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T-3955-75
BMI Canada Limited (Plaintiff)
v.
James William Der (Defendant)
Trial Division, Collier J.—Ottawa, March 26 and April 8, 1976.
Copyright—Injunction—Plaintiff owner of performing rights in certain musical works—Defendant permitting works to be performed on his premises, infringing plaintiff's rights— Plaintiff seeking injunction restraining performance of specific works, and any works in which it holds the rights in future— Plaintiff submitting draft judgment—Copyright Act, R.S.C. 1970, c. C-30, ss. 20, 50(9),(10)—Federal Court Rule 324.
Plaintiff, a performing rights company, owned the rights to six songs which defendant caused or permitted to be performed in his establishment without plaintiff's consent, thereby violat ing and infringing plaintiff's rights. Defendant did not file a defence, and plaintiff sought a default judgment, submitting a draft judgment, seeking (1) an injunction restraining defendant from performing the six songs in the future (2) an injunction restraining defendant from using in the future any musical work for which plaintiff holds the rights (unless, in both cases, he obtains an annual licence, or tenders single performance fees), and (3) damages, estimating the amount spent by defend ant on entertainment in 1974, in order to claim an annual licence for 1974 and 1975.
Held, plaintiff is entitled to damages, and defendant is restrained from future use of the six songs in question unless a licence is obtained, or fees tendered. Plaintiff's claim (2) for a perpetual injunction is very wide in scope. To justify it, plaintiff argued that in its statement of claim it alleged that defendant had, during 1974 and 1975, presented performances of works in which plaintiff owned the rights, and that it would continue to do so in the future. However, on the plain meaning of that part of its claim, plaintiff has simply alleged that during 1974 and 1975, defendant presented live musical entertainment to the public, and will continue to present performances of works in which plaintiff holds the rights. Based on - this barren assertion, plaintiff is not entitled to an injunction restraining defendant from ever performing any works in plaintiff's repertoire (copy- right or ownership of performing rights can subsist only in individual works). The Court's discretion to grant an injunction applies whether defendant has contested or not. To obtain such a quia timet injunction, plaintiff must plead cogent, material facts, not vague allegations, and, even on a motion for default judgment, the Court must, based on the facts, be able to conclude that the relief sought is warranted. Plaintiff has not
shown a strong probability that the apprehended wrong will arise, as is requisite in such a case.
As to plaintiff's claim for damages, it attempted to convert a claim essentially for unliquidated damages to one for a liqui dated amount. There is no allegation of infringement for 1974, nor of failure to pay fees. Plaintiff is not entitled to monetary relief for 1974. For 1975, the tariff provides that the licensee shall estimate his fee payable based on the amount paid for entertainment in 1974. The licenser is not entitled to do so. Plaintiff is not entitled to liquidated damages, but to damages or loss of profits to be assessed.
Attorney-General v. Corporation of Manchester [1893] 2 Ch. D. 87 and Matthew v. Guardian Assurance Co. (1919) 58 S.C.R. 47, applied. Composers, Authors & Publishers Association of Canada Ltd. v. Yvon Robert Lounge Inc. (1967) 51 C.P.R. 302; Composers, Authors & Publishers Association of Canada Ltd. v. Cafe Rugantino Inc. (1968) 52 C.P.R. 16; Composers, Authors & Publishers Associa tion of Canada Ltd. v. D'Aoust (La Sentinelle) (1968) 54 C.P.R. 164; Composers, Authors & Publishers Associa tion of Canada Ltd. v. Keet (1971) 1 C.P.R. (2d) 283, disagreed with.
MOTION. COUNSEL:
Y. A. George Hynna for plaintiff.
SOLICITORS:
Gowling & Henderson, Ottawa, for plaintiff.
The following are the reasons for judgment rendered in English by
COLLIER J.: This motion is brought in writing pursuant to Rule 324. The plaintiff seeks, under the appropriate Rules of Court, judgment in default of defence. The material proving the default is all in order. A draft judgment was submitted. I raised some question as to the extent of the relief spelled out in the proposed judgment and requested oral submissions on behalf of the plaintiff. Those have been made.
There are two other motions (T-4594-75 and T-3953-75) where similar applications for judg ment in default of defence are pending and where similar draft judgments have been submitted. These reasons will apply to those two actions.
