Highlights Of Congressional Hearings On Copyright Remedies: Statutory Damages, Small Claims And Felonious Streaming

On July 24, 2014, the Judiciary Committee of the United States House of Representatives, through its Subcommittee on Courts, Intellectual Property and the Internet, held hearings on the subject of copyright remedies. Most of the discussion focused on the efficacy of statutory damages, which provide for awards between $750 and $30,000 per infringed work (with adjustments up to $150,000 per work for willful infringement). There was also discussion of the Copyright Office's recent proposal for a small claims tribunal. The proposed tribunal would enable individual copyright holders to seek a remedy for small-dollar-value infringements without bringing a copyright infringement action in federal court, which Representative John Conyers (D-Mich.) asserted can cost an average of $350,000.

Following is our summary of highlights from the witness testimony:

David Bitkower, Acting Deputy Assistant Attorney General, US Dept. of Justice

Acting Deputy Bitkower discussed the efforts of the Department of Justice to develop and maintain copyright enforcement programs to meet the challenges of the digital age. In particular, he called attention to the Department's efforts with regard to the "Mega Conspiracy" case, in which defendants associated with the Megaupload websites are currently facing extradition to the Eastern District of Virginia to face charges of criminal copyright infringement, fraud and money laundering. Mr. Bitkower's written testimony contains other examples of recent enforcement efforts.

Bitkower reported that internet streaming is becoming the preferred method for pirates to distribute unauthorized material online. However, because streaming has been held to be a "public performance" rather than a distribution or a reproduction, it is criminally punishable only as a misdemeanor and not as a felony. Bitkower asked that Congress amend the criminal provisions of the Copyright Act to clarify that illegal streaming can give rise to a felony prosecution. He also recommended increased funding to allow the Department to send specialized prosecutors to other countries to combat global IP piracy.

Steven M. Tepp, CEO of Sentinel Worldwide

Mr. Tepp, a former Copyright Office lawyer, provided oral and written testimony addressing the history of the relief available to copyright holders, including injunctive relief, actual damages, impoundment of infringing goods, statutory damages and attorneys' fees. He testified that this array of remedies has three...