The appeal challenging the Federal Court's decision to reduce damages awarded to RallySport Direct LLC for copyright infringement has been dismissed. The court found the awarded damages to be fair and proportionate, considering various factors such as labor costs, bad faith, and the need for deterrence. The appellants' arguments regarding the lack of correlation between damages and harm suffered were not supported by the cited cases. The court also clarified that the damages did not include RallySport's acquisition costs. Ultimately, the appeal has been rejected, and costs have been awarded.

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