OPINION & ORDER
This decision resolves a post-trial application for attorneys’ fees and costs. Between May 27 and June 5, 2014, the Court presided over a jury trial in which the hip-hop group the Beastie Boys and affiliated plaintiffs
Now pending is the Beastie Boys’ motion for an award, of fees and costs under § 505 of the Copyright Act and § 1117 of the Lanham Act. For the reasons that follow, the Court finds that the Beastie Boys are entitled to recover fees in connection with Monster’s willful copyright infringement, although not in connection with Monster’s violation of the Lanham Act. Considering -all relevant circumstances, the Court finds that an award of $667,849.14 in fees — substantially less than the award of $2,385,175.50 sought by the Beastie Boys — is warranted.
The Court also holds that the Beastie Boys are entitled to costs, but under Local Rule 54.1 leaves to the Clerk of Court the tabulation, in the first instance, of such costs.
This decision proceeds in four parts. First, the Court recaps the pertinent background of this case. ' Second, the Court addresses the Beastie Boys’ claims of entitlement to fees under the Copyright Act and the Lanham Act. Third, the Court explains the amount of its fee award. Fourth, the Court addresses the Beastie Boys’ application for costs.
I. Background
The Court assumes familiarity with this case’s history, including the Court’s December 4, 2014 Opinion denying Monster’s post-trial motions. See Dkt. 182, reported at Beastie Boys v. Monster Energy Co.,
A. Factual Background
On May 5, 2012, Monster hosted a promotional' event called the “Ruckus in the Rockies,” which consisted of a snowboarding competition and an after-party. See Trial Transcript (“Tr.”) 1092-93. The performers at the after-party included Zach Sciacca, a disc jockey (“DJ”) who records and performs under the name “Z-Trip.” Tr. 356, 954, 964-65, 1096-99. In 2011, Z-Trip had entered into an agreement with the Beastie Boys to create a remix of some of their songs to promote the group’s then-upcoming album, “Hot Sauce Committee Part II.” Tr. 194-96, 278-79, 356-57, 954-58, 969. The remix was entitled “Beastie Boys All-Access Megamix” (the “Mega,mix”). See Tr. 429-30. Under the agreement, Z-Trip did not obtain any rights to the underlying Beastie Boys songs. See Tr. 278-79, 306, 358-59, 973, 975-76.
Soon after the 2012 Ruckus in the Rockies, Monster’s regional marketing director, Nelson Phillips, oversaw the creation of a recap video with highlights from the event. Tr. 1114-16. The video promotes Monster’s brand and its energy drinks. For the video’s soundtrack, Phillips used excerpts of the Megamix that include portions of five Beastie Boys songs; these songs are the background music to approximately 80% of the four-minute video. Tr. 1114-15. The video also contains text referring to the band and one of its three members, Adam Yauch, a/k/a “MCA,” who had died days before the Ruckus event.
On May 9, 2012, Monster' posted the promotional video on its website, YouTube channel, and Faeebook page. See Tr. 307, 531, 1119-21, 1124-26, 1266. Monster also sent press releases to various snowboarding magazines and websites to promote the video. Tr. 1126-29: The following month, Monster received a letter from counsel for the Beastie Boys, which stated that Monster did not have permission to use the Beastie Boys’ music in the video. Tr. 1129, 1269. Phillips then removed the video from Monster’s YouTube channel. Tr. 1130. He later edited the video, to replace the music and remove the references to the Beastie Boys, and then reposted it. Tr. 1130-31, 1277.' As of August 2012, the video had been viewed 13,341 times. Tr. 1275-76.
B. Procedural History
On August 8, 2012, the Beastie Boys filed suit against Monster in this District. Dkt. 1. The Complaint brought. claims of copyright infringement in violation of the Copyright Act and false endorsement in violation of the Lanham Act.
On October 4, 2012, Monster filed an Answer. Dkt. 5. Monster denied almost every factual allegation in the Complaint or stated that it lacked knowledge sufficient to enable it tó form a belief as to its truth. Monster also raised 12 affirmative defenses. Several sought to deflect responsibility for any infringement onto Z-Trip. In this vein, the Answer asserted that (1) Monster had received permission from Z-Trip to use the Beastie Boys’ music; (2) in using the band’s music in its video, Monster had reasonably relied on Z-Trip’s apparent authority as an agent for the Beastie Boys; and (3) any injury to the Beastie Boys was due not to Monster but instead to a breach of contract or fraud by Z-Trip. Id at 13.
The following day, October 5, 2012, Monster brought- a third-party- Complaint against ZTrip. Dkt. 9. Monster alleged that Z-Trip had caused any damage to the Beastie Boys for which Monster might be .found liable by (1) contracting with Monster to allow it to make unrestricted use of the Megamix, and (2) fraudulently leading Monster to believe that Z-Trip had authority to license the Beastie Boys’ recordings contained in the Megamix. Id. ¶¶ 12-23, 28-33.
On August 1, 2013, after discovery, Z-Trip moved for summary judgment on Monster’s claims against him. Dkt. 36-38. The Beastie Boys filed a memorandum supporting Z-Trip’s motion. Dkt. 39.
On November 4, 2013, the Court granted summary judgment in favor of Z-Trip on both of Monster’s third-party claims. See Dkt. 51, reported at Beastie Boys v. Monster Energy Co.,
Trial on the Beastie Boys’ claims against Monster commenced on May 27, 2014. At the final pretrial conference on May 22, 2014, Monster, for the first time, conceded liability as to the copyright infringement claims. See Dkt. 141, at 48. Accordingly, the issues litigated at trial were liability for the Lanham. Act claim, and damages as to both the Copyright and Lanham Act claims. During the eight-day trial, the parties called a dozen witnesses, including four experts. See Dkt. 149-63.
