Archive for the ‘Copyright’ Category

Copyright

Can Attorney’s Fees Awarded In Copyright Actions Significantly Exceed The Amount Of Statutory Damages?

Copyright attorneys always advise their clients to register works with the US Copyright Office in a timely fashion because statutory damages (up to $150,000 per willful infringement) and attorney’s fees are generally available only if registration occurs prior to the infringement, or within 3 months of first publication.

If timely registration has not occurred, the plaintiff in a copyright action is limited to actual damages, an amount that often ends up being substantially less than the potential offered by statutory damages. As such, the availability of statutory damages and attorney’s fees is key to gaining leverage in a copyright infringement action, forcing defendants to the table and achieving significant settlements.

But what happens when timely registration has occurred, statutory damages are available but the case doesn’t settle? If the plaintiff ends up prevailing, can a court award attorney’s fees in an amount that significantly exceeds the statutory damages award?

That was the key question faced by the First Circuit Court Of Appeals in Spooner v. EEN, Inc. (July 5, 2011), a case in which the trial court awarded $98,745.80 in attorneys fees, but only $10,000 in statutory damages.

In Spooner, the First Circuit cited precedent that permits the reduction of gluttonously high attorney’s fees, but rejected the defendant’s argument that the fee award at hand was so excessive it should be denied. The Court took special note of the careful effort undertaken at trial to examine the fee request and determine its appropriateness in the given situation.

Bottom line, an award of attorney’s fees almost ten times the size of statutory damages was upheld in this case. Good news for copyright plaintiffs.

Schein & Cai can advise you with respect to all copyright matters. We assist companies in Silicon Valley and beyond, including San Jose, Santa Clara, Mountain View, Sunnyvale, Morgan Hill, Oakland, San Francisco, Palo Alto, San Mateo, Santa Cruz, South San Francisco, Daly City, Cupertino, Saratoga and Emeryville.

Find Schein & Cai at www.sacattorneys.com.