Problem
Commercial Liability Case
Intentional Torts: Copyright and/or patent infringement
Facts:
The non-profit organization, Law School Admission Counsel, Inc., granted Testing Corp, a series of limited royalty-bearing licenses, permitting Testing to reproduce certain LSAT materials. This arrangement was in place for over 15 years. According to the agreement, the license between the two parties included provisions regarding accounting, periodic payments, and required copyright notice provisions and guidelines. In the last two years of this arrangement, Law School Admission Counsel also granted Testing Corp a licenses to reproduce LSAT materials covered by the LSAT registration process and subject to the conditions in the original agreement. Law School alleges that Testing failed to provide accounting and periodic payments in violation of the licensing agreement. Law School sued Testing for copyright infringement and breach of contract. The lawsuit alleges that in addition to the failure to make payments required under the contract, Testing Corp. infringed on Law School's copyright of all the materials covered by the LSAT registration.
Testing denied all of the allegations.
Damages:
Testing Corporations failed to make periodic payments required by the license agreement for a period of two years. The amount of the license fees were at least $900,000. Law School alleges the contract had been breached and was essentially not in place; since the agreement was no longer in place, Testing Corporations infringed on Law School's copyright as it continued to offer their materials to the general public.
1) What is the basis for legal liability?
2) What elements exist in this case?
3) What factors and/or defenses can Testing Corporation use for claims made by Law School Admission Counsel - both for liability and damages?
4) What decisions would you make regarding this case:
a) Liability
b) Damages
5) What additional information would you like to have had?