The amount of fees that a Copyright Law Firm — like Revision Legal — will take from a copyright settlement depends on the fee arrangement agreed to between the client and the lawyers. Further, if litigation is filed, the U.S. Copyright Act allows for the prevailing party in the case to be awarded their “reasonable attorneys’ fee” at the end of the case. So, the client and the copyright lawyers must factor into their fee arrangement how to handle an award of attorneys’ fees if granted. See below. Whether to award attorneys’ fees is considered a matter for the copyright court’s discretion. So, the court may decline to award attorneys’ fees.
Two “Pure” Types of Fee Arrangements and Blended Arrangements
Generally speaking, there are two types of attorneys’ fee arrangements — contingency fee and hourly billing. These might be called “pure” arrangements. If the arrangement is a contingency fee arrangement, then, typically, the general fee will be about one-third (33%) of the recovery, and if there is no recovery, the attorney receives no fee. Usually, a contingency fee arrangement does NOT include any services related to an appeal (if the copyright case goes to trial). Sometimes, legal services for an appeal will be included, but then the contingency fee is increased to, say, 40%. If the agreed arrangement is hourly billing, then your copyright attorney will take nothing from the copyright settlement, but will have been paid monthly based on the hourly billing. Copyright law firms generally charge anywhere from $300 an hour to $800 an hour depending on experience, the complexity of the case, and location.
The above are the two “pure” types of fee arrangements. However, there are many, many types of blended fee arrangements. Indeed, blended fee arrangements are only limited by the imaginations of the client and the Copyright Law Firm. As one example, the copyright attorney could agree to an hourly billing arrangement up to, say, $20,000 and then a contingency fee arrangement for the remainder of the case. In a blended fee arrangement, the contingency fee amount is generally reduced to, for example, 25%. As another example of a blended fee arrangement, the copyright lawyers might agree to an hourly billing rate but agree that expenses — such as court costs, deposition transcripts, photocopies, court fees, and other litigation expenses — will be paid from the settlement. Under that sort of arrangement, what the copyright lawyer takes from the settlement is not a percentage of the total but only the actual expenses paid by the lawyer.
How to Handle the Potential for an Award of Attorneys’ Fees From the Court
Since attorneys’ fees can be awarded in a copyright infringement case, the client and the copyright attorney must agree up front on how such an award would be handled. Typically with a contingency fee arrangement, any award of attorneys’ fees is added to the other damages awarded for a Total Award. From that total, the attorney would be entitled to the agreed-upon contingency percentage (even if that amount exceeds the award made by the court for attorneys’ fees). This is favored by attorneys since the court will often “cut” the amount of fees requested by the attorney. Typically with an hourly billing arrangement, the client would be entitled to recover the amount of attorneys’ fees awarded (even if that amount is less than the hourly fees paid by the client). As noted, courts often “cut” the amount of fees requested.
However, these “typical” arrangements are not “set in stone,” and the parties are free to agree to alternative arrangements.
Contact the Copyright Attorneys at Revision Legal
For more information, contact the experienced Copyright Lawyers at Revision Legal. You can contact us through the form on this page or call (855) 473-8474.
What Makes a Copyright Case Settle — and When
The vast majority of federal copyright infringement cases settle before trial. The main drivers of settlement value in a copyright case are: the strength of the liability evidence, the magnitude of provable damages, whether the copyright is registered and therefore whether statutory damages and attorneys’ fees are available, the defendant’s financial resources, and the cost and likelihood of success at trial.
The Registration Requirement and Its Impact on Settlement Value
One of the most consequential facts in any copyright case is whether the infringed work was registered with the U.S. Copyright Office before the infringement began — or within three months of first publication. Under 17 U.S.C. section 412, a copyright owner who fails to register before infringement commences is limited to actual damages and lost profits. They cannot recover statutory damages or attorneys’ fees. A plaintiff with a timely registration can threaten statutory damages of up to $150,000 per willfully infringed work and attorneys’ fees — transforming the economic calculus for the defendant entirely.
Structuring Fee Arrangements for Maximum Alignment
Contingency Fee Arrangements
A contingency fee arrangement — typically 33% of the recovery, sometimes 40% if an appeal is included — means the attorney bears the financial risk of the litigation alongside you. This structure is appropriate when liability is relatively clear, damages are substantial, and the defendant has assets to satisfy a judgment. The arrangement creates a strong incentive for the attorney to maximize the recovery. Contingency fee attorneys are selective: they typically take cases only where the expected damages justify the risk of investing time and resources with no guarantee of payment.
Hourly Billing
Hourly billing is appropriate when the case involves complex legal issues, where liability is disputed, or where the plaintiff’s primary goal is injunctive relief rather than damages. It gives you more control over the litigation strategy. The tradeoff is financial risk: you pay regardless of outcome. For copyright cases involving high-value commercial works — software, music catalogs, film libraries — hourly billing arrangements are common and appropriate.
Attorneys’ Fees Awards Under the Copyright Act
The Copyright Act’s attorneys’ fees provision at 17 U.S.C. section 505 allows courts to award reasonable attorneys’ fees to the prevailing party. The Supreme Court in Kirtsaeng v. John Wiley and Sons, Inc., 579 U.S. 197 (2016), held that courts should give substantial weight to the objective reasonableness of the losing party’s legal position when deciding whether to award fees. A party who pursued frivolous claims or defenses is more likely to face a fee award.
For the prevailing plaintiff with a timely registration, an attorneys’ fees award can be transformative. If the copyright attorney’s hourly fees total $75,000 and the court awards fees, those fees are in addition to the damages recovered. For the prevailing defendant, an attorneys’ fees award can compensate for the cost of defending a meritless claim.
Copyright Mediation and Alternative Dispute Resolution
Not all copyright disputes require federal litigation. The Copyright Office operates a small claims tribunal called the Copyright Claims Board (CCB), established by the CASE Act of 2020, which provides a streamlined process for copyright claims with damages up to $30,000. The CCB is less expensive than federal court. Respondents can opt out of CCB proceedings, forcing the case to federal court if they choose. The CCB is appropriate for smaller disputes where the cost of federal litigation would exceed the recoverable damages.
The copyright attorneys at Revision Legal handle copyright registration, infringement disputes, licensing negotiations, and settlement matters for clients across industries. Call (855) 473-8474 or contact us online.