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A federal appeals court departed from five sister circuits determining damages in a copyright infringement case, taking a position the Copyright Alliance called "a cruel joke."
The U.S. Court of Appeals for the Fifth Circuit remanded a lawsuit brought by 18 major recording labels against a Texas-based internet services provider, instructing the district court to conduct a new trial on damages.
The defendant, Grande Communications Networks LLC, failed in its appeal to reverse judgment on the infringement finding of the jury, but convinced the appeals court the trial court erred in its reading of the Copyright Act of 1976 such that a damages award of $46.8 million could be reduced by more than half.
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