[sirbruce]

Actually I meant statutory damages, not punitive ones. This is why one should not amateur lawyer over the Internets. Anyway, let me quote the following from publaw:

The second reason a copyright owner should register a copyrighted work in a timely manner is that the copyright owner will be eligible to receive "statutory damages" and "legal costs and attorneys' fees" from a copyright infringer. A timely manner means that the copyright registration was filed prior to an infringement taking place or within three months from the publication date of the work. If the infringement occurs prior to the effective date of copyright registration or after the three-month grace period then the copyright owner will not be entitled to receive statutory damages and legal costs and attorneys' fees. The effective date of copyright registration is the date when the Copyright Office receives the complete registration application that consists of the application, fee and deposit copies.

The significance of statutory damages is that it permits an award of special damages in a successful infringement lawsuit and negates the duty of the copyright owner to prove actual damages. The reasons why a copyright owner may elect to receive statutory damages rather than actual damages is that in many instances proving actual damages is very difficult or the profits of the infringer are very small. The statutory damages that will be awarded is discretionary and will depend upon how willful and harmful the infringement was * usually the more deliberate and more damaging the infringement the greater the award. Furthermore, the legal costs in any copyright infringement lawsuit, particularly attorneys' fees, are extremely expensive. By registering the work in a timely manner the court also has the discretion to award attorneys' fees and legal costs to the copyright owner.