37 CFR § 232.3 - Bad-faith conduct.

---
identifier: "/us/cfr/t37/s232.3"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "37 CFR § 232.3 - Bad-faith conduct."
title_number: 37
title_name: "Patents, Trademarks, and Copyrights"
section_number: "232.3"
section_name: "Bad-faith conduct."
chapter_name: "U.S. COPYRIGHT OFFICE, LIBRARY OF CONGRESS"
subchapter_number: "B"
subchapter_name: "COPYRIGHT CLAIMS BOARD AND PROCEDURES"
part_number: "232"
part_name: "CONDUCT OF PARTIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "17 U.S.C. 702, 1510."
regulatory_source: "87 FR 20713, Apr. 8, 2022, unless otherwise noted."
cfr_part: "232"
---


# 232.3 Bad-faith conduct.

(a) *General.* The Board shall award costs and attorneys' fees as part of a determination where it is established that a *participant* engaged in *bad-faith conduct,* unless such an award would be inconsistent with the interests of justice.

(b) *Allegations of bad-faith conduct*—(1) *On the Board's initiative.* On its own, and prior to a *final determination,* the Board may order a *participant* to show cause why certain conduct does not constitute *bad-faith conduct.* Within 14 days, the *participant* accused of *bad-faith conduct* shall file a response to this order, which shall follow the procedures set forth in § 220.5(a)(2).

(2) *On a party's initiative.* A party that in good faith believes that a *participant* has engaged in *bad-faith conduct* may file a request for a conference with the Board describing the alleged bad-faith conduct and attaching any relevant exhibits. Requests for a conference concerning allegations of *bad-faith conduct* and any responses thereto shall follow the procedures set forth in § 220.5(a)(2) of this subchapter.

(c) *Establishing bad-faith conduct.* After the response of an accused *participant* has been filed under paragraph (b) of this section, or the time to file such a response has passed, the Board shall either make a determination that no *bad-faith conduct* occurred or schedule a conference concerning the allegations.

(d) *Determining the award.* A determination as to any award of attorneys' fees and costs due to *bad-faith conduct* shall be made as part of the *final determination.* In determining whether to award attorneys' fees and costs due to *bad-faith conduct,* and the amount of any such award, the Board shall consider the requests and responses submitted, any arguments on the issue, and the accused *participant's* behavior in other Board proceedings. Such an award shall be limited to an amount of not more than $5,000, unless—

(1) The adversely affected party appeared *pro se* in the proceeding, in which case the award shall be limited to costs in an amount of not more than $2,500; or

(2) Extraordinary circumstances are present, such as a demonstrated pattern or practice of *bad-faith conduct,* in which case the Board may award costs and attorneys' fees in excess of the limitations in this section.

[87 FR 30090, May 17, 2022; 87 FR 36061, as amended at June 15, 2022]