Laws Of .com

Legg Mason Ordered to Pay $20 Million in E-Newsletter Copyright Action

On October 6, 2003 a federal jury in Baltimore awarded Lowry's Reports, a market analysis firm, $20 million in its copyright suit against financial-services giant Legg Mason. Lowry's produces a daily newsletter analysing financial markets and typically charges approximately $700 per year per subscription. It was alleged that for more than a decade Legg Mason, who subscribed to a single copy of the newsletter, on a daily basis copied and distributed the newsletter to their branch offices, where employees further copied and distributed it.

Although Legg Mason acknowledged that its employees copied and distributed Lowry's newsletter, it argued that such copying contravened express company policy. The Court did not accept this argument due to the strict liability nature of U.S. copyright law, which does not require knowledge or intent to prove infringement.

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http://www.washingtonpost.com/wp-dyn/articles/A53416-2003Oct6.html