Gaylord v. United States
98 Fed. Cl. 389
Fed. Cl.2011Background
- Gaylord alleges the USPS infringed his copyright by using The Column in a 37-cent Korea War stamp.
- The court previously held Gaylord has a valid copyright but USPS fair use as a defense; Federal Circuit reversed on fair use and remanded for damages.
- Stamp image derived from KWVM sculptures; Alii photographed Real Life, which USPS paid for $1,500, but Gaylord did not consent.
- From 2003 to 2005 the stamp sold around 86.8 million copies and related merchandise featured the image.
- The court must determine damages under 28 U.S.C. § 1498(b) and related authorities, including possible prejudgment interest.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What damages are proper under §1498(b)? | Gaylord seeks actual damages equal to lost licensing value (up to $3M+). | Damages limited to a one-time fair-usage fee; no royalty-based damages; no prejudgment interest. | Damages capped at $5,000 as the one-time fair-valuation. |
| Is a royalty-based calculation permissible under §1498(b) for copyright infringement? | A royalty approach aligns with 35 U.S.C. §284 and §1498(a). | Royalty method not applicable to copyright; policy prohibits royalties for stamps. | Royalty method not applicable; rejected for copyright. |
| Is prejudgment interest available on copyright infringement under the government claim? | Interest should be awarded as part of damages. | Sovereign immunity forecloses prejudgment interest absent statute. | Prejudgment interest denied; no statute permitting it. |
Key Cases Cited
- Leesona Corp. v. United States, 599 F.2d 958 (Ct.Cl.1979) (focus on just compensation and owner loss)
- Standard Mfg. Co., Inc. v. United States, 42 Fed.Cl. 748 (Ct.Cl.1999) (zone of reasonableness for actual damages)
- Steve Altman Photography v. United States, 18 Cl.Ct. 267 (Cl.Ct.1989) (zone of reasonableness approach to damages)
- Wechsberg v. United States, 54 Fed.Cl. 158 (Fed.Cl.2002) (uses §504 guidance to interpret §1498(b) damages)
- On Davis v. Gap, Inc., 246 F.3d 152 (2d Cir.2001) (actual damages look from copyright owner's perspective)
- Williams & Wilkins Co. v. United States, 487 F.2d 1345 (Ct.Cl.1973) (illustrates actual damages framework for copyright)