$36,000 Infringement Win Was Hardly the “Sting”–But $162,728.22 Adverse Fee Award Was.
The Copyright Act gives district courts a wide latitude to exercise equitable discretion in awarding attorney’s fees to prevailing parties in copyright infringement cases. 17 U.S.C. § 505; Entm’t Research Grp., Inc. v. Genesis Creative Grp., Inc., 122 F.3d 1211, 1229 (9th Cir. 1997). This discretion was properly exercised in the next case, which also shows that fee awards can often be the real “sting” for a litigation loser–in this case eclipsing the compensatory award by more than four times.
Restaurant chain owners in Range Road Music, Inc. v. East Coast Foods, Inc., Case Nos. 10-55691/10-55800 (9th Cir. Feb. 16, 2012) (for publication) lost a copyright infringement suit to plaintiffs to the tune of a $36,000 compensatory award. However, the real blow was the district court’s later fee award against owners of $162,728.22 under the Copyright Act.
The Ninth Circuit found no abuse of discretion in such an award. The owners could have avoided copyright infringement exposure by purchasing a license through ASCAP, with much of the fees and costs occasioned by the defense obfuscation of the corporate structure of the germane restaurant chain (Roscoe’s). Judgment affirmed.
Copyright deposits in the basement before classifying. 1898. Library of Congress.