$1.92 Million Damage Award for Filesharing

Musical Notes$1,920,000 for filesharing. As reported by the L.A. Times, Ars Technica, and Ben Sheffner, that’s what a jury in Minnesota just awarded several record labels for the willful infringement of their recordings by Jammie Thomas (now Jammie Thomas-Rasset), the Minnesota woman who allegedly downloaded and uploaded copyrighted songs over KaZaA. $1.92 million is an astounding figure, seemingly out of all proportion to any harm Jammie Thomas-Rasset could have caused, or to any reasonable deterrent. Even the record labels appear to be backing away from the award; nearly the first words out of spokesperson Carla Duckworth’s mouth were that they remain “willing to settle.” Ben Sheffner, of the Copyright & Campaigns blog, correctly notes that the verdict might in fact be “too huge” for the recording industry’s own good.

This is hardly a new issue. Record companies and movie studios often sue filesharers for far fewer works than the defendant actually copied, and settle for relatively small amounts given the range of statutory damages. It’s a problem if the law that media companies use to protect their works is so draconian that they are afraid to deploy it to their full advantage. You don’t see this in other areas of the law; no one routinely files breach of contract actions for one-tenth of their expectation damages just to avoid the appearance of a windfall.

So what’s the source of the problem? I think the explanation is the massive inertia of the copyright system in dealing with the fundamental alteration of the information universe: namely, that everyone is now a publisher. And, while it’s easy to scoff at the existing situation, it’s harder than most people think to figure out how to fix it. Which is why we are where we are.

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75th Anniversary of the FCC

fccToday marks the 75th anniversary of the Communications Act of 1934. For most of its existence, the Communications Act provided much of the essential regulatory structure for the telecommunications (in Title II of the Act) and broadcast (in Title III) industries. The former provided some of the basis for my own practice back in the 1990s as an associate at a large Chicago law firm, one of whose primary clients was American Telephone & Telegraph Co. (or “AT&T,” as at one point it was formally renamed).

Of considerably broader importance, the Communications Act created the Federal Communications Commission (FCC), which has had an extraordinary effect over the decades on the American economy and society. Not so long ago there were calls to abolish the FCC, but they have not achieved success.

This is not to suggest that the FCC is riding high in all respects. 

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Immigration Enforcement at the Worksite

120px-us_immigration_and_customs_enforcement_arrestOur recent graduate Ben Crouse has a fascinating new paper on SSRN entitled “Worksite Raids and Immigration Norms: A ‘Sticky’ Problem.”  Drawing on Dan Kahan’s theory of social norms, Ben critiques the government’s use of high-profile worksite raids as a tactic to deter employers from hiring illegal immigrants.  Here is a taste:

The government’s high-profile raids may encourage an anti-enforcement backlash, especially when accompanied by criminal prosecutions of employers and employees alike.  In fact, high-profile raids seem perfectly tailored to amplify anti-enforcement norms.  By coupling employer enforcement measures with large-scale criminal prosecutions and removal of immigrants, the measures arouse the anxieties of the Hispanic population.  By bankrupting large employers, the measures also jeopardize the economic future of the communities that depend on them.

As an alternative to an enforcement strategy built around a small number of high-impact raids, Ben proposes reforms that would result in a larger number of enforcement actions against employers, but with less draconian results for both employers and employees.  He would make it easier for the government to sanction employers who hire illegal immigrants, but also reduce the magnitude of the sanctions in many cases, which should diminish anti-enforcement backlash.

Ben’s paper won the Silver Quill Award earlier this year for being one of the top two students comments published in volume 92 of the Marquette Law Review.

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