Intellectual Property News and Reports

The panel affirmed the district court’s order denying defendants’ motion to discharge a receiver who had been appointed to aid in the execution of a judgment for violations of the Copyright Act.

The district court appointed the receiver and authorized him to sell defendants’ property—three radio stations—to generate the funds needed to satisfy the judgment. Contending that they had satisfied the judgment by depositing certain sums with the district court, defendants moved to discharge the receiver, terminate the receivership, and enjointhe sale of the radio stations. The district court denied the motion, holding that it was within its discretion to prolong the receivership in order to protect other creditors and ensure that the receiver would be paid for his services.

Agreeing with the First Circuit, the panel held that, even assuming defendants satisfied the judgment, it was within the district court’s discretion to prolong the receivership. The panel further held that the district court did not abuse its discretion in denying defendants’ motion to terminate the receivership. The district court offered valid reasons for not terminating the receivership—protecting creditors, permitting the receiver to prepare a final accounting, ensuring that the receiver would be compensated for his time, and seeing to it that obligations incurred during the receivership would be paid. The panel held that, given defendants’ history of nonpayment, the district court acted within its broad discretion.

The panel declined to address, for the first time on appeal, defendants’ argument that the receivership was void ab initio.

Download WB MUSIC CORP. V. ROYCE INTL. BROADCASTING CORP.