Þo.

l3-46l

IÞ THI
!"#$%&% ()"$* )+ *,% -./*%0 !*1*%2
__________

AMI!ICAÞ I!OAÐCASTIÞC COMIAÞIIS, IÞC., IT A!.,
Pe/i/ionere,

v.


AI!IO, IÞC. I/K/A IAMIOOM !AIS, IÞC.,
IeeponJen/.
__________

!" $%&'&'(" )(* + ,*'& () -%*&'(*+*'
&( &.% /"'&%0 1&+&%2 -(3*& () 455%+62
)(* &.% 1%7("0 -'*73'&
__________

89:;< <!9 9;1$!=>;=?
__________

I!IÞÐA M. COTTI!
CIÞI!A! CO!ÞSI!
ÐAÞII! I!OWÞ
ÐII!TY CIÞI!A! CO!ÞSI!
AI!IO, IÞC.
280 Summor Sfroof
4fh IIoor
Iosfon, MA 022l0
(6l?) 86l-4290


Ðocombor l2, 20l3

ÐAVIÐ C. I!IÐI!ICK
Couneel of IecorJ
AA!OÞ M. IAÞÞI!
CAIT!IÞ S. HA!!
KI!!OCC, H!II!, HAÞSIÞ,
TOÐÐ, IVAÞS & IICI!,
I.!.!.C.
l6l5 M Sfroof, Þ.W.
SuIfo 400
WnshIngfon, Ð.C. 20036
(202) 326-?900
(dfrodorIck¸khhfo.com)

(AJJi/ionol Couneel Lie/eJ On 1neiJe Coter)


ÐAVIÐ !. HOSI
MA!K S. I!ZI!!A
IISH & !ICHA!ÐSOÞ I.C.
Ono MnrInn Inrk ÐrIvo
Iosfon, MA 022l0-l8?8
(6l?) 542-50?0

SITH Ð. C!IIÞSTIIÞ
COÞSTAÞTIÞI CAÞÞOÞ !!I
Ono IrnnkIIn Squnro
l30l K Sfroof, Þ.W.
SuIfo l050 Insf
WnshIngfon, Ð.C. 20005
(202) 204-3500



@/;1?:!= $9;1;=?;>
Whofhor Aoroo ¨µorform|s] µubIIcIy,¨ undor Soc-
fIons l0l nnd l06 of fho CoµyrIghf Acf, by suµµIyIng
romofo oquIµmonf fhnf nIIows n consumor fo funo
nn IndIvIdunI, romofoIy Iocnfod nnfonnn fo n µubIIcIy
nccossIbIo, ovor-fho-nIr brondcnsf foIovIsIon sIgnnI,
uso n romofo dIgIfnI vIdoo rocordor fo mnko n µorsonnI
rocordIng from fhnf sIgnnI, nnd fhon wnfch fhnf
rocordIng.


II
-!9$!94?; >:1-A!1/9; 1?4?;B;=?
Iursunnf fo !uIo 29.6 of fho !uIos of fhIs Courf,
rosµondonf Aoroo, Inc. sfnfos fho foIIowIng:
Aoroo, Inc. hns no µnronf corµornfIon. !SAÞI
!!C, n subsIdInry of IAC/InforAcfIvoCorµ, n µubIIcIy
frndod comµnny, owns l0° or moro of Aoroo, Inc.`s
sfock.



III
?48A; !< -!=?;=?1
Ingo
Q!ISTIOÞ I!ISIÞTIÐ .......................................... I
CO!IO!ATI ÐISC!OS!!I STATIMIÞT ............ II
TAI!I OI A!THO!ITIIS ...................................... Iv
STATIMIÞT .............................................................. 3
l. Aoroo`s TochnoIogy ........................................... 3
2. Tho ÐIsfrIcf Courf ÐocIsIon ............................. 5
3. Tho Courf of AµµonIs ÐocIsIon ........................ 9
A!C!MIÞT ............................................................. l2
I. Tho ÐocIsIon IoIow Is Corrocf ....................... l2
A. Aoroo`s Sysfom Ðoos Þof TrnnsmIf A
Iorformnnco ¨To Tho IubIIc¨ ................... l2
I. Aoroo`s !sors Þof Aoroo ¨Trnns-
mIf¨ Confonf !sIng Aoroo`s Sysfom ......... l?
II. THIS CASI I!OVIÐIS AÞ AII!O-
I!IATI VIHIC!I IO! !ISO!VIÞC
THI IMIO!TAÞT Q!ISTIOÞ OI
IIÐI!A! !AW I!ISIÞTIÐ ..................... l8
COÞC!!SIOÞ .......................................................... 23



Iv
?48A; !< 4/?C!9:?:;1
Ingo
CASIS
Cor/oon Ae/uor/ LP, LLLP t. CSC HolJinge,
1nc., 536 I.3d l2l (2d CIr. 2008), cer/.
JenieJ, 55? !.S. 946 (2009) ................ 6, ?, 8, 9, l0,
ll, l4, 2l, 22
ColunIio Pic/uree 1nJue., 1nc. t. IeJJ Horne,
1nc., ?49 I.2d l54 (3d CIr. l984) ........................... l4
Iloto Wor/e, 1nc. t. Gun/er, 689 I.3d ?54
(?fh CIr. 20l2) ...................................................... l5
Ior/nigl/l, Corp. t. Ini/eJ Ar/ie/e Teletieion,
1nc., 392 !.S. 390 (l968) ................................l5, l6
Iox Teletieion S/o/ione, 1nc. t. Borr,Driller
Con/en/ S,e., PLC, 9l5 I. Suµµ. 2d ll38
(C.Ð. CnI. 20l2) ................................................... 20
Iox Teletieion S/o/ione, 1nc. t. IilnOn X LLC,
CIvII AcfIon Þo. l3-?58 (!MC), 20l3 W!
4?634l4 (Ð.Ð.C. Soµf. 5, 20l3) ........................... 20
Groter Ton/ & Mfg. Co. t. LinJe Air ProJe.
Co., 336 !.S. 2?l (l949) ...................................... l9
Telepronp/er Corp. t. ColunIio BrooJ. S,e.,
1nc., 4l5 !.S. 394 (l9?4) ............................ 6, l5, l6
Ini/eJ S/o/ee t. Anericon Soc`, of Conpoeere,
Au/lore & PuIlielere, 62? I.3d 64 (2d CIr.
20l0) ....................................................................... 9




v
STAT!TIS
CommunIcnfIons Acf of l934, ch. 652, 48 Sfnf.
l064 ........................................................................ 6
§ 30l, 48 Sfnf. l08l ............................................... 6
§ 309(b)(l), 48 Sfnf. l085 ...................................... 6
CoµyrIghf Acf of l9?6 (l? !.S.C.):
l? !.S.C. § l0l ................................. 2, ?, l3, l4, l5
l? !.S.C. § l06(4) ....................................... 2, l2, l5

!ICIS!ATIVI MATI!IA!S
H.!. !oµ. Þo. 94-l4?6 (l9?6), reprin/eJ in
l9?6 !.S.C.C.A.Þ. 5659 ...................................... l6

OTHI! MATI!IA!S
ÐondIIno HoIIywood, IilnOn X IounJ 1n
Con/enp/ Of Cour/ Bu/ Ao/ IineJ Oter Bon
Violo/ion (Þov. 25, 20l3), o/ hffµ://www.
dondIIno.com/20l3/ll/fIImon-x-found-In-
confomµf-of-courf-buf-no-fIno-ovor-bnn-
vIoInfIon/ .............................................................. 20
Anfhony Hn, Apple`e iClouJ Greu 20 Percen/
in Q2, /o 300M Ieere, TochCrunch (Aµr. 23,
20l3), o/ hffµ://fochcrunch.com/20l3/04/23/
IcIoud-q2/ .............................................................. 2l
Josh !ornor, Tle 1npoc/ of Cop,rigl/ Polic,
Clongee on Ven/ure Copi/ol 1ntee/nen/ in
ClouJ Conpu/ing Conponiee (Þov. 4,
20ll), o/ hffµ://www.nnnIysIsgrouµ.com/
uµIondodIIIos/IubIIshIng/ArfIcIos/!ornor_
InII20ll_CoµyrIghf_IoIIcy_VC_Invosfmonfs.
µdf ........................................................................ 2l


vI
2 MoIvIIIo I. ÞImmor & ÐnvId ÞImmor,
Ainner on Cop,rigl/ (rov. od. 20l3) ................. l3
JngdIsh !oboIIo, Ih.Ð., ISuµµII Corµ. Iross
!oIonso, SuIecrip/ione /o ClouJ S/oroge
Serticee /o Ieocl Holf-Billion Letel Tlie
Yeor (Soµf. 6, 20l2), o/ hffµ://www.IsuµµII.
com/MobIIo-nnd-WIroIoss-CommunIcnfIons/
Þows/Ingos/SubscrIµfIons-fo-CIoud-Sforngo-
SorvIcos-fo-!onch-HnIf-IIIIIon-!ovoI-ThIs-
Yonr.nsµx ............................................................. 2l




