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Unformatted text preview: 1 COLUMBIA PICTURES INDUSTRIES, INC. v. REDD HORNE, INC. 749 F.2d 154 (3d Cir. 1984) RE, Chief Judge: In this copyright infringement case, defendants appeal from an order of the United States Dis- trict Court for the Western District of Pennsylvania which granted the plaintiffs' motion for sum- mary judgment, and enjoined defendants from exhibiting plaintiffs' copyrighted motion pictures. The defendants, Redd Horne, Inc., Maxwell's Video Showcase, Ltd., Glenn W. Zeny and Robert Zeny, also appeal from the dismissal of their antitrust counterclaims, and from an award of damages against them in the amount of $44,750.00. Defendant-appellants raise three questions on this appeal: (1) whether the activities of the de- fendant Maxwell's Video Showcase, Ltd., (Maxwell's) constitute an infringement of plaintiffs' copy- right protections which would entitle the plaintiffs to injunctive relief and damages; (2) if so, whether the activities of the other defendants, Robert Zeny, the president and sole shareholder of Maxwell's, Redd Horne, Inc., Maxwell's advertising and public relations firm, and Glenn W. Zeny, the president of Redd Horne, Inc., and Robert Zeny's brother, are sufficient to hold each of them liable as co-infringers with Maxwell's; and (3) whether the antitrust counterclaims of the defendants were properly dismissed by the district court. Since we agree with the district court, we affirm. The Facts Maxwell's Video Showcase, Ltd., operates two stores in Erie, Pennsylvania. At these two facili- ties, Maxwell's sells and rents video cassette recorders and prerecorded video cassettes, and sells blank video cassette cartridges. These activities are not the subject of the plaintiffs' complaint. The copyright infringement issue in this case arises from defendants' exhibition of video cassettes of the plaintiffs' films, or what defendants euphemistically refer to as their "showcasing" or "in-store rental" concept. Each store contains a small showroom area in the front of the store, and a "showcase" or exhibi- tion area in the rear. The front showroom contains video equipment [*157] and materials for sale or rent, as well as dispensing machines for popcorn and carbonated beverages. Movie posters are also displayed in this front area. In the rear "showcase" area, patrons may view any of an assort- ment of video cassettes in small, private booths with space for two to four people. There are a total of eighty-five booths in the two stores. Each booth or room is approximately four feet by six feet and is carpeted on the floor and walls. In the front there is a nineteen inch color television and an upholstered bench in the back. The procedure followed by a patron wishing to utilize one of the viewing booths or rooms is the same at both facilities. The customer selects a film from a catalogue which contains the titles of available films. The fee charged by Maxwell's depends on the number of people in the viewing room, and the time of day. The price is $5.00 for one or two people before 6 p.m., and $6.00 for The price is $5....
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