Does $75 trillion even exist? The thirteen record companies that are suing file-sharing company Lime Wire for copyright infringement certainly thought so. When they won a summary judgment ruling last May they demanded damages that could reach this mind-boggling amount, which is .
Manhattan federal district court judge Kimba Wood, however, saw things differently. She labeled the record companies’ damages request “absurd” and contrary to copyright laws in a 14-page opinion. The record companies, which had demanded damages ranging from $400 billion to $75 trillion, had argued that Section 504(c)(1) of the Copyright Act provided for damages for each instance of infringement where two or more parties were liable. For a popular site like Lime Wire, which had thousands of users and millions of downloads, Wood held that the damage award would be staggering under this interpretation. “If plaintiffs were able to pursue a statutory damage theory predicated on the number of direct infringers per work, defendants’ damages could reach into the trillions,” she wrote. “As defendants note, plaintiffs are suggesting an award that is ‘more money than the entire music recording industry has made since Edison’s invention of the phonograph in 1877.’”
While Wood conceded that the question of statutory interpretation was “an especially close question,” she concluded that damages should be limited to one damage award per work. Glenn Pomerantz of Munger, Tolles & Olson, who represented 13 record company plaintiffs, did not return requests for comment.