o.

l3-46l

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

AMI!ICA I!OACASTIC COMIAIIS, IC., IT A!.,
Pe/i/ionere,

v.


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

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

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

I!IA M. COTTI!
CII!A! CO!SI!
AII! I!OW
II!TY CII!A! CO!SI!
AI!IO, IC.
280 Summor Sfroof
4fh IIoor
Iosfon, MA 022l0
(6l?) 86l-4290


ocombor l2, 20l3

AVI C. I!II!ICK
Couneel of IecorJ
AA!O M. IAI!
CAIT!I S. HA!!
KI!!OCC, H!II!, HASI,
TO, IVAS & IICI!,
I.!.!.C.
l6l5 M Sfroof, .W.
SuIfo 400
WnshIngfon, .C. 20036
(202) 326-?900
(dfrodorIckkhhfo.com)

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


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

SITH . C!IISTII
COSTATII CAO !!I
Ono IrnnkIIn Squnro
l30l K Sfroof, .W.
SuIfo l050 Insf
WnshIngfon, .C. 20005
(202) 204-3500



@/;1?:!= $9;1;=?;>
Whofhor Aoroo orform|s] ubIIcIy, undor Soc-
fIons l0l nnd l06 of fho CoyrIghf Acf, by suIyIng
romofo oquImonf fhnf nIIows n consumor fo funo
nn IndIvIdunI, romofoIy Iocnfod nnfonnn fo n ubIIcIy
nccossIbIo, ovor-fho-nIr brondcnsf foIovIsIon sIgnnI,
uso n romofo dIgIfnI vIdoo rocordor fo mnko n orsonnI
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,
rosondonf Aoroo, Inc. sfnfos fho foIIowIng:
Aoroo, Inc. hns no nronf corornfIon. !SAI
!!C, n subsIdInry of IAC/InforAcfIvoCor, n ubIIcIy
frndod comnny, owns l0 or moro of Aoroo, Inc.`s
sfock.



III
?48A; !< -!=?;=?1
Ingo
Q!ISTIO I!ISITI .......................................... I
CO!IO!ATI ISC!OS!!I STATIMIT ............ II
TAI!I OI A!THO!ITIIS ...................................... Iv
STATIMIT .............................................................. 3
l. Aoroo`s TochnoIogy ........................................... 3
2. Tho IsfrIcf Courf ocIsIon ............................. 5
3. Tho Courf of AonIs ocIsIon ........................ 9
A!C!MIT ............................................................. l2
I. Tho ocIsIon IoIow Is Corrocf ....................... l2
A. Aoroo`s Sysfom oos of TrnnsmIf A
Iorformnnco To Tho IubIIc ................... l2
I. Aoroo`s !sors of Aoroo Trnns-
mIf Confonf !sIng Aoroo`s Sysfom ......... l?
II. THIS CASI I!OVIIS A AII!O-
I!IATI VIHIC!I IO! !ISO!VIC
THI IMIO!TAT Q!ISTIO OI
III!A! !AW I!ISITI ..................... l8
COC!!SIO .......................................................... 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. Su. 2d ll38
(C.. CnI. 20l2) ................................................... 20
Iox Teletieion S/o/ione, 1nc. t. IilnOn X LLC,
CIvII AcfIon o. l3-?58 (!MC), 20l3 W!
4?634l4 (..C. Sof. 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
CoyrIghf 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.!. !o. o. 94-l4?6 (l9?6), reprin/eJ in
l9?6 !.S.C.C.A.. 5659 ...................................... l6

OTHI! MATI!IA!S
ondIIno HoIIywood, IilnOn X IounJ 1n
Con/enp/ Of Cour/ Bu/ Ao/ IineJ Oter Bon
Violo/ion (ov. 25, 20l3), o/ hff://www.
dondIIno.com/20l3/ll/fIImon-x-found-In-
confomf-of-courf-buf-no-fIno-ovor-bnn-
vIoInfIon/ .............................................................. 20
Anfhony Hn, Apple`e iClouJ Greu 20 Percen/
in Q2, /o 300M Ieere, TochCrunch (Ar. 23,
20l3), o/ hff://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 (ov. 4,
20ll), o/ hff://www.nnnIysIsgrou.com/
uIondodIIIos/IubIIshIng/ArfIcIos/!ornor_
InII20ll_CoyrIghf_IoIIcy_VC_Invosfmonfs.
df ........................................................................ 2l


