`
`
`
`
`
`
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE WESTERN DISTRICT OF WISCONSIN
`
`
`AMY LEE SULLIVAN,
`
`
`
`
`
`
`
`
`
`v.
`
`
`
`FLORA, INC.,
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
`
` OPINION AND ORDER
`
`
`
`15-cv-298-wmc
`
`
`
`
`
`Plaintiff,
`
`
`
`
`
`
`
`
`
`
`
`Defendant.
`
`
`
`
`
`Plaintiff Amy Lee Sullivan asserted copyright infringement claims and related unjust
`
`enrichment claims against defendant Flora, Inc., based on Flora’s use of Sullivan’s
`
`illustrations. This case was tried to a jury, who (1) rejected defendant’s joint works defense
`
`(Jury Verdict Phase I (dkt. #251)), (2) found in favor of plaintiff on both her copyright
`
`infringement and unjust enrichment claims (Jury Verdict Phase II (dkt. #253)), and (3)
`
`awarded her $143,500 in actual damages for copyright infringement, $3,600,000 in
`
`statutory damages for copyright infringement and $350,000 in damages for unjust
`
`enrichment (Damages Verdict (dkt. #257)). Not surprisingly, plaintiff opted for the
`
`statutory over the actual damages award for the copyright infringement claim, and the
`
`court entered judgment in her favor, resulting in a total damages award of $3,950,000.
`
`(5/16/17 Op. & Order (dkt. #278); Judgment (dkt. #279).)
`
`Before the court are a number of post-trial motions. Defendant seeks remittitur of
`
`the damages award or a new trial on damages as excessive or violating substantive due
`
`process. (Dkt. #295.) For the reasons described below, the court agrees that the amount
`
`of the jury’s statutory award for copyright infringement is very high, but not “monstrously
`
`excessive,” without a rational connection to the evidence or outside a rough comparison to
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 2 of 25
`
`similar cases. Similarly, the award for unjust enrichment is neither excessive, nor against
`
`the manifest weight of the evidence. The court also rejects defendant’s argument that
`
`awards, falling well within the statutory range, “shocks the conscious.” Sullivan also filed
`
`her own motion for an award of attorney fees and related non-taxable expenses. (Dkt.
`
`#386.) Because the court finds that defendant’s joint works defense was objectively
`
`reasonable and that there are no other circumstances that would warrant fee-shifting, the
`
`court will deny that motion as well. Even so, plaintiff is entitled to statutory costs pursuant
`
`to Federal Rule of Civil Procedure 54(d)(1) in the amount of $30,215.13. (Dkt. #284.)
`
`Finally, the parties filed related motions concerning execution of the judgment. The court
`
`will grant defendant a brief stay of 45 days to arrange a bond or other acceptable surety,
`
`or obtain a further stay from the Seventh Circuit. If defendant fails to accomplish one
`
`these steps, plaintiff will be free to proceed to enforce the judgment.
`
`I. Defendant’s Motion for Remittitur or a New Trial
`
`OPINION
`
`Defendant Flora seeks remittitur of the jury’s statutory damages award of
`
`$3,600,000.00, to $30,000.00, based on a theory that: (1) the jury only had a basis for
`
`finding infringement of, and thus awarding statutory damages for, 11 of the 33 copyrighted
`
`illustrations; (2) the jury had no basis for finding that the infringement was willful; and (3)
`
`an award at the statutory maximum for non-willful infringement is capped at $30,000 per
`
`work. Defendant also seeks remittitur of the award for unjust enrichment of $350,000.00,
`
`arguing that plaintiff Sullivan failed to prove any benefit to defendant and the record only
`
`
`
`2
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 3 of 25
`
`reflected three foreign-language productions of the Flor-Essence video. Alternatively,
`
`defendant seeks a new trial on damages.
`
`In reviewing a request for remittitur, the court is to consider: “(1) whether the
`
`award is monstrously excessive; (2) whether there is no rational connection between the
`
`award and the evidence; and (3) whether the award is roughly comparable to awards made
`
`in similar cases.” Deloughery v. City of Chi., 422 F.3d 611, 619 (7th Cir. 2005). In reviewing
`
`a request for a new trial under Federal Rule of Civil Procedure 59, the court considers
`
`whether the “verdict is against the manifest weight of the evidence.” Mejia v. Cook Cnty.,
`
`Ill., 650 F.3d 631, 633 (7th Cir. 2011).
