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Full Opinion
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF WISCONSIN
PREPARED FOOD PHOTOS, INC.,
Plaintiff,
Case No. 22-CV-642-JPS-JPS
v.
SHARIF JABER and NOFAL, LLC, ORDER
doing business as FOOD TOWN
MART,
Defendants.
1. INTRODUCTION
In this case, Plaintiff Prepared Food Photos, Inc. (âPlaintiffâ) accused
Defendants Sharif Jaber (âJaberâ) and NOFAL, LLC doing business as Food
Town Mart (âNOFALâ) (together, âDefendantsâ) of infringing its copyright
on a single photo of raw pork chops. See generally ECF No. 19. Plaintiff
specifically alleged that the infringement occurred when NOFAL posted
the subject photo on its business Facebook page, and that Jaber was
vicariously liable for that infringement because Jaber, â[a]s the manager
and sole member of NOFAL,â could control its infringing acts, failed to do
so, and ultimately profited from the infringement. Id. at 6, 8â9.
The case came before the Court for a jury trial on October 28 and 29,
2024. ECF No. 48. The jury found, in relevant part, that:
⢠NOFAL infringed upon the copyrighted material of Plaintiff;
⢠Jaber did not vicariously infringe upon the copyrighted material of
Plaintiff;
⢠The sum of $200.00 fairly and reasonably compensates Plaintiff for
its actual damages;
⢠The sum of $1,000.00 fairly and reasonably compensates Plaintiff for
its statutory damages;1 and
⢠NOFALâs infringement of Plaintiffâs copyrighted material was not
willful.
ECF No. 50. Plaintiff elected an award of $200.00 in actual damages, ECF
No. 52 at 1, which the Court incorporated into its final judgment, ECF Nos.
53 at 3 and 54. The Court also dismissed with prejudice Plaintiffâs claim of
vicarious liability against Jaber. ECF No. 54 at 2.
Plaintiff now moves the Court to amend or alter its judgment with
respect to both the juryâs award of actual damages and the juryâs finding
that Jaber was not vicariously liable for NOFALâs infringement, or, in the
alternative, for a new trial. ECF No. 56. The motion is fully briefed. ECF
Nos. 59, 60. For the reasons stated herein, the motion will be denied in all
respects.
2. FACTUAL BACKGROUND
The Court has compiled the following recitation of facts primarily
from the evidence presented and testimony elicited at trial.2 Where
1The jury was instructed to find both actual and statutory damages
amounts, subject to Plaintiffâs later election. See ECF No. 49 at 16â18; 17 U.S.C.
§ 504(a) (â[A]n infringer . . . is liable for either . . . the copyright ownerâs actual
damages . . . or . . . statutory damages . . . .â).
2As explained below, the legal standards for the relief that Plaintiff seeks
require close examination of what occurred at trial and what evidence the jury
considered in arriving at its verdict. But the parties, inexplicably, did not bother to
cite to the trial transcripts at all in preparing and briefing Plaintiffâs post-trial
motion. See, e.g., ECF No. 56 at 6 (Plaintiffâs brief summarizing the trial in a single
paragraph with no citations to the transcripts). This sent the Court on an
archaeological dig through the recordâthankfully a short one, given the brevity
of trialâto pinpoint what the parties presumably believe are the most relevant
additional context is needed and the facts are undisputed, the Court cites to
other materials in the record.
2.1 Background
Plaintiff owns a valid copyright in a photo of raw pork chops. ECF
No. 46 at 1 (stipulation as to ownership). The photo was taken in 1997, but
the copyright was not registered until 2017. ECF No. 57 at 51, 56.
On September 28, 2020, the photo was posted to a Facebook page
with the name of âVillard Foodtown.â ECF No. 57 at 59, 111â12; ECF No.
19 at 5 (screenshot of post); ECF No. 51 (post admitted as exhibit at trial).
Plaintiff alleged, and the jury found, that this photo was posted there
without Plaintiffâs permission and in infringement of its copyright. See
generally ECF No. 19; ECF No. 50 at 1.
The Facebook page is affiliated with a small, family-owned
neighborhood grocery store. At the time that Plaintiffâs photo was posted
to the Facebook page, Jaber owned NOFAL, the business entity that owned
and operated the grocery store. ECF No. 57 at 123; ECF No. 56-2 at 2. As
explained immediately below, the evidence presented at trial showed no
factual dispute as to Jaberâs ownership of NOFAL, nor was there a genuine
dispute that the Facebook page was operated on behalf of NOFAL and the
grocery store. As detailed infra Section 2.2, however, the jury heard
differing testimony and evidence as to whether Jaber himself knew about
the Facebook page, or knew what NOFAL employees (who are Jaberâs sons)
were doing with the Facebook page, at the time of the infringement.
portions. This is an inefficient use of the Courtâs time and resources, and a highly
questionable choice by counsel.
NOFAL, a limited liability company, owns and operates the store
located at 3217 Villard Avenue in Milwaukee, Wisconsin. ECF No. 57 at 123;
ECF No. 19 at 4. Jaber has owned NOFAL since 2017, when he bought the
business from his brother, Faraj Jaber (âFarajâ). ECF No. 57 at 124, 167â69;
ECF No. 36-2 at 12. Jaber testified that he is âthe only person that has control
over [its] business activities.â ECF No. 57 at 123; ECF No. 36-2 at 17 (Jaber
stating at deposition that he has âexclusive control over the business
activities of NOFAL LLCâ). Jaberâs sons Nofal and Amjad Hamed (âNofalâ
and âAmjadâ) were employees of NOFAL and worked at the grocery store;
both worked there before and at the time of the infringement. ECF No. 57
at 101â03, 138â39. Nofal stopped working there in 2021, id. at 136, 138, while
Amjad was still working there as of the time of trial, id. at 103.
The grocery store was formerly known as Villard Food Town. Id. at
169. When Jaber bought NOFAL in 2017, he changed the legal, doing-
business-as name of the grocery store to Food Town Mart. Id. However,
some signage with the former name Villard Food Town remained outside
the store even after the legal name change. Id.
Nofal ran a Facebook page with the name âVillard Foodtownâ
beginning in 2010, and Amjad was added as a registered user for this page
in 2013. Id. at 107â08; see also ECF No. 36-5. Amjad took primary control of
the Facebook page when Nofal stopped working at the grocery store in
2021. ECF No. 57 at 108, 136. Amjad represented that Nofal still made some
posts on the Facebook page after he stopped working at the grocery store,
though. Id. at 108.
As noted above, the subject photo was posted to this Facebook
pageâwith the name âVillard Foodtownââin September 2020; Amjad
testified that he created the post. Id. at 112.3 Defendantsâ counsel objected to
the introduction of the screenshot of the Facebook page on the basis that
that âVillard Food Town is not on trial here,â but the Court overruled the
objection. Id. at 60. Indeed, Jaber appeared to concede that, at the time of
the infringement, the Facebook page was functionally Food Town Martâs
page, despite still being named âVillard Foodtown.â Id. at 129 (âQ [by
Plaintiffâs counsel]: And you heard [Amjad] say that this is the Facebook
page that he was running on behalf of Food Town Mart; correct? A [by
Jaber]: Yes. Q: And do you agree, as you sit here today, this is the Facebook
page that was being run by Food Town Mart? A: Yes.â). Therefore, it does
not appear that Defendants genuinely disputed that the page was affiliated
with NOFAL.
