On Command Video Corp. v. Columbia Pictures Industries, Inc.

MEMORANDUM AND ORDER

Plaintiff seeks a declaratory judgment that its videotape performance system does not violate defendants’ copyright. Defendants counterclaim for copyright infringement, alleging that plaintiff’s system infringes on their exclusive right to publicly perform their motion pictures. The system, which plaintiff installs and operates, allows a hotel to offer its guests the opportunity to view videotapes in their rooms. Using a remote control unit, the guest selects a videotape which triggers the system to play that tape and display it on the television set in that room.

The matter now before this Court is defendants’ motion for court approval of notice of potential infringement. Defendants seek to send a notification letter of the pending litigation to plaintiff’s hotel owner customers who have installed or are under contract to install plaintiff’s video system. Plaintiff maintains that sending the letter would be actionable for bad faith. Therefore, defendants seek this Court’s approval of the letter as a good-faith form of notification in order to avoid a subsequent attack by plaintiff on the ground that the notification was sent in bad faith. Defendants’ motion…