VidAngel claims its executives thought its infringement was lawful

While a federal judge ruled in 2016 that VidAngel Inc.'s video service violated the law, counsel for the company said Tuesday the court hadn't found they violated it knowingly.

In opening arguments in the long-awaited damages trial for a lawsuit brought against VidAngel by a number of top studios -- including The Walt Disney Company, Warner Brothers Inc., Marvel, and New Line Cinema-- VidAngel's attorneys told a jury its administrators thought their service was above board and legal.

"What was in their hearts and minds was that what they were doing was 100% lawful and in fact encouraged by the Family Movie Act," said Eisner LLP attorney Michael Eisner, VidAngel's attorney.

Facing damages that could range from a couple hundred dollars to as much as $128 million, a finding of ignorance would be bliss for VidAngel. As explained by plaintiffs' counsel Kelly Klaus, an attorney at Munger, Tolles & Olson LLP, the damage range for a non-willful infringement is between $750 and $30,000 for each claim.

But if the jury finds VidAngel's infringement was willful, Klaus said, the penalty could be as high as $150,000 for each individual claim. Klaus said his clients were seeking maximum damages on all 819 alleged instances of infringement by VidAngel. Disney Enterprises Inc. et al. v. VidAngel Inc., 16-CV04109 (C.D. Cal., filed June 9, 2016).

U.S. District Judge Andre Birotte, overseeing the two-day trial, already ruled in 2016 the Family Movie Act had no bearing on the case, Klaus said. He also noted the court already found the service was infringing and issued an order enjoining VidAngel from continuing to operate it, limiting this week's trial to the issue of VidAngel's liability.

Klaus said the company was well aware of the fact that its infringement was willful, as his clients previously told them in their initial attempts to discontinue the service.

He said the software used to rip their films from their DVDs, which VidAngel would send digitally to consumers for as low as $1, had to be purchased in Belize because of its ban in America.

"If you've ever watched a movie, you know, from the very first thing you see," Klaus said, "that you cannot copy and redistribute a movie."

The trial continues Wednesday.