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No Breach Seen in Suing Licensee over Downloads
The U.S. District Court for the Southern District of New York decided that Bridgeport Music didn't breach a mechanical-licensing agreement by filing a copyright-infringement suit against its licensee for granting digital-download licenses to third parties. Bridgeport Music Inc. v. Universal Music Group Inc., 05 CIV. 6430.
Bridgeport claimed that the mechanical licenses issued in 1991 to PolyGram Records, which defendant UMG later acquired, didn't cover digital downloading because that distribution medium didn't exist then. UMG contended in its counterclaim that digital downloads are the same as CD and cassette uses, and thus covered by the mechanical licenses. By filing suit, UMG argued, Bridgeport breached its licensing promise that it was 'the sole and lawful owner of all right, title and interest in and every matter and thing granted and released herein.'
But the district court noted: 'Even if it is ultimately determined that UMG's position as to the scope of the mechanical licences prevails, it would not follow that Bridgeport has breached the contract for bringing a good faith, if unsuccessful, copyright infringement action ' Bridgeport's assertion that the mechanical licenses did not extend to all of the uses Defendants have engaged in does not contradict its warranty.'
The U.S. District Court for the Southern District of
Bridgeport claimed that the mechanical licenses issued in 1991 to PolyGram Records, which defendant UMG later acquired, didn't cover digital downloading because that distribution medium didn't exist then. UMG contended in its counterclaim that digital downloads are the same as CD and cassette uses, and thus covered by the mechanical licenses. By filing suit, UMG argued, Bridgeport breached its licensing promise that it was 'the sole and lawful owner of all right, title and interest in and every matter and thing granted and released herein.'
But the district court noted: 'Even if it is ultimately determined that UMG's position as to the scope of the mechanical licences prevails, it would not follow that Bridgeport has breached the contract for bringing a good faith, if unsuccessful, copyright infringement action ' Bridgeport's assertion that the mechanical licenses did not extend to all of the uses Defendants have engaged in does not contradict its warranty.'
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