Electronic Database Copyright Class Action Settlement Earns Final OK

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On Tuesday, a New York federal judge granted final approval to a class action settlement that will resolve writers’ allegations that their work had been reprinted in electronic databases without their permission.

U.S. District Court Judge George Daniels gave final approval to the electronic database republishing settlement after finding its terms were “fair, reasonable and adequate.” He had awarded preliminary approval to the class action settlement in January.

The electronic database copyright lawsuit was initially filed in 2000 by freelance writers who alleged their works had been published on electronic databases without their authorization or consent. Several class action lawsuits were eventually consolidated into the multidistrict litigation titled In re: Electronic Databases Copyright Litigation. The plaintiffs took issue with the republication of their works in online databases such as Westlaw (owned by Thomson Reuters Corp.) and LexisNexis (owned by Reed Elsevier PLC).

In 2001, the U.S. Supreme Court ruled that publishers who reproduce freelancers’ works electronically without first getting the copyright owner’s authorization are in violation of the Copyright Act. Although a class action settlement was initially reached in 2005, it was overturned by the 2nd U.S. Circuit Court of Appeal in New York in 2011 after the judges found the deal unfair to writers who did not register copyrights for their works. A revised class action settlement was submitted in November, and removed the $18 million compensation cap for what writers could receive for their archived work.

The plaintiffs’ attorneys say that the class action settlement will pay approximately $12 million to Class Members. Class Members’ literary works are divided into three categories under the terms of the electronic database copyright settlement: Category A, B and C. Authors of Category A works will receive between $875 and $1,500 per work that was registered with the U.S. Copyright Office. Authors of Category B works will receive the greater of $150 or 12.5 percent of the original sale price of the subject work. Authors of Category C works, which are not registered with the Copyright Office, will receive between $5 and $70 per work.

Under the terms of the class action settlement, the Class Members agree to settle past infringement claims and grant the publishers the right to publish their works on electronic databases. Class Members who do not grant future rights to the publishers will reportedly only be eligible to receive 65 percent of the individual settlement.

More information can be found here or at www.CopyrightClassAction.com.

The plaintiffs are represented by Michael J. Boni of Boni & Zack LLC, Diane Rice of Hosie Rice LLP, A.J. De Bartolomeo of Girard Gibbs LLP and Charles Chalmers of Allegiance Litigation.

The Electronic Database Copyright Class Action Lawsuit is In re: Literary Works In Electronic Databases Copyright Litigation, Case No. 1:00-md-01379, in the U.S. District Court for the Southern District of New York.