On June 5, 2014, the jury returned its verdict. See Dkt. 147. On the Copyright Act claims, the jury found that .each of Monster’s 10 acts of infringement had been willful and awarded a total of $1.2 million in statutory damages and, alternatively, a total of $1 million in actual damages. Id. at 2. On the Lanham Act claim, the jury found Monster, liable, found that.it had engaged in intentional deception, and awarded the Beastie Boys $500,000 in damages. Id. at 4. The jury also found that Monster had acted in bad faith in causing the false endorsement. Id.
On December 4, 2014, the Court issued a lengthy decision, denying Monster’s post-trial challenges to the verdict. See Dkt. 182
C. The Beastie Boys’ Motion for Fees, and Costs
On January 16, 2015, the Beastie Boys moved for an award of attorneys’ fees and costs. Dkt. 188, 189 (“Anderson Deel.”), 190 (“Beastie Br.”). On March 6, 2015, Monster filed its opposition. Dkt. 205 (“Kahn Decl.”), 206 (“Schiano-Strain Deck”),' 207 (“Monster Br.”). On March 20, 2015, the Beastie Boys submitted a reply. Dkt. 210 (“Beastie Reply Br.”), 211 (“Garrity Decl.”). On March 30, 2015, the Court heard argument."
II.. The Legal Basis for Beastie Boys’ Asserted Entitlement to Fees
The Beastie Boys move for attorneys’ fees under'-both the Copyright Act, 17 U.S.C. § 505, and the Lanham Act, 15 U.S.C. § 1117(a). Because these Acts set different standards for fee awards,' the Court addresses the Beastie Boys’ claim of entitlement to fees under each fee-shifting provision in turn.
A. Attorneys’ Fees Under the Copyright Act
1. Applicable Legal Standards
The Copyright Act provides that “the court in its discretion may allow the recovery of full costs by or against any party other than the United States” and “may also award a reasonable attorney’s fee to the prevailing party as part of the costs.” 17 U.S.C. § 505. Fee awards, however, are not “automatic” or given “as
Rather, courts award attorneys’ fees only where doing so is “faithful to the purposes of the Copyright Act.” Matthew Bender & Co. v. W. Pub. Co.,
Under the Copyright Act, “ ‘[tjhere is no precise rule or formula’ that district courts must apply in determining whether to award attorney’s fees.” Zalewski v. Cicero Builder Dev., Inc.,
“In an appropriate case,” however, “the presence of other factors might justify an award of fees 'despite a finding that the non-prevailing party’s position was objectively reasonable.” Matthew Bender,
2. Discussion
Considering the Beastie Boys’ fee application in light of the principles governing fee awards under the Copyright Act, the Court’s judgment is that, on balance, an award of feеs is consistent with, and would further, the purposes of the Act. But the analysis is textured, not unitary: Although there are arguments favoring a fee award that ultimately carry the day, there are also countervailing considerations. These have contributed to the Court’s decision to impose a fee award below that sought by the Beastie Boys. See Section III, infra. The Court’s assessment of the most relevant factors follows.
Objective reasonableness: Monster’s conduct and legal positions during and after trial — and, with one significant exception discussed below, before trial— were objectively reasonable. As the Court explained in its post-trial opinion, the issues tried with respect to the Copyright Act claims were difficult and close.
One issue at trial, which affected whether the maximum available statutory damages for each act of infringement was $30,000 or $150,000, was whether Monster’s conduct had been willful. See 17 U.S.C. §§ 504(c)(1)-(2). As the Court concluded, “the issue of willfulness was vigorously disputed at trial and certainly could have been resolved for either side.”
Monster’s litigation as to actual copyright damages was also objectively reasonable. The calculation of actual damages turned on the jury’s subjective assessment of the infringing video. In litigating the cost of an assumed license authorizing Monster to use the Beastie Boys’ songs as the soundtrack for Monster’s’promotional video, counsel for each side vigorously advocated as to the most apt comparator for that unusual video. This inquiry was complicated by the fact that the Beastie Boys had never licensed their music for traditional product advertisements, Tr. 118-20, 275, 864-65, and that the Ruckus video was, by its nature, far from a standard product promotion. “[T]he quirky, indeed new-age, nature of the advertising medium in this case, and the Beastie Boys’ extensive licensing history ... provided fodder for a wide range of potential valuations.” Beastie Boys,
Finally, and relatedly, the Court is not persuaded that the settlement positions Monster took were unreasonable. Following trial, the Court received briefing as to the settlement process,, with each party contending that, the settlement history supported its position on the Beastie Boys’ fee application. To be sure, there is some factual dispute as to Monster’s final offer: The Beastie Boys’ counsel represented that the highest .offer had been $250,00.0, see Anderson Decl. ¶ 28, whereas Monster’s counsel attested that Monster’s final offer had been ,$650,000, see Kahn Deck ¶ 17. Regardless, viewed in real time and not in hindsight, either figure was .defensible. Under Monster's theory of the case, the Beastie Boys’ maximum possible recovery on the Copyright Act claims was $300,000: Without a finding of willfulness, the statutory damages would have been capped at $30,000 per infringement. See 17 U.S.C. §§ 504(c)(1)-(2). And actual damages would have been significantly lower than that had the jury accepted Monster’s view, and that of its expert, as to the most appropriate analogue for the Ruckus video.
