C.H.L.R., Inc., Jeffrey C. Jones, John L. Marks, and Stanford P. Glazer (collectively, C.H.L.R.) appeal from decisions of the District Court granting summary judgment to Cass County Music Company and Red Cloud Music Company on the music companies’ copyright infringement claim and denying C.H.L.R. a jury trial. We affirm in part and reverse and remand in part.
I.
C.H.L.R. is a corporation that operates Stanford’s Comedy House in Little Rock, Arkansas, among other enterprises. Jones, Marks, and Glazer are officers, directors, and shareholders of C.H.L.R., and Jones was day-to-day manager of the Comedy House in Little Rock. Cass County Music Company and Red Cloud Music Company own the copyrights to the four songs at issue in this dispute, and are members of the American Society of Composers, Authors and Publishers (ASCAP).
ASCAP
is a performing rights society, a nonexclusive licensee of the nondramatic public performance rights of its members.
1
Broadcast Music, Inc. v. Columbia Broadcasting Sys., Inc.,
The Comedy House in Little Rock opened in September 1993. Before and after its comedy shows, for perhaps thirty to forty-five minutes, the Comedy House played recorded and radio music over a stereo system. Soon after the Comedy House opened, AS-CAP contacted Jones to advise him of the need for an ASCAP license if ASCAP sound recordings were to be played at the club. Negotiations on an appropriate fee for the license ensued, and subsequently broke down.
C.H.L.R. then instituted a “no-ASCAP” music policy at the Comedy House. That is, a list of ASCAP music was obtained, music tapes were made that included no ASCAP recordings, and the staff was instructed to play only the recorded non-ASCAP tapes when the club was open for business. Notwithstanding these precautions, ASCAP advised C.H.L.R. more than once that the Comedy House, when open to the public, persisted in playing music copyrighted by ASCAP members. ASCAP continued to recommend licensing to avoid legal action on a copyright infringement claim. On May 6, 1994, an ASCAP investigator visited the Comedy House and documented the public performance over the stereo system before the comedy show of four songs owned by ASCAP members, the music companies that are appellees here. C.H.L.R. contends that any copyright infringements were the result of its employees’ inadvertence and were unknown to management, but acknowledges that it cannot refute the allegation that the violations did occur.
*637 In August 1994, the music companies filed suit alleging copyright infringement based on the May 6, 1994, investigator’s report, seeking an injunction, statutory damages, and costs and attorney fees. C.H.L.R. demanded a jury trial, which the District Court denied. In March 1995, the court granted summary judgment to the music companies, permanently enjoining C.H.L.R. from engaging in infringing activities, awarding $1000 in statutory damages for each of the four infringements, and awarding $1119 in costs and $5469 in attorney fees.
For its appeal, C.H.L.R. does not challenge the injunction (it has since obtained a license issued by Broadcast Music, Inc., another performing rights society) or “the District Court’s conclusion that as a matter of law an infringement occurred for which the defendants are jointly and severally liable.” Brief for Appellants at 2 n. 1. The five issues C.H.L.R. does raise can be summarized as follows: The District Court erred in determining the infringements were “knowing,” the court erred in rejecting C.H.L.R.’s jury demand, and the award of costs and attorney fees was error.
II.
C.H.L.R. claims that a grant of summary judgment was precluded because there was a genuine issue of material fact on the question whether the infringements were “knowing.” C.H.L.R. correctly acknowledges that the state of mind of the copyright infringer is of no consequence to liability, so whether or not there is a genuine issue on the question is equally inconsequential to liability. “Once a plaintiff has proven that he or she owns the copyright on a particular work, and that the defendant has infringed upon those ‘exclusive rights’ ” — that is, he has proven the two key elements of copyright infringement, which are not at issue here— “the defendant is liable for the infringement and this liability is absolute.”
Pinkham v. Sara Lee Corp.,
If “the copyright owner sustains the burden of proving, and the court finds, that infringement was committed willfully, the court in its discretion may increase the award of statutory damages to a sum of not more than $100,000.” 17 U.S.C. § 504(c)(2) (1994). Although C.H.L.R. claims that “[t]he ASCAP members contended that the infringement was knowing and willful,” Brief of Appellants at 16, their prayer for damages in the complaint was for an amount between $500 and $20,000 per infringement, the statutory damages range when neither willful infringement nor innocent infringement is proved, and the District Court awarded only $1000 per infringement. Thus to the extent C.H.L.R. equates “knowing” with “willful,” its argument is a nonstarter, since no willful violation was alleged by the music companies or found by the District Court.
