GC2 Incorporated v. International Game Technology PLC

District Court, N.D. Illinois·Decided July 29, 2019·No. 1:16-cv-08794·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

GC2 INC., ) ) Plaintiff, ) ) vs. ) Case No. 16 C 8794 ) INTERNATIONAL GAME TECHNOLOGY, ) IGT, DOUBLEDOWN INTERACTIVE LLC, ) and MASQUE PUBLISHING, INC., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER MATTHEW F. KENNELLY, District Judge: GC2 Inc. sued International Game Technology, IGT, Doubledown Interactive LLC, and Masque Publishing, Inc. alleging copyright infringement and violations of the Digital Millennium Copyright Act (DMCA). GC2's claims went to trial in January 2019. The jury found for the plaintiff. The parties filed a number of post-trial motions, including motions for judgment as a matter of law, for a new trial, and for attorney's fees. GC2 also sought litigation costs. The Court ruled on post-trial motions but reserved ruling on the bill of costs. See GC2 Inc. v. Int'l Game Tech., No. 16 C 8794, 2019 WL 3080922, at *1 (N.D. Ill. July 15, 2019). Background The Court assumes familiarity with the facts of the case, which were described at length in previous rulings. See, e.g., id. at *1-3. The only remaining issue before the Court relates to GC2's bill of costs. GC2 seeks a total of $184,769.56 in litigation- related costs. The requested costs are broken out into four categories, with each category further subdivided into more precise line items. First, GC2 seeks a total of $1,531.50 for fees of the clerk and marshal. Second, GC2 seeks a total of $145,896.90 for transcripts of the trial and depositions as well as other deposition-related expenses. Third, GC2

seeks an additional $32,102.86 for various costs related to printing and exemplification. Fourth, GC2 asks for $5,238 in costs related to electronic discovery. The defendants submitted a painstaking brief objecting to nearly every item of GC2's requested costs. They contend that the plaintiff is entitled to a total of only $83,881.61. GC2's claimed costs and the amounts to which the defendants contend it is actually entitled are as follows. Category GC2's claim Defendants' valuation Fees of clerk and marshal $1,531.50 $798 Transcripts and recordings $145,897.20 $78,774.23 Printing and exemplification $32,102.86 $4,104.38 Electronic discovery $5,238 $205 Total $184,769.56 $83,881.61 See generally Pl.'s Bill of Costs, dkt. nos. 427, 427-1. Discussion Courts may award specific litigation-related costs under 28 U.S.C. § 1920. See also 17 U.S.C. § 505 (providing for awarding costs in copyright cases); Rimini Street, Inc. v. Oracle USA, Inc., 139 S. Ct. 873, 875 (2019) (holding that the Copyright Act's cost recovery provision covers the same "six categories specified in the general costs statute"). The statute specifically enumerates certain costs that are taxable: (1) Fees of the clerk and marshal; (2) Fees for printed or electronically recorded transcripts necessarily obtained for use in the case; (3) Fees and disbursements for printing and witnesses; (4) Fees for exemplification and the costs of making copies of any materials where the copies are necessarily obtained for use in the case; (5) Docket fees under section 1923 of this title; (6) Compensation of court appointed experts, compensation of interpreters, and salaries, fees, expenses, and costs of special interpretation services under section 1828 of this title.

28 U.S.C. § 1902; see also Fed. R. Civ. P. 54(d)(1) ("[C]osts . . . should be allowed to the prevailing party."). The party seeking costs has the burden of establishing that, where appropriate, the costs it incurred were reasonably necessary to the litigation. See Nat'l Org. for Women, Inc. v. Scheidler, 750 F.3d 696, 698 (7th Cir. 2014); Alexander v. CIT Tech. Fin. Servs., Inc., 222 F. Supp. 2d 1087, 1089-90 (N.D. Ill. 2002). But, in this context, "necessary" does not mean "indispensable"; the party seeking costs must simply demonstrate that costs were incurred for more than attorney preference or convenience. See Scheidler, 750 F.3d at 698; Majeske v. City of Chicago, 218 F.3d 816, 825 (7th Cir. 2000). As noted, the defendants object to each of the four categories of costs claimed by GC2. The Court addresses each in turn. A. Fees of the clerk and marshal GC2 seeks a total of $1,531.50 for fees of the clerk and marshal. This includes a $400 filing fee for this suit; $250 of fees for five pro hac vice motions; and $881.50 in fees for serving summonses and subpoenas. The defendants contend that the pro hac vice fees are unrecoverable and that the fees for service must be reduced to reflect the rate that would have been charged by the United States Marshal, but they do not contest the $400 filing fee. The plaintiffs do not address the defendants' objections in their reply brief. The defendants are correct. GC2 is not entitled to recover costs associated with pro hac vice motions. See Oleksy v. Gen. Elec. Co., No. 06-cv-1245, 2016 WL 7217725, at *2 (N.D. Ill. Dec. 12, 2016) (collecting cases and noting that "weight of authority in this Circuit . . . indicates that courts normally decline to award pro hac vice

fees"). And, as for fees for serving summonses and subpoenas, GC2 may only recover the amount that the Marshal would have charged. See Collins v. Gorman, 96 F.3d 1057, 1060 (7th Cir. 1996); Manson v. City of Chicago, 825 F. Supp. 2d 952, 955-56 (N.D. Ill. 2011) ("[T]he prevailing party may recover costs for using a private process server as long as those costs do not exceed the fees charged by a marshal."). Likewise, additional fees associated with rush service are not appropriately compensable without explanation for why they were necessary. See Williams v. Fico, No. 11 C 1105, 2015 WL 3759753, at *4 (N.D. Ill. June 15, 2015). The Marshal's Service charges $65 per hour for each item served and $8 to forward process for service from one Marshal's office to another. See 28 C.F.R.

§§ 0.114(a)(1), (3). Applying these rates to the costs claimed by GC2, its charges for service are reduced to $398—$65 for each of the six subpoenas served and $8 for one forward. Subtotal. For fees of the clerk and marshal, GC2 is awarded its $400 filing fee and $398 of the requested service fees—a subtotal of $798. B. Transcripts and recordings GC2 seeks a total of $145,897.20 in costs related to transcription and recording. This request is broken down into (1) costs related to transcription of court proceedings ($15,086.90) and (2) transcription, videography, and other costs related to depositions ($130,810.30). 1. Transcripts of court proceedings The $15,086.90 consists of $14,008.80 for transcripts of the trial; $418.25 for transcripts of discovery-related hearings preceding trial; and $659.85 for transcripts of

the final pretrial conference and a hearing related to DMCA damages. The defendants object to the first two categories but not the third. Trial transcripts. The Court is persuaded that the costs stemming from the transcription of the trial must be reduced.

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