Supreme Court Denies Moral Damages to Film Companies in Copyright Case

Supreme Court Denies Moral Damages to Film Companies in Copyright Case

The Supreme Court of Sweden has upheld the judgment from the Patent and Market Court of Appeal in a widely noted case, involving Svensk Filmindustri, Nordisk Film A/S, and a private individual, H.F. The court rejected the film companies’ claims for moral (non-economic) damages arising from the unauthorized online distribution of their copyrighted films via the streaming platform Dreamhost.

Although the acts — involving the unauthorized public transfer of 22 film works — were deemed intentional and infringing, the Supreme Court found that moral damages cannot be awarded to legal entities unless there is a sufficiently close connection between the company and the individual creator of the work.

The ruling reinforces a strict stance in Swedish law: legal entities, even those representing culturally significant works, have limited rights to compensation for damages of a non-economic nature.

Significant Legal Implications

The judgment carries broad implications for how creative industry companies can protect their rights. Since moral rights remain tied to the individual author, companies acquiring such rights may find themselves without full protection in cases of digital infringement.