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Copyright

New Copyright Court

Copyright Claims Board

Back in 2019, the Copyright Small Claims Bill known as the Copyright Alternative in Small-Claims Enforcement Act of 2019 (CASE) Act was approved and signed into law to establish a voluntary alternative process for settling copyright infringement disputes with claims of less than $30,000 or less. One of the stated goals for the proposed legislation was to create an alternative avenue for cases that don’t make sense based on the expense of the federal court process.

Copyright Claims Board
Copyright Seal of the Copyright Office

Copyright Small Claim Tribunal

Since its launch in June 2022, the Copyright Claims Board (CCB) has revolutionized how small copyright disputes are resolved in the United States. As a streamlined alternative to federal court, the CCB offers copyright holders a more accessible and cost-effective way to protect their intellectual property.

The new copyright court provides an administrative court for handling copyright infringement disputes.  The new copyright court is voluntary for all parties. The new copyright court requires the both parties waive their right to seek injunctive relief and impose a lower limit on recoverable statutory damages, $30,000. In exchange, the new copyright court provides a forum that is intended to be cheaper and faster than traditional copyright infringement litigation in federal court. Let’s dive into the statistics and see how this new forum is performing.

Efficiency and Cost-Effectiveness

One of the Copyright Claims Board’s primary goals is to provide a more affordable and streamlined system for resolving copyright disputes. It is unclear if the Copyright Claims Board has been effective in achieving this objective with the limited number of cases going to a final resolution and a lack of transparancy on the tiing of those cases which do reach a final resolution.  However, the Copyright Claims Board appears to be acknowledge that it could do better but indicates that it continues to strive to make this process more efficient. Additionally, the Copyright Claims Board is designed to lower the barrier to bringing an infringement claim in comparison to federal court through the following measures:

  • Filing fees are significantly lower than federal court, only $100 per case
  • The CCB aims to resolve claims in less than a year, a stark contrast to federal court timelines
  • Limited discovery and virtual proceedings contribute to cost savings for all parties involved

CCB by the Numbers

The CCB has quickly gained traction among copyright holders seeking resolution for smaller claims. In its first two years of operation, the board received over 850 cases, with 360 classified as smaller claims, claims less than $5,000, and the majority of the cases involving larger claims, up to $30,000 in damages.

Almost 750 include claims of copyright infringement, with over 150 involving DMCA (section 512(f)) claims and 28 involve claims for declarations of non-infringement. This impressive number demonstrates the clear demand for a more accessible copyright dispute resolution process.

California residents filed the largest number of cases, with New York, Texas, and Pennsylvania residents also representing a significant quantity of cases. Of the cases brought, over 40% of the cases involve claims based on pictorial, graphical or sculptural works, 18% involve motion picture works, 17% involve musical and sound recordings and 14% involve literary works. This wide range of cases demonstrates the CCB’s appeal across different creative industries and geographical locations.

Case Outcomes

Out of the 850 cases filed:

  • over 712 cases have been dismissed this includes cases where respondents opted out, one of the parties made a request to withdraw from the CCB, cases being dismissed by the CCB as part of the initial review process and cases where the claimaint failing to serve the opposing party
  • 61 cases are currently active/pending
  • 24 final determinations had been issued including default proceedings and contested proceedings
  • 57 cases resulted in settlements

CCB’s Impact on Copyright Dispute Resolution

Increased Access to Justice

The CCB has made it possible for individuals and small businesses to pursue copyright claims that may have been financially unfeasible in federal court. With 60% of claimants being self-represented individuals, the board is truly democratizing access to copyright dispute resolution

Encouraging Settlements

The CCB has proven effective in facilitating settlements between parties. As of May 2024, at least 57 cases had been dismissed due to settlement, with more expected as cases progress.

Lower Opt-Out Rates Than Expected

Contrary to initial concerns, the rate of respondents opting out of CCB proceedings has been lower than anticipated. In fact, more cases have become active than have seen respondents opt out.

Challenges and Considerations

While the CCB has shown promise, it’s important to note some limitations:

  • Damages are capped at $30,000, which may not be suitable for high-value disputes
  • The board cannot issue injunctions, which may be necessary in some cases
  • Some cases may still require the expertise and resources available in federal court

Why You Need an Experienced Copyright Attorney

Despite the CCB’s more accessible format, navigating copyright law remains complex. An experienced copyright attorney can:

  1. Assess whether the Copyright Claims Board or federal court is the best venue for your case
  2. Help you prepare a strong claim or defense, increasing your chances of success
  3. Navigate the CCB’s procedures and requirements efficiently
  4. Advise on settlement opportunities and negotiate on your behalf
  5. Ensure your rights are fully protected throughout the process

If you have any questions about copyright infringement or the use of the Copyright Claims Board, Copyright Law or looking for assistance or advice on copyright infringement claims please contact one of our Copyright attorneys.