Tresona Multimedia, LLC v. Burbank High Vocal Music ( 2020 )


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  •                 FOR PUBLICATION
    UNITED STATES COURT OF APPEALS
    FOR THE NINTH CIRCUIT
    TRESÓNA MULTIMEDIA, LLC, an             Nos. 17-56006
    Arizona limited liability company,           17-56417
    Plaintiff-Appellant/Appellee,        17-56419
    v.                        D.C. No.
    2:16-cv-04781-
    BURBANK HIGH SCHOOL VOCAL                 SVW-FFM
    MUSIC ASSOCIATION; BRETT
    CARROLL; JOHN DOE CARROLL, a
    married couple; ELLIE STOCKWELL;           OPINION
    JOHN DOE STOCKWELL, a married
    couple; MARIANNE WINTERS; JOHN
    DOE WINTERS, a married couple;
    GENEVA TARANDEK; JOHN DOE
    TARANDEK, a married couple;
    LORNA CONSOLI; JOHN DOE
    CONSOLI, a married couple;
    CHARLES RODRIGUEZ; JOHN DOE
    RODRIGUEZ, a married couple,
    Defendants-Appellees/Appellants.
    Appeal from the United States District Court
    for the Central District of California
    Stephen V. Wilson, District Judge, Presiding
    Argued and Submitted May 13, 2019
    Pasadena, California
    Filed March 24, 2020
    2         TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    Before: Kim McLane Wardlaw and Andrew D. Hurwitz,
    Circuit Judges, and Edward R. Korman, * District Judge.
    Opinion by Judge Wardlaw
    SUMMARY **
    Copyright
    The panel affirmed the district court’s summary
    judgment in favor of the vocal music director at Burbank
    High School and other defendants in a copyright suit and
    reversed the district court’s denial of attorneys’ fees to
    defendants.
    Tresóna Multimedia, LLC, a licensing company,
    claimed that the Burbank High School student show choirs
    failed to obtain licenses for their use of copyrighted sheet
    music in arranging a show choir performance. The panel
    concluded that Tresóna lacked standing under 17 U.S.C.
    § 501(b) to sue as to three of the four musical works at issue
    because it received its interests in those songs from
    individual co-owners of copyright, without the consent of
    the other co-owners, and therefore held only non-exclusive
    licenses in those works.
    *
    The Honorable Edward R. Korman, United States District Judge
    for the Eastern District of New York, sitting by designation.
    **
    This summary constitutes no part of the opinion of the court. It
    has been prepared by court staff for the convenience of the reader.
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   3
    Affirming in part on different grounds from the district
    court, the panel held that the defense of fair use rendered the
    use of the fourth musical work noninfringing. The panel
    concluded that the educational purpose of the use was an
    enumerated fair use purpose under 17 U.S.C. § 107. In
    addition, the purpose and character of the use, which was
    transformative, weighed strongly in favor of a finding of fair
    use. The nature of the copyrighted work weighed against
    fair use because the original arrangement of the song was
    creative. Neither (1) the amount and substantiality of the
    portion used nor (2) the effect upon the potential market for
    or value of the copyrighted work weighed against fair use.
    The panel stated that it was especially swayed by the limited
    and transformative nature of the use and the work’s
    nonprofit educational purposes in enhancing the educational
    experience of high school students. The panel concluded
    that the music director’s use of a small portion of the song,
    along with portions of other songs, to create sheet music for
    a new and different high school choir showpiece
    performance was a fair use.
    Reversing in part, the panel held that the district court
    abused its discretion in denying defendants attorneys’ fees
    under 17 U.S.C. § 505 because defendants prevailed across
    the board in this action in the district court and won a ruling
    on their fair use defense on appeal, Tresóna’s arguments
    were objectively unreasonable, and an award of fees would
    further the purposes of the Copyright Act. The panel
    therefore awarded defendants’ attorneys’ fees and remanded
    to the district court for the calculation of the award.
    4   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    COUNSEL
    Brad A. Denton (argued), Denton Peterson P.C., Mesa,
    Arizona, for Plaintiff-Appellant/Appellee.
    Scott D. Danforth (argued) and Marlon C. Wadlington,
    Atkinson Andelson Loya Ruud & Romo, Cerritos,
    California, for Defendants-Appellees/Appellants Brett
    Carroll and John Doe Carroll.
    A. Eric Bjorgum (argued), Marc Karish, and Vincent
    Pollmeier, Karish & Bjorgum PC, Pasadena, California, for
    Defendants-Appellees/Appellants Burbank High School
    Vocal Music Association, Ellie Stockwell, John Doe
    Stockwell, Marianne Winters, John Doe Winters, Geneva
    Tarandek, John Doe Tarandek, Lorna Consoli, John Doe
    Consoli, Charles Rodriguez, and John Doe Rodriguez.
    OPINION
    WARDLAW, Circuit Judge:
    In this copyright infringement action against Brett
    Carroll, the vocal music director at Burbank High School,
    the Burbank High School Vocal Music Association Boosters
    Club, and several individual Boosters Club parents, Tresóna
    Multimedia, LLC claims that the Burbank High School
    student show choirs failed to obtain licenses for their use of
    copyrighted sheet music in arranging a show choir
    performance. We conclude that Tresóna lacks standing to
    sue as to three of the four musical works at issue, and that
    the defense of fair use renders the use of the fourth
    noninfringing. We therefore affirm the district court’s grant
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   5
    of summary judgment in favor of Defendants, but reverse its
    denial of attorneys’ fees to Carroll and the Boosters Club.
    I. FACTUAL AND PROCEDURAL BACKGROUND
    A. The Burbank High School Performances
    Giving Rise to this Suit
    Burbank High School’s music education program
    includes instructional classes and five competitive show
    choirs. The competitive show choirs—Out Of The Blue,
    Sapphire, Impressions, Sound Dogs, and In Sync—are
    “nationally recognized as top competitors in their respective
    divisions,” and reportedly inspired the television series
    “Glee.” To participate in the show choirs, students “must be
    enrolled in one of the four music classes offered [by Burbank
    High School] during the instructional day,” and must also
    make financial contributions to defray expenses, including
    those for costume rentals, competition entry fees,
    transportation, choreographers, and professional music
    arrangers.
    Because student contributions do not cover the full costs
    of the competitive show choirs, and many students at
    Burbank High School cannot afford to make any financial
    contributions, the Boosters Club, a registered 501(c)(3) non-
    profit organization, holds several annual fundraisers at
    Burbank High School to help cover the show choirs’
    expenses. These annual fundraisers include the “Burbank
    Blast,” a show choir competition that features performances
    by 40 show choirs, as well as the spring “Pop” show, during
    which the Burbank High School competitive show choirs
    perform their competition sets. To generate revenue from
    these events, the Boosters Club sells entry tickets, as well as
    advertisements in the event programs.
    6   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    Brett Carroll is the music director at Burbank High
    School, where he teaches an instructional day class and
