Flo & Eddie, Inc. v. Sirius XM Radio, Inc.
70 N.E.3d 936
NY2016Background
- Flo & Eddie (owned by former members of the Turtles) controls master recordings of ~100 songs fixed before Feb. 15, 1972 and sued Sirius XM for broadcasting those recordings without licenses or performance payments.
- District Court denied Sirius’s summary-judgment motion, finding New York common law recognizes a public-performance right in pre‑1972 sound recordings; the Second Circuit certified the question to the New York Court of Appeals.
- Federal copyright law historically excluded performance rights for sound recordings and only created a limited digital-performance right in 1995 (DPRA) for post‑1972 recordings.
- New York common-law cases had long protected against piracy (unauthorized reproduction/distribution) but had not explicitly recognized a public‑performance right for sound recordings.
- The Court held as a matter of New York common law that creators/owners of pre‑1972 sound recordings do not have a right of public performance; it declined to create such a right and left that policy choice to the legislature.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does NY common law recognize a right of public performance in pre‑1972 sound recordings? | Yes — owners have a common‑law performance right and should be compensated when services commercially broadcast recordings. | No — NY common law historically protects only reproduction/distribution; no recognized performance right; industry practice confirms absence. | No — New York common law does not recognize such a right. |
| If recognized, should the Court define its scope (e.g., which media/exemptions)? | Scope should cover commercial broadcasts (e.g., subscription services) and be broadly enforceable. | Defining scope is complex; recognition would disrupt settled expectations and require legislative balancing. | Court declined to define scope and refused to create the right; left to legislature. |
| Do NY common‑law copyright doctrines protect unauthorized reproduction/piracy of pre‑1972 recordings? | Yes — owners can enjoin copying and unauthorized distribution. | N/A (defendant conceded copying issues in part). | Yes — common law protects against unauthorized reproduction; prior decisions (Naxos, Metropolitan Opera) support anti‑piracy protection. |
| Are societal/industry expectations relevant to recognizing a new common‑law right? | Industry evolution and artist harm justify recognition despite past practice. | Longstanding industry practice and congressional treatment show no common‑law performance right; courts should not upend settled reliance. | Relevant — the Court emphasized settled expectations and legislative competence; declined to create the right. |
Key Cases Cited
- Capitol Records, Inc. v. Naxos of Am., Inc., 4 N.Y.3d 540 (N.Y. 2005) (New York common law protects pre‑1972 sound recordings against unauthorized reproduction)
- Bonneville Int’l Corp. v. Peters, 347 F.3d 485 (3d Cir. 2003) (historical overview of recording industry practices and the absence of a performance right pre‑DPRA)
- Arista Records, LLC v. Launch Media, Inc., 578 F.3d 148 (2d Cir. 2009) (discussion of federal reproduction rights for sound recordings)
- RCA Mfg. Co. v. Whiteman, 114 F.2d 86 (2d Cir. 1940) (held common‑law protection focused on reproduction and suggested performance right did not survive publication)
- Capitol Records v. Mercury Records Corp., 221 F.2d 657 (2d Cir. 1955) (rejected the broad Whiteman statement that sale of records extinguished all common‑law rights; limited to anti‑piracy protection)
- Palmer v. De Witt, 47 N.Y. 532 (N.Y. 1872) (distinguishes right of first publication from statutory performance rights)
- Pushman v. New York Graphic Soc’y, 287 N.Y. 302 (N.Y. 1942) (recognizes distinct common‑law interest in reproduction separate from ownership of physical object)
- Goldstein v. California, 412 U.S. 546 (U.S. 1973) (states may protect pre‑1972 sound recordings where federal law does not preempt)
- Dowling v. United States, 473 U.S. 207 (U.S. 1985) (copyright limits are carefully delimited; not all uses are covered)