However, one significant asрect of Monster’s approach to litigating the copyright claims "was objectively unreasonable: It refused, until the brink of trial, to concede that it had infringed the Beastie Boys’ copyrights, and it attempted to shift legal responsibility for any infringement to Z-Trip. Putting aside the question' of whether Monster had acted willfully in trenching on the Beastie Boys’ copyrights, Monster’s liability for infringing the 10 copyrights at issue was open and -shut. Monster had taken a host of the Beastie Boys’ copyrighted musical compositions and sound recordings and exploited them, at length, in an extended web advertisement for its products, without • any license to do so. There was no claim that Monster ever had the Beastie Boys’ permission to use these songs, and Monster’s anemic pretrial claim (echoing its employee, Phillips) to have received a legally valid license from Z-Trip to use the group’s compositions and songs in the promotional video was blatantly meritless. The infringement here thus was flagrant. Yet Monster, strikingly, did' not concede liability on the Copyright Act claims until the final pretrial conference, days before trial. See Dkt. 141; at 48; Anderson Deck, Ex. E; Garrity Decl. Exs. A-B.
This refusal positioned the parties, needlessly far apart on a foundational issue and, it can be assumed, made pretrial settlement less likely. Further, as a result of Monster’s adamancy that it was not liable for infringement, the Beastie Boys were obliged’ to prepare for trial on this point, so as to prove “ownership of a valid copyright and coрying of the protectable elements of the, copyrighted work.” Scholz Design, Inc. v. Sard Custom Homes, LLC,
Relatedly, Monster needlessly prolonged this litigation and increased the Beastie Boys’ attorneys’ fees through its pretrial attempt, via a third-party complaint, to shift blame to Z-Trip. After denying any responsibility for the copyright infringement in its Answer, Dkt. 5, Monster brought claims of breach of contract and fraud against Z-Trip, Dkt. 9. Both Z-Trip and the Beastie Boys, whose interests were affected by Monster’s claims against the DJ, spent time and money litigating these meritless claims'.
As the Court held in granting summary judgment for Z-Trip, Monster’s arguments were patently unreasonable: On Monster’s contract claim, no communications between Phillips and Z-Trip “could be plausibly read to involve an offer,” Z-Trip,
Because, as to this aspect of the litigation, Monster’s conduct was unreasonable and was “directly responsible” for certain fees “plaintiff[s] had to expend,” the factor of objective unreasonableness supports some fee-shifting. Harrell v. Van der Plas, No. 08 Civ. 8252(GEL),
Willfulness of underlying conduct: The jury found that Monster’s infringement was willful, and the Court upheld that finding as fairly grounded in the record evidence. See Beastie Boys,
As courts in this Circuit have repeatedly held, a defendant’s willful infringement supports an award of attorneys’ fees to a prevailing plaintiff. See, e.g., Kepner-Tregoe, Inc. v. Vroom,
Similarly, in adidas Sportschuhfabriken Adi Dassler Stiftung & Co., K.G. v. New Generation, the defendants had sold merchandise decorated with logos, insignias, and cartoon characters owned by the plaintiffs. No. 88 Civ. 5519(PKL),
Finally, in Basic Books, Inc. v. Kinko’s Graphics Corp., several publishing companies sued a copy shop for making unauthorized reproductions of boоk excerpts and selling them to students as “course packets.”
Compensation and deterrence: A final relevant pair of factors, both of which strongly support some fee award so as to vindicate the purposes of the Copyright Act, are compensation and deterrence. See Zalewski,
As to compensation, a fee award helps ensure that an injured copyright holder is, at the end of the day, compensated for his injury. Otherwise, there is some risk that the cost оf litigation will erode, if not eliminate altogether, the plaintiffs recovery. In this case, the Beastie Boys paid their counsel more in fees (approximately $2.4 million) than was awarded by the jury in total ($1.7 million) or on the Copyright Act claims alone ($1.2 million).
Further, as to the goal of deterrence, a fee award to plaintiffs herd may encourage copyright holders whose rights are infringed to vindicate meritorious claims. Contested copyright cases can be expensive .to litigate, as this case illustrates. Without the prospect of a fee award, plaintiffs facing mounting,legal fees “‘might be.forced into a nuisance settlement or deterred altogether from enforcing [their] rights.’” Crown Awards, Inc. v. Disc. Trophy & Co.,
For these reasons, the Court finds that awаrding attorneys’ fees to the Beastie Boys will, On balance, advance the purposes of the Copyright Act. In particular, a fee award is supported by the interests of compensation and deterrence; by the interest in. placing some of the burden of paying legal fees on the willful infringer; and, to the extent that Monster unjustifiably contested its liability and wrongly attempted to shift legal responsibility onto Z-Trip, by the interest in making a party bear the expenses generated by its unreasonable litigation tactics. However, the proper amount of such an award presents a complex question. Various factors — including the manner in which the Beastie Boys’ case was staffed, the fact that some portion of the Beastie Boys’ legal fees were occasioned by work on the Lanham Act claim, and the fact that the issues litigated at trial included difficult and close questions and that Monster’s trial defenses were not objectively unreasonable — counsel for an award of only a subset of the fees that the Beastie Boys incurred. The Court addresses these factors .and the proper amount of the fee award in Section III below.