`
`As an overarching matter, plaintiff contends that defendant should not be able to
`
`raise insufficiency of the evidence challenges in the context of a Rule 59 motion, having
`
`failed to move before the case was submitted to the jury under Rule 50(a) or to renew the
`
`motion under Rule 50(b). (Pl.’s Opp’n (dkt. #313) 4-5.) Although that sanction would
`
`be too harsh, Rule 59 may not be used to raise new theories or arguments that could have
`
`been presented before judgment was entered. See Uphoff v. Elegant Bath, Ltd., 176 F.3d
`
`399, 410 (7th Cir. 1999) (“Rule 59(e) may not be used to raise novel legal theories that a
`
`party had the ability to address in the first instance.”). Accordingly, the court will consider
`
`the merits of defendant’s various arguments in light of whether it could have raised them
`
`in a Rule 50(a) motion.
`
`
`
`3
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 4 of 25
`
`A. Statutory Damages Award for Copyright Infringement
`
`i. Number of Works
`
`First, defendant contends that while plaintiff’s copyrights cover 33 illustrations,
`
`plaintiff only introduced evidence to support a finding of infringement as to 11 of those
`
`illustrations.1 This finding is material because the jury was instructed to award statutory
`
`damages by individual work, as the law directs (Damages Instr. (dkt. #254) 2), and the
`
`court had previously determined that each illustration constituted a separate work.
`
`(4/17/17 Order (dkt. #240).)
`
`In response, plaintiff directs the court to Exhibit 384, containing the digital files of
`
`her copyrighted illustrations that Sullivan testified without contradiction were found on a
`
`hard drive copied from Flora’s own computer system. (Trial Tr. (dkt. #276) 60.) That
`
`Exhibit also describes the illustrations Flora used in foreign language productions. (Ex.
`
`384 (listing illustrations used in the Greek, Spanish and Chinese Flor- Essence videos,
`
`among others).) From this, a reasonable jury could infer that all 33 illustrations were used
`
`by Flora in violation of Sullivan’s copyrighted works. In addition to Sullivan’s testimony
`
`as to the use of her protected works reflected in Flora’s records and advertisements, plaintiff
`
`notes the testimony of Flora’s own employees, who acknowledged their use of her
`
`illustrations in other promotional materials and Flora’s efforts to modify the illustrations
`
`to avoid Sullivan’s claims of copyright infringement, which the jury could reasonably have
`
`found was insufficient. (Pl.’s Opp’n (dkt. #313) 7.)
`
`
`1 A detailed description of the nature of plaintiff’s multi-layered, original source art, including
`examples of copyrighted illustrations can be found in the court’s summary judgment decision. (Dkt.
`#101.)
`
`
`
`4
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 5 of 25
`
`Supplemented by this testimony from Sullivan and various Flora employees,
`
`therefore, a reasonable jury could have relied on Exhibit 384 to conclude that Flora
`
`continued to use either the original illustrations (or modified versions of those illustrations
`
`that still infringed Sullivan’s copyright) well beyond the scope of the originally limited
`
`license. Indeed, this finding was probably inevitable in light of defendant’s failure to
`
`develop any responsive evidence or argument during the course of trial, especially in the
`
`damages phase, that the jury should only award statutory damages based on some subset
`
`of Sullivan’s illustrations. Accordingly, the court rejects any challenge to the statutory
`
`damages award on this basis, finding the jury’s award for all 33 works had a rational
`
`connection to the evidence for purposes of defendant’s motion for remittitur and is not
`
`against the manifest weigh of the evidence for purposes of defendant’s motion for a new
`
`trial.
`
`ii.
`
`Jury’s Consideration of Various Factors
`
`Next, defendant challenges the jury’s statutory damages award on the basis that the
`
`jury disobeyed the court’s instructions in arriving at the $3.6 million award. Specifically,
`
`the jury was instructed that they may consider the following factors:
`
`
`
`the expenses that defendant saved and the profits that it earned because of
`the infringement;
`
`
`
`the revenues that plaintiff lost because of the infringement;
`
`
`
`the difficulty of proving plaintiff’s actual damages;
`
`
`
`the circumstances of the infringement;
`
` whether defendant intentionally infringed plaintiff’s copyright; and
`
` deterrence of future infringement.
`
`5
`
`
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 6 of 25
`
`(Damages Instr. (dkt. #254) 3.)
