Perfect 10, Inc. v. Giganews, Inc., No. 15-55500 (9th Cir. 2017)Annotate this Case
This case arises from a copyright dispute revolving around the Usenet. Giganews owns and operates several Usenet servers and provides its subscribers with fee-based access to content stored on its own servers as well as content stored on the servers of other Usenet providers. Livewire provides its subscribers with access to the Usenet content stored on Giganews’s servers. Perfect 10, owner of exclusive rights to tens of thousands of adult images, filed suit against Giganews and Livewire, alleging direct and indirect copyright infringement claims as well as trademark and state law claims. The copyright claims are at issue in this appeal. The court concluded that the district court did not err in requiring Perfect 10 to satisfy the volitional conduct requirement as an element of a prima facie case of direct infringement, and agreed with the district court that Perfect 10 failed to prove volitional conduct with respect to either Giganews or Livewire. The court concluded that the district court did not err in dismissing much of Perfect 10’s direct infringement claim at the pleadings stage, nor did it err in granting summary judgment in favor of Giganews and Livewire on the direct, vicarious, and contributory infringement claims; concluded that the district court did not abuse its discretion in awarding fees to defendants and denying defendants' supplemental fee request; and held that the district court did not clearly err in refusing to add Perfect 10's sole shareholder and founder, Norman Zada, to the judgment against Perfect 10. Accordingly, the court affirmed the judgment.