Tho coro Issuo In fhIs cnso Is whofhor n consumor
cnn nccoss nnd confroI nn IndIvIdunI, romofoIy Iocnf-
od nnfonnn nnd dIgIfnI vIdoo rocordor, ownod by n
fhIrd µnrfy, fo rocord nnd vIow IocnI, ovor-fho-nIr
brondcnsf foIovIsIon µrogrnmmIng wIfhouf subjocfIng
fho fhIrd µnrfy fo IInbIIIfy for InfrIngIng coµyrIghf
ownors` oxcIusIvo rIghf fo µorform works ¨µubIIcIy.¨
If Is woII soffIod fhnf n consumor cnn doµIoy such
oquIµmonf nf homo wIfhouf InfrIngIng coµyrIghf.
Tho Socond CIrcuIf horo nffIrmod fhnf consumors
nIso mny nccoss nnd oµornfo fho snmo fyµos of oquIµ-
monf romofoIy fhrough fho Infornof wIfhouf InfrIng-
Ing µofIfIonors` oxcIusIvo µubIIc-µorformnnco rIghfs.
Ivon fhough fho Socond CIrcuIf docIdod fhnf Issuo
corrocfIy, µofIfIonors hnvo sIgnnIod fhoIr InfonfIon fo
wngo n wnr of nffrIfIon by ro-IIfIgnfIng fhIs Issuo In
ovory mnrkof fo whIch Aoroo oxµnnds Ifs busInoss.
AccordIngIy, Aoroo boIIovos If Is nµµroµrInfo for fhIs
Courf fo grnnf rovIow fo nffIrm fho docIsIon boIow.
!osµondonf nofos, howovor, fhnf fho quosfIon µro-
sonfod In fho µofIfIon Is nof fnIfhfuI fo fho dIsfrIcf
courf`s fIndIngs nnd fho undIsµufod fncfs, nnd so hns
roformuInfod If.
Tho docIsIon boIow Is corrocf. Tho ossonfInI bnr-
gnIn fhnf µofIfIonors mndo fo obfnIn, for froo, µubIIc
sµocfrum worfh bIIIIons of doIInrs wns fhnf, onco fhoy
hnvo brondcnsf fhoIr µrogrnmmIng, consumors hnvo
n rIghf fo rocoIvo nnd fo vIow fhnf µrogrnmmIng
usIng nn nnfonnn nnd fo coµy fhnf µrogrnmmIng for
fhoIr µorsonnI uso. Tho dIsfrIcf courf found fhnf
¨Aoroo`s e,e/en nIIows ueere fo nccoss froo, ovor-fho-
nIr brondcnsf foIovIsIon fhrough nnfonnns nnd hnrd
dIsks Iocnfod nf Aoroo`s fncIIIfIos.¨ Iof. Aµµ. 62n
(omµhnsos nddod). Inch consumor hns nccoss fo n
romofoIy Iocnfod IndIvIdunI nnfonnn fhnf onIy rocoIvos
n brondcnsf sIgnnI whon n usor roquosfs fo funo fo


2
n µnrfIcuInr chnnnoI. Tho consumor usos Aoroo`s
oquIµmonf fo cronfo n unIquo coµy of fhnf µrogrnm-
mIng, nnd fho IndIvIdunI usor cnn vIow fhoIr coµy
usIng nn Infornof-connocfod dovIco shorfIy fhoro-
nffor. Þo ofhor µorson cnn nccoss fhnf coµy. !ndor
fhoso cIrcumsfnncos, ns fho dIsfrIcf courf hoId nnd
fho Socond CIrcuIf nffIrmod, Aoroo`s sysfom Is usod
by nn Aoroo IndIvIdunI usor fo mnko n frnnsmIssIon
onIy fo hImsoIf, nof ¨fo fho µubIIc.¨ l? !.S.C. § l0l;
eee iJ. § l06(4). Moroovor, If Is oqunIIy cIonr fhnf
Aoroo`s usors, nof Aoroo, oxorcIso fho voIIfIonnI con-
froI ovor fho sysfom fhnf Is nocossnry for nny fIndIng
of dIrocf IInbIIIfy for coµyrIghf InfrIngomonf.
ÞovorfhoIoss, µofIfIonors nggrossIvoIy hnvo µur-
suod cInIms fhnf Aoroo Is InfrIngIng coµyrIghf
ownors` oxcIusIvo rIghf, undor l? !.S.C. § l06(4), fo
µorform fhoIr works ¨µubIIcIy.¨ To dnfo, µInInfIffs
hnvo commoncod such cInIms In fIvo cnsos In fhroo
sfnfos. Þono of fho cInIms ngnInsf Aoroo hns suc-
coodod. Tho Socond CIrcuIf rojocfod µofIfIonors`
cInIm for n µroIImInnry InjuncfIon on fho morIfs, ns
dId fho fodornI dIsfrIcf courf In Mnssnchusoffs. IofI-
fIonors nofo, howovor, fhnf fwo dIsfrIcf courfs hnvo
ruIod ngnInsf ono of Aoroo`s µurµorfod comµofIfors,
IIImOn. Iocnuso of fho oxfonsIvo ovIdonfInry rocord
nnd cnrofuI fncf-fIndIng by fho dIsfrIcf courf boIow,
fhIs cnso (nnd nof fho cnsos InvoIvIng IIImOn) µro-
vIdos nn nµµroµrInfo vohIcIo for fhIs Courf fo rosoIvo
fhIs Issuo. Thoroforo, nIfhough Aoroo dIsngroos wIfh
µofIfIonors` µrosonfnfIon In fhoIr µofIfIon, If doos
ngroo fhnf rovIow Is wnrrnnfod now, on fhIs osfnb-
IIshod fncfunI rocord.
AccordIngIy, fho Courf shouId grnnf corfIornrI fo
docIdo fho quosfIon ns rofrnmod In fhIs rosµonso nnd
nffIrm fho Socond CIrcuIf`s judgmonf In fhIs cnso.


3
1?4?;B;=?
DE 4%*%(F2 ?%7."(6(GH
Aoroo sImµIIfIos µubIIc nccoss fo froo brondcnsf
foIovIsIon by mnkIng If onsIor
l
for consumors fo
rocord nnd wnfch brondcnsf µrogrnmmIng usIng
nn IndIvIdunI nnfonnn nnd ÐV! fhnf fhoy confroI vIn
n Inµfoµ, fnbIof, or smnrfµhono. A usor nccossos fhnf
oquIµmonf by IoggIng onfo Aoroo`s wobsIfo wIfh nn
Infornof-connocfod dovIco nnd soIocfIng n IocnIIy
brondcnsf µrogrnm jusf ns fhnf usor mIghf do usIng n
homo ÐV!. See Iof. Aµµ. 62n; HorowIfz !oµorf ¶ 56;
!IµowskI ÐocI. ¶ 6. Tho usor mny fhon chooso fo
¨Wnfch¨ or ¨!ocord¨ fho µrogrnm.
2
See Iof. Aµµ.
62n-63n.
In oIfhor ovonf, fho usor cnusos nn nnfonnn nssIgnod
soIoIy fo fhnf usor fo funo fo fho brondcnsf sIgnnI for
fho sfnfIon fhnf Is brondcnsfIng fho soIocfod µrogrnm.
See iJ. nf 65n; HorowIfz !oµorf ¶ 64. Inch nnfonnn
In Aoroo`s sysfom consIsfs of n µnIr of mofnI Iooµs
roughIy fho sIzo of n dImo. See Iof. Aµµ. 6?n. IIghfy
such nnfonnns cnn bo µnckod on ono ond of n cIrcuIf
bonrd, nnd l6 bonrds cnn bo sforod µnrnIIoI fo ono
nnofhor In n mofnI housIng. See iJ. nf 6?n-68n. In n
fncfunI fIndIng fhnf µofIfIonors hnvo nof chnIIongod

l
A consumor cnn uso nn nnfonnn, dIgIfnI vIdoo rocordor
(¨ÐV!¨), nnd modIn-shIffIng dovIco fo obfnIn fhIs funcfIonnIIfy
usIng oquIµmonf doµIoyod nf fho usor`s homo. See Iof. Aµµ.
64n; HorowIfz !oµorf ¶¶ ?l-??. Tho oxµorf roµorf of InuI Hor-
owIfz (Ðkf. Þo. ?8-l) nnd fho docInrnfIons of Josoµh !IµowskI
(Ðkf. Þo. 80) nnd ChnIfnnyn KnnojIn (Ðkf. Þo. ?9) woro submIf-
fod fo fho dIsfrIcf courf nnd nro shorf-cIfod In fhIs brIof fo fho
µorfInonf µnrngrnµhs of fhoIr submIssIons.
2
ThIs mnnnor of oµornfIon Is comµnrnbIo fo fhnf of n homo
ÐV!. Whon n consumor usos n homo ÐV!, nII confonf IncIud-
Ing ¨IIvo¨ confonf Is µInyod bnck by fho consumor from n
rocordIng, fo onnbIo µnuso nnd rowInd funcfIonnIIfy.


