SONY CORPORATION OF AMERICA ET AL. v. UNIVERSAL CITY STUDIOS, INC., ET
AL.
No. 81-1687
SUPREME COURT OF THE UNITED STATES
464 U.S. 417; 104 S. Ct. 774; 78 L. Ed. 2d 574; 1984 U.S. LEXIS 19; 52 U.S.L.W. 4090; 220
U.S.P.Q. (BNA) 665; 224 U.S.P.Q. (BNA) 736; 55 Rad. Reg. 2d (P & F) 156
January 18, 1983, Argued
January 17, 1984, Decided
SUBSEQUENT HISTORY:
Reargued October 3, 1983. Petition for Rehearing Denied March 19, 1984.
PRIOR HISTORY: CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH
CIRCUIT.
DISPOSITION: 659 F.2d 963, reversed.
DECISION: Sale of home videotape recorders held not to constitute contributory
infringement of television program copyrights.
SUMMARY: Owners of copyrights on television programs sued manufacturers of home
video tape recorders in the United States District Court for the Central District of
California, alleging that some individuals had used the recorders to record some of the
owners' copyrighted works on television, that these individuals had thereby infringed the
copyrights, and that the recorder manufacturers were liable for such infringement because
of their sale of the recorders. The District Court entered judgment for the manufacturers
(480 F Supp 429), but the United States Court of Appeals for the Ninth Circuit reversed,
holding the manufacturers liable for contributory infringement (659 F2d 963).
On certiorari, the United States Supreme Court reversed. In an opinion by Stevens, J.,
expressing the views of Burger, Ch. J., and Brennan, White, and O'Connor, JJ., it was held
that the sale of home video tape recorders to the general public did not constitute
contributory infringement of copyrights on television programs since there was a
significant likelihood that substantial numbers of copyright holders who license their
works for broadcast on free television would not object to having their broadcasts
time-shifted by private viewers and the plaintiff copyright holders did not demonstrate
that time-shifting would cause any likelihood of non-minimal harm to the potential market
for, or the value of, their copyrighted works.
Blackmun, J., joined by Marshall, Powell, and Rehnquist, JJ., dissented, expressing the
view that taping a copyrighted television program is infringement, that time-shifting is
not fair use, and that the recorder manufacturers were guilty of inducing and materially
contributing to the infringement.
JUDGES: STEVENS, J., delivered the opinion of the Court in which BURGER, C. J., and
BRENNAN, WHITE, and O'CONNOR, JJ., joined. BLACKMUN, J., filed a dissenting opinion in
which MARSHALL, POWELL, and REHNQUIST, JJ., joined, post, p. 457.
OPINION: JUSTICE STEVENS delivered the opinion of the Court.
Petitioners manufacture and sell home video tape recorders. Respondents own the copyrights
on some of the television programs that are broadcast on the public airwaves. Some
members of the general public use video tape recorders sold by petitioners to record some
of these broadcasts, as well as a large number of other broadcasts. The question presented
is whether the sale of petitioners' copying equipment to the general public violates any
of the rights conferred upon respondents by the Copyright Act.
Respondents commenced this copyright infringement action against petitioners in the United
States District Court for the Central District of California in 1976. Respondents alleged
that some individuals had used Betamax video tape recorders (VTR's) to record some of
respondents' copyrighted works which had been exhibited on commercially sponsored
television and contended that these individuals had thereby infringed respondents'
copyrights. Respondents further maintained that petitioners were
liable for the copyright infringement allegedly committed by Betamax consumers because of
petitioners' marketing of the Betamax VTR's. n1 Respondents sought no relief against any
Betamax consumer. Instead, they sought money damages and an equitable accounting of
profits from petitioners, as well as an injunction against the manufacture and marketing
of Betamax VTR's.
After a lengthy trial, the District Court denied respondents all the relief they sought
and entered judgment for petitioners. 480 F.Supp. 429 (1979). The United States Court of
Appeals for the Ninth Circuit reversed the District Court's judgment on respondents'
copyright claim, holding petitioners liable for contributory infringement and
ordering the District Court to fashion appropriate relief. 659 F.2d 963 (1981). We granted
certiorari, 457 U.S. 1116 (1982); since we had not completed our study of the case last
Term, we ordered reargument, 463 U.S. 1226 (1983). We now reverse.
An explanation of our rejection of respondents' unprecedented attempt to impose copyright
liability upon the distributors of copying equipment requires a quite detailed recitation
of the findings of the District Court. In summary, those findings reveal that the average
member of the public uses a VTR principally to record a program he cannot view as it is
being televised and then to watch it once at a later time. This practice, known as
"time-shifting," enlarges the television viewing audience. For that reason, a
significant amount of television programming may be used in this manner without objection
from the owners of the copyrights on the programs. For the same reason, even the two
respondents in this case, who do assert objections to time-shifting in this litigation,
were unable to prove that the practice has impaired the commercial value of their
copyrights or has created any likelihood of future harm. Given these findings, there is no
basis in the Copyright Act upon which respondents can hold petitioners liable for
distributing VTR's to the general public. The Court of Appeals' holding that respondents
are entitled to enjoin the distribution of VTR's, to collect royalties on the sale of such
equipment, or to obtain other relief, if affirmed, would enlarge the scope of respondents'
statutory monopolies to encompass control over an article of commerce that is not the
subject of copyright protection. Such an expansion of the copyright privilege is beyond
the limits of the grants authorized by Congress.
I
The two respondents in this action, Universal City Studios, Inc., and Walt Disney
Productions, produce and hold the copyrights on a substantial number of motion pictures
and other audiovisual works. In the current marketplace, they can exploit their rights in
these works in a number of ways: by authorizing theatrical exhibitions, by licensing
limited showings on cable and network television, by selling syndication rights for
repeated airings on local television stations, and by marketing programs on prerecorded
videotapes or videodiscs. Some works are suitable for exploitation through all of these
avenues, while the market for other works is more limited.
Petitioner Sony manufactures millions of Betamax video tape recorders and markets these
devices through numerous retail establishments, some of which are also petitioners in this
action. Sony's Betamax VTR is a mechanism consisting of three basic components: (1) a
tuner, which receives electromagnetic signals transmitted over the television band of the
public airwaves and separates them into audio and visual signals; (2) a recorder, which
records such signals on a magnetic tape; and (3) an adapter, which converts the audio and
visual signals on the tape into a composite signal that can be received by a television
set.
Several capabilities of the machine are noteworthy. The separate tuner in the Betamax
enables it to record a broadcast off one station while the television set is tuned to
another channel, permitting the viewer, for example, to watch two simultaneous news
broadcasts by watching one "live" and recording the other for later viewing.
Tapes may be reused, and programs that have been recorded may be erased either before or
after viewing. A timer in the Betamax can be used to activate and deactivate the equipment
at predetermined times, enabling an intended viewer to record programs that are
transmitted when he or she is not at home. Thus a person may watch a program at home in
the evening even though it was broadcast while the viewer was at work during the
afternoon. The Betamax is also equipped with a pause button and a fast-forward control.