vI
2 MoIvIIIo I. Immor & nvId Immor,
Ainner on Cop,rigl/ (rov. od. 20l3) ................. l3
JngdIsh !oboIIo, Ih.., ISuII Cor. Iross
!oIonso, SuIecrip/ione /o ClouJ S/oroge
Serticee /o Ieocl Holf-Billion Letel Tlie
Yeor (Sof. 6, 20l2), o/ hff://www.IsuII.
com/MobIIo-nnd-WIroIoss-CommunIcnfIons/
ows/Ingos/SubscrIfIons-fo-CIoud-Sforngo-
SorvIcos-fo-!onch-HnIf-IIIIIon-!ovoI-ThIs-
Yonr.nsx ............................................................. 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 nrfy, fo rocord nnd vIow IocnI, ovor-fho-nIr
brondcnsf foIovIsIon rogrnmmIng wIfhouf subjocfIng
fho fhIrd nrfy fo IInbIIIfy for InfrIngIng coyrIghf
ownors` oxcIusIvo rIghf fo orform works ubIIcIy.
If Is woII soffIod fhnf n consumor cnn doIoy such
oquImonf nf homo wIfhouf InfrIngIng coyrIghf.
Tho Socond CIrcuIf horo nffIrmod fhnf consumors
nIso mny nccoss nnd oornfo fho snmo fyos of oquI-
monf romofoIy fhrough fho Infornof wIfhouf InfrIng-
Ing ofIfIonors` oxcIusIvo ubIIc-orformnnco rIghfs.
Ivon fhough fho Socond CIrcuIf docIdod fhnf Issuo
corrocfIy, ofIfIonors hnvo sIgnnIod fhoIr InfonfIon fo
wngo n wnr of nffrIfIon by ro-IIfIgnfIng fhIs Issuo In
ovory mnrkof fo whIch Aoroo oxnnds Ifs busInoss.
AccordIngIy, Aoroo boIIovos If Is nrorInfo for fhIs
Courf fo grnnf rovIow fo nffIrm fho docIsIon boIow.
!osondonf nofos, howovor, fhnf fho quosfIon ro-
sonfod In fho ofIfIon Is nof fnIfhfuI fo fho dIsfrIcf
courf`s fIndIngs nnd fho undIsufod fncfs, nnd so hns
roformuInfod If.
Tho docIsIon boIow Is corrocf. Tho ossonfInI bnr-
gnIn fhnf ofIfIonors mndo fo obfnIn, for froo, ubIIc
socfrum worfh bIIIIons of doIInrs wns fhnf, onco fhoy
hnvo brondcnsf fhoIr rogrnmmIng, consumors hnvo
n rIghf fo rocoIvo nnd fo vIow fhnf rogrnmmIng
usIng nn nnfonnn nnd fo coy fhnf rogrnmmIng for
fhoIr orsonnI 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. A. 62n
(omhnsos 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 nrfIcuInr chnnnoI. Tho consumor usos Aoroo`s
oquImonf fo cronfo n unIquo coy of fhnf rogrnm-
mIng, nnd fho IndIvIdunI usor cnn vIow fhoIr coy
usIng nn Infornof-connocfod dovIco shorfIy fhoro-
nffor. o ofhor orson cnn nccoss fhnf coy. !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 ubIIc. 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 coyrIghf InfrIngomonf.
ovorfhoIoss, ofIfIonors nggrossIvoIy hnvo ur-
suod cInIms fhnf Aoroo Is InfrIngIng coyrIghf
ownors` oxcIusIvo rIghf, undor l? !.S.C. l06(4), fo
orform fhoIr works ubIIcIy. To dnfo, InInfIffs
hnvo commoncod such cInIms In fIvo cnsos In fhroo
sfnfos. ono of fho cInIms ngnInsf Aoroo hns suc-
coodod. Tho Socond CIrcuIf rojocfod ofIfIonors`
cInIm for n roIImInnry 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 urorfod comofIfors,
IIImOn. Iocnuso of fho oxfonsIvo ovIdonfInry rocord
nnd cnrofuI fncf-fIndIng by fho dIsfrIcf courf boIow,
fhIs cnso (nnd nof fho cnsos InvoIvIng IIImOn) ro-
vIdos nn nrorInfo vohIcIo for fhIs Courf fo rosoIvo
fhIs Issuo. Thoroforo, nIfhough Aoroo dIsngroos wIfh
ofIfIonors` rosonfnfIon In fhoIr ofIfIon, 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 rosonso nnd
nffIrm fho Socond CIrcuIf`s judgmonf In fhIs cnso.


3
1?4?;B;=?
DE 4%*%(F2 ?%7."(6(GH
Aoroo sImIIfIos ubIIc nccoss fo froo brondcnsf
foIovIsIon by mnkIng If onsIor
l
for consumors fo
rocord nnd wnfch brondcnsf rogrnmmIng usIng
nn IndIvIdunI nnfonnn nnd V! fhnf fhoy confroI vIn
n Info, fnbIof, or smnrfhono. A usor nccossos fhnf
oquImonf by IoggIng onfo Aoroo`s wobsIfo wIfh nn
Infornof-connocfod dovIco nnd soIocfIng n IocnIIy
brondcnsf rogrnm jusf ns fhnf usor mIghf do usIng n
homo V!. See Iof. A. 62n; HorowIfz !oorf 56;
!IowskI ocI. 6. Tho usor mny fhon chooso fo
Wnfch or !ocord fho rogrnm.
2
See Iof. A.
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 rogrnm.
See iJ. nf 65n; HorowIfz !oorf 64. Inch nnfonnn
In Aoroo`s sysfom consIsfs of n nIr of mofnI Ioos
roughIy fho sIzo of n dImo. See Iof. A. 6?n. IIghfy
such nnfonnns cnn bo nckod on ono ond of n cIrcuIf
bonrd, nnd l6 bonrds cnn bo sforod nrnIIoI fo ono
nnofhor In n mofnI housIng. See iJ. nf 6?n-68n. In n
fncfunI fIndIng fhnf ofIfIonors hnvo nof chnIIongod

l
A consumor cnn uso nn nnfonnn, dIgIfnI vIdoo rocordor
(V!), nnd modIn-shIffIng dovIco fo obfnIn fhIs funcfIonnIIfy
usIng oquImonf doIoyod nf fho usor`s homo. See Iof. A.
64n; HorowIfz !oorf ?l-??. Tho oxorf roorf of InuI Hor-
owIfz (kf. o. ?8-l) nnd fho docInrnfIons of Josoh !IowskI
(kf. o. 80) nnd ChnIfnnyn KnnojIn (kf. o. ?9) woro submIf-
fod fo fho dIsfrIcf courf nnd nro shorf-cIfod In fhIs brIof fo fho
orfInonf nrngrnhs of fhoIr submIssIons.
2
ThIs mnnnor of oornfIon Is comnrnbIo fo fhnf of n homo
V!. Whon n consumor usos n homo V!, nII confonf IncIud-
Ing IIvo confonf Is Inyod bnck by fho consumor from n
rocordIng, fo onnbIo nuso nnd rowInd funcfIonnIIfy.


4
on nonI, fho dIsfrIcf courf rojocfod ofIfIonors` con-
fonfIon fhnf Aoroo`s nnfonnns funcfIon coIIocfIvoIy
ns n sIngIo nnfonnn. 1J. nf 6?n. Tho courf dofor-
mInod, bnsod on oxfonsIvo oxorf dIscovory nnd fos-
fImony, fhnf onch nnfonnn funcfIons IndoondonfIy.
1J. nf ?ln, ?3n.
Whon n usor funos nn nnfonnn fo rocoIvo n brond-
cnsf sIgnnI, nn IndIvIdunI coy of fho rogrnmmIng
cnrrIod by fhnf sIgnnI Is rocordod fo hnrd drIvo dIsk
sforngo, comnrnbIo fo fho hnrd-dIsk sforngo In n
homo V!. See iJ. nf 6n-?n. Tho usor cnn fhon vIow
fho rocordIng ovor fho Infornof vIn n comnfIbIo
Infornof-connocfod dovIco. See iJ. nf 66n. Thoso
rocossos occur onIy nf fho dIrocfIon of fho usor. See
!IowskI ocI. l2, l4, 35.
Thoro Is no roIovnnf dIsfIncfIon bofwoon fho
Wnfch modo nnd fho !ocord modo. See Iof. A.
6?n; !IowskI ocI. 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 nrfIcu-
Inr usor. See Iof. A. 6n-?n. Tho usor fhon Inys
bnck nnd vIows fhnf IndIvIdunI dIgIfnI rocordIng. See
HorowIfz !oorf 64. A consumor usIng Aoroo`s
oquImonf, IIko nny V!, doos nof, sfrIcfIy sonkIng,
wnfch confonf IIvo, bocnuso n doIny (of nf Ionsf sIx
soconds nnd somofImos Iongor) occurs bofwoon fho
rocordIng nnd fho ovonfunI Inybnck. See Iof. A.
66n; !IowskI ocI. ?, 5l; HorowIfz !oorf 5?.
Tho fwo modos dIffor In onIy fwo wnys: (l) on corfnIn
buf nof nII consumor dovIcos, Inybnck bogIns nufo-
mnfIcnIIy whon n usor soIocfs Wnfch modo (rnfhor
fhnn roquIrIng fho usor nIso fo ross IIny), nnd
(2) n dIgIfnI rocordIng mndo whIIo fho oquImonf Is
In Wnfch modo Is nof snvod nffor fho usor fInIshos