Plaintiff discovered the infringing post in October 2021. ECF No. 57
at 58â59. At some point thereafter, the name of the Facebook page was
changed to Food Town Mart. Id. at 71, 121. Additionally, the post with
Plaintiffâs photo was taken off the Facebook page at some point after this
lawsuit commenced. Id. at 71, 120.
2.2 Testimony Related to Jaberâs Knowledge of the Facebook
Page, the Lawsuit, and Store Activities
Jaber acknowledged before the jury that, as of the time of trial, he
knew about the Facebook page and that it was affiliated with Food Town
3Amjad testified that the post would have reached about 1,000 Facebook
followers. ECF No. 57 at 191. Amjad walked the jury through a demonstration of
how he found Plaintiffâs photo on Google and used it in making the post. Id. at
186â89, 192â200. This demonstration showed that there was no âtrademark,â
âcopyright identification,â or âwatermarkingâ on the photograph as a Google
result. Id. at 189. The Google result included a notice that â[i]mages may be subject
to copyrightâ and linked to Plaintiffâs website, which included pricing and
subscription information. Id. at 194â98.
Mart (and therefore NOFAL). See id. at 129. However, he testified that he
only became aware of the Facebook page and its affiliation with NOFAL
after he and NOFAL were named as Defendants in the operative complaint
in February 2023. Id. at 132; id. at 144â45 (restating Jaberâs deposition
testimony that âin February, 2023, [his] sons disclosed to [him] for the first
time that this Facebook page belonged to [his] storeâ); id. at 171â72 (âQ [by
Defendantsâ counsel]: Were you ever made aware that there was . . . any
Facebook page for Villard Food Town? A [Jaber]: No. . . . Q: At any point in
time . . . up until the time that you were sued, did you . . . ever physically
see the Facebook page? A: No, sir.â). Jaber further denied having created or
directed anyone else to create the Facebook page, having âdone anything
as it relates to [NOFAL], LLC . . . on the internet,â or having âdone anything
as it relates to any social media or Facebook pages as it relates to Food
Town.â Id.
Amjadâwhom Plaintiff called to testify prior to calling Jaberâ
similarly stated that Jaber âdidnât knowâ that the page existed or that
Amjad and/or Nofal were making posts on the page until February 2023,
âafter he got a lawsuit for a Facebook page.â Id. at 115â16 (âI never told him
that I was posting on Facebook.â). Amjad also stated that Jaber never gave
him âany instructions with respect to how to run this Facebook pageâ or
âwhat to post or what not to post.â Id. at 114, 116. The infringing post
included information about pricing; Amjad testified that he would have
gotten price information either from Jaber or the grocery storeâs butcher,
but that he did not recall who gave him the pricing information included in
the post. Id. at 112â13; see also id. at 172 (Jaber testifying that he would be
able to tell Amjad product pricing information âon any particular dayâ but
would not ask why Amjad was asking that question).
Plaintiff questioned witnesses about Jaberâs responses to discovery
requests and prior deposition testimony from August to October 2023. On
these occasions, Jaber deniedâon his own behalf and as NOFALâs
corporate representativeâknowing about the Facebook page or the
infringing post. Id. at 125â27; 145â51. Plaintiff emphasized that these
positions during discovery were inconsistent with Jaberâs position at trial
that he knew about the Facebook page as of February 2023. See id. at 163
(Plaintiffâs counsel arguing that â[i]tâs a factual dispute issue as to whether
he knew or not and when he knew it. At one point [Jaber] testified I knew
in February, 2023. Yet in October of 2023, in August of 2023, heâs saying, no,
I didnât.â).
Plaintiffâs intellectual property director, Rebecca Jones (âJonesâ)
testified that, after discovering the infringing Facebook post, Plaintiff,
through counsel, sent an âinfringement letterâ ostensibly to Defendants,
dated November 22, 2021. Id. at 62â63. However, the letter was sent to
âVillard Food Town, LLC, . . . Attention Faraj Jaber,â which are ânot the
defendants in this caseâ4 and which were no longer the owner of the LLC
or the doing-business-as designation of the store at that time. Id. at 63; see
also id. at 89â90 (Jones confirming that no notice was sent to Jaber, either
personally or as president of NOFAL). Further, the letter was sent to â3127
West Villard Avenue,â which is not the correct address for the grocery
store, id. at 91; Jones stated that she pulled this incorrect address from the
Facebook page. Id. at 63â64, 70â71, 91. Jones indicated that she believed that
the letter was delivered and received based on âthe actions of the defendant
4Villard Food Town was the original defendant but was removed from
subsequent amended complaints. ECF Nos. 1, 9, 19.
after the letter was sentââtaking the photo down and changing the name
of the page, see id. at 121âbut admitted that she did not have proof of
delivery. Id. at 73â74.
Jaber testified that he did not receive the November 2021
infringement letter or any âletter like that at any point in time prior . . . to
being sued.â Id. at 173â74. He stated that he does not know how the
Facebook post was removed and the page name changed, and that he never
told Amjad or Nofal to remove the post. Id. at 176â78. Amjad denied
removing the post or changing the name of the page. Id. at 120â21. He
further stated that the post with Plaintiffâs photo pertained to a time-limited
sale but that it was not his typical practice to take a post down after the sale
that it advertised had expired. Id. at 204.
Plaintiff attempted to impeach Jaber by referencing his deposition
testimony and contrasting it with Amjadâs deposition and trial testimony,
see id. at 31â32 (Plaintiffâs opening statement discussing intention to
impeach Jaber), but the Court sustained objections to these lines of
questioning and excluded from evidence the photographs that Plaintiff
offered to support its questioning. For example, Plaintiff attempted to elicit
testimony from Amjad that hookahs were sold in the grocery store, a fact
that Jaber denied earlier in the discovery phase, and that his father was
âfamiliar with the products that are sold at the store.â Id. at 117â18; ECF No.
36-2 at 30â31. Similarly, Plaintiff unsuccessfully attempted to get Amjad to
testify about the layout of the store since Jaber denied in the discovery
phase that some photographs of the store on the Facebook page in fact
depicted the store. ECF No. 57 at 118â19; ECF No. 36-2 at 34â35.
Jaber said that he sells pork chops in his store âevery week,â and
confirmed that when âNOFAL . . . makes money, thatâs profit that goes to
[him]â and that there are âno other partners that get distributed the
money.â ECF No. 57 at 124, 181.
2.3 Testimony Related to Damages
Jones offered testimony relevant to Plaintiffâs damages. Plaintiff
maintains a library of about 18,000 stock photos of food; it employs food
stylists and photographers to create the images and engages attorneys to
copyright the images. Id. at 39â40. Plaintiff then licenses these photographs
to customersâgrocery stores and food delivery services as well as
marketing and advertising agenciesâon a subscription model. Id. at 42â46.
The cost of a subscription starts at $999 a month for a minimum
subscription term of twelve months; a subscriber who pays these fees may
access Plaintiffâs entire library of 18,000 images. Id. at 44â45.
It is not possible to license a single photo from Plaintiff; in order to
access one photo, a customer must enter into at least a twelve-month
subscription. Id. at 45. The purpose of this twelve-month subscription
requirement is to prevent a user from âdownload[ing] the entire library and
tak[ing] all 18,000 imagesâ and then âcancel[ing] tomorrow.â Id. at 44â45.