B. Attorneys’ Fees Under the Lan-ham Act
1. Applicable Legal Standards
Under the Lanham Act, “[t]he court in exceptional cases may award reasonable attorney fees to the prevailing party.” 15 U.S.C. § 1117(a). “The decision whether or not to award such fees [ ] rests within the broad discretion of the district judge.” Microban Prods. Co. v. API Indus., Inc., No. 14 Civ. 41(KPF),
The Second Circuit has defined “exceptional cases” as ones involving fraud, bad faith, or willfulness. See Patsy’s Brand, Inc. v. I.O.B. Realty, Inc.,
In the context of the Patent Act, which, like the Lanham Act, provides that courts “may” award attorneys’ fees in “exceptional cases,” the Supreme Court recently provided guidance as to the meaning of the term “exceptional.” Octane Fitness, LLC v. ICON Health & Fitness, Inc., - U.S. -,
[A]n “exceptional” case is simply one that stands out from others with respect to the substantive strength of a party’s litigating position .... or the unreasonable-manner-in. which the case was litigated. District courts may determine whether a case is “exceptional” in the case-by-case exercise of their discretion, considering the totality of the circumstances. . - ,-
Id. The Court further instructed that courts resolving motions for fees in patent cases should consider the Fogerty factors used in Copyright Act cases, including frivolousness, motivation, objective unreasonableness, compensаtion,- and deterrence. Id. at 1756 & n. 6. Accordingly, courts should consider whether a given cáse “stands out from others” based on “those factors, or based on a finding of willfulness or bad faith.
2. Discussion
The jury here found that Monster’s conduct -was willful, intentionally deceptive, and in bad faith. See Dkt. 147, at 2-4. Those findings, however, do not “require[ ] an award of fees.” Mister Softee,
Courts in this District. typically award Lanham Act fees based on extreme misconduct during, litigation. “[Cjourts frequently look to,.whether the claims raised by either side were., interposed for an ‘improper purpose,’” Microban,
Courts have also granted Lanham Act fees to prevailing plaintiffs where the defendant defaulted. See, e.g., Lane Crawford LLC v. Kelex Trading (CA) Inc., No. 12 Civ. 9190(GBD)(AJP), 2014 WL
On occasion, courts have also awarded Lanham Act fees based on egregious underlying facts, for instance, where a defendant continued its infringing conduct “in the face of a preliminary injunction.” Playboy Enters., Inc. v. Chuckleberry Pub., Inc.,
None of those circumstances are present here. Unlike the Copyright Act claims, as to which Monster’s pretrial denial of liability was unreasonable, the Court does not perceive any unreasonableness to Monster’s arguments or litigation positions as .to the Lanham Act claim of false endorsement. Monster made responsible arguments opposing that claim, and the jury’s verdict for the Beastie Boys, in the Court’s view, was no foregone conclusion. This case is thus a far cry from one in which the losing party’s litigation positions as to a Lanham Act claim were so “devoid of legal merit that one could only conclude that they were advanced with an improper motive,” Microban,
This case thus resembles, more than the cases in which attorneys’-fees were awarded, two Lanham Act cases in which courts in this District declined to award fees. In Gidatex, S.r.L. v. Campaniello Imports, Ltd., the jury found bad faith, but the court nevertheless declined to award fees because the defendant’s litigation decisions were “justifiable,” and the plaintiffs had not prevailed on every issue.
III. Determination of the Reasonable Amount of the Fee Award
The Beastie Boys were represented throughout this case by Sheppard Mullin Richter & Hampton LLP (“Sheppard Mul-lin”) and paid Sheppard Mullin all of the fees the firm billed- them. The Beastie Boys seek an award of $2,385,175.50. This figure reflects two reductions, totaling $101,504.50, from the fees the Beastie Boys paid. First, the Beastie Boys do not seek to recover fees for attorheys and staff who spent less than 10 hours-on the ease; this eliminated 70.4 hours of work, corresponding to $20,977 in feés. Second, to avoid a fee award for duplicative efforts, the Beastie Boys do not seek to recover fees for work performed after July 2013 by Theodore Max, Esq., Sheppard Muffin’s initial lead partner .on the case, because from that point forward, Kevin Puvalow-ski, Esq., was lead partner. This eliminated. 119.3 hours of work, corresponding to $80,527.50 in fees. See Anderson Decl., Ex. U.
. A. Legal Standards Governing Reasonableness of Fees
In determining the amount of á fee award, district courts are to calculate
(1) the time and labor required; (2) the novelty and difficulty of the questions; (3) the level of skill required to perform the legal service properly; (4) the preclusion of employment by the attorney due to acceptance of the case; (5) the attorney’s customary hourly, rate;, (6) whether the fee is fixed or contingent; (7) the time limitations imposed by the client or the circumstances; (8) the amount involved in the case and the results obtained; (9) the experience, reputation, and ability of the attorneys; (10) the “undesirability” of the case; (11) the nature and length of the professional relationship with the client; and (12) awards in similar cases.
Arbor Hill,
Additionally, “[attorney’s fees must be reasonable in terms of the circumstances of the particular case.” John Wiley & Sons, Inc. v. Kirtsaeng,
B. The Proper Amount of the Fee Award
The Court’s analysis as .to the reasonable fee award on the Copyright Act claims proceeds in three steps.
First, .the Court considers challenges Monster raises to discrete aspects of the fees billed by Sheppard Mullin — to areas of-'legal work Monster claims were unnecessary to vindicate the Beastie Boys’ claims and to certain billing practices. Finding merit to some of these arguments, the Court reduces the fees eligible for shifting. Second, the Court considers the extent to which a further reduction is merited to reflect the fact that some of plain
Before examining potential reductions, however, it is important to keep in mind the big picture. This case was justifiably expensive to litigates It implicated complex questions of law, challenging questions of fact, and difficult and hotly contested damages determinations. Further, the high profile of the parties and the attention given to this lawsuit no doubt impelled counsel to leave no stone unturned. Indeed, this case was litigated aggressively by estimable lawyers on both sides. The Court’s analysis as to the proper fee award, and the reductions that follow, do not bespeak any criticism of counsel for either side, whose impressive lawyering the Court has previously recognized.