    directs the show choirs. Carroll also acts as a “teacher
    liaison/coach” to the Boosters Club. In this capacity, Carroll
    decides how the funds raised by the Boosters Club are spent
    and selects the show choirs’ choreographers, arrangers, and
    accompanists. Carroll also decides, with input from parents,
    which competitions the show choirs will attend during the
    school year.
    Carroll commissioned music arranger Josh Greene, who
    is not a party to this action, to create custom sheet music for
    two shows: “Rainmaker” and “80’s Movie Montage,”
    performed by the group In Sync. “Rainmaker” is an
    approximately eighteen-minute performance of stanzas from
    many musical works, including a rearranged segment of
    “Magic,” a song originally performed by Olivia Newton-
    John. The “Magic” segment used by In Sync to close out the
    last two minutes of “Rainmaker” includes a rearranged
    chorus and small segments from another verse of the song.
    “80’s Movie Montage” is an approximately twenty-minute
    performance, and incorporates a segment of the song “(I’ve
    Had) The Time of My Life” by Bill Medley and Jennifer
    Warnes. That segment is approximately sixteen seconds of
    the song’s chorus, out of the song’s four-minute and twenty-
    two-second runtime, and is used only once in “80’s Move
    Montage” to transition between other songs. Each show also
    incorporates small segments of several other musical works,
    none of which is at issue in this case. In Sync performed
    these shows on several occasions, including at the Burbank
    Blast fundraiser and during several student competitions.
    After In Sync’s performances of “Rainmaker” and “80’s
    Movie Montage,” Tresóna, an Arizona-based licensing
    company, brought copyright infringement claims against
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   7
    Carroll, the Boosters Club, and parent members of the
    Boosters Club, alleging infringement of Tresóna’s copyright
    interests in “Magic” and “(I’ve Had) The Time of My Life.”
    Tresóna also alleged that performances by the Jon Burroughs
    High School show choirs at the Burbank Blast, which
    incorporated segments of the songs “Hotel California” and
    “Don’t Phunk With My Heart” violated its copyright
    interests in those songs. Tresóna alleged that it was “the only
    authorized issuer in the United States and Canada for the . . .
    infringed songs,” and that Carroll, the Boosters Club, and the
    parents’ use of the songs without obtaining a “custom
    arrangement license, grand right license, synchronization
    license, or mechanical license” for them infringed its
    copyright interests under 17 U.S.C. § 501.
    B. Tresóna’s Copyright Interests
    Tresóna acquired its copyright interests in the songs
    through a series of assignments of those rights. PEN Music
    Group (PEN), which is not a party to this action, had
    “grant[ed] to Tresóna the exclusive, non-transferable right
    . . . to (i) issue Copyright Use Licenses” for “Magic,” “(I’ve
    Had) The Time of My Life,” and “Hotel California.” The
    relevant contract defines “Copyright Use Licenses” as
    “Synchronization Licenses, Custom Arrangement Licenses,
    Grand Rights Licenses, [and] Dramatic Rights Licenses[.]”
    PEN, in turn, had been assigned its rights to “Magic” by
    John Farrar Music (BMI). The contract between PEN and
    John Farrar Music (BMI) states that PEN “shall solely own
    each and all of [John Farrar Music (BMI)’s] interest in the
    musical compositions to the extent that they are written,
    composed, co-written or co-composed by John Farrar.” John
    Farrar composed the words and music to “Magic,” and John
    Farrar Music is the sole copyright claimant of “Magic,”
    according to the Copyright Office’s online public catalog of
    8   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    registration. Despite this chain of title, however, it is
    undisputed that Tresóna does not own the public
    performance rights to “Magic”; rather, John Farrar Music
    (BMI) has retained those rights, as to which it is the sole
    owner.
    Tresóna failed to provide evidence of its chain of title to
    “Hotel California.” It is undisputed, however, that PEN
    controlled only co-owner Don Felder’s interest in “Hotel
    California,” the rights to which are jointly owned, and only
    a 25 percent interest in “(I’ve Had) The Time of My Life.”
    Accordingly, neither PEN nor Tresóna is the sole copyright
    owner of its purported interests in either song.
    As for “Don’t Phunk With My Heart,” Tresóna was
    assigned interests from a separate music publisher, The
    Royalty Network, which is also not a party to this action.
    The contract between The Royalty Network and Tresóna
    provides that The Royalty Network “grants to Tresóna the
    exclusive, non-transferable right . . . to . . . issue Copyright
    Use Licenses” for “Don’t Phunk With My Heart.” However,
    the record evidence shows that “The Royalty Network
    controls only Kalyanji [Anandji] and Indivar Anandji’s
    interest[s] in ‘Don’t Phunk With My Heart,’” a work that is
    jointly owned with six other entities. Therefore, neither The
    Royalty Network nor Tresóna is the sole copyright owner of
    its purported interests in “Don’t Phunk With My Heart.”
    C. District Court Proceedings
    Despite the minimal evidence of Tresóna’s claim to
    exclusive rights in these four musical works, Tresóna
    brought this action against Carroll, the Boosters Club, and
    the parents, claiming it held exclusive rights in 79 songs,
    including “Magic,” “(I’ve Had) The Time of My Life,”
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N       9
    “Hotel California,” and “Don’t Phunk With My Heart.” 1
    Carroll, the Boosters Club, the parents, and Tresóna cross-
    moved for summary judgment. The district court granted in
    part Carroll’s motion for summary judgment, holding that
    Tresóna lacked standing to sue under the Copyright Act for
    infringement of the songs “(I’ve Had) The Time of My
    Life,” “Hotel California,” and “Don’t Phunk With My
    Heart,” because Tresóna held only non-exclusive rights to
    these works. For Tresóna’s claims based on the song
    “Magic,” the district court concluded that Carroll was
    entitled to qualified immunity from suit, and that the
    Boosters Club and Boosters Club parents could not be held
    liable for direct or secondary copyright infringement.
    After successfully defending against Tresóna’s claims
    on summary judgment, Carroll and the Boosters Club moved
    to recover their attorneys’ fees under 17 U.S.C. § 505. The
    district court denied the motions, concluding that Carroll and
    the Boosters Club had achieved only a minimal level of
    success on the merits, and that an award of attorneys’ fees
    would not otherwise further the purposes of the Copyright
    Act.
    Tresóna timely appeals the district court’s summary
    judgment orders. Carroll and the Boosters Club appeal the
    denial of their motions for attorneys’ fees.
    1
    Although Tresóna claimed exclusive rights in its complaint to
    79 songs used by the show choirs, Tresóna did not allege copyright
    infringement as to the remaining 75 songs. Nor did it produce any
    evidence in the course of the litigation to support its claim of exclusive
    rights in any of the remaining 75 songs.
    10   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    II. JURISDICTION AND STANDARD OF REVIEW
    We have jurisdiction under 28 U.S.C. § 1291.
    We review a district court’s grant of summary judgment
    de novo. L.A. Printex Indus., Inc. v. Aeropostale, Inc.,
    
