Warner Bros. Entertainment Inc. v. WTV Systems, Inc.
824 F. Supp. 2d 1003
C.D. Cal.2011Background
- Plaintiffs own and license copyrighted motion pictures and monetize multiple distribution windows.
- Zediva streams plaintiffs’ works by remotely operating a bank of DVD players and streaming to customers without licenses.
- Zediva customers never access specific DVDs or players; multiple customers use the same copy across time.
- Plays are transmitted via internet to customers, with control over playback retained by Defendants.
- Windows and exclusivity agreements shape pricing and availability, which Zediva allegedly undermines.
- Court-granted temporary injunction to stopDefendants’ infringing transmissions pending further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Zediva’s transmissions infringe plaintiffs’ public performance rights | Plaintiffs: Zediva publicly performs works via internet" | Zediva markets DVD rentals, not public transmission | Yes; transmissions are public performances. |
| Likelihood of plaintiffs’ success on the merits | Plaintiffs own valid copyrights and rights under 17 U.S.C. §106 | Defendants lack license to perform works | Plaintiffs demonstrated likelihood of success. |
| Irreparable harm absent injunction | Loss of licensing control, revenue, and licensee goodwill; harm to VoD market | Injury speculative; monetary damages available | Irreparable harm shown. |
| Balance of hardships | Injunctive relief outweighs defendant’s hardship due to ongoing infringement | Injunction would severely harm business | Balance of hardships weighs in plaintiffs’ favor. |
| Public interest in granting injunction | Copyright protections serve public interest; prevent misappropriation | Public interest not to restrain new business model | Public interest supports injunction. |
Key Cases Cited
- Winter v. NRDC, 555 U.S. 7 (U.S. 2008) (four-factor test for injunctions; likelihood of success, irreparable harm, balance of hardships, public interest)
- American Trucking Ass'ns v. City of Los Angeles, 559 F.3d 1046 (9th Cir. 2009) (serious questions approach within Winter framework)
- On Command Video Corp. v. Columbia Pictures Indus., 777 F. Supp. 787 (N.D. Cal. 1991) (public transmission under the statute; hotel-room scenario analogue)
- Redd Horne, Inc. v. Columbia Pictures Indus., 749 F.2d 154 (3d Cir. 1984) (transmission to public via centralized system constitutes public performance)
- Columbia Pictures Indus., Inc. v. Redd Horne, Inc., 749 F.2d 154 (3d Cir. 1984) (public performance via transmission to multiple recipients)