Facts

In October 2018, Plaintiff Gold Value International Textile, Inc., dba Fiesta Fabric filed a lawsuit against Defendants Gypsy05, Inc. and Eminent, Inc. dba Revolve, alleging copyright infringement and vicarious and/or contributory copyright infringement of 3 fabric designs, which designs plaintiff claimed to have registered for copyrights.

PLAINTIFF'S CONTENTIONS: Plaintiff alleged that defendants had access to such designs, and that defendants manufactured and/or sold identical or substantially similar designs that infringed on plaintiff's designs. Plaintiff sought an injunction, disgorgement of profits or if elected, statutory damages, up to $150,000 per work for willful infringement, attorney's fees and costs, a constructive trust over defendants' profits, an accounting, and pre-judgment interest. Plaintiff's counsel contended that Gypsy 05 and Eminent had posted Instagram images of Gold Value's designs several times in 2018.

DEFENDANTS' CONTENTIONS: Defendants asserted that plaintiff had already sued these two defendants for one of the three designs in 2015, and that case had been settled and dismissed with prejudice in 2016.

Defendants asserted that plaintiff's registrations for the two remaining designs were invalid and unenforceable, as plaintiff had knowingly applied for copyrights for such designs as unpublished, despite the fact that such designs were in fact published since plaintiff had offered such designs for sale before plaintiff applied for copyright protection.

Result

Plaintiff agreed to dismiss the claim for the design that had been litigated and settled in 2016. As to the remaining two claims, the case settled for $25,000 through mediation with mediator Michael Diliberto.