5
wnfchIng fhnf rogrnm, unIoss fho usor soIocfs fho
!ocord modo boforo fho rogrnm onds. See Iof.
A. 5n, 6?n; !IowskI ocI. 6 n.l, 48, 52, 54.
Irom fho bogInnIng fo fho ond of fhIs rocoss, fho
dnfn sfronm rocoIvod by nn nnfonnn Is nvnIInbIo onIy
fo fho usor who funod fho nnfonnn by soIocfIng n
rogrnm fo wnfch.
3
See Iof. A. 8n, 65n; HorowIfz
!oorf 63 & IIg. ll; !IowskI ocI. 5, 4l, 4?.
Tho dIgIfnI rocordIng mndo from fhnf IndIvIdunI dnfn
sfronm Is oxcIusIvoIy nssocInfod wIfh fhnf usor nnd
cnn bo Inyod bnck onIy by fhnf usor. See Iof. A.
8n; !IowskI ocI. 5, 4l-43. Ivon If fwo usors
chooso fo vIow fho snmo foIovIsIon rogrnm nf fho
snmo fImo ns fhoy offon wIII fhoy wIII novor shnro
nn nnfonnn, dnfn sfronm, or dIgIfnI rocordIng. See
!IowskI ocI. 43, 56. Tho snmo wouId bo fruo If
fwo noIghbors on n sfroof woro usIng IndIvIdunI roof-
fo nnfonnns nnd homo V!s. As n rosuIf, onch
rocordIng mndo usIng Aoroo`s oquImonf Is unIquo
nof onIy In fho sonso fhnf If Is orsonnI, buf nIso
bocnuso, owIng fo oIocfrIcnI Inforforonco, fochnIcnI
gIIfchos, nnd occnsIonnI oquImonf fnIIuro, no fwo
coIos nro IdonfIcnI. See Iof. A. ?ln; !IowskI
ocI. 43.
IE ?.% >'2&*'7& -(3*& >%7'2'("
IofIfIonors nro brondcnsf nofworks nnd brondcnsf
IIconsoos fhnf roduco nnd oxhIbIf rogrnmmIng for
dIssomInnfIon fhrough ovor-fho-nIr sIgnnIs. See, e.g.,
HorowIfz !oorf 30-3l. IofIfIonors do so by ox-
IoIfIng fho brondcnsf socfrum, n ubIIc 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 !oorf 58; !IowskI ocI. l4, 36.


6
ornI CommunIcnfIons CommIssIon. See CommunIcn-
fIons Acf of l934, ch. 652, 30l, 48 Sfnf. l064, l08l
(rovIdIng for uso of rndIownvo chnnnoIs, buf nof
fho ownorshI fhoroof ); iJ. 309(b)(l), 48 Sfnf. l085
(rovIdIng for IIconso form fhnf confors socIfIod
rIghfs fo uso dosIgnnfod socfrum). TrndIfIonnIIy,
nnd sfIII fodny, brondcnsfors mnko rogrnmmIng
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 roIImInnry InjuncfIon
bnsod on Aoroo`s nIIogod dIrocf InfrIngomonf of fhoIr
ubIIc-orformnnco 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 doscrIfIon of CoIletieion hoIs fo Inco
ofIfIonors` nrgumonfs Info roor confoxf.
CoIletieion concornod n cnbIo rovIdor fhnf offorod
Ifs subscrIbors fho nbIIIfy fo uso n V! fhnf wns
Iocnfod nf CnbIovIsIon`s fncIIIfy, rnfhor fhnn nf fho
usor`s homo, n fochnoIogy known ns n romofo sforngo
V! or !S-V!. 1J. nf l24-25. CnbIovIsIon`s sys-
fom, In rosonso fo n usor`s roquosf, cronfod n coy
of rogrnmmIng 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-V! rocord fho rogrnm couId nccoss fho
coy fhnf ho cronfod. 1J. nf l35.
CoyrIghf hoIdors (mnny of fhom ofIfIonors horo)
suod, nrguIng fhnf CnbIovIsIon`s !S-V! sysfom


