The New Copyright Claims Board: An Easier Way to Settle Small-Claims Copyright Disputes

Imagine that you created a painting, and now someone is using the image without your consent. What action could you take? A lawsuit seems like a reasonable step to protect your copyrighted work. But how much money will you win compared to the legal fees you’ll have to pay? Until recently, suing someone for copyright infringement only made financial sense in cases where the court would award large enough damages to the claimant that they could recoup their legal fees. However, with the passing of the Copyright Alternative in Small-Claims Enforcement (CASE) Act in December 2020, copyright disputes with smaller financial stakes should become more cost-effective to resolve. 

Introduced to the House of Representatives by Hakeem Jeffries, D-NY, and Doug Collins, R-GA, last year, the CASE Act requires the Copyright Office to establish a Copyright Claims Board (CCB). This board will consist of three attorneys who will oversee copyright disputes of up to $15,000 per work infringed or $30,000 in any one proceeding (so-called “small claims”). A copyright owner may bring 3 types of claims before the CCB:

1. claims of infringement of a copyright;
2. claims seeking declarations that specific activities do not infringe copyright; and
3. claims of ‘misrepresentation’ in notices sent under the Digital Millennium Copyright Act (DMCA).

The new tribunal system should streamline the copyright dispute process in several ways. First, the CCB requires less documentary evidence than federal courts, meaning parties only have to disclose basic information. Further, hearings take place remotely—no need to go to court in person. And lastly, the process should be easy to navigate, reducing legal fees. 

The CASE Act is also noteworthy because the CCB can award damages to claimants even if their copyrights weren’t registered at the time of infringement. Taking the example at the start of the post, maybe someone used your painting image a few months before you received the copyright. With this change to the law, you could still receive up to $7,500 for that work being infringed.

A party can start a CCB proceeding by filing a claim and if the claim falls under the requirements of the CASE Act, the CCB will give the party ninety days to notify the respondent about the claim. Then, the respondent has sixty days to opt-out. Forgoing the CCB process returns the two parties to their original situation, and the claimant can still take their case to federal court.

Under the new Congressional Act, the CCB might start hearing cases as early as December 2021. Hopefully, this alternative to the federal court system will simplify the process of seeking justice for copyright infringement, reducing the time, documents, and costs required to settle disputes.

If you have questions, contact me.