## Facts

- Zomba Enterprises, Inc. and Zomba Songs, Inc. owned copyrights in multiple musical compositions.
- Panorama Records, Inc. produced and sold karaoke CDs that incorporated Zomba-owned songs without licenses.
- The karaoke products included instrumental recordings, versions with audible lyrics, and synchronized lyric displays.
- Panorama copied at least 26 copyrighted compositions and used studio musicians to closely recreate the songs.
- Zomba sent Panorama a cease-and-desist letter and offered licensing terms; Panorama did not obtain licenses and continued sales.
- Panorama consented to a court order requiring it to stop selling infringing discs, but soon resumed selling infringing products.
- Zomba sought statutory damages for willful infringement and attorney’s fees.

## Issues

1. Whether Panorama’s infringement was “willful” under 17 U.S.C. § 504(c)(2) based on notice, copying practices, and post-order conduct.
2. Whether the district court abused its discretion by awarding $31,000 per work in statutory damages (total $806,000) under 17 U.S.C. § 504(c).
3. Whether the district court abused its discretion by denying Panorama’s motion to transfer venue.
4. Whether the district court abused its discretion by awarding attorney’s fees to Zomba under 17 U.S.C. § 505.

## Decision

- The Sixth Circuit affirmed summary judgment for Zomba on liability, including the finding of willful infringement.
- The court affirmed the statutory damages award of $806,000 ($31,000 per infringement for 26 works).
- The court affirmed the denial of Panorama’s motion to transfer venue.
- The court affirmed the award of attorney’s fees to Zomba.

## Legal Principles

- Willful copyright infringement may be proven by actual knowledge or by reckless disregard or willful blindness to a copyright holder’s rights; continued infringement after explicit notice and a court order supports willfulness.
- Under 17 U.S.C. § 504(c), statutory damages are reviewed for abuse of discretion; for willful infringement, awards up to $150,000 per work are permitted, and courts may select an amount within the range based on culpability and deterrence.
- A statutory damages award need not be the maximum to be sustained; an amount modestly above the non-willful ceiling can be permissible when the infringement is willful and the court provides a reasoned basis.
- Venue transfer rulings are reviewed for abuse of discretion; transfer may be denied when the movant fails to show that convenience and the interests of justice strongly favor another forum.
- Attorney’s fees under 17 U.S.C. § 505 are discretionary; courts may consider factors such as prevailing-party status, culpability, deterrence, and furthering the purposes of the Copyright Act.

## Conclusion

The Sixth Circuit upheld liability and remedies against a karaoke producer that copied and sold unlicensed recreations of copyrighted songs, holding that notice-based continued sales and post-order infringement supported willfulness and that the district court acted within its discretion in setting statutory damages, denying venue transfer, and awarding attorney’s fees.


Zomba Enters., Inc. v. Panorama Recs., Inc., 491 F.3d 574 (6th Cir. 2007)