?
InfrIngod fhoIr coyrIghfs by ongngIng In unnufhor-
Izod ubIIc orformnncos of fhoIr works fhrough fho
Inybnck of !S-V! coIos. 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 coIos,
nofwIfhsfnndIng fhnf CnbIovIsIon hnd dosIgnod fho
!S-V! sysfom, ownod fho oquImonf, nnd mnIn-
fnInod fho oquImonf nf Ifs own hond-ond fncIIIfIos.
Tho courf fhon consfruod fho TrnnsmIf CInuso,
whIch rovIdos In orfInonf nrf fhnf '|f]o orform
. . . ubIIcIy monns . . . fo frnnsmIf . . . n orfor-
mnnco . . . of fho work . . . fo fho ubIIc,` fo monn
fhnf n frnnsmIssIon of n orformnnco Is IfsoIf n or-
formnnco. 1J. (quofIng l? !.S.C. l0l). In dofor-
mInIng whofhor n orformnnco Is fo fho ubIIc
undor fho TrnnsmIf CInuso, fho courf ronsonod,
fho sfnfufo dIrocfs us fo oxnmIno who rocIsoIy
Is 'cnnbIo of rocoIvIng` n nrfIcuInr frnnsmIssIon.
1J. nf l35. Iocnuso onch !S-V! frnnsmIssIon Is
mndo usIng n sIngIo unIquo coy of n work, mndo by
nn IndIvIdunI subscrIbor, ono fhnf cnn bo docodod
oxcIusIvoIy by fhnf subscrIbor`s cnbIo box, onIy ono
subscrIbor Is cnnbIo of rocoIvIng nny gIvon !S-V!
frnnsmIssIon. 1J.
Tho CoIletieion courf rojocfod fhon-IsfrIcf Judgo
ChIn`s nnnIysIs, whIch consIdorod nof fho ofonfInI
nudIonco of n nrfIcuInr frnnsmIssIon, buf fho ofon-
fInI nudIonco of fho undorIyIng work (I.o., 'fho ro-
grnm`) whoso confonf Is boIng frnnsmIffod. 1J. Tho
Socond CIrcuIf doomod fhnf rondIng fo bo Incon-
sIsfonf wIfh fho sfnfufory Inngungo, whIch sonks of
ooIo cnnbIo of rocoIvIng n nrfIcuInr 'frnnsmIs-
sIon` or 'orformnnco,` nnd nof of fho ofonfInI nudI-
onco of n nrfIcuInr '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. A. 84n. IIrsf,
Aoroo`s sysfom cronfos n unIquo coy of onch foIovI-
sIon rogrnm for onch subscrIbor who roquosfs fo
wnfch fhnf rogrnm, 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
coy. 1J. ThIrd, fho frnnsmIssIon of fho unIquo
coy Is mndo eolel, fo fho subscrIbor who roquosfod
If; no ofhor subscrIbor Is cnnbIo of nccossIng fhnf
coy nnd no frnnsmIssIons nro mndo from fhnf coy
oxcof fo fho subscrIbor who roquosfod If. 1J. nf
83n-84n (foofnofo omIffod).
Tho dIsfrIcf courf rojocfod ofIfIonors` nrgumonf
fhnf If shouId nof consIdor whofhor n nrfIcuInr or-
formnnco InIfInfod by fho consumor`s dIrocfIon usIng
Aoroo`s sysfom Is fo fho ubIIc buf shouId Insfond
Iook bnck . . . fo fho oInf nf whIch Aoroo`s nnfonnns
obfnIn fho brondcnsf confonf fo concIudo fhnf Aoroo
ongngos In n ubIIc orformnnco. 1J. nf 85n-86n.
Tho dIsfrIcf courf nofod fhnf fho courf of nonIs
In CoIletieion hnd rojocfod fho snmo nrgumonf,
concIudIng fhnf fhoro wns n dIvIdIng IIno bofwoon
fho frnnsmIssIons mndo by fho confonf rovIdors
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 IndoondonfIy, In nf Ionsf ono rosocf fho
Aoroo sysfom Is n sfrongor cnso fhnn CoIletieion . . .
bocnuso . . . onch coy 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 unorsunsIvo ofIfIonors` 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 Indoondonf orformnncos,
bocnuso fhnf nrgumonf Is nofhIng moro fhnn fho
CoIletieion InInfIffs` InforrofnfIon of fho TrnnsmIf
CInuso. Iof. A. 25n. As for ofIfIonors` nrgumonf
fhnf nII of Aoroo`s dIscrofo frnnsmIssIons |shouId] 'bo
nggrognfod nnd vIowod coIIocfIvoIy ns consfIfufIng n
ubIIc orformnnco,` fho courf found fhnf nrgumonf
forocIosod by CoIletieion`s hoIdIng fhnf fho roIovnnf
InquIry undor fho TrnnsmIf CInuso Is fho ofonfInI
nudIonco of n nrfIcuInr frnnsmIssIon, nof fho ofon-
fInI nudIonco for fhnf undorIyIng work or fho nrfIcu-
Inr orformnnco of fhnf work boIng frnnsmIffod. 1J.
nf 25n-26n. |W]o cnnnof nccof |ofIfIonors`] nrgu-
monfs fhnf Aoroo`s frnnsmIssIons fo n sIngIo Aoroo
usor, gonornfod from n unIquo coy cronfod nf fho
usor`s roquosf nnd onIy nccossIbIo fo fhnf usor,
shouId bo nggrognfod for fho urosos of doformInIng
whofhor fhoy nro ubIIc orformnncos. 1J. nf 26n-
2?n.
Tho courf IIkowIso rojocfod ofIfIonors` nrgumonf
fhnf fho rosuIf In CoIletieion doondod on nnnIogIz-
Ing CnbIovIsIon`s !S-V! fo n convonfIonnI V!,
nofIng fhnf fho courf hnd nIrondy foIIowod CoIle-
tieion`s InforrofnfIon 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
robnfIvo, Aoroo`s sysfom couId nccurnfoIy bo nnnIo-


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

In nddIfIon, fho courf found fhnf ofIfIonors`
nrgumonf fnIIod fo nccounf for Aoroo`s usor-socIfIc
nnfonnns. . . . |I]von If wo woro fo dIsrognrd Aoroo`s
coIos, If wouId sfIII bo fruo fhnf fho ofonfInI 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 dIsufo fhnf fho frnnsmIssIon
of n brondcnsf TV rogrnm rocoIvod by nn IndIvIdu-
nI`s rooffo nnfonnn fo fho TV In hIs IIvIng room Is
rIvnfo, bocnuso onIy fhnf IndIvIdunI cnn rocoIvo fho
frnnsmIssIon from fhnf nnfonnn . . . . |IofIfIonors]
hnvo rosonfod no ronson why fho rosuIf shouId bo
nny dIfforonf whon fhnf rooffo nnfonnn Is ronfod
from Aoroo nnd Ifs sIgnnIs frnnsmIffod ovor fho In-
fornof. 1J. nf 3ln.
Tho courf furfhor dIsngrood wIfh ofIfIonors` cInIm
fhnf hoIdIng fhnf Aoroo`s frnnsmIssIons nro nof
ubIIc orformnncos 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 comufIng
sorvIcos . . . nonr fo hnvo dono fho snmo. 1J. nf
32n-33n.
Tho courf nIso found mIsIncod ofIfIonors` roIInnco
on fho IogIsInfIvo hIsfory of fho CoyrIghf Acf of