4
on nµµonI, fho dIsfrIcf courf rojocfod µofIfIonors` con-
fonfIon fhnf ¨Aoroo`s nnfonnns funcfIon coIIocfIvoIy
ns n sIngIo nnfonnn.¨ 1J. nf 6?n. Tho courf dofor-
mInod, bnsod on oxfonsIvo oxµorf dIscovory nnd fos-
fImony, fhnf ¨onch nnfonnn funcfIons IndoµondonfIy.¨
1J. nf ?ln, ?3n.
Whon n usor funos nn nnfonnn fo rocoIvo n brond-
cnsf sIgnnI, nn IndIvIdunI coµy of fho µrogrnmmIng
cnrrIod by fhnf sIgnnI Is rocordod fo hnrd drIvo dIsk
sforngo, comµnrnbIo fo fho hnrd-dIsk sforngo In n
homo ÐV!. See iJ. nf 6n-?n. Tho usor cnn fhon vIow
fho rocordIng ovor fho Infornof vIn n comµnfIbIo
Infornof-connocfod dovIco. See iJ. nf 66n. Thoso
µrocossos occur onIy nf fho dIrocfIon of fho usor. See
!IµowskI ÐocI. ¶¶ l2, l4, 35.
Thoro Is no roIovnnf dIsfIncfIon bofwoon fho
¨Wnfch¨ modo nnd fho ¨!ocord¨ modo. See Iof. Aµµ.
6?n; !IµowskI ÐocI. ¶ 6. In oIfhor cnso, fho usor
cnusos n unIquo dIgIfnI rocordIng of fho soIocfod
confonf fo bo mndo from n sIgnnI fhnf Is rocoIvod by
nn IndIvIdunI nnfonnn nssIgnod soIoIy fo fhnf µnrfIcu-
Inr usor. See Iof. Aµµ. 6n-?n. Tho usor fhon µInys
bnck nnd vIows fhnf IndIvIdunI dIgIfnI rocordIng. See
HorowIfz !oµorf ¶ 64. A consumor usIng Aoroo`s
oquIµmonf, IIko nny ÐV!, doos nof, sfrIcfIy sµonkIng,
wnfch confonf ¨IIvo,¨ bocnuso n doIny (of nf Ionsf sIx
soconds nnd somofImos Iongor) occurs bofwoon fho
rocordIng nnd fho ovonfunI µInybnck. See Iof. Aµµ.
66n; !IµowskI ÐocI. ¶¶ ?, 5l; HorowIfz !oµorf ¶ 5?.
Tho fwo modos dIffor In onIy fwo wnys: (l) on corfnIn
buf nof nII consumor dovIcos, µInybnck bogIns nufo-
mnfIcnIIy whon n usor soIocfs ¨Wnfch¨ modo (rnfhor
fhnn roquIrIng fho usor nIso fo µross ¨IIny¨), nnd
(2) n dIgIfnI rocordIng mndo whIIo fho oquIµmonf Is
In ¨Wnfch¨ modo Is nof snvod nffor fho usor fInIshos


5
wnfchIng fhnf µrogrnm, unIoss fho usor soIocfs fho
¨!ocord¨ modo boforo fho µrogrnm onds. See Iof.
Aµµ. 5n, 6?n; !IµowskI ÐocI. ¶¶ 6 n.l, 48, 52, 54.
Irom fho bogInnIng fo fho ond of fhIs µrocoss, fho
dnfn sfronm rocoIvod by nn nnfonnn Is nvnIInbIo onIy
fo fho usor who funod fho nnfonnn by soIocfIng n
µrogrnm fo wnfch.
3
See Iof. Aµµ. 8n, 65n; HorowIfz
!oµorf ¶ 63 & IIg. ll; !IµowskI ÐocI. ¶¶ 5, 4l, 4?.
Tho dIgIfnI rocordIng mndo from fhnf IndIvIdunI dnfn
sfronm Is oxcIusIvoIy nssocInfod wIfh fhnf usor nnd
cnn bo µInyod bnck onIy by fhnf usor. See Iof. Aµµ.
8n; !IµowskI ÐocI. ¶¶ 5, 4l-43. Ivon If fwo usors
chooso fo vIow fho snmo foIovIsIon µrogrnm nf fho
snmo fImo ns fhoy offon wIII fhoy wIII novor shnro
nn nnfonnn, dnfn sfronm, or dIgIfnI rocordIng. See
!IµowskI ÐocI. ¶¶ 43, 56. Tho snmo wouId bo fruo If
fwo noIghbors on n sfroof woro usIng IndIvIdunI roof-
foµ nnfonnns nnd homo ÐV!s. As n rosuIf, onch
rocordIng mndo usIng Aoroo`s oquIµmonf Is unIquo
nof onIy In fho sonso fhnf If Is µorsonnI, buf nIso
bocnuso, owIng fo oIocfrIcnI Inforforonco, fochnIcnI
gIIfchos, nnd occnsIonnI oquIµmonf fnIIuro, no fwo
coµIos nro IdonfIcnI. See Iof. Aµµ. ?ln; !IµowskI
ÐocI. ¶ 43.
IE ?.% >'2&*'7& -(3*& >%7'2'("
IofIfIonors nro brondcnsf nofworks nnd brondcnsf
IIconsoos fhnf µroduco nnd oxhIbIf µrogrnmmIng for
dIssomInnfIon fhrough ovor-fho-nIr sIgnnIs. See, e.g.,
HorowIfz !oµorf ¶¶ 30-3l. IofIfIonors do so by ox-
µIoIfIng fho brondcnsf sµocfrum, n µubIIc nssof worfh
bIIIIons of doIInrs, whIch fhoy nro nIIowod fo uso for
froo onco fhoy hnvo obfnInod n IIconso from fho Iod-

3
Whon nof In uso, fho nnfonnns nro nof funod fo n brondcnsf
sIgnnI. See HorowIfz !oµorf ¶ 58; !IµowskI ÐocI. ¶¶ l4, 36.


6
ornI CommunIcnfIons CommIssIon. See CommunIcn-
fIons Acf of l934, ch. 652, § 30l, 48 Sfnf. l064, l08l
(µrovIdIng for ¨uso¨ of rndIownvo chnnnoIs, ¨buf nof
fho ownorshIµ fhoroof ¨); iJ. § 309(b)(l), 48 Sfnf. l085
(µrovIdIng for IIconso form fhnf confors sµocIfIod
rIghfs fo uso dosIgnnfod sµocfrum). TrndIfIonnIIy,
nnd sfIII fodny, brondcnsfors mnko µrogrnmmIng
nvnIInbIo ovor fho nIrwnvos for ¨froo¨ by soIIIng
brondcnsf fImo fo ndvorfIsors. See Telepronp/er
Corp. t. ColunIio BrooJ. S,e., 1nc., 4l5 !.S. 394,
4ll (l9?4); eee !ocnI AffIIInfos` Ir. 20-2l (nofIng fhnf
88° of brondcnsfors` rovonuos como from ndvorfIs-
Ing).
+E IofIfIonors movod for n µroIImInnry InjuncfIon
bnsod on Aoroo`s nIIogod dIrocf InfrIngomonf of fhoIr
µubIIc-µorformnnco rIghf. Tho dIsfrIcf courf donIod
fhnf mofIon, roIyIng on fho foxf of fho sfnfufo nnd fho
Socond CIrcuIf`s onrIIor docIsIon In Cor/oon Ae/uor/
LP, LLLP t. CSC HolJinge, 1nc., 536 I.3d l2l (2d
CIr. 2008) (¨CoIletieion¨), cer/. JenieJ, 55? !.S. 946
(2009). A doscrIµfIon of CoIletieion hoIµs fo µInco
µofIfIonors` nrgumonfs Info µroµor confoxf.
CoIletieion concornod n cnbIo µrovIdor fhnf offorod
Ifs subscrIbors fho nbIIIfy fo uso n ÐV! fhnf wns
Iocnfod nf CnbIovIsIon`s fncIIIfy, rnfhor fhnn nf fho
usor`s homo, n fochnoIogy known ns n ¨romofo sforngo
ÐV!¨ or !S-ÐV!. 1J. nf l24-25. CnbIovIsIon`s sys-
fom, In rosµonso fo n usor`s roquosf, cronfod n coµy
of µrogrnmmIng for fhnf cusfomor on n CnbIovIsIon
romofo hnrd drIvo. 1J. nf l24. As wIfh Aoroo`s sys-
fom, onIy fho cusfomor who roquosfod fhnf CnbIo-
vIsIon`s !S-ÐV! rocord fho µrogrnm couId nccoss fho
coµy fhnf ho cronfod. 1J. nf l35.
CoµyrIghf hoIdors (mnny of fhom µofIfIonors horo)
suod, nrguIng fhnf CnbIovIsIon`s !S-ÐV! sysfom