Jones testified that the advantage Plaintiff offers is âbrand identityâ and
âsemi-exclusivity[,] . . . because as part of the terms of use . . . , [customers]
have to provide [Plaintiff] with a list of clients,â which Plaintiff
âmonitor[s]â to ensure that customers in the same area are not using the
same photographs. Id. at 45 (also discussing Plaintiffâs efforts to prevent
âmarket saturationâ).
In the November 2021 infringement letter, Plaintiff demanded that
Defendants pay Plaintiff $30,000 in compensation for unauthorized use of
the photo and immediately cease use of its photo on the Facebook page. Id.
at 66, 68. Plaintiffâs rationale for asking for $30,000 was based on (1) the cost
of its subscription, (2) the length of time that Plaintiffâs photo was on the
Facebook page, and (3) an additional penalty for unauthorized use. Id. at
68. Under Plaintiffâs subscription modelâ$999 a month for a minimum of
12 monthsâDefendants owed $11,988 for each year in which the infringing
photo appeared on its Facebook page. Id. at 68â70. The photo appeared on
the page from September 2020 through at least November 2021âi.e., over
the span of two yearsâwhich under Plaintiffâs subscription model would
have required two twelve-month subscriptions, totaling roughly $24,000.
Id. Plaintiff asked for $30,000, âmore than what [Defendants] would have
had to pay legallyâ if they used Plaintiffâs photo with authorization,
because Plaintiff âdo[esnât] believe that somebody who steals an image
should pay the same as somebody who licenses it properly.â Id. at 68, 70
(âYouâre punished by having to pay more.â).
When asked on cross-examination to explain her statement in a
declaration that the unauthorized use of a single one of Plaintiffâs
photographs âgreatly reduce[s] the value of the library,â Jones testified that
an unauthorized use goes against what we are telling our
licensed paying subscribers they are receiving, which is the
enforcement of ensuring that only our subscribers are using
our photos, we have control over who and where those
photos are being used.
Id. at 94â95. Jones disagreed that â[t]he value of the library is only reduced
if someone is aware that . . . that photograph is a copyrighted photo.â Id. at
95. Jones further disagreed that Defendantsâ counselâs calculationâthat the
photo in the post represented about â.0005 percentâ5 of the value of
Plaintiffâs photo libraryâreflected the actual value of the photo. Id. at 94.
5Actually, one photo out of 18,000 is about .005 percent of the library.
Defendants attempted to impeach Jones by pointing out inaccurate
statements in her declaration as to who sent the infringement letter, to
whom it was sent, and whether any follow-up emails were sent to
Defendants. Id. at 89â90.
2.4 Jury Instructions and Verdict
The Court instructed the jury that, in order to find that âJaber is
[vicariously] liable for NOFAL[âs] . . . infringement of [Plaintiffâs]
copyright,â Plaintiff had to âprove, by a preponderance of the evidence,â
that
1. NOFAL . . . infringed [Plaintiffâs] copyright, . . . ;
2. . . . Jaber profited from [NOFALâs] infringement . . . ; and
3. . . . Jaber had the right and ability to stop or limit the
infringement by NOFAL . . . .
ECF No. 49 at 15. With respect to actual damages, the Court instructed the
jury that actual damages represent â[a]ctual losses from copyright
infringementâ and might include, for example:
⢠A decrease in the market value of [Plaintiffâs] copyrighted
work caused by the infringement;
⢠Profits that [Plaintiff] proves that it would have made
without the infringement. Profits are the revenue that
[Plaintiff] would have made on sales [it] would have made
without the infringement, less any additional expenses [it]
would have incurred in making the sales;
⢠What a willing buyer would reasonably have paid
[Plaintiff] to obtain a license to display its copyrighted
work.
Id. at 16â17. The Court instructed the jury as follows with respect to
statutory damages:
In determining the appropriate amount [of statutory
damages] to award, you may consider the following factors:
⢠The expenses that NOFAL . . . saved and the profits that it
earned because of the infringement;
⢠The revenues that [Plaintiff] lost because of the
infringement;
⢠The difficulty of proving [Plaintiffâs] actual damages;
⢠The circumstances of the infringement;
⢠Whether NOFAL . . . intentionally infringed [Plaintiffâs]
copyright; and
⢠Deterrence of future infringement.
With respect to the factor of intentional infringement: if
[Plaintiff] proves that NOFAL . . . willfully infringed
[Plaintiffâs] copyright, then you may, but are not required to,
increase the statutory damage award as high as $150,000.00.
Infringement is considered willful if [Plaintiff] proves that
NOFAL . . . knew that its actions constituted infringement . . .
or acted with reckless disregard of [Plaintiffâs] copyright. On
the other hand, if NOFAL . . . proves that it innocently
infringed [Plaintiffâs] copyright, then you may, but are not
required to, reduce the statutory damage award to a sum as
low as $200.00. Infringement is considered innocent if
NOFAL . . . proves that it did not know, and had no reason to
know, that its acts constituted infringement.
Id. at 17â18.
After hearing all the foregoing evidence, the jury found that NOFAL,
the business entity, was responsible for infringing Plaintiffâs copyright by
posting the photo on the Facebook page, but that Jaber was not vicariously
liable for NOFALâs infringement. ECF No. 50 at 1â2. The jury awarded $200
in actual damages and $1,000 in statutory damages. Id. at 3. The jury found
that NOFALâs infringement was not willful. Id.
3. MOTION TO ALTER OR AMEND JUDGMENT
Plaintiff moves under Federal Rule of Civil Procedure 59(e) for the
Court to amend its judgment âto conform with the damages evidence
presented at trialââthat is, to replace the juryâs $200.00 actual damages
award with an award of $23,976.00âand to reverse the juryâs determination
that Jaber was not vicariously liable for NOFALâs infringement. ECF No. 56
at 6â13. This request fails right out of the gate for legal reasons independent
of the trial record, so the Court will address it as a threshold matter.
Rule 59(e) is not an appropriate vehicle to displace the juryâs factual
findings in the manner Plaintiff seeks. âA motion to alter or amend a
judgment is only proper when âthe movant presents newly discovered
evidence that was not available at the time of trial or if the movant points
to evidence in the record that clearly establishes a manifest error of law or
fact.ââ Burritt v. Ditlefsen, 807 F.3d 239, 252â53 (7th Cir. 2015) (quoting Matter
of Prince, 85 F.3d 314, 324 (7th Cir. 1996)).
Plaintiff relies on the latter basis for relief, arguing that âthe juryâs
award of $200.00 in actual damages is the result of a manifest error of law
or factâ because it was unsupported by evidence adduced at trial, ECF No.
56 at 7â9, and is inconsistent with damages awards that other district courts
have issued in other cases in which Plaintiff recovered damages, id. at 9â12
(collecting cases). Plaintiff further argues that â[t]he juryâs verdict with
respect to [its] vicarious infringement claim against Jaber was . . .
unsupportedâ by the evidence elicited at trial. Id. at 12â13.
But as Plaintiffâs motion acknowledges, Rule 59(e) âenables a district
court to correct its own errors.â Id. at 7 (quoting Russel v. Delco Remy Div. of
Gen. Motors Corp., 51 F.3d 746, 749 (7th Cir. 1995)) (emphasis added by the
Court). The purported errors that Plaintiff identifies are with the juryâs
verdict, not the Courtâs judgment, which only memorialized that verdict.
