Koerner, Inc., was found to have violated a copyright owned by Burdick. Burdick brought suit against each of Koerner's directors on the basis that the directors had financially benefited from the copyright infringement and, therefore, were liable for the copyright infringement damages by virtue of their membership on the board of directors. The directors argued that there was no evidence of day-to-day involvement, intent, or any specific knowledge of the infringement by the directors and, thus, they were not personally liable.

CASE QUESTIONS

1. Who prevails and why?

2. Does the corporate veil protect directors in these circumstances?