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Statutory Damages
Statutory damages are a type of monetary compensation awarded in legal cases where the amount of actual harm or loss is difficult to determine. Unlike actual damages, which require proof of the specific loss suffered, statutory damages are pre-established by law (statute) and set within a predetermined range. This allows courts to award damages without the plaintiff having to prove the exact amount of harm.
Key characteristics of statutory damages include:
- Predetermined amounts or ranges set by legislation, which courts use to decide the final award within those limits.
- No need to prove actual harm or loss; the plaintiff only needs to show that a legal violation occurred.
- They serve both compensatory and punitive purposes, helping to compensate victims and deter future violations.
- Courts have discretion to adjust the amount within the statutory range based on factors like willfulness or good faith.
A common example is in copyright law, where statutory damages can range from $750 to $30,000 per infringement, with higher amounts (up to $150,000) possible for willful infringement and reduced amounts for innocent infringement.
Statutory damages are frequently used in areas such as copyright infringement, trademark violations, consumer protection, and civil rights cases, especially when actual damages are hard to quantify or prove.
In summary, statutory damages provide a legal mechanism to ensure victims can receive compensation and that violators are held accountable, even when precise financial harm is difficult to establish.