Posts by Lloyd & Mousilli

A research paper co-authored by Managing Partner Feras Mousilli and Research Assistant Grayson Griffith has been published in the Economic Bulletin of the National Technical University of Ukraine “Kyiv Polytechnic Institute.”

Titled “Ukraine Startup Profiles: Rising and Raising,” the article explores the resilience and ingenuity of Ukraine’s emerging startup ecosystem—particularly the entrepreneurs and innovators driving progress in Kyiv and beyond. Drawing from firsthand research and cross-border experience advising technology startups, the publication highlights how Ukrainian founders are building globally competitive companies despite challenging circumstances.

You can read the full article by clicking here.

Houston, TX – Lloyd & Mousilli was recently featured in a Houston Chronicle article covering the ongoing “Trump Burger” trademark dispute. The article, titled “Latest legal fight in Trump Burger saga involves lawsuit over trademark infringement,” features commentary from Managing Partner Feras Mousilli and Senior Trademark Counsel Vicky Smolyar on the complexities of using the “Trump” name and related branding in commerce.

Lloyd & Mousilli is not involved in the Trump Burger litigation, but is honored that the Chronicle turned to our intellectual property team for informed commentary. Our attorneys regularly assist clients on high-stakes trademark, copyright, and trade dress matters.

About Lloyd & Mousilli
Lloyd & Mousilli is a boutique law firm headquartered in Houston, Texas, specializing in intellectual property, technology, and related commercial litigation. Our attorneys represent startups, mid-size enterprises, and global brands, advising on trademarks, copyrights, trade secrets, licensing, and enforcement strategies.

Houston, TX – September 23, 2025 – Lloyd & Mousilli has been prominently featured in Law360 for its role in an ongoing copyright infringement lawsuit filed in the Southern District of Texas. The case involves a dispute between a social media optimization company and a content creator over ownership and licensing rights to copyrighted digital content.

Social Athlete LLC is represented by Lloyd & Mousilli attorneys Beth Revere and Chris Reel, who filed a motion seeking the disqualification of opposing counsel based on prior confidential discussions with the plaintiff. The motion notes that confidential information had been shared “with the reasonable expectation that it was being provided in the context of a potential attorney-client relationship.”

Lloyd & Mousilli is proud to stand at the forefront of complex intellectual property disputes, safeguarding client rights in today’s fast-moving digital economy.

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Damascus, Syria – Lloyd & Mousilli, a boutique law firm recognized for its expertise in intellectual property and technology law, is proud to announce the opening of its new office in Damascus, Syria. This expansion marks an important milestone in the firm’s commitment to supporting entrepreneurs, startups, and established businesses across the Middle East.

With a long history of advising clients at the intersection of corporate, commercial, and intellectual property law, Lloyd & Mousilli is uniquely positioned to guide Syrian companies as they grow, innovate, and expand internationally. The Damascus office will serve as a hub for providing specialized legal services in:

• Startup & Corporate Formation – helping new ventures establish strong legal foundations.
  
• Intellectual Property Protection – safeguarding trademarks, patents, and copyrights both locally and abroad.
  
• Technology & Cross-Border Transactions – supporting businesses navigating global expansion.
  
• Regulatory Compliance – ensuring companies remain aligned with local and international regulations.
  

“Our Damascus office is more than just an expansion. It’s a commitment to empowering Syrian entrepreneurs with the legal tools they need to thrive in a global economy,” said Feras Mousilli, Managing Partner. “We believe this step not only strengthens our international practice but also supports the rebuilding and modernization of the Syrian business landscape.”

As part of this expansion, Dr. Hussein Al-Omari has joined the Lloyd & Mousilli team as a patent advisor. A distinguished expert in information technology and artificial intelligence, Dr. Al-Omari is an invaluable resource for startups seeking to protect their innovations.

To coincide with this launch, Lloyd & Mousilli has also released a whitepaper addressing the complex U.S. sanctions landscape and its impact on doing business in Syria, offering clarity and practical guidance for companies seeking to engage in compliant, sustainable growth.

The whitepaper is available for free PDF download at syria.lloydmousilli.com.