On the other hand, copyright law also provides that the court in “its discretion may reduce the award of statutory damages to a sum of not less than $200” when the “infringer was not aware and had no reason to believe that his or her acts constituted an infringement of copyright.” 17 U.S.C. § 504(c)(2). If C.H.L.R., with its argument that there is a genuine issue of fact on whether its behavior was “knowing,” is trying to fit its actions into the requirements for this statutory mitigation of damages for innocent infringement, we must conclude that there is no genuine issue of material fact for trial.
Before May 6, 1994, there were extensive conversations and written correspondence between ASCAP and C.H.L.R. regarding the purchase of an ASCAP license. It is clear from the record that ASCAP advised C.H.L.R. — and that C.H.L.R. understood— that the Comedy House’s unlicensed public
*638
performance of music in which ASCAP members owned performance rights would be a violation of law and could precipitate a lawsuit.- C.H.L.R. opted not to purchase an ASCAP license (or any other license at that time), and instead decided to institute a policy, of questionable efficacy from the very beginning, that no ASCAP music was to be played at the Comedy House. That policy failed, as ASCAP advised C.H.L.R. on several occasions after the implementation of the “no-ASCAP” policy and before the filing of this lawsuit. The fact that there was such a policy and that it evidently was violated by employees of the club without management’s notice is not relevant. C.H.L.R. and the individual defendants are liable for the copyright infringements, notwithstanding that the infringements were perpetrated by their employees and without their knowledge, because C.H.L.R. had the right and ability to supervise those employees, and because C.H.L.R. had a financial interest in the use of the copyrighted songs.
See Pinkham,
As we intimated above, C.H.L.R. argues that it had inadequate opportunity to develop the record on this issue, because it was unaware that the issue would be decided on summary judgment. We find this argument specious. The music companies’ motion for summary judgment specifically asked the court to find “defendants liable for copyright infringement” and to award “plaintiffs statutory damages of $5,000 per infringement.” Plaintiffs’ Motion for Summary Judgment and Permanent Injunction at 2. C.H.L.R. knew it had been denied a-jury trial, so if C.H.L.R. could demonstrate no genuine question of fact on the question of liability then all that remained was for damages to be assessed by the court. C.H.L.R. admittedly had nothing to counter the evidence that unequivocally -showed copyright infringements. So the only issue that remained to be decided — and the only issue on which C.H.L.R. could even hope to demonstrate a genuine issue of material fact — was the appropriate amount of statutory damages to be assessed. We reject the contention that the District Court’s decision caught C.H.L.R. unawares, but we note that Part III of this opinion renders the argument a moot point in any ease.
III.
C.H.L.R. argues that the District Court erred in striking its jury demand. The court held that the relief requested — an injunction, statutory damages, and costs and attorney fees — was equitable in nature and therefore the case would be properly decided by the court without a jury. Whether either party is entitled to a jury trial in a copyright infringement action is a question of first impression in this Circuit.
See, e.g., National Football League v. McBee & Bruno’s, Inc.,
The answer to that question in this appeal turns on whether a request for statutory damages in a copyright infringement case entitles a party in such a case to a jury trial, either because the statute compels it or because the Constitution requires it. The statute, in pertinent part, reads:
[T]he copyright owner may elect, at any time before final judgment is rendered, to recover, instead of actual damages and profits, an award of statutory damages for all infringements involved in the action, with respect to any one work, for which any one infringer is liable individually, or for which any two or more infringers are liable jointly and severally, in a sum of not less than $500 or more than $20,000 as the court considers just.
*639 17 U.S.C. § 504(c)(1) (1994). The relevant constitutional amendment provides that “[i]n Suits at common law ... the right of trial by jury shall be preserved.” U.S. Const, amend. VIL
Our research has revealed many cases wherein the parties and the courts apparently have assumed without deciding that copyright infringement actions either are for the court without a jury, or, less frequently, are for a jury. We begin with a survey of circuit court cases that have squarely addressed the question, and examine the legal analysis, if any, employed in each. 2
A.