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


ll
l9?6. In nrfIcuInr, If found fhnf ofIfIonors Ignorod
Congross`s doformInnfIon fo oxomf prito/e orfor-
mnncos, IncIudIng orformnncos nccomIIshod fhrough
frnnsmIssIons, from coyrIghf IInbIIIfy. In fho foch-
noIogIcnI onvIronmonf of l9?6, dIsfInguIshIng bo-
fwoon ubIIc nnd rIvnfo frnnsmIssIons wns sImIor
fhnn fodny. 1J. nf 34n. Tho courf ronsonod fhnf fho
frnnsmIssIons nf Issuo In fhIs cnso cIosoIy rosom-
bIo fho rIvnfo frnnsmIssIons from dovIcos such ns
!S-V!s nnd SIIngboxos. 1J. AccordIngIy, fho courf
concIudod fhnf, bocnuso Aoroo`s sysfom oornfod
dIfforonfIy from n cnbIo foIovIsIon sysfom, wo cnnnof
dIsrognrd fho confrnry concorns oxrossod by Congross
In drnffIng fho l9?6 CoyrIghf Acf. And wo corfnInIy
cnnnof dIsrognrd fho oxross 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 Infform` Is . . . n
shnm, n !ubo CoIdborg-IIko confrIvnnco, ovor-
ongInoorod In nn nffomf fo nvoId fho ronch of fho
CoyrIghf Acf. Iof. A. 40n. WIfhouf nddrossIng
fho dIsfrIcf courf`s fncfunI fIndIngs fhnf doscrIbo fho
ncfunI oornfIon of Aoroo`s sysfom, Judgo ChIn In-
sIsfod fhnf Aoroo sfIII Is frnnsmIffIng . . . rogrnm-
mIng 'fo fho ubIIc.` 1J. nf 44n.
IofIfIonors` ofIfIons 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 ofIfIonors` coyrIghfs
undor fho TrnnsmIf CInuso. As bofh courfs boIow
corrocfIy found, n consumor usIng Aoroo`s sysfom
cnfuros n sIgnnI fhrough nn nnfonnn nvnIInbIo onIy
fo n nrfIcuInr usor nnd onnbIos fhnf usor fo mnko nn
IndIvIdunI coy 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 orformnnco fo fho
ubIIc.
!Iko fho dIssonf boIow, ofIfIonors nrguo fhnf fhIs
Courf shouId fronf Aoroo`s sysfom ns nnnIogous fo n
cnbIo sysfom nnd Imoso IInbIIIfy bocnuso cnbIo sys-
foms ongngo In ubIIc orformnnco. Iuf Aoroo Is nof
nnd doos nof oornfo 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 CoyrIghf
Acf, Ifs hIsfory, nnd fho undIsufod fncfunI fIndIngs
nbouf how Aoroo`s fochnoIogy ncfunIIy oornfos ro-
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 CoyrIghf Acf grnnfs fo cronfors fho
oxcIusIvo rIghf, In fho cnso of IIfornry, musIcnI,
drnmnfIc, nnd choroogrnhIc works, nnfomImos,
nnd mofIon Icfuros nnd ofhor nudIovIsunI works, fo
orform fho coyrIghfod work ubIIcIy. l? !.S.C.
l06(4). Tho Acf furfhor socIfIos:
To orform or dIsIny n work ubIIcIy monns


l3
(l) fo orform or dIsIny If nf n Inco oon fo
fho ubIIc or nf nny Inco whoro n subsfnnfInI
numbor of orsons oufsIdo of n normnI cIrcIo of n
fnmIIy nnd Ifs socInI ncqunInfnncos Is gnfhorod;
or
(2) fo frnnsmIf or ofhorwIso communIcnfo n
orformnnco or dIsIny of fho work fo n Inco
socIfIod by cInuso (l) or fo fho ubIIc, by monns
of nny dovIco or rocoss, whofhor fho mombors of
fho ubIIc cnnbIo of rocoIvIng fho orformnnco
or dIsIny rocoIvo If In fho snmo Inco or In son-
rnfo Incos nnd nf fho snmo fImo or nf dIfforonf
fImos.
1J. l0l.
Tho sfnfufo`s foxf fhus IndIcnfos fhnf fo frnnsmIf
. . . n orformnnco . . . of |n] work Is IfsoIf fo or-
form fho work. See 2 MoIvIIIo I. Immor & nvId
Immor, Ainner on Cop,rigl/ 8.l4|I]|l], nf 8-l90
(rov. od. 20l3) (|T]ho ncf of brondcnsfIng n work Is
IfsoIf n orformnnco of fhnf work.). Af fho snmo
fImo, nof ovory frnnsmIssIon Is n puIlic orformnnco:
fhnf doformInnfIon furns on whofhor fho frnnsmIs-
sIon Is mndo fo fho ubIIc.
Tho Socond CIrcuIf corrocfIy ronsonod fhnf,
undor fho forms of fho sfnfufory dofInIfIon, fho
orformnnco fhnf musf bo mndo fo fho ubIIc fo
ImIIcnfo fho oxcIusIvo ubIIc-orformnnco rIghf Is
fho frnnsmIssIon IfsoIf.
5
!ndor fho sfnfufo, |f]o
'frnnsmIf` n orformnnco . . . Is fo communIcnfo If by
nny dovIco or rocoss whoroby Imngos or sounds nro
rocoIvod boyond fho Inco 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 orson, fhon If cIonrIy fnIIs
fo qunIIfy ns 'ubIIc.` ) (omhnsIs nddod).