About Lloyd & Mousilli

Lloyd & Mousilli is a boutique law firm headquartered in the United States with a strong international presence. The firm specializes in intellectual property law, corporate and commercial law, and technology law, advising clients ranging from startups to established enterprises worldwide.

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Contact

Lloyd & Mousilli, Attorneys & Counselors at Law

[email protected]

Startups move fast. Founders focus on product, pitch decks, and growth, but not always the legal infrastructure that quietly protects their brand. Skipping early trademark protections can land even the most promising companies in court, facing costly disputes that threaten your momentum and your name.

Take it from Feras Mousilli, Managing Partner at Lloyd & Mousilli and a longtime advisor to startups and VC-backed tech companies:

“We’ve seen innovative founders unintentionally lose rights to their brand, or worse, spend six figures defending against infringement claims that could’ve been avoided with a $750 clearance search.”

What the Bumble Case Teaches Us

A high-profile example is Bumble, the Austin-based dating app unicorn. Bumble’s brand is now globally recognized, but only after navigating a series of legal challenges involving competitor disputes, brand confusion, and international enforcement issues.

‍Bumble invested early and aggressively in trademark strategy. When competitors tried to encroach on their look and feel, they had the IP rights to push back. If your startup doesn't take similar steps, you may not get the same outcome and worse, you may not get your day in court at all if you lack standing due to a missed registration window.

Three Ways Startups "Bumble" Their Trademarks

1. Skipping Clearance Searches: Just because a name is available as a domain or Instagram handle doesn’t mean it’s legally available. Without a proper clearance search, you risk infringing on someone else’s rights, even unknowingly.
2. Filing too Late (or Not at All): Startups often wait until they’re profitable or fundraising to file. But by then, you may have already created risk. Someone else can file first, or send a cease and desist that derails your raise.
3. Using a Name That Can't be Protected: Generic, descriptive, or confusingly similar names may not be eligible for registration at all, or may draw unwanted attention from companies with deeper pockets and more aggressive enforcement teams.

How to Protect Your Startup From the Start

Whether you're still choosing a brand name or you’ve already gone to market, a trademark attorney can help you:

• Conduct a legal clearance search
• Advise on name strength and registrability
• File with the USPTO and defend against office actions
• Enforce your rights or respond to infringement threats

At Lloyd & Mousilli, we represent some of the fastest-growing startups in tech, SaaS, and e-commerce. Led by Feras Mousilli, our team brings decades of experience in intellectual property strategy tailored to founders and creative entrepreneurs.

Don't Wait Until You're in Court

Your brand is your moat. Don’t let someone else build on your name while you’re busy building your business. Contact Lloyd & Mousilli for a flat-fee trademark consultation, and let’s make sure you don’t bumble it.

Interested in learning more? Schedule an intake call or email us at [email protected].

The term “VTuber” originated from early forays into a new form of content creation, “virtual YouTubing,” in the mid-2010s as media companies and individuals alike discovered the initial popularity of content based around a talent piloting a digital model of themselves in videos and livestreams. One of the first major hits in this space was Kizuna AI, which featured a Japanese actress who produced short skits on YouTube behind a 3D motion-tracked anime-style model for the company Activ8. 

While corporate-sponsored VTubers today frequently use motion capture suits like those employed for realistic videogame character animation, many VTubers pilot their models using just VR headsets and some additional trackers on their bodies. However, the most common method of VTubing uses a 2D model tracked via an iPhone’s IR cameras.

As the name suggests, VTuber content was initially primarily distributed via YouTube. However, after interest in VTubing skyrocketed during the COVID-19 lockdown, streaming services like Twitch and BiliBili (based in China) became hotspots for these talents as well. Advances in 2D and 3D motion tracking technology, compounded by artists and model riggers developing their skills in tandem, have led to a vast and growing content-creation subsector of virtual entertainers. These VTubers can amass tens of thousands, hundreds of thousands, and sometimes millions of followers with their highly detailed and realistically moving anime-style avatars.