?
InfrIngod fhoIr coµyrIghfs ¨by ongngIng In unnufhor-
Izod µubIIc µorformnncos of fhoIr works fhrough fho
µInybnck of !S-ÐV! coµIos.¨ 1J. nf l34. Affor fho
dIsfrIcf courf (ChIn, J.) grnnfod fho InjuncfIon, fho
Socond CIrcuIf rovorsod. Tho courf fIrsf doformInod
fhnf consumors, nof CnbIovIsIon, cronfod fho coµIos,
nofwIfhsfnndIng fhnf CnbIovIsIon hnd dosIgnod fho
!S-ÐV! sysfom, ownod fho oquIµmonf, nnd mnIn-
fnInod fho oquIµmonf nf Ifs own hond-ond fncIIIfIos.
Tho courf fhon consfruod fho TrnnsmIf CInuso,
whIch µrovIdos In µorfInonf µnrf fhnf ¨'|f]o µorform
. . . ¨µubIIcIy¨ monns . . . fo frnnsmIf . . . n µorfor-
mnnco . . . of fho work . . . fo fho µubIIc,` ¨ fo monn
fhnf ¨n frnnsmIssIon of n µorformnnco Is IfsoIf n µor-
formnnco.¨ 1J. (quofIng l? !.S.C. § l0l). In dofor-
mInIng whofhor n µorformnnco Is ¨fo fho µubIIc¨
undor fho TrnnsmIf CInuso, fho courf ronsonod,
fho sfnfufo ¨dIrocfs us fo oxnmIno who µrocIsoIy
Is 'cnµnbIo of rocoIvIng` n µnrfIcuInr frnnsmIssIon.¨
1J. nf l35. Iocnuso ¨onch !S-ÐV! frnnsmIssIon Is
mndo usIng n sIngIo unIquo coµy of n work, mndo by
nn IndIvIdunI subscrIbor, ono fhnf cnn bo docodod
oxcIusIvoIy by fhnf subscrIbor`s cnbIo box, onIy ono
subscrIbor Is cnµnbIo of rocoIvIng nny gIvon !S-ÐV!
frnnsmIssIon.¨ 1J.
Tho CoIletieion courf rojocfod fhon-ÐIsfrIcf Judgo
ChIn`s nnnIysIs, whIch consIdorod nof ¨fho µofonfInI
nudIonco of n µnrfIcuInr frnnsmIssIon, buf fho µofon-
fInI nudIonco of fho undorIyIng work (I.o., 'fho µro-
grnm`) whoso confonf Is boIng frnnsmIffod.¨ 1J. Tho
Socond CIrcuIf doomod fhnf rondIng fo bo Incon-
sIsfonf wIfh fho sfnfufory Inngungo, whIch ¨sµonks of
µooµIo cnµnbIo of rocoIvIng n µnrfIcuInr 'frnnsmIs-
sIon` or 'µorformnnco,` nnd nof of fho µofonfInI nudI-
onco of n µnrfIcuInr 'work.` ¨ 1J.


8
JE Tho dIsfrIcf courf boIow found fhnf ¨Aoroo`s
sorvIco fnIIs wIfhIn fho coro of whnf CoIletieion hoId
InwfuI,¨ bnsod on fhroo fncfs. Iof. Aµµ. 84n. ¨IIrsf,
Aoroo`s sysfom cronfos n unIquo coµy of onch foIovI-
sIon µrogrnm for onch subscrIbor who roquosfs fo
wnfch fhnf µrogrnm, snvod fo n unIquo dIrocfory
on Aoroo`s hnrd dIsks nssIgnod fo fhnf usor.¨ 1J. nf
83n. ¨Socond, onch frnnsmIssIon fhnf Aoroo`s sysfom
uIfImnfoIy mnkos fo n subscrIbor Is from fhnf unIquo
coµy.¨ 1J. ¨ThIrd, fho frnnsmIssIon of fho unIquo
coµy Is mndo eolel, fo fho subscrIbor who roquosfod
If; no ofhor subscrIbor Is cnµnbIo of nccossIng fhnf
coµy nnd no frnnsmIssIons nro mndo from fhnf coµy
oxcoµf fo fho subscrIbor who roquosfod If.¨ 1J. nf
83n-84n (foofnofo omIffod).
Tho dIsfrIcf courf rojocfod µofIfIonors` nrgumonf
fhnf If shouId nof consIdor whofhor n µnrfIcuInr µor-
formnnco InIfInfod by fho consumor`s dIrocfIon usIng
Aoroo`s sysfom Is ¨fo fho µubIIc¨ buf shouId Insfond
¨Iook bnck . . . fo fho µoInf nf whIch Aoroo`s nnfonnns
obfnIn fho brondcnsf confonf fo concIudo fhnf Aoroo
ongngos In n µubIIc µorformnnco.¨ 1J. nf 85n-86n.
Tho dIsfrIcf courf nofod fhnf fho courf of nµµonIs
In CoIletieion hnd rojocfod fho snmo nrgumonf,
concIudIng fhnf fhoro wns n ¨dIvIdIng IIno¨ bofwoon
fho ¨frnnsmIssIons mndo by fho confonf µrovIdors¨
nnd fho frnnsmIssIons mndo by CnbIovIsIon`s sysfom.
1J. nf 86n. Tho dIsfrIcf courf furfhor found fhnf, ¨In
IIghf of |Ifs] fncfunI doformInnfIon fhnf onch nnfonnn
funcfIons IndoµondonfIy, In nf Ionsf ono rosµocf fho
Aoroo sysfom Is n sfrongor cnso fhnn CoIletieion . . .
bocnuso . . . onch coµy mndo by Aoroo`s sysfom Is cro-
nfod from n eeporo/e sfronm of dnfn.¨ 1J.



9
KE ?.% -(3*& () 455%+62 >%7'2'("
Tho Socond CIrcuIf nffIrmod.
+E Tho courf found unµorsunsIvo µofIfIonors` cInIm
fhnf fho frnnsmIssIons mndo usIng Aoroo`s sysfom
shouId bo oqunfod wIfh ¨fho orIgInnI brondcnsf mndo
by fho ovor-fho-nIr nofwork rnfhor fhnn fronfIng
Aoroo`s frnnsmIssIons ns Indoµondonf µorformnncos,¨
bocnuso fhnf nrgumonf ¨Is nofhIng moro fhnn fho
CoIletieion µInInfIffs` InforµrofnfIon of fho TrnnsmIf
CInuso.¨ Iof. Aµµ. 25n. As for µofIfIonors` nrgumonf
fhnf ¨nII of Aoroo`s dIscrofo frnnsmIssIons |shouId] 'bo
nggrognfod nnd vIowod coIIocfIvoIy ns consfIfufIng n
µubIIc µorformnnco,` ¨ fho courf found fhnf nrgumonf
forocIosod by CoIletieion`s hoIdIng fhnf ¨fho roIovnnf
InquIry undor fho TrnnsmIf CInuso Is fho µofonfInI
nudIonco of n µnrfIcuInr frnnsmIssIon, nof fho µofon-
fInI nudIonco for fhnf undorIyIng work or fho µnrfIcu-
Inr µorformnnco of fhnf work boIng frnnsmIffod.¨ 1J.
nf 25n-26n. ¨|W]o cnnnof nccoµf |µofIfIonors`] nrgu-
monfs fhnf Aoroo`s frnnsmIssIons fo n sIngIo Aoroo
usor, gonornfod from n unIquo coµy cronfod nf fho
usor`s roquosf nnd onIy nccossIbIo fo fhnf usor,
shouId bo nggrognfod for fho µurµosos of doformInIng
whofhor fhoy nro µubIIc µorformnncos.¨ 1J. nf 26n-
2?n.
Tho courf IIkowIso rojocfod µofIfIonors` nrgumonf
fhnf fho rosuIf In CoIletieion doµondod on nnnIogIz-
Ing CnbIovIsIon`s !S-ÐV! fo n convonfIonnI ÐV!,
nofIng fhnf fho courf hnd nIrondy ¨foIIowod CoIle-
tieion`s InforµrofnfIon of fho TrnnsmIf CInuso¨ In
n dIfforonf confoxf (Infornof musIc downIonds). 1J.
nf 2?n (cIfIng Ini/eJ S/o/ee t. Anericon Soc`, of
Conpoeere, Au/lore & PuIlielere, 62? I.3d 64, ?3-?6
(2d CIr. 20l0)). ¨And ovon If such nnnIogIos woro
µrobnfIvo, Aoroo`s sysfom couId nccurnfoIy bo nnnIo-


l0
gIzod fo nn uµsfronm combInnfIon of n sfnndnrd TV
nnfonnn, n ÐV!, nnd n SIIngbox.¨ 1J. nf 2?n n.l3.
4

In nddIfIon, fho courf found fhnf µofIfIonors`
nrgumonf fnIIod ¨fo nccounf for Aoroo`s usor-sµocIfIc
nnfonnns. . . . |I]von If wo woro fo dIsrognrd Aoroo`s
coµIos, If wouId sfIII bo fruo fhnf fho µofonfInI nudI-
onco of onch of Aoroo`s frnnsmIssIons wns fho sIngIo
usor fo whom onch nnfonnn wns nssIgnod.¨ 1J. nf
30n-3ln. ¨If Is boyond dIsµufo fhnf fho frnnsmIssIon
of n brondcnsf TV µrogrnm rocoIvod by nn IndIvIdu-
nI`s rooffoµ nnfonnn fo fho TV In hIs IIvIng room Is
µrIvnfo, bocnuso onIy fhnf IndIvIdunI cnn rocoIvo fho
frnnsmIssIon from fhnf nnfonnn . . . . |IofIfIonors]
hnvo µrosonfod no ronson why fho rosuIf shouId bo
nny dIfforonf whon fhnf rooffoµ nnfonnn Is ronfod
from Aoroo nnd Ifs sIgnnIs frnnsmIffod ovor fho In-
fornof.¨ 1J. nf 3ln.
Tho courf furfhor dIsngrood wIfh µofIfIonors` cInIm
fhnf ¨hoIdIng fhnf Aoroo`s frnnsmIssIons nro nof
µubIIc µorformnncos oxnIfs form ovor subsfnnco,¨
bocnuso fho Socond CIrcuIf nIrondy hnd rojocfod
fhnf confonfIon In CoIletieion. 1J. nf 32n. And fho
courf nofod fhnf Aoroo Is nof ¨nIono In dosIgnIng Ifs
sysfom nround CoIletieion, ns mnny cIoud comµufIng
sorvIcos . . . nµµonr fo hnvo dono fho snmo.¨ 1J. nf
32n-33n.
Tho courf nIso found mIsµIncod µofIfIonors` roIInnco
on fho IogIsInfIvo hIsfory of fho CoµyrIghf Acf of