`
`Consistent with the law, the jury was neither instructed that they had to consider
`
`all of these factors, nor how they should weigh each of the factors; rather, they were told
`
`these factors simply provided guidance on how to consider a per work award of $750 to
`
`$30,000, or up to $150,000 if the jury found that defendant willfully infringed plaintiff’s
`
`copyright. Nevertheless, defendant now speculates that the jury’s treatment of three of
`
`the factors either compels remittitur or a new trial. The court addresses each of these three
`
`factors below.
`
`a. Flora’s Profits
`
`First, defendant argues that despite there being no evidence of defendant’s profits
`
`earned because of the infringement, the jury must have “guessed at Flora’s profits” and
`
`used that guess to support “this oppressive and disproportionate award.” (Def.’s Br. (dkt.
`
`#296) 13.) As context, the court previously determined that plaintiff could not pursue an
`
`actual damages award based on defendant’s lost profits because of this lack of evidence.
`
`(4/25/17 Op. & Order (dkt. #261) 1-7.) Still, defendant never objected to including both
`
`expenses saved and profits earned in the factors listed consistent with the pattern jury
`
`instructions.
`
`During deliberations on damages, the jury submitted a question asking for
`
`defendant Flora’s annual profits from 2014, 2015 and 2016 from the sales of two infringing
`
`products, 7 Sources and Flor-Essence. (Court Ex. 19 (dkt. #258-19).) Because there was
`
`no evidence breaking out profits attributable to the infringement, the court instructed the
`
`jury that “Your decision must be based on the evidence in the record.” (Court Ex. 20 (dkt.
`
`
`
`6
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 7 of 25
`
`#258-20).) Approximately 30 minutes later, the jury rendered their verdict. Defendant
`
`engages in rank speculation as to the importance of this brief exchange based solely from
`
`the short gap between the court’s answer and the jury’s verdict.
`
`Not only does defendant’s speculation run contrary to the evidence and instructions
`
`given to the jury, but it is much more likely that the jury understood the court’s response
`
`as confirming that there was no evidence as to defendant’s profitability. Moreover, there
`
`is nothing in the record to support defendant’s contrary theory. See CSX Transp., Inc. v.
`
`Hensley, 556 U.S. 838, 841 (2009) (“[J]uries are presumed to follow the court’s
`
`instructions.”). If anything, the quick turnaround suggests the jury finished its
`
`deliberations with renewed understanding that profits were not a factor they could
`
`meaningfully consider. Finally, since copyright law did not require plaintiff to prove
`
`defendant’s profits from infringement, any failure to provide the jury with a sense of those
`
`profits falls as much on defendant as plaintiff. Having taken a chance by not providing
`
`evidence on this guidepost, despite being in the best position to do so, defendant has little
`
`basis to complain about the jury choosing not to consider it (or even assuming the answer
`
`would likely be unhelpful to defendant).
`
`b. Difficulty in Proving Actual Damages
`
`Next, defendant contends that there was no evidence to support a jury finding that
`
`it was difficult to prove plaintiff’s actual damages, since the jury awarded her $143,500 in
`
`actual damages. This is a silly argument, however, since it is perfectly consistent to award
`
`known damages, while acknowledging that the evidence was not sufficient to determine
`
`other, less well known damages. Plaintiff concedes as much by contending that the jury’s
`
`
`
`7
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 8 of 25
`
`award may not reflect plaintiff’s actual damages, especially in light of the court’s ruling
`
`excluding expert testimony on a reasonable royalty rate.
`
`Moreover, since the jury was not aware that plaintiff could elect between the
`
`statutory and actual damages awards, they may have awarded a conservative amount for
`
`her actual damages to ensure that she did not receive a windfall. Regardless, the court
`
`presumes the jury awarded each category of damages based on the evidence and
`
`instructions on the law, which in its experience is generally the case. Regardless, the jury
`
`was not required to weigh the difficulty in proving actual damages heavily, nor is there any
`
`basis for finding that the jury’s award of actual damages runs counter to that instruction.
`
`c. Plaintiff’s Lost Revenues
`
`Finally, defendant contends that there was “no evidence in the record that plaintiff
`
`lost $3.6 million in revenue because of the infringement.” (Def.’s Opening Br. (dkt. #296)
`
`15.) Here, too, defendant fundamentally misunderstands the nature of the multi-factor
`
`test provided to the jury. The jury need not find that the statutory damages award matched
`
`plaintiff’s lost revenues. To the contrary, plaintiff’s lost revenues were merely one of
`
`several factors in a non-exclusive list that the jury could weigh in arriving at its statutory
`
`damages award.