Plaintiff has not pointed to any authority, binding or otherwise, that
permits the Court under Rule 59(e) to override the juryâs findings as to
actual damages and vicarious liability. To the contrary, âa court generally
may not increase a juryâs determination of damages by additur,â Hibma v.
Odegaard, 769 F.2d 1147, 1154 (7th Cir. 1985) (collecting cases and secondary
sources), which is squarely what Plaintiff asks the Court to do. Moreover,
overriding the juryâs factual findings by way of altering the Courtâs
judgment under Rule 59(e) risks âundermin[ing] the juryâs fact-finding role
and trampl[ing] on the defendantâs [S]eventh [A]mendment right to a jury
trial.â Robinson v. Watts Detective Agency, Inc., 685 F.2d 729, 742 (1st Cir.
1982) (citing Branson v. Prins Ins., Inc., 79 F.R.D. 662, 664 (D.S.D. 1978) and
11 CHARLES ALAN WRIGHT & ARTHUR R. MILLER, FEDERAL PRACTICE AND
PROCEDURE § 2817 at 111 (1973)); see also 11 CHARLES ALAN WRIGHT &
ARTHUR R. MILLER, FEDERAL PRACTICE AND PROCEDURE § 2810.1 (3d ed. 2024)
(âThe court may not, however, give relief under Rule 59(e) if this would
defeat a partyâs right to jury trial on an issue.â).
Some district courts have entertained motions to alter a juryâs factual
findings as to liability under Rule 59(e). See, e.g., Black & Decker, Inc. v. Robert
Bosch Tool Corp., No. 04 C 7955, 2007 WL 108412, at *5 (N.D. Ill. Jan. 12, 2007)
(considering but ultimately denying motion to alter judgment under Rule
59(e), which argued âthat the jury committed . . . . manifest errors of factâ
in deciding patent infringement claims); Orlowski v. Eriksen, No. 07 C 4015,
2009 WL 5183226, at *7 (N.D. Ill. Dec. 30, 2009) (considering but declining
under Rule 59(e) to amend jury finding that defendant was liable for
excessive force where jury also found that plaintiffâs damages were $0); but
see Genesys Cloud Servs., Inc. v. Talkdesk, Inc., No. 1:19-CV-00695-TWP-MKK,
2024 WL 4289737, at *13 (S.D. Ind. Sept. 25, 2024) (discussing case law and
noting that âamendment of the judgment is not a proper remedy for an
inconsistent verdictâ). But Plaintiff has not demonstrated that doing so is
proper.
It is also true that federal courts may increase or reduce a juryâs
damages award where the amount of damages is clear as a matter of law.
11 CHARLES ALAN WRIGHT & ARTHUR R. MILLER, FEDERAL PRACTICE AND
PROCEDURE §§ 2815 and 2816 (3d ed. 2024). But Plaintiff has not argued or
established that its damages are clear as a matter of law. First, as explained
further in the balance of this Order, the Court does not agree with Plaintiffâs
statement that it âproffered unrebutted testimony/evidence of its damages
that the jury completely ignored.â ECF No. 56 at 12. Jones testified as to the
value offered by Plaintiffâs subscription model, and then Defendantsâ
counsel cross-examined her about these statements, her assessment of the
value of one photo from the library, and her credibility. See supra Section
2.3. This gave the jury more to consider than just Jonesâs direct testimony.
Second, Plaintiff argues that the damages award should be in line
with awards in similar cases to which Plaintiff cites, but Plaintiff fails to
acknowledge that all of its cited cases were decided on default judgment
relying only on Plaintiffâs declarations (and well over half of which
awarded statutory, not actual, damages). ECF No. 56 at 9â12 (citing Prepared
Foods Photos, Inc. v. Patriot Fine Foods LLC, No. 21-82129-CV, 2022 U.S. Dist.
LEXIS 205649, at *10 (S.D. Fla. Mar. 22, 2022) (awarding $23,976.00 in
statutory damages); Prepared Food Photos, Inc. v. 193 Corp., No. 1:22-cv-
03832, 2022 U.S. Dist. LEXIS 205690, at *15 (N.D. Ill. Sept. 21, 2022)
(awarding $35,964.00 in actual damages); Prepared Food Photos, Inc. v. Miami
Beach 411 Corp., No. 22-23197-CIVALTONAGA/Damian, 2022 U.S. Dist.
LEXIS 216003, at *10 (S.D. Fla. Nov. 28, 2022) (awarding $35,964.00 in actual
damages); Prepared Food Photos, Inc. v. Fat Daddy Co., No. 22-61671-CIV, 2022
U.S. Dist. LEXIS 216004, at *24 (S.D. Fla. Nov. 29, 2022) (awarding $23,976.00
in statutory damages); Prepared Food Photos, Inc. v. Perry Wings Plus, Inc.,
No. 22-CV-61883-RAR, 2022 WL 22885965, at *8 (S.D. Fla. Dec. 19, 2022)
(awarding $71,928.00 in statutory damages); Prepared Food Photos, Inc. v.
Silver Star of Brooklyn / Brooklynâs Best Inc., No. 1:22-cv-04196-WFK-CLP,
2023 U.S. Dist. LEXIS 22037, at *19 (E.D.N.Y. Jan. 23, 2023) (awarding
$71,928.00 in statutory damages); Prepared Food Photos, Inc. v. Chi.-Mkt.-
Distribs., Inc., No. 1:22-CV-03299-CNS-MEH, 2023 WL 3568164, at *1 (D.
Colo. May 19, 2023) (awarding $35,964.00 in actual damages); Prepared Food
Photos, Inc. v. Exec. Dining Club, Inc., No. 22-cv-9446 (ER), 2023 U.S. Dist.
LEXIS 99676, at *2 (S.D.N.Y. May 25, 2023) (awarding Plaintiff $71,928.00 in
statutory damages); Prepared Food Photos, Inc. v. Shadowbrook Farm LLC, No.
1:22-CV-00704 (LEK/ATB), 2023 U.S. Dist. LEXIS 110171, at *15 (N.D.N.Y.
June 27, 2023) (awarding Plaintiff $23,976.00 in statutory damages); Prepared
Food Photos, Inc. v. WaDaYaNeed, LLC, No. 1:22-CV-01270 (LEK/ATB), 2023
U.S. Dist. LEXIS 110993, at *15 (N.D.N.Y. June 28, 2023) (awarding Plaintiff
$23,976.00 in statutory damages); Prepared Food Photos, Inc. v. Mikeyâs Famous
Marinades Corp., No. 23-CV-1484 (JMA) (AYS), 2023 U.S. Dist. LEXIS 132222,
at *13 (E.D.N.Y. July 31, 2023) (awarding $23,976.00 in statutory damages);
and Prepared Food Photos, Inc. v. New Kianis Pizza & Subs, Inc., No. 1:23-CV-
926-JRR, 2024 U.S. Dist. LEXIS 52023, at *4â5 (D. Md. Mar. 25, 2024)
(awarding $47,952.00 in actual damages)).
Even if any of these cases were binding authority, which they are
not, Plaintiff does not explain what relevance default judgment decisions
have in scrutinizing a juryâs award of damages or why they make Plaintiffâs
actual damages ascertainable as a matter of law. Plaintiff also conveniently
omits reference to another case it had before this Court in which the Court
granted default judgment but declined to adopt Plaintiffâs proposed
damage award because it âha[d] not explained why its own business
model, which is structured to disallow licensing of individual photos and
short-term licenses, is the single most accurate measure of its damages.â
Prepared Food Photos, Inc. v. Hometown Publâns II Inc., No. 22-CV-652-JPS,
2023 WL 3439535, at *4 (E.D. Wis. May 12, 2023), default judgment vacated due
to Plaintiffâs voluntary dismissal of the case, No. 22-CV-652-JPS, 2023 WL
11931194 (E.D. Wis. May 31, 2023).
