Wednesday, August 17, 2011

Second Circuit -- In re Literary Works in Elect. Databases Copyright Litig.

In re Literary Works in Elect. Databases Copyright Litig.

In Tasini, Scotus held that contributors to periodicals might be due recompense for the conversion of their work into subsequently sold electronic forms.  Here, the Second Circuit rules that a class of these contributors was improperly certified.

Held:


The release of future claims by the class was kosher, as tied to the same factual predicate.


The de facto subclass of claimants holding unregistered claims are unduly hurt by a contingent term in the deal which would further cap their recovery after the percentage of monies due them relative to the rest of the class was determined.  Certification was therefore an abuse of discretion under the adequacy requirement.


Partial dissent: The contingent term reflected a value judgment just as valid as the percentage call.  No DP violation in settlement.
Compiled by D.E. Frydrychowski, who is, not incidentally, not giving you legal advice.

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Author's SSRN page here.