`
`
`
`Even so, the court acknowledges that the statutory award far exceeds the original
`
`charge for plaintiff’s copyrighted work of $5,500, even accounting for the fact that its
`
`authorized use was expressly limited and that her copyright was for a unique “style” and
`
`“feel” that plaintiff was careful to protect. In particular, the court is concerned about the
`
`lack of mooring of the statutory award given the relatively small fee, the likelihood that
`
`
`
`8
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 9 of 25
`
`given an unrestricted use fee would likely have been negotiated at a reasonable multiple of
`
`the original fee, and lack of evidence of plaintiff charging a substantially larger multiple for
`
`unrestricted use of her work in any context.
`
`Offsetting these concerns, however, are the defendant’s failure to make most of
`
`these arguments to the jury, defendant’s apparent cavalier disregard of plaintiff’s copyright
`
`even after being specifically reminded of the express contractual limit on its use in any
`
`other advertising campaign, and Congress’s deliberate, significant increase in the range of
`
`statutory awards without reference to any cap based on plaintiff’s proof of lost revenue or
`
`profits.2 Moreover, as a one person shop, the plaintiff’s fixed costs were likely quite small
`
`and the marginal time spent in creating likely small given that her work had been largely
`
`created already through her use of computer modeling of the style that originally attracted
`
`Flora in the first place. Plus, it was reasonable for the jury to assume that the original bid
`
`was something of a loss leader, given the prospect of lucrative fees from defendant’s use of
`
`her copyright in future campaigns, which the jury was obviously persuaded defendant
`
`proceeded to do, albeit without compensation to plaintiff.
`
`d. Other Factors
`
`Accordingly, none of defendant’s speculation about how the jury may have
`
`considered or weighed the three factors that are arguably least supportive of a large
`
`statutory damages undermine the jury’s award -- especially when the jury was free to
`
`
`2 Congress increased the statutory damages range per work from $250 to $10,000 to $750 to
`$30,000 for knowing infringement, and increased the maximum award for willful infringement from
`$100,000 to $150,000, as part of the Digital Theft Deterrence and Copyright Damages
`Infringement Act of 1999. Act of Dec. 9, 1999, Pub. L. 106-160, 113 Stat. 1774.
`
`
`
`9
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 10 of 25
`
`consider and weigh the listed factors as they saw fit, as well as other factors not explicitly
`
`identified in the court’s instructions. In short, within the bounds of statutory limits, the
`
`jury was asked to and apparently did engage in a classic weighing of factors, which is now
`
`due substantial deference from this court. As a result, even if these factors, viewed in
`
`isolation, do not support the jury’s award, it does not render the award “oppressive and
`
`disproportionate,” as defendant now argues. (Def.’s Opening Br. (dkt. #296) 13.)
`
`Contrary to defendant’s positions, the jury could have reasonably relied upon, or
`
`placed the greatest weight on, the last three factors to arrive at its award: (1) the
`
`circumstances of the infringement; (2) whether defendant intentionally infringed plaintiff’s
`
`copyright; and (3) deterrence of future infringement. (See Pl.’s Opp’n (dkt. #313) 10-13.)
`
`Indeed, the facts of record here support a reasonable jury’s award of a substantial statutory
`
`damages award. This is not to say that the court would have arrived at the same statutory
`
`damages award. Although a statutory award above $1 to $2 million dollars would have
`
`struck the court as excessive, even allowing for the need to send a sufficient deterrence
`
`here, that is not the standard of review. Under the appropriate standard, this court is
`
`unable to find the jury’s award to be wholly unreasonable, much less “monstrously
`
`excessive,” without a rational connection to the evidence, or roughly incomparable to
`
`similar cases, nor that it is against the manifest weight of the evidence. Indeed, despite
`
`remarkable underlawyering by defense counsel, particularly in the damage phase of trial,
`
`the jury clearly understood that the purpose of statutory damages extend well beyond the
`
`actual damages suffered by Sullivan, especially where willful or reckless disregard of
`
`copyrights are involved. Indeed, the jury award of $143,500 in compensation for
`
`
`
`10
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 11 of 25
`
`defendant’s extensive, unauthorized use of plaintiff’s copyrighted works was reasonably
`
`commensurate with the relatively small sum of $5,500 that she was paid by defendant for
`
`the original, limited use of her work. Rather than award some irrationally larger number
`
`in reaching statutory damages, the jury was obviously struck by defendant’s recklessness
`
`in the continued, unauthorized and extensive use of her work in commercial, online
`
`advertising campaigns for its products around the world, and ultimately the need to
`
`reprimand and deter similar misuse of copyrighted works for unauthorized purposes.
