F. W. Woolworth Co. v. Contemporary Arts, Inc.

344 U.S. 228 (1952)

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Nature of the Case

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Facts

P made small sculptures and figurines and marketed them chiefly through gift and art shops. D, from a different source, bought 127 dozen cocker spaniel statuettes and distributed them through thirty-four Woolworth stores. Unbeknown to D, these dogs had been copied from P's work. An infringer becomes liable: 'To pay to the copyright proprietor such damages as the copyright proprietor may have suffered due to the infringement, as well as all the profits which the infringer shall have made from such infringement, and in proving profits P shall be required to prove sales only, and D shall be required to prove every element of cost which he claims, or in lieu of actual damages and profits, such damages as to the court shall appear to be just, and in assessing such damages the court may, in its discretion, allow the amounts as hereinafter stated . . . and such damages shall in no other case exceed the sum of $5,000 nor be less than the sum of $250, and shall not be regarded as a penalty. . . .' 17 U. S. C. § 101 (b). D showed, without contradiction, that the 127 dozen dogs were bought at 60 cents apiece and sold for $ 1.19 each, yielding a gross profit of $899.16. P sold its statuettes in three different grades for $4, $9, and $15. P proved the loss of some customers and offered, but was not allowed, to show complaints from sales outlets about the D competition, decline in D's sales, and eventual abandonment of the line with an unsalable stock on hand. The trial judge excluded or struck most of this testimony on the ground that authority to allow statutory damages rendered proof of actual damage unnecessary. The court held that if you establish this was an infringement of copyright, it is inescapably clear there is enough evidence in this case upon which to predicate damage up to $5,000. The court allowed recovery of statutory damages for $5,000 along with an injunction and attorney's fees. D appealed. The Appeals Court affirmed. The Supreme Court granted certiorari. D contends that the statute was misapplied because its gross profit of $899.16 supplied an actual figure which became the exclusive measure of its liability.