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Jury Sets Landmark Copyright Infringement Precedent With Multimillion Dollar Award In CD Copying Case
A jury in federal court in Los Angeles on Wednesday rendered a judgment of more than $136 million against Media Group, a CD manufacturing plant, and its former CEO, Jimmy Chan, for copyright infringement. Specifically, the jury found that the defendants should pay $90,000 for each of more than 1,500 songs for a total verdict of $136,260,000. It is one of the largest, if not the largest, judgment ever rendered in a copyright case. Media Group is based in Fremont, California and was sued in June 2000 by the Recording Industry Association of America (RIAA) on behalf of 23 record companies. Last year, in August 2001, the judge in the case ruled that Media Group and its CEO were liable for copyright infringement and that their actions were "willful." After the court found Media Group liable, the company declared bankruptcy seeking to avoid having the damages assessed. The sole issue presented to the eight-person jury was the question of damages -- though they will likely never be collected given Media Group's financial condition. "This is a major win for record labels, artists, music fans and countless others who care about protecting the value of music," Cary Sherman, President of the RIAA. "It is a precedent-setting verdict that sends an important message to those who ignore copyright law." Matt Oppenheim, Senior Vice President, Business and Legal Affairs, added, "this verdict is a victory that should serve as a warning to other infringers that the cost of infringement is high. The music industry is a risky and expensive business. Illegally copying and distributing the hard work of musicians and record labels strips away the value of their creativity." "The hard work of our anti-piracy investigators unit really paid off in helping lay the foundation for this case," said Frank Creighton, Executive Vice President and Director of the RIAA's Anti-Piracy Unit. "The significant of this case and the verdict is clear -- we will make every effort to educate CD plants about the do's and don'ts, but those who break the law will be caught and held accountable." The record companies were represented by the RIAA and its counsel, Pat Benson and Karen Pagnanelli, from the law firm Mitchell, Silberberg and Knupp.
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