Tetra Images, LLC v. Grahall Partners, LLC

Background

Tetra Images, LLC brought one claim under the Copyright Act against Grahall Partners, LLC and Grahall Consulting Partners, LLC concerning the unauthorized use of a photograph. Tetra alleged that it created the photograph in 2007 and registered it with the United States Register of Copyrights. It also alleged that the defendants used the photograph on a website without a license.

Tetra served Grahall Consulting Partners, LLC with the summons and complaint. After that entity failed to appear or respond, the Clerk entered a certificate of default. Tetra voluntarily dismissed Grahall Partners, LLC. Grahall Consulting Partners, LLC did not appear or respond to any filing. Tetra then moved for a default judgment seeking damages, a permanent injunction, costs, and attorneys’ fees.

Infringement Liability

For a copyright-infringement claim, a plaintiff must show ownership of a valid copyright and unauthorized copying. Because of Grahall Consulting Partners, LLC’s default, the court accepted the well-pleaded factual allegations as true, but it still reviewed whether those allegations and the submitted evidence established a valid claim. The court concluded that Tetra adequately stated copyright infringement because Tetra alleged copyright ownership and alleged that it had not licensed Grahall Consulting Partners, LLC to use the photograph, which the entity used on its website to promote its business.

Damages

Tetra sought statutory damages rather than actual damages and the infringer’s profits. The court determined that the photograph’s fair-market licensing value was $2,500 per year, relying in part on evidence that a similar photograph had been licensed for $4,000 per year. The court rejected Tetra’s request for a scarcity multiplier because Tetra provided no expert testimony on scarcity or exclusivity.

The court treated the infringement as willful because of Grahall Consulting Partners, LLC’s default and considered the need to deter future infringement. Applying a multiplier of five to the $2,500 fair-market value, the court awarded $12,500 in statutory damages.

Attorneys’ Fees and Costs

The court awarded Tetra $3,472.50 in reasonable attorneys’ fees. It found the submitted hourly rates and time spent reasonable. Although Tetra requested $400 in filing fees, $55.97 for shipment of documents, and $208 for service of process, the court found that the latter costs lacked supporting documentation. It awarded costs of $400 only.

Injunctive Relief and Interest

The court denied Tetra’s request for a permanent injunction. It concluded that Tetra had not established irreparable injury or that money damages were inadequate, and it noted that Grahall Consulting Partners, LLC had removed the photograph from its website, leaving little, if any, threat of continuing infringement.

The court denied pre-judgment interest because the legal basis for that relief was unclear, Tetra had not addressed the issue in its brief, and the circumstances were not exceptional. It also concluded that the statutory-damages award was sufficient for deterrence. The court granted post-judgment interest, to be calculated from the date the Clerk entered judgment under 28 U.S.C. § 1961.

Disposition

The court granted in part Tetra’s motion for a default judgment. It awarded $12,500 in statutory damages, $3,472.50 in attorneys’ fees, $400 in costs, and post-judgment interest. It denied the requests for pre-judgment interest and a permanent injunction. The Clerk was directed to enter judgment and close the case.