1. Monster’s Arguments as to Specific Projects and Billing Practices
a. Legal Work on Unnecessary Projects
Monster argues thаt several areas of legal work were unnecessary to vindicate the Beastie Boys’ claims. ,
First, Monster notes, the Beastie Boys “conducted extensive discovery” into two sets of videos that were never received in evidence. The first, the “Monster Army” videos, were posted by athletes whom Monster had sponsored to a website that Monster created for the purpose of promoting these athletes and Monster itself. Six such videos" allegedly incorporate, without authorization, Beastie Boys music.- The other video was created in connection with' a sporting event in Switzerland called “Wheels Fest,” which Monster sponsored and promoted. The video allegedly used a Beastie Boys song, “Sabotage,” as its soundtrack, without authorization. The Court, however, granted Monster’s motion in limine to exclude" evidence as to these subjects pursuant to Federal Rule of Evidence 403, on the grounds that Monster had not created the videos, and the confusion, delay, and unfair prejudice from litigating at trial the -circumstances under which these videos had been created would outweigh any limited'probative value. She Dkt. 90. Although-it was surely proper for the Beastie Boys to seek discovery into the Monster Army and Wheels Fest videos, the Court agrees with Monster that the legal fees the Beastie Boys incurred doing so are not properly shifted to it, given the tenuous relevance of, and the exclusion of, this evidence from trial.
Second, Monster argues that it should not be cоmpelled to pay the Beastie Boys’ fees incurred with respect- to two aspects of legal work relating to expert witnesses. First, Monster brought a Daubert challenge to the report of Beastie Boys’ damages expert Lisa Thomas, and although the Court held the bulk of Thomas’s expert report to be reliable, it granted Monster’s motion insofar as Thomas, in valuing an assumed license to use the Beastie Boys’' copyrights, wrongly assumed a lifetime, as opposed .to five-week-
Third, Monster .notes that the Beastie Boys abandoned two claims shortly before trial;, a copyright infringement claim based on the link to Z-Trip’s Mega-mix included in the Ruckus video, and a claim asserted under the New York Civil Rights Law. See Dkt. 90, at 6. In similar circumstances, courts in this District have declined to reimburse plaintiffs for fees related to voluntarily dismissed claims. See Scanlon v. Kessler,
b. Partner-Heavy Staffing
Monster next argues that’ the Court should exclude all of Kenneth Anderson’s hours. Anderson, a Sheppard Mullin partner, billed 902.8 hours on the case for a total of $609,390. Kahn Decl., Ex. 2 (compiling Anderson’s time entries). Monster claims that Anderson “is not a litigator” and that his work was “duplicative and unnecessary.” Monster Br. 17.
The Court rejects Monster’s attempt to excise as categorically unnecessary all of Anderson’s legal work on this matter. Anderson undeniably added value to the Beastie Boys’ efforts to vindicate their rights. Logically in light of his role as the firm’s relationship partner with the Beastie Boys — he has represented them for 30 years — Anderson led the firm’s representation of the group during the early part of this case. See Anderson Decl. ¶ 39. His work included issuing cease-and-desist and demand letters to Monster, working to obtain copyright assignments from entities that held fractional rights in the copyrights at issue so as to streamline litigation, and developing the case management plan. See id.; Kahn Decl., Ex. 2, at 1-2. And, although Sheppard Mullin litigating partners took the lead during discovery a¡nd handled the case at trial, the billing records reflect Anderson’s contributions. These include serving as the primary liaison to the Beastie Boys; preparing the two surviving members of the group for
However, although Monster’s focus on Anderson personally misses the mark, its critique points to a broader consideration highly relevant to the fee award: the extraordinarily partner-heavy nature of Sheppard Mullin’s work on this case. The firm billed' nearly 2.5 times as many partner hours as associate hours. Specifically, the firm tilled 2,621.2 partner hours and 1,069.4 associate hours. See Anderson Deck, Ex. Y. The partners were: Anderson, who, as noted, billed 902.8 hours totaling $609,390; Puvalowski, who billed 692.5 hours totaling $467,437.50; Paul W. Garrity, who billed 594.8 hours totaling $401,490; and Max, who (in addition to the 119.3 hours with respect to which the Beastie Boys are not seeking a fee award) billed 431.1 hours totaling $291,652.50. And the associates were: Thomas M. Mon-ahan, who billed 815.9 hours totaling $376,177; Valentina Shenderovich, who billed 156.8 hours totaling $73,240; Kathryn J. Hines, who billed 41.5 hours totaling $20,957.50; and Manuel Gomez, who billed 55.2 hours totaling $17,940. Anderson Deck, Ex. V. ,
In the Court’s experience, such lopsided‘ly pаrtner-heavy bills are quite unusual'in the context of litigation work. It is common, particularly with respect to discovery and other pretrial , tasks, that associates shoulder much of, the work, under the active supervision of partners, and that partners take lead roles as to projects for which their expertise adds value. The ratio of associate to partner hours on pretrial work typically reflects more associate than partner hours—often significantly more. See, e.g., Yurman Designs, Inc. v. PAJ, Inc.,
The Court has no doubt that many aspects of this case required active engagement by Sheppard Mullin partners. These included preparing for and defending depositions of the two surviving Beastie Boys; preparing for, taking, and defending expert, depositions;, and handling the trial itself. And Monster’s vigorous defense of the case at all stages demanded a muscular and sophisticated response. This case therefore no doubt justified more partner-intensive staffing than much federal-court litigation.