The plaintiff is a performing rights company. It carries on in Canada the business of acquiring copyrights of dramatico-musical works. It deals with the issue or grant of licences for the perform ance of those works in which copyright is alleged to subsist. It is the owner of the performing rights of a large number of musical works in current use in Canada. It is entitled to sue for copyright infringement (see section 20 of the Copyright Act').
Under subsection 50(9) a performing right society can, as well, sue for or collect fees in respect of licences granted by it where the fees, charges or royalties have been approved by the Copyright Appeal Board. The tariffs of fees relied on by the plaintiff for the relevant years in this action have been duly approved by the Board.
Subsections 50(9) and (10) are pertinent. I reproduce them here:
50. (9) The statement of fees, charges or royalties so certi fied as approved by the Copyright Appeal Board shall be the fees, charges or royalties which the society, association or company concerned may respectively lawfully sue for or collect in respect of the issue or grant by it of licences for the performance of all or any of its works in Canada during the ensuing calendar year in respect of which the statements were filed as aforesaid.
(10) No such society, association or company shall have any right of action or any right to enforce any civil or summary remedy for infringement of the performing right in any dramatico-musical or musical work claimed by any such socie ty, association or company against any person who has tendered or paid to such society, association or company the fees, charges or royalties that have been approved as aforesaid. R.S., c. 55, s. 50.
The defendant to this action resides in the Town of Fairview, Alberta, and operates a public house
known as the Dragon Inn.
R.S.C. 1970, c. C-30.
All of the above facts are substantially set out in the first few paragraphs of the statement of claim. Paragraph 6 of the statement of claim goes on to set out how the fees are calculated in the case of licences granted by the plaintiff to nightclubs, hotels and other similar establishments where musical works are performed in public. The tariffs themselves provide that in the case of operators in the above categories a licensee is required to report to the plaintiff its gross entertainment expenses for the year; the plaintiff has the right to examine the licensee's books and records. Those provisions have no direct application to the defendant here. The defendant was not, at any material time, a licen see. One of the objects of the suit against him is to obtain compensation for alleged infringement because he did not in fact hold a licence or tender payment of approved fees. A further object of this suit, which I think is reasonably to be inferred from the pleadings and from the draft judgment, is to compel the defendant and others like him to take out annual licenses.
I turn now to paragraphs 8 and 9 of the state ment of claim which are, in my view, the key allegations giving rise to the claim for relief. I set them out:
8. On the night of May 30th, 1975, the defendant caused to be performed or permitted or authorized live musical entertain ment to take place in public at its premises at Fairview, Alberta. On that evening, a series of 12 musical works were performed. Of these, 6 were songs for which copyright exists in Canada and for which the performing rights therein are vested in the plaintiff. The works referred to are set out more particu larly as follows:
For The Good Times Let Me Be There Since I Met You Baby International Airport Me and Bobby McGee Blue Suede Shoes
9. The performances of the works referred to in paragraph 8 above, occurred without the consent of the plaintiff, and consti tute a violation and an infringement of the performing right held therein by the plaintiff.
The defendant by his failure to file a defence is deemed to have admitted those allegations. The plaintiff is, in my opinion, entitled to injunctive relief in respect of those particular infringing acts. I accept generally the form of the restraining
provision set out in paragraph 2 of the plaintiff's draft judgment 2 . It is as follows:
2. THIS COURT DOTH FURTHER ORDER AND ADJUDGE that, commencing as from this Judgment, the Defendant be restrained, himself or through his servants, agents, workmen or otherwise from using, performing or causing to be performed in public, on premises under his control, the musical works referred to below during the period of time for which the plaintiff has exclusive rights therein unless a licence for any of such musical works to be so used, performed or caused to be performed is obtained in accordance with the Copyright Act, R.S.C. 1970, c. C-30 and the statement of fees, charges or royalties approved under section 50 thereof.
For The Good Times
Let Me Be There
Since I Met You Baby
International Airport
Me and Boby [sic] McGee
Blue Suede Shoes
In summary up to this point, the relief sought by the plaintiff is an injunction restraining the defendant from performing, in the future, the six listed songs (in which he has already infringed copyright) unless he obtains an annual licence or tenders single performance fees.