While indie VTubers operating on their own can choose to livestream content of their choice either individually or in collaboration with others as they like, “corpo” VTubers affiliated with VTuber agencies are sometimes only allowed to collaborate with other VTubers from the same agency. “Corpo” VTubers may also be subject to restrictions on the kinds of games they can play or topics they can discuss. 

VTubers can monetize their content in a variety of ways, including through advertising, sponsorships, subscriptions, memberships, tipping, and virtual events. Some also sell merch featuring their avatars, which can include stickers, posters, clothes, plush toys, CDs, digital backgrounds, and more.

Vtuber Trademark Portfolios

‍Large Agencies

Larger agencies such as Hololive and Nijisanji sometimes represent hundreds of virtual content-creating talents. Such companies generally retain ownership of all aspects of the VTuber’s brand, as each persona and its associated branding are developed entirely in-house. However, agencies differ in their approach to what they register as a trademark and in which jurisdictions.

Hololive, for example, holds a massive trademark portfolio of 144 registered or pending trademarks in its home country of Japan and 153 registered or pending trademarks through the World Intellectual Property Organization (WIPO). Their WIPO marks cover 37 international jurisdictions, including 44 marks at the USPTO. These trademarks include the names of agency branches (e.g., Hololive English, Hololive Indonesia), logo variations, VTuber groups termed “generations” (e.g., Hololive Myth, Tempus), and even individual VTuber names (e.g., Gawr Gura, Mori Calliope). Hololive’s push on its international branding comes alongside massive success in international markets, notably showcased in a recent collaboration with Dodger Stadium.

In contrast, Nijisanji’s trademark portfolio is heavily Japan-centered despite a sizeable English-speaking talent roster for the North American market, comprising 43 marks in Japan and 9 filed internationally via WIPO, with only 1 filed at the USPTO for the English-speaking subgroup XSOLEIL.

Comparison of the two companies’ talents and US trademark portfolios:

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Medium-sized Agencies

Smaller, yet still exceptionally popular “corpo” agencies like VShojo often operate on an entirely different business model that recruits talents from an existing pool of indie VTubers, allowing them to keep rights to their branding while simultaneously providing the advertising, sponsorships, and support of a talent agency. VShojo’s trademark portfolio therefore only consists of 3 registered marks at the USPTO for its name, logo, and icon. While the agency and its attorneys assist in enforcement of the talents’ brands, the ownership breakdown leads to the talents following a similar trademark registration strategy to that of indie VTubers.

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Indie VTubers

Indie VTubers often have follower counts rivaling and, in some cases, exceeding that of “corpo” VTubers. However, some of the largest players in the indie Vtuber space, like Ironmouse, Shylily, Filian, and Shxtou (a.k.a. Shoto) do not appear to have any trademark registrations or applications for their names at the USPTO.

This lack of trademark activity may be due to concerns surrounding privacy and costs. Whether an indie VTuber has two million or two thousand followers, a perennial concern of content creation based around an anonymous avatar is anonymity. Most countries’ trademark databases have publicly searchable ownership records. While listing limited liability companies as application owners can provide some privacy, LLC ownership can still generally be traced back to identifying information through government filings. The cost of government filing fees and attorney fees may also be a significant factor to many VTubers. Just as with YouTube, it can take a while for a Vtuber to build up a solid following and income; the cost of hiring a lawyer to register your brand as a trademark may feel daunting.

However, there are ways to alleviate privacy and cost concerns. Stay tuned for more information on this in a future post.

A Uniform Domain Name Dispute Resolution Policy (UDRP) is a process used to resolve disputes over domain names, often involving claims of cybersquatting, where a domain name may infringe on trademarks. If you receive a UDRP complaint or a cybersquatting claim, it's essential to understand your rights and options. As the domain name holder, you have the opportunity to defend your registration by providing evidence and arguments that demonstrate your legitimate interest in the domain name and prove that it was not registered in bad faith.

Lloyd & Mousilli, a boutique law firm specializing in IP litigation, offers expert guidance to help you navigate this complex process. Our experienced IP team will support you through every step, from preparing a robust defense to presenting your case before the arbitration panel. With our deep understanding of UDRP proceedings and a commitment to protecting your online assets, we ensure your interests are vigorously defended.