To conclude: Plaintiff has not provided, and the Court is unable to
locate, any authority that would allow the Court to amend the judgment
and directly displace the juryâs findings in the manner Plaintiff suggests. It
actually appears that granting Plaintiffâs request would offend the Seventh
Amendment. In any event, Plaintiffâs arguments are, at bottom, challenges
to the sufficiency and weight of the evidence and the juryâs assessment
thereof. The motion admits this by its own terms. ECF No. 56 at 9 (âThere
is simply no rational basis for the juryâs award of $200.00 in actual
damages . . . .â) and 13 (â[T]hus the juryâs verdict [as to vicarious liability]
was against the weight of [the] evidence.â). These arguments are properly
addressed through a motion for a new trial, and the Court construes and
addresses them as such infra Section 4. See 11 CHARLES ALAN WRIGHT &
ARTHUR R. MILLER, FEDERAL PRACTICE AND PROCEDURE § 2807 (3d ed. 2024)
(noting that a court âmay grant a new trial if the size of the verdict is against
the weight of the evidenceâ).6 By invoking Rule 59(e), Plaintiff attempts to
6If Plaintiff wanted to argue that the jury did not have a legally sufficient
evidentiary basis to find that Jaber was not vicariously liable or to find any other
amount of damages besides that which Jones testified toâwhich is essentially
what Plaintiff is trying to achieve by asking the Court to amend the juryâs verdict
in this respect under Rule 59(e)âthen Plaintiff could have moved for judgment as
shoehorn its desired result into the Courtâs judgment, bypassing the jury
entirely. This is inappropriate. Plaintiffâs request to alter or amend the
judgment is not well taken and is therefore denied.
4. MOTION FOR A NEW TRIAL
Federal Rule of Civil Procedure 59(a)(1)(A) provides that the Court
âmay, on motion, grant a new trial on all or some of the issues . . . after a
jury trial, for any reason for which a new trial has heretofore been granted
in an action at law in federal court.â This is generally accepted to mean that
the Court âmay only order a new trial if the juryâs verdict is against the
manifest weight of the evidence, . . . or if for other reasons the trial was not
fair to the moving party.â Willis v. Lepine, 687 F.3d 826, 836 (7th Cir. 2012)
(quoting Marcus & Millichap Inv. Servs. v. Sekulovski, 639 F.3d 301, 313 (7th
Cir. 2011) (internal quotation marks omitted)).
âIn passing on a motion for a new trial, the district court has the
power to get a general sense of the weight of the evidence, assessing the
credibility of the witnesses and the comparative strength of the facts put
forth at trial.â Mejia v. Cook County, 650 F.3d 631, 633 (7th Cir. 2011) (citing
Byrd v. Blue Ridge Rural Elec. Coop., Inc., 356 U.S. 525, 540 (1958); United States
v. Washington, 184 F.3d 653, 658 (7th Cir. 1999); and Bob Willow Motors, Inc.
v. Gen. Motors Corp., 872 F.2d 788, 798 (7th Cir. 1989)). The Court does not
view the evidence in the light most favorable to either party; it instead
makes âits own assessment of the evidence presented.â Id. at 634 (citing
Cefalu v. Village of Elk Grove, 211 F.3d 416, 424 (7th Cir. 2000)). âWhile a court
a matter of law on these issues under Federal Rule of Civil Procedure 50(a) at the
close of evidence. He did not do so, despite invoking Rule 50(a) for a different
purpose. See ECF No. 57 at 209 (Plaintiffâs oral Rule 50(a) motion on fair use
defense). This fact further persuades the Court that Rule 59(e) is not the proper
basis for Plaintiffâs motion.
adjudicating a motion for a new trial may gauge the weight of the evidence
and assess witness credibility, a jury verdict should only be overturned if
âno rational juryâ could have rendered it.â Hakim v. Safariland, LLC, 79 F.4th
861, 868 (7th Cir. 2023) (quoting Whitehead v. Bond, 680 F.3d 919, 928 (7th
Cir. 2012)).
Plaintiff explicitly references only the âmanifest weight of the
evidenceâ standard in its motion, ECF No. 56 at 13, but appears to argue
that a new trial is warranted as a matter of fairness as well. The Court
understands Plaintiff to be arguing for a new trial as follows.
Plaintiff says that it was âseverely prejudiced by the Courtâs
evidentiary rulings excludingâ evidence of Defendantsâ statements in
discovery that were inconsistent with Jaberâs testimony at trial, and that this
evidence, if admitted, would have impacted the juryâs assessment of
vicarious liability, willfulness, and statutory damages. See id. at 13â14.
Relatedly, Plaintiff argues that the juryâs finding that Jaber was not
vicariously liable for NOFALâs infringement was against the manifest
weight of the evidence, at least in part because the Court excluded evidence
that might have persuaded the jury otherwise. Id. at 12â13 (arguing that
âthe juryâs verdict with respect to Plaintiffâs vicarious infringement claim
against Jaber was . . . unsupportedâ).
Plaintiff further challenges the juryâs award of $200 in actual
damages as âarbitraryâ and without ârational basis,â i.e., against the weight
of the evidence. Id. at 9, 12. As noted supra Section 3, although Plaintiff
raised them under Rule 59(e), the Court construes the arguments that the
juryâs finding no vicarious liability and awarding $200 in actual damages
were against the weight of the evidence under the standard for granting a
new trial.
Finally, Plaintiff briefly suggests that the juryâs allegedly improper
determination of actual damages, combined with the exclusion of Plaintiffâs
proffered evidence, led the jury to calculate an improper statutory damages
award, and that a new trial is warranted as a matter of fairness for this
reason. See id. at 14.
Because Plaintiffâs arguments about fairness and exclusion of
evidence are in many ways intertwined with its argument that the verdict
went against the weight of the evidence (and because Plaintiffâs motion,
frankly, is disorganized), the Court addresses these arguments as
appropriate with respect to each substantive verdict question.
4.1 Vicarious Liability
â[A] defendant is vicariously liable for copyright infringement if it
has the right and ability to supervise the infringing activity and also has a
direct financial interest in such activities.â Marobie-FL, Inc. v. Natâl Assân of
Fire Equip. Distribs., 983 F. Supp. 1167, 1179 (N.D. Ill. 1997) (quoting Hard
Rock Cafe Licensing Corp. v. Concession Servs., Inc., 955 F.2d 1143, 1150 (7th
Cir. 1992) (internal quotation marks omitted)); see also ECF No. 49 at 15. The
second element requires âevidence of a direct financial gain or that the
âavailability of infringing material acts as a draw for customers.ââ GC2 Inc.
v. Intâl Game Tech. PLC, 255 F. Supp. 3d 812, 825 (N.D. Ill. 2017) (quoting
Ellison v. Robertson, 357 F.3d 1072, 1078 (9th Cir. 2004)). âThe essential aspect
of the âdirect financial benefitâ inquiry is whether there is a causal
relationship between the infringing activity and any financial benefit a
defendant reaps . . . .â Ellison, 357 F.3d at 1079.