The plaintiff's draft judgment then continues. I quote paragraph 3:
3. AND THIS COURT DOTH FURTHER ORDER AND ADJUDGE that commencing as from this Judgment, the defendant be restrained, himself, or through his servants, agents, workmen or otherwise from using, performing or causing to be performed in public, on premises under his control, musical works the per forming rights for which in Canada are owned by the plaintiff, at the date hereof and during the period of time for which the plaintiff has exclusive rights therein, unless a licence for any of such muscial [sic] works to be so used, performed or caused to be performed is obtained in accordance with the Copyright Act, R.S.C. 1970, c. C-30 and the statement of fees, charges or royalties approved under section 50 thereof.
What the plaintiff seeks here is a perpetual injunction restraining the defendant from perform ing, at any time, any works in which the plaintiff
2 Counsel for the plaintiff agreed that the proviso in para graph 2 of the draft should cover not only the situation where the defendant might obtain an annual licence to perform the particular musical works but also where he might tender the appropriate fee for a single performance of an individual work. In the latter case the fees are set out in item 19 of the plaintiff's tariff (see Canada Gazette, Part I, February 27, 1974, Vol. 108, EXTRA No. 6, and Canada Gazette, Part I, March 7, 1975, Vol. 109, EXTRA No. 9).
owns the performing rights—without specifying any particular works which the defendant has threatened to perform, or which the plaintiff rea sonably and probably fears the defendant will perform. Analogies are usually imperfect and often dangerous. Nevertheless, this is somewhat similar to a plaintiff who, having successfully proven (by default or evidence) infringement of claims 1, 2 and 3 of a patent, then claims to be entitled to enjoin the defendant from potential infringement of claims 4, 5 and 6 of the same patent; or having successfully proved the defend ant in a labour dispute should be enjoined from his present picketing activities at plaintiff's premises A, should be thereafter enjoined from picketing at any of the plaintiff's premises in any subsequent labour conflict which arises out of, for example, the same collective agreement.
It must be remembered that there is no copy right or ownership of performing rights in a reper toire. The copyright is in the individual works.
The scope of the restraining order sought in this paragraph is very wide indeed. The plaintiff, to justify it, relies on the allegations in paragraph 10 of the statement of claim, and the failure of the defendant to defend or dispute them. I set out paragraph 10:
10. The defendant has during the years 1974 and 1975 similar ly continuously presented live musical entertainment to the public and will continue to cause regular public performances of works in which the plaintiff owns the performing rights for Canada. In so doing, the defendant will further infringe the plaintiff's rights and will make profits thereby.
The plaintiff argues this is an allegation that the defendant has, during 1974 and 1975, presented live musical entertainment including public performances of works in which the plaintiff owned the performing rights, and that the defend ant will continue to present similar performances of the plaintiff's works in the future.
I do not so read paragraph 10. The defendant, as a layman, is entitled to read the allegation in its plain, ordinary meaning. As I see it, paragraph 10 alleges this:
(a) The defendant during 1974 and 1975 pre sented live musical entertainment to the public
("similarly continuously''—whatever those words mean). Assuming that to be admitted, it does not form any basis for the injunctive relief sought.
(b) The defendant [my interpretation of the remainder of paragraph 10] "... will continue to cause regular public performances of works in which the plaintiff owns the performing rights in Canada".
I do not think that I am, in that interpretation, splitting hairs or being overly technical. It is on those quoted words alone, in my view, that the plaintiff must rely in support of the broad injunc tion sought in paragraph 3 of the draft.
The plaintiff contends that the defendant by not defending this action (in whole or in part) admits that he will in fact continue to cause regular public performances which will infringe the plaintiff's rights; that the defendant in effect concedes the wide relief claimed. The plaintiff relies on, as legal authority for the broad restraining terms sought, the form of orders given in a number of cases in the Quebec Superior Court. I shall refer later to those decisions.
In my opinion, the plaintiff is not entitled to an injunction, based on the barren assertion quoted above, restraining the defendant from ever per forming any works in the plaintiff's repertoire without first obtaining an annual licence or tender ing an appropriate individual fee. The court always has a discretion as to whether or not an injunction will be granted. That discretion, as I see it, applies even if the defendant has not seen fit to appear to contest, in whole or in part, the allegations made.
