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Justice Department Announces First Ever Conviction For Infringing copyrights in karaoke song recordings

Minneapolis - A Minnesota woman today pleaded guilty to conspiring to willfully reproduce and distribute hundreds of thousands of infringing copies of copyright-protected karaoke sound recordings that were pre-loaded onto computer hard drives and then sold on eBay and other online auction sites, U.S. Attorney Rachel K. Paulose for the District of Minnesota announced today.

Tracy Ann Brock, 43, of Burnsville, Minnesota, pleaded guilty to a one-count felony information charging her with conspiracy to commit criminal copyright infringement. The plea was entered before United States District Judge David S. Doty. Ms. Brock faces up to five years in prison, a fine of $250,000, and three years of supervised release.

Ms. Brock's conviction is the first ever criminal conviction related to infringement of copyrighted karaoke music and is part of the Department of Justice's broader initiative to combat online auction piracy. From April 2004 and continuing until July 2006, Ms, Brock, as President and co-owner of Star Music, Inc., conspired to reproduce and upload hundreds of thousands of infringing copies of copyright-protected karaoke songs, worth hundreds of thousands of dollars, onto hundreds of computer hard drives. During this time, Ms. Brock also conspired to sell these pre-loaded computer hard drives for profit through various entities and websites, including eBay.

Federal Bureau of Investigation agents identified Ms. Brock as a suspect and executed a search warrant at her residence in Burnsvilie, Minnesota, on July 28,2006. Agents seized large quantities of CDs, computers, and other storage devices used to reproduce, upload, and store the pirated songs onto hard drives, which were then later sold on eBay and other online auction sites.

United States Attorney Rachel K, Paulose said, "Protecting intellectual property is a unique purview of the federal government. We are grateful for the leadership of the Computer Crime and Intellectual Property Section, the Minnesota Cyber Crimes Task Force, FBI, Secret Service, and Postal Inspection Service in working with our prosecutors to do justice in this case."

This case was investigated by the Minnesota Cyber Crimes Task Force, which included the Federal Bureau of Investigation, the United States Secret Service, and the United States Postal Inspection Service.

The case is being prosecuted by John H. Zacharia, Trial Attorney for the Computer Crime and Intellectual Property Section of the Criminal Division, and Frank J. Magill and James S. Alexander, Assistant U.S. Attorneys for the District of Minnesota.

This is actually a few months old now, but again it isn't a simple hard drive user that simply converted their own library to use for play, it was for mass reproductions AND mass distribution through ebay type sites.

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they gotta start somewhere....

Are you saying that everyone with a computerized system should eventually be prosecuted?

This is nothing new except the word KARAOKE FILES.  The government has been prosecuting these type of MASS duplicators for years.  Whether it was CASSETTE TAPES - VHS MOVIES  - CD'S - DVDS AND NOW HARDRIVES whether they have mp3 mpr mp3+gs.  The greedy people who take 1 hardrive and mass copy to sell fro a profit ARE criminals.

Lonman is right this is a few months old, however as of August 9, 2007 the second conviction has occured. Tray Brocks partner, Sonny Freeman was convicted of 3 felony counts.
1.Conspiricy to Commit Copyright Infringement
2.Criminal Copyright Infringement
3.Trafficking in Circumvention Technology in violation of the DMCA He has the same possible jail term 5 years and the same fines as Tracy Brock. However he also has given up, in order to obtain this plea agreement.
1. one car
2. one trailer
3. two jet skis
4. two Sea Ray boats
5. his home in Florida
6. two bank accounts
7. one brokerage account
These things were confiscated and are worth just under 2 million dollars.
What's truly the most interesting count is count 3 and the fact that using software that was designed to manage, organize and run a karaoke show.
FYI, I was also told recently that Panorama just lost it's appeal in the sixth circuit court for it's music being protected by the fair use act.

Anybody looking for work ?
Here's somebody who's hiring !
Karaoke Available!

Star Music is currently looking to open up new karaoke locations. ... Tracy Brock. 952-892-SING (7464) tbrock@isd.net. MAKE SURE YOU MENTION CRAIGSLIST. ...

This womans revenue from selling pirated material was well over 1 million.  This was no 1:1 format shifting case where intent, reasonable accomodation, good faith are questionable.

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But again they were busted for MASS copying & MASS distribution - the people who bought those drives should be nailed as well.   As far as count 3 it looks to me as if they were giving away players with illegal key codes so that the buyer of the illegal music could play said illegal music.
Not for a simple computer user ripping their own discs for the intention of playback on 1 system only.

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Boy she was asking for it - Dah put a website out selling illegal downloads. What was she thinking.

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THAT was intense!

She was a high volume seller on Ebay (profiting off've this pirated stuff for over two years). She was quite visible.  In this case it's easy for prosecution to show monetary damage.

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Northeast United States runner up for the "Singing Hall of Shame".

Matt Thm was my main source for new music. Im not buying much now just a few ... But I sure question the future of the karaoke industry. In Merle Haggards words a snowball headed for hell!!!  LOL

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Stephen, This is a criminal case not a civil case, the prosecution doesn't have to prove damages just the breaking of the law. I'm not sure why your talking damages? pls explain

This is actually a Civil and Criminal case.  What makes this a Felony that's being brought to Federal Court IS substantiated based on *dollar amount*.  These cases are ALWAYS about money damages. Otherwise great expense is doled out by the Plaintiff to only find that a court will dismiss it as a de minimus case.  What makes everybody certain that "monetary damage" will have no importance in the restitution phase ?  That usually settled via monetary relief.  Your hearing what :could: be, but remedies for infringement based upon damages and profit have been totally ruled out where ? They haven't been yet.  

There are options, alternative resolutions, and plea-bargaining tactics. The section on Copyright infringement and remedies (if you view 504 a,b,c & d) gives many options, and where it states "generally" regarding "Damages and Profits" vs "Statutory Penalty" (section 504 part 2) of the crime (meaning possible 5 years jail time, 3 years home release, costly fine) none of that precludes monetary relief settlements and alternate dispute possibilities. Yes, she's guilty we know that, but monetary damage, and her amount of profit DOES factor in, and is viewed heavily by the federal court.  These cases are still tried in accordance with all aspects of substantive law. Tangible figures are always factored in. It's always about "amount".
These aren't simplistic cases.  This might not go to trial for many years.


http://www.copyright.gov/title17/92chap5.html#504

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Northeast United States runner up for the "Singing Hall of Shame".

Steven, I believe that the sections you are looking at  501-505 all pertain to civil cases and the remedies. If you look at the panorama link that karyoky put in you will find all the civil comments that you refer to. 506 refers to criminal and the fortfiture of the bank accounts etc. I have never heard of the US Attorney's office handling a civil suit. However I have the US Attorneys name and phone number and will find out in the next day or two.

Copyright law is federal law. It's substantive law principles.

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Northeast United States runner up for the "Singing Hall of Shame".

I get goosebumps when you talk all sexy like that..

Jerry,  Don't toy with my emotions !  You know how easily I get led on !

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Northeast United States runner up for the "Singing Hall of Shame".