How to Work with Us

1. Book a free intake call at lloydmousilli.com/calendar.
2. Provide details and context about your business.
3. Sign electronic engagement letters and make flat fee payments.

Lloyd & Mousilli IP Litigation Team

Lloyd & Mousilli's IP practice features seasoned legal counsel with hands-on experience in IP litigation. In addition to their impressive backgrounds at companies like Apple, Dell, and the USPTO, the team has successfully defended against UDRP complaints from major software enterprise companies. The Lloyd & Mousilli team stands out by focusing on securing strategic protection in a cost-effective manner.

About Lloyd & Mousilli

Lloyd & Mousilli is a boutique law firm specializing in intellectual property, technology law, and related litigation. Since its founding over a decade ago, headquartered in Houston, Texas, Lloyd & Mousilli has been dedicated to the strategic use of intellectual property, providing counsel to businesses ranging from startups to large enterprises.

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Houston, TX - August 23, 2024 – Many online copyright service providers may seem appealing at first glance, especially if you don't look deeper. A quick search for “file copyright application” will reveal sponsored ads for online services that promise a fast, easy, and budget-friendly DIY approach to copyright filings. However, these services may not be the best choice for startups or individuals focused on long-term growth. Strategic, attorney-led copyright applications can still be efficient and are often more beneficial in the long run.

As a boutique law firm specializing in trademarks, copyrights, and patents, Lloyd & Mousilli’s IP practice is designed with efficiency at its core.

How to Work with Us

1. Book a free intake call at lloydmousilli.com/calendar.
2. Provide details and context about your business.
3. Sign electronic engagement letters and make flat fee payments.

Lloyd & Mousilli Copyright Team

Lloyd & Mousilli's copyright practice features seasoned legal counsel with hands-on experience in startups and small businesses. In addition to their impressive backgrounds at companies like Apple, Dell, and the USPTO, it's also important to note that they are small business owners themselves. The Lloyd & Mousilli team stands out by focusing on securing strategic protection in a cost-effective way.

Copyright Services Provided

• U.S. and International Copyright Applications
• Responses to Copyright Office Correspondence
• Copyright Licensing
• Copyright Infringement Monitoring
• Copyright Demand Letters
• Copyright Litigation

From IP strategy discussions before your brand launches to enforcing your copyright registration in court, Lloyd & Mousilli specializes in supporting startups through the entire IP lifecycle.

About Lloyd & Mousilli

Lloyd & Mousilli is a boutique law firm specializing in intellectual property, technology law, and related litigation. Since its founding over a decade ago in Houston, Texas, Lloyd & Mousilli has championed the strategic use of intellectual property, counseling businesses from new startups to large enterprises.

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The Future is Uncertain

Equity, or ownership, is a company’s most expensive and most valuable asset. When splitting ownership, it is important to keep in mind that no one knows what the future may hold. You might expect that if you and your partner have equal ownership, that your work, time, or financial contributions will be equal. The reality, however, could be very different. You may end up bearing more of the workload than your co-founder and still have the same equity split. As the startup grows, each of your commitments and life priorities may change and your share of the equity split or your partners’ may no longer be representative of each of your contributions to the company. 

Founders also have different ideas about the types of contributions they will be making, and this vision changes over time as the company grows. Some may envision taking an active role in daily operations and management, while others want to handle marketing, and some may prefer a more passive style of investment. It is important that the split in ownership be reflective of these styles. It takes time to understand these differences and how to work with them, and most startup founders do not have that degree of familiarity with each other, thus making a 50/50 ownership split a risk. Startup founders that negotiate longer are more likely to decide on an unequal split, as they have been able to discover and address important differences in their expected contribution levels.

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Higher Chance of Splitting Faster

Another risk with a hasty 50/50 ownership split is that it can lead to your startup falling apart fast. Compared to founders who took the time to establish a well thought and calculated equity split, those who neglected to have this discussion and chose to split equally shut down their companies significantly faster due to a fallout amongst the founders. This also applies to startup founders who are related to each other- they are more likely to spend less time negotiating equity, and in turn are also more likely to share equally and end up splitting faster. The consequences and tension of an ill established ownership split can be devastating for a startup. 