4
¨A SIIngbox Is n |modIn-shIffIng] dovIco fhnf connocfs fho
usor`s cnbIo or snfoIIIfo sof-foµ box or ÐV! fo fho Infornof,
nIIowIng fho usor fo wnfch IIvo or rocordod µrogrnms on nn
Infornof-connocfod mobIIo dovIco, such ns n Inµfoµ or fnbIof.¨
Iof. Aµµ. 3n n.2. AIfornnfIvoIy, n SIIngbox mny bo dIrocfIy con-
nocfod fo n rooffoµ nnfonnn fo nIIow sfronmIng of ovor-fho-nIr
sIgnnIs fo n mobIIo dovIco. See HorowIfz !oµorf ¶ ??.


ll
l9?6. In µnrfIcuInr, If found fhnf µofIfIonors Ignorod
Congross`s doformInnfIon fo oxomµf prito/e µorfor-
mnncos, IncIudIng µorformnncos nccomµIIshod fhrough
frnnsmIssIons, from coµyrIghf IInbIIIfy. ¨In fho foch-
noIogIcnI onvIronmonf of l9?6, dIsfInguIshIng bo-
fwoon µubIIc nnd µrIvnfo frnnsmIssIons wns sImµIor
fhnn fodny.¨ 1J. nf 34n. Tho courf ronsonod fhnf fho
¨frnnsmIssIons¨ nf Issuo In fhIs cnso ¨cIosoIy rosom-
bIo fho µrIvnfo frnnsmIssIons¨ from dovIcos such ns
!S-ÐV!s nnd SIIngboxos. 1J. AccordIngIy, fho courf
concIudod fhnf, bocnuso Aoroo`s sysfom oµornfod
dIfforonfIy from n cnbIo foIovIsIon sysfom, ¨wo cnnnof
dIsrognrd fho confrnry concorns oxµrossod by Congross
In drnffIng fho l9?6 CoµyrIghf Acf. And wo corfnInIy
cnnnof dIsrognrd fho oxµross Inngungo Congross
soIocfod In doIng so.¨ 1J. nf 35n.
JE Judgo ChIn, whoso docIsIon ns n dIsfrIcf courf
judgo wns rovorsod In CoIletieion, dIssonfod. Ho
nssorfod fhnf Aoroo`s ¨'fochnoIogy µInfform` Is . . . n
shnm,¨ n ¨!ubo CoIdborg-IIko confrIvnnco, ovor-
ongInoorod In nn nffomµf fo nvoId fho ronch of fho
CoµyrIghf Acf.¨ Iof. Aµµ. 40n. WIfhouf nddrossIng
fho dIsfrIcf courf`s fncfunI fIndIngs fhnf doscrIbo fho
ncfunI oµornfIon of Aoroo`s sysfom, Judgo ChIn In-
sIsfod fhnf ¨Aoroo sfIII Is frnnsmIffIng . . . µrogrnm-
mIng 'fo fho µubIIc.` ¨ 1J. nf 44n.
IofIfIonors` µofIfIons for rohonrIng on bnnc woro
donIod, wIfh Judgo ChIn, joInod by Judgo WosIoy,
dIssonfIng. 1J. nf l2?n-l28n.



l2
49L/B;=?
:E ?C; >;-:1:!= 8;A!, :1 -!99;-?
Tho Socond CIrcuIf corrocfIy ruIod fhnf Aoroo`s
sysfom doos nof InfrIngo µofIfIonors` coµyrIghfs
undor fho TrnnsmIf CInuso. As bofh courfs boIow
corrocfIy found, n consumor usIng Aoroo`s sysfom
cnµfuros n sIgnnI fhrough nn nnfonnn nvnIInbIo onIy
fo n µnrfIcuInr usor nnd onnbIos fhnf usor fo mnko nn
IndIvIdunI coµy from n unIquo dnfn sfronm fhnf cnn
bo vIowod soIoIy by fhnf usor nf fho usor`s dIrocfIon.
Thnf fochnoIogy doos nof cnuso InfrIngomonf bocnuso
Aoroo doos nof ongngo In nny µorformnnco ¨fo fho
µubIIc.¨
!Iko fho dIssonf boIow, µofIfIonors nrguo fhnf fhIs
Courf shouId fronf Aoroo`s sysfom ns nnnIogous fo n
cnbIo sysfom nnd Imµoso IInbIIIfy bocnuso cnbIo sys-
foms ongngo In µubIIc µorformnnco. Iuf Aoroo Is nof
nnd doos nof oµornfo IIko n cnbIo sysfom; cnbIo sys-
foms rocoIvo brondcnsf confonf In n sIngIo food nnd
confInuousIy rofrnnsmIf fhnf snmo confonf fo onch of
fhoIr cusfomors, whofhor fho cusfomor hns funod fo
fhnf sIgnnI or nof. Tho Inngungo of fho CoµyrIghf
Acf, Ifs hIsfory, nnd fho undIsµufod fncfunI fIndIngs
nbouf how Aoroo`s fochnoIogy ncfunIIy oµornfos µro-
cIudo fronfIng Aoroo ns If If woro somofhIng If Is nof.
4E 4%*%(F2 1H2&%M >(%2 =(& ?*+"2M'& 4 $%*N
)(*M+"7% O?( ?.% $3J6'7P
DE Tho CoµyrIghf Acf grnnfs fo cronfors fho
oxcIusIvo rIghf, ¨In fho cnso of IIfornry, musIcnI,
drnmnfIc, nnd choroogrnµhIc works, µnnfomImos,
nnd mofIon µIcfuros nnd ofhor nudIovIsunI works, fo
µorform fho coµyrIghfod work µubIIcIy.¨ l? !.S.C.
§ l06(4). Tho Acf furfhor sµocIfIos:
To µorform or dIsµIny n work ¨µubIIcIy¨ monns


l3
(l) fo µorform or dIsµIny If nf n µInco oµon fo
fho µubIIc or nf nny µInco whoro n subsfnnfInI
numbor of µorsons oufsIdo of n normnI cIrcIo of n
fnmIIy nnd Ifs socInI ncqunInfnncos Is gnfhorod;
or
(2) fo frnnsmIf or ofhorwIso communIcnfo n
µorformnnco or dIsµIny of fho work fo n µInco
sµocIfIod by cInuso (l) or fo fho µubIIc, by monns
of nny dovIco or µrocoss, whofhor fho mombors of
fho µubIIc cnµnbIo of rocoIvIng fho µorformnnco
or dIsµIny rocoIvo If In fho snmo µInco or In soµn-
rnfo µIncos nnd nf fho snmo fImo or nf dIfforonf
fImos.
1J. § l0l.
Tho sfnfufo`s foxf fhus IndIcnfos fhnf ¨fo frnnsmIf
. . . n µorformnnco . . . of |n] work¨ Is IfsoIf fo ¨µor-
form¨ fho work. See 2 MoIvIIIo I. ÞImmor & ÐnvId
ÞImmor, Ainner on Cop,rigl/ § 8.l4|I]|l], nf 8-l90
(rov. od. 20l3) (¨|T]ho ncf of brondcnsfIng n work Is
IfsoIf n µorformnnco of fhnf work.¨). Af fho snmo
fImo, nof ovory frnnsmIssIon Is n puIlic µorformnnco:
fhnf doformInnfIon furns on whofhor fho frnnsmIs-
sIon Is mndo ¨fo fho µubIIc.¨
Tho Socond CIrcuIf corrocfIy ronsonod fhnf,
undor fho forms of fho sfnfufory dofInIfIon, fho
¨µorformnnco¨ fhnf musf bo mndo ¨fo fho µubIIc¨ fo
ImµIIcnfo fho oxcIusIvo µubIIc-µorformnnco rIghf Is
fho frnnsmIssIon IfsoIf.
5
!ndor fho sfnfufo, ¨|f]o
'frnnsmIf` n µorformnnco . . . Is fo communIcnfo If by
nny dovIco or µrocoss whoroby Imngos or sounds nro
rocoIvod boyond fho µInco from whIch fhoy nro sonf.¨

5
See 2 Ainner on Cop,rigl/ § 8.l4|C]|2], nf 8-l92.6 (¨|I]f o
/ronenieeion Is onIy nvnIInbIo fo ono µorson, fhon If cIonrIy fnIIs
fo qunIIfy ns 'µubIIc.` ¨) (omµhnsIs nddod).


