Tag:Taxable Costs

Key Insight: Court followed prevailing view, adopted by the Third and Fourth Circuits, that Section 1920(4) has an exceedingly narrow scope as it relates to electronic production, and tasks and associated costs of electronic discovery other than file conversion – including “preserving, processing, searching, culling and extracting ESI” – do not amount to “making copies” under the statute; court evaluated expenses charged by defendants’ counsel’s in-house electronic discovery team and defendants’ outside e-discovery vendor, disallowing various e-discovery costs and applying a 90% across-the-board reduction to account for excluded tasks and vagueness in the billing entries submitted by defendants

Nature of Case: Musician sued producers and distributors of movie and its accompanying soundtrack for trademark infringement

Electronic Data Involved: ESI; costs associated with electronic discovery

Key Insight: Magistrate judge evaluated defendants’ bills of taxable costs and plaintiff’s objections thereto, and allowed and disallowed various e-discovery related costs; magistrate judge observed that courts within the Northern District of California have awarded costs under 28 USC s. 1920(4) for such things as scanning paper documents, electronic scanning and conversion to PDF, TIFF conversion, OCR and OCR conversion, image endorsement/Bates stamping, slip sheet preparation, blow-back scanning paper documents, and media hardware used for production; she further awarded costs related to the loading and processing of data, designed to make the data usable, actual data production costs, and migration and restoration costs designed to move the data — already stored in another database — into another database for use in the litigation; magistrate judge further ruled that e-discovery hosting costs and associated fees and FedEx costs associated with e-discovery costs were not compensable

Nature of Case: Patent infringement

Electronic Data Involved: ESI

Key Insight: Court denied recovery of the cost of ?storage of produced documents in [an] electronic discovery database? where Plaintiff failed to establish that the database was necessary and not merely beneficial or convenient

Electronic Data Involved: Taxable costs

Key Insight: Reducing defendants taxable costs, the court indicated that recovery for bates labeling, converting to pdf for attorney review and redaction, and de-duplication was not allowed and significantly reduced the remaining identified costs, including those for ?processing? and ?preparing? data absent a sufficient explanation of what was meant by those terms

Electronic Data Involved: Taxable costs

Key Insight: Court denied request for costs of ?preparing electronic data to be converted to TIFF format? including ?data loading, data processing, and de-duplication and culling?; regarding OCR costs, the court acknowledged that there is ?less uniformity? about the issue of recovery and awarded costs for converting ESI into a ?readable format? (TIFF Conversion) – the equivalent of ?making copies? under 1920(4) – but denied costs for making that document searchable (OCR), noting that the requesting party had not ?shown why OCR was necessary to the production?

Electronic Data Involved: ESI Taxable costs

Key Insight: Noting the limited application of 28 U.S.C. ?1920(4), the court declined to allow recovery of electronic discovery costs for ?forensic consulting and collection,? ?early case assessment,? and ??electronic discovery processing and hosting, data collection, imaging,? and the like? because they were ?not associated with the copying of digital materials?

Nature of Case: Contract dispute

Electronic Data Involved: taxable costs for electronic discovery

Key Insight: Observing that courts in the district have found that fees for “.TIFF and OCR conversion, Bates stamping, load file and other physical media generation” are recoverable as copying fees under Section 1920(4), but that costs of assembling, collecting, processing, storing or managing ESI are not recoverable, court reduced $61,549 award of taxable costs where prevailing party failed to provide sufficient detail of its e-discovery costs to allow the court to determine what items were properly taxable; court instead awarded costs of $6,870 which represented a charge of $0.03 per document for bates stamping and TIFF conversion of 229,000 documents

Nature of Case: Copyright infringement, unfair competition

Electronic Data Involved: ESI

Key Insight: Court held that ?scanning documents and converting computer data into readable format constitute copying within the meaning of section 1920(4)? but that ?costs associated with storing ESI are not recoverable?

Nature of Case: Misappropriation of trade secrets

Electronic Data Involved: Taxable costs related to ESI

Key Insight: Court allowed recovery of costs in categories including, ? ?heavy litigation scanning,? bates labeling in electronic format . . . ?hourly tech time,? ?make 1 blowback set of all PDF files outside off [sic]folders; slipsheet with file name? but declined to allow recovery of ?OCR costs? absent evidence that the parties agreed to make documents searchable

Nature of Case: Taxable costs

Electronic Data Involved: Taxable costs