It may also be that Sheppard Mullin’s clients here — including the two surviving Beastie Boys and the estаte executrix (and wife) of deceased band member Yauch— affirmatively wanted the firm’s partners to personally perform virtually all aspects of their iegal work. Presiding over trial and hearing the surviving Beastie Boys’ testimony, it was apparent to the Court that this case had great personal significance'to them. Monster’s commercial exploitation of the band’s music and songs, and what
On a fee-shifting application, however, the governing test of reasonableness is objective; it is not dictated by a particular client’s subjective desires or tolerance for spending. The test is whether the plaintiff “spen[t] the minimum necessary to litigate the-case effectively.” Simmons,
Here, the Court’s review of Sheppard Mullin’s bills suggests that the Beastie Boys opted to pay for, and received, the Cadillac Escalade, not the Honda Civic. Apart from the high ratio of partner to associate hours, two aspects of these bills are notable. First, some tasks carried out by partners surely could have been delegated to associates. To cite just a few examples, Sheppard Mullin’s capable associates presumably could have (1) drafted a letter to the Court regarding the parties’ stipulation of confidentiality, see Anderson Decl., Ex. U, at 71-71; (2) coordinated deposition scheduling, id. at 91, 107; (3) reviewed depositions to identify designations for the joint pretrial order, id. at 87-89; and (4) researched authority from Monster’s pretrial memorandum-, id. at 96.
It was the Beastie Boys’ prerogative to commission or approve such staffing. But the issue for this Court is whether it is reasonable to shift the resulting fees, to Monster, their adversary. And there is ample authority in this District, applying the standard of objective reasonableness, for reducing a fee award where the legal hours recorded by plaintiffs’ counsel fell unusually heavily on partners with high hourly rates. See, e.g., New Earthshell Corp. v. Jobookit Holdings Ltd., No. 14 Civ. 3602(JMF),
c. Duplicative or Vague Billing Records
Monster next presents three distinct challenges to Sheppard Mullin’s billing records.
First, Monster claims that 89% of Sheppard Mullin’s- entries are block billed such that Monster cannot assess whéther the hours that Sheppard Mullin expended were duplicative or unnecessary. Id. To support this claim, Monster provided a compilation of all time entries they identify as improperly block billed. See Schiano-Strain Decl., Ex. 3. Most of Sheppard Mul-lin’s time entries do list multiple tasks in the “description of services” section, without isolating the particular hours assigned to each task.
As a general rule, block billing is disfavored. It impedes the client’s ability to understand the precise time allocable to the tasks for which it is being billed on an hourly basis. And, in the event of a later fee application, it impedes a court’s ability to assess whether the time expended on any given task was reasonable. See Green v. City of New York,
At the same time, block billing is most problematic where large amounts of time (e.g., five hours or more) are block billed; in such circumstances, the limited transparency afforded by block billing meaningfully clouds a reviewer’s ability to determine the projects on which significant legal hours were spent. See Abdell v. City of New York, No. 05 Civ. 8453(RJS),
Reviewed and revised Plaintiffs initial -disclosures.- Reviewed and revised First Set of Requests for Interrogatories to Monster. - Reviewed and revised Request, for Production of Documents to Monster. Drafted Request for Interrogatories to ZTrip. Drafted Request for Production of Documents .to Z-Trip. Reviewed and revised all. Drafted cover .letters... Compiled all documents and coordinated delivery.
Similarly,' on January 29, 2018, partner Max billed 4.6 hours for:
Prepare for mediation before Magistrate Judge Pitman; travel to U.S. District Court S.D.N.Y. for mediation; give .presentation and discussion ,at mediation; discuss status and evaluation with J. Silva -and K. Anderson; return to office; read email for R. Kahn; discuss with V. Shenderovich regarding discussing follow-up.
These entries, although block billed; clearly enumerate the -work .completed in the designated amounts of time. See Aurora Commercial Corp. v. Approved Funding Corp., No. 13 Civ. 230(RPP),
The Court’s judgment is therefore that, with limited exceptions, the “commingling of activities within one time entry” in this case does not “impede [] the [C]ourt’s efforts to evaluate the reasonableness of any of the listed activities”; the block billing thus does not provide a basis for reducing, more than marginally, the fee award. Berry v. Deutsche Bank Trust Co. Americas, 632 F.Supp.2d 300, 306 (S.D.N.Y.2009); see also U.S., ex rel. Fox Rx, Inc. v. Omnicare, Inc., No. 12 Civ. 275(DLC),
Second, Monster argues that 17% of Sheppard Mullin’s entries, which total 634 attorney hours, are .duplicative. To -support this claim, Monster provided a compilation of all such entries. See Schiano-
That said, as noted, there are some instances in which multiple partners worked on a‘ task where such staffing was not, at least evidently, objectively necessary. On November 30, 2012, for example, multiple partners worked on á letter to opposing counsel; and on June 4 and 5, 2013, four partners billéd for attending trial, even though the trial was in the hands of only two (Puvalowski and Garrity). There are also occasions in which more hours may have been applied to a task than was needed, consistent with the firm’s staffing approach in this case described above. On July 10, 2012, for example, Anderson billed six hours to “completen complaint,” but the next day billed another 4.8 hours to “finalize[ ] complaint.” Anderson Deck, Ex. U, at 13. All considered, the Court concludes -that some basis exists for reducing the fee award from that requested due to such staffing practices.