The pause button, when depressed, deactivates the recorder until it is released, thus
enabling a viewer to omit a commercial advertisement from the recording, provided, of
course, that the viewer is present when the program is recorded. The fast-forward control
enables the viewer of a previously recorded program to run the tape rapidly when a segment
he or she does not desire to see is being played back on the television screen.
The respondents and Sony both conducted surveys of the way the Betamax machine was used by
several hundred owners during a sample period in 1978. Although there were some
differences in the surveys, they both showed that the primary use of the machine for most
owners was "time-shifting" -- the practice of recording a program to view it
once at a later time, and thereafter erasing it. Time-shifting enables viewers to see
programs they otherwise would miss because they are not at home, are occupied with other
tasks, or are viewing a program on another station at the time of a broadcast that they
desire to watch. Both surveys also showed, however, that a substantial number of
interviewees had accumulated libraries of tapes. n3 Sony's survey indicated that over 80% of the interviewees watched at least as much regular television as
they had before owning a Betamax. n4 Respondents offered no evidence of decreased
television viewing by Betamax owners. n5
Sony introduced considerable evidence describing television programs that could be copied
without objection from any copyright holder, with special emphasis on sports, religious,
and educational programming. For example, their survey indicated that 7.3% of all Betamax
use is to record sports events, and representatives of professional baseball, football,
basketball, and hockey testified that they had no objection to the recording of their
televised events for home use.
Respondents offered opinion evidence concerning the future impact of the unrestricted sale
of VTR's on the commercial value of their copyrights. The District Court found, however,
that they had failed to prove any likelihood of future harm from the use of VTR's for
time-shifting. 480 F.Supp., at 469.
The District Court's Decision
The lengthy trial of the case in the District Court concerned the private, home use of
VTR's for recording programs broadcast on the public airwaves without charge to the
viewer. No issue concerning the transfer of tapes to other persons, the use of
home-recorded tapes for public performances, or the copying of programs transmitted on pay
or cable television systems was raised. See id., at 432-433, 442.
The District Court concluded that noncommercial home use recording of material broadcast
over the public airwaves was a fair use of copyrighted works and did not constitute
copyright infringement. It emphasized the fact that the material was broadcast free to the
public at large, the noncommercial character of the use, and the private character of the
activity conducted entirely within the home. Moreover, the court found that the purpose of
this use served the public interest in increasing access to television programming, an
interest that "is consistent with the First Amendment policy of providing the fullest
possible access to information through the public airwaves. Columbia Broadcasting
System, Inc. v. Democratic National Committee, 412 U.S. 94, 102." Id.,
at 454. Even when an entire copyrighted work was recorded, the District Court
regarded the copying as fair use "because there is no accompanying reduction in the
market for 'plaintiff's original work.'" Ibid.
As an independent ground of decision, the District Court also concluded that Sony could
not be held liable as a contributory infringer even if the home use of a VTR was
considered an infringing use. The District Court noted that Sony had no direct involvement
with any Betamax purchasers who recorded copyrighted works off the air. Sony's advertising
was silent on the subject of possible copyright infringement, but its instruction booklet
contained the following statement:
"Television programs, films, videotapes and other materials may be copyrighted.
Unauthorized recording of such material may be contrary to the provisions of the United
States copyright laws." Id., at 436.
The District Court assumed that Sony had constructive knowledge of the probability that
the Betamax machine would be used to record copyrighted programs, but found that Sony
merely sold a "product capable of a variety of uses, some of them allegedly
infringing." Id., at 461. It reasoned:
"Selling a staple article of commerce -- e. g., a typewriter, a recorder, a
camera, a photocopying machine -- technically contributes to any infringing use
subsequently made thereof, but this kind of 'contribution,' if deemed sufficient as a
basis for liability, would expand the theory beyond precedent and arguably beyond judicial
management.
. . . .
". . . Commerce would indeed be hampered if manufacturers of staple items were held
liable as contributory infringers whenever they 'constructively' knew that some purchasers
on some occasions would use their product for a purpose which a court later deemed, as a
matter of first impression, to be an infringement." Ibid.
Finally, the District Court discussed the respondents' prayer for injunctive relief,
noting that they had asked for an injunction either preventing the future sale of Betamax
machines, or requiring that the machines be rendered incapable of recording copyrighted
works off the air. The court stated that it had "found no case in which the
manufacturers, distributors, retailers and advertisers of the instrument enabling the
infringement were sued by the copyright holders," and that the request for relief in
this case "is unique." Id., at 465.
It concluded that an injunction was wholly inappropriate because any possible harm to
respondents was outweighed by the fact that "the Betamax could still legally be used
to record noncopyrighted material or material whose owners consented to the copying. An
injunction would deprive the public of the ability to use the Betamax for this
noninfringing off-the-air recording." Id., at 468.
The Court of Appeals' Decision
The Court of Appeals reversed the District Court's judgment on respondents' copyright
claim. It did not set aside any of the District Court's findings of fact. Rather, it
concluded as a matter of law that the home use of a VTR was not a fair use because it was
not a "productive use." It therefore held that it was unnecessary for plaintiffs
to prove any harm to the potential market for the copyrighted works, but then observed
that it seemed clear that the cumulative effect of mass reproduction made possible by
VTR's would tend to diminish the potential market for respondents' works. 659 F.2d, at
974.
On the issue of contributory infringement, the Court of Appeals first rejected the analogy
to staple articles of commerce such as tape recorders or photocopying machines. It noted
that such machines "may have substantial benefit for some purposes" and do not
"even remotely raise copyright problems." Id., at 975. VTR's, however,
are sold "for the primary purpose of reproducing television programming" and
"[virtually] all" such programming is copyrighted material. Ibid. The
Court of Appeals concluded, therefore, that VTR's were not suitable for any substantial
noninfringing use even if some copyright owners elect not to enforce their rights.
The Court of Appeals also rejected the District Court's reliance on Sony's lack of
knowledge that home use constituted infringement. Assuming that the statutory provisions
defining the remedies for infringement applied also to the nonstatutory tort of
contributory infringement, the court stated that a defendant's good faith would merely
reduce his damages liability but would not excuse the infringing conduct. It held that
Sony was chargeable with knowledge of the homeowner's infringing activity because the
reproduction of copyrighted materials was either "the most conspicuous use" or
"the major use" of the Betamax product. Ibid.
On the matter of relief, the Court of Appeals concluded that "statutory damages may
be appropriate" and that the District Court should reconsider its determination that
an injunction would not be an appropriate remedy; and, referring to "the analogous
photocopying area," suggested that a continuing royalty pursuant to a judicially
created compulsory license may very well be an acceptable resolution of the relief
issue. Id., at 976.
II
Article I, § 8, of the Constitution provides:
"The Congress shall have Power . . . To Promote the Progress of Science and useful
Arts, by securing for limited Times to Authors and Inventors the exclusive Right to their
respective Writings and Discoveries."
The monopoly privileges that Congress may authorize are neither unlimited nor primarily
designed to provide a special private benefit. Rather, the limited grant is a means by
which an important public purpose may be achieved. It is intended to motivate the creative
activity of authors and inventors by the provision of a special reward, and to allow the
public access to the products of their genius after the limited period of exclusive
control has expired.