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More Difficulty Bringing in Investors

A major consequence of implementing an equal ownership split is that it makes bringing in investors a lot more difficult- equal splits are sometimes seen as a sign of bigger issues within the startup. Investors tend to pay attention to the way co-founders divide ownership because it tells a lot about their experience level and engagement within the company. They may find an equal split to be impractical, and see it as an inability to negotiate seriously within and outside the company. Teams who quickly establish an equal ownership structure may face significant difficulty in raising their first round of financing, either in reduced ability to raise or in lower average valuations.

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Stalemates on Key Issues

An equal ownership split between startup founders means that both partners have equal control and voting power. This inevitably leads to deadlocks and an inability to move forward on key issues, which at best could end up stalling the business. These stalemates can easily be avoided by having one founder maintain majority control, even through an almost-even split. This ensures one founder has majority voting power when it comes to important business decisions. Startup founders need to be able to compromise and negotiate for the good of the company.

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Conclusion

Making these decisions can be overwhelming. Lloyd & Mousilli can help you implement the right ownership split for your startup. Our firm has the experience necessary to set your company up for success.

Is this photo really free?

School children, college students, and professionals alike have all turned to the internet to find “just the right image” for a project or presentation at one time or another. With tens of thousands of options to choose from, it can be tempting to simply screenshot the one that stands out the most and be on our way…however as one of our recent clients discovered – that can have pretty stressful consequences.

Legitimate Claims

A recent client of Lloyd & Mousilli’s contacted our firm after receiving what at first, she thought was scam correspondence from a copyright enforcement company. The correspondence related to her use of a “stock” image as part of a senior project from her university days…it appeared the owner of the photography she captured from an internet search had hired an enforcement agency to make demand and collect for the unlicensed use of his work. After receiving multiple communications from them, she sought out our counsel for peace of mind that “this was really nothing to worry about.”

Unfortunately for her, after a review, we determined that these were valid infringement claims on behalf of the original photographer. The images had been taken from an internet search and were clearly marked as registered copyrights. Just because an image can be found, does not mean it should be reproduced, even for non-commercial use, such as a school project.

What is a stock photo?

Stock photos, while generally available on the internet, are still pay to use creative works. The fees are typically determined based on type and duration of the intended use. For example, you might wish to run an artist’s photo as the heading on a particular issue of your newsletter and that would come with a fixed cost. If you then decided you also wanted to use the image on your website, it would require another negotiation and payment. All use is considered different and must be contemplated for and agreed to avoid infringement allegations.

What is a royalty free photo?

Royalty free photos typically come from a specific database where a one-time price is paid, and the image is then yours to use however you would like for as long as you would like. When using a royalty free image, there is no residual cost if you decide to increase or vary the way you are utilizing the photo in your projects or presentations.

Exclusivity

The upside to using stock photography lies in the restrictions on their use. If you are planning a marketing campaign and wish to use a specific image – you can negotiate different rates to exclusive use of that image within your geographic area or industry. Before purchasing, you can often ask the agency who else is using the image and for what duration and purpose. This can help avoid duplicative branding, which can hurt the campaign due to confusion even if it’s lawful.

Understanding Photograph Ownership

Before clicking, screenshotting, editing, copying or in any way using a photograph on the internet it is a worthwhile endeavor to figure out who it belongs to. The internet and social media have made circulation and virality of creative work easier than ever before – but with that comes risk. Creators want to maintain control of the work and often may not seek enforcement until much later when potential infringement comes to their attention. This means that just because you may have escaped detection for now, doesn’t mean their may not be artists out their with legitimate claims against you, such as our recent client described above.

Intellectual Property as a Strategy

No matter which side of a copyright controversy you may find yourself, Lloyd & Mousilli prides itself in finding the best resolution possible. It is much easier to proactively make sound decisions such as verifying the owners of creative work before putting it into use or procuring the proper licenses to images.

Already accused of infringement?