Third, Monster asserts that many billing entries are vague or ambiguous. As might be expected in a large case with many fee entries, the -billing records, in several instances, contain unhelpful descriptions, such as “worked on Monster."Anderson Decl., Ex, U, at 16. Such entries do not “enable the court to determine whether a reasonable amount of time was. spent on each activity” or “whether the particular activity is compensable.” Miroglio S.P.A. v. Conway Stores, Inc.,
d. Hourly Rates
The Court, finally, considers the reasonableness of the billing rates charged by plaintiffs’ counsel. The Beastie Boys seek to recover fees for the work of four Sheppard Mullin partners, four associates, and four members of the firm’s support. , staff. In, assessing whether the hourly rates they charged were reasonable, the Court looks to the hourly rates typically charged in. this District. See Arbor Hill,
Monster does not challenge the hourly rates charged by the four Sheppard Mullin partners who worked on the case, and the Court agrees that those rates were reasonable. Puvalowski, Garrity, and Anderson each charged an average of $675 per hour, and Max charged an average of $676.53 per hour. See Anderson Deck, Ex. V. Courts in this District routinely approve similar rates for experienced partners in copyright cases. See, e.g., Broad. Music, Inc. v. Pamdh Enters., Inc., No. 13 Civ. 2255(KMW),
As to associates, Monster argues that the hourly rates charged by three of the four were excessive. Sheppard Mullin charged an average of $461.06 per hour for Monahan, then a fourth-year associate; an average of $467.09 per hour for Shendero-vich, then a second-year associate; and an average of $505 рer hour for Kathryn Hines, then a third-year, associate. Anderson Decl., Ex. V. Manuel Gomez, then a first-year associate, billed at $825 per hour. Id. Monster does not object to that rate. See Monster Br. 18-21.
Rates between $461 and $505 per hour are higher than those typically approved for associates in this District. See, e.g., Genger v. Genger, No. 14 Civ. 5683(KBF),
Monster also contends that the hourly rates Sheppard Mullin charged for litigation support staff were excessive. Four individuals — Lisa Rodriguez, Stephanie Limbaugh, Giles Mitchell, and Brian Simpson — billed a total of 536.7 hours at rates, averaging $204.22 to $254.42 per hour. To justify these rates, Sheppard Mullin explained that Rodriguez, who billed an average of $254,42 per hour, has 25 years of experience. Garrity Decl. ¶ 7. Limbaugh, who billed at an average of $235 per hour, has .14 years of experience and managed the Beastie Boys’ courtroom technology in addition to fulfilling paralegal responsibilities. Id. ¶ 8. Mitchell, who billed at an average of $215.48 per hour, has more than eight years of experience and assisted with processing and producing electronic discovery. Id. ¶ 9. Finally, Simpson, who billed at an average of $204.22 per hour, spent a modest'number of hours filing documents and ensuring compliance with local rules. Id. ¶ 10.
These rates are indeed higher than those typically approved for paralegals and other litigation support staff. See, e.g., M. Lady, LLC v. AJI, Inc., No. 06 Civ. 0194(HBP),
e. Aggregate Fee Reduction Based on These Considerations
Considering all of the above factors, the Court’s judgment is that a 30% reduction of the fees paid by the Beastie Boys is merited, to ensure that the fee award reflects fees that were the “the minimum necessary to litigate the case effectively.” Simmons,
Fee reductions around 30% are, further, common in this District to reflect considerations of whether work performed was necessary, leanly staffed, or properly billed. See, e.g., Hines v. City of Albany,
The Court next turns to a separate issue: the proper reduction to reflect that this litigation — and Sheppard Muffin’s corresponding fees — encompassed work on the Lanham Act claim, for which the Court has held fee-shifting unwarranted. See Yurman Design, Inc.,
Anticipating that the Court might find fee-shifting merited only for the Copyright Act .claims, Monster proposed a 50% fee cut. Monster Br. 16 n. 6.
At the same time, certain legal work was particular to the Lanham Act claim. Portions of some briefs addressed issues relevant only to the Lanham Act claim, see, e.g., Dkt. 174 (brief in opposition to Monster’s post-trial motions), 197 (brief in support of the Beastie Boys’ motion for a permanent injunction); the parties’ examinations of witnesses in depositions and at trial about the Beastie Boys’ endorsement practices were directed at that claim; the extended expert testimony at trial as to the value of an implied endorsement — as opposed to the value of a license to use copyrighted works — was necessitated by that claim; and the parties summed up extensively at trial with close attention to the elements of the Lanham Act claim (the only claim as to which liability was contested), .the subsidiary issues of intentional deception and bad faith, and the quantum of damages for false endorsement. It is fair to assume, too, that a material part of the jury’s deliberations were. devoted to the Lanham Act claim.
The Court’s unscientific but carefully considerеd assessment is that a further reduction of 20% of the fees paid by the Beastie Boys is appropriate to strip out the legal work that, but for the Lanham Act claim, would not have been done.
3. The Fee Award Consistent With Advancing Statutory Purposes
The Court, finally, considers the extent to which a fee award here would further the goals of the Copyright Act.
For four reasons, the Court’s judgment is that an award to the Beastie Boys of 50% of the $1,335,698.28 in fees which the Court has found reasonable and necessary ’to incur on the copyright claims — ie., $667,849.14 — is appropriate.
Second, the statutory interest of compensation is met by the award the Court issues. On the 10 copyright infringement claims, the Beastie Boys recovered $1.2 million in statutory damages, trumping the alternative finding of $1 million in actual damages. And by the Court’s calculations, the Beastie ' Boys reásonably spent $1,335,698.28 litigating thése claims. Without a fee award, the Beastie Boys would be in the red by some $135,698.28, if one compares the copyright damages award to the group’s reasonable fee expenditures. An award of $667,849.14 ensures ample net compensation to the Beastie Boys for the infringement of their copyrights: By the Court’s measure, plaintiffs would come out ahead by some $532,150.86. The Copyright Act’s goal of compensating victims of infringement does not, in the Court’s .judgment, require a larger net recovery.
Third, the award the Court imposes is sufficient, but not greater than necessary, to deter future would-be infringers. On the copyright claims, Monster is already accountable for the $1.2 million damages award, plus its own legal fees, which assuredly ,are, substantial. A fee award of $667,849.14 adds significantly to the price tag of Monster’s infringements. It should lead future parties either contemplating infringement, or designing corporate protocols with respect to -the handling of intellectual property, to think twice before disrespecting others’ copyright interests.
