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Justices Rule Copyright Suit Losers Can Be Liable for Fees : Law: The decision involving rock musician John Fogerty could have the greatest impact in the computer industry.

TIMES STAFF WRITER

The Supreme Court on Tuesday made it potentially more costly to file a copyright infringement suit, ruling that losers can be forced to pay the legal fees of the winning side.

The 9-0 decision came in an unusual case in which rock music legend John Fogerty was sued for allegedly copying his own earlier work after selling the rights to a record company. A jury in San Francisco ultimately rejected that claim, and now the high court has said the losing party can be forced to pay Fogerty more than $1 million in legal fees.

Though the case arose in the entertainment field, its impact may be greatest in the computer industry, where companies such as Apple Computer, Hewlett-Packard and Microsoft have been engaged in high-stakes disputes over copyrights for software products.

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Legal experts said Tuesday’s decision will prompt plaintiffs to think more carefully before filing copyright infringement suits.

Typically in U.S. courts, each side is responsible for its own legal costs, although Congress can impose different arrangements.

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The Copyright Act of 1976 is one of the exceptions. It says that a judge “may award reasonable fees to the prevailing party.”

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In practice, however, the federal courts in California and New York generally exempt losing plaintiffs from paying the costs of the other side. That approach was justified as a way to ensure broad protection for copyright holders, such as composers and writers.

Shielded from the possibility of paying double fees, they would be freer to file suits to protect their copyrights. But the high court threw out that “dual standard” Tuesday and ruled that both sides are to be treated equally in copyright disputes.

The case before the court was unusual because a composer was accused of essentially copying his own work.

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In 1970, Fogerty was the lead singer of Creedence Clearwater Revival when he wrote “Run Through the Jungle.” He later sold the rights to the song to Fantasy Inc., a record company. In 1985, Fogerty recorded a comeback album for Warner Bros. that included the song “The Old Man Down the Road.”

Fantasy filed a lawsuit in San Francisco, alleging that the new song was essentially the old music with new words. After a two-week trial, a jury ruled for Fogerty, but the judge refused to force Fantasy to pay Fogerty’s $1-million legal bill.

Those decisions are in error, the Supreme Court said, and it sent the case back to a judge to consider awarding the singer the “reasonable attorney’s fee” set forth in the law.

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