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MBU 2520 Spring 2018 - Eric M. Griffin
REMEDIES FOR
INFRINGEMENT
1
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
2
COERCIVE REMEDIES
Designed to prevent further infringement
Compensatory remedies
Designed to compensate the © owner for
losses
Criminal Remedies
Designed to punish and deter infringement
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
3
COERCIVE REMEDIES
INJUNCTION
* A court order telling someone to do or to stop doing
something
* Courts have authority under 502(a) to grant injunctions
* 1991 Biz Markie v WB case – had to recall the album!
* May be temporary or final. Temp can require a bond.
* Court looks at Irreparable Harm potential—generally
assumed in copyright infringement
* Violating injunction = subject to fines / imprisonment
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
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4
COERCIVE REMEDIES
IMPOUNDMENT
* A court orders the alleged infringing articles – as well as
equipment – to be collected and held until final judgment
* Courts have authority under 503(a)
DESTRUCTION
* Upon a finding of guilt in an infringement suit, court may
order the destruction or seizure of the infringing articles
* Courts have authority under 503(b)
* May also order that articles be sold, given away or delivered
to Plaintiff
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
5
COMPENSATORY REMEDIES
Actual Damages and Profits
 Must prove: amount of money lost b/c of infringement (what the plaintiff
would have made BUT FOR the infringement base on FMV)
 Varies depending upon whether single or album. A single is often used to
promote albums sales… so, hard to value. (Isley Bros v Bolton).
 Can be difficult to prove (TV commercial—what the normal rate is?)
 Sometimes impossible (illegal downloads—may not know # of
reproductions)
 Sometimes gross profits and indirect profits (Hotel/Casino case)
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
6
COMPENSATORY REMEDIES
Statutory Damages
* Because actual damages can be hard to detrmine, 504(c)
allows a copyright owner to elect to receive monetary damages
within a specified range (Statutory Damages) INSTEAD OF actual
damages and profits
* General Range: $750 to $30,000
* If WILLFUL: up to $150,000
* If Innocent: as low as $200 (or nothing if defendant
REASONABLY BELIEVED the use was a fair use)
* Unsympathetic Defendants receive higher Damages.
* Based PER WORK infringed, no matter now many times.
* Thomas and Tennebaum cases (huge award for 24 songs & 30 songs)
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
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7
COMPENSATORY REMEDIES
Costs and Attorneys’ Fees
 Section 505 allows for awarding REASONABLE attorneys’ fees, as well as
court costs and other fees, to the prevailing party (e.g.- expert witness fees,
filing fees, etc.)
 Purpose for Plaintiff: deter potential infringers and encourage owners to
bring suit even when actual or statutory damages won’t cover cost of suit.
 Purpose for Defendant: Encourage defense of claims believed to be invalid
rather than settling. Discourage owners from filing frivolous claims.
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
8
COMPENSATORY REMEDIES
Costs and Attorneys’ Fees
 Discretion of the courts to award attorneys’ fees and profits—looks at
frivolousness, motivation, good/bad faith, compensation, deterrence
 Must be same basis for Plaintiffs as Defendants
 What is “reasonable”? Time and labor needed. Standard fees for area and
industry. Monetary damages involved. Experience and reputation of attorney

REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
9
CRIMINAL COPYRIGHT INFRINGEMENT
1909 did NOT protect sound recordings with criminal sanctions.
* UNDER 1976 COPYRIGHT ACT
• If WILLFUL and for FINANCIAL GAIN = may be subject to criminal copyright infringement.
Criminal prosecutions are RARE.
Section 506(a):
 Misdemeanor for infringing any of the Section 106 rights
 Punishable by up to one year prison or up to $100,000 – or both
 Felony if infringing reproduction or distribution right
 At least 10 copies, value of $2,500 or more, within a 180 day period
 Felony infringement punishable by up to five years prison or up to $250,000 – or both
 IF repeat offender, up to 10 years prison
506 (c) False info on copyright notice with fraudulent intent or remove notice
• Punishable by fine up to $2,500
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
10
CRIMINAL COPYRIGHT INFRINGEMENT
NO ELECTRONIC THEFT ACT ( NET ACT) (1997 Amendment to Act)
• Expanded criminal infringement to situations without direct financial motive.
Congress said that abusing © was like any other abuse of property of another
and need not be for financial gain to be criminal.
• US v LaMacchia (bulletin board case where defendant encourages piracy)
Because he didn’t profit, no liability – Led to the NET ACT
• Criminal penalties for the “reproduction and distribution, including by electronic
means, during any 180 day period,” of one or more copyrighted works that have
a total retail value more than $1,000.
• If 10 or more copies or retail value or $2,500
• Punishable by up to 3 yrs prison / up to $250,000 – or both
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
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11
PRE RELEASE PIRACY
FAMILY ENTERTAINMENT AND COPYRIGHT ACT (2005 Amendment to Act)
• Expanded criminal infringement to situations where a work is made available to
the public prior to release
• Punishable by up to 3 yrs prison; if financial gain, up to 5 yrs prison; if
repeat offender / financial gain
• FECA Case (Ryan Adams CD 2005 – EX 12.9 pg 233)
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
.
12
DIGITAL MILLENNIUM COPYRIGHT ACT
(1998)
Increased penalties for criminal copyright infringement for “circumventing
copyright protection systems and tampering with copyright management
information.”
