Leadsinger Inc v. BMG Music Publishing
512 F.3d 522 (2008)
Premium Feature
Subscribe to Lexplug to listen to the Case Podcast.
Rule of Law:
A compulsory mechanical license under 17 U.S.C. § 115, which permits the creation of 'phonorecords,' does not authorize the visual display of lyrics in timed relation with music. Such a use creates an 'audiovisual work,' which requires a separate synchronization license from the copyright holder and is not protected by the fair use doctrine.
Facts:
- Leadsinger, Inc. manufactures an 'all-in-one microphone player' karaoke device with recorded songs embedded in a microchip.
- When the device is plugged into a television, it plays the recorded music and simultaneously displays the song's lyrics on the screen in real time.
- Leadsinger sometimes includes a printed copy of the lyrics with the device.
- BMG Music Publishing owns or administers the copyrights for the musical compositions and lyrics used by Leadsinger.
- BMG issued compulsory mechanical licenses under 17 U.S.C. § 115 to Leadsinger, allowing for the reproduction of the musical compositions as sound recordings.
- BMG then demanded that Leadsinger pay separate 'synchronization fees' for displaying the lyrics on screen and 'lyric reprint fees' for the printed copies.
- Leadsinger refused to pay these additional fees.
Procedural Posture:
- Plaintiff Leadsinger, Inc. filed a complaint for declaratory judgment against Defendant BMG Music Publishing in the U.S. District Court for the Central District of California (a federal trial court).
- Leadsinger sought a declaration that its § 115 license permitted it to display lyrics or that its use constituted fair use.
- The district court granted BMG's motion to dismiss for failure to state a claim, dismissing the complaint without leave to amend.
- Leadsinger, as appellant, appealed the dismissal to the U.S. Court of Appeals for the Ninth Circuit; BMG is the appellee.
Premium Content
Subscribe to Lexplug to view the complete brief
You're viewing a preview with Rule of Law, Facts, and Procedural Posture
Issue:
Does a compulsory mechanical license under 17 U.S.C. § 115 grant the right to display copyrighted song lyrics in timed synchronization with music on a karaoke device, or, alternatively, does such a use qualify as fair use under 17 U.S.C. § 107?
Opinions:
Majority - Milan D. Smith, Jr.
No. A compulsory mechanical license under § 115 does not grant the right to visually display lyrics synchronized with music, and such use does not qualify as fair use. The Copyright Act's compulsory license scheme for 'phonorecords' expressly excludes 'audiovisual works.' A karaoke device that displays a series of related images (sequentially-presented lyrics) intended to be shown by a machine together with accompanying sounds fits the statutory definition of an audiovisual work. Therefore, Leadsinger must obtain a separate synchronization license. Furthermore, the display of lyrics is not fair use because it is a commercial, non-transformative use of a highly creative work, it uses the work in its entirety, and it presumptively harms the potential market for lyric synchronization licenses.
Analysis:
This decision clarifies the scope of the § 115 compulsory mechanical license, establishing that it is strictly limited to audio reproductions (phonorecords) and does not extend to multimedia uses. It solidifies the legal status of karaoke displays as 'audiovisual works,' thereby reinforcing the value and necessity of synchronization licenses for copyright holders. This precedent significantly impacts the digital media and entertainment industries by requiring separate licensing for any product that combines copyrighted music with synchronized visual elements, preventing an expansion of the compulsory license into multimedia formats.
