In 1942, independent artist Elizabeth Anne Philbrick received a copyright for a statuette of a “Cocker-Spaniel in Sitting Position.” In 1943, Contemporary Arts bought all rights to the artwork.

Although Woolworth's attorneys disputed the existence of a copyright violation in the original trial, the appellate court assumed the infringement and focused on the calculation and method for the legal remedy.

The majority upheld that ruling because the statute vested broad discretion to the courts based on the evidence and specifics of each case.

In this case, the profits made by Woolworth's were irrelevant when compared to the damage done to Contemporary Arts business model.

Hugo Black's dissent argued that the court should only resort to statutory fines in lieu of actual damages when they cannot be calculated.