Laws Of .com

Sony Obtains $6 Million in Statutory Damages for Mod Chip Sales

The United States District Court for the Northern District of California has awarded Sony Computer Entertainment America (SCEA) over $6 million in statutory damages for copyright infringement under the Digital Millennium Copyright Act (DMCA) 17 U.S.C. § 1203(c). The defendant, Steven Filipiak, sold devices (“mod chips”) for Playstation and Playstation 2 videogame consoles that enabled users to circumvent copy protection mechanisms in these consoles.

The defendant had agreed to an injunction prohibiting sales of “mod chips” and related software, and then proceeded to continue sales until a second consent judgment was entered into. The court concluded that a separate award of damages for each device sold was appropriate under 17 U.S.C. § 1203(c)(3)(a), and awarded $800 per device for 7,039 units sold prior to the date of the original agreement, and the maximum of $2,500 per device for 155 units sold after that date. The maximum amount was awarded on the basis that sales after the date of the original injunction agreement represented willful infringement.

For a copy of the decision, visit:

www.steptoe.com/publications/386b.pdf