"The copyright law, like the patent statutes, makes reward to the owner a secondary
consideration. In Fox Film Corp. v. Doyal, 286 U.S. 123, 127, Chief Justice
Hughes spoke as follows respecting the copyright monopoly granted by Congress, 'The sole
interest of the United States and the primary object in conferring the monopoly lie in the
general benefits derived by the public from the labors of authors.' It is said that reward
to the author or artist serves to induce release to the public of the products of his
creative genius." United States v. Paramount Pictures, Inc., 334 U.S.
131, 158 (1948).
As the text of the Constitution makes plain, it is Congress that has been assigned the
task of defining the scope of the limited monopoly that should be granted to authors or to
inventors in order to give the public appropriate access to their work product. Because
this task involves a difficult balance between the interests of authors and inventors in
the control and exploitation of their writings and discoveries on the one hand, and
society's competing interest in the free flow of ideas, information, and commerce on the
other hand, our patent and copyright statutes have been amended repeatedly.
[Footnote: In its Report accompanying the comprehensive revision of the Copyright
Act in 1909, the Judiciary Committee of the House of Representatives explained this
balance:
"The enactment of copyright legislation by Congress under the
terms of the Constitution is not based upon any natural right that the author has in his
writings, . . . but upon the ground that the welfare of the public will be served and
progress of science and useful arts will be promoted by securing to authors for limited
periods the exclusive rights to their writings. . . .
"In enacting a copyright law Congress must consider . . . two
questions: First, how much will the legislation stimulate the producer and so benefit the
public; and, second, how much will the monopoly granted be detrimental to the public? The
granting of such exclusive rights, under the proper terms and conditions, confers a
benefit upon the public that outweighs the evils of the temporary monopoly." H. R.
Rep. No. 2222, 60th Cong., 2d Sess., 7 (1909).]
From its beginning, the law of copyright has developed in response to significant changes
in technology. Indeed, it was the invention of a new form of copying equipment -- the
printing press -- that gave rise to the original need for copyright protection.
Repeatedly, as new developments have occurred in this country, it has been the Congress
that has fashioned the new rules that new technology made necessary. Thus, long before the
enactment of the Copyright Act of 1909, 35 Stat. 1075, it was settled that the protection
given to copyrights is wholly statutory. Wheaton v. Peters, 8 Pet. 591,
661-662 (1834). The remedies for infringement "are only those prescribed by
Congress." Thompson v. Hubbard, 131 U.S. 123, 151 (1889).
The judiciary's reluctance to expand the protections afforded by the copyright without
explicit legislative guidance is a recurring theme. .... Sound policy, as well as history,
supports our consistent deference to Congress when major technological innovations alter
the market for copyrighted materials. Congress has the constitutional authority and the
institutional ability to accommodate fully the varied permutations of competing interests
that are inevitably implicated by such new technology.
In a case like this, in which Congress has not plainly marked our course, we must be
circumspect in construing the scope of rights created by a legislative enactment which
never contemplated such a calculus of interests. In doing so, we are guided by Justice
Stewart's exposition of the correct approach to ambiguities in the law of copyright:
"The limited scope of the copyright holder's statutory monopoly, like the limited
copyright duration required by the Constitution, reflects a balance of competing claims
upon the public interest: Creative work is to be encouraged and rewarded, but private
motivation must ultimately serve the cause of promoting broad public availability of
literature, music, and the other arts. The immediate effect of our copyright law is to
secure a fair return for an 'author's' creative labor. But the ultimate aim is, by this
incentive, to stimulate artistic creativity for the general public good. 'The sole
interest of the United States and the primary object in conferring the monopoly,' this
Court has said, 'lie in the general benefits derived by the public from the labors of
authors.' Fox Film Corp. v. Doyal, 286 U.S. 123, 127. .... When
technological change has rendered its literal terms ambiguous, the Copyright Act must be
construed in light of this basic purpose." Twentieth Century Music Corp. v. Aiken,
422 U.S. 151, 156 (1975) (footnotes omitted).
Copyright protection "subsists . . . in original works of authorship fixed in any
tangible medium of expression." 17 U. S. C. § 102(a) (1982 ed.). This protection has
never accorded the copyright owner complete control over all possible uses of his work.
Rather, the Copyright Act grants the copyright holder "exclusive" rights to use
and to authorize the use of his work in five qualified ways, including reproduction of the
copyrighted work in copies. § 106. All reproductions of the work, however, are not within
the exclusive domain of the copyright owner; some are in the public domain. Any individual
may reproduce a copyrighted work for a "fair use"; the copyright owner does not
possess the exclusive right to such a use. Compare § 106 with § 107.
[Footnote: Section 106 provides: "Subject to sections 107
through 118, the owner of copyright under this title has the exclusive rights to do and to
authorize any of the following:
"(1) to reproduce the copyrighted work in copies or phonorecords;
"(2) to prepare derivative works based upon the copyrighted work;
"(3) to distribute copies or phonorecords of the copyrighted work
to the public by sale or other transfer of ownership, or by rental, lease, or lending;
"(4) in the case of literary, musical, dramatic, and choreographic
works, pantomimes, and motion pictures and other audiovisual works, to perform the
copyrighted work publicly; and
"(5) in the case of literary, musical, dramatic, and choreographic
works, pantomimes, and pictorial, graphic, or sculptural works, including the individual
images of a motion picture or other audiovisual work, to display the copyrighted work
publicly."
Section 107 provides: "Notwithstanding the provisions of
section 106, the fair use of a copyrighted work, including such use by reproduction in
copies or phonorecords or by any other means specified by that section, for purposes such
as criticism, comment, news reporting, teaching (including multiple copies for classroom
use), scholarship, or research, is not an infringement of copyright. In determining
whether the use made of a work in any particular case is a fair use the factors to be
considered shall include --
"(1) the purpose and character of the use, including whether such
use is of a commercial nature or is for nonprofit educational purposes;
"(2) the nature of the copyrighted work;
"(3) the amount and substantiality of the portion used in relation
to the copyrighted work as a whole; and
"(4) the effect of the use upon the potential market for or value
of the copyrighted work."
Section 101 makes it clear that the four factors listed in this section are
"illustrative and not limitative."]
"Anyone who violates any of the exclusive rights of the copyright
owner," that is, anyone who trespasses into his exclusive domain by using or
authorizing the use of the copyrighted work in one of the five ways set forth in the
statute, "is an infringer of the copyright." § 501(a). Conversely, anyone who
is authorized by the copyright owner to use the copyrighted work in a way specified in the
statute or who makes a fair use of the work is not an infringer of the copyright with
respect to such use.
The Copyright Act provides the owner of a copyright with a potent arsenal of remedies
against an infringer of his work, including an injunction to restrain the infringer from
violating his rights, the impoundment and destruction of all reproductions of his work
made in violation of his rights, a recovery of his actual damages and any additional
profits realized by the infringer or a recovery of statutory damages, and attorney's fees.
