Panaural Inc Is a Long- Established Entertainment Company

Essay

Panaural Inc is a long- established entertainment company. Among other things, it manufactures and sells music CDs. One of its best selling artists is a group called Funky See Funky Do. Under the contract that exists between Panaural and Funky See Funky Do, copyright in all of the group's songs is held by the company. Panaural was therefore especially upset when it discovered that Noize Records, a small music company, has been manufacturing and selling CDs containing music by Funky See Funky Do. Panaural intends to sue Noize Records in an attempt to receive (i) an injunction to stop Noize Record's illegal sales, and (ii) $50 000 in compensation for the losses that it has suffered as a result of Noize Record's breach of copyright. In an effort to keep costs down, however, Panaural wants to bring its case in a small claims court. Is it entitled to do so? Provide several reasons for your answer.