United States of America v. George Karadimos

* This disposition is not appropriate for publication and is not precedent
except as provided by 9th Cir. R. 36-3.
NOT FOR PUBLICATION
UNITED STATES COURT OF APPEALS
FOR THE NINTH CIRCUIT
UNITED STATES OF AMERICA,
Plaintiff - Appellee,
v.
GEORGE KARADIMOS,
Defendant - Appellant.
No. 11-30199
D.C. No. 3:09-cr-00373-HA-1
MEMORANDUM*
Appeal from the United States District Court
for the District of Oregon
Ancer L. Haggerty, Senior District Judge, Presiding
Argued and Submitted July 12, 2012
Portland, Oregon
Before: GOODWIN, PREGERSON, and CHRISTEN, Circuit Judges.
George Karadimos appeals the 18-month sentence imposed following his
guilty-plea conviction for criminal infringement of a copyright, in violation of 17
U.S.C. § 506(a)(1) and 18 U.S.C. § 2319(a) and (b)(1). We have jurisdiction
under 28 U.S.C. § 1291, and we vacate and remand.
FILED
SEP 19 2012
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS

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We grant the government’s Motion to Supplement the Record on Appeal
pursuant to Federal Rule of Appellate Procedure 10(e). Though the discovery the
government seeks to submit on appeal was not filed with the district court,
remanding for the district court to review it in the first instance would be contrary
to the interests of justice and the efficient use of judicial resources. See Lowry v.
Barnhart, 329 F.3d 1019, 1024 (9th Cir. 2003) (recognizing this court’s inherent
authority to supplement record in extraordinary cases). The record shows the
discovery was served on defense counsel on November 18, 2009, and we discern
no prejudice to considering it on appeal.
Turning to the merits, Karadimos argues on appeal that the district court
erroneously calculated the infringement amount under U.S.S.G. § 2B5.3, cmt.
n.2(A) because the government failed to prove the retail value of the infringed
(copyrighted) items by clear and convincing evidence. Prior to the sentencing
hearing, the probation officer recommended an infringement amount of $975,000,
relying on a report generated by the Business Software Alliance (“BSA”), an
industry trade group, that provided the manufacturer’s suggested retail prices
(“MSRP”) for a portion of the software titles seized from Karadimos’s home. The
government, also relying on the BSA report, recommended an infringement
amount of $1,750,000. The district court did not use either calculation and found

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the infringement amount was $127,712 without explanation. The amount adopted
by the district court appears to be the MSRP for one copy each of the 131 titles
seized in Karadimos’s home that are marketed by members of the BSA.
We conclude that the government’s proffer of the manufacturer’s suggested
retail price did not demonstrate by clear and convincing evidence the retail value of
the infringed software items in the market in which they were sold. U.S.S.G.
§ 2B5.3, cmt. n.2(C). The parties agreed that the Internet was the correct market.
Because neither the government nor Karadimos provided evidence of the retail
price for the software titles sold over the Internet during the relevant time period,
the district court’s determination of the infringement amount was erroneous. We
vacate the district court’s sentence and remand for a new sentencing hearing. See
United States v. Bao, 189 F.3d 860, 867–68 (9th Cir. 1999) (remanding based on
district court’s erroneous calculation of retail value).
In light of our disposition, we do not address Karadimos’s additional
arguments raised on appeal. This panel retains jurisdiction over any future appeals.
VACATED and REMANDED.

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United States v. Karadimos, No. 11-30199
PREGERSON, Circuit Judge, concurring:
I concur in the memorandum disposition, but write separately to address
Karadimos’s eighteen-month sentence for non-violent copyright infringement.
There is no evidence in the record that copyright owners suffered any actual
pecuniary harm. The record discloses Karadimos’s extraordinary family
circumstances and other mitigating factors, some of which the district court
considered. Karadimos has accepted responsibility for his misdeeds. He pled
guilty to the single count of copyright infringement. He was released on his own
recognizance on the date he was indicted. He has not committed any further
offenses.
Karadimos’s daughter, born after Karadimos’s copyright infringement
ended, was abandoned by her mother shortly after her birth. Since then,
Karadimos has been the sole caretaker of his daughter and has dedicated his life to
raising her. I cannot see how society will benefit from putting Karadimos in prison
for eighteen months and depriving his young daughter of her loving father’s care.
FILED
SEP 19 2012
MOLLY C. DWYER, CLERK
U.S. COURT OF APPEALS

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