In the High Court of New Zealand Wellington Registry
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IN THE HIGH COURT OF NEW ZEALAND WELLINGTON REGISTRY I TE KŌTI MATUA O AOTEAROA TE WHANGANUI-Ā-TARA ROHE CIV-2014-485-11220 [2017] NZHC 2603 UNDER The Copyright Act 1994 EIGHT MILE STYLE, LLC BETWEEN First Plaintiff MARTIN AFFILIATED, LLC Second Plaintiff NEW ZEALAND NATIONAL PARTY AND First Defendant GREG HAMILTON Second Defendant STAN 3 LIMITED AND First Third Party SALE STREET STUDIOS LIMITED Second Third Party Continued Hearing: 1–8 May 2017 and 11–12 May 2017 Appearances: G C Williams, A M Simpson and C M Young for plaintiffs G F Arthur, G M Richards and P T Kiely for defendants A J Holmes for second third party T P Mullins and C I Hadlee for third and fourth third parties L M Kelly for fifth third party R K P Stewart for fourth party No appearance for fifth party Judgment: 25 October 2017 JUDGMENT OF CULL J EIGHT MILE STYLE v NEW ZEALAND NATIONAL PARTY [2017] NZHC 2603 [25 October 2017] AND AMCOS NEW ZEALAND LIMITED Third Third Party AUSTRALASIAN MECHANICAL COPYRIGHT OWNERS SOCIETY LIMITED Fourth Third Party BEATBOX MUSIC PTY LIMITED Fifth Third Party AND LABRADOR ENTERTAINMENT INC Fourth Party AND MICHAEL ALAN COHEN Fifth Party INDEX The musical works ............................................................................................................................. [8] Lose Yourself .................................................................................................................................. [9] Eminem Esque .............................................................................................................................. [12] Audio comparison of both works .................................................................................................. [14] What happened?.............................................................................................................................. [17] Issues ................................................................................................................................................ [28] FIRST ISSUE: IS THERE ACTIONABLE COPYRIGHT IN LOSE YOURSELF?................. [30] 1.1 Can Eight Mile Style enforce copyright in New Zealand? ................................................. [33] Conclusion 1.1 .............................................................................................................................. [36] 1.2 Does copyright subsist in the musical work Lose Yourself? ................................................ [37] Conclusion 1.2 .............................................................................................................................. [45] SECOND ISSUE: WAS THERE COPYING OF LOSE YOURSELF? ....................................... [46] Legal principles on “copying” ........................................................................................................ [49] Substantiality ................................................................................................................................ [50] Objective similarity ...................................................................................................................... [53] Causal connection ........................................................................................................................ [60] Musical copyright principles ........................................................................................................ [63] Parties’ positions .............................................................................................................................. [76] 2.1 How original is Lose Yourself? .............................................................................................. [84] Is there originality in popular music? .......................................................................................... [92] Are borrowed musical elements protected by copyright? ........................................................... [105] Does an alteration in melody avoid copying? ............................................................................ [123] Is Lose Yourself original? .......................................................................................................... [132] Conclusion 2.1 ............................................................................................................................ [155] 2.2 Has Eminem Esque substantially copied Lose Yourself? ................................................... [158] Dr Ford’s analysis of Lose Yourself ........................................................................................... [160] Dr Zemke’s evidence ................................................................................................................... [175] Points of difference between the musicologists .......................................................................... [194] Analysis ...................................................................................................................................... [198] Conclusion 2.2 ............................................................................................................................ [218] 2.3 Do the parts of Eminem Esque used in the National Party’s election advertisements and conference video reproduce the whole or a substantial part of Lose Yourself? ........................ [219] National Party advertisements ................................................................................................... [222] Conclusion 2.3 ............................................................................................................................ [229] 2.4 Does Eminem Esque sound objectively similar to Lose Yourself? .................................... [230] Subjective assessment ................................................................................................................. [235] Evidence of Drs Ford and Zemke ............................................................................................... [237] Replication of the beat in Lose Yourself ..................................................................................... [241] Recognition of Lose Yourself ..................................................................................................... [244] Eminem Esque was synchronised as a sound-alike track........................................................... [251] Conclusion 2.4 ............................................................................................................................ [273] 2.5 Is there a causal connection between Lose Yourself and Eminem Esque? ....................... [274] Conclusion 2.5 ............................................................................................................................ [279] Summary of findings on issue two ............................................................................................... [280] THIRD ISSUE: WAS THERE COPYRIGHT INFRINGEMENT ........................................... [281] 3.1 Have any restricted acts taken place? ................................................................................ [281] Relevant facts ............................................................................................................................. [291] Analysis ...................................................................................................................................... [297] Conclusion 3.1 ............................................................................................................................ [300] Positive defence of innocent infringement ................................................................................... [301] FOURTH ISSUE: WHAT RELIEF, IF ANY, SHOULD BE AWARDED? ............................... [302] 4.1 If the National Party has infringed copyright, are Eight Mile Style entitled to relief and if so, what are the damages? ............................................................................................................ [302] Legal principles of damages ....................................................................................................... [308] United Kingdom ......................................................................................................................... [313] Australia ..................................................................................................................................... [331] Summary of user principle factors.............................................................................................. [336] Relevant fact chronology ............................................................................................................ [348] Evidence on licensing fees .......................................................................................................... [349] Licensing of Lose Yourself ......................................................................................................... [351] Licensing experts’ evidence ........................................................................................................ [371] Analysis ...................................................................................................................................... [379] Value of Lose Yourself in New Zealand ...................................................................................... [383] Use in a political election campaign .........................................................................................