UMG Recordings, Inc. v. Internet Archive

Background

Plaintiffs are companies involved in producing, manufacturing, and selling sound recordings. Their complaint alleges that the defendants infringed copyrights in recordings made on 78 rpm phonographic records, which were popular in the United States from the early 1900s through the late 1950s.

The alleged infringement concerns Internet Archive’s Great 78 Project, whose stated goal is preserving, researching, and allowing discovery of 78 rpm records. Donated physical records are received at Internet Archive’s San Francisco headquarters, sent to George Blood L.P.’s offices in Pennsylvania for digitization, and then stored for preservation in San Francisco or Pennsylvania. The resulting digital recordings are uploaded to the Project’s website, whose servers are in the San Francisco Bay Area.

Defendants Internet Archive, Brewster Kahle, Kahle/Austin Foundation, George Blood, and George Blood L.P. moved under 28 U.S.C. § 1404(a) to transfer the case to the Northern District of California. Section 1404(a) allows a federal court to transfer a civil action to another district for the convenience of the parties and witnesses and in the interest of justice, when the case could have been brought there or all parties consented.

Court’s Analysis

The parties did not dispute that the case could have been brought in the Northern District of California. The court therefore weighed the relevant transfer factors.

Plaiffs’ choice of forum. The court gave relatively little weight to plaintiffs’ choice of the Southern District of New York. Only two of the six plaintiffs—Sony Music Entertainment and Arista Music—have their principal places of business in New York. The court also found that the operative facts had only a tenuous connection to New York.

Witnesses and subpoena power. This factor favored transfer. The court identified the defendants themselves or Internet Archive employees as likely primary witnesses concerning the alleged infringement. Internet Archive, Brewster Kahle, and Kahle/Austin Foundation are located in the Northern District of California, giving that court subpoena power over more witnesses than the Southern District of New York court.

Documents and sources of proof. This factor weighed slightly in favor of transfer. Relevant documents and the allegedly infringing digital recordings were likely to be kept by Internet Archive in San Francisco. The court gave this factor limited weight because digital documents and recordings can be copied and transmitted easily.

Location of operative facts. This factor favored transfer. Internet Archive’s headquarters, the website servers, and the creation of the business arrangement with George Blood L.P. are in the San Francisco area. Digital files prepared by George Blood L.P. are sent there for uploading, while the physical records are stored in Latrobe, Pennsylvania, and Richmond, California. The court found the New York connections—such as access by New York internet users and plaintiffs’ commercial connections to New York—slight compared with the clear and concrete connection to Northern California.

Relative means and convenience of the parties. This factor was neutral because the court found no disparity between the parties’ relative means.

Ruling

Judge Schofield granted defendants’ motion to transfer the action. The Clerk of Court was directed to transfer the case to the U.S. District Court for the Northern District of California. The court denied defendants’ motion for oral argument as moot and directed the Clerk to close the motions at Docket Nos. 48 and 58.