If you have already received a cease and desist and demand for damages related to improper use of images– do not delay in reaching out to an intellectual property attorney. The potential damages continue to increase in connection with the length of improper use. In the event you have been wrongfully accused, you will need representation to defend the claims as well. As stated above, these are often legitimate claims and they will not go away on their own.

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Texas has seen an influx of tech giants moving in from outside states, especially over the past year. With affordable real estate and business-friendly tax laws, the Lone Star State, already home to major corporations such as Dell, has become an attractive and lucrative place for HP, Oracle, and Tesla – and new technology startups – to now call home.

Houston, frequently named a top metropolitan area in the country for cultural diversity (by its own Rice University), is itself rich with opportunity for technology companies. Naturally, every business attracts customers with a product or service that provides a distinct benefit or feature – often legally protected from competition by patenting a design or unique mechanism.

Creating and registering a patent is a skill in and of itself. Without the proper knowledge, it can be costly. The U.S. Patent and Trademark Office receives over 650,000 patent applications every year, only 300,000+ of which are granted registration. To stand out from the more than 50% that are rejected, the most effective way is to have business-oriented legal counsel at your service.

Lloyd & Mousilli’s patent lawyers in Houston are the attorneys of choice for early-stage startups and technology companies. They have served as mentors and advisors to startups from Rice Ventures, one of Rice University’s incubators.

Lloyd & Mousilli’s legal services, drawing from their wealth of international Fortune 500 business law experience, help clients to efficiently develop a patent strategy that not only results in successful registration but also gives them a competitive IP portfolio that places their products ahead in the marketplace.

The firm’s Managing Partner, Feras Mousilli, has previously served as in-house counsel at Apple & Dell. His expertise is in product development and intellectual property matters – with a commitment to putting the business’s success first, a guiding principle of the firm’s work.

Assisting startups in every stage of the process, from conception to enforcement (and also preparing for litigation), Lloyd & Mousilli patent lawyers emphasize looking at all of the following aspects:

What is a provisional patent application filing?

A provisional patent application establishes an early filing date with the USPTO for your invention. While a provisional patent application alone is not a registered patent, it allows you to start marketing your invention as “Patent Pending” right away. (In the United States, commercially-sold products are legally required to denote their associated registered patents.)

After a provisional application, a regular (non-provisional) patent application must be filed within 12 months – a period which cannot be extended.

What is a design patent?

A design patent protects the unique shape, look and form of a product. If this ornamental design is distinct enough, it is eligible for design patent protection. Design patents are often used in consumer electronic products.

Currently, design patents are granted for 15 years from the date of issuance, and are not subject to maintenance fees.

What is a utility patent?

A utility patent protects the functionality of a product. Eligible inventions solve a common consumer problem in a unique, novel way, and in a manner that is practically useful.

Utility patents tend to provide a broader scope of protection. Unique mechanisms and functions are the fields of technology IP where protection is in the most demand.

Currently, utility patents are granted for 20 years from the date of issuance, and are subject to periodic maintenance fees.

“Intellectual Property is a complex, and frankly intimidating area of law. It is our privilege to assist our clients in navigating legitimate claims from fraud, and creating a strategy to move forward with,” says Managing Partner Feras Mousilli. Dr. Mousilli is a recipient of the Fulbright Scholar award, and is a visiting professor of law in Europe teaching intellectual property and technology law.

Whether you’re just considering patent registration, or you are looking to optimize your existing patent portfolio, it is a must to get the right legal partner for your team before you make any mistakes. Lloyd & Mousilli is known for securing favorable terms for its clients in an efficient manner, and at rates that are sensible for startups and small-medium businesses – “without Big Law fees.”

Contact Lloyd & Mousilli

For entrepreneurs who want to grow their business using patents, Lloyd & Mousilli Houston patent lawyers offer free consultations. Clients can book an appointment online at lloydmousilli.com, or by calling (512) 609-0059.