§§ 502-505. n15
The two respondents in this case do not seek relief against the Betamax users who have
allegedly infringed their copyrights. Moreover, this is not a class action on behalf of
all copyright owners who license their works for television broadcast, and respondents
have no right to invoke whatever rights other copyright holders may have to bring
infringement actions based on Betamax copying of their works. As was made clear by their
own evidence, the copying of the respondents' programs represents a small portion of the
total use of VTR's. It is, however, the taping of respondents' own copyrighted programs
that provides them with standing to charge Sony with contributory infringement. To
prevail, they have the burden of proving that users of the Betamax have infringed their
copyrights and that Sony should be held responsible for that infringement.
III
The Copyright Act does not expressly render anyone liable for infringement committed by
another. In contrast, the Patent Act expressly brands anyone who "actively induces
infringement of a patent" as an infringer, 35 U. S. C. § 271(b), and further imposes
liability on certain individuals labeled "contributory" infringers, § 271(c).
The absence of such express language in the copyright statute does not preclude the
imposition of liability for copyright infringements on certain parties who have not
themselves engaged in the infringing activity. For vicarious liability is imposed in
virtually all areas of the law, and the concept of contributory infringement is merely a
species of the broader problem of identifying the circumstances in which it is just to
hold one individual accountable for the actions of another.
Such circumstances were plainly present in Kalem Co. v. Harper Brothers, 222
U.S. 55 (1911), the copyright decision of this Court on which respondents place their
principal reliance. In Kalem, the Court held that the producer of an unauthorized
film dramatization of the copyrighted book Ben Hur was liable for his sale of the motion
picture to jobbers, who in turn arranged for the commercial exhibition of the film.
Justice Holmes, writing for the Court, explained:
"The defendant not only expected but invoked by advertisement the use of its films
for dramatic reproduction of the story. That was the most conspicuous purpose for which
they could be used, and the one for which especially they were made. If the defendant did
not contribute to the infringement it is impossible to do so except by taking part in the
final act. It is liable on principles recognized in every part of the law." Id.,
at 62-63.
The use for which the item sold in Kalem had been "especially" made was,
of course, to display the performance that had already been recorded upon it. The producer
had personally appropriated the copyright owner's protected work and, as the owner of the
tangible medium of expression upon which the protected work was recorded, authorized that
use by his sale of the film to jobbers. But that use of the film was not his to authorize:
the copyright owner possessed the exclusive right to authorize public performances of his
work. Further, the producer personally advertised the unauthorized public performances,
dispelling any possible doubt as to the use of the film which he had authorized.
Respondents argue that Kalem stands for the proposition that supplying the
"means" to accomplish an infringing activity and encouraging that activity
through advertisement are sufficient to establish liability for copyright infringement.
This argument rests on a gross generalization that cannot withstand scrutiny. The producer
in Kalem did not merely provide the "means" to accomplish an infringing
activity; the producer supplied the work itself, albeit in a new medium of expression.
Sony in the instant case does not supply Betamax consumers with respondents' works;
respondents do. Sony supplies a piece of equipment that is generally capable of copying
the entire range of programs that may be televised: those that are uncopyrighted, those
that are copyrighted but may be copied without objection from the copyright holder, and
those that the copyright holder would prefer not to have copied. The Betamax can be used
to make authorized or unauthorized uses of copyrighted works, but the range of its
potential use is much broader than the particular infringing use of the film Ben Hur
involved in Kalem. Kalem does not support respondents' novel theory of liability.
Justice Holmes stated that the producer had "contributed" to the infringement of
the copyright, and the label "contributory infringement" has been applied in a
number of lower court copyright cases involving an ongoing relationship between the direct
infringer and the contributory infringer at the time the infringing conduct occurred. In
such cases, as in other situations in which the imposition of vicarious liability is
manifestly just, the "contributory" infringer was in a position to control the
use of copyrighted works by others and had authorized the use without permission from the
copyright owner. This case, however, plainly does not fall in that category. The
only contact between Sony and the users of the Betamax that is disclosed by this record
occurred at the moment of sale. The District Court expressly found that "no employee
of Sony, Sonam or DDBI had either direct involvement with the allegedly infringing
activity or direct contact with purchasers of Betamax who recorded copyrighted works
off-the-air." 480 F.Supp., at 460. And it further found that "there was no
evidence that any of the copies made by Griffiths or the other individual witnesses in
this suit were influenced or encouraged by [Sony's] advertisements." Ibid.
If vicarious liability is to be imposed on Sony in this case, it must rest on the fact
that it has sold equipment with constructive knowledge of the fact that its customers may
use that equipment to make unauthorized copies of copyrighted material. There is no
precedent in the law of copyright for the imposition of vicarious liability on such a
theory. The closest analogy is provided by the patent law cases to which it is appropriate
to refer because of the historic kinship between patent law and copyright law.
In the Patent Act both the concept of infringement and the concept of contributory
infringement are expressly defined by statute. The prohibition against contributory
infringement is confined to the knowing sale of a component especially made for use in
connection with a particular patent. There is no suggestion in the statute that one
patentee may object to the sale of a product that might be used in connection with other
patents. Moreover, the Act expressly provides that the sale of a "staple article or
commodity of commerce suitable for substantial noninfringing use" is not contributory
infringement. 35 U. S. C. § 271(c).
When a charge of contributory infringement is predicated entirely on the sale of an
article of commerce that is used by the purchaser to infringe a patent, the public
interest in access to that article of commerce is necessarily implicated. A finding of
contributory infringement does not, of course, remove the article from the market
altogether; it does, however, give the patentee effective control over the sale of that
item. Indeed, a finding of contributory infringement is normally the functional equivalent
of holding that the disputed article is within the monopoly granted to the patentee.
For that reason, in contributory infringement cases arising under the patent laws the
Court has always recognized the critical importance of not allowing the patentee to extend
his monopoly beyond the limits of his specific grant. These cases deny the patentee any
right to control the distribution of unpatented articles unless they are "unsuited
for any commercial noninfringing use." Dawson Chemical Co. v. Rohm &
Hass Co., 448 U.S. 176, 198 (1980). Unless a commodity "has no use except through
practice of the patented method," id., at 199, the patentee has no right to
claim that its distribution constitutes contributory infringement. "To form the basis
for contributory infringement the item must almost be uniquely suited as a component of
the patented invention." P. Rosenberg, Patent Law Fundamentals § 17.02[2] (2d ed.
1982). "[A] sale of an article which though adapted to an infringing use is also
adapted to other and lawful uses, is not enough to make the seller a contributory
infringer. Such a rule would block the wheels of commerce." ...
We recognize there are substantial differences between the patent and copyright laws. But
in both areas the contributory infringement doctrine is grounded on the recognition that
adequate protection of a monopoly may require the courts to look beyond actual duplication
of a device or publication to the products or activities that make such duplication
possible. The staple article of commerce doctrine must strike a balance between a
copyright holder's legitimate demand for effective -- not merely symbolic -- protection of
the statutory monopoly, and the rights of others freely to engage in substantially
unrelated areas of commerce. Accordingly, the sale of copying equipment, like the sale of
other articles of commerce, does not constitute contributory infringement if the product
is widely used for legitimate, unobjectionable purposes. Indeed, it need merely be capable
of substantial noninfringing uses.
