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UMG Recordings, Inc. v. Shelter Capital Partners LLC

United States Court of Appeals for the Ninth Circuit

May 6, 2011, Argued and Submitted, Pasadena, California; March 14, 2013, Filed

No. 09-55902, No. 09-56777, No. 10-55732

Opinion

 [***1255]   [*1010]  ORDER AND OPINION

ORDER

The opinion filed on December 20, 2011, and appearing at 667 F.3d 1022 (9th Cir. 2011) is withdrawn.

Appellant's petition for panel rehearing is GRANTED and the petition for rehearing en banc is DENIED AS MOOT.

A superseding opinion will be filed concurrently with this order.

 [*1011]  The parties may file additional petitions for rehearing or rehearing en banc.

OPINION

FISHER, Circuit Judge:

Veoh Networks (Veoh) operates a publicly accessible website that enables users to share videos with other users. Universal Music Group (UMG) is one of the world's largest recorded music and music publishing companies, and includes record labels such as Motown, Def Jam and Geffen. In addition to producing and distributing recorded music, UMG produces music videos. Although Veoh has implemented various procedures to prevent copyright infringement through its system, users of Veoh's service have in the past been able, without UMG's authorization, to download videos containing songs for which UMG owns the copyright. UMG responded by filing suit against Veoh for direct and secondary copyright infringement. The district court granted summary  [**4] judgment to Veoh after determining that it was protected by the Digital Millennium Copyright Act (DMCA) "safe [***1256]  harbor" limiting service providers' liability for "infringement of copyright by reason of the storage at the direction of a user of material that resides on a system or network controlled or operated by or for the service provider." 17 U.S.C. § 512(c). We agree, and accordingly affirm.

Background1

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718 F.3d 1006 *; 2013 U.S. App. LEXIS 5100 **; 106 U.S.P.Q.2D (BNA) 1253 ***; Copy. L. Rep. (CCH) P30,397; 85 Fed. R. Serv. 3d (Callaghan) 456; 2013 WL 1092793

UMG RECORDINGS, INC., a Delaware corporation; UNIVERSAL MUSIC CORP., a New York corporation; SONGS OF UNIVERSAL, INC., a California corporation; UNIVERSAL-POLYGRAM INTERNATIONAL PUBLISHING, INC., a Delaware corporation; RONDOR MUSIC INTERNATIONAL, INC., a California corporation; UNIVERSAL MUSIC-MGB NA LLC, a California Limited Liability Company; UNIVERSAL MUSIC-Z TUNES LLC, a New York Limited Liability Company; UNIVERSAL MUSIC-MBG MUSIC PUBLISHING LTD., a UK Company, Plaintiffs-Appellants, v. SHELTER CAPITAL PARTNERS LLC, a Delaware Limited Liability Company; SHELTER VENTURE FUND LP, a Delaware Limited Partnership; SPARK CAPITAL LLC, a Delaware Limited Liability Company; SPARK CAPITAL, L.P., a Delaware Limited Partnership; TORNANTE COMPANY, LLC, a Delaware Limited Liability Company, Defendants-Appellees, and VEOH NETWORKS, INC., a California corporation, Defendant.UMG RECORDINGS, INC., a Delaware corporation; UNIVERSAL MUSIC CORP., a New York corporation; SONGS OF UNIVERSAL, INC., a California corporation; UNIVERSAL-POLYGRAM INTERNATIONAL PUBLISHING, INC., a Delaware corporation; RONDOR MUSIC INTERNATIONAL, INC., a California corporation; UNIVERSAL MUSIC-MGB NA LLC, a California Limited Liability Company; UNIVERSAL MUSIC-Z TUNES LLC, a New York Limited Liability Company; UNIVERSAL MUSIC-MBG MUSIC PUBLISHING LTD., a UK Company, Plaintiffs-Appellants, v. VEOH NETWORKS, INC., a California corporation, Defendant-Appellee, and SHELTER CAPITAL PARTNERS LLC, a Delaware Limited Liability Company; SHELTER VENTURE FUND LP, a Delaware Limited Partnership; SPARK CAPITAL LLC, a Delaware Limited Liability Company; SPARK CAPITAL, L.P., a Delaware Limited Partnership; TORNANTE COMPANY, LLC, a Delaware Limited Liability Company, Defendants.UMG RECORDINGS, INC., a Delaware corporation; UNIVERSAL MUSIC CORP., a New York corporation; SONGS OF UNIVERSAL, INC., a California corporation; UNIVERSAL-POLYGRAM INTERNATIONAL PUBLISHING, INC., a Delaware corporation; RONDOR MUSIC INTERNATIONAL, INC., a California corporation; UNIVERSAL MUSIC-MGB NA LLC, a California Limited Liability company; UNIVERSAL MUSIC-Z TUNES LLC, a New York Limited Liability company; UNIVERSAL MUSIC-MBG MUSIC PUBLISHING LTD., a UK company, Plaintiffs-Appellees, v. VEOH NETWORKS, INC., a California corporation, Defendant-Appellant.