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New Options for Holding Copyright Infringers Accountable

Creatives of all kinds whether they are photographers, authors, designers, or even software developers have most likely all felt the sting of seeing their content copied without permission. The years of work and capital investment that goes into developing creative works often carries both a professional and personal investment for creators which makes the notion of having that investment wrongly copied incredibly stressful. Historically, the path to holding copyright infringers accountable in the United States has been out of reach for most creators, especially those just starting out. Luckily, the US has recently made changes to bring about a more accessible means of copyright enforcement.

The Copyright Alternative in Small-Claims Enforcement (CASE) Act

As part of the Consolidated Appropriations Act 2021 signed into law on December 27, 2020 – a much needed reform was implemented in the United States Copyright system. The Copyright Alternative in Small-Claims Enforcement (CASE) Act establishes a copyright small claims system that allows copyright creators to take action against infringers that arises out of Section 106 of the Copyright Act on a smaller scale than filing lawsuits in federal court.

Traditionally, all copyright enforcement actions have needed to be in the form of lawsuits in federal court. Federal litigation is a lengthy and expensive process – which for many smaller scale creators is simply out of reach. The vast majority of copyright infringement cases in the United States are of relatively low monetary value – which sadly means that many copyright creators have been left without a realistic enforcement remedy.

Copyright infringement remains a federal cause of action and copyright owners will still be able to pursue cases in the federal court system, but the tribunal established by the CASE act is intended for those that cannot take on that expense. For instance, it may be an avenue when seeking relatively small licensing fees regarding creative work for photographers, graphic designers, and the like.

The New Copyright Claims Board

Creators will now be able to bring their infringement claims before a Copyright Claims Board within the US Copyright Office – a three-member panel of experts in copyright law. The Copyright Claims Board has similar authority to a traditional small claims court in that they may oversee a discovery process, conduct hearings, and award monetary and non-monetary relief as appropriate. This panel would be able to award creators up to $15,000 per work and $30,000 per claim, assuming the creators had registered their work with the office. In the event their work had not been registered, the recovery limits are cut in half at $7,500 and $15,000 respectively. With a copyright registration being a relatively inexpensive and quick process – it is a no brainer that creators should be seeking official registration of all their work. You can learn more about the Copyright Registration process here.

For Legal Professsionals

For legal professionals, it is important to note that while the Copyright Claims Board will be based in the Washington DC, the CASE act dictates that the governing law for each dispute shall be the federal jurisdiction under which the claim would usually have been brought. Secondly, board decisions will not be precedential. The board is also not allowed to consider whether the infringement was willful as a federal court usually would. Additionally, while attorneys’ fees are recoverable under the Copyright Act, the Board may not award attorneys’ fees except in the case of bad faith conduct—in which case, any fee award may not exceed $5,000, absent extraordinary circumstances, such as where a party has engaged in a pattern of bad faith conduct. For these reasons, each copyright claim will still need to be evaluated individually to determine whether the new small claims process or a traditional federal action is best suited for a creators situation.

Beyond the monetary penalties, the board will also be able to send the infringing party a notice to cease the infringing activity.

Potential Risks of the New Small Claims Process

It is important to recognize that parties can opt-out of this new small claims process—once a claim is filed, the accused has 60 days to reject the small claims process, which would force the action to be heard in federal court instead. Decisions of the Claims Board may also be appealed on a limited basis to federal court.

The CASE act also touches on the reality that copyright trolls will likely attempt to take advantage of the new lower cost bar by filing frivolous claims. In an effort to limit this, if a party is found to have brought a claim to the Copyright Claims Board in bad faith more than once in a 12-month period, they will be barred from bringing another claim before the board for an additional 12 months.

While the new small claims process is intended to be an easier bar to entry there is still legal strategy involved to determine whether it is the best route for you, navigating the claim process, and understanding the risk that it may ultimately end up in federal court based on removal by the other party.

Next Steps

Intellectual property rights are only as valuable as owner’s efforts to enforce them. While copyright protection is established upon creation – the remedies to infringement increase significantly, including those mentioned here if a creator’s copyright is registered. If you have reason to believe that your creative work is being copied by an unauthorized party – you can schedule a consultation here to begin the process of having your claim evaluated to see if this new process is a suitable option in our situation.

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