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
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs post image

Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs

When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]

Author: Marc J. Comer

Link to post with title - "Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs"
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments post image

New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments

New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]

Author: Wendy Rubinstein Quiroga

Link to post with title - "New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments"
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy post image

“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy

A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]

Author: Sean M. Pena

Link to post with title - "“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy"
Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders post image

Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders

Utility-scale battery energy storage systems (BESS) are becoming an increasingly important component of the electric grid throughout New Jersey, New York, and Pennsylvania. As renewable generation expands, electricity demand increases and grid operators seek greater flexibility, battery storage can help balance supply and demand while providing additional capacity and reliability. For developers, battery storage presents […]

Author: Nicholas Wall

Link to post with title - "Utility-Scale Battery Storage Projects: A Legal Roadmap for Developers, Property Owners and Other Stakeholders"
Navigating Disputes: Hire a Partnership Dispute Lawyer post image

Navigating Disputes: Hire a Partnership Dispute Lawyer

A falling out between partners can be disastrous for any business. In many cases, the partnership will not survive. If you are in an unworkable situation with your partners, it may be time to consult a partnership dispute lawyer experienced in handling partnership breakups and dissolutions before the situation deteriorates any further. It is easy […]

Author: Jay McDaniel

Link to post with title - "Navigating Disputes: Hire a Partnership Dispute Lawyer"
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"

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!