Articles Posted in US Court of Appeals for the Second Circuit

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Defendants appealed the district court's judgment for plaintiffs, finding copyright infringement. Defendants created an Internet platform designed to enable the lawful resale, under the first sale doctrine, of lawfully purchased digital music files, and had hosted resales of such files on the platform. The Second Circuit held that defendants infringed plaintiffs' exclusive rights under 17 U.S.C. 106(1) to reproduce their copyrighted works. In this case, the operation of ReDigi version 1.0 in effectuating a resale resulted in the making of at least one unauthorized reproduction. Such unauthorized reproduction violated the right holder's exclusive reproduction rights under section 106(1) and was not excused as fair use. The court declined to make a decision as to whether ReDigi also infringed plaintiffs' exclusive rights under 17 U.S.C. 106(3) to distribute their works. View "Capitol Records, LLC v. ReDigi Inc." on Justia Law

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The Second Circuit affirmed the district court's judgment in an action filed by seven former participants in online discount membership programs, alleging that Trilegiant conspired with e‐merchant retailers such as Buy.com, Orbitz, and Priceline to enroll the retailers' customers in the membership programs via deceptive post‐transaction marketing and datapass techniques. The court held that prohibitions on the Electronic Communications Privacy Act did not apply in this case because plaintiffs failed to raise a material issue of fact as to whether they consented to enrollment in the membership programs. Therefore, the court affirmed the grant of summary judgment as to that claim. The court affirmed the dismissal of the racketeering claim, holding that plaintiffs could not proceed on a theory of racketeering because they did not identify an actionable fraud. Finally, the court affirmed the grant of summary judgment on the Connecticut Unfair Trade Practices Act and unjust enrichment claims, holding that plaintiffs have not shown that they were entitled to a refund of membership fees and Trilegiant was not unjustly enriched by not issuing the refunds. View "Williams v. Affinion Group, LLC" on Justia Law

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The Second Circuit affirmed the district court's grant of defendant's Rule 12(b)(6) motion to dismiss an action challenging a Connecticut law imposing recycling fees on electronics manufacturers. VIZIO alleged that Connecticut's E-Waste Law effectively regulated interstate commerce in violation of the Commerce Clause. The court analyzed the claim through a "well-worn path," N.Y. Pet Welfare Ass'n, Inc. v. City of New York, 850 F.3d 79, 89 (2d Cir. 2017), and held that VIZIO failed to articulate entitlement to relief under this familiar rubric. The court declined to extend the extraterritoriality doctrine in such a way as to prohibit laws that merely consider out‐of‐state activity, did not apply the user fee analysis to VIZIO's case, and found no burden on interstate commerce that was clearly excessive to the considerable public benefits conferred by Connecticut's E‐Waste Law. View "VIZIO, Inc. v. Klee" on Justia Law