Rimini Street, Inc., et al. v. Oracle USA Inc., et al.

by Supreme Court of the United States

Note: Where it is feasible, a syllabus (headnote) will be released, as is being done in connection with this case, at the time the opinion is issued. The syllabus constitutes no part of the opinion of the Court but has been prepared by the Reporter of Decisions for the convenience of the reader. See United States v. Detroit Timber & Lumber Co., 200 U. S. 321, 337.

SUPREME COURT OF THE UNITED STATES

Syllabus

RIMINI STREET, INC., ET AL. v. ORACLE USA, INC., ET AL.
CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE NINTH CIRCUIT
No. 17–1625. Argued January 14, 2019–Decided March 4, 2019

A jury awarded Oracle damages after finding that Rimini Street had infringed various Oracle copyrights. After judgment, the District Court also awarded Oracle fees and costs, including $12.8 million for litigation expenses such as expert witnesses, e-discovery, and jury consulting. In affirming the $12.8 million award, the Ninth Circuit acknowledged that it covered expenses not included within the six categories of costs that the general federal statute authorizing district courts to award costs, 28 U. S. C. §§1821 and 1920, provides may be awarded against a losing party. The court nonetheless held that the award was appropriate because the Copyright Act gives federal district courts discretion to award “full costs” to a party in copyright litigation, 17 U. S. C. §505.

Held: The term “full costs” in §505 of the Copyright Act means the costs specified in the general costs statute codified at §§1821 and 1920. Pp. 3–12.

(a) Sections 1821 and 1920 define what the term “costs” encompasses in subject-specific federal statutes such as §505. Congress may authorize awards of expenses beyond the six categories specified in the general costs statute, but courts may not award litigation expenses that are not specified in §§1821 and 1920 absent explicit authority. This Court’s precedents have consistently adhered to that approach. See Crawford Fitting Co. v. J. T. Gibbons, Inc., 482 U. S. 437; West Virginia Univ. Hospitals, Inc. v. Casey, 499 U. S. 83; Arlington Central School Dist. Bd. of Ed. v. Murphy, 548 U. S. 291. The Copyright Act does not explicitly authorize the award of litigation expenses beyond the six categories specified in §§1821 and 1920, which do not authorize an award for expenses such as expert witness fees, e-discovery expenses, and jury consultant fees. Pp. 3–6.

(b) Oracle’s counterarguments are not persuasive. First, Oracle argues that the word “full” authorizes courts to award expenses beyond the costs specified in §§1821 and 1920. The term “full” is an adjective that means the complete measure of the noun it modifies. It does not, therefore, alter the meaning of the word “costs” in §505. Rather, “full costs” are all the “costs” otherwise available under the relevant law.

Second, Oracle maintains that the term “full costs” in the Copyright Act is a historical term of art that encompasses more than the “costs” listed in §§1821 and 1920. Oracle argues that Congress imported the meaning of the term “full costs” from the English copyright statutes into the Copyright Act in 1831. It contends that the 1831 meaning of “full costs” allows the transfer of all expenses of litigation, beyond those specified in any costs schedule, and overrides anything that Congress enacted in the Fee Act of 1853 or any subsequent costs statute. Courts need not, however, undertake extensive historical excavation to determine the meaning of costs statutes. See Crawford Fitting Co., 482 U. S., at 445. In any event, Oracle has not shown that the phrase “full costs” had an established meaning in English or American law that covered more than the full amount of the costs listed in the applicable costs schedule. Case law since 1831 also refutes Oracle’s historical argument.

Third, Oracle advances a variety of surplusage arguments. According to Oracle, after Congress made the costs award discretionary in 1976, district courts could award any amount of costs up to 100 percent, and so Rimini’s reading of the word “full” now adds nothing to “costs.” Because Congress would not have intended “full” to be surplusage, Oracle contends, Congress must have employed the term “full” to mean expenses beyond the costs specified in §§1821 and 1920. But even if the term “full” lacked any continuing significance after 1976, the meaning of “costs” did not change. Oracle’s interpretation would also create its own redundancy problem by rendering the second sentence of §505–which covers attorney’s fees–largely redundant because §505’s first sentence presumably would already cover those fees. Finally, Oracle’s argument, even if correct, overstates the significance of statutory surplusage and redundancy. See, e. g., Marx v. General Revenue Corp., 568 U. S. 371, 385. Pp. 6–11.

879 F. 3d 948, reversed in part and remanded.

Kavanaugh, J., delivered the opinion for a unanimous Court.