l4
l? !.S.C. l0l. SocfIon l0l socIfIos fhnf n orfor-
mnnco Is fo fho ubIIc so Iong ns mombors of fho
ubIIc |nro] cnnbIo of rocoIvIng fho orformnnco.
Thnf rovIsIon wouId mnko no sonso If fho orfor-
mnnco In quosfIon woro somo ofhor, undorIyIng
orformnnco rnfhor fhnn fho frnnsmIssIon IfsoIf. In
fhnf cnso, IInbIIIfy couId bo Imosod for uroIy rIvnfo
frnnsmIssIons sImIy bocnuso muIfIIo consumors
onch wnnfod fhoIr own orsonnI coIos of fho snmo
work.
!ndor fho corrocf consfrucfIon of fho sfnfufo, fho
undIsufod fncfs concornIng fho dosIgn nnd oornfIon
of Aoroo`s sysfom forocIoso ofIfIonors` cInIms. A
unIquo coy of n orformnnco of n work, cronfod
nf fho dIrocfIon of fho usor, Is frnnsmIffod onIy by
nnd fo fhnf usor. Thnf frnnsmIssIon fho roIovnnf
orformnnco 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 ubIIc
whofhor fho mombors of fho ubIIc cnnbIo of rocoIv-
Ing fho orformnnco or dIsIny rocoIvo If In fho snmo
Inco or In sonrnfo Incos nnd nf fho snmo fImo or nf
dIfforonf fImos. l? !.S.C. l0l. Tho CoIletieion
courf nofod fhnf fhIs Inngungo hns boon nIIod In
cIrcumsfnncos whoro n dofondnnf hns frnnsmIffod n
sIngIo coy (of, for oxnmIo, n movIo) fo muIfIIo
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 coIos 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 sonrnfo Incos, If cnnnof bo
rocoIvod nf dIfforonf fImos; fhoy furfhor confond
fhnf fho Socond CIrcuIf`s consfrucfIon of fho sfnfufo
fnIIs fo gIvo Indoondonf sIgnIfIcnnco fo fho dIfforonf
fImos Inngungo In fho dofInIfIon. Iuf ofIfIonors`
nrgumonf Ignoros fho dIsfIncfIon fhnf fho sfnfufo drnws
bofwoon boIng cnnbIo 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 ubIIc orformnnco occurs whon
|n] vIdoo Is uIondod |fo n ubIIc wobsIfo] nnd fho
ubIIc bocomos cnnbIo of vIowIng If, ovon If mom-
bors of fho ubIIc ncfunIIy vIow fho vIdoo nf dIfforonf
fImos). Tho dIfforonf fImos Inngungo In fho sfnfufo
sfIII hns n roIo fo Iny.
KE ofhIng In fho IogIsInfIvo hIsfory of fho Coy-
rIghf Acf suorfs IImIfIng Aoroo`s usors` rIghf fo
coy nnd Iny bnck ofIfIonors` ovor-fho-nIr orfor-
mnncos In fhoIr homos usIng romofoIy Iocnfod nnfonnn
nnd V! oquImonf. SocfIon l06(4) of fho CoyrIghf
Acf sfrIkos n bnInnco by rosorvIng fo cronfors fho
oxcIusIvo rIghf fo orform fhoIr works ubIIcIy whIIo
rosorvIng fo nII fho rIghf fo orform works rIvnfoIy.
Tho dofInIfIons In SocfIon l0l IIkowIso rovIdo fhnf
nof nII frnnsmIssIons nro ubIIc orformnncos whon
onIy ono mombor of fho ubIIc Is cnnbIo of rocoIvIng
n nrfIcuInr frnnsmIssIon, fho frnnsmIssIon Is rIvnfo,
nnd nof rosfrIcfod undor fho CoyrIghf Acf.
IofIfIonors` nssorfIon (nf 5-6) fhnf fho roIovnnf
rovIsIons of fho CoyrIghf Acf woro nssod In nrf
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 suorf fhoIr cInIm fhnf Aoroo InfrIngos
fho oxcIusIvo ubIIc-orformnnco rIghf. In bofh Tele-
pronp/er nnd Ior/nigl/l,, fho sysfoms nf Issuo usod
n common nnfonnn fo cnfuro 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 sImIy nof fho wny fhnf
Aoroo`s sysfom oornfos: 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
!oorf roforrIng fo fho JudIcInry CommIffoo`s boIIo|f ]
fhnf cnbIo sysfoms nro commorcInI onforrIsos whoso
bnsIc rofrnnsmIssIon oornfIons nro bnsod on fho
cnrrIngo of coyrIghfod rogrnm mnforInI. H.!. !o.
o. 94-l4?6, nf 89 (l9?6), reprin/eJ in l9?6
!.S.C.C.A.. 5659, 5?04. Iuf fho !oorf Is jusf ns
cIonr fhnf, |n]Ifhough nny ncf by whIch |nn] InIfInI
orformnnco or dIsIny Is frnnsmIffod, roonfod,
or mndo fo rocur wouId IfsoIf bo n 'orformnnco` or
'dIsIny` . . . , If wouId nof bo ncfIonnbIo ns nn InfrIngo-
monf unIoss If woro dono 'ubIIcIy,` ns dofInod In
socfIon l0l. 1J. nf 63, l9?6 !.S.C.C.A.. 56??.
Congross mny woII hnvo nnfIcInfod ndvnncos In
vIdoo dIsfrIbufIon fo fho ubIIc; buf If oqunIIy wouId
hnvo nnfIcInfod ndvnncos In rIvnfo rocofIon of
brondcnsf foIovIsIon.
6
Aoroo rorosonfs fho Inffor,
nof fho formor.

6
Aoroo`s fochnoIogy Is nof, ns ofIfIonors cInIm, InoffIcIonf;
fo fho confrnry, If rovIdos n hIghIy offIcIonf nIfornnfIvo for
consumors who wIsh fo vIow ovor-fho-nIr brondcnsfs wIfhouf fho
cosf nnd InconvonIonco of urchnsIng nnd InsfnIIIng foIovIsIon
sofs, dIgIfnI nnfonnns, nnd V!s In fhoIr homos. See KnnojIn
ocI. 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 V! fhnf onnbIos fho usor
fo rocoIvo nnd coy rogrnmmIng from ovor-fho-nIr
brondcnsfs. Tho Aoroo sysfom rosonds nufomnfIcnIIy
fo usor roquosfs. AccordIngIy, dIrocf IInbIIIfy for
InfrIngomonf cnnnof bo Imosod ngnInsf Aoroo.
AIfhough Aoroo boIIovos no ncfor fhnf usos Ifs sysfom
dIrocfIy InfrIngos, undor Aoroo`s sysfom onIy fho
Aoroo ueer who omIoys Aoroo`s sysfom fo frnnsmIf
brondcnsf rogrnmmIng fo horsoIf couId ossIbIy
InfrIngo dIrocfIy ofIfIonors` coyrIghfs.
DE Tho Aoroo sysfom Is dosIgnod nnd ongInoorod
fo mIrror fho oornfIon of n frndIfIonnI, In-homo
nnfonnn nnd V!, nnd fhus fo nIIow fho usor fo con-
froI ovory nsocf of fho frnnsmIssIon of n brondcnsf
rogrnm. Whon nof In uso, fho nnfonnns housod on
Aoroo`s romIsos nro funod fo n froquoncy wIfhouf
nny brondcnsf sIgnnIs nnd nro fhoroforo IdIo. See
HorowIfz !oorf 58; !IowskI ocI. l4, 36.
Whon n usor Iogs on fo fho sysfom nnd soIocfs n
rogrnm, nn IndIvIdunI nnfonnn Is nufomnfIcnIIy
nssIgnod fo fhnf usor; fhnf nnfonnn fhon nufomnfI-
cnIIy rosonds fo fho usor`s commnnds by oIocfronI-
cnIIy funIng fo fho froquoncy of fho brondcnsf chnn-
noI soIocfod by fho usor. See HorowIfz !oorf 64.
Tho rogrnm 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
!IowskI ocI. l2, l4, 50. And fho usor IIkowIso
hns fho nbIIIfy fo confroI fho Inybnck by nusIng,
rowIndIng, nnd fnsf-forwnrdIng fho rogrnm, ovon If


