From National Law Journal
Supreme Court keeps $18M Internet settlement alive
Marcia Coyle
March 2, 2010
An $18 million settlement of a copyright infringement suit between Internet publishers and freelance writers is back on track because of a U.S. Supreme Court ruling on Tuesday.
In Reed Elsevier v. Muchnick, the justices, in an 8-0 decision, held that the U.S. Court of Appeals for the 2d Circuit was wrong when it ruled in 2008 that the district court lacked jurisdiction to certify the class or the settlement in the litigation. Justice Sonia Sotomayor, a former 2d Circuit judge, did not participate in the high court case.
The 2005 settlement followed the Supreme Court’s decision in 2001 in New York Times Co. v. Tasini, in which the justices held that the federal Copyright Act does not permit publishers to reproduce freelance works electronically without specific permission from the authors. After Tasini, four infringement class actions were consolidated in the Southern District of New York. The district court subsequently certified the class and settlement. Ten authors objected to certification on the grounds that it was unfair.