IV
The question is thus whether the Betamax is capable of commercially significant
noninfringing uses. In order to resolve that question, we need not explore all the
different potential uses of the machine and determine whether or not they would constitute
infringement. Rather, we need only consider whether on the basis of the facts as found by
the District Court a significant number of them would be noninfringing. Moreover, in order
to resolve this case we need not give precise content to the question of how much use is
commercially significant. For one potential use of the Betamax plainly satisfies this
standard, however it is understood: private, noncommercial time-shifting in the home. It
does so both (A) because respondents have no right to prevent other copyright holders from
authorizing it for their programs, and (B) because the District Court's factual findings
reveal that even the unauthorized home time-shifting of respondents' programs is
legitimate fair use.
A. Authorized Time-Shifting
Each of the respondents owns a large inventory of valuable copyrights, but in the total
spectrum of television programming their combined market share is small. The exact
percentage is not specified, but it is well below 10%. If they were to prevail, the
outcome of this litigation would have a significant impact on both the producers and the
viewers of the remaining 90% of the programming in the Nation. No doubt, many other
producers share respondents' concern about the possible consequences of unrestricted
copying. Nevertheless the findings of the District Court make it clear that time-shifting
may enlarge the total viewing audience and that many producers are willing to allow
private time-shifting to continue, at least for an experimental time period.
The District Court found:
"Even if it were deemed that home-use recording of copyrighted material constituted
infringement, the Betamax could still legally be used to record noncopyrighted material or
material whose owners consented to the copying. An injunction would deprive the public of
the ability to use the Betamax for this noninfringing off-the-air recording.
"Defendants introduced considerable testimony at trial about the potential for such
copying of sports, religious, educational and other programming. This included testimony
from representatives of the Offices of the Commissioners of the National Football,
Basketball, Baseball and Hockey Leagues and Associations, the Executive Director of
National Religious Broadcasters and various educational communications agencies.
Plaintiffs attack the weight of the testimony offered and also contend that an injunction
is warranted because infringing uses outweigh noninfringing uses.
"Whatever the future percentage of legal versus illegal home-use recording might be,
an injunction which seeks to deprive the public of the very tool or article of commerce
capable of some noninfringing use would be an extremely harsh remedy, as well as one
unprecedented in copyright law." 480 F.Supp., at 468.
Although the District Court made these statements in the context of considering the
propriety of injunctive relief, the statements constitute a finding that the evidence
concerning "sports, religious, educational and other programming" was sufficient
to establish a significant quantity of broadcasting whose copying is now authorized, and a
significant potential for future authorized copying. That finding is amply supported by
the record. In addition to the religious and sports officials identified explicitly by the
District Court, two items in the record deserve specific mention.
First is the testimony of John Kenaston, the station manager of Channel 58, an educational
station in Los Angeles affiliated with the Public Broadcasting Service. He explained and
authenticated the station's published guide to its programs. For each program, the guide
tells whether unlimited home taping is authorized, home taping is authorized subject to
certain restrictions (such as erasure within seven days), or home taping is not authorized
at all. The Spring 1978 edition of the guide described 107 programs. Sixty-two of those
programs or 58% authorize some home taping. Twenty-one of them or almost 20% authorize
unrestricted home taping.
Second is the testimony of Fred Rogers, president of the corporation that produces and
owns the copyright on Mister Rogers' Neighborhood. The program is carried by more public
television stations than any other program. Its audience numbers over 3,000,000 families a
day. He testified that he had absolutely no objection to home taping for noncommercial use
and expressed the opinion that it is a real service to families to be able to record
children's programs and to show them at appropriate times.
If there are millions of owners of VTR's who make copies of televised sports events,
religious broadcasts, and educational programs such as Mister Rogers' Neighborhood, and if
the proprietors of those programs welcome the practice, the business of supplying the
equipment that makes such copying feasible should not be stifled simply because the
equipment is used by some individuals to make unauthorized reproductions of respondents'
works. The respondents do not represent a class composed of all copyright holders. Yet a
finding of contributory infringement would inevitably frustrate the interests of
broadcasters in reaching the portion of their audience that is available only through
time-shifting.
Of course, the fact that other copyright holders may welcome the practice of time-shifting
does not mean that respondents should be deemed to have granted a license to copy their
programs. Third-party conduct would be wholly irrelevant in an action for direct
infringement of respondents' copyrights. But in an action for contributory
infringement against the seller of copying equipment, the copyright holder may not prevail
unless the relief that he seeks affects only his programs, or unless he speaks for
virtually all copyright holders with an interest in the outcome. In this case, the record
makes it perfectly clear that there are many important producers of national and local
television programs who find nothing objectionable about the enlargement in the size of
the television audience that results from the practice of time-shifting for private home
use. The seller of the equipment that expands those producers' audiences cannot be a
contributory infringer if, as is true in this case, it has had no direct involvement with
any infringing activity.
B. Unauthorized Time-Shifting
Even unauthorized uses of a copyrighted work are not necessarily infringing. An unlicensed
use of the copyright is not an infringement unless it conflicts with one of the specific
exclusive rights conferred by the copyright statute. Twentieth Century Music Corp.
v. Aiken, 422 U.S., at 154-155. Moreover, the definition of exclusive rights in §
106 of the present Act is prefaced by the words "subject to sections 107 through
118." Those sections describe a variety of uses of copyrighted material that
"are not infringements of copyright" "notwithstanding the provisions of
section 106." The most pertinent in this case is § 107, the legislative endorsement
of the doctrine of "fair use."
That section identifies various factors that enable a court to apply an "equitable
rule of reason" analysis to particular claims of infringement. Although not
conclusive, the first factor requires that "the commercial or nonprofit character of
an activity" be weighed in any fair use decision. If the Betamax were used to make
copies for a commercial or profit-making purpose, such use would presumptively be unfair.
The contrary presumption is appropriate here, however, because the District Court's
findings plainly establish that time-shifting for private home use must be characterized
as a noncommercial, nonprofit activity. Moreover, when one considers the nature of a
televised copyrighted audiovisual work, see 17 U. S. C. § 107(2) (1982 ed.), and that
time-shifting merely enables a viewer to see such a work which he had been invited to
witness in its entirety free of charge, the fact that the entire work is reproduced, see
§ 107(3), does not have its ordinary effect of militating against a finding of fair use.
This is not, however, the end of the inquiry because Congress has also directed us to
consider "the effect of the use upon the potential market for or value of the
copyrighted work." § 107(4). The purpose of copyright is to create incentives for
creative effort. Even copying for noncommercial purposes may impair the copyright holder's
ability to obtain the rewards that Congress intended him to have. But a use that has no
demonstrable effect upon the potential market for, or the value of, the copyrighted work
need not be prohibited in order to protect the author's incentive to create. The
prohibition of such noncommercial uses would merely inhibit access to ideas without any
countervailing benefit.
