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« on: January 09, 2013, 10:11:55 AM »
You would have to have a pretty steady and significant sales stream to show that your sales history is "market value." Three or four sales of the images over a year or more is not enough to establish that this is what the image is worth, when you consider that it would be easy to show that similar images are being bought every day for far less. In one of the key cases in this area, Davis v. The Gap the court (NY Federal Appeals Court, The Second Circuit) established that fair market value of a lost license fee is the appropriate test in assessing "actual damages":
"We recognize that awarding the copyright owner the lost license fee can risk abuse. Once the defendant has infringed, the owner may claim unreasonable amounts as the license fee -- to wit Davis's demand for an award of $2.5 million. The law therefore exacts that the amount of damages may not be based on "undue speculation. The question is not what the owner would have charged, but rather what is the fair market value.
Davis v. The Gap,246 F.3d 152 (2d Cir. 2001). Another interesting section on this case talks about how de minimis (minimal or trivial) infringement is not infringement at all:
"The de minimis doctrine is rarely discussed in copyright opinions because suits are rarely brought over trivial instances of copying. Nonetheless, it is an important aspect of the law of copyright. Trivial copying is a significant part of modern life. Most honest citizens in the modern world frequently engage, without hesitation, in trivial copying that, but for the de minimis doctrine, would technically constitute a violation of law. We do not hesitate to make a photocopy of a letter from a friend to show to another friend, or of a favorite cartoon to post on the refrigerator. Parents in Central Park photograph their children perched on Jose de Creeft's Alice in Wonderland sculpture. We record television programs aired while we are out, so as to watch them at a more convenient hour.8 Waiters at a restaurant sing "Happy Birthday" at a patron's table. When we do such things, it is not that we are breaking the law but unlikely to be sued given the high cost of litigation. Because of the de minimis doctrine, in trivial instances of copying, we are in fact not breaking the law. If a copyright owner were to sue the makers of trivial copies, judgment would be for the defendants. The case would be dismissed because trivial copying is not an infringement."
I have often cited Davis to Getty and others as precedent establishing (1) that while a court will look to a company's licensing fee, in the end it is the fair market value of the item that will count and (2) minimal infringement is not infringement at all.