• If WILLFUL or COMMERCIAL GAIN
• Punishable by up to 5 yrs prison / up to $500,000 – or both
• Repeat offenders: up to 10 yrs prison / up to $1,000,000 – or both
REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
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REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin
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GRIFFIN COPYRIGHT MBU 2520 FALL 2019 chapter 12

  • 1. MBU 2520 Spring 2018 - Eric M. Griffin REMEDIES FOR INFRINGEMENT 1
  • 2. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 2 COERCIVE REMEDIES Designed to prevent further infringement Compensatory remedies Designed to compensate the © owner for losses Criminal Remedies Designed to punish and deter infringement
  • 3. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 3 COERCIVE REMEDIES INJUNCTION * A court order telling someone to do or to stop doing something * Courts have authority under 502(a) to grant injunctions * 1991 Biz Markie v WB case – had to recall the album! * May be temporary or final. Temp can require a bond. * Court looks at Irreparable Harm potential—generally assumed in copyright infringement * Violating injunction = subject to fines / imprisonment
  • 4. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 4 COERCIVE REMEDIES IMPOUNDMENT * A court orders the alleged infringing articles – as well as equipment – to be collected and held until final judgment * Courts have authority under 503(a) DESTRUCTION * Upon a finding of guilt in an infringement suit, court may order the destruction or seizure of the infringing articles * Courts have authority under 503(b) * May also order that articles be sold, given away or delivered to Plaintiff
  • 5. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 5 COMPENSATORY REMEDIES Actual Damages and Profits  Must prove: amount of money lost b/c of infringement (what the plaintiff would have made BUT FOR the infringement base on FMV)  Varies depending upon whether single or album. A single is often used to promote albums sales… so, hard to value. (Isley Bros v Bolton).  Can be difficult to prove (TV commercial—what the normal rate is?)  Sometimes impossible (illegal downloads—may not know # of reproductions)  Sometimes gross profits and indirect profits (Hotel/Casino case)
  • 6. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 6 COMPENSATORY REMEDIES Statutory Damages * Because actual damages can be hard to detrmine, 504(c) allows a copyright owner to elect to receive monetary damages within a specified range (Statutory Damages) INSTEAD OF actual damages and profits * General Range: $750 to $30,000 * If WILLFUL: up to $150,000 * If Innocent: as low as $200 (or nothing if defendant REASONABLY BELIEVED the use was a fair use) * Unsympathetic Defendants receive higher Damages. * Based PER WORK infringed, no matter now many times. * Thomas and Tennebaum cases (huge award for 24 songs & 30 songs)
  • 7. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 7 COMPENSATORY REMEDIES Costs and Attorneys’ Fees  Section 505 allows for awarding REASONABLE attorneys’ fees, as well as court costs and other fees, to the prevailing party (e.g.- expert witness fees, filing fees, etc.)  Purpose for Plaintiff: deter potential infringers and encourage owners to bring suit even when actual or statutory damages won’t cover cost of suit.  Purpose for Defendant: Encourage defense of claims believed to be invalid rather than settling. Discourage owners from filing frivolous claims.
  • 8. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 8 COMPENSATORY REMEDIES Costs and Attorneys’ Fees  Discretion of the courts to award attorneys’ fees and profits—looks at frivolousness, motivation, good/bad faith, compensation, deterrence  Must be same basis for Plaintiffs as Defendants  What is “reasonable”? Time and labor needed. Standard fees for area and industry. Monetary damages involved. Experience and reputation of attorney 
  • 9. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 9 CRIMINAL COPYRIGHT INFRINGEMENT 1909 did NOT protect sound recordings with criminal sanctions. * UNDER 1976 COPYRIGHT ACT • If WILLFUL and for FINANCIAL GAIN = may be subject to criminal copyright infringement. Criminal prosecutions are RARE. Section 506(a):  Misdemeanor for infringing any of the Section 106 rights  Punishable by up to one year prison or up to $100,000 – or both  Felony if infringing reproduction or distribution right  At least 10 copies, value of $2,500 or more, within a 180 day period  Felony infringement punishable by up to five years prison or up to $250,000 – or both  IF repeat offender, up to 10 years prison 506 (c) False info on copyright notice with fraudulent intent or remove notice • Punishable by fine up to $2,500
  • 10. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 10 CRIMINAL COPYRIGHT INFRINGEMENT NO ELECTRONIC THEFT ACT ( NET ACT) (1997 Amendment to Act) • Expanded criminal infringement to situations without direct financial motive. Congress said that abusing © was like any other abuse of property of another and need not be for financial gain to be criminal. • US v LaMacchia (bulletin board case where defendant encourages piracy) Because he didn’t profit, no liability – Led to the NET ACT • Criminal penalties for the “reproduction and distribution, including by electronic means, during any 180 day period,” of one or more copyrighted works that have a total retail value more than $1,000. • If 10 or more copies or retail value or $2,500 • Punishable by up to 3 yrs prison / up to $250,000 – or both
  • 11. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 11 PRE RELEASE PIRACY FAMILY ENTERTAINMENT AND COPYRIGHT ACT (2005 Amendment to Act) • Expanded criminal infringement to situations where a work is made available to the public prior to release • Punishable by up to 3 yrs prison; if financial gain, up to 5 yrs prison; if repeat offender / financial gain • FECA Case (Ryan Adams CD 2005 – EX 12.9 pg 233)
  • 12. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 12 DIGITAL MILLENNIUM COPYRIGHT ACT (1998) Increased penalties for criminal copyright infringement for “circumventing copyright protection systems and tampering with copyright management information.” • If WILLFUL or COMMERCIAL GAIN • Punishable by up to 5 yrs prison / up to $500,000 – or both • Repeat offenders: up to 10 yrs prison / up to $1,000,000 – or both
  • 13. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 13
  • 14. REMEDIES for INFRINGEMENT MBU 2520 Spring 2018 - Eric M. Griffin . 14