Columbia Pictures Industries, Inc. v. Aveco, Inc.
55 U.S.L.W. 2202, 800 F.2d 59 (1986)
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Rule of Law:
A business that provides private viewing rooms for rent to the general public for the purpose of watching video cassettes is authorizing a public performance of copyrighted works, as the entire business establishment is considered a 'place open to the public' under the Copyright Act.
Facts:
- Plaintiffs (Producers) own registered copyrights in motion pictures and distribute them on video cassettes.
- Defendant, Aveco, Inc., operates a business that rents these video cassettes to the public.
- In addition to renting cassettes for home use, Aveco also rents small, private viewing rooms on its premises.
- Each viewing room contains seating, a television monitor, and a video cassette player which the customer operates.
- Customers can rent a room and a video from Aveco, or rent a room and bring a video cassette obtained elsewhere.
- Aveco charges separate fees for the room rental and the video cassette rental.
- Aveco's stated practice is to rent rooms only to individuals, families, and their social acquaintances, not to unrelated groups.
- The performance of the video is contained within the individual room and is not transmitted elsewhere.
Procedural Posture:
- Producers sued Aveco, Inc. in the U.S. District Court for the Middle District of Pennsylvania for copyright infringement.
- The parties filed cross-motions for summary judgment.
- The district court granted partial summary judgment in favor of the Producers, finding Aveco had infringed on their exclusive public performance rights.
- The district court issued a permanent injunction ordering Aveco to cease the infringing activity.
- Aveco, as the appellant, appealed the district court's decision to the United States Court of Appeals for the Third Circuit.
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Issue:
Does a business that rents private viewing rooms and video cassettes to the general public for on-site viewing authorize 'public performances' of copyrighted works, thereby infringing the copyright owner's exclusive rights under the Copyright Act of 1976?
Opinions:
Majority - Stapleton, Circuit Judge
Yes. A business that rents private viewing rooms to the general public for on-site viewing authorizes public performances of copyrighted works. Although the customers operate the video players and perform the work, Aveco authorizes the performance by providing the space and equipment. The central question is whether these performances are 'public.' The Copyright Act defines a public performance as one occurring at a 'place open to the public.' Relying on precedent from Columbia Pictures Industries v. Redd Horne, the court concludes that the relevant 'place' is Aveco's entire store, not the individual private viewing booths. Because Aveco's business is open to any member of the public willing to pay the fee, the performances that occur within it are public performances. The court rejected the argument that the 'first sale doctrine' protects Aveco, because that doctrine only applies to the right to sell or rent a physical copy, not the separate and distinct right to publicly perform the work.
Analysis:
This decision solidifies the legal interpretation that the character of a business establishment as a whole, rather than the nature of individual private spaces within it, determines whether a performance is 'public' under copyright law. It establishes a strong precedent against business models that attempt to circumvent public performance licensing by creating individualized viewing experiences within a publicly accessible venue. This ruling significantly impacts businesses that facilitate the on-site consumption of copyrighted media, reinforcing the copyright holder's control over public performances regardless of the specific technology or setup used.
