Contracts Keyed to Farnsworth
United States Naval Institute v. Charter Communications, Inc
Facts
Naval (P) entered into a licensing agreement with Berkley (D), granting D the exclusive license to publish a paperback edition of the book, The Hunt for Red October not sooner than October 1985. D shipped the book to retail outlets early and retail sales of the book began on September 15, 1985. P claims it was entitled to recovery for copyright infringement and sought judgment in the amount of D’s profit from pre-October 1985 sales, estimated at $724,000. D contended that it could not be liable for copyright infringement. The district court awarded P actual damages in the amount of $35,380.50, representing the profits P would have earned from the hardback edition of the book but for D’s early release of the competing paperback edition. The district court also awarded P $7,760.12 as profits wrongfully received by Berkley from displaced hardcover sales attributable to the infringement. P appealed, seeking a greater amount as profits. D cross-appealed to the judgment as a whole.
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