Fourth and finally, the award chosen here' is in harmony with other fee awards in copyright cases, including in this" District. In a number of less" complex cases involving shorter triаls, awards have rangéd from about one-quarter to one-half of that imposed here. See, e.g., Crown Awards,
Accordingly, the Court approves a fee award to the Beastie Boys of $667,849.14.
IV. Costs
Under the Federal Rules of Civil Procedure, “costs other than attorney’s fees” generally “should be allowed to the prevailing party,” “unless а federal statute, these rules, or a court' order provides otherwise.” Fed.R.Civ.P. 54(d)(1). As noted, the Copyright Act provides that “the court in its discretion may allow the recovery of full costs by or against any party.” 17 U.S.C. § 505. For the reasons explained at pages 39-45, supra, the Court finds that the Beastie Boys are entitled to an award of costs under the Copyright Act. In addition, under the Lanham Act, “the plaintiff shall be entitled” to recover “the costs of the action” where a violation of § 1125(a) of that statute has been established. 15 U.S.C. § 1117(a). Here, the jury found that Monster’s video created an implied false endorsement in violation of § 1125(a), and the Court -upheld the jury’s verdict. See Beastie Boys,
Monster challenges the Beastie Boys’ costs on- á line-item basis. See Monster Br. 24-26. However, the Clerk of Court, not this Court, must resolve those disputes in the first instance. See Overseas Direct Imp. Co. v. Family Dollar Stores Inc., No. 10 Civ. 4919(JGK),
Within thirty (30) days after the entry of final judgment, or, in the . case of an appeal by any party, within thirty (30) days after the final disposition of the appeal, unless this period is extended by the Court for good cause shown, any party seeking to recover costs-shall file with the Clerk a-notice of taxation of costs by Electronic Case Filing.... A party objecting to any cost item shall serve objections by Electronic Case Fil-ing_ The Clerk will proceed to tax costs at the time scheduled and allow such items as are properly taxable.
Accordingly, the Beastie Bоys are directed to present a bill of costs to the Clerk within 30 days of the final disposition of Monster’s appeal or, if no appeal is taken, within 30 days of the entry of final judgment by this Court. After the Clerk awards costs, the parties will have seven days to appeal that award to this Court. Fed.R.Civ.P. 54(1)(d); see also Whitfield v. Scully,
CONCLUSION
For the foregoing reasons, the Court hereby awards the Beastie Boys attorneys’ fees in the amount of $667,849.14. The Clerk of Court is directed to terminate the motion pending at docket number 188, and to close this case.
SO ORDERED.
Notes
. The Beastie Boys are a New York partnership. The other plaintiffs are Michael Diamond (“Mike-D”), a Beastie Boys member;
. In calculating damages for purposes of settlement, Monster could have reasonably believed' that a Lanham Act violation, even if found, would not result in an award of money damages because only violations that involve actual consumer confusion or intentional deception permit such an award. See George Basch Co. v. Blue Coral, Inc.,
. The plaintiffs in this case will receive some, but not,all, of the damages awarded because the copyrights to the five musical compositions and sound recordings used in the video are co-owned by other entities. See Dkt. 202, reported at Beastie Boys v. Monster Energy Co., No. 12 Civ. 6065(PAE),
.' A table provided by the Beastie Boys shows that 22 billing entries, which total 70.7 hours of legal work, explicitly reference discovery efforts with respect to the Wheels Fest video. Garrity Decl., Ex. D. These entries also describe other work performed by counsel, such that not all of the 70.7 hours can be assumed to have related to Wheels Fest. At the same time, the Beastie Boys' legal work opposing Monster’s- motion in limine to exclude the Monster Army and Wheels Fest videos, Dkt. 66, is not reflected in this table. Nor is the time expended investigating the Monster Army videos, which are rarely mentioned by name in the billing records.
. Between March 6 and March 21,2014, for example, Sheppard Mullin attorneys billed approximately 80 hours for tasks related to revising Thomas’s report. See Anderson Decl., Ex. U, Dkt. 189-23, at 15-18.25
. For instance, Sheppard Mullin appears to have billed at least 20 hours for preparing the Daubert motion between February 6 and 14, 2014. See, e.g., Anderson Decl., Ex. U, Dkt. 189-22, at 88-95.
.As these claims do not appear to be explicitly referenced in the billing records, the Court cannot reliably estimate the fees incurred in their pursuit.
. The surviving Beastie Boys also testified that, as a matter of principle, they have not licensed their music for product advertisements, Tr. 118-21, 864-65, or for creative endeavors with which they do not identify, Tr. 866-68, a philosophy that led them, not long before trial, to’ decline a $500,000 fee to license a song for an Arnold Schwarzenegger movie because they are not "fan[s] of [his] recent actions or work,” Tr. 867. For this reason, too, the Beastie Boys may have approached this case with special zeal. Indeed, the surviving band members testified that had Monster sought permission to use the Beastie Boys’ music ánd names in the video, the group would have refused. Tr. 121, 876.
. The Beastie Boys did not suggest an alternative percentage cut; rather, they árgued that "even if Plaintiffs had not pursued their Lan-ham Act claims, the scope of fact discovery would have been identical, and expert discovery, the trial, and post-trial proceedings would have been substantially the same.” Beastie Reply Br. 7.
. Although the jury’s damages verdict is not a reliable proxy for the quantum of legal work, the Court notes that a 20% reduction is not far afield from the percentage (29%) of the overall $1.7 million damage award which the Lanham Act verdict ($500,000) represented. -
