Ehmann, Eric v. Metropulos, Nicholas, 3:19-cv-00586

Background

Tracy Ehmann created and registered copyrighted Hodag designs (2006); plaintiffs later claimed Tracy transferred her copyright interests to Eric Ehmann.
Defendants Nicholas and Trish Metropulos used Hodag artwork on merchandise; plaintiffs sued for copyright infringement, alleging defendants exceeded a limited 2009 license.
At a two-day jury trial, the jury found defendants proved by a preponderance that Tracy granted an implied license to use the Hodag logos; judgment entered for defendants.
Defendants moved under 17 U.S.C. § 505 for prevailing-party attorney’s fees ($46,988.95) and costs ($7,165.30).
The court found discretionary factors (including a Seventh Circuit presumption favoring prevailing defendants, plaintiffs’ weak proof of exceeding the license, and plaintiff Eric’s obstructive litigation conduct) supported an award but reduced fees by one-half for both parties’ failure to document licensing.
The court awarded $24,175.25 in attorney fees and related travel/copy costs, and granted $2,166.30 of taxable costs (deposition transcripts and witness fees) but denied the $4,999 forensic-imaging fee, for a total award of $26,341.55.

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Entitlement to fees under 17 U.S.C. § 505	Plaintiffs did not meaningfully contest fee entitlement.	Prevailing defendants are presumptively entitled to fees; factors favor award.	Court granted fees under § 505, applying discretionary factors and Seventh Circuit guidance.
Weight of discretionary factors (frivolousness, motivation, reasonableness, deterrence)	Plaintiffs argued their claims were plausible and sincere (Tracy credible).	Defendants argued plaintiffs’ case was weak, discovery conduct increased costs, and a presumption favors prevailing defendants.	Factors favored defendants overall; plaintiff Eric’s conduct supported deterrence/fee award.
Amount of fees (lodestar; reductions)	Plaintiffs noted defendants were insured but did not contest rates/hours; argued equities (pro se plaintiff, sincerity) merit reduction.	Defendants sought full lodestar ($45,626.50) plus travel/copy/process costs.	Court found rates/hours reasonable but reduced award by 50% to account for shared responsibility and equities; awarded $24,175.25 (fees + travel/copy/process).
Recoverability of digital forensic fee in bill of costs	Plaintiffs objected that the $4,999 Phase I forensic invoice was excessive and largely analysis rather than copying, and defendants already had metadata copy.	Defendants sought $4,999 for imaging and metadata analysis as taxable costs under § 1920(4) and Split Pivot.	Court denied the $4,999 forensic fee because defendants did not segregate pure copying charges and had received metadata from plaintiffs; awarded $2,166.30 for transcripts and witness fees.

Key Cases Cited

Kirtsaeng v. John Wiley & Sons, Inc., 579 U.S. 197 (2016) (Copyright Act fee-award discretion and factors)
Fogerty v. Fantasy, Inc., 510 U.S. 517 (1994) (fee-award standards in copyright cases)
Timothy B. O’Brien LLC v. Knott, 962 F.3d 348 (7th Cir. 2020) (presumption favoring prevailing defendants)
Klinger v. Conan Doyle Estate, Ltd., 761 F.3d 789 (7th Cir. 2014) (importance of strength of prevailing party’s case and relief obtained)
Assessment Techs. of Wis., LLC v. WIREdata, Inc., 361 F.3d 434 (7th Cir. 2004) (fee-award factors and defendant presumption)
Riviera Distributors, Inc. v. Jones, 517 F.3d 926 (7th Cir. 2008) (Copyright Act treats plaintiffs and defendants equally for fee awards)
Split Pivot, Inc. v. Trek Bicycle Corp., 154 F. Supp. 3d 769 (W.D. Wis. 2015) (permissible ESI copying costs under § 1920(4))
Race Tires America, Inc. v. Hoosier Racing Tire Corp., 674 F.3d 158 (3d Cir. 2012) (limits on taxable ESI processing costs)
Colosi v. Jones Lang LaSalle Americas, Inc., 781 F.3d 293 (6th Cir. 2015) (awarding ESI imaging costs under narrow definition)
CBT Flint Partners, LLC v. Return Path, Inc., 737 F.3d 1320 (Fed. Cir. 2013) (ESI copying/imaging costs analysis)
Sterling Nat'l Bank v. Block, 984 F.3d 1210 (7th Cir. 2021) (noting ESI collection/processing often non-taxable as costs)
Hecker v. Deere & Co., 556 F.3d 575 (7th Cir. 2009) (ESI processing and nonrecoverable costs)
Nat’l Org. for Women, Inc. v. Scheidler, 750 F.3d 696 (7th Cir. 2014) (definition of "necessarily obtained" for transcript costs)