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Public Interest Groups Publish Position Paper on Threat Posed By Inflated Statutory Damages

The Threat Posed By Inflated Statutory Damages, Comments on the January 25, 2008 Meeting Hosted by the Copyright Office: “The PRO IP Act (H.R. 4279) proposes to weaken the long-established “one work” rule, which today imposes a measure of certainty on how copyright statutory damages are calculated. Under current law, a copyright plaintiff may seek up to $150,000 per work infringed. In the case of compilations, the one work rule recognizes that the compilation is being marketed as one work, although it may in fact consist of multiple components. Section 104 of the PRO IP Act seeks to undo a central underpinning of statutory damages: ensuring that the damages award for infringement of a compilation does not result in catastrophic multiple awards through a separate award for each component of that compilation. For example, current law authorizes a statutory damages award of up to $150,000 for a single infringement of a magazine containing 100 photos, or a software application containing 100 modules. The proposed changes in Section 104 would allow a plaintiff to claim up to $15 million for the same act of infringement.”

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