Bulgarian Supreme Court of Cassation with an Interpretative Decision on the Amount of Compensation for Copyright Infringement

The Bulgarian Supreme Court of Cassation (SCC) has finally brought clarity to the issue of damages for author’s rights infringement with a new Interpretative Decision. Тhe issues of determining the amount of damages suffered; the recovery of out-of-court costs and the need to prove non-pecuniary damages are addressed.

Amount of damages for copyright infringement

Damages for copyright infringement should reflect the fair market value of the rights at the place of infringement, not the author’s place of residence. This is the conclusion of the SCC with regard to the question posed as to which is the relevant market for pricing in determining the amount of damages suffered where the country of infringement is one and the country of residence of the author is different. The decision relates to cases involving foreign photographers whose rights have been infringed in Bulgaria but who claim damages in relation to the market in their country. Thus, for example, the amount of compensation payable to a German photographer whose rights are infringed in Bulgaria should be measured against the market in Bulgaria and not that in Germany.

Are out-of-court costs recoverable?

Out-of-court costs for a lawyer may be included in the amount of the damages for copyright infringement. Thus, if a person hires a lawyer in order to reach a settlement, these costs can be recovered.

Do I have to prove non-pecuniary damages?

The author can claim damages based on the profit derived from the unauthorised use of the work, and also damages for loss of profit. Non-pecuniary damages in the case of copyright infringement are also recoverable, if they are proved in the appropriate manner. Where an infringement has been established, the non-pecuniary damages do not arise as a matter of presumption but should be proved. According to the court, damages that are a logical and natural consequence of copyright infringement may be presumed to have been proved.
The full text of the Interpretative Decision No. 3/2022 of 01.08.2024 in Interpretative Case No. 3/2022. of the General Assembly of the Civil and Commercial Chambers of the Supreme Court of Cassation can be found on the website of the SCC.

By Dimitrov, Petrov & Co., Bulgaria, a Transatlantic Law International Affiliated Firm.

For further information or for any assistance please contact bulgaria@transatlanticlaw.com

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