Prior History:  [**1] Appeals from the United States District Court for the Central District of California. D.C. No. 2:07-cv-05744-AHM-AJW, D.C. No. 2:07-cv-05744-AHM-AJW, D.C. No. 2:07-cv-05744-AHM-AJW. A. Howard Matz, District Judge, Presiding.

UMG Recordings, Inc. v. Shelter Capital Partners, LLC, 667 F.3d 1022, 2011 U.S. App. LEXIS 25168 (9th Cir. Cal., 2011)UMG Recordings, Inc. v. Veoh Networks, Inc., 665 F. Supp. 2d 1099, 2009 U.S. Dist. LEXIS 86932 (C.D. Cal., 2009)UMG Recordings, Inc. v. Veoh Networks, Inc., 2009 U.S. Dist. LEXIS 70553 (C.D. Cal., May 5, 2009)

Disposition: AFFIRMED in part and REMANDED in part.

CORE TERMS

Veoh, infringing, user, video, service provider, safe harbor, district court, Investor, costs, copyright infringement, uploaded, argues, hosting, notice, attorney's fees, storage, ability to control, website, vicarious liability, red flag, web, automatically, Internet, holders, actual knowledge, terms, circumstances, contributory, software, music

Civil Procedure, Summary Judgment, Entitlement as Matter of Law, Genuine Disputes, Appeals, Summary Judgment Review, Standards of Review, Burdens of Proof, Movant Persuasion & Proof, Legal Entitlement, Standards of Review, De Novo Review, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Copyright Law, Copyright Infringement Actions, Civil Infringement Actions, Judicial Review, Settlements, Offers of Judgment, General Overview, Digital Millennium Copyright Act, Safe Harbor Provisions, Evidence, Inferences & Presumptions, Presumptions, Governments, Legislation, Interpretation, Torts, Elements, Causation, Causation in Fact, Secondary Liability, Contributory Infringement Actions, Online Infringement, Determinations, Burdens of Proof, Allocation, Vicarious Liability Actions, Rejection, Damages, Types of Damages, Costs & Attorney Fees, Costs & Attorney Fees, Costs, Attorney Fees & Expenses, Basis of Recovery, Statutory Awards, Judicial Officers, Judges, Discretionary Powers, Making of Offers, Reasonable Fees

Civil Procedure, Summary Judgment, Entitlement as Matter of Law, Genuine Disputes, Appeals, Summary Judgment Review, Standards of Review, Burdens of Proof, Movant Persuasion & Proof, Legal Entitlement, Standards of Review, De Novo Review, Defenses, Demurrers & Objections, Motions to Dismiss, Failure to State Claim, Copyright Law, Copyright Infringement Actions, Civil Infringement Actions, Judicial Review, Settlements, Offers of Judgment, General Overview, Digital Millennium Copyright Act, Safe Harbor Provisions, Evidence, Inferences & Presumptions, Presumptions, Governments, Legislation, Interpretation, Torts, Elements, Causation, Causation in Fact, Secondary Liability, Contributory Infringement Actions, Online Infringement, Determinations, Burdens of Proof, Allocation, Vicarious Liability Actions, Rejection, Damages, Types of Damages, Costs & Attorney Fees, Costs & Attorney Fees, Costs, Attorney Fees & Expenses, Basis of Recovery, Statutory Awards, Judicial Officers, Judges, Discretionary Powers, Making of Offers, Reasonable Fees