Miami, FL – Following a lengthy bench trial, U.S. District Judge Cecilia Altonaga found that more than 600 claimed works don’t qualify for damages in a hard-fought copyright dispute between our client Sandals Resorts and plaintiff HH Advertising, Inc.
HH Advertising was seeking $600 million in damages, but Chief Judge Altonaga awarded only $49,500 pertaining to 33 photos and videos.
“We’re very pleased with the damages result—we argued that the plaintiff was not entitled to the hundreds of millions of dollars it had requested, and the Court agreed,” said Dayron Silverio, Partner at Podhurst Orseck.
Both companies operated for decades on handshake deals. After Sandals’ founder, Butch Stewart, passed away in January 2021 tensions arose amid efforts to create a written agreement.
“As a threshold matter, Defendants’ infringement was not willful. Willfulness under the Copyright Act requires proof of actual knowledge or reckless disregard of infringement,” said Judge Altonaga in her decision.
“We are beyond pleased with the nominal amount of damages that the court awarded, as well as with the court’s finding that Sandals did not act willfully. It’s a significant win for our client,” said Podhurst Partner Peter Prieto.
Judge Altonaga also noted that HH Advertising failed to show that Sandals had obtained \ revenue from the use of the allegedly infringing works.
“Plaintiff fails to carry its burden of submitting evidence of revenue related to infringement for any Defendant. As discussed, Plaintiff does not even provide generalized gross revenue for SRI Limited, let alone revenue associated with the infringement,” said Judge Altonaga.
Sandals was represented by Podhurst Orseck’s Peter Prieto, Dayron Silverio, and Matthew Weinshall. Our firm was co-counsel with Latham & Watkins LLP.