    676 F.3d 841
    , 846 (9th Cir. 2012). “Summary judgment is
    appropriate if, viewing the evidence in the light most
    favorable to the nonmoving party, there is no genuine
    dispute as to any material fact and the movant is entitled to
    judgment as a matter of law.”
    Id. (internal quotation
    marks
    omitted).
    We review the district court’s denial of attorneys’ fees
    under the Copyright Act for an abuse of discretion. Shame
    On You Prods., Inc. v. Banks, 
    893 F.3d 661
    , 665 (9th Cir.
    2018). “A district court abuses its discretion when its
    decision is based on an inaccurate view of the law or a
    clearly erroneous finding of fact.” Cadkin v. Loose, 
    569 F.3d 1142
    , 1147 (9th Cir. 2009) (quoting Traditional Cat Ass’n v.
    Gilbreath, 
    340 F.3d 829
    , 833 (9th Cir. 2003)).
    III. STANDING
    The district court correctly granted summary judgment
    on Tresóna’s claims of infringement of its rights in the songs
    “(I’ve Had) The Time of My Life,” “Hotel California,” and
    “Don’t Phunk With My Heart” for lack of standing to sue
    under 17 U.S.C. § 501(b).
    Under the Copyright Act of 1976, only “[t]he legal or
    beneficial owner of an exclusive right under a copyright is
    entitled . . . to institute an action for any infringement of that
    particular right committed while he or she is the owner of
    it.” Id.; see also Silvers v. Sony Pictures Entm’t, Inc.,
    
    402 F.3d 881
    , 885 (9th Cir. 2005) (en banc). Although
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   11
    “copyrights are divisible,” and can be freely transferred,
    Corbello v. DeVito, 
    777 F.3d 1058
    , 1065 (9th Cir. 2015), the
    question of standing to sue depends on the nature of the
    interest transferred. In the case of joint ownership of
    exclusive rights in copyright, for example, “when one co-
    owner independently attempts to grant an exclusive license
    of a particular copyright interest, that licensee . . . does not
    have standing to sue alleged third-party infringers.”
    Id. (citing Sybersound
    Records, Inc. v. UAV Corp., 
    517 F.3d 1137
    , 1146 (9th Cir. 2008)). The Corbello court reasoned:
    After     all,     one     co-owner,      acting
    independently, “may not limit the other co-
    owners’ independent rights to exploit the
    copyright.” . . . Such a conclusion stems from
    the self-evident principle that a joint-owner
    cannot transfer more than he himself holds;
    thus, an assignment or exclusive license from
    one joint-owner to a third party cannot bind
    the other joint-owners or limit their rights in
    the copyright without their consent. In other
    words, the third party’s right is “exclusive” as
    to the assigning or licensing co-owner, but
    not as to the other co-owners and their
    assignees or licensees. As such, a third-party
    assignee or licensee lacks standing to
    challenge the attempted assignments or
    licenses of other copyright owners.
    Id. (citing Sybersound
    , 517 F.3d at 1146). 2
    2
    Looking to the circumstances of that case, we held that the
    transferred interest there “constituted a transfer of [a co-owner’s]
    derivative-work interest in the copyright, rather than a license.”
    12   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    Tresóna received its copyright interests in the songs
    “(I’ve Had) The Time of My Life,” “Hotel California,” and
    “Don’t Phunk With My Heart,” as a license from an
    individual co-owner of those interests without the consent of
    the other co-owners. Under Corbello and Sybersound,
    therefore, Tresóna lacks standing to sue for infringement of
    its non-exclusive rights.      Tresóna does not contend
    otherwise, but argues that a later panel decision, Minden
    Pictures, Inc. v. John Wiley & Sons, Inc., 
    795 F.3d 997
    (9th
    Cir. 2015), abrogated the holdings in Corbello and
    Sybersound that a licensee of only one co-owner’s interests
    lacks standing to bring claims for infringement under the
    Copyright Act.
    Of course, even if Minden Pictures purported to overrule
    Sybersound and Corbello, it could not do so, for “[o]nce a
    panel resolves an issue in a precedential opinion, the matter
    is deemed resolved, unless overruled by the court itself
    sitting en banc, or by the Supreme Court.” Hart v.
    Massanari, 
    266 F.3d 1155
    , 1171 (9th Cir. 2001). “[A] later
    three-judge panel considering a case that is controlled by the
    rule announced in an earlier panel’s opinion has no choice
    but to apply the earlier-adopted rule; it may not any more
    disregard the earlier panel’s opinion than it may disregard a
    ruling of the Supreme Court.”
    Id. Therefore, the
    three-judge
    panel in Minden could not have overruled Sybersound and
    Corbello’s holdings even if it wanted to.
    But Minden Pictures did not purport to overrule
    Sybersound or Corbello. It did not even address the issue
    