l8
Infor orfIons of fho rogrnm nro sfIII boIng rocordod.
See HorowIfz !oorf 56.
Thoso undIsufod fncfs mnko cIonr fhnf, If nny
InfrIngomonf Is occurrIng nf nII, If dorIvos from
fho usor`s commnnds fo cnuso Aoroo`s oquImonf fo
oornfo In n nrfIcuInr wny. In fhnf cIrcumsfnnco,
onIy fho usor, nof Aoroo, couId bo dIrocfIy IInbIo for
InfrIngomonf.
IE Tho voIIfIonnI-conducf fosf nrorInfoIy
rofIocfs fho ncfunI oornfIon of Aoroo`s sysfom, whIch
mnkos oquImonf Iocnfod on Aoroo`s romIsos nvnII-
nbIo for cusfomors` uso. If n Inndownor offorod snco
on n hIIIfo whoro IndIvIdunIs couId Inco n convon-
fIonnI nnfonnn, no ono wouId nrguo fhnf fho Innd-
ownor wns ongngod In n ubIIc orformnnco, ovon If
hundrods of IndIvIdunIs Incod IndIvIdunI nnfonnns
fhoro nnd wnfchod fho snmo WorId SorIos gnmo.
Tho ownor of n coIor nvnIInbIo for ubIIc uso Is nof
IInbIo for dIrocf InfrIngomonf whon n cusfomor usos
fho coIor fo roroduco n coy of n ouInr book, ovon
fhough fho ownor mnInfnIns fho coIor, rovIdos
oIocfrIc owor for Ifs oornfIon nnd InsfrucfIons
on fho coIor`s uso, nnd chnrgos n or-ngo foo for
mnkIng fho coIos.
::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
nonIs hns ruIod fo fho confrnry. Ior four ronsons,
howovor, Aoroo novorfhoIoss boIIovos fhnf fho Courf
shouId grnnf fho ofIfIon fo rosoIvo fho Imorfnnf
Issuo of fodornI Inw nf Issuo In fhIs cnso.
Iire/, ofIfIonors hnvo shown ovory InfonfIon of
ursuIng IIfIgnfIon In ovory cIrcuIf In fho nnfIon In


l9
nn offorf fo Imodo consumors` nccoss fo romofo
nnfonnns nnd V!s vIn Aoroo`s fochnoIogy.
?
Tho
nood fo IIfIgnfo muIfIIo cnsos hns nof onIy Imosod n
dIrocf fInnncInI burdon on Aoroo buf nIso cronfod un-
corfnInfy fhnf undormInos Aoroo`s offorfs fo oxnnd
Ifs foofrInf nnd furfhor dovoIo Ifs busInoss. Tho
rIsk of rofrncfod nnd unnocossnry IIfIgnfIon wnr-
rnnfs fhIs Courf`s rosoIvIng fho IognIIfy of Aoroo`s
sysfom nf fho onrIIosf rncfIcnbIo fImo.
SeconJ, ns fho Iond cnso In fho sorIos of InwsuIfs
fIIod by ofIfIonors nnd fhoIr suorfors ngnInsf
Aoroo, fhIs cnso hns n woII-dovoIood fncfunI rocord,
wIfh oxorf roorfs nnd docInrnfIons oxInInIng dIffI-
cuIf fochnIcnI concofs In cIonr forms. Tho dIsfrIcf
courf`s dofnIIod fIndIngs of fncf woro nof chnIIongod
boforo fho courf of nonIs nnd fhoroforo shouId nof
bo subjocf fo dIsufo 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 oxcofIonnI showIng of orror.).
Thnf fncfunI rocord wIII fncIIIfnfo fhIs Courf`s consId-
ornfIon of fho coyrIghf Issuos.

?
IofIfIonors cInIm fhnf fhoy hnvo fnkon fhIs nggrossIvo
nronch 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
CoyrIghf Acf. IofIfIonors hnvo no rIghf fo coIIocf rofrnns-
mIssIon foos from consumors who uso nnfonnns nnd V!s.
Congross socIfIcnIIy donIf wIfh rofrnnsmIssIon rIghfs for cnbIo
foIovIsIon undor sfnfufos sonrnfo from coyrIghf Inw. In nny
ovonf, If fhIs Courf grnnfs corfIornrI, rosondonf rosorvos Ifs
rIghf fo nrguo nbouf why ofIfIonors IncorrocfIy hnvo confondod
fhnf Aoroo`s sorvIco nffocfs fhoIr rofrnnsmIssIon rIghfs.


20
TlirJ, nIfhough fhoro Is no dIvIsIon of nufhorIfy
nmong fho cIrcuIfs nf rosonf, fwo dIsfrIcf courfs
hnvo ruIod In ofIfIonors` fnvor In cnsos InvoIvIng ono
of Aoroo`s urorfod comofIfors.
8
See Iox Teletieion
S/o/ione, 1nc. t. Borr,Driller Con/en/ S,e., PLC, 9l5
I. Su. 2d ll38 (C.. CnI. 20l2), nnd Iox Teletieion
S/o/ione, 1nc. t. IilnOn X LLC, CIvII AcfIon o. l3-
?58 (!MC), 20l3 W! 4?634l4 (..C. Sof. 5, 20l3).
If n cIrcuIf confIIcf woro fo dovoIo ouf of ono of fhoso
cnsos, fho rosuIfIng docIsIon wouId nof rofIocf nonrIy
so dofnIIod n fncfunI rocord ns fhIs cnso.
Thnf dofIcIoncy Is nrfIcuInrIy ncufo In fho
Borr,Driller cnso now undor submIssIon nffor ornI
nrgumonf In fho Infh 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 dIsufo|d] by nrguIng fhnf fhoro nro n numbor
of oIomonfs fhnf nro rosonf In fho Aoroo sysfom
fhnf ofondnnfs hnvo nof IdonfIfIod ns nrf of fhoIr
sysfom. 9l5 I. Su. 2d nf ll40, ll4l n.5, ll43.
Argumonf In fho nonI from fho CnIIfornIn fodornI
courf`s docIsIon wns honrd In Augusf 20l3. Woro
fhnf cnso fo como boforo fhIs Courf, If wouId nof ro-
vIdo nn nrorInfo vohIcIo fo rosoIvo fho Imorfnnf
ubIIc-orformnnco coyrIghf Issuo.