In my view the plaintiff, in paragraph 10, is really seeking a form of quia timet relief. To obtain injunctive relief against that type of threat ened or apprehended harm there must, in my opinion, be pleaded cogent precise material facts' and not mere vague, skimpy allegations as done here. Even on a motion for default judgment, the Court must be able to conclude, from the material
'See Rule 408(1) "... a precise statement of the material facts...."
facts, that the relief sought is warranted by those facts.
I refer to the often-cited case of Attorney-Gen eral v. Corporation of Manchester 4 where Chitty J. reviewed a number of authorities dealing with the quia timet type of relief. He said at pages 91- 92:
The principle appears to be the same whether the alleged future nuisance is public or private. In one of the cases to which I have referred, the alleged nuisance was a public nuisance; in others a private nuisance. In some, acts had been done which, it was alleged, would result in future mischief or injury, but which had not already resulted in injury or substantial damage; in others, there was mere threat or intention. But in regard to all such cases the principle is the same. Where it is certain that the injury will arise, the Court will at once interfere by injunction; as, for instance, in the case of a threat to cut a permanent ditch across a public highway. But the Court does not require absolute certainty before it intervenes; something less will suffice (see Lord Brougham's judgment in Earl of Ripon v. Hobart (3 My. & K. 169, 176)). In Crowder v. Tinkler (19 Ves. 617) (the gunpowder case), Lord Eldon, who granted the injunction, spoke of "extreme probability of irreparable injury" (19 Ves. 622). In Attorney-General v. Mayor of Kingston, (34 L.J. (Ch.) 481; 13 W.R. 888, 891) Vice-Chancellor Wood, who refused the injunction, considered the question to be whether there was evidence of an actual nuisance committed, or "evi- dence of the extreme probability of a nuisance if that which was being done was allowed to continue." In Fleet v. Met ropolitan Asylums Board (1 Times L.R. 80; 2 Times L.R. 361, 362), the Darenth Hospital Camp case, where the hospital was in actual operation, the Court refused the injunction, Lord Justice Cotton, in his judgment, laying it down that "the plaintiffs must make out that there was real danger, otherwise, however much they might feel the hospital to be an annoyance, they could not get an injunction." The principle which I think may be properly and safely extracted from the quia timet authorities is, that the plaintiff must shew a strong case of probability that the apprehended mischief will, in fact, arise.
The court in that case was dealing with nui sance. In my view the general principle cited by Chitty J. is applicable to other types of cases as wells. The plaintiff here has not, to my mind, on
[1893] 2 Ch. D. 87.
3 Attorney-General v. Corporation of Manchester was referred to with approval by Anglin J. in Matthew v. Guardian Assurance Co. (1919) 58 S.C.R. 47 at page 61. In the latter case an injunction was sought to prevent an insurance agent from obtaining, as attorney for a fire insurance company, a licence under the appropriate British Columbia legislation.
the matters asserted in the pleading, shown a strong probability that the apprehended wrong will, in fact, arise.
The Quebec Superior Court decisions are as follows: Composers, Authors & Publishers Asso ciation of Canada Ltd. v. Yvon Robert Lounge Inc. (1967) 51 C.P.R. 302; Composers, Authors & Publishers Association of Canada Ltd. v. Cafe Rugantino Inc. (1968) 52 C.P.R. 16; Composers, Authors & Publishers Association of Canada Ltd. v. D'Aoust (La Sentinelle) (1968) 54 C.P.R. 164 and Composers, Authors & Publishers Associa tion of Canada Ltd. v. Keet (1971) 1 C.P.R. (2d) 283.
Those judgments are of course not binding on this Court. So far as I can see the points I now raise were not raised in those cases. The editors of the Canadian Patent Reporter were, I venture to suggest, startled by the width of the injunction granted in the first cited of the above cases. The editorial note reads as follows:
The significance of the present report is to be found in the broad scope of the injunction. It was not limited to the specific works infringed. It related to any musical work owned by the plaintiff.
In the subsequent cases, there was further simi lar editorial comment as to the wide extent of the injunctions allowed.
I am not prepared, on the facts of the case before me, nor on principle, to grant the relief sought in paragraph 3 of the draft judgment.
There is one remaining point. Paragraph 1 of the draft judgment reads:
1. THIS COURT DOTH ORDER AND ADJUDGE that the said Plain tiff recover from the said Defendant the sum of $220.00 on account of fees for the years 1974 and 1975.