Thus, although every commercial use of copyrighted material is presumptively an unfair
exploitation of the monopoly privilege that belongs to the owner of the copyright,
noncommercial uses are a different matter. A challenge to a noncommercial use of a
copyrighted work requires proof either that the particular use is harmful, or that if it
should become widespread, it would adversely affect the potential market for the
copyrighted work. Actual present harm need not be shown; such a requirement would leave
the copyright holder with no defense against predictable damage. Nor is it necessary to
show with certainty that future harm will result. What is necessary is a showing by a
preponderance of the evidence that some meaningful likelihood of future harm
exists. If the intended use is for commercial gain, that likelihood may be presumed. But
if it is for a noncommercial purpose, the likelihood must be demonstrated.
In this case, respondents failed to carry their burden with regard to home time-shifting.
The District Court described respondents' evidence as follows:
"Plaintiffs' experts admitted at several points in the trial that the time-shifting
without librarying would result in 'not a great deal of harm.' Plaintiffs' greatest
concern about time-shifting is with 'a point of important philosophy that transcends even
commercial judgment.' They fear that with any Betamax usage, 'invisible boundaries' are
passed: 'the copyright owner has lost control over his program.'" 480 F.Supp., at
467.
Later in its opinion, the District Court observed:
"Most of plaintiffs' predictions of harm hinge on speculation about audience viewing
patterns and ratings, a measurement system which Sidney Sheinberg, MCA's president, calls
a 'black art' because of the significant level of imprecision involved in the
calculations." Id., at 469. n35
There was no need for the District Court to say much about past harm. "Plaintiffs
have admitted that no actual harm to their copyrights has occurred to date." Id.,
at 451.
On the question of potential future harm from time-shifting, the District Court offered a
more detailed analysis of the evidence. It rejected respondents' "fear that persons
'watching' the original telecast of a program will not be measured in the live audience
and the ratings and revenues will decrease," by observing that current measurement
technology allows the Betamax audience to be reflected. Id., at 466. It rejected
respondents' prediction "that live television or movie audiences will decrease as
more people watch Betamax tapes as an alternative," with the observation that
"[there] is no factual basis for [the underlying] assumption." Ibid. It
rejected respondents' "fear that time-shifting will reduce audiences for telecast
reruns," and concluded instead that "given current market practices, this should
aid plaintiffs rather than harm them." Ibid. And it declared that respondents'
suggestion that "theater or film rental exhibition of a program will suffer because
of time-shift recording of that program" "lacks merit." Id., at 467.
After completing that review, the District Court restated its overall conclusion several
times, in several different ways. "Harm from time-shifting is speculative and, at
best, minimal." Ibid. "The audience benefits from the time-shifting
capability have already been discussed. It is not implausible that benefits could also
accrue to plaintiffs, broadcasters, and advertisers, as the Betamax makes it possible for
more persons to view their broadcasts." Ibid. "No likelihood of harm was
shown at trial, and plaintiffs admitted that there had been no actual harm to date." Id.,
at 468-469. "Testimony at trial suggested that Betamax may require adjustments in
marketing strategy, but it did not establish even a likelihood of harm." Id.,
at 469. "Television production by plaintiffs today is more profitable than it has
ever been, and, in five weeks of trial, there was no concrete evidence to suggest that the
Betamax will change the studios' financial picture." Ibid.
The District Court's conclusions are buttressed by the fact that to the extent
time-shifting expands public access to freely broadcast television programs, it yields
societal benefits. In Community Television of Southern California v. Gottfried,
459 U.S. 498, 508, n. 12 (1983), we acknowledged the public interest in making television
broadcasting more available. Concededly, that interest is not unlimited. But it supports
an interpretation of the concept of "fair use" that requires the copyright
holder to demonstrate some likelihood of harm before he may condemn a private act of
time-shifting as a violation of federal law.
When these factors are all weighed in the "equitable rule of reason" balance, we
must conclude that this record amply supports the District Court's conclusion that home
time-shifting is fair use. In light of the findings of the District Court regarding the
state of the empirical data, it is clear that the Court of Appeals erred in holding that
the statute as presently written bars such conduct.
In summary, the record and findings of the District Court lead us to two conclusions.
First, Sony demonstrated a significant likelihood that substantial numbers of copyright
holders who license their works for broadcast on free television would not object to
having their broadcasts time-shifted by private viewers. And second, respondents failed to
demonstrate that time-shifting would cause any likelihood of nonminimal harm to the
potential market for, or the value of, their copyrighted works. The Betamax is, therefore,
capable of substantial noninfringing uses. Sony's sale of such equipment to the general
public does not constitute contributory infringement of respondents' copyrights.
V
"The direction of Art. I is that Congress shall have the power to promote the
progress of science and the useful arts. When, as here, the Constitution is permissive,
the sign of how far Congress has chosen to go can come only from Congress." Deepsouth
Packing Co. v. Laitram Corp., 406 U.S. 518, 530 (1972).
One may search the Copyright Act in vain for any sign that the elected representatives of
the millions of people who watch television every day have made it unlawful to copy a
program for later viewing at home, or have enacted a flat prohibition against the sale of
machines that make such copying possible.
It may well be that Congress will take a fresh look at this new technology, just as it so
often has examined other innovations in the past. But it is not our job to apply laws that
have not yet been written. Applying the copyright statute, as it now reads, to the facts
as they have been developed in this case, the judgment of the Court of Appeals must be
reversed.
It is so ordered.
DISSENT: JUSTICE BLACKMUN, with whom JUSTICE MARSHALL, JUSTICE POWELL, and JUSTICE
REHNQUIST join, dissenting.
A restatement of the facts and judicial history of this case is necessary, in my view, for
a proper focus upon the issues. Respondents' position is hardly so
"unprecedented," ante, at 421, in the copyright law, nor does it really
embody a "gross generalization," ante, at 436, or a "novel theory of
liability," ante, at 437, and the like, as the Court, in belittling their
claims, describes the efforts of respondents.
I
... Our task ... is to resolve these [copyright] issues as
best we can in the light of ill-fitting existing copyright law.
It is no answer, of course, to refer to and stress, as the Court does, this Court's
"consistent deference to Congress" whenever "major technological
innovations" appear. Ante, at 431. Perhaps a better and more accurate
description is that the Court has tended to evade the hard issues when they arise in the
area of copyright law. I see no reason for the Court to be particularly pleased with this
tradition or to continue it....
II
... Two kinds of
Betamax usage are at issue here. The first is "time-shifting," whereby the user
records a program in order to watch it at a later time, and then records over it, and
thereby erases the program, after a single viewing. The second is
"library-building," in which the user records a program in order to keep it for
repeated viewing over a longer term. Sony's advertisements, at various times, have
suggested that Betamax users "record favorite shows" or "build a
library." Sony's Betamax advertising has never contained warnings about copyright
infringement, although a warning does appear in the Betamax operating instructions.
... The Court of Appeals remanded
the case to the District Court for appropriate relief; it suggested that the District
Court could consider the award of damages or a continuing royalty in lieu of an
injunction. Id., at 976.
III
Although the word "copies" is in the plural in § 106(1), there can be no
question that under the Act the making of even a single unauthorized copy is prohibited.