    Corbello, 777 F.3d at 1066
    . We made clear that a co-owner of a
    copyright is free to transfer that ownership interest to another, as long as
    the transfer was only of “exclusive copyright interests that [the co-owner
    itself] possesses.”
    Id. TRESÓNA MULTIMEDIA
    V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   13
    presented in both cases: whether a co-owner of a copyright
    interest can unilaterally grant an exclusive license to that
    interest to a third party. In Minden Pictures, “a stock
    photography company that serves as [a] licensing agent for
    dozens of photographers” granted rights to third parties to
    use copyrighted 
    photographs. 795 F.3d at 999
    –1000.
    Although Minden Pictures had the exclusive right to act as
    their licensing agent, the photographers had retained the
    rights both to “use the photographs themselves and to license
    them to others.”
    Id. at 999.
    Minden Pictures sued its
    licensee, a textbook publisher, for copyright infringement,
    claiming that the publisher exceeded the terms of its licensed
    use of the photographic works.
    Id. at 1000–01.
    The question
    before us was whether Minden Pictures had statutory
    standing to sue the publisher. Despite the fact that Minden
    Pictures had received licenses from the sole owners of the
    copyright interests, rather than from co-owners of those
    interests, the publisher argued that Minden Pictures did not
    receive exclusive licenses from the photographers, as the
    photographers retained the right to issue licenses
    themselves.
    Id. at 1004.
    But, as we pointed out, Minden
    Pictures had received an exclusive right to act as the
    licensing agent for each of the individual photographers,
    which was a grant of rights vis-à-vis the world. Even if that
    exclusive right was shared with the photographers, Minden
    Pictures would still have standing to sue over infringement
    of its license. As we there reasoned:
    The reason the [Copyright] Act prevents a
    holder of a “nonexclusive license” to use a
    copyrighted photograph from bringing an
    infringement action against others who use
    the same photograph is that such a licensee
    has no more than “a privilege that protects
    him from a claim of infringement by the
    14   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    owner” of the copyright. That is, because
    such a licensee has been granted rights only
    vis-à-vis the licensor, not vis-à-vis the world,
    he or she has no legal right to exclude others
    from using the copyrighted work, and thus no
    standing to bring an infringement suit. But
    when a licensee has been granted rights vis-
    à-vis the world—even if he or she shares
    those rights with another party, including the
    owner of the copyright—we see nothing in
    the Copyright Act that requires us to deem
    such an arrangement a mere “nonexclusive
    license” insufficient to give rise to standing
    to sue.
    Id. (citations omitted).
    We accordingly saw “no reason why, having appointed
    Minden [Pictures] to manage the commercial use of their
    photographs in the first instance as their licensing agent, the
    photographers should not also be able to rely on Minden
    [Pictures] to protect and defend the licenses that it has issued
    on their behalf.”
    Id. at 1005.
    In other words, even if an
    exclusive right is shared between two entities, a sole owner
    can promise exclusivity to just those two, while a co-owner
    cannot make that same promise unilaterally. Because the
    issue of whether a co-owner of a copyright interest can
    unilaterally grant an exclusive license to that interest was not
    present in Minden Pictures, Tresóna’s reliance on Minden
    Pictures is misplaced.
    The district court correctly held that Tresóna lacked
    standing under 17 U.S.C. § 501(b) to bring copyright
    infringement claims based on the songs “(I’ve Had) The
    Time of My Life,” “Hotel California,” and “Don’t Phunk
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   15
    With My Heart,” as Tresóna received its interests in those
    songs from individual co-owners of copyright, without the
    consent of the other co-owners, and therefore held only non-
    exclusive licenses in those works.
    IV. FAIR USE
    We affirm the district court’s grant of summary
    judgment against Tresóna on its claim of infringement of
    “Magic,” but not on the ground of qualified immunity. From
    the outset of this litigation, Carroll asserted the defense of
    fair use, and on cross-motions for summary judgment
    Tresóna sought a ruling that there was no fair use. 3 The
    district court, however, ruled in favor of Carroll on qualified
    immunity grounds, holding that “since teaching is explicitly
    listed as fair use [in the Copyright Act], a public school
    teacher acting in his teaching capacity would be reasonable
    in believing the fair use defense applies.” It thus elided the
    question of whether Carroll’s use of a rearranged segment of
    a copyrighted musical work in the arranged show music was
    an infringement. But that question begs to be answered, for
    show choirs and the arrangements they perform are not
    limited to public schools where the defense of qualified
    immunity might be invoked by public school teachers. And
    the defense of fair use, if applicable, should cover “teaching”
    whether in a private or public setting. Moreover, the fair use
    defense renders a use noninfringing, and has long served as
    an important defense in copyright law, unlike the qualified
    immunity defense which has never been used in our circuit
    3
    The Booster’s Club also asserted the defense of fair use.
    16       TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    or by the Supreme Court to shield a public official from a
    copyright infringement action. 4
    First recognized by United States courts in 1841, see
    Folsom v. Marsh, 
    9 F. Cas. 342
    , 348 (C.C.D. Mass. 1841)
    (No. 4901), the fair use doctrine is an “equitable rule of
    reason,” Sony Corp. of Am. v. Universal City Studios, Inc.,
    
    464 U.S. 417
    , 448 (1984), that “permits courts to avoid rigid
    application of the copyright statute when, on occasion, it
    would stifle the very creativity which that law is designed to
    foster,” Stewart v. Abend, 
    495 U.S. 207
    , 236 (1990) (quoting
    Iowa State Univ. Research Found., Inc. v. Am. Broad. Cos.,
    
    621 F.2d 57
    , 60 (2d Cir. 1980)). In Folsom, Justice Story
    formulated the issue of fair use as a question of “whether this
    is a justifiable use of the original materials, such as the law
    recognizes as no infringement of the copyright of the
    
