After selling 100 "bootleg" DVDs of unreleased movies to an undercover
federal agent on June 11, 2003, and then selling 200 more to the same agent on
January 13, 2004, David Armstead was indicted and convicted on two felony counts
of willful copyright infringement for private financial gain by distributing at
least 10 unauthorized DVDs on each occasion, having "a total retail value of
more than $2,500," in violation of 17 U.S.C. § 506(a)(1) and 18 U.S.C. §
2319(b)(1). At trial, Armstead contested only the total retail value of the DVDs
sold and urged that he be convicted of only misdemeanors for selling DVDs with a
total retail value of $2,500 or less. See 18 U.S.C. § 2319(b)(3). The jury,
however, convicted Armstead of the felony charges, and he was sentenced to six
months’ home detention.
On appeal, Armstead focuses on the fact that he sold the DVDs in the first
transaction for a total of $500 and in the second transaction for a total of
$1,000, and that the government offered no adequate alternative value to prove
that the "total retail value" of the DVDs sold in each transaction was more than
$2,500, as required for felony convictions. He requests that we vacate the
felony convictions and enter judgments for misdemeanor offenses, remanding the
case for resentencing accordingly.
As a matter of first impression, we hold that "retail value" as used in 18
U.S.C. § 2319(b)(1) refers to the value of copies of the copyrighted material at
the time the defendant committed the violation and sold the copies and that the
retail value is determined by taking the highest of the "face value," "par
value," or "market value" of copies of the copyrighted material in a retail
context. See 18 U.S.C. § 2311. Because the evidence of retail value, so
construed, supported felony convictions, we affirm.
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