Fonovisa v. Cherry Auction

Citation: Fonovisa, Inc. v. Cherry Auction, Inc., 76 F.3d 259 (9th Cir. 1996).

The Ninth Circuit held that a plaintiff stated a claim of vicarious liability for copyright infringement against the operators of a flea market where pirated CDs were bought and sold, by alleging that defendants benefitted financially from fixed daily rental fees paid by each infringing vendor. The Ninth Circuit expressly rejected defendant's argument that the financial benefit prong of the test for finding vicarious liability could only be satisfied if the defendant earned a commission directly tied to the sale of a particular infringing item.