    plaintiffs,” 9 F. Cas. at 348
    , and he identified many of the
    factors that continue to guide our analysis today: “the nature
    and objects of the selections made, the quantity and value of
    the materials used, and the degree in which the use may
    prejudice the sale, or diminish the profits, or supersede the
    objects, of the original work.”
    Id. Although Congress
    has
    amended federal copyright law numerous times in our
    history since the original statute was enacted in 1790, it first
    codified the fair use doctrine in section 107 of the Copyright
    Act of 1976. In so doing, Congress sought to restate the
    judicial doctrine of fair use in section 107, “not to change,
    narrow, or enlarge it in any way.” H.R. Rep. No. 94-1476,
    at 66 (1976). Congress, however, acknowledged that “courts
    4
    Professor Nimmer has recognized that “[s]ome courts have applied
    [the qualified immunity] doctrine in the copyright context, [while] others
    on occasion have denied it,” without endorsing either approach. See
    3 Melville B. Nimmer & David Nimmer, Nimmer on Copyright
    § 12.01[E][2][b] (2019).
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   17
    must be free to adapt the [fair use] doctrine to particular
    situations on a case-by-case basis.”
    Id. In section
    107, Congress first provides examples of
    traditionally noninfringing uses of copyright:
    [n]otwithstanding the provisions of sections
    106 and 106A, the fair use of a copyrighted
    work, including such use by reproduction in
    copies or phonorecords or by any other
    means specified by that section, for purposes
    such as criticism, comment, news reporting,
    teaching (including multiple copies for
    classroom use), scholarship, or research, is
    not an infringement of copyright.
    Congress then lists four nonexclusive “factors to be
    considered” in determining whether an unauthorized use is
    infringing:
    (1) the purpose and character of the use,
    including whether such use is of a
    commercial nature or is for nonprofit
    educational purposes;
    (2) the nature of the copyrighted work;
    (3) the amount and substantiality of the
    portion used in relation to the copyrighted
    work as a whole; and
    (4) the effect of the use upon the potential
    market for or value of the copyrighted work.
    Id. 18 TRESÓNA
    MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    We first look to whether the allegedly infringing use falls
    into the categories of uses given by Congress as examples of
    noninfringing uses. See Leadsinger, Inc. v. BMG Music
    Publ’g, 
    512 F.3d 522
    , 530 (9th Cir. 2008); 4 Nimmer
    § 13.05[A][1][a] (explaining the importance of the preamble
    examples to the fair use analysis). We then turn to the
    nonexclusive list of factors, looking not only to the statutory
    language of section 107 but also to prior judicial decisions
    addressing the contours of fair use. See Campbell v. Acuff
    Rose Music Inc., 
    510 U.S. 569
    , 577 (1994) (“Congress meant
    § 107 to restate the present judicial doctrine of fair use, not
    to change, narrow, or enlarge it any way.” (quotation
    omitted)). We analyze these factors together in light of the
    purpose of copyright law, see
    id. at 578,
    keeping in mind that
    copyright’s limited grant of monopoly privileges ultimately
    furthers the public good by “promot[ing] the Progress of
    Science and useful Arts,” U.S. Const. art. I, § 8, cl. 8; see
    also Harper & Row, Publishers, Inc. v. Nation Enters.,
    
    471 U.S. 539
    , 546 (1985). We also closely examine the
    particular facts presented by this case because the fair use
    analysis is a factually driven one.
    Carroll’s use of the musical work was in his capacity as
    a teacher in the music education program at Burbank High
    School. Such an educational use weighs in favor of fair use.
    But that does not end our inquiry because the preamble’s
    “text employs the terms ‘including’ and ‘such as’ . . . to
    indicate the ‘illustrative and not limitative’ function of the
    examples given.” 
    Campbell, 510 U.S. at 577
    (quoting
    17 U.S.C. § 101). We next analyze and weigh the listed
    factors.
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N     19
    A. The Purpose and Character of the Use, Including
    Whether Such Use Is of a Commercial Nature or Is for
    Nonprofit Educational Purposes
    We first look to “the purpose and character of the use.”
    17 U.S.C. § 107(1). Josh Greene’s arrangement of segments
    from several musical works, including the chorus from
    “Magic,” was for “nonprofit educational purposes,”
    id., and the
    resulting work was transformative. Greene’s new
    arrangement became an eighteen-minute-long competitive
    choir show, “Rainmaker,” that included the rearranged
    chorus of “Magic.” It was performed by students as part of
    Burbank’s music education program. Part of the proceeds
    went to the nonprofit Boosters Club to support other aspects
    of the music education program and the work of the show
    choir. This use was not of a traditional commercial nature,
    but rather for the nonprofit education of the students in the
    music program. 5 Carroll distributed the sheet music
    arranged by Greene at no charge to the students. See Marcus
    v. Rowley, 
    695 F.2d 1171
    , 1175 (9th Cir. 1983) (finding a
    nonprofit educational purpose in a teacher’s copying of a
    5
    This case is thus far removed from those circumstances previously
    held to have a commercial purpose. See, e.g., 
    Campbell, 510 U.S. at 582
    –83 (rap song parody sold to the public); Disney Enters., Inc. v.
    VidAngel, Inc., 
    869 F.3d 848
    , 861 (9th Cir. 2017) (paid streaming service
    that filtered objectionable content from movies and television shows);
    Seltzer v. Green Day, Inc., 
    725 F.3d 1170
    , 1178 (9th Cir. 2013) (use of
    an image in the video backdrop of Green Day’s musical tour); SOFA
    Entm’t, Inc. v. Dodger Prods., 
    709 F.3d 1273
    , 1278–79 (9th Cir. 2013)
    (use of a television clip in the stage musical Jersey Boys); 
    Leadsinger, 512 F.3d at 530
    (explaining the plaintiffs’ “commercial [purpose] . . . to
    sell its karaoke device for profit”).
    20   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    cake decorating booklet and distribution to students at no
    charge).
    However, “the mere fact that a use is educational and not
    for profit does not insulate it from a finding of
    infringement.” 
    Campbell, 510 U.S. at 584
    ; 
    Marcus, 695 F.2d at 1175
    . “The central purpose of this investigation
    is to see, in Justice Story’s words, whether the new work
    merely ‘supersede[s] the objects’ of the original creation or
    instead adds something new, with a further purpose or
    different character, altering the first with new expression,
    meaning, or message; it asks, in other words, whether and to
    what extent the new work is ‘transformative.’” 
    Campbell, 510 U.S. at 579
    (alteration in original) (citations omitted).
    Works are transformative when “new expressive content or
    message is apparent,” even if “the allegedly infringing work
    makes few physical changes to the original or fails to
    comment on the original.” Seltzer v. Green Day, Inc.,
    
    725 F.3d 1170
    , 1177 (9th Cir. 2013). “[T]he more
    transformative the new work, the less will be the significance
    of other factors . . . .” 
    Campbell, 510 U.S. at 579
    .
    “Magic” was an original song in the 1980 musical movie
    fantasy “Xanadu.” Olivia Newton-John played Kira, a muse
    descended from Mount Olympus, who encourages and
    inspires the male protagonist, Sonny, to pursue his dream of
    opening a fantastical nightclub, Xanadu. “Magic” plays
    during their first encounter, reprises first when Kira must
    return to Olympus, and then again when Kira seemingly
    reappears as a Xanadu waitress. It is thus used as a vehicle
    of inspiration for pursuit of one’s dreams and love.
    “Rainmaker” is an entirely different theatrical work—a
    show piece for the high school choir that reworks pieces
    from multiple songs to tell a story with new expressive
    content and meaning. “Rainmaker” tells the story of a local
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   21
    Dust Bowl-era community ravaged by drought. After a
    stranger visits the town, he promises rain in return for faith
    in his magical powers and performs several miracles to
    encourage the townspeople to believe in him. When the
    town’s last holdout, the Sheriff, drops to his knees to
    proclaim his faith, lifesaving rain finally arrives. The
    townspeople celebrate the newfound rain, singing the
    rearranged chorus of “Magic,” including additional, new
    lyrics.
    This rearrangement of “Magic” along with other musical
    works was thus transformative. Greene did not “simply
    omit[] portions” of the original work while retaining the
    “same intrinsic entertainment value.” Disney Enters., Inc. v.
    VidAngel, Inc., 
    869 F.3d 848
    , 861 (9th Cir. 2017). Rather,
    “Rainmaker” uses a portion of “Magic” by adding “new
    expression, meaning, [and] message.” 
    Campbell, 510 U.S. at 579
    ; see also 
    Seltzer, 725 F.3d at 1176
    –77 (finding the use
    of a street art image transformative when it is used in a four-
    minute video to comment on religion); Cariou v. Prince,
    