The Senate and House Reports explain: "The references to 'copies or phonorecords,'
although in the plural, are intended here and throughout the bill to include the singular
(1 U. S. C. § 1)." ... The Reports then describe the reproduction right established
by § 106(1):
"[The] right 'to reproduce the copyrighted work in copies or phonorecords' means the
right to produce a material object in which the work is duplicated, transcribed, imitated,
or simulated in a fixed form from which it can be 'perceived, reproduced, or otherwise
communicated, either directly or with the aid of a machine or device.' As under the
present law, a copyrighted work would be infringed by reproducing it in whole or in any
substantial part, and by duplicating it exactly or by imitation or simulation." 1975
Senate Report 58; 1976 House Report 61.
The making of even a single videotape recording at home falls within this definition; the
VTR user produces a material object from which the copyrighted work later can be
perceived. Unless Congress intended a special exemption for the making of a single copy
for personal use, I must conclude that VTR recording is contrary to the exclusive rights
granted by § 106(1).
... [I]t appears that Congress considered and rejected the very possibility of a special
private use exemption....
When Congress intended special and protective treatment for private use, ... it said
so explicitly. One such explicit statement appears in § 106 itself. The copyright owner's
exclusive right to perform a copyrighted work, in contrast to his right to
reproduce the work in copies, is limited. Section 106(4) grants a copyright owner the
exclusive right to perform the work "publicly," but does not afford the owner
protection with respect to private performances by others. A motion picture is
"performed" whenever its images are shown or its sounds are made audible. §
101. Like "[singing] [*469] a copyrighted lyric in the shower," Twentieth
Century Music Corp. v. Aiken, 422 U.S. 151, 155 (1975), watching television at
home with one's family and friends is now considered a performance. ... Home television
viewing nevertheless does not infringe any copyright -- but only because § 106(4)
contains the word "publicly." ... No such distinction between public and private
uses appears in § 106(1)'s prohibition on the making of copies.
Similarly, an explicit reference to private use appears in § 108. Under that section, a
library can make a copy for a patron only for specific types of private use: "private
study, scholarship, or research." §§ 108(d)(1) and (e)(1); see 37 CFR § 201.14(b)
(1983). Limits also are imposed on the extent of the copying and the type of institution
that may make copies, and the exemption expressly is made inapplicable to motion pictures
and certain other types of works. § 108(h). These limitations would be wholly superfluous
if an entire copy of any work could be made by any person for private use....
IV
Fair Use
The doctrine of fair use has been called, with some justification, "the most
troublesome in the whole law of copyright." ... Although courts have constructed
lists of factors to be considered in determining whether a particular use is fair, no
fixed criteria have emerged by which that determination can be made. This Court thus far
has provided no guidance; although fair use issues have come here twice, on each occasion
the Court was equally divided and no opinion was forthcoming. ...
Nor did Congress provide definitive rules when it codified the fair use doctrine in the
1976 Act; it simply incorporated a list of factors "to be considered": the
"purpose and character of the use," the "nature of the copyrighted
work," the "amount and substantiality of the portion used," and, perhaps
the most important, the "effect of the use upon the potential market for or
value of the copyrighted work" (emphasis supplied). § 107. No particular weight,
however, was assigned to any of these, and the list was not intended to be exclusive. The
House and Senate Reports explain that § 107 does no more than give "statutory
recognition" to the fair use doctrine; it was intended "to restate the present
judicial doctrine of fair use, not to change, narrow, or enlarge it in any way." ....
A
The making of a videotape recording for home viewing is an ordinary rather than a
productive use of the Studios' copyrighted works. The District Court found that
"Betamax owners use the copy for the same purpose as the original. They add nothing
of their own." 480 F.Supp., at 453. Although applying the fair use doctrine to home
VTR recording, as Sony argues, may increase public access to material broadcast free over
the public airwaves, I think Sony's argument misconceives the nature of copyright.
Copyright gives the author a right to limit or even to cut off access to his work. Fox
Film Corp. v. Doyal, 286 U.S., at 127. A VTR recording creates no public
benefit sufficient to justify limiting this right. Nor is this right extinguished by the
copyright owner's choice to make the work available over the airwaves. Section 106 of the
1976 Act grants the copyright owner the exclusive right to control the performance and the
reproduction of his work, and the fact that he has licensed a single television
performance is really irrelevant to the existence of his right to control its
reproduction. Although a television broadcast may be free to the viewer, this fact is
equally irrelevant; a book borrowed from the public library may not be copied any more
freely than a book that is purchased.
It may be tempting, as, in my view, the Court today is tempted, to stretch the doctrine of
fair use so as to permit unfettered use of this new technology in order to increase access
to television programming. But such an extension risks eroding the very basis of copyright
law, by depriving authors of control over their works and consequently of their incentive
to create. Even in the context of highly productive educational uses, Congress has avoided
this temptation; in passing the 1976 Act, Congress made it clear that off-the-air
videotaping was to be permitted only in very limited situations. See 1976 House Report 71;
1975 Senate Report 64. And, the Senate Report adds, "[the] committee does not intend
to suggest . . . that off-the-air recording for convenience would under any circumstances,
be considered 'fair use.'" Id., at 66. I cannot disregard these admonitions.
B
I recognize, nevertheless, that there are situations where permitting even an unproductive
use would have no effect on the author's incentive to create, that is, where the use would
not affect the value of, or the market for, the author's work. Photocopying an old
newspaper clipping to send to a friend may be an example; pinning a quotation on one's
bulletin board may be another. In each of these cases, the effect on the author is truly de
minimis. Thus, even though these uses provide no benefit to the public at large, no
purpose is served by preserving the author's monopoly, and the use may be regarded as
fair.
Courts should move with caution, however, in depriving authors of protection from
unproductive "ordinary" uses. As has been noted above, even in the case of a
productive use, § 107(4) requires consideration of "the effect of the use upon the potential
market for or value of the copyrighted work" (emphasis added).... "[A] particular
use which may seem to have little or no economic impact on the author's rights today can
assume tremendous importance in times to come." ...
The Studios have identified a number of ways in which VTR recording could damage their
copyrights. VTR recording could reduce their ability to market their works in movie
theaters and through the rental or sale of prerecorded videotapes or videodiscs; it also
could reduce their rerun audience, and consequently the license fees available to them for
repeated showings. Moreover, advertisers may be willing to pay for only "live"
viewing audiences, if they believe VTR viewers will delete commercials or if rating
services are unable to measure VTR use; if this is the case, VTR recording could reduce
the license fees the Studios are able to charge even for first-run showings.
Library-building may raise the potential for each of the types of harm identified by the
Studios, and time-shifting may raise the potential for substantial harm as well.
Although the District Court found no likelihood of harm from VTR use, 480 F.Supp., at 468,
I conclude that it applied an incorrect substantive standard and misallocated the burden
of proof.... Because the Studios' prediction of harm was "based on so many assumptions and
on a system of marketing which is rapidly changing," the court was "hesitant to
identify 'probable effects' of home-use copying." Ibid.
