Statutory damages

Definition

Statutory damages are predetermined monetary awards specified in copyright law that can be claimed by copyright holders when their works have been infringed. These damages are established by law and allow copyright owners to recover compensation without needing to prove actual damages or losses. Statutory damages serve as a deterrent against copyright infringement and provide an accessible means for rights holders to seek justice.

5 Must Know Facts For Your Next Test

1. Statutory damages range from $750 to $30,000 per work infringed, with the potential for up to $150,000 in cases of willful infringement.
2. Claiming statutory damages is often preferred by copyright holders because it does not require proving specific financial losses resulting from infringement.
3. Copyright owners can choose between actual damages and statutory damages when pursuing a claim in court.
4. Statutory damages serve not only as compensation for copyright holders but also act as a punitive measure against infringers.
5. In some situations, courts may award attorney's fees and costs on top of statutory damages, increasing the financial impact on the infringer.

Review Questions

• How do statutory damages differ from actual damages in the context of copyright law?
  • Statutory damages differ from actual damages in that they provide a fixed monetary amount that copyright holders can claim without having to prove any financial losses incurred due to infringement. Actual damages require evidence of specific losses, such as lost profits. The option to choose between these two types of damages gives copyright owners flexibility in seeking compensation based on the circumstances of the infringement.
• Discuss the implications of statutory damages on the behavior of individuals and organizations regarding copyright compliance.
  • The existence of statutory damages serves as a strong deterrent against copyright infringement, encouraging individuals and organizations to comply with copyright laws. Knowing that infringers could face hefty penalties ranging from $750 to $150,000 motivates many to seek permission before using copyrighted material. This legal framework aims to protect the rights of creators while fostering respect for intellectual property.
• Evaluate the impact of statutory damages on the accessibility of legal recourse for copyright holders in cases of infringement.
  • Statutory damages enhance the accessibility of legal recourse for copyright holders by simplifying the process of seeking compensation for infringement. Since rights holders do not need to demonstrate actual losses, they can pursue claims more easily and affordably. This encourages more creators and small businesses to defend their intellectual property without the fear of expensive litigation costs associated with proving actual damages. Overall, this contributes to a more balanced environment where creators feel empowered to protect their works.

Related terms

Copyright Infringement: The unauthorized use, reproduction, or distribution of copyrighted material without permission from the rights holder.

Actual Damages: Compensation awarded based on the actual losses incurred by the copyright holder due to infringement, including lost profits or expenses.

Fair Use: A legal doctrine that allows limited use of copyrighted material without permission for purposes such as criticism, comment, news reporting, teaching, scholarship, or research.