    714 F.3d 694
    , 708 (2d Cir. 2013) (holding the use of
    photographs in a series of paintings was transformative
    because the changes resulted in a “fundamentally different
    aesthetic”); SOFA Entm’t, Inc. v. Dodger Prods., 
    709 F.3d 1273
    , 1278 (9th Cir. 2013) (“By using [a TV clip] as a
    biographical anchor, [Defendant] put the clip to its own
    transformative ends.”); L.A. News Serv. v. CBS Broad., Inc.,
    
    305 F.3d 924
    , 939 (9th Cir. 2002) (finding transformative
    the inclusion of a video clip within a longer montage and
    edited for dramatic effect). Because Greene’s rearrangement
    of a portion of “Magic” created a new work with new
    meaning, it was a transformative use. 
    Seltzer, 725 F.3d at 1177
    .
    22   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    The “purpose and character” factor of the use of “Magic”
    weighs strongly in favor of a finding of fair use.
    B. The Nature of the Copyrighted Work
    In analyzing the second factor, “the nature of the
    copyrighted work,” we examine “whether the work is
    informational or creative.” Worldwide Church of God v.
    Phila. Church of God, Inc., 
    227 F.3d 1110
    , 1118 (9th Cir.
    2000). We keep in mind “that creative works are ‘closer to
    the core of intended copyright protection’ than informational
    and functional works.” Dr. Seuss Enters. v. Penguin Books
    USA, Inc., 
    109 F.3d 1394
    , 1402 (9th Cir. 1997) (quoting
    
    Campbell, 510 U.S. at 586
    ).           Because the original
    arrangement of the song “Magic” is undoubtedly creative,
    this factor weighs against a finding of fair use. See
    
    Leadsinger, 512 F.3d at 531
    (recognizing that “[o]riginal
    song lyrics are a work of creative expression”).
    C. The Amount and Substantiality of the Portion Used in
    Relation to the Copyrighted Work as a Whole
    The third factor examines whether “the amount and
    substantiality of the portion used in relation to the
    copyrighted work as a whole . . . [is] reasonable in relation
    to the purpose of the copying.” 
    Campbell, 510 U.S. at 586
    .
    “[W]e recognize that the extent of permissible copying
    varies with the purpose and character of the use.”
    Id. at 586–
    87; see 4 Nimmer § 13.05[A][3] (“The proper analysis here
    includes a determination of not just quantitative, but also
    qualitative substantiality.”). As a result, “this factor
    necessarily overlaps somewhat with the first factor.” 
    Seltzer, 725 F.3d at 1178
    . “If the secondary user only copies as much
    as is necessary for his or her intended use, then this factor
    will not weigh against” fair use. Kelly v. Arriba Soft Corp.,
    
    336 F.3d 811
    , 820–21 (9th Cir. 2003).
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   23
    Here, the segment taken from the song “Magic” is
    approximately twenty seconds of a four-minute and twenty-
    two second song. The portion that was used, however,
    incorporates the song’s principle chorus, which is the central
    element of the musical work, and is repeated more than once.
    Thus, the copied portion is undoubtedly a qualitatively
    significant portion of “Magic.” See 
    Campbell, 510 U.S. at 587
    –89. However, as the Supreme Court has explained in
    discussing both parody and news reporting, “context is
    everything, and the question of fairness asks what else the
    [copier] did besides go to the heart of the original.”
    Id. at 589.
    Even “entire verbatim reproductions are justifiable
    where the purpose of the work differs [enough] from the
    original.” Mattel, Inc. v. Walking Mountain Prods., 
    353 F.3d 792
    , 803 n.8 (9th Cir. 2003) (citing 
    Kelly, 336 F.3d at 821
    ).
    In this case, Greene’s rearrangement did not simply copy
    several lines from one chorus of the song and repeat it, but
    embedded that portion into a larger, transformative choir
    showpiece that incorporated many other works, and imbued
    that entire piece with new expression and meaning not
    contained within any of the individual works. Carroll thus
    “departed markedly from” the original lyrics, 
    Campbell, 510 U.S. at 589
    , incorporating the chorus of “Magic” into a
    new and different story that also furthered high school
    students’ musical learning and development. The new work
    is not a verbatim copy, nor one in which the transformative
    use “is so insubstantial, as compared to the copying, that the
    third factor must be resolved as a matter of law against the
    [Defendants].”
    Id. In light
    of Carroll’s non-profit educational and
    transformative use of “Magic,” the amount and substantiality
    of the portion used does not weigh against of fair use.
    24   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    D. The Effect of the Use Upon the Potential Market for or
    Value of the Copyrighted Work
    The fourth factor, “the effect of the use upon the
    potential market for or value of the copyrighted work,”
    17 U.S.C. § 107(4), requires us “to consider not only the
    extent of market harm caused by the particular actions of the
    alleged infringer, but also whether unrestricted and
    widespread conduct of the sort engaged in by the defendant
    would result in a substantially adverse impact on the
    potential market for the original,” 
    Campbell, 510 U.S. at 590
    (alterations and quotations omitted). “This inquiry must take
    account not only of harm to the original but also of harm to
    the market for derivative works.” Harper & 
    Row, 471 U.S. at 568
    . When, as here, a use is plainly transformative,
    “market substitution is at least less certain, and market harm
    may not be so readily inferred.” 
    Campbell, 510 U.S. at 591
    .
    Carroll and the Boosters Club submitted uncontroverted
    evidence that the sheet music incorporating twenty seconds
    of “Magic” was used only by students and their
    accompanists during the show choir’s extracurricular
    activities as part of their performance of a new work.
    Although the creation of sheet music incorporating the
    copyrighted work is a derivative use, the twenty seconds
    used in the “Rainmaker” choir piece is not a substitute for
    the song “Magic.” See SOFA 
    Entm’t, 709 F.3d at 1280
    (“Where the secondary use is not a substitute for the original
    and does not deprive the copyright holder of a derivative use,
    the fourth factor weighs in favor of fair use.”).
    As Professor Nimmer explains, “if, regardless of
    medium, defendant’s work performs a different function
    from plaintiff’s, then notwithstanding its use of substantially
    similar material, the defense of fair use may prevail.” 4
    Nimmer § 13.05[B][1]. Fair use exists when “[t]hose
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   25
    interested in obtaining plaintiff’s music for musical purposes
    would not find their need fulfilled by purchasing” the
    defendant’s allegedly infringing work. Id.; cf. 
    Campbell, 510 U.S. at 591
    (explaining that parody is not likely to
    substitute for an original work because the two “usually
    serve different market functions”). A consumer interested in
    acquiring sheet music for “Magic” would not purchase the
    sheet music for “Rainmaker,” as it omits much of the song
    except the chorus, and even the portions that are included are
    substantially rearranged. Similarly, a person wishing to
    purchase the sheet music for “Magic” in order to play or
    perform that song would necessarily purchase the sheet
    music for the song itself from the owner of the performance
    rights—not the sheet music for “Rainmaker.” See 
    Kelly, 336 F.3d at 821
    –22 (finding no market harm where a person
    could not use the allegedly infringing work, a thumbnail
    photograph, as a substitute for the copyrighted high-
    resolution photograph); L.A. News 
    Serv., 305 F.3d at 941
    (finding a transformative use of a news clip on Court TV
    “quite unlikely to affect the relevant market”). Thus, the use
    of “Magic” in “Rainmaker” does not affect the consumer
    market for the sheet music in the song at all. It is difficult to
    see how even widespread and unrestricted use of the chorus,
    in the context of nonprofit show choir performances, could
    displace the market for sheet music for the entire song.
    Of course, “it is a given in every fair use case that
    plaintiff suffers a loss of a potential market if that potential
    is defined as the theoretical market for licensing the very use
    at bar.” 4 Nimmer § 13.05[A][4]; see also Pierre N. Leval,
    Toward a Fair Use Standard, 103 Harv. L. Rev. 1105, 1124
    (1990) (“By definition every fair use involves some loss of
    royalty revenue because the secondary user has not paid
    royalties.”). However, “a copyright holder cannot prevent
    others from entering fair use markets merely ‘by developing
    26       TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    or licensing a market for parody, news reporting,
    educational, or other transformative uses of its own creative
    work.’” Bill Graham Archives v. Dorling Kindersley Ltd.,
    