The District Court's reluctance to engage in prediction in this area is understandable,
but, in my view, the court was mistaken in concluding that the Studios should bear the
risk created by this uncertainty.... The Studios have demonstrated a potential for harm,
which has not been, and could not be, refuted at this early stage of technological
development....
It is ... apparent from the record and from the findings of the District Court that
time-shifting does have a substantial adverse effect upon the "potential market
for" the Studios' copyrighted works. Accordingly, even under the formulation of the
fair use doctrine advanced by Sony, time-shifting cannot be deemed a fair use.
V
Contributory Infringement
The doctrine of contributory copyright infringement ... is not well defined....
I ... conclude that if a significant portion of the product's use is noninfringing,
the manufacturers and sellers cannot be held contributorily liable for the product's
infringing uses. See ante, at 440-441. If virtually all of the product's use,
however, is to infringe, contributory liability may be imposed; if no one would buy the
product for noninfringing purposes alone, it is clear that the manufacturer is purposely
profiting from the infringement, and that liability is appropriately imposed. In such a
case, the copyright owner's monopoly would not be extended beyond its proper bounds; the
manufacturer of such a product contributes to the infringing activities of others and
profits directly thereby, while providing no benefit to the public sufficient to justify
the infringement.
... The key question is not the amount of television programming that is
copyrighted, but rather the amount of VTR usage that is infringing. n43 Moreover, the
parties and their amici have argued vigorously about both the amount of television
programming that is covered by copyright and the amount for which permission to copy has
been given. The proportion of VTR recording that is infringing is ultimately a question of
fact, and the District Court specifically declined to make findings on the
"percentage of legal versus illegal home-use recording." 480 F.Supp., at 468. In
light of my view of the law, resolution of this factual question is essential. I therefore
would remand the case for further consideration of this by the District Court.
VI
The Court has adopted an approach very different from the one I have outlined. It is my
view that the Court's approach alters dramatically the doctrines of fair use and
contributory infringement as they have been developed by Congress and the courts. Should
Congress choose to respond to the Court's decision, the old doctrines can be resurrected.
As it stands, however, the decision today erodes much of the coherence that these
doctrines have struggled to achieve.
The Court's disposition of the case turns on its conclusion that time-shifting is a fair
use. Because both parties agree that time-shifting is the primary use of VTR's, that
conclusion, if correct, would settle the issue of Sony's liability under almost any
definition of contributory infringement. The Court concludes that time-shifting is fair
use for two reasons. Each is seriously flawed.
The Court's first reason for concluding that time-shifting is fair use is its claim that
many copyright holders have no objection to time-shifting, and that "respondents have
no right to prevent other copyright holders from authorizing it for their programs." Ante,
at 442. The Court explains that a finding of contributory infringement would
"inevitably frustrate the interests of broadcasters in reaching the portion of their
audience that is available only through time-shifting." Ante, at 446. Such
reasoning, however, simply confuses the question of liability with the difficulty of
fashioning an appropriate remedy. It may be that an injunction prohibiting the sale of
VTR's would harm the interests of copyright holders who have no objection to others making
copies of their programs. But such concerns should and would be taken into account in
fashioning an appropriate remedy once liability has been found. Remedies may well be
available that would not interfere with authorized time-shifting at all. The Court of
Appeals mentioned the possibility of a royalty payment that would allow VTR sales and
time-shifting to continue unabated, and the parties may be able to devise other narrowly
tailored remedies. Sony may be able, for example, to build a VTR that enables broadcasters
to scramble the signal of individual programs and "jam" the unauthorized
recording of them. Even were an appropriate remedy not available at this time, the Court
should not misconstrue copyright holders' rights in a manner that prevents enforcement of
them when, through development of better techniques, an appropriate remedy becomes
available.
The Court's second stated reason for finding that Sony is not liable for contributory
infringement is its conclusion that even unauthorized time-shifting is fair use. Ante,
at 447 et seq. This conclusion is even more troubling. The Court begins by
suggesting that the fair use doctrine operates as a general "equitable rule of
reason." That interpretation mischaracterizes the doctrine, and simply ignores the
language of the statute. Section 107 establishes the fair use doctrine "for purposes
such as criticism, comment, news reporting, teaching, . . . scholarship, or
research." These are all productive uses. It is true that the legislative history
states repeatedly that the doctrine must be applied flexibly on a case-by-case basis, but
those references were only in the context of productive uses. Such a limitation on fair
use comports with its purpose, which is to facilitate the creation of new works. There is
no indication that the fair use doctrine has any application for purely personal
consumption on the scale involved in this case, and the Court's application of it here
deprives fair use of the major cohesive force that has guided evolution of the doctrine in
the past....
Because of the Court's conclusion concerning the legality of time-shifting, it never
addresses the amount of noninfringing use that a manufacturer must show to absolve itself
from liability as a contributory infringer. Thus, it is difficult to discuss how the
Court's test for contributory infringement would operate in practice under a proper
analysis of time-shifting. One aspect of the test as it is formulated by the Court,
however, particularly deserves comment. The Court explains that a manufacturer of a
product is not liable for contributory infringement as long as the product is "capable
of substantial noninfringing uses." Ante, at 442 (emphasis supplied). Such a
definition essentially eviscerates the concept of contributory infringement. Only the most
unimaginative manufacturer would be unable to demonstrate that a image-duplicating product
is "capable" of substantial noninfringing uses....
More importantly, the rationale for the Court's narrow standard of contributory
infringement reveals that, once again, the Court has confused the issue of liability with
that of remedy.... The issue of an appropriate remedy is not before the Court at this time, but it
seems likely that a broad injunction is not the remedy that would be ordered. It is
unfortunate that the Court has allowed its concern over a remedy to infect its analysis of
liability.
VII
The Court of Appeals, having found Sony liable, remanded for the District Court to
consider the propriety of injunctive or other relief. Because of my conclusion as to the
issue of liability, I, too, would not decide here what remedy would be appropriate if
liability were found. I concur, however, in the Court of Appeals' suggestion that an award
of damages, or continuing royalties, or even some form of limited injunction, may well be
an appropriate means of balancing the equities in this case. Although I express no view on
the merits of any particular proposal, I am certain that, if Sony were found liable in
this case, the District Court would be able to fashion appropriate relief. The District
Court might conclude, of course, that a continuing royalty or other equitable relief is
not feasible. The Studios then would be relegated to statutory damages for proven
instances of infringement. But the difficulty of fashioning relief, and the possibility
that complete relief may be unavailable, should not affect our interpretation of the
statute.
Like so many other problems created by the interaction of copyright law with a new
technology, "[there] can be no really satisfactory solution to the problem presented
here, until Congress acts." Twentieth Century Music Corp. v. Aiken, 422
U.S., at 167 (dissenting opinion). But in the absence of a congressional solution, courts
cannot avoid difficult problems by refusing to apply the law. We must "take the
Copyright Act . . . as we find it," Fortnightly Corp. v. United Artists
Television, Inc., 392 U.S., at 401-402, and "do as little damage as possible to
traditional copyright principles . . . until the Congress legislates." Id., at
404 (dissenting opinion).