The partiesâ arguments for and against a new trial focus specifically
on the second element of vicarious liability: direct financial interest or gain
to Jaber from the infringement. ECF No. 56 at 12â14; ECF No. 59 at 5â6.
Plaintiff contends that the jury should have found Jaber vicariously liable
for NOFALâs infringement because the evidence at trial showed that Jaber
had a financial interest in and âprofited generallyâ from NOFALâs
infringing use of the photo on the grocery storeâs Facebook page. ECF No.
56 at 12â13. It blames the failure of its vicarious liability claim on
Defendantsâ counsel âconfus[ing] the issue by arguing (in closing) that
there was no evidence of a specific dollar amount of profit received by Jaber
with respect to the sale of pork chops.â Id. at 13; see also ECF No. 58 at 71
(relevant portion of Defendantsâ closing argument). Plaintiff additionally
argues that, had the jury been able to consider evidence that the Court
excluded, such as âphotographs on the Facebook [p]age other than
[Plaintiffâs photo],â it would have decided differently on this issue. ECF No.
56 at 13â14. The Court disagrees on all fronts. The evidence adduced at trial
amply supports the juryâs conclusion that Jaber was not vicariously liable
for NOFALâs infringement, and the admission of the evidence to which
Plaintiff refers would not have changed this result.
First of all, if Plaintiffâs counsel had concerns about Defendantsâ
counsel confusing the issue or misstating the applicable legal standard, this
post-trial motion should not be the first time that the Court is hearing that
concern. Plaintiffâs counsel could have provided the jury clarity on the legal
standard for vicarious liability by requesting additional jury instructions,
see ECF No. 48 at 7â8; objecting during the relevant portion of Defendantsâ
closing argument, ECF No. 58 at 71; and/or responding to this portion
during his own rebuttal, ECF No. 58 at 76â85. He did none of these things.
In any event, the jury was also explicitly instructed that âopening
statements and closing arguments by the lawyers for the parties are not
evidence,â ECF No. 58 at 21, so it is questionable how much stock the jury
put into Defendantsâ counselâs statement. See Chlopek v. Fed. Ins. Co., 499
F.3d 692, 702 (7th Cir. 2007) (noting that there is a âstrong presumption that
juries follow instructionsâ (citing 3M v. Pribyl, 259 F.3d 587, 600 (7th Cir.
2001)).
Moreover, the evidence presented to the jury could have supported
a finding that Jaber accrued no direct financial gain from the infringement
or that the infringement did not draw customers to the grocery store, just
as the evidence equally could have supported a finding to the contrary.
Jaber testified that the grocery store sells pork chops every week and that
he profits from those sales. ECF No. 57 at 181. Hearing this testimony, the
jury could have concluded that Jaber profited generally from the sale of
pork chops before, during, and after the infringing postâi.e., that the
infringing use of Plaintiffâs photo had no measurable effect on pork chop
sales at the grocery store, and that Plaintiffâs assertion that the infringing
use of the photo did generate profits for NOFAL and Jaber was mere
speculation. The jury could have reasonably concluded that Plaintiff failed
to establish that the infringing use of its photo had any specific effect on
Defendantsâ sales that would not have materialized otherwise.
Amjad testified that the post would have reached the grocery storeâs
approximately 1,000 Facebook followers, id. at 191, but Plaintiffâs counsel
made no attempt to determine whether Amjadâwho admitted he managed
the Facebook pageâknew if any of those followers were in fact converted
to store shoppers because of the post or if followers generally came into the
store because of Facebook posts. See Ellison, 357 F.3d at 1079 (noting as
relevant to the direct financial benefit element that âthere is no evidence
that indicates that . . . customers either subscribed because of the available
infringing material or canceled subscriptions because it was no longer
availableâ). Similarly, Plaintiffâs counsel presented no evidence that
Defendantsâ salesâof pork chops, specifically, or of merchandise,
generallyâincreased following the Facebook post. This further undermines
a conclusion that the infringing use of Plaintiffâs photo directly financially
benefited NOFAL and Jaber. It is immaterial that Defendantsâ counsel
argued that Plaintiff had not shown that Jaber attained a specific dollar
amount of profits, because there was ample evidence from which the jury
could reject Plaintiffâs own argument that Jaber âprofited generallyâ from
the infringement. ECF No. 56 at 13.
In light of the equally reasonable inferences that can be drawn from
the trial record, the Court cannot conclude that the juryâs verdict on
vicarious liability went against the manifest weight of the evidence. Indeed,
the Court is inclined to agree that simply because Plaintiff showed that
Jaber profited from sales at the grocery store as a general matter does not
mean that Plaintiff showed that grocery store sales or Jaberâs profits, in fact,
increased because of the infringement. Without a clear evidentiary consensus
as to one element of vicarious liability, the jury was obligated not to find
such liability. ECF No. 49 at 15 (requiring proof of all elements to sustain a
claim).7
7The parties do not dispute that Jaber had the âright and ability to
supervise the infringing activity.â Marobie-FL, 983 F. Supp. at 1179 (citation
omitted). Although the parties elicited much evidence about whether and when
Jaber knew about the Facebook page and the extent to which he knew about and
controlled NOFAL employeesâ activities, neither party asked for, and the Court
did not provide, further instruction to the jury about what it meant for Jaber to
have the âright and ability to stop or limit the infringement by NOFAL.â ECF No.
49 at 15.
To the extent the jury questioned whether Jaber, by virtue of his asserted
lack of knowledge of the Facebook page and post prior to February 2023, had the
right and ability to control the infringing activity, it appears that as a legal matter
The Court next addresses Plaintiffsâ contention that the Court
improperly excluded evidence. ECF No. 56 at 14. Plaintiff has not
adequately explained how it was prejudiced by the exclusion of other
photographs from the Facebook page and related testimony, or how the
admission of this evidence and testimony might have impacted the juryâs
analysis as to vicarious liability. The Court agrees that Jaber took
inconsistent positions throughout this lawsuit with respect to when he
knew about the Facebook page and its affiliation with NOFAL. But,
importantly, at trial in front of the jury, he admitted that as of February 2023
he knew of the Facebook page and the infringing post . So even if the Court
had permitted the jury to consider evidence contradicting Jaberâs earlier
denial of familiarity with the Facebook page, the post, or the store and its
products, the jury would have been entitled to credit his live testimonyâ
which did him no favorsâmore than that evidence. It appears that
crediting Jaberâs trial testimony is exactly what the jury did here, and the
Court finds no fault in that decision. Accordingly, the Court finds no merit
in Plaintiffâs argument that the Courtâs evidentiary rulings require a new
trial.
4.2 Damages
Plaintiffâs challenge to the juryâs award of $200 in actual damages as
against the weight of the evidence also fails. âThe court is required to give
he did. See Metro-Goldwyn-Mayer Studios Inc. v. Grokster, Ltd., 545 U.S. 913, 931 n.9
(2005) (explaining that the theory of âvicarious liability . . . allows imposition of
liability when the defendant profits directly from the infringement and has a right
and ability to supervise the direct infringer, even if the defendant initially lacks
knowledge of the infringementâ (citing Shapiro, Bernstein & Co. v. H.L. Green Co.,
316 F.2d 304, 308 (2d Cir. 1963) and Dreamland Ball Room, Inc. v. Shapiro, Bernstein
& Co., 36 F.2d 354, 355 (7th Cir. 1929))).
significant deference to the juryâs verdict and to limit its inquiry to whether
the award is âmonstrously excessive,â whether there is any rational
connection between the award and the evidence, and whether the award is
roughly comparable to those made in similar cases.â Golden v. City of
Chicago, No. 07 C 6928, 2009 WL 3152359, at *4 (N.D. Ill. Sept. 28, 2009)
(quoting Farfaras v. Citizens Bank and Tr. of Chi., 433 F.3d 558, 566 (7th. Cir.
