http://news.yahoo.com/s/ap/20080925/ap_on_hi_te/music_downloading

Judge grants new trial in music downloading case
By STEVE KARNOWSKI, Associated Press WriterWed Sep 24, 11:27 PM ET

A federal judge granted a new trial to a Minnesota woman convicted of
pirating music files in the nation's first file-sharing trial, ruling
Wednesday he made an error in the jury instructions that "substantially
prejudiced" her rights.

Jammie Thomas was convicted last October and a jury in Duluth found her
guilty of copyright infringement for offering to share 24 songs on the Kazaa
file sharing network. She was ordered to pay $222,000 to six record
companies.

On Wednesday, U.S. District Judge Michael J. Davis granted her motion for a
new trial, while also imploring Congress to change copyright laws to prevent
excessive awards in similar cases.

At issue was whether the record companies had to prove anyone else actually
downloaded their copyrighted songs, as Thomas' lawyer argued, or whether it
was enough to argue, as the industry did, that a defendant simply made
copyrighted music available for copying.

Relying on a 1993 appeals court decision, Davis concluded in his 44-page
ruling Wednesday that the law requires that actual distribution be shown. In
his jury instructions, he had said it didn't.

Thomas said she was "very happy" with the decision, although she said she is
not looking forward to going back to court. She was the first of thousands
sued by the industry to go to trial.

"Now they're going to have to prove their claims," Thomas said. "They never
had to prove anything before. Now they do. It kind of levels the playing
field a little bit."

Thomas said she expects the companies to appeal, and that the issue of how
to interpret copyright law could go all the way to the Supreme Court.

Her attorney, Brian Toder, called the ruling "brilliant" and said that if
the case does go to the 8th Circuit Court of Appeals or the U.S. Supreme
Court, "having the benefit of Judge Davis' opinion will make my client's
case exponentially more compelling."

Andrew Bridges, a San Francisco attorney and frequent participant in
Internet music litigation, said Davis' reasoning is likely to be "very
persuasive" in other courts.

"This decision is extremely important," Bridges said. "This is the most
thoughtful decision by a court yet on these issues."

A spokesman for the Recording Industry Association of America, Jonathan
Lamy, said Davis' decision was "not unexpected" given his previous public
comments that he thought he had made an error. He said the plaintiffs were
still assessing their legal options.

"Regardless of this narrow issue, a jury of her own peers unanimously found
Ms. Thomas liable for copyright theft and for causing significant harm to
the music community," Lamy said. "We have confidence in our case and the
facts assembled against the defendant."

Because he ordered a new trial, Davis didn't directly rule on Thomas'
request that he void the $222,000 damage award as excessive. But he called
on Congress to change the federal Copyright Act to address liability and
damages in similar peer-to-peer file-sharing network cases.

Davis wrote that he didn't discount the industry's claim that illegal
downloading has hurt the recording business, but called the award "wholly
disproportionate" to the plaintiff's damages.

The judge said Thomas, of Brainerd, allegedly infringed on the copyrights of
24 songs, which he said was the equivalent of around three CDs that would
cost less than $54. He said the total award was more than 4,000 times the
cost of three CDs.

"The Court does not condone Thomas' actions, but it would be a farce to say
that a single mother's acts of using Kazaa are the equivalent, for example,
to the acts of global financial firms illegally infringing on copyrights in
order to profit in the securities market," he wrote, referring to another
case he cited.

Davis suggested that damages that are more than 100 times the costs of the
works would serve as a "sufficient deterrent" to illegal downloading. He
also stressed that Thomas had sought no profits from her alleged illegal
activities.

"Unfortunately, by using Kazaa, Thomas acted like countless other Internet
users," he wrote. "Her alleged acts were illegal, but common. Her status as
a consumer who was not seeking to harm her competitors or make a profit does
not excuse her behavior. But it does make the award of hundreds of thousands
of dollars in damages unprecedented and oppressive."

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