It’s frustrating when someone benefits from your hard work without compensating you. But this is what often happens with intellectual property, including copyrights. Another individual might use your copyrights without permission, leaving you to decide whether to take action against them or not. The Copyright Alternative in Small-Claims Enforcement Act of 2020 (the CASE Act) may help some copyright holders, but there are some drawbacks also.
Copyright Violations Before the CASE Act
Copyright infringement claims fall under federal court jurisdiction. In other words, if someone misappropriates your copyright, you generally will have to file a lawsuit in federal court if other methods of enforcement fail.
However, filing a federal lawsuit is expensive. Some copyright holders may find it costs more to enforce their rights than just to ignore the infringement. Also, time spent pursuing a copyright infringement action in court pulls you away from other business-related tasks.
Lawmakers intend the CASE Act to help small copyright holders enforce their rights in a more cost-effective manner.
The New Process
The CASE Act instructs the United States Copyright Office to create a Copyright Claims Board (the “Board”). Three experienced copyright claims officers will preside over the Board, which acts as a sort of smalls claims court for copyright infringement claims.
The Board can hear cases with up to $30,000 in potential damages, including $15,000 in statutory damages per copyright.
Copyright holders with small infringement cases may find that the Board makes it easier to:
- Assert their rights under US law,
- Pursue infringement claims, and
- Discourage future copyright violations.
The Case Act also requires “streamlined procedures that limit discovery and rely mostly on written materials.” Since discovery is limited, costs should be reduced. Also, it is less likely that copyright holders will have to appear in court if the Board intends to base its decisions primarily on written documents instead of hearings. Finally, the copyright holder can ask the Board to help negotiate a settlement, which could further reduce the amount of time spent on an infringement claim.
Some provisions of the CASE Act may be cause for concern, however.
Drawbacks to the CASE Act
Respondents to an infringement case before the Board may “opt out” of the case within 60 days. The Board could dismiss the case. The copyright holder would then have to file a case in federal court.
Also, most decisions made under the CASE Act are not appealable to federal court. The parties are limited to challenges based on fraud, misrepresentations, and misconduct.
Call to Discuss Your Intellectual Property Issues
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with business and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.