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


2l
Iour/l, fhIs cnso rosonfs buf ono oxnmIo of fho
wny fhnf fnsf, InoxonsIvo communIcnfIons fochnoI-
ogy Is nIIowIng consumors fo onjoy offIcIonfIy doIoyod
funcfIonnIIfIos. Insfond of fhrough nn nnfonnn, V!,
orsonnI comufor, or ofhor dodIcnfod oIocfronIc
oquImonf Iocnfod In fho homo, fhoso now forms of
fochnoIogy oornfo In fho cIoud fhnf Is, fochnoIogy
fhnf Is romofoIy Iocnfod buf rondIIy nccossIbIo nnd
oornfod by fho consumor fhrough nn Infornof-
connocfod dovIco. Tho Socond CIrcuIf`s corrocf Infor-
rofnfIon of fho CoyrIghf Acf In CoIletieion nIIowod
fhoso InnovnfIons n vnsf nrrny of offIcIonf nnd usor-
dIrocfod InformnfIon sforngo nnd communIcnfIon
fochnoIogIos fo fIourIsh In fho nsf fIvo yonrs.
9

IofIfIonors` ronowod offorfs fo forco consumors fo
uso Ioss convonIonf, moro oxonsIvo oquImonf fo
nccomIIsh fho snmo onds ns fhoso now fochnoIogIos
fhronfon fhnf rogross 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
(ov. 4, 20ll), o/ hff://www.nnnIysIsgrou.com/uIondod
IIIos/IubIIshIng/ArfIcIos/!ornor_InII20ll_CoyrIghf_IoIIcy_VC_
Invosfmonfs.df (osfImnfIng $l.3 bIIIIon Invosfmonf In cIoud
comufIng In fho fIrsf fhroo yonrs nffor CoIletieion, growIng
qunrforIy by 40). Indusfry nnnIysfs osfImnfod In 20l2 fhnf
moro fhnn 500 mIIIIon ooIo worIdwIdo sforo confonf usIng
cIoud sorvIcos, eee JngdIsh !oboIIo, Ih.., ISuII Cor. Iross
!oIonso, SuIecrip/ione /o ClouJ S/oroge Serticee /o Ieocl
Holf-Billion Letel Tlie Yeor (Sof. 6, 20l2), o/ hff://www.
IsuII.com/MobIIo-nnd-WIroIoss-CommunIcnfIons/ows/Ingos/
SubscrIfIons-fo-CIoud-Sforngo-SorvIcos-fo-!onch-HnIf-IIIIIon-
!ovoI-ThIs-Yonr.nsx; nnd AIo Comufor nnnouncod In ArII
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 (Ar. 23, 20l3), o/ hff://fochcrunch.com/
20l3/04/23/IcIoud-q2/.


22
fIon.
l0
Insfond of urchnsIng n homo V!, 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 urchnso nccoss fo funcfIonnIIy oquIvnIonf Aoroo
oquImonf for n frncfIon of fhnf cosf. Iocnuso of
rnId fochnoIogIcnI dovoIomonf, fhIs cnso rnIsos nn
Imorfnnf Issuo of Inw fhnf Is boffor rosoIvod by fhIs
Courf now fhnn Infor.
8E AIfhough Aoroo ncquIoscos In ofIfIonors`
roquosf for rovIow, If doos nof ngroo fhnf fho quos-
fIon rosonfod In fho corfIornrI ofIfIon Is roorIy
formuInfod. Thnf quosfIon Is bnsod on fho orronoous
romIso fhnf Aoroo rofrnnsmIfs n brondcnsf fo
fhousnnds of nId subscrIbors. Iof. I. Thnf rom-
Iso Is sImIy fnIso. If fInds no suorf In fho dIsfrIcf
courf`s fIndIngs of fncf, whIch ofIfIonors nro nof froo
fo chnIIongo In fhIs Courf. Tho dIsfrIcf courf oxross-
Iy found fhnf Aoroo`s usors, no/ Aoroo, uso fho sysfom
fo nccoss ovor-fho-nIr brondcnsfs. Iof. A. 62n.
Thnf concIusIon rosfod on fho oxross fIndIng fhnf
onch usor omIoys n sonrnfo, Indoondonf nnfonnn
fo rocoIvo brondcnsf sIgnnIs; fho usor IIkowIso
confroIs fho rocordIng nnd frnnsmIssIon of n unIquo,
IndIvIdunI coy of fhnf rogrnm confonf. 1J. nf 65n-
66n, ?3n. Thnf Is nrf of fho ronson why fho dIsfrIcf
courf found fhnf fho Aoroo sysfom Is n sfrongor cnso
fhnn CoIletieion. 1J. nf 86n.

l0
AIfhough ofIfIonors 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 ofIfIon 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 ofIfIonors cInIm fhnf fhIs cnso wns wrongIy docId-
od bocnuso of nfh doondoncy from fho CoIletieion docIsIon,
Iof. 29.


23
Iurfhormoro, fhoro Is no dIsfrIcf courf fIndIng fhnf
Aoroo ns oosod fo Aoroo`s usors frnnsmIfs nny-
fhIng wIfhIn fho monnIng of fho CoyrIghf 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 rogrnmmIng wIII bo Inyod bnck).
-!=-A/1:!=
Tho ofIfIon for n wrIf of corfIornrI, wIfh fho
QuosfIon Irosonfod ns roformuInfod In fhIs rosonso,
shouId bo grnnfod.


I!IA M. COTTI!
CII!A! CO!SI!
AII! I!OW
II!TY CII!A! CO!SI!
AI!IO, IC.
280 Summor Sfroof
4fh IIoor
Iosfon, MA 022l0
(6l?) 86l-4290

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



ocombor l2, 20l3
!osocffuIIy submIffod,

AVI C. I!II!ICK
Couneel of IecorJ
AA!O M. IAI!
CAIT!I S. HA!!
KI!!OCC, H!II!, HASI,
TO, IVAS & IICI!,
I.!.!.C.
l6l5 M Sfroof, .W.
SuIfo 400
WnshIngfon, .C. 20036
(202) 326-?900
(dfrodorIckkhhfo.com)

SITH . C!IISTII
COSTATII CAO !!I
Ono IrnnkIIn Squnro
l30l K Sfroof, .W.
SuIfo l050 Insf
WnshIngfon, .C. 20005
(202) 204-3500