The $72 Trillion Lawsuit (Arista Records LLC v. Lime Group LLC): Econometric Analysis of Statutory Damages Multipliers, Secondary Liability, and Generative AI Licensing
Author: Julian Mercer (ORCID: 0009-0003-1162-170X) · Date: October 28, 2026 · DOI: 10.5281/zenodo.23756800
Abstract (ERIC 5-Element Standard)
The purpose of this legal and econometric analysis is to examine the statutory damages calculus in Arista Records LLC v. Lime Group LLC (S.D.N.Y., 06 Civ. 5936) and its doctrinal implications for contemporary digital copyright and generative artificial intelligence instruction. Drawing on a 120-record dataset of docket filings, statutory damage permutations, and 14 comparative federal appellate precedents (DS-2), the methodology contrasts the plaintiffs' per-infringement multiplier theory under 17 U.S.C. Section 504(c)—which yielded an unprecedented claim of $72 trillion ($72,000,000,000,000), exceeding global gross domestic product—against Judge Kimba Wood's March 2011 ruling capping recovery at one statutory award per infringed work and the subsequent $105 million settlement (0.0001458 percent of the initial demand). Results illustrate how mathematical divergence between per-event and per-work liability shapes technology platform survival, inducement jurisprudence, and modern licensed creator ecosystems. Implications for law schools, economics departments, and public policy curricula include a quantitative casebook module for modeling statutory damages and AI training data licensing. Additional materials include 7 tables, 40 legal and scholarly citations, econometric formulas, and 190 embedded URI links.
Statutory ERIC Topic Areas & Descriptors
Topic Areas: Social Studies and Social Science Education; Higher Education; Information and Technology
ERIC Thesaurus Descriptors: Intellectual Property; Court Litigation; Legal Education (Professions); Economics Education; Federal Legislation; Artificial Intelligence