Website not entitled to court finding that future uses of Eminem songs would be fair use

Shady Records, Inc. (“Shady”), filed suit against Source Enterprises, Inc. (“Source”) and others for copyright infringement arising from Source’s publication on its website of various songs by Marshall Mathers III (widely a/k/a “Eminem”). After a long process of litigation leading up to trial, Shady moved to voluntarily dismiss its claims of copyright infringement. Accordingly, the court dismissed the action with prejudice.

While most defendants would be fully satisfied by the plaintiff voluntarily withdrawing its claims and the court dismissing the action with prejudice, Source wanted some extra conditions imposed on the dismissal. One of the requested conditions was for the court to memorialize a finding that Source’s past use of the Eminem songs on its website was fair use. Furthermore, Source asked the court to determine that any future use of the Eminem songs would also constitute fair use.

The court declined to add these extra conditions to the dismissal order. It noted that Source “misconceive[d] the consequences of a successful result in this case.” Questions of fair use are highly fact-intensive, and the court held that “it would, indeed, be highly inappropriate . . to issue an advisory opinion about any particular hypothetical use of the material in the future. . . .” The dismissal with prejudice means that Shady is not entitled to any relief based on Source’s past actions. “That is the totality of the adjudication that defendants are entitled to, and that is what they will receive by the [dismissal of the action].”

Shady Records, Inc. v. Source Enterprises, Inc., 2005 WL 696795 (S.D.N.Y., March 23, 2005).