University:
University College London
Course:
LAWS0002 | Property Law I
Academic year:

2022
Views:

50

Pages:

1
Author:

do3ran7ut

United States Naval Institute v. Charter Communications, Inc. United States Court of Appeals, Second Circuit, 1991 Facts: The United States Naval Institute entered into a license agreement with Berkley Publishing granting Berkley the exclusive license to publish a paperback edition of The Hunt for Red October. Berkley was granted an exclusive license to publish the edition no sooner than October 1985. Berkley shipped out the books early, resulting in sales in September 1985. Naval brought suit for breach. History: The claim was dismissed after trial. The U.S. Court of Appeals for the Second Circuit reversed, stating Naval was entitled to damages. The case was remanded and Naval sought damages for copyright infringement. The trial court awarded damages to Naval. Both parties appealed. Issue: Whether Naval can recover damages from Berkley's profits even though Naval transferred their copyright interests for the publication at issue. Holding: No. Naval is entitled to actual damages for the breach of contract and not entitled to Berkley's profits. Rule: In a breach of contract action, a plaintiff is generally entitled to recover damages for actual losses caused by the breach. Reasoning: Berkley held an exclusive license to Naval's copyright at the time books were sold. When Naval transferred the books copyright interest to Berkeley, Naval rendered their the ability to recover damages for infringement. Naval is entitled to the damages for Berkeley's breach of publishing the paper edition prior to October 1985. Would have over compensated and put in better place than before.