When confronted with the question in 1912, the Second Circuit said:
[W]e do not think that by the use of the word “court” it is required that the judge acting by himself shall assess the damages when a ease is presented calling for an award under the minimum damage clause. We think it the better view that the statute permits him to direct the jury to assess the damages within the prescribed limits.
Mail & Express Co. v. Life Publishing Co.,
Many years later, without reference to
Mail & Express,
the Second Circuit read the statute quite differently and concluded, “The determination of statutory damages, including a fivefold increase in the maximum award if the plaintiff proves and the court finds willful infringement, is assigned by statute to the judge rather than the jury.”
Oboler v. Goldin,
In 1957, the First Circuit decided that the entire copyright infringement case before the trial court, including the request for statutory damages, “was equitable in nature, as to which the defendant had no constitutional or statutory right to a jury trial.”
Chappell & Co. v. Palermo Cafe Co.,
The Ninth Circuit has held that the statutory damages provision “expressly directs the
court
to use its discretion in the determination of ‘in lieu’ damages.”
Sid & Marty
*640
Krofft Television Prods., Inc. v. McDonald’s Corp.,
A few years later, in a short opinion without any real analysis, the Fifth Circuit concluded, “The whole case before the Court”— which included a prayer for minimum statutory damages — “was equitable in nature as to which the appellant had no constitutional or statutory right to a jury trial.”
Twentieth Century Music Corp. v. Frith,
That same year, the Fourth Circuit took a different approach. That court thought the statutory language concerning the award of statutory damages, “[i]f anything, ... enforces rather than detracts from an interpretation requiring a jury trial, but it is not sufficiently clear to mandate either a bench trial or a jury trial.”
Gnossos Music v. Mitken, Inc.,
The Eleventh Circuit, following the Fifth (as it would) and relying upon
Twentieth Century Music,
held “that the latitude granted the district court’s great discretion in awarding statutory damages does not entitle defendants to a jury or bench trial as to an award of damages within the statutory limits ... provided that the parties may submit all of their supporting evidence to the district court.”
Cable/Home Communication Corp. v. Network Prods., Inc.,
The Seventh Circuit has concluded that a party to a copyright infringement suit is entitled to a jury trial on the question of infringement, even if the only damages sought are statutory.
Video Views, Inc. v. Studio 21, Ltd.,
Given the diverging opinions of our sister circuits, we now consider for ourselves whether a party is entitled to a jury trial in a copyright infringement suit when the plaintiff seeks statutory damages as a remedy.
B.
Before we address the question whether a jury trial is constitutionally required, we must consider whether Congress provided for jury trial when enacting the
*641
copyright laws. If our inquiry leads us to conclude that it did, we can and will avoid the constitutional question.
Lorillard v. Pons,
Statutory damages, within a range, are to be assessed in an amount “as the court considers just.” 17 U.S.C. § 504(c)(1) (emphasis added). Further, if “the court finds” that the infringement was willful or innocent, “the court in its discretion” may go outside the statutory range, within certain limits, and increase or decrease the amount of statutory damages.
Id.
§ 504(e)(2) (emphasis added). The fact that Congress gave discretion to the “court,” however, does not mean that the decision on the amount of statutory damages vests automatically in the trial judge instead of a jury.
See, e.g., Curtis v. Loether,
C.
“In Suits at common law, where the value in controversy shall exceed twenty dollars, the right of trial by jury shall be preserved_” U.S. Const, amend. VII. The Supreme Court teaches that the phrase “Suits at common law” refers to those in which legal rights are sought to be adjudicated and legal remedies are imposed, as compared with those suits where the rights and the remedies are equitable.
Granfinanciera, S.A. v. Nordberg,
The Supreme Court has held that modern patent infringement actions derive “from the infringement actions tried at law in the 18th century, and there is no dispute that infringement cases today must be tried to a jury.”
Markman v. Westview Instruments, Inc.,
- U.S. -, -,
We proceed then to the related question: whether the remedy of statutory damages is legal or equitable. “The Seventh Amendment is silent on the question whether a jury must determine the remedy in a trial in which it must determine liability.”