l4
l? !.S.C. § l0l. SocfIon l0l sµocIfIos fhnf n µorfor-
mnnco Is ¨fo fho µubIIc¨ so Iong ns ¨mombors of fho
µubIIc |nro] cnµnbIo of rocoIvIng fho µorformnnco.¨
Thnf µrovIsIon wouId mnko no sonso If fho µorfor-
mnnco In quosfIon woro somo ofhor, undorIyIng
µorformnnco rnfhor fhnn fho frnnsmIssIon IfsoIf. In
fhnf cnso, IInbIIIfy couId bo Imµosod for µuroIy µrIvnfo
frnnsmIssIons sImµIy bocnuso muIfIµIo consumors
onch wnnfod fhoIr own µorsonnI coµIos of fho snmo
work.
!ndor fho corrocf consfrucfIon of fho sfnfufo, fho
undIsµufod fncfs concornIng fho dosIgn nnd oµornfIon
of Aoroo`s sysfom forocIoso µofIfIonors` cInIms. A
unIquo coµy of n µorformnnco of n work, cronfod
nf fho dIrocfIon of fho usor, Is frnnsmIffod onIy by
nnd fo fhnf usor. Thnf frnnsmIssIon fho roIovnnf
µorformnnco cnn bo rocoIvod by no ono oIso.
IE Thoro Is no InconsIsfoncy bofwoon fhIs con-
sfrucfIon of fho TrnnsmIf CInuso nnd fho sfnfufory
cInrIfIcnfIon fhnf n frnnsmIssIon mny bo fo fho µubIIc
¨whofhor fho mombors of fho µubIIc cnµnbIo of rocoIv-
Ing fho µorformnnco or dIsµIny rocoIvo If In fho snmo
µInco or In soµnrnfo µIncos nnd nf fho snmo fImo or nf
dIfforonf fImos.¨ l? !.S.C. § l0l. Tho CoIletieion
courf nofod fhnf fhIs Inngungo hns boon nµµIIod In
cIrcumsfnncos whoro n dofondnnf hns frnnsmIffod n
sIngIo coµy (of, for oxnmµIo, n movIo) fo muIfIµIo
vIowors nf dIfforonf fImos. See CoIletieion, 536 I.3d
nf l38-39 (cIfIng ColunIio Pic/uree 1nJue., 1nc. t.
IeJJ Horne, 1nc., ?49 I.2d l54, l56-5? (3d CIr. l984)).
Iy confrnsf, fho Socond CIrcuIf`s consfrucfIon of fho
sfnfufo ¨nccord|s] sIgnIfIcnnco fo fho oxIsfonco nnd
uso of dIsfIncf coµIos In |Ifs] frnnsmIf cInuso nnnIy-
sIs.¨ CoIletieion, 536 I.3d nf l38.


l5
IofIfIonors nrguo fhnf, nIfhough n sIngIo frnnsmIs-
sIon mny bo rocoIvod nf soµnrnfo µIncos, If cnnnof bo
rocoIvod nf ¨dIfforonf fImos¨; fhoy furfhor confond
fhnf fho Socond CIrcuIf`s consfrucfIon of fho sfnfufo
fnIIs fo gIvo Indoµondonf sIgnIfIcnnco fo fho ¨dIfforonf
fImos¨ Inngungo In fho dofInIfIon. Iuf µofIfIonors`
nrgumonf Ignoros fho dIsfIncfIon fhnf fho sfnfufo drnws
bofwoon boIng ¨cnµnbIo of rocoIvIng¨ n frnnsmIssIon
nnd ncfunIIy ¨rocoIv|Ing]¨ If. Cf. Iloto Wor/e, 1nc. t.
Gun/er, 689 I.3d ?54, ?60 (?fh CIr. 20l2) (Iosnor, J.)
(suggosfIng fhnf n ¨µubIIc µorformnnco occurs whon
|n] vIdoo Is uµIondod |fo n µubIIc wobsIfo] nnd fho
µubIIc bocomos cnµnbIo of vIowIng If,¨ ovon If mom-
bors of fho µubIIc ncfunIIy vIow fho vIdoo nf dIfforonf
fImos). Tho ¨dIfforonf fImos¨ Inngungo In fho sfnfufo
sfIII hns n roIo fo µIny.
KE ÞofhIng In fho IogIsInfIvo hIsfory of fho Coµy-
rIghf Acf suµµorfs IImIfIng Aoroo`s usors` rIghf fo
coµy nnd µIny bnck µofIfIonors` ovor-fho-nIr µorfor-
mnncos In fhoIr homos usIng romofoIy Iocnfod nnfonnn
nnd ÐV! oquIµmonf. SocfIon l06(4) of fho CoµyrIghf
Acf sfrIkos n bnInnco by rosorvIng fo cronfors fho
oxcIusIvo rIghf fo µorform fhoIr works µubIIcIy whIIo
rosorvIng fo nII fho rIghf fo µorform works µrIvnfoIy.
Tho dofInIfIons In SocfIon l0l IIkowIso µrovIdo fhnf
nof nII frnnsmIssIons nro µubIIc µorformnncos whon
onIy ono mombor of fho µubIIc Is cnµnbIo of rocoIvIng
n µnrfIcuInr frnnsmIssIon, fho frnnsmIssIon Is µrIvnfo,
nnd nof rosfrIcfod undor fho CoµyrIghf Acf.
IofIfIonors` nssorfIon (nf 5-6) fhnf fho roIovnnf
µrovIsIons of fho CoµyrIghf Acf woro µnssod In µnrf
fo nddross docIsIons of fhIs Courf In Telepronp/er
Corp. t. ColunIio BrooJcoe/ing S,e/en, 1nc., 4l5
!.S. 394 (l9?4), nnd Ior/nigl/l, Corp. t. Ini/eJ
Ar/ie/e Teletieion, 1nc., 392 !.S. 390, 400-0l (l968),


l6
doos nof suµµorf fhoIr cInIm fhnf Aoroo InfrIngos
fho oxcIusIvo µubIIc-µorformnnco rIghf. In bofh Tele-
pronp/er nnd Ior/nigl/l,, fho sysfoms nf Issuo usod
n common nnfonnn fo cnµfuro ovor-fho-nIr brondcnsfs
nnd fhon frnnsmIffod fhom fo nII subscrIbors on fho
sysfom (whofhor or nof fho subscrIbors woro vIowIng
fho brondcnsfs). Thnf Is sImµIy nof fho wny fhnf
Aoroo`s sysfom oµornfos: n usor Is nssIgnod nn
IndIvIdunI nnfonnn; no sIgnnI gofs frnnsmIffod nf
nII unIoss fho usor InIfInfos fhnf frnnsmIssIon; nnd
onch frnnsmIssIon Is dIrocfod soIoIy by nnd fo fhnf
usor. IofIfIonors quofo Inngungo from n Houso
!oµorf roforrIng fo fho JudIcInry CommIffoo`s ¨boIIo|f ]
fhnf cnbIo sysfoms nro commorcInI onforµrIsos whoso
bnsIc rofrnnsmIssIon oµornfIons nro bnsod on fho
cnrrIngo of coµyrIghfod µrogrnm mnforInI.¨ H.!. !oµ.
Þo. 94-l4?6, nf 89 (l9?6), reprin/eJ in l9?6
!.S.C.C.A.Þ. 5659, 5?04. Iuf fho !oµorf Is jusf ns
cIonr fhnf, ¨|n]Ifhough nny ncf by whIch |nn] InIfInI
µorformnnco or dIsµIny Is frnnsmIffod, roµonfod,
or mndo fo rocur wouId IfsoIf bo n 'µorformnnco` or
'dIsµIny` . . . , If wouId nof bo ncfIonnbIo ns nn InfrIngo-
monf unIoss If woro dono 'µubIIcIy,` ns dofInod In
socfIon l0l.¨ 1J. nf 63, l9?6 !.S.C.C.A.Þ. 56??.
Congross mny woII hnvo nnfIcIµnfod ndvnncos In
vIdoo dIsfrIbufIon fo fho µubIIc; buf If oqunIIy wouId
hnvo nnfIcIµnfod ndvnncos In µrIvnfo rocoµfIon of
brondcnsf foIovIsIon.
6
Aoroo roµrosonfs fho Inffor,
nof fho formor.

