In another nationwide precedent-setting case tried by Callahan & Blaine, Fonovisa v. Cherry Auction, swap meet owners were found liable for vicarious and contributory copyright and trademark infringement when counterfeit merchandise is sold by independent vendors at swap meets.
The Ninth Circuit determined that swap meet owners sufficiently control their premises enough to know if copyright and trademark violations are occurring, and they have an indirect financial stake in sales of illegal products. The court recognized that this case was the first to reach a federal appellate court regarding vicarious liability for trademark and copyright infringement.
Callahan & Blaine’s client, Fonovisa, owns copyrights and trademarks for Latin music recordings and owns the Fonovisa record label. Fonovisa had sued Cherry Auction in 1993, but lost in the Federal District Court. The Ninth Circuit reversed this lower court ruling and held Cherry Auction liable for Fonovisa’s damages.
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If you are involved in a business legal matter, contact Callahan & Blaine to discuss your case today.