Scarinci Hollenbeck, LLC, LLCScarinci Hollenbeck, LLC, LLC

Firm Insights

US Supreme Court Agrees to Tackle Dispute Over Copyright Costs

Author: Scarinci Hollenbeck, LLC

Date: November 7, 2018

Key Contacts

Back

In Rimini Street, Inc. v. Oracle USA Inc., SCOTUS Will Determine the Scope of Available Copyright Costs That May Be Recovered in an Infringement Action

The U.S. Supreme Court recently added another intellectual property case to its docket. In Rimini Street, Inc. v. Oracle USA Inc., the justices will determine the scope of available costs that may be recovered in a copyright infringement action.

US Supreme Court Agrees to Tackle Dispute Over Copyright Costs
Photo courtesy of Aidan Bartos (Unsplash.com)

Awarding Costs in a Copyright Infringement Suit

The U.S. Copyright Act dictates the fees that a prevailing party can recoup in a copyright infringement suit. Under 17 U.S.C. § 505, a court may allow the recovery of full costs by or against any party other than the United States or its officers and may also award a reasonable attorneys’ fee to the prevailing party as part of the costs.

Another federal statute, 28 U.S.C. § 1920, sets out six discrete categories of “taxable costs” that are available to prevailing parties under federal statutory fee-shifting provisions. They include fees for the clerk and marshal; transcript fees; disbursements for printing and witnesses; fees for making copies; docketing fees; and the compensation of court-appointed experts and certain special interpretation services. Another provision, Section 1821, delineates witness attendance rates ($40-per-day), as well as per diem rules for witness travel expenses. All other cost categories or amounts in excess of the fixed rates are considered “non-taxable.”

Of course, Congress may expand the universe of recoverable costs via statute. However, prior Supreme Court decisions establish that courts should not presume Congress has done so absent “explicit statutory … authorization.”

Facts of Rimini Street, Inc. v. Oracle USA Inc.

The issue before the U.S. Supreme Court in Rimini Street, Inc. v. Oracle USA Inc. is whether the “full cost” provision of the Copyright Act is limited to “taxable costs,” an issue that has divided the U.S. federal courts of appeal. Two federal appellate courts have held that non-taxable costs are not recoverable under the Copyright Act. For instance, in Pinkham v. Camex, Inc., 84 F.3d 292 (8th Cir. 1996), the Eighth Circuit held that the words “full costs” did not “‘clearly,’ ‘explicitly,’ or ‘plainly,’ evidence congressional intent to treat 17 U.S.C. § 505 costs differently from costs authorized in other statutes.”

The Ninth Circuit reached the opposite conclusion in the dispute between Oracle USA Inc. (Oracle) and Rimini Street, Inc. (Rimini). In 2010, Oracle filed suit in federal district court against Rimini, alleging numerous causes of action, ranging from copyright infringement to computer hacking. The jury awarded hypothetical license damages for innocent infringement in the amount of $35,600,000 and damages of just over $14 million for violations of state computer hacking statutes. Post-trial, Oracle sought approximately $20 million in costs, which included more than $12 million in non-taxable costs. Rimini objected to the award of the non-taxable costs, arguing that any costs awarded under the Copyright Act were limited to taxable costs permitted by 28 U.S.C. §§ 1920 and 1821. The district court, however, followed Ninth Circuit precedent holding that the Copyright Act “permits a successful plaintiff to recover all costs incurred in litigation, not just taxable costs authorized by … 28 U.S.C. § 1920.”

The Ninth Circuit affirmed, also largely relying on its prior decision in Twentieth Century Fox Film Corp. v. Entm’t Distrib., 429 F.3d 869 (9th Cir. 2005). In that case, the appeals court upheld tens of thousands of dollars in non-taxable costs under the Copyright Act, determining that the word “full” in the Copyright Act was “clear evidence of congressional intent that non-taxable costs should be available.”

Issues before the US Supreme Court

On appeal, Rimini argues that the Ninth Circuit’s decision conflicts with the precedent established by other federal circuit courts and the U.S. Supreme Court. It is seeking to recoup $12.8 million in litigation costs that were awarded by the Ninth Circuit. Meanwhile, Oracle contends that the term “full costs” means the non-prevailing party must pay the full costs, without exception.