6
Aoroo`s fochnoIogy Is nof, ns µofIfIonors cInIm, InoffIcIonf;
fo fho confrnry, If µrovIdos n hIghIy offIcIonf nIfornnfIvo for
consumors who wIsh fo vIow ovor-fho-nIr brondcnsfs wIfhouf fho
cosf nnd InconvonIonco of µurchnsIng nnd InsfnIIIng foIovIsIon
sofs, dIgIfnI nnfonnns, nnd ÐV!s In fhoIr homos. See KnnojIn
ÐocI. ¶ l0.


l?
8E 4%*%(F2 /2%*2 Q =(& 4%*%( Q O?*+"2M'&P
-("&%"& /2'"G 4%*%(F2 1H2&%M
Tho docIsIon boIow Is corrocf for fho nddIfIonnI
ronson fhnf fho ueer Is In confroI of fho romofo
IndIvIdunI nnfonnn nnd ÐV! fhnf onnbIos fho usor
fo rocoIvo nnd coµy µrogrnmmIng from ovor-fho-nIr
brondcnsfs. Tho Aoroo sysfom rosµonds nufomnfIcnIIy
fo usor roquosfs. AccordIngIy, dIrocf IInbIIIfy for
InfrIngomonf cnnnof bo Imµosod ngnInsf Aoroo.
AIfhough Aoroo boIIovos no ncfor fhnf usos Ifs sysfom
dIrocfIy InfrIngos, undor Aoroo`s sysfom onIy fho
Aoroo ueer who omµIoys Aoroo`s sysfom fo frnnsmIf
brondcnsf µrogrnmmIng fo horsoIf couId µossIbIy
InfrIngo dIrocfIy µofIfIonors` coµyrIghfs.
DE Tho Aoroo sysfom Is dosIgnod nnd ongInoorod
fo mIrror fho oµornfIon of n frndIfIonnI, In-homo
nnfonnn nnd ÐV!, nnd fhus fo nIIow fho usor fo con-
froI ovory nsµocf of fho frnnsmIssIon of n brondcnsf
µrogrnm. Whon nof In uso, fho nnfonnns housod on
Aoroo`s µromIsos nro funod fo n froquoncy wIfhouf
nny brondcnsf sIgnnIs nnd nro fhoroforo IdIo. See
HorowIfz !oµorf ¶ 58; !IµowskI ÐocI. ¶¶ l4, 36.
Whon n usor Iogs on fo fho sysfom nnd soIocfs n
µrogrnm, nn IndIvIdunI nnfonnn Is nufomnfIcnIIy
nssIgnod fo fhnf usor; fhnf nnfonnn fhon nufomnfI-
cnIIy rosµonds fo fho usor`s commnnds by oIocfronI-
cnIIy funIng fo fho froquoncy of fho brondcnsf chnn-
noI soIocfod by fho usor. See HorowIfz !oµorf ¶ 64.
Tho µrogrnm Is fhon nufomnfIcnIIy rocordod nnd fho
usor doformInos whon nnd how fho rocordIng wIII bo
frnnsmIffod fo fho usor`s dovIco whofhor nf fho
fImo If Is boIng rocordod or nf n Infor fImo. See
!IµowskI ÐocI. ¶¶ l2, l4, 50. And fho usor IIkowIso
hns fho nbIIIfy fo confroI fho µInybnck by µnusIng,
rowIndIng, nnd fnsf-forwnrdIng fho µrogrnm, ovon If


l8
Infor µorfIons of fho µrogrnm nro sfIII boIng rocordod.
See HorowIfz !oµorf ¶ 56.
Thoso undIsµufod fncfs mnko cIonr fhnf, If nny
InfrIngomonf Is occurrIng nf nII, If dorIvos from
fho usor`s commnnds fo cnuso Aoroo`s oquIµmonf fo
oµornfo In n µnrfIcuInr wny. In fhnf cIrcumsfnnco,
onIy fho usor, nof Aoroo, couId bo dIrocfIy IInbIo for
InfrIngomonf.
IE Tho voIIfIonnI-conducf fosf nµµroµrInfoIy
rofIocfs fho ncfunI oµornfIon of Aoroo`s sysfom, whIch
mnkos oquIµmonf Iocnfod on Aoroo`s µromIsos nvnII-
nbIo for cusfomors` uso. If n Inndownor offorod sµnco
on n hIIIfoµ whoro IndIvIdunIs couId µInco n convon-
fIonnI nnfonnn, no ono wouId nrguo fhnf fho Innd-
ownor wns ongngod In n µubIIc µorformnnco, ovon If
hundrods of IndIvIdunIs µIncod IndIvIdunI nnfonnns
fhoro nnd wnfchod fho snmo WorId SorIos gnmo.
Tho ownor of n coµIor nvnIInbIo for µubIIc uso Is nof
IInbIo for dIrocf InfrIngomonf whon n cusfomor usos
fho coµIor fo roµroduco n coµy of n µoµuInr book, ovon
fhough fho ownor mnInfnIns fho coµIor, µrovIdos
oIocfrIc µowor for Ifs oµornfIon nnd InsfrucfIons
on fho coµIor`s uso, nnd chnrgos n µor-µngo foo for
mnkIng fho coµIos.
::E ?C:1 -41; $9!R:>;1 4= 4$$9!$9:N
4?; R;C:-A; <!9 9;1!AR:=L ?C;
:B$!9?4=? @/;1?:!= !< <;>;94A
A4, $9;1;=?;>
4E Tho docIsIon boIow Is corrocf, nnd no courf of
nµµonIs hns ruIod fo fho confrnry. Ior four ronsons,
howovor, Aoroo novorfhoIoss boIIovos fhnf fho Courf
shouId grnnf fho µofIfIon fo rosoIvo fho Imµorfnnf
Issuo of fodornI Inw nf Issuo In fhIs cnso.
Iire/, µofIfIonors hnvo shown ovory InfonfIon of
µursuIng IIfIgnfIon In ovory cIrcuIf In fho nnfIon In


l9
nn offorf fo Imµodo consumors` nccoss fo romofo
nnfonnns nnd ÐV!s vIn Aoroo`s fochnoIogy.
?
Tho
nood fo IIfIgnfo muIfIµIo cnsos hns nof onIy Imµosod n
dIrocf fInnncInI burdon on Aoroo buf nIso cronfod un-
corfnInfy fhnf undormInos Aoroo`s offorfs fo oxµnnd
Ifs foofµrInf nnd furfhor dovoIoµ Ifs busInoss. Tho
rIsk of µrofrncfod nnd unnocossnry IIfIgnfIon wnr-
rnnfs fhIs Courf`s rosoIvIng fho IognIIfy of Aoroo`s
sysfom nf fho onrIIosf µrncfIcnbIo fImo.
SeconJ, ns fho Iond cnso In fho sorIos of InwsuIfs
fIIod by µofIfIonors nnd fhoIr suµµorfors ngnInsf
Aoroo, fhIs cnso hns n woII-dovoIoµod fncfunI rocord,
wIfh oxµorf roµorfs nnd docInrnfIons oxµInInIng dIffI-
cuIf fochnIcnI concoµfs In cIonr forms. Tho dIsfrIcf
courf`s dofnIIod fIndIngs of fncf woro nof chnIIongod
boforo fho courf of nµµonIs nnd fhoroforo shouId nof
bo subjocf fo dIsµufo boforo fhIs Courf. See Groter
Ton/ & Mfg. Co. t. LinJe Air ProJe. Co., 336 !.S.
2?l, 2?5 (l949) (¨A courf of Inw, such ns fhIs Courf
Is, . . . cnnnof undorfnko fo rovIow concurronf fInd-
Ings of fncf by fwo courfs boIow In fho nbsonco of
n vory obvIous nnd oxcoµfIonnI showIng of orror.¨).
Thnf fncfunI rocord wIII fncIIIfnfo fhIs Courf`s consId-
ornfIon of fho coµyrIghf Issuos.

?
IofIfIonors cInIm fhnf fhoy hnvo fnkon fhIs nggrossIvo
nµµronch bocnuso Aoroo`s fochnoIogy somohow nffocfs fhoIr
rofrnnsmIssIon rIghfs. Thnf nrgumonf, howovor, dofIocfs nffon-
fIon from fho dofIcIoncIos of fhoIr chnIIongo fo Aoroo undor fho
CoµyrIghf Acf. IofIfIonors hnvo no rIghf fo coIIocf rofrnns-
mIssIon foos from consumors who uso nnfonnns nnd ÐV!s.
Congross sµocIfIcnIIy donIf wIfh rofrnnsmIssIon rIghfs for cnbIo
foIovIsIon undor sfnfufos soµnrnfo from coµyrIghf Inw. In nny
ovonf, If fhIs Courf grnnfs corfIornrI, rosµondonf rosorvos Ifs
rIghf fo nrguo nbouf why µofIfIonors IncorrocfIy hnvo confondod
fhnf Aoroo`s sorvIco nffocfs fhoIr rofrnnsmIssIon rIghfs.


20
TlirJ, nIfhough fhoro Is no dIvIsIon of nufhorIfy
nmong fho cIrcuIfs nf µrosonf, fwo dIsfrIcf courfs
hnvo ruIod In µofIfIonors` fnvor In cnsos InvoIvIng ono
of Aoroo`s µurµorfod comµofIfors.
8
See Iox Teletieion
S/o/ione, 1nc. t. Borr,Driller Con/en/ S,e., PLC, 9l5
I. Suµµ. 2d ll38 (C.Ð. CnI. 20l2), nnd Iox Teletieion
S/o/ione, 1nc. t. IilnOn X LLC, CIvII AcfIon Þo. l3-
?58 (!MC), 20l3 W! 4?634l4 (Ð.Ð.C. Soµf. 5, 20l3).
If n cIrcuIf confIIcf woro fo dovoIoµ ouf of ono of fhoso
cnsos, fho rosuIfIng docIsIon wouId nof rofIocf nonrIy
so dofnIIod n fncfunI rocord ns fhIs cnso.
Thnf dofIcIoncy Is µnrfIcuInrIy ncufo In fho
Borr,Driller cnso now undor submIssIon nffor ornI
nrgumonf In fho ÞInfh CIrcuIf, whoro fho dIsfrIcf
courf Issuod no fIndIngs of fncf. Insfond, fho courf
nofod, wIfhouf rosoIvIng fho Issuo, fhnf dofondnnf
IIImOn doscrIbod Ifs sysfom ns ¨fochnoIogIcnIIy
nnnIogous¨ fo Aoroo`s, n chnrncforIznfIon fhnf ¨IInIn-
fIffs dIsµufo|d]¨ by nrguIng fhnf ¨fhoro nro n numbor
of oIomonfs fhnf nro µrosonf In fho Aoroo sysfom
fhnf Ðofondnnfs hnvo nof IdonfIfIod ns µnrf of fhoIr
sysfom.¨ 9l5 I. Suµµ. 2d nf ll40, ll4l n.5, ll43.
Argumonf In fho nµµonI from fho CnIIfornIn fodornI
courf`s docIsIon wns honrd In Augusf 20l3. Woro
fhnf cnso fo como boforo fhIs Courf, If wouId nof µro-
vIdo nn nµµroµrInfo vohIcIo fo rosoIvo fho Imµorfnnf
µubIIc-µorformnnco coµyrIghf Issuo.

