Can You Discharge Damages Due To Copyright Infringement In Bankruptcy?
Can you discharge damages due to copyright infringement in bankruptcy?
A debtor who owes damages stemming from copyright infringement may be able to discharge those damages in bankruptcy. While the concept of "willful" acts causing a creditor's damages is not new, the question of whether a copyright violation constitutes a willful act has not been widely discussed by courts.
In September, 2012, the U.S. Court of Appeals for the Ninth Circuit issued an opinion addressing this issue in the case of Garcia v. Google Inc., and found that violations of U.S. copyright law are not acts that qualify as willful under 11 USC 523(a)(2)(A). The Ninth Circuit's decision is significant because a number of other circuits have reached alternative conclusions on this issue, and because it comes at a time when the rights of content owners to enforce their rights under U.S. copyright law are being hotly debated in Congress, at the Federal Communications Commission (FCC) and elsewhere.
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