Sculptor’s U.S. Stamp Royalty Upheld

A third federal appeals court has ruled that sculptor Frank Gaylord is entitled to a royalty of more than half a million dollars on the U.S. Postal Service’s use of a photograph of his sculpture on a 2003 stamp.

The USPS paid the photographer for the picture of the Korean War Veterans Memorial, but not Gaylord.

Gaylord did not seek a percentage of stamps sold and actually used for postage, but only of stamps sold to collectors. The courts figured that revenue was $5.4 million, “which was almost pure profit” and awarded Gaylord 10% of that amount, or $540,000 “plus prejudgment interest,” which one online law publication says brings the total to $570,000.

Gaylord, now 89, first brought his suit in 2006.

The USPS has never agreed to a per-stamp royalty, but instead paid flat fees to artists and photographers. However, the three judge panel of the U.S. Court of Appeals said on Wednesday, February 4, 2015, the sculpture was the best choice for commemorating the sacrifices of Korean War Veterans, and the USPS “would have agreed to a per-unit license.” Therefore a royalty was appropriate.

“The Postal Service knew, too, that past military-themed stamps had performed well with collectors, and it expected the Korean War Veterans Memorial stamp to sell well, as evidenced by its choice to print roughly 50% more of the Memorial stamps than was typical for its commemorative stamps,” says the opinion by Judge Richard Taranto.

The decision can be found at here. It was first reported by the National Law Journal, although registration is required to read it.  PatentlyO has a story written by University of Missouri law school professor. Linn’s Stamp News also has a story, by Bill McAllister.

There is no word on whether the USPS (or the Justice Department, on its behalf) plans to appeal further.