`
`Moreover, for reasons expanded upon further in Section II of this opinion, the court finds
`
`this award to have a rational connection to the relatively one-sided evidence presented at
`
`trial. Finally, as also explained in Section II below, defendant has failed to convince the
`
`court that the jury’s award here is not roughly comparable to awards made in similar cases.
`
`iii. Willfulness Finding
`
`Based on the facts presented at trial, it appears that the jury awarded roughly
`
`$110,000 per work ($3.6 million total award, divided by the 33 illustrations). In reaching
`
`the $3.6 million award, therefore, the jury necessarily found that defendant willfully
`
`infringed plaintiff’s copyright. Otherwise, the jury’s award would have been capped by
`
`statute at $30,000 per work for a total of $990,000. The jury instructions stated
`
`“[i]nfringement is considered ‘willful’ if plaintiff proves that defendant knew that its
`
`actions constituted infringement of plaintiff’s copyright or acted with reckless disregard of
`
`plaintiff’s copyright.” (Damages Instr. (dkt. #254) 3.)
`
`Defendant contends that the evidence does not support a finding of willfulness, but
`
`makes its case by selectively directing the court to evidence in the record that: (1) Flora
`
`
`
`11
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 12 of 25
`
`was unaware of Sullivan’s role in creating the illustrations, having only worked with Joe
`
`Silver; (2) once Flora was made aware of Sullivan’s claims of copyright infringement, it
`
`removed her illustrations from Flora’s social media websites; and (3) Flora made efforts to
`
`make “clean” versions of the videos, purportedly removing Sullivan’s illustrations. (Def.’s
`
`Opening Br. (dkt. #296) 16-20.) On the other hand, as plaintiff points out, there was
`
`substantial, additional evidence in the record that rather than create new art, Flora simply
`
`decided to alter Sullivan’s copyrighted artwork by a “certain percentage,” reasoning
`
`(incorrectly as it turns out) that it had already paid for the art and did not want to pay for
`
`additional illustrations. (Pl.’s Opp’n (dkt. #313) 18-23.)
`
`If the jury credited this latter evidence, which it reasonably could and obviously did,
`
`then they also had a reasonable basis to find that: (1) Flora continued to infringe after
`
`being made aware of Sullivan’s copyrights by making relatively minor changes to her
`
`illustrations, including the use of her digital files to do so; and (2) such continued
`
`infringement was at least in reckless disregard of her copyrighted work. As such, the court
`
`concludes that defendant has failed to meet its burden of showing that a finding of
`
`willfulness for purposes of awarding enhanced statutory damages was against the manifest
`
`weight of the evidence.
`
`iv. Due Process Challenge
`
`Defendant’s alternative argument is that the jury’s award violates its substantive
`
`due process rights. In advancing this argument, defendant points out that the ratio of
`
`statutory damages to actual damages here is 25:1 ($3.6 million, as compared to $143,500),
`
`which it argues runs contrary to the Supreme Court’s decision in BMW of North America v.
`
`
`
`12
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 13 of 25
`
`Gore, 517 U.S. 559 (1996), calling into substantial question the constitutionality of any
`
`jury awards of punitive damages in common law tort cases that are at a ratio of more than
`
`10:1 to the jury’s award of compensatory damages. 517 U.S. at 582. However, the United
`
`States Supreme Court established the test for evaluating a due process challenge in the
`
`context of statutory damages scheme almost one-hundred years ago in St. Louis, I. M. & S
`
`Ry. Co. v. Williams, 251 U.S. 63 (1919), and has not departed from it since. The Williams
`
`Court held that due process is violated “only where the penalty prescribed is so severe and
`
`oppressive as to be wholly disproportioned to the offense and obviously unreasonable.” Id.
