## Facts

- Ruth Orkin Engel, a well-known fine-art photographer, created a Central Park photograph published in her book *More Pictures from My Window*.
- Wild Oats (a garment manufacturer) copied the photograph without permission and used it as a design on T-shirts and sweatshirts.
- Wild Oats’ art director admitted he created the design from a photograph he found in a book.
- Defendants conceded copyright infringement; the only dispute was the proper measure of damages.
- Plaintiff (as executrix) offered evidence of the photographer’s reputation but did not prove actual damages or defendants’ net profits beyond defendants’ own reports.
- Wild Oats produced about 2,500 infringing shirts; its records showed net profits and sales commissions of $1,878.52 attributable to those shirts.
- Plaintiff elected statutory damages under 17 U.S.C. § 504(c) and sought enhanced statutory damages for willfulness, plus fees, costs, and injunctive relief.
- New World Sales sold Wild Oats garments under contract and participated in distribution of the infringing goods.

## Issues

1. Whether a copyright owner may elect statutory damages under 17 U.S.C. § 504(c) when actual damages and infringer profits are difficult to quantify.
2. Whether statutory damages may exceed proven infringer profits, or must be effectively limited by those profits.
3. Whether copying an image from a copyrighted book for commercial merchandise constitutes “willful” infringement under § 504(c).
4. How damages liability should be allocated between the manufacturer (Wild Oats) and the seller/distributor (New World Sales).

## Decision

- The court permitted plaintiff to elect statutory damages under § 504(c) in lieu of actual damages and profits.
- The court found Wild Oats’ infringement willful.
- The court awarded $20,000 in statutory damages, exceeding the infringer’s proven profits.
- The court held Wild Oats primarily liable and imposed liability on New World Sales consistent with its participation and share of profits from the infringing activity.

## Legal Principles

- A copyright owner may elect statutory damages under 17 U.S.C. § 504(c) where actual damages and infringer profits are not readily ascertainable.
- Statutory damages are discretionary and may exceed proven profits to account for unmeasured harms and deterrence.
- Willfulness may be found where a commercial actor directly copies from a copyrighted source without permission, supporting an enhanced statutory award.
- In multi-actor infringement involving manufacture and distribution, liability may be assigned based on each party’s role and financial participation, with the principal infringer bearing primary responsibility.

## Conclusion

The court, addressing damages after infringement was conceded, held that statutory damages were available despite limited proof of actual loss, found willful copying from a copyrighted book, and awarded $20,000 to reflect the work’s artistic character, the difficulty of measuring harm, and deterrence, while allocating responsibility primarily to the manufacturer and secondarily to the seller based on its involvement.


Engel v. Wild Oats, Inc., 644 F. Supp. 1089 (S.D.N.Y. 1986)