Pirates Pinched

Visit any major metropolitan city, and chances are you'll eventually stumble upon vendors selling pirate CDs from outdoor tables, often for as little as $5 each. But for the suburban resident in the US, flea markets are where the pirate action is.

But are flea-market operators responsible for knowing which vendors' CDs are pirated and which are legitimate? Yes, says the Recording Industry Association of America (RIAA), which has taken an aggressive stance, suing the owners and operators of the markets for copyright infringement. The trade organization adds that this move is taken only after numerous demands to curtail the pirate sales are ignored or dismissed.

For legitimate local music retailers, flea market pirates can be a painful thorn in the side as record sales continue to slide. One California retailer, John Radakovitz, owner of Sacramento-based Dimple Records, decided to fight back. He says he visited the local Marysville flea market numerous times to notify the landlord of the illegal activity occurring on his premises. "Most of the activity in Northern California occurs on the weekends with vendors setting up 'stores' at one of the largest flea markets on the west coast." But when his low-key approach didn't work, he contacted the RIAA.

Beginning two years ago, the RIAA says, its investigators began looking into pirated music sold at the Marysville flea market. In one trip, RIAA investigators say, they purchased 60 pirate CDs and cassettes, and found six different vendors selling illicit music.

According to the RIAA, numerous attempts to offer training for the managers of the flea market to identify pirated music and begin curtailing the sales of pirated music were ignored or rebuffed. So the RIAA sued the Marysville operators and those of another flea market they had been observing in Pearland, Texas, just outside of Houston.

In both instances, RIAA investigators say they pointed the flea-market operators to the case of Fonovisa v Cherry Auction, which held that an operator of a flea market or similar auction can be held liable for "vicarious and contributory copyright infringement" if he or she fails to take proactive steps to curb the infringement despite "blatant" evidence.

The RIAA's Cary Sherman explains, "While profiting from shady vendors selling pirated music, these flea market operators are turning a blind eye to blatant piracy. This kind of piracy is especially harmful to nearby retailers. Flea-market operators need to be held accountable when they fail to live up to their obligation to police their premises for illegal activity."

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