    448 F.3d 605
    , 614–15 (2d Cir. 2006) (quoting Castle Rock
    Entm’t Inc. v. Carol Publ’g Grp., 
    150 F.3d 132
    , 145 n.11 (2d
    Cir. 1998)). Nor does the decision by secondary users to
    pay, or not pay, establish whether fair use exists. See
    
    Campbell, 510 U.S. at 585
    n.18. Because the use in this case
    “falls within a transformative market,” Tresóna was not
    harmed by the loss of any fees for the licensing of the song
    “Magic.” Bill Graham 
    Archives, 448 F.3d at 615
    .
    E. Conclusion
    We weigh each of these factors in light of the Copyright
    Act’s purpose “to stimulate artistic creativity for the general
    public good.” Twentieth Century Music Corp. v. Aiken,
    
    422 U.S. 151
    , 156 (1975). The educational use of “Magic”
    falls into an enumerated fair use purpose and three of the
    four factors we consider are neutral or weigh in favor of
    finding that Defendants’ use of “Magic” was fair use. We
    are especially swayed here by the limited and transformative
    nature of the use and the work’s nonprofit educational
    purposes in enhancing the educational experience of high
    school students. We conclude that Carroll’s use of a small
    portion of the song “Magic,” along with portions of other
    songs, to create sheet music for a new and different high
    school choir showpiece performance was a fair use. 6
    6
    Because we affirm the district court’s grant of summary judgment
    as to Carroll on the alternative ground of fair use, we also affirm the
    district court’s grant of summary judgment on Tresóna’s claim for
    vicarious copyright infringement against the Boosters Club and parents
    on this ground. See Fox Broad. Co., Inc. v. Dish Network, LLC, 
    747 F.3d 1060
    , 1068 (9th Cir. 2014) (“Secondary liability for copyright
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N     27
    V. ATTORNEYS’ FEES
    The district court denied attorneys’ fees to Defendants
    because it granted summary judgment on grounds of
    standing and qualified immunity, procedural issues it found
    unrelated to the purposes of copyright. Having declined to
    rule on the critical question of fair use, the district court
    found that Defendants’ status as the prevailing party did not
    weigh as heavily toward an award of attorneys’ fees. But
    Defendants’ fair use defense, upon which we rely in part
    today, goes to the heart of the copyright dispute in this case.
    Indeed, even in its qualified immunity ruling, the district
    court analyzed fair use to the extent that it found that it was
    reasonable for Carroll to believe that his use was
    noninfringing.
    Under section 505 of the Copyright Act, a district court
    may award a “reasonable attorney’s fee” and costs to the
    prevailing party. See 17 U.S.C. § 505. “[D]efendants who
    seek to advance a variety of meritorious copyright defenses
    should be encouraged to litigate them to the same extent that
    plaintiffs are encouraged to litigate meritorious claims of
    infringement.” Fogerty v. Fantasy, Inc., 
    510 U.S. 517
    , 527
    (1994). The touchstone of the decision to award attorneys’
    fees is whether the successful defense, and the circumstances
    surrounding it, further the Copyright Act’s “essential goals.”
    Kirtsaeng v. John Wiley & Sons, Inc, 
    136 S. Ct. 1979
    , 1989
    (2016). Courts “may consider (but [are] not limited to) five
    factors in making an attorneys’ fees determination . . . (1) the
    degree of success obtained, (2) frivolousness,
    (3) motivation, (4) [objective] reasonableness of [the] losing
    infringement does not exist in the absence of direct infringement by a
    third party.” (quoting A&M Records, Inc. v. Napster, Inc., 
    239 F.3d 1004
    , 1013 n.2 (9th Cir. 2001))).
    28   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    party’s legal and factual arguments, and (5) the need to
    advance considerations of compensation and deterrence.”
    Wall Data Inc. v. L.A. Cty. Sheriff’s Dep’t, 
    447 F.3d 769
    ,
    787 (9th Cir. 2006). Substantial weight should be accorded
    to the fourth factor. Shame On 
    You, 893 F.3d at 666
    (citing
    
