A U.S. federal judge has rejected a US$660 million copyright infringement claim brought by HH Advertising against Sandals Resorts International, awarding the Florida-based agency just under US$50,000 in damages following a bench trial.
According to Law360, U.S. District Judge Cecilia Altonaga awarded HH Advertising US$49,000 for the unauthorized use of 33 photos and videos but ruled that more than 600 other works cited in the lawsuit were ineligible for damages.
“We are extremely pleased with the court’s damages decision and appreciate its careful consideration of the evidence in this matter,” said Matthew Walch of Latham & Watkins, lead trial counsel for Sandals.
The judge’s decision was partially based on a finding that Sandals acted in good faith when continuing to use the advertising materials after ending its relationship with HH Advertising. The two companies had worked together for years prior to the passing of Sandals founder, Gordon “Butch” Stewart, in January 2021. Tensions reportedly rose after Stewart’s death, and by 2023, HH Advertising had demanded that Sandals and its sister brand Beaches cease using the creative content.
At the center of the dispute were video and photography assets produced during a longstanding and well-compensated collaboration between HH Advertising, Sandals, and its exclusive marketing agency, Unique Vacations Inc. Sandals argued that it had already paid in full for the materials.
Judge Altonaga noted the lack of a written agreement outlining specific licensing terms, stating: “Defendants believed they were not infringing — and reasonably so, given the absence of any written agreement containing essential terms or access to the only other party besides Hunter to the oral contract, Butch Stewart.”
She also found that HH failed to provide adequate evidence linking the allegedly infringing material to any revenue generated by Sandals, writing: “Plaintiff does not even provide generalized gross revenue for SRI Limited … The numbers it submits lack a meaningful connection to the infringement.”
Sandals attorney Matthew Walch emphasized that defending the case was about preserving the legacy of founder Butch Stewart and protecting the brand’s integrity. “That legacy lives on today through the passion of a talented team and the loyalty of returning guests. Sandals’ mission remains unchanged: continuing to deliver exceptional experiences to guests around the world,” he said.
Sandals Resorts was represented by Matthew Walch of Latham & Watkins LLP and Peter Prieto of Podhurst Orseck PA. HH Advertising Inc. was represented by Michael Landen and Terri Meyers of Kluger Kaplan Silverman Katzen & Levine PL. Unique Vacations Inc. was represented by Joseph Norvell of Norvell IP and Cecilia Miranda of Brito PLLC.