8
A comµnny cnIIod IIImOn (formorIy known ns ¨Inrry-
ÐrIIIor¨ or ¨AorookIIIor¨) µurµorfs fo offor fochnoIogy ¨nnnIo-
gous¨ fo Aoroo`s. IIImOn hns boon onjoInod by dIsfrIcf courfs
In CnIIfornIn nnd WnshIngfon, Ð.C., nnd hns boon hoId In
confomµf of courf by fho Inffor for commoncIng oµornfIons In
Iosfon In sµIfo of fhnf InjuncfIon. See ÐondIIno HoIIywood,
IilnOn X IounJ 1n Con/enp/ Of Cour/ Bu/ Ao/ IineJ Oter Bon
Violo/ion (Þov. 25, 20l3), o/ hffµ://www.dondIIno.com/20l3/
ll/fIImon-x-found-In-confomµf-of-courf-buf-no-fIno-ovor-bnn-
vIoInfIon/.


2l
Iour/l, fhIs cnso µrosonfs buf ono oxnmµIo of fho
wny fhnf fnsf, InoxµonsIvo communIcnfIons fochnoI-
ogy Is nIIowIng consumors fo onjoy offIcIonfIy doµIoyod
funcfIonnIIfIos. Insfond of fhrough nn nnfonnn, ÐV!,
µorsonnI comµufor, or ofhor dodIcnfod oIocfronIc
oquIµmonf Iocnfod In fho homo, fhoso now forms of
fochnoIogy oµornfo ¨In fho cIoud¨ fhnf Is, fochnoIogy
fhnf Is romofoIy Iocnfod buf rondIIy nccossIbIo nnd
oµornfod by fho consumor fhrough nn Infornof-
connocfod dovIco. Tho Socond CIrcuIf`s corrocf Infor-
µrofnfIon of fho CoµyrIghf Acf In CoIletieion nIIowod
fhoso InnovnfIons n vnsf nrrny of offIcIonf nnd usor-
dIrocfod InformnfIon sforngo nnd communIcnfIon
fochnoIogIos fo fIourIsh In fho µnsf fIvo yonrs.
9

IofIfIonors` ronowod offorfs fo forco consumors fo
uso Ioss convonIonf, moro oxµonsIvo oquIµmonf fo
nccomµIIsh fho snmo onds ns fhoso now fochnoIogIos
fhronfon fhnf µrogross nnd wIII sfIfIo furfhor Innovn-

9
See Josh !ornor, Tle 1npoc/ of Cop,rigl/ Polic, Clongee on
Ven/ure Copi/ol 1ntee/nen/ in ClouJ Conpu/ing Conponiee
(Þov. 4, 20ll), o/ hffµ://www.nnnIysIsgrouµ.com/uµIondod
IIIos/IubIIshIng/ArfIcIos/!ornor_InII20ll_CoµyrIghf_IoIIcy_VC_
Invosfmonfs.µdf (osfImnfIng $l.3 bIIIIon Invosfmonf In cIoud
comµufIng In fho fIrsf fhroo yonrs nffor CoIletieion, growIng
qunrforIy by 40°). Indusfry nnnIysfs osfImnfod In 20l2 fhnf
moro fhnn 500 mIIIIon µooµIo worIdwIdo sforo confonf usIng
cIoud sorvIcos, eee JngdIsh !oboIIo, Ih.Ð., ISuµµII Corµ. Iross
!oIonso, SuIecrip/ione /o ClouJ S/oroge Serticee /o Ieocl
Holf-Billion Letel Tlie Yeor (Soµf. 6, 20l2), o/ hffµ://www.
IsuµµII.com/MobIIo-nnd-WIroIoss-CommunIcnfIons/Þows/Ingos/
SubscrIµfIons-fo-CIoud-Sforngo-SorvIcos-fo-!onch-HnIf-IIIIIon-
!ovoI-ThIs-Yonr.nsµx; nnd AµµIo Comµufor nnnouncod In AµrII
20l3 fhnf Ifs ¨ICIoud¨ sorvIco hns moro fhnn 350 mIIIIon usors,
eee Anfhony Hn, Apple`e iClouJ Greu 20 Percen/ in Q2, /o 300M
Ieere, TochCrunch (Aµr. 23, 20l3), o/ hffµ://fochcrunch.com/
20l3/04/23/IcIoud-q2/.


22
fIon.
l0
Insfond of µurchnsIng n homo ÐV!, nn
nnfonnn for ovor-fho-nIr brondcnsfs, nnd n modIn-
shIffIng dovIco (such ns n SIIngbox) fo frnnsmIf fhoso
sIgnnIs fo Infornof-connocfod dovIcos, n consumor
cnn µurchnso nccoss fo funcfIonnIIy oquIvnIonf Aoroo
oquIµmonf for n frncfIon of fhnf cosf. Iocnuso of
rnµId fochnoIogIcnI dovoIoµmonf, fhIs cnso rnIsos nn
Imµorfnnf Issuo of Inw fhnf Is boffor rosoIvod by fhIs
Courf now fhnn Infor.
8E AIfhough Aoroo ncquIoscos In µofIfIonors`
roquosf for rovIow, If doos nof ngroo fhnf fho quos-
fIon µrosonfod In fho corfIornrI µofIfIon Is µroµorIy
formuInfod. Thnf quosfIon Is bnsod on fho orronoous
µromIso fhnf Aoroo ¨rofrnnsmIfs n brondcnsf¨ fo
¨fhousnnds of µnId subscrIbors.¨ Iof. I. Thnf µrom-
Iso Is sImµIy fnIso. If fInds no suµµorf In fho dIsfrIcf
courf`s fIndIngs of fncf, whIch µofIfIonors nro nof froo
fo chnIIongo In fhIs Courf. Tho dIsfrIcf courf oxµross-
Iy found fhnf Aoroo`s usors, no/ Aoroo, uso fho sysfom
fo nccoss ovor-fho-nIr brondcnsfs. Iof. Aµµ. 62n.
Thnf concIusIon rosfod on fho oxµross fIndIng fhnf
onch usor omµIoys n soµnrnfo, Indoµondonf nnfonnn
fo rocoIvo brondcnsf sIgnnIs; fho usor IIkowIso
confroIs fho rocordIng nnd frnnsmIssIon of n unIquo,
IndIvIdunI coµy of fhnf µrogrnm confonf. 1J. nf 65n-
66n, ?3n. Thnf Is µnrf of fho ronson why fho dIsfrIcf
courf found fhnf ¨fho Aoroo sysfom Is n sfrongor cnso
fhnn CoIletieion.¨ 1J. nf 86n.

l0
AIfhough µofIfIonors sfnfo fhnf fhoy nro nof sookIng fo
ovorfurn CoIletieion, fhoy cnnnof sorIousIy confond fhnf fho
docIsIon boIow cnn bo rovorsod wIfhouf fhIs Courf rojocfIng
CoIletieion`s nnnIysIs. To fho confrnry, fho µofIfIon Is n dIrocf
nssnuIf on CoIletieion, whIch fhoy hnvo chnrncforIzod ns
¨dof |yIng] bofh fho foxf of fho sfnfufo nnd Congross` Infonf,¨
Iof. ll, nnd µofIfIonors cInIm fhnf fhIs cnso wns wrongIy docId-
od bocnuso of ¨µnfh doµondoncy¨ from fho CoIletieion docIsIon,
Iof. 29.


23
Iurfhormoro, fhoro Is no dIsfrIcf courf fIndIng fhnf
Aoroo ns oµµosod fo Aoroo`s usors frnnsmIfs nny-
fhIng wIfhIn fho monnIng of fho CoµyrIghf Acf. Thnf
Issuo, shouId fho Courf ronch If, Is ono fhnf cnn bo
rosoIvod bnsod on fho undorIyIng fncfunI fIndIngs
of fho dIsfrIcf courf, whIch mnko cIonr fhnf Aoroo`s
usors, nof Aoroo, oxorcIso voIIfIonnI confroI ovor fho
funcfIonIng of Aoroo`s sysfom. Cf. iJ. nf 28n (nofIng
fhnf usors oxorcIso ¨voIIfIonnI confroI¨ by ¨choos|Ing]
whon nnd how¨ µrogrnmmIng ¨wIII bo µInyod bnck¨).
-!=-A/1:!=
Tho µofIfIon for n wrIf of corfIornrI, wIfh fho
QuosfIon Irosonfod ns roformuInfod In fhIs rosµonso,
shouId bo grnnfod.


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