A US judge has refused to allow heirs of Lord of the Rings author JRR Tolkien to seek punitive damages against the studio responsible for the hit films.
Tolkien’s heirs and publisher HarperCollins are claiming that New Line Cinema has failed to pay royalties from the estimated $6 billion they say the movie has grossed worldwide. They are suing for more than $150 million in compensation.
The normal principle when awarding damages is that the plaintiff should be compensated to the extent of loss suffered as a result of infringements, not more. The idea is to compensate, not to penalise. However, where the behaviour of the infringer is particularly bad, the courts can award extra damages as a penalty. These are punitive damages.
In Australia, courts award these damages for copyright infringements that are flagrant and where there is a need to deter similar infringements of copyright.
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