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Let's say I signed a settlement agreement with a publisher…

Hi,Let's say I signed a...
Hi,Let's say I signed a settlement agreement with a publisher not to distribute any more counterfeit copies of its books. If I were to continue distributing copies of its books after the settlement agreement, would they be entitled to additional damages based on the breach of contract? What about punitive damages?
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12/1/2017
KLAW
KLAW, Attorney
Category: Business Law
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Experience: I have over 20 years of experience in commercial real estate law, finance, consumer credit, landlord tenant, and business law.
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Hello and welcome to Just Answer. No attorney-client relationship or privilege is formed by speaking to an expert on this site, the answers are for general information. By continuing, you confirm that you understand and agree to these terms.

If there is a breach for continued sale of the books then the settlement agreement is considered breached. It would be up to the other party to file an action to enforce. They would be entitled to whatever damages they can prove in the way of reliance, expectation, or restitution.

They may be entitled to what is called liquidated damages, which is usually agreed upon ahead of time and written into the contract. The contract will also state what kinds of actions will require a payment of liquidated damages.

Now if there is a breach, then they may also be entitled to damages going forward after the breach based upon the sales. However, the settlement agreement will usually detail what damages are allowed for a breach. If the agreement is silent as the ongoing damages then the continued sales would be calculated into their damages.

Punitive damages are not generally awarded in contracts cases.

I hope this helps.

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Customer reply replied 8 months ago
But if the breach of the contract occurred to a tort (since I kept selling counterfeit books, which is copyright infringement), would they still not be entitled to any punitive damages?

If the right to recover punitive damages is written in the Act or law then yes. However, The Copyright Act specifically prescribes the damages recoverable in copyright actions. "Except as otherwise provided by this title, an infringer of copyright is liable for either... the copyright owner's actual damages and any additional profits of the infringer... or ... statutory damages...." Several recent decisions However, some federal courts have allowed punitive damages claims to proceed, but the plaintiff must allege that as part of their damages and plead.

I hope this further clarifies.

KLAW
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Category: Business Law
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Customer reply replied 8 months ago
Thank you. I appreciate it.
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