On September 27, 2018, the U.S. Supreme Court granted certiorari. The specific question before the Court is: “Whether the Copyright Act’s allowance of “full costs” (17 U.S.C. § 505) to a prevailing party is limited to taxable costs under 28 U.S.C. §§ 1920 and 1821, as the Eighth and Eleventh Circuits have held, or also authorizes non-taxable costs, as the Ninth Circuit holds.”

Oral arguments have not yet been scheduled in Rimini Street, Inc. v. Oracle USA Inc. The Scarinci Hollenbeck Intellectual Property Group will continue to monitor the case and will post updates as they become available.

If you have questions, please contact us

If you have any questions or if you would like to discuss the matter further, please contact me, Bill Samuels, or the Scarinci Hollenbeck attorney with whom you work at 201-806-3364.

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Scarinci Hollenbeck, LLC, LLC

Related Posts

See all
Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know post image

Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism — a sale under Section 363 of the United States Bankruptcy Code. A Section 363 sale allows a company, as a debtor-in-possession in bankruptcy, to sell […]

Author: John D. Giampolo

Link to post with title - "Section 363 Sales in Bankruptcy: What Businesses, Lenders, and Buyers Need to Know"
Zoning Laws Explained: What You Need to Know Before Buying Property post image

Zoning Laws Explained: What You Need to Know Before Buying Property

Before buying property, it is critical to determine whether local zoning laws may affect your plans. If you plan to redevelop the property, you will want to confirm that local zoning regulations permit development as intended. If acquiring property that is already developed, you must verify that the use is permitted in the underlying zoning […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "Zoning Laws Explained: What You Need to Know Before Buying Property"
Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future post image

Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future

For parents of a child with a disability, estate planning raises concerns that go well beyond deciding who will inherit their assets. Parents may spend years making sure their child has the right care, services, and support. Eventually, they must also confront a difficult question: Who will take over when they can no longer do […]

Author: George McGowan

Link to post with title - "Special Needs Trusts in New Jersey: Planning for Your Loved One’s Future"
What Every Real Estate Investor Should Know Before Buying a Rental Property post image

What Every Real Estate Investor Should Know Before Buying a Rental Property

Before buying a New Jersey rental property, an investor should verify realistic operating numbers, the property’s legal and regulatory status, lead-based paint and flood compliance, the existing leases and tenant protections, and the right ownership structure. A rental property is more than a piece of real estate; it is an operating business subject to legal, […]

Author: Donald M. Pepe

Link to post with title - "What Every Real Estate Investor Should Know Before Buying a Rental Property"
Can You Change an Irrevocable Trust in New Jersey? post image

Can You Change an Irrevocable Trust in New Jersey?

In New Jersey, an irrevocable trust can sometimes be modified even though its name suggests otherwise, and one of the primary tools for doing so is a process called decanting. Whether decanting is available depends on the specific terms of the trust and the discretion given to the trustee. Key takeaways: New Jersey has no […]

Author: Marc J. Comer

Link to post with title - "Can You Change an Irrevocable Trust in New Jersey?"
How Intellectual Property Valuation Will Impact Business Transactions post image

How Intellectual Property Valuation Will Impact Business Transactions

Intellectual property valuation determines the monetary value of a business’s IP assets, and it drives outcomes in licensing deals, joint ventures, mergers and acquisitions, financing, and ownership disputes. The most valuable assets of a business are often the things that cannot be seen or touched: a proprietary process, a copyrighted work, brand recognition, or the […]

Author: Jay McDaniel

Link to post with title - "How Intellectual Property Valuation Will Impact Business Transactions"

No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Sign up to get the latest from our attorneys!

Explore What Matters Most to You.

Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.

Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.

Let`s get in touch!

* The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form. By providing a telephone number and submitting this form you are consenting to be contacted by SMS text message. Message & data rates may apply. Message frequency may vary. You can reply STOP to opt-out of further messaging.
“If you would like to submit a file, please email it directly to info@sh-law.com.

Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!