The defendants each licensed computer code from Live Face for $328. Live Face then sued them for copyright infringement, seeking about $483,000 in damages. Live Face has roughly 200 copyright suits pending. After more than five years, with summary judgment pending, Live Face successfully moved to dismiss its suit with prejudice. It argued that a 2021 Supreme Court case (Google) made the defendants’ fair-use defense insurmountable. The defendants sought fees; the district court denied the motion, finding that the defendants did not prevail because of their defenses but rather due to a fortuitous, unforeseen change in the law.

The Seventh Circuit vacated and remanded. The Copyright Act authorizes prevailing parties to recover costs and fees, 17 U.S.C. 505. Four nonexclusive factors are relevant: the frivolousness of the suit; the losing party’s motivation for bringing or defending against a suit; the objective unreasonableness of the claims advanced by the losing party; and the need to advance considerations of compensation and deterrence. The defendants did prevail because of their defenses, including their fair-use defense. No matter which side prevailed in Google, the law would favor one of these parties. It is unclear whether Google changed anything relevant here, without a proper analysis of how Google affected Live Face’s claims. Even if Google did change something fundamental, the defendants raised defenses apart from fair use, which might have defeated Live Face’s claims. View “Live Face on Web, LLC v. Cremation Society of Illinois, Inc.” on Justia Law