`
`at 66-67. While the Seventh Circuit does not appear to have considered a due process
`
`challenge to a statutory damages award for copyright infringement since BMW, other
`
`federal circuit courts in recent opinions have continued to embrace the Williams standard.
`
`See, e.g., Warner Bros. Entm’t, Inc. v. X One X Products, 840 F.3d 971, 977 (8th Cir. 2016);
`
`Sony BMG Music Entm’t v. Tenenbaum, 719 F.3d 67, 71 (1st Cir. 2013); Zomba Enters., Inc.
`
`v. Panorama Records, Inc., 491 F.3d 574, 587 (6th Cir. 2007).
`
`Moreover, in reviewing an award of statutory damages for copyright infringement,
`
`the Seventh Circuit has described the standard as “even more differential than an abuse of
`
`discretion.” Broad. Music, Inc. v. Star Amusements, Inc., 44 F.3d 485, 487 (7th Cir. 1995);
`
`see also Douglas v. Cunningham, 294 U.S. 207, 210 (1935) (explaining that Congress’s
`
`purpose in enacting the statutory-damage provision in the 1909 Copyright Act was to
`
`“take[] the matter out of the ordinary rule with respect to abuse of discretion.”).
`
`Recognizing that its position urging substantially less deference lacks clear support in
`
`current caselaw, defendant nevertheless urges the court to apply the three BMW
`
`
`
`13
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 14 of 25
`
`“guideposts.” As far as this court can discern, all federal circuit courts who have considered
`
`this approach have rejected it. See Sony BMG, 719 F.3d at 70-71; Capitol Records, Inc. v.
`
`Thomas Rasset, 692 F.3d 899, 907-908 (8th Cir. 2012); Zomba Enters., 491 F.3d at 587; see
`
`also James Michael Leasing Co., LLC v. PACCAR Inc., No. 11-C-0747, 2013 WL 694764, at
`
`*2 (E.D. Wis. 2013) (“[A]ll of the circuits to have addressed the question have held that
`
`those guideposts do not apply to statutory penalties.”).
`
`As the Eighth Circuit aptly explained, the concern about fair notice in the punitive
`
`damages context “does not apply to statutory damages, because those damages are
`
`identified and constrained by the authorizing statute.” Capitol Records, 692 F.3d at 907.
`
`Moreover, at least two of the guideposts plainly have no application:
`
`It makes no sense to consider the disparity between ‘actual
`harm’ and an award of statutory damages when statutory
`damages are designed precisely for instances where actual harm
`is difficult or impossible to calculate. Nor could a reviewing
`court consider the difference between an award of statutory
`damages and the “civil penalties authorized,” because statutory
`damages are the civil penalties authorized.
`
`Id. at 907-09. Accordingly, this court rejects defendant’s invitation to review the jury’s
`
`award of statutory damages for copyright infringement using a due process framework
`
`developed by the Supreme Court for common law punitive damages awards.3
`
`
`3 Even if the court were to entertain such a challenge, it is not clear that the appropriate comparison
`should be between the $143,500 compensatory damages award and the $3.6 million statutory
`damages award, since arguably the proper comparison should be the maximum statutory award for
`non-willful infringement of $990,000 and the $3.6 million award here, which would obviously fall
`well within the presumptive 1:10 ratio limit.
`
`
`
`14
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 15 of 25
`
`The issue remains, however, whether the $3.6 million statutory damages award is
`
`“so severe and oppressive as to be wholly disproportioned to the offense and obviously
`
`unreasonable.” Williams, 251 U.S. at 66-67. In addition to defendant’s attack that the
`
`jury’s award far exceeds the single-digit ratio generally permitted since BMW for awards of
`
`punitive damages, defendant also directs the court to two district court cases, which it
`
`contends are comparable, and for which the statutory damages awards were significantly
`
`less than that awarded here. (Def.’s Opening Br. (dkt. #296) 23.) First, in Spectrum Brands,
`
`Inc. v. I&J Apparel, LLC, No. 16-CV-741-JDP, 2017 WL 2303577, *4 (W.D. Wis. May
`
`26, 2017), this court awarded statutory damages in the amount of $10,000 per work in
`
`the context of a default judgment. Of course, that case did not concern the review of a
`
`jury award, which is entitled to great deference. See Deloughery, 422 F.3d at 619 (remittitur
`
`standard: set aside if it is “monstrously excessive”); Mejia 650 F.3d at 633 (Rule 59
`
`standard: “against the manifest weight of the evidence”); Williams, 251 U.S. at 66-67 (due
`
`process standard: “so severe and oppressive”).