2006)); see also Adams v. City of Chicago, 798 F.3d 539, 543 (7th Cir. 2015)
(noting that a court may grant a new trial on the basis of a juryâs
inappropriate damages award when it finds that âthere is no rational
connection between the award and the evidence, indicating that it is merely
a product of the juryâs fevered imaginings or personal vendettasâ (quoting
G.G. v. Grindle, 665 F.3d 795, 798 (7th Cir. 2011))).8
âIn the context of a plaintiffâs contention that a jury verdict is too
low, the issue is essentially whether âthe record is capable of supporting the
juryâs verdict, even if some would interpret that evidence differently.ââ
Golden, 2009 WL 3152359, at *4 (quoting Blumenfeld v. Stuppi, 921 F.2d 116,
118 (7th Cir. 1990)). âTypically, a reviewing court will not order a new trial
8Plaintiff cites the Adams standard for the first time in its reply brief. ECF
No. 60 at 3 (citing 798 F.3d at 543). Because the Court is construing Plaintiffâs Rule
59(e) motion as one for a new trial under Rule 59(a), it will look past the error.
Additionally, Plaintiff cites Entertainment USA, Inc. v. Moorehead
Communications, Inc. for the proposition that ââ[a]n award of damages must be
within the scope of the evidence that was presented at trialâ and cannot stray
beyond that scope.â Id. (quoting 897 F.3d 786, 793 (7th Cir. 2018)). Plaintiff fails to
indicate that Entertainment USA was analyzing damages in a breach of contract
action under Indiana law and quoting Indiana case law. Ent. USA, 897 F.3d at 793
(quoting Indianapolis City Market Corp. v. MAV, Inc., 915 N.E.2d 1013, 1026 (Ind. Ct.
App. 2009)). Assuming that Plaintiffâs counsel actually read the case he cites, he
offers no explanation for why Indiana contract lawâor an Indiana state courtâs
pronouncement of how a jury may determine damagesâshould govern the juryâs
determination of damages in this copyright case under federal law.
on damages âmerely because [it believes] the juryâs award was too low. The
assessment of damages is particularly within the province of the jury as the
trier of fact.ââ Id. (quoting Blumenfeld, 921 F.2d at 118 and Fenolio v. Smith,
802 F.2d 256, 259 (7th Cir. 1986)).
Plaintiff emphasizes that â[t]he jury was not free to disregard the
only testimony/evidenceâ it heard with respect to damages: Jonesâs
statement that NOFALâs use of the photo over a period spanning two years
would have been subject to Plaintiffâs usual licensing fee and structure,
totaling $23,976 in subscription fees, and that Plaintiffâs other customers
pay such fees to use its services. ECF No. 56 at 7â8. Plaintiff insists that this
means that it established as an undisputed fact that $23,976 is â[w]hat a
willing buyer would reasonably have paid [it] to obtain a license to display
its copyrighted work.â Id. at 8 (citing ECF No. 49 at 17).
In response, Defendant notes that the jury was âentitled to reject
[Jonesâs] testimonyâ after considering that the copyright for the photo was
not registered until 20 years after it was taken, inconsistencies between her
declaration and testimony at trial, and Jonesâs testimony on cross-
examination about the relative value of a single photo in Plaintiffâs photo
library. ECF No. 59 at 4 (noting that Jones âadmittedâ that the photo
represented .005 percent of Plaintiffâs total library). Plaintiff contends that
â[e]ven if Defendantsâ counselâs division question amounted to evidence (it
did not), that would have resulted in a $.60 verdict for Plaintiff,â so the
juryâs $200 damages award could not have been calculated to reflect the
value of a single photo. ECF No. 56 at 9. Plaintiff also argues that any issues
on which Jones was âdiscreditedâ by her testimony are irrelevant to the
issue of damages. ECF No. 60 at 4.
The Court takes strong exception to counselâs suggestion that
Plaintiff established as an undisputed fact that a willing buyer would have
paid $23,976 to use the single photo at issue in this case. A case that Plaintiff
cites, ECF No. 56 at 8, Epic Systems Corp. v. Attachmate Corp., provides
helpful guidance on the issue of damages in a copyright case:
Calculating damages based on âfair market valueâ is the
preferred approach taken in cases involving the unauthorized
use of copyrights . . . . McRoberts Software, Inc. v. Media 100,
Inc., 329 F.3d 557, 566 (7th Cir. 2003) . . . ; Deltak, Inc. v.
Advanced System, Inc., 767 F.2d 357, 364 (7th Cir. 1985). . . . In
calculating the fair market value of an unauthorized use,
courts will attempt to determine the price to which a willing
buyer and a willing seller would have agreed had they
engaged in an ex-ante âhypothetical negotiationâ for the
specific type of unlicensed use at issue. McRoberts Software,
Inc., 329 F.3d at 566. . . . Some of the factors commonly
considered [in this analysis] include âpast arms-length
licensing practices by the copyright owner or the infringer for
similar uses and âbenchmarkâ licenses by others in the
industry may be useful.â Gaylord [v. United States], 777 F.3d
[1363,] 1368 [(Fed. Cir. 2015)]. Moreover, âthe court is not
constrained to accept particular practices of the parties on
either sideâeither to allow owners to charge what they
would like to have charged if unconstrained by reality or to
shield infringers from paying fair market value for what they
took.â Id. (internal citations and quotations omitted).
No. 15-CV-179-BBC, 2016 WL 3703084, at *2 (W.D. Wis. July 8, 2016). The
Court instructed the jury in this case that it could use this fair market value
approach in determining actual damages. ECF No. 49 at 16â17.9
9The jury was also permitted to consider â[a] decrease in the market valueâ
of the photo because of the infringement and profits that Plaintiff would have
made without the infringement as measures of actual damages. ECF No. 49 at 17.
So the focus is not just whether Jonesâs testimony about licensing fees
is or is not dispositive, but more broadly whether $200 reflects the fair
market value of Plaintiffâs photo (or some other measure of Plaintiffâs
damages) based on all the evidence adduced at trial and all reasonable
inferences that can be drawn from it.
First, the Court finds that Jonesâs testimony was not entirely
dispositive on the matter of actual damages, because accepting it would
require the jury to assume facts not in evidence. As one of the cases Plaintiff
relies on states, Plaintiffâs annual licensing fees are only a âuseful proxyâ of
its actual damages. ECF No. 56 at 9 (quoting Patriot Fine Foods LLC, 2022
U.S. Dist. LEXIS 205649, at *10). That district court specifically noted that
Plaintiff had not established âwhether any licensor ha[d] paid that amount
to utilize a single photograph in the library.â Id. Similarly, here, Plaintiff
established that its current customers have agreed to pay its annual
licensing fees, but it did not establish that any customer/licensor had paid
or would pay that amount to utilize a single photo. Adopting Plaintiffâs
position would require the jury and the Court to assume a fact that was not
established and that, frankly, goes against all reason: that a would-be
licensor (in this case, a single family-owned neighborhood grocery store)
would pay about $12,000 a year to utilize a single photo.