This clause is based on the matters alleged in paragraph 11 of the statement of claim, which I quote:
11. During the year 1974 the defendant caused to be spent for the procurement of entertainment of which music formed a part on its aforesaid premises the sum of $12,000.00. Fees payable for a licence for the year 1974 in accordance with the
Tariffs referred to in paragraph 7 amount to $110.00. The estimated fee payable for the year 1975 in accordance with the said Tariffs amounts to $110.00.
That paragraph of the statement of claim comes from the provisions of item 2 of the tariffs set out in the 1974 and 1975 Gazette references. I quote the relevant portions of the 1974 reference (the 1975 reference is the same, with, however, neces sary changes in respect of the particular years referred to):
2. CABARETS, CAFES, CLUBS, COCKTAIL BARS, DINING ROOMS, HOTELS, LOUNGES, RESTAURANTS, ROADHOUSES, TAVERNS, AND SIMILAR ESTABLISHMENTS
BMI CANADA LIMITED may collect a fee from the occupiers or operators of cabarets, cafes, clubs, cocktail bars, dining rooms, hotels, lounges, restaurants, roadhouses, taverns, and similar establishments where live music is publicly performed. The establishment shall estimate the fee payable for 1974 based on the amount paid by such establishment in the calendar year 1973 for entertainment of which music formed a part and shall pay such estimated fee to BMI CANADA LIMITED on or before the last day of January 1974.
If performances of music have not taken place for the entire year 1973, a report shall be made estimating the amount which shall be expended for the year 1974.
On or before January 31, 1975, an adjustment of the licence fee paid shall be made on the basis of the amount paid by such establishment in the calendar year 1974 for entertainment of which music formed a part. Any additional fee due shall then be paid to BMI CANADA LIMITED and if the fee due is less than the amount paid, the establishment shall be credited with the amount of such overpayment.
The amount paid for entertainment of which music formed a part is the total amount paid to the orchestra, singers and all other performers who provide entertainment of which music formed a part. The amount paid for such entertainment shall not include amounts expended by the licensee for stage props, lighting equipment, set design and costumes, or expenditures for renovation, expansion of facilities or furniture and equipment.
The plaintiff here, as I see it, is trying to convert what is essentially a claim for unliquidated dam ages or an accounting of profits into a claim for a liquidated amount. The plaintiff estimates the monies spent by the defendant on entertainment in 1974 in order to claim an annual licence fee of $110 for that year and also for 1975. I point out, firstly, there is no allegation of infringement by the defendant in 1974, nor any allegation of failure
to pay any licence fees. The plaintiff is therefore not entitled to any monetary relief by way of damages for the year 1974.
In respect of 1975, item 2 of the tariff provides that the licensee shall estimate the licence fee payable for 1975 based on the amount paid by him for entertainment in 1974. The tariff does not authorize the Performing Right Society (the lic- enser) to estimate the annual fee.
It may well be that the tariff set out in item 2 would be a useful guide to the tribunal which has the task of assessing the damages or profits to which the plaintiff might be entitled. It may also well be that the tribunal might find item 17 of the tariff a more useful guide.
In respect of the monetary damages claimed it is my view the plaintiff is not entitled in this proceed ing to judgment for a liquidated amount. It is entitled to damages or loss of profits, to be assessed. I direct a reference on that point. The judgment I am prepared to grant is as follows (it will be the pronouncement pursuant to Rule 337):
JUDGMENT
1. This court orders and adjudges that the plain tiff recover from the defendant damages or profits to be assessed, and that there be a reference to determine the amount of damages or profits. The profits or damages so determined shall be paid by the defendant to the plaintiff forthwith after the determination thereof.
2. This court further orders and adjudges that, commencing as from this judgment, the defendant be restrained, himself or through his servants, agents, workmen or otherwise from using, per forming or causing to be performed in public, on premises under his control, the musical works referred to below during the period of time for which the plaintiff has exclusive rights therein unless a licence for any of such musical works to be so used, performed or caused to be performed is obtained, or fees tendered, in accordance with the
Copyright Act, R.S.C. 1970, c. C-30 and the statement of fees, charges or royalties approved under section 50 thereof:
For The Good Times Let Me Be There
Since I Met You Baby International Airport Me and Bobby McGee Blue Suede Shoes
3. And this court further orders and adjudges that the plaintiff recover from the defendant, after taxation, its costs of this action.
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