Shapiro, Bernstein and Co. v. H.L. Green Co.

Shapiro, Bernstein and Co. v. H.L. Green Co., 316 F.2d 304 (2d Cir. 1963), represents a pivotal decision concerning secondary liability (also known as vicarious liability) for copyright violations under Section 101(e) of the Copyright Act.

Underlying action

The initial proceedings took place in the United States District Court for the Southern District of New York, presided over by Judge Thomas F. Murphy.

The plaintiff, Shapiro, Bernstein and Co., which held specific copyrights, initiated legal action against two parties: Jalen Amusement Company, Inc., a record concessionaire accused of distributing unauthorized copies infringing those copyrights; and H. L. Green Company, a retail chain that hosted Jalen's concession and was charged with contributory liability due to its business association with Jalen. The district court determined that Jalen was liable but concluded as a matter of law that H.L. Green could not be held contributorily liable based on its connection to Jalen, resulting in dismissal of the claims against Green. Shapiro challenged this legal determination through appeal.

Holding

The Court of Appeals, with Judge Kaufman delivering the opinion, found H.L. Green responsible for the illicit sale of infringing records. The ruling underscored that the store owner exercised ultimate control over the record concession and its staff while also receiving a portion of the gross revenue from record sales. Crucially, the court ruled that actual awareness of the infringement was not necessary to impose liability.