MIAMI — As RBR+TVBR first reported in April 2017, a copyright fight involving the songs of such salseros as Celia Cruz was brought to a halt by a Federal court in New York, bringing dances of victory to Spanish Broadcasting System and its legal counsel.
Now, SBS’s top brass is likely popping bottles for the latest twist in this legal matter: A New York Federal District Court Judge has ruled the media company is entitled to hundreds of thousands of dollars in attorneys’ fees and costs.
The matter centers on a 2017 copyright suit filed by Latin American Music Company (LAMCO) and La Asociación de Compositores y Editores de Música Latinoamericana (ACEMLA). The plaintiffs claimed to collectively own or control rights to over 40,000 musical compositions, including several from such salsa legends as Hector Lavoe and the Fania All-Stars.
At the trial, the court ruled that the plaintiffs “miserably failed” to offer any credible evidence of SBS’s alleged infringement. U.S. District Judge Richard J. Sullivan was particularly critical of LAMCO and ACEMLA, and at the time issued separate show cause orders to both LAMCO/ACEMLA and their counsel as to “why they should not be sanctioned.”
Following its victory, SBS petitioned the court for attorney’s fees.
Sullivan granted the request, and as such LAMCO and ACEMLA have been ordered to reimburse SBS for some $845,040.95 in attorney’s fees and costs.
Among the reasons Sullivan cited in his decision: “litigation misconduct” on the part of the plaintiffs, who misled the court and SBS into believing recordings of the alleged copyright infringement were destroyed by malware and then, on the eve of the trial and after discovery, claimed they’d actually been preserved.
The breakdown of the reimbursements will see payments of $482,292.61 and $41,317.26 go to Stroock & Stroock & Lavan LLP. A second firm, Hughes Hubbard & Reed, was paid by BMI and will get reimbursements of $446,165.60 and $63,227.20. The smaller payments reflect costs tied to a court appeal.
Key to the SBS win is attorney James Sammataro, who was at Stroock & Stroock & Lavan and is today co-head of Pryor Cashman’s media and entertainment practice.
In his view, the case is significant for the broader precedent it sets related to “copyright trolls” in the media and entertainment industry, who often bring meritless infringement claims. As attorneys’ fees in copyright infringement disputes are awarded only in “exceptional” cases, an award of this size to a defendant in a copyright infringement action is rare.
In fact, James says the size of the attorneys’ fees award for this type of matter is unprecedented. That’s because Sullivan determined that not only should the plaintiffs be required to pay a significant portion of the fees, but that the award of fees would serve to deter future plaintiffs from bringing meritless infringement claims.