Second, and more importantly, the jury also could reasonably infer
from the evidence that $200 reflects the fair market value of Plaintiffâs photo
or otherwise is an accurate measure of Plaintiffâs damages. As the
authorities above suggest, determining the price to which a buyer and seller
would have agreed for a one-time use of a single photo is not driven solely
by the price that the seller (here, Plaintiff) names, and the jury was not
required to make the unreasonable assumption that a licensor in NOFALâs
position would have agreed to Plaintiffâs licensing fee. Epic Sys., 2016 WL
3703084, at *2 (noting that the analysis focuses on âthe specific type of
unlicensed use at issueâ (citing McRoberts Software, Inc., 329 F.3d at 566 and
Gaylord, 777 F.3d at 1368)). Further, just because Plaintiffâs licensing model
does not permit licensing of single photos does not mean that the cost of a
single photo should be discounted as a measure of actual damages. Id.
(â[T]he court is not constrained to . . . allow owners to charge what they
would like to have charged if unconstrained by reality . . . .â (quoting
Gaylord, 777 F.3d at 1368)).
Plaintiff raises the fair point that the jury did not award the cost of a
single photo as its actual damages and instead settled on an amount
somewhere between the cost of a single photo and the cost of two twelve-
month subscriptions to Plaintiffâs library. But the Court finds no basis to
suggest that this requires reversal of the juryâs damages award and a new
trial. It seems likely that the jury was attempting to award Plaintiff more
than the cost of a single photo while also penalizing Defendants and
recognizing that no willing buyer would have agreed to pay Plaintiffâs
twelve-month subscription fees for a one-time use of a single photo. This is,
after all, essentially what Plaintiff asked for in its November 2021 demand
letter: that Defendants pay some amount in excess of what a lawful licensor
would have paid, to reflect the unlawful infringement. See ECF No. 57 at 70
(Jones testimony regarding the demand letter) (âYouâre punished by
having to pay more.â). Or perhaps the jury was attempting to award the
value of a single photo, accounting not only for the raw mathematical value
of a single photo out of a library of 18,000, but also the time and effort that
went into creating, copyrighting, and maintaining the single photoâfacts
to which Jones testified. These are both appropriate ways of protecting the
interests of the copyright owner while not âshield[ing] infringers from
paying fair market value for what they took.â Epic Sys., 2016 WL 3703084,
at *2 (quoting Gaylord, 777 F.3d at 1368).
Alternatively, perhaps the jury found that $200 fairly accounted for
the decrease in the market value of Plaintiffâs copyrighted work. Jones
testified that the use of a single one of Plaintiffâs photographs âgreatly
reduce[s] the value of the library.â ECF No. 57 at 94. Perhaps the jury
credited this andâalthough Jones refused to speculate on the degree of
reduction in the value of the libraryâconcluded that, despite a single photo
having only nominal value when viewed as part of a library of 18,000, the
infringing use lowered the value of Plaintiffâs library by $200. All of the
above-stated conclusions were reasonable ones to draw in light of the
evidence and were âwithin the province of the jury[,] as the trier of fact,â to
draw. Blumenfeld, 921 F.2d at 118 (citation omitted).
It is true, as Plaintiff points out, that âDefendants did not offer any
expert testimony concerning the value of a single photograph or the entirety
of Plaintiffâs library.â ECF No. 56 at 7. But Plaintiff does not suggest, let
alone demonstrate, that the introduction of such evidence would have
changed the juryâs assessment of actual damages.10
10To the contrary, it appears that such evidence would, in all likelihood,
have supported the juryâs damages award rather than undermine it. See, e.g.,
Pricing & Subscriptions, GALLERY STOCK, https://www.gallerystock.com/pricing
[https://perma.cc/K6KY-96LH] (last visited Apr. 7, 2025) (providing a one-time use
of stock photo in social media starting at $65 âbased on factors such as . . .
exclusivity[] and geographic distributionâ); Pricing, SHUTTERSTOCK,
https://www.shutterstock.com/pricing (last visited Apr. 7, 2025) (providing a two-
pack of stock photos with âenhancedâ licensing at $159, an annual subscription
starting at $29 per month, or a month-to-month subscription starting at $49 per
month); Plans and Pricing, GETTY IMAGES, https://www.gettyimages.com/plans-
For all these reasons, the Court finds that the juryâs actual damages
award was supported by the record and all reasonable inferences to be
drawn therefrom. Accordingly, the size of the actual damages award is not
a basis to order a new trial.
4.3 Statutory Damages and Willfulness
Having concluded that the juryâs conclusion that Jaber was not
vicariously liable and its award of actual damages were not against the
weight of the evidence, the Court can make quick work of Plaintiffâs
remaining arguments. As a threshold matter, these arguments are brief and
therefore likely waived as completely underdeveloped. Schaefer v. Universal
Scaffolding & Equip., LLC, 839 F.3d 599, 607 (7th Cir. 2016) (âPerfunctory and
undeveloped arguments are waived, as are arguments unsupported by
legal authority.â (citing United States v. Hook, 471 F.3d 766, 775 (7th Cir.
2006))). But they also have no merit.
Plaintiff says that the Courtâs decision to exclude evidence of
Defendantsâ statements in discovery that were inconsistent with Jaberâs
testimony at trial resulted in an unfair trial because it prevented the jury
from accurately assessing whether Defendantsâ conduct was willful and
accordingly impacted its $1,000 statutory damages award. ECF No. 56 at 14.
The Court disagrees, for reasons already explained: while it is true that
Jaber made incorrect statements in discovery, he corrected the mistakes and
testified truthfully to the jury even though doing so was not to his benefit,
and the jury was entitled to credit that trial testimony. This would be true
even if the Court had admitted the evidence to which Plaintiff refers.
and-pricing [https://perma.cc/8MWD-N6LF] (last visited Apr. 7, 2025) (providing
for download of a single image starting at $199).
Plaintiff's argument that the trial was unfair because the juryâs
allegedly improper determination of actual damages infected its
determination of statutory damages, id., also fails. As already explained, the
juryâs actual damages award was not improper. Plaintiff says that the actual
damages award affected consideration of âthe revenues that Plaintiff lost
because of the infringement,â id., one of several factors guiding the juryâs
discretion in determining statutory damages. ECF No. 49 at 17. For the same
reasons explained above, it is not reasonable to conclude that Plaintiff lost
over $24,000 in revenue (licensing fees) from the infringing use of a single
photo, because Plaintiff did not establish that $24,000 was the fair market
value of this use.
The Court therefore cannot conclude that the trial was unfair to
Plaintiff for either of these reasons.
5. CONCLUSION
For all the reasons stated above, Plaintiffâs motion for a new trial or
to alter or amend the judgment will be denied.
Accordingly,
IT IS ORDERED that Plaintiff Prepared Food Photos, Inc.âs motion
for a new trial and/or to amend judgment, ECF No. 56, be and the same is
hereby DENIED.
Dated at Milwaukee, Wisconsin, this 7th day of April, 2025.
BY THECOURT:
\\ AV Se
PR
PUY fea ,
JAP. Stay ueller
U.S: District Judge
Page 32 of 32 Case Information
- Court
- E.D. Wis.
- Decision Date
- April 7, 2025
- Status
- Precedential