RIAA penalties could start at $500,000.
By: Scott Morgan
A federal court judge in Camden ruled last week that the Columbus Farmers Market on Route 206 in Springfield is liable for copyright infringement as it relates to bootlegged and pirated music and video sales and will have to financially compensate the Recording Industry Association of America.
The decision, handed down by U.S. District Court Judge Jerome Simandle on March 31 could be a crippling blow to the 77-year-old market. Though Judge Simandle did not set a monetary figure last week, a press statement by the RIAA estimates the penalties against Columbus could start at $500,000 and go as high as $125 million.
That number is based on federal copyright law, which allows fines ranging from $750 to $150,000 per work in copyright infringement cases. The RIAA sought about 7,000 violations, but Judge Simandle limited the number of copyright infringements to 832. Damages will be determined at an unspecified date.
West Berlin attorney Matt McCrink, who represents Columbus Farmers Market, said Wednesday that some details still need to be worked out and that the case itself "isn’t anywhere near over." Mr. McCrink said appeals from both sides in the matter could factor in, including an RIAA appeal for a higher number of violations and an appeal by the market regarding the level of its liability.
"That’s all speculation at this point, though," Mr. McCrink said.
The parties are expected to have a telephone conference with a federal magistrate today (Thursday) to discuss how the case will continue.
Columbus has been on the RIAA’s radar for years. As far back as 1991, a confidential informant warned the RIAA that there was a hefty trade in counterfeit merchandise at the market, according to last week’s ruling. Also according to the ruling, there was "no problem with sound recording piracy" prior to 1988, when current owners Charles Pratt and John Ackerman purchased the market.
Mr. Pratt and Mr. Ackerman were not held personally responsible by Judge Simandle.
In 1994, a raid by township police and the Burlington County prosecutor’s office against the market ended with the arrest of 26 vendors who were found selling counterfeit merchandise. A 2000 raid netted 12 suspected pirates; and in July 2003, Mount Laurel resident Howard Eisenberg was charged with trafficking more than $80,000 worth of phony CDs and DVDs.
That October, the RIAA, on behalf of several major record labels, filed a suit against the market’s owners, claiming the market was doing little to halt the sale of counterfeit music and videos and was, therefore, responsible for copyright infringement through the sale of illegal goods.
That suit came out in the RIAA’s favor March 31 and is, for the agency, a significant step in its efforts to stymie trade in counterfeit merchandise. It is the recording industry’s second victory in two years. In 2004, a California judge ruled in favor of the RIAA in a similar case against a flea market outside Sacramento.
"The court has spoken plainly that ignorance is no defense for flea markets which profit by turning a blind eye to piracy," said Mitch Bainwol, RIAA chairman and CEO in a written statement. "We work hard to offer educational materials and training to flea market owners so that pirated CDs are not sold on the premises."
The latter part of that statement has become the RIAA’s flagship argument against Columbus. Whereas the RIAA has worked with several market vendors with much success, say agency representatives, Columbus Market has not done enough. According to the RIAA, multiple letters were sent to the management of the market in recent years, to little avail.
Those charged with operating the market legitimately have a different view. Mr. McCrink said Wednesday that the activity cited by the RIAA has largely abated there since Mr. Eisenberg was arrested nearly three years ago. Township Police Chief Kenneth Gerber said Wednesday that his department, as well as the market’s internal security staff, "has worked hard to curb (illegal) activity" and said his officers will continue to try and quell the counterfeit trade there.
Two township officers patrol Columbus on Thursdays and Sundays, the market’s busiest days. The outdoor market also is open on Saturdays, the indoor market on Fridays as well.
On the busiest days, Mr. McCrink said, the market houses up to 1,500 vendors a logistical fact that makes eliminating the problem of phony merchandise nearly impossible. He said traders in these items often set up early or late, know the market’s security staff and are savvy in ways to hide fake goods among legitimate ones.
"These people are nothing but a headache to us," Mr. McCrink said. The market pays the township $500 a week for its police services and, if there is only one crooked vendor (who rents a table for about $30) to validate the expense, the market loses money. He added that the market loses money on returned pirate goods, as the original vendors often are gone and the market has to refund the purchase.
"It gives the market a black eye," he said.

