 2007, @09:12PM (#20861439)
    ... as soon as the judge backtracked this morning and ruled that "making available" was adequate evidence to demonstrate a violation of the copyright holder's rights. From Ars:

    "Instruction no. 14 proved to be a sticking point, as Thomas' counsel Brian Toder told Ars tonight that the judge's proposed instruction indicated that the plaintiffs must show that an actual transfer took place in order for there to be a finding of infringement. "

    Later, the judge reversed his opinion, at which point I knew this was over, but was at least still hopeful that the damages would be somewhat reasonable.

    According to the coverage at Ars, it was pretty clear that the RIAA had found the right person; they had used this same account name for an email address that a witness had verified was hers. The only remaining question in my mind was how well the making available argument would hold up before a jury. Unfortunately, it appeared as though the defense didn't focus any attention on this critical part of the prosecution's argument (until the 11th hour when the judge was deciding what instructions to give the jury for deliberations). Had the defense been pounding the drum of "making available is not provable infringement" instead of "let me show you how fast you can rip a CD", then this jury (and perhaps even the judge with respect to the jury instructions) may have been compelled to decide differently.

    In any event, it is what it is. The RIAA set their desired precedent, but for me there are still a couple of lingering questions:

    1. Is this really a good thing for the RIAA? I mean, we've heard about the lawsuit threats against dead people, grandmas, and kids, but now there is an actual verdict in a jury trial that pins a $220K judgment against a single mother. I have this feeling that this case is going to make much greater waves in the main stream media then the no-go lawsuit threats (dismissed with/without prejudice) or the tens of thousands of settlement cases. Because of this I also think there is a huge potential for blowback on a large scale, not just in the geek circles.

    2. Does the judge have any discretion to lower the damages? It seems as though he's given the defense every opportunity to succeed, from the "this courtroom is not your soap box" comments to the RIAA, to initially requiring evidence of a file transfer actually taking place in the jury instructions. If he does have discretion, I would be surprised if he didn't use it.

    All in all, this is a sad situation. Single mother, probably with little to no idea what she was doing, targeted by the RIAA, then levied with enough fines to ruin her life. The RIAA, a lawsuit happy organization continuing to rob artists, consumers, and own our government, are having a champagne toast tonight thanks to their victory in court today. Enjoy your victory, and as far as "setting a precedent," you should be careful what you wish for.
  • by Weaselmancer (533834) on Thursday October 04 2007, @09:19PM (#20861521)

    "This is what can happen if you don't settle," RIAA attorney Richard Gabriel told reporters outside the courthouse.

    Notice how they throw in an impassioned plea to roll over and take it? This court case is nothing about justice - it's an extension to their protection racket. (quote from here) [wired.com]

    When, oh when, will somebody step in and nail these guys with a RICO suit? [wikipedia.org]

    • by Anonymous Coward on Thursday October 04 2007, @08:27PM (#20860897)
      Whereas in Soviet Russia, fiction is intellectual property. Oh wait...

      (This post was written by a would-be novelist, but is 59,970 words too short to qualify as a novel.)
    • by Valdrax (32670) on Thursday October 04 2007, @08:53PM (#20861215)
      Anyone who uses TOR for file sharing is either maliciously or negligently engaged in the destruction of the network. TOR cannot handle file-sharing loads. The most that TOR can handle is control communications (like tracker communications in BitTorrent). If you actually start passing data transmissions through it, you'll kill its usability.

      You're better off using a P2P program that's designed to hide your activity than slapping TOR over one that isn't designed for it.
      • Re:Whoops (Score:5, Insightful)

        by ScrewMaster (602015) on Thursday October 04 2007, @09:15PM (#20861481)
        The other thing to remember is that, if you want to illegally download songs:

        a. don't use a swarming protocol like Bit Torrent (not a good choice for small files anyway) and,

        b. make sure you're a leecher (not lecher, as I assume most Slashdotters already are.) As I understand it, all these cases have come about from the people making files available, not the people actually downloading them.
      • by some damn guy (564195) on Thursday October 04 2007, @09:38PM (#20861691)
        Ever ripped a CD? You might as well have.

        The moral of the story? THE RIAA IS SCARED STUPID. She had 400 CDs at one point!!!!!!! They just sued the shit out of one of their best customers!

        Fuck these people. Hey, I just 'stole' a CD. Yep, I got a perfect digital copy of the recording and the recording industry didn't get a DIME. Know what I did? I bought a USED CD! Roll up a hondo and snort that Sony.

        So that's the moral of the story. BUY USED MUSIC. Hey, old vinyl is cheaper than iTunes and sounds better too. It's the best way to 'steal' from the music industry because it's 100% legal, and it robs them of a sale from a person WHO IS ACTUALLY WILLING TO PAY MONEY FOR THE MUSIC.

        If you're a musician, record yourself, it's far easier than it ever was. Then sell your own stuff through iTunes or something if you want to get paid. You don't need these people unless you want them to pay for publicity or your recording (but they'll just take it out of your check anyways).

        It sounds way better than mp3, it's cheaper, and best of all you'll be doing YOUR part to help kill the record industry!