`
`Moreover, in Spectrum Brands, the plaintiff sought an award of $30,000 per work
`
`(the statutory cap for non-willful infringement), significantly less than what plaintiff
`
`requested here. Spectrum Brands, 2017 WL 2303577, at*4. The court also awarded
`
`significant damages for trademark infringement of $200,000, emphasizing that although
`
`certain factors weigh in favor of awarding a similar amount for copyright infringement,
`
`“granting two separate damages awards under the same analytical framework would result
`
`in dual recovery.” Id. Finally, in considering the remedial purpose of the award, this court
`
`explained that “there is no information that would suggest that [the defendant] I&J
`
`
`
`15
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 16 of 25
`
`Apparel is a large-scale operation that would warrant damages of nearly half a million
`
`dollars as Spectrum Brands requests.” Id. All of these points of distinction render Spectrum
`
`Brands of little guidance here.
`
`The second case cited by defendant, Kinsey v. Jambow, Ltd., 76 F. Supp. 3d 708
`
`(N.D. Ill. 2014), is similarly unhelpful. In Kinsey, the statutory damages award was $7,500
`
`per work, for a total award of $22,500, and was also awarded in the default judgment
`
`context. Id. at 713. Moreover, the district judge faulted plaintiff for its failure to put forth
`
`evidence to support a default judgment award. Id. at 713. As a result, the court’s analysis
`
`in Kinsey is limited to its conclusion that “a $7,500 award of statutory damages for each
`
`work infringed is well within the statutory range and should be sufficient to deter future
`
`violations.” Id.
`
`In response to defendant’s citation to these two decisions, plaintiff also directs the
`
`court to a number of opinions that uphold jury awards for substantial statutory damages
`
`for copyright infringement, ranging from $1 million to $31.68 million. (Pl.’s Opp’n (dkt.
`
`#313) 23-24.) In its reply, defendant attempts to distinguish these cases, either on the
`
`basis that: (1) the works implicated in the awards were significantly more than the 11 (or
`
`even 33, assuming all were infringed, contrary to defendant’s position), and thus, the per
`
`work award was substantially less than that $110,000 per work award here; or (2) the
`
`defendants’ behavior was more egregious than that at issue here. Both are fair points.
`
`Indeed, the statutory award here appears to fall on the high end for copyright
`
`infringement claims given all of the facts of record. Still, defendant fails to develop any
`
`compelling argument why the $3.6 million award (or approximately $110,000 per work
`
`
`
`16
`
`
`
`Case: 3:15-cv-00298-wmc Document #: 327 Filed: 06/29/18 Page 17 of 25
`
`award) is so oppressive and severe as to violate its due process rights. While the award
`
`may result in a windfall to this plaintiff, as courts have repeatedly recognized, Congress
`
`obviously has in mind larger goals than just remuneration. Chi-Boy Music v. Charlie Club,
`
`Inc., 930 F.2d 1224, 1229 (7th Cir. 1991) (listing factors to consider in setting statutory
`
`damages award). Likely as a result, it is hard to find any reasonably contemporary case
`
`ordering remittitur of a jury’s statutory damages award in the copyright setting except in
`
`file-sharing (peer to peer) cases where the defendant is an individual, rather than a
`
`commercial enterprise, much less a large commercial enterprise like the defendant that a
`
`jury found willfully disregarded plaintiff’s copyright.
`
`B. Unjust Enrichment Damages
`
`As described above, the jury also awarded separate damages for plaintiff’s unjust
`
`enrichment claim. The jury was instructed that:
`
`Unjust enrichment damages cannot be awarded for any injury
`caused by copyright infringement occurring within the United
`States. The measure of damages under unjust enrichment is
`the value of the benefit conferred on defendant. The value of
`the benefit may be calculated based on the prevailing price of
`plaintiff’s services as long as those services benefited the
`defendant.
`
`(Damages Instr. (dkt. #254) 3-4.)
`
`In its motion, defendant cobbles together an argument seeking a remittitur between
`
`$9,000 to $60,000 based on a per video damages award of $20,000. Defendant attacks
`
`the jury’s award for two core reasons: (1) plaintiff failed to put forth evidence of a benefit
`
`to Flora; and (2) plaintiff only introduced evidenc