Data General Corp. v. Grumman Systems Support Corp.

825 F. Supp. 361, 1993 U.S. Dist. LEXIS 8431, 1993 WL 220991
District Court, D. Massachusetts·Decided June 21, 1993·No. Civ. A. 88-0033-S·Published·Cited by 13 cases

Opinion

MEMORANDUM AND ORDER ON PLAINTIFFS’ APPLICATION FOR ATTORNEYS’ FEES AND COSTS

SKINNER, Senior District Judge.

Data General seeks to recover the legal fees and costs it incurred prosecuting its copyright and trade secret claims against Grumman and opposing related defenses and counterclaims. The application, which totals $5,420,130, attempts to recover attorneys’ fees, expert witness fees, costs, and interest:

1) Attorneys’ Fees $3,405,272 — fees paid to Choate, Hall & Stewart, plaintiffs’ counsel of record, ($3,381,569) and to Arthur J. Levine, a copyright specialist, ($23,703). These totals include out-of-pocket expenses and other costs incurred by counsel and passed through to Data.General.
2) Expert Witness Fees $1,710,034 — fees paid to Deloitte & Touche, a national accounting firm, to analyze and compute the damages that resulted from Grumnjan’s wrongful conduct. This total includes $125,225 in unspecified expenses.
*364 3) Other Costs $673,925—Choate, Hall & Stewart incurred a variety of expenses that were billed in full to Data General. Some of the largest items include costs for the court reporter, copying, exhibit preparation, travel and airfare, Westlaw and Lexis, and document production. These amounts are already reflected in the attorneys’ fees.
4) Prejudgment Interest $304,824—since Data General paid its legal fees as they were incurred at various times since 1988, plaintiff seeks to recover interest for the loss of the use of its money on attorneys’ fees ($287,253) and on expert witness fees ($17,571).

DISCUSSION

I. The Copyright Claim

A. Attorneys’ Fees

Data General contends that it is entitled to an award of attorneys’ fees under 17 U.S.C. § 505, which provides:

In any civil action under this title, the court in its discretion may allow the recovery of full costs by or against any party other than the United States or an officer thereof. Except as otherwise provided by this title, the court may also award a reasonable attorney’s fee to the prevailing party as part of the costs.

17 U.S.C.A. § 505 (West 1977). “Although discretionary, the award of attorney’s fees is ‘the rule rather than the exception and should be awarded routinely.’ ” Steven Greenberg Photography v. Matt Garrett’s, Inc., 816 F.Supp. 46, 49 (D.Mass.1992) (quoting Micromanipulator Co., Inc. v. Bough, 779 F.2d 255, 259 (5th Cir.1985)).

Section 412 of the Copyright Act, however, establishes copyright registration as a prerequisite to recovering attorney’s fees:

In any action under this title ... no award of statutory damages or of attorney’s fees, as provided by sections 504 and 505, shall be made for (1) any infringement of copyright in an unpublished work commenced before the effective date of its registration ....

17 U.S.C.A. § 412 (West Supp.1993). Data General argues that it is entitled to its attorneys’ fees under the “general rule” of § 505, unless Grumman can prove the “exception” of § 412 bars an otherwise valid recovery of fees. Data General’s argument is unpersuasive. Section 412 is plainly titled “Registration as prerequisite to certain remedies for infringement.” 17 U.S.C.A. § 412 (emphasis added). Courts applying § 412 have barred recovery unless the plaintiff has demonstrated that registration predated the infringement. See Cable/Home Communication Corp. v. Network Prod., Inc., 902 F.2d 829, 850 (11th Cir.1990) (“As a procedural matter, the plaintiff copyright owner must have registered the copyright prior to the infringement in order to obtain statutory damages.”); Evans Newton Inc. v. Chicago Sys. Software, 793 F.2d 889, 896-97 (7th Cir.1986) (reversing an award of attorney’s fees because § 412 prohibits the award of “attorneys’ fees unless the plaintiff registers its copyright prior to the infringement”). Thus, Data General carries the burden of demonstrating that it complied with § 412’s prerequisite.

I previously ruled that MV/ADEX revisions 0.0 and 1.0 were infringed prior to registration, thereby barring an award of attorneys’ fees with respect to those works. Grumman argues that attorneys’ fees must be denied, as well, for revisions 2.0 through 7.0 because Data General did not prove that the registration date for each revision of MV/ADEX preceded the infringing activity. While I agree that Data General has not made such a showing in its application for attorneys’ fees, I am not persuaded that Data General cannot carry such a burden based on the evidence presented at trial. The form of its current application, however, is insufficient for me to render an informed ruling. Therefore, Data General shall resubmit its application for attorneys’ fees and must show that MV/ADEX revisions 2.0 through 7.0 were registered before they were infringed by Grumman. 1

*365 That one or more revisions of MV/ ADEX were not registered prior to infringement does not mean that Data General is necessarily barred from recovering 100% of its attorneys’ fees. Where compensable and non-compensable issues are closely intertwined and involve a common core of facts or related legal theories, much of, the plaintiffs efforts may be directed to the litigation as a whole, rather than to a series of discreet claims. See Wagenmann v. Adams, 829 F.2d 196, 225 (1st Cir.1987); Freeman v. Package Mach. Co., 865 F.2d 1331, 1350 (1st Cir.1988). Here, it would appear that a large portion of Data General’s efforts were applicable to all revisions of MV/ADEX. Data General may have incurred substantially the entire cost of prosecuting its copyright claim even if it sued on only a single compensable revision of MV/ ADEX. A final determination, however, depends on whether Data General can demonstrate that it is entitled to fees for any revision of MV/ADEX. In its amended application, Data General must identify, in a useful manner, the portion of its fees that relate to compensable and non-compensable revisions of MV/ADEX (i.e. those registered before and after infringement, respectively) and any portion of the total fees that is alleged to be common to all revisions.

Assuming that Data General demonstrates that it is entitled to recover attorneys’ fees on its copyright claim, the amount of those fees will be measured by the “lodestar” method. A court calculates a reasonable fee by multiplying the number of hours reasonably expended on a case by an attorney’s reasonable hourly rate. Pennsylvania v. Delaware Valley Citizens’ Council for Clean Air, 478 U.S. 546, 561-66, 106 S.Ct.

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Data General Corp. v. Grumman Systems Support Corp., 825 F. Supp. 361, 1993 U.S. Dist. LEXIS 8431, 1993 WL 220991 (D. Mass. 1993).

825 F. Supp. 361 (Data General Corp. v. Grumman Systems Support Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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