Sony BMG Music Entertainment v. Tenenbaum

For eight years, Joel Tenenbaum (defendant) willfully and extensively infringed on the copyrights for 30 music files owned by Sony BMG Music Entertainment (Sony) (plaintiff). Tenenbaum repeatedly distributed the music files through peer-to-peer file-sharing servers despite multiple warnings that his actions were infringing and could subject him to substantial liability. In 2005, Sony sent Tenenbaum a cease-and-desist letter. Tenenbaum did not respond to the letter and continued his infringement activities, but he wiped his hard drive to destroy evidence of his activities. Two years later, Sony filed a copyright-infringement suit against Tenenbaum and sought statutory damages for willful infringement, arguing that Tenenbaum’s peer-to-peer sharing compromised Sony’s primary source of revenue, namely its exclusive right to distribute its copyrighted musical works. At trial, Tenenbaum repeatedly lied about the scope of his infringement but ultimately admitted responsibility. The jury was instructed to consider a wide range of factors, including the nature of Tenenbaum’s infringing activity, the revenue Sony lost because Tenenbaum infringed on its exclusive distribution rights, the eight-year duration of the infringing activity, and the fact that Tenenbaum continued infringing on Sony’s copyrights despite repeated warnings. After deliberating, the jury found that Tenenbaum had willfully infringed on Sony’s 30 copyrights and awarded Sony $22,500 per infringement, a total of $675,000. Tenenbaum then moved for a remittitur of the damages award, arguing that the damages were excessive. The district court reduced the jury’s award, finding it violated due process. On appeal, the First Circuit affirmed the liability finding but vacated the damages award and remanded to the district court for consideration of whether remittitur was appropriate.