Tull v. United States,
The first attribute considered by the
Terry
Court was the restitutionary nature of the relief, “such as in ‘action[s] for disgorgement of improper profits’ ”.
Id.
at 570,
In a case decided since the merger of the courts of law and equity in 1938, Fed.R.Civ.P. 2, the Supreme Court has concluded that statutory damages for copyright infringement are not only “restitution of profit and reparation for injury,” but also are in the nature of a penalty, “designed to discourage wrongful conduct.”
F.W. Woolworth Co. v. Contemporary Arts, Inc.,
As for other equitable attributes that we might ascribe to an award of statutory damages, “a monetary award ‘incidental to or intertwined with injunctive relief may be equitable.”
Terry,
Having carefully weighed the legal attributes of the statutory damages remedy against its equitable attributes, we conclude that, as is true with most money damages, statutory damages for copyright infringement are a legal remedy.
Further, we are not persuaded that Congress, by setting a range within which statutory damages are to be awarded, intended that there be no fact-finding involved in fixing a damage award within the range, nor that the fact-finding is of such difficulty that it must be performed by the court.
6
“[T]he
*644
law commits to the trier of facts, within the named limits, discretion to apply the measure furnished by the statute.... ”
Douglas,
D.
We hold that either party in a copyright infringement suit is entitled under the Seventh Amendment to a jury trial on demand. Accordingly, the District Court erred in striking C.H.L.R.’s jury demand, and C.H.L.R. is entitled to a new trial, with jury, on the music companies’ claim for statutory damages.
IV.
C.H.L.R. also has appealed the award of attorney fees and costs. In view of our disposition of the jury-trial issue, the award must be, and is, vacated.
V.
To sum up, the judgment of the District Court granting summary judgment on the question of C.H.L.R.’s liability for copyright infringement is affirmed. The court’s decision to strike the jury demand is reversed, and the case is remanded for further proceedings on the claim for statutory damages. The award of attorney fees and costs is vacated.
Notes
. ASCAP, being a nonexclusive licensee of the music companies’ compositions, is not a party to this suit. As will be seen, however, ASCAP was a key player in the events leading up to the lawsuit.
. The cases we cite throughout our opinion construe both the 1909 and 1976 versions of the Copyright Act's infringement damages statute. 17 U.S.C. § 101(b) (1976) (1909 Act); 17 U.S.C. § 504(c) (1994) (1976 Act). The relevant statutory language relied upon in the pre-1976 cases concerning the court's discretion remains essentially the same. E.g., 17 U.S.C. § 101(b) (“as to the court shall appear to be just,” “the court may, in its discretion”); 17 U.S.C. § 504(c) ("as the court considers just," “the court in its discretion may”). It is apparent that the 1976 Act was not intended to change this part of the statute.
. The legislative history accompanying the Semiconductor Chip Protection Act of 1984, Pub.L. No. 98-620, 98 Stat. 3347 (codified as amended at 17 U.S.C. §§ 901-14) does contain this interesting statement:
Section 911(c) provides statutory damages, in terms generally analogous to 17 U.S.C. § 504(c), but the discretionary amount that can be awarded to the plaintiff is raised to $250,000.... In using the term “court” in Sections 911(b) and (c) it is the intent of the Committee, as under 17 U.S.C. § 504(c), that there be a right to a juty where requested.
H.R.Rep. No. 781, 98th Cong., 2d Sess. 27, reprinted in 1984 U.S.C.C.A.N. 5750, 5776 (emphasis added).
This is arguably "revisionist" legislative history, is from a later Congress, and pertains to a different statute. We therefore do not rely on it.
. Although the Court in
Douglas v. Cunningham
said that the “trial judge may allow such damages as he deems to be just,”
. We note that the Court in
F.W. Woolworth Co. v. Contemporary Arts, Inc.,
. The Supreme Court has "identified 'the practical abilities and limitations of juries' as an additional factor to be consulted in determining whether the Seventh Amendment confers a jury trial right," in addition to the nature of the cause of action and the legal or equitable nature of the remedy.
Granfinanciera, S.A. v. Nordberg,
. In view of our holding regarding the legal nature of statutory damages in copyright cases, it necessarily follows that the willful or innocent nature of the infringement, and the concomitant adjustment of the amount of statutory damages, also would be jury questions.