    Kirtsaeng, 136 S. Ct. at 1985
    , 1989).
    Defendants prevailed across the board in this action in
    the district court and won a ruling on their fair use defense
    on appeal. This complete success weighs in favor of an
    award of attorneys’ fees. See
    id. at 667;
    Glacier Films
    (USA), Inc. v. Turchin, 
    896 F.3d 1033
    , 1038 (9th Cir. 2018).
    Although the district court properly noted that a fee award is
    less justified when “copyright defendants do not . . . reach
    the merits, prevailing instead on technical defenses,”
    Fantasy, Inc. v. Fogerty, 
    94 F.3d 553
    , 560 (9th Cir. 1996),
    Defendants have now prevailed on their defense of fair use,
    a substantive defense at the heart of copyright law. As we
    have previously recognized, “[w]hen a fee award encourages
    a defendant to litigate a meritorious fair use claim against an
    unreasonable claim of infringement, the policies of the
    Copyright Act are served.” SOFA 
    Entm’t, 709 F.3d at 1280
    .
    We examine objective reasonableness next, because that
    factor is given “substantial” weight. Shame On 
    You, 893 F.3d at 666
    . While “a legal argument that loses is not
    necessarily unreasonable,”
    id., this is
    not “a close and
    difficult case,” 
    Seltzer, 725 F.3d at 1181
    . Rather, Tresóna’s
    arguments are objectively unreasonable. As to standing,
    Tresóna should have known that Sybersound rendered its
    chances of prevailing on three of the four songs remaining at
    summary judgment “slim to none.” SOFA 
    Entm’t, 709 F.3d at 1280
    . Tresóna’s argument that Minden Pictures overruled
    Sybersound ignored the significant differences between
    those two cases.          The argument was also legally
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   29
    unreasonable because our opinion in Minden Pictures did
    not purport to overrule Sybersound; nor did it address the
    precise standing issue decided in Sybersound and Corbello.
    Tresóna’s fair use argument as to the one song it did have
    exclusive rights to, “Magic,” was likewise objectively
    unreasonable. Seltzer, in which we confronted “a close and
    difficult case” and found an action for infringement
    reasonable, is instructive in its 
    differences. 725 F.3d at 1181
    .
    There, the band Green Day used a drawing of Scream Icon,
    a screaming, contorted face, in a video backdrop for a
    commercial concert tour.
    Id. at 1173–74.
    We explained that
    the “transformation was far from obvious given Green Day’s
    only slight alterations to the original,” and each of the
    remaining three fair use factors pointed in a different
    direction: the second factor weighed against fair use, the
    third was neutral, and the fourth weighed in favor of fair use.
    Id. at 1181.
    Here, in contrast, the use falls plainly within the
    enumerated fair use purposes of “teaching” and “nonprofit
    education[],” 17 US.C. § 107, and the portions of the song
    taken were used in a highly transformative work.
    Tresóna did more than simply pursue an aggressive
    litigation strategy. It sued a public school teacher, a not-for-
    profit Boosters Club, and parent volunteers. Both during
    litigation, and in pre-litigation communications with Carroll,
    Tresóna repeatedly mischaracterized its copyright interests
    in the songs at issue by claiming to be the sole entity
    empowered to issue licenses. In light of Tresóna’s minimal
    and belatedly produced evidence supporting its claimed
    chain-of-title, these communications appear specifically
    designed to frighten Carroll and the Boosters Club into
    purchasing licenses from Tresóna, rather than to legitimately
    enforce its limited licensing interests or those of the true
    copyright owners. Indeed, Tresóna’s initial complaint
    30   TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N
    alleged exclusive rights in 79 songs used by the Burbank
    show choirs. And it was not until after briefing on Carroll’s
    summary judgment motion was complete that Tresóna
    belatedly produced any evidence of its chain of title, which
    demonstrated its claimed interests were almost entirely
    unsubstantiated. None of these actions furthers the purposes
    of the Copyright Act. SOFA 
    Entm’t, 709 F.3d at 1280
    –81.
    Courts have a legitimate interest in deterring the type of
    litigation conduct in which Tresóna engaged, and in
    compensating those who have been harmed by such conduct.
    Although the district court noted that it “[did] not believe
    that [Tresóna] will groundlessly reassert these claims,” the
    basis for that finding is unclear. Tresóna groundlessly
    asserted at least three claims of infringement in this very
    case, while simultaneously representing that it could have
    brought many more such claims. And while, after almost
    four years of litigation, Tresóna turned out to have standing
    as to the fourth remaining claim of infringement, it lost both
    in the district court and on appeal on two independent legal
    theories. As much of this litigation was avoidable from the
    beginning based on settled law when Tresóna filed its
    complaint, awarding attorneys’ fees to Defendants
    appropriately serves the interest in deterrence.           See
    
    Kirtsaeng, 136 S. Ct. at 1987
    (explaining that awarding fees
    encourages “[t]he copyright holder with no reasonable
    infringement claim . . . not to bring suit in the first
    instance”).
    Awarding Defendants their attorneys’ fees insures that
    they are properly compensated for defending against
    overreaching claims of copyright infringement and pressing
    a defense that benefits those educating our youth. An award
    of attorneys’ fees here assures that “an overzealous
    monopolist [cannot] use his copyright to stamp out the very
    TRESÓNA MULTIMEDIA V. BURBANK HIGH SCH. VOCAL MUSIC ASS’N   31
    creativity that the [Copyright] Act seeks to ignite,” SOFA
    
    Entm’t, 709 F.3d at 1278
    , allowing for greater breathing
    room for classroom educators and those involved in similar
    educational extracurricular activities.
    The district court abused its discretion in denying
    Defendants’ motion for attorneys’ fees. We therefore award
    Defendants’ attorneys’ fees and remand to the district court
    for the calculation of the award. See Mag Jewelry Co. v.
    Cherokee, Inc., 
    496 F.3d 108
    , 124 (1st Cir. 2007) (reversing
    the district court’s denial of fees and remanding for the
    calculation of the amount).
    VI. CONCLUSION
    We affirm the grant of summary judgment in favor of
    Defendants but reverse the denial of attorneys’ fees under
    17 U.S.C. § 505.
    Costs on appeal shall be awarded to Defendants.
    AFFIRMED IN PART; REVERSED IN PART;
    REMANDED.
    

Document Info

Docket Number: 17-56006

Filed Date: 3/24/2020

Precedential Status: Precedential

Modified Date: 3/24/2020

Authorities (29)

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