COSTS, INTELLECTUAL PROPERTY: SCOTUS Decides That Litigation Expenses Are Not Recoverable By Prevailing Copyright Infringement Plaintiff Unless Covered By General Federal Costs Statutes

$12.8 Million Litigation Expense Award Remanded For A Re-Do.

       In Rimini Street, Inc. v. Oracle USA, Inc., No. 17-1625 (U.S. March 4, 2019), the U.S. Supreme Court considered whether a $12.8 million litigation expense award—inclusive of expert witness, e-discovery, and jury consulting expenses—was properly found by a district court to be a justifiable award of “full costs” under 17 U.S.C. Section 505 in favor of a prevailing plaintiff in a copyright infringement suit.  The Ninth Circuit had affirmed the expense award, but SCOTUS disagreed in the unanimous opinion authored by Justice Kavanaugh. The litigation expenses had to fall within one of six narrower categories specified in 28 U.S.C. Sections 1821 and 1920 given that the Copyright Act did not expressly allow for recovery of other expenses. Since many of the “big ticket” items likely fell outside the narrower categories, a remand was in order for the district judge to scale back the award in line with SCOTUS’ opinion.