SARAH S. VANCE, District Judge.
Plaintiff DirecTV moves for partial summary judgment on the question of defendants' liability.
DirecTV transmits satellite television programming to paying subscribers throughout the United States.
DirecTV filed this lawsuit on March 15, 2013, alleging that on June 16, 2012, defendants Habip Ertem and Ulusan, LLC d/b/a St. Charles Tavern ("St. Charles Tavern") received and displayed DirecTV satellite programming at St. Charles Tavern without DirecTV's authorization.
After receiving Bailey's report, DirecTV searched its records and determined that St. Charles Tavern did not have a valid DirecTV commercial account for St. Charles Tavern on June 16, 2012, nor was the bar authorized to display DirecTV satellite programming that day.
The complaint alleges that defendants' unauthorized display of DirecTV satellite programming at St. Charles Tavern violated two federal statutes: 47 U.S.C. § 605, which is part of the Cable Communications Policy Act of 1984, and 18 U.S.C. § 2511, which is part of the Electronic Communications Policy Act of 1986.
On May 9, 2014, DirecTV filed for summary judgment solely on the question of defendants' liability under 47 U.S.C. § 605,
Summary judgment is warranted when "the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a); see also Celotex Corp. v. Catrett, 477 U.S. 317, 322-23 (1986); Little v. Liquid Air Corp., 37 F.3d 1069, 1075 (5th Cir. 1994). When assessing whether a dispute as to any material fact exists, the Court considers "all of the evidence in the record but refrain[s] from making credibility determinations or weighing the evidence." Delta & Pine Land Co. v. Nationwide Agribusiness Ins. Co., 530 F.3d 395, 398-99 (5th Cir. 2008). All reasonable inferences are drawn in favor of the nonmoving party, but "unsupported allegations or affidavits setting forth `ultimate or conclusory facts and conclusions of law' are insufficient to either support or defeat a motion for summary judgment." Galindo v. Precision Am. Corp., 754 F.2d 1212, 1216 (5th Cir. 1985); see also Little, 37 F.3d at 1075.
If the dispositive issue is one on which the moving party will bear the burden of proof at trial, the moving party "must come forward with evidence which would `entitle it to a directed verdict if the evidence went uncontroverted at trial.'" Int'l Shortstop, Inc. v. Rally's, Inc., 939 F.2d 1257, 1264-65 (5th Cir. 1991). The nonmoving party can then defeat the motion by either countering with evidence sufficient to demonstrate the existence of a genuine dispute of material fact, or "showing that the moving party's evidence is so sheer that it may not persuade the reasonable fact-finder to return a verdict in favor of the moving party." Id. at 1265.
If the dispositive issue is one on which the nonmoving party will bear the burden of proof at trial, the moving party may satisfy its burden by merely pointing out that the evidence in the record is insufficient with respect to an essential element of the nonmoving party's claim. See Celotex, 477 U.S. at 325. The burden then shifts to the nonmoving party, who must, by submitting or referring to evidence, set out specific facts showing that a genuine issue exists. See id. at 324. The nonmoving party may not rest upon the pleadings, but must identify specific facts that establish a genuine issue for trial. See, e.g., id.; Little, 37 F.3d at 1075 ("Rule 56 `mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a showing sufficient to establish the existence of an element essential to that party's case, and on which that party will bear the burden of proof at trial.'" (quoting Celotex, 477 U.S. at 322)).
Section 605(a) makes it unlawful for any entity to intercept and display satellite cable programming without proper authorization. See 47 U.S.C. § 605(a) ("No person not being authorized by the sender shall intercept any radio communication and divulge or publish the existence, contents, substance, purport, effect, or meaning of such intercepted communication to any person."). Although § 605(a) refers to radio communication, the protection afforded to radio communications extends to satellite television communications. See, e.g., United States v. Harrell, 983 F.2d 36, 39 (5th Cir. 1993); Nat'l Satellite Sports, Inc. v. Eliadis, Inc., 253 F.3d 900, 912 (6th Cir. 2001) ("satellite communications" included "under the protection of § 605").
The undisputed evidence shows that defendants, without authorization from DirecTV, intercepted and displayed DirecTV satellite programming at St. Charles Tavern on June 16, 2012. First, there is no dispute that St. Charles Tavern displayed DirecTV satellite programming on June 16, 2012.
DirecTV also argues that defendants violated § 605 "knowingly and willfully," for the purpose of receiving a "financial benefit."
Courts have defined "willful" under the statute as "disregard for the governing statute and an indifference for its requirements." See, e.g., ON/TV of Chicago v. Julien, 763 F.2d 839, 844 (7th Cir. 1985) (quoting TransWorld Airlines, Inc. v. Thurston, 469 U.S. 111, 127 (1985)). Courts have found that violators meet this standard when the circumstances surrounding a violation suggest that the violation could not have occurred innocently or by accident. For example, in Joe Hand Promotions, Inc. v. 152 Bronx, L.P., a commercial bar illegally intercepted and displayed a closed circuit telecast of a championship fighting match without paying the required licensing fee. See CIV.A. H-11-3406, 2014 WL 1312372, at *1, *5 (S.D. Tex. Mar. 26, 2014). The court found that the defendants' violation was willful, reasoning that because the broadcast was
Id. at *6; see also Time Warner Cable v. Googies Lucheonette, Inc., 77 F.Supp.2d 485, 490 (S.D.N.Y. 1999) ("Signals do not descramble spontaneously, nor do television sets connect themselves to cable distribution systems.").
Like the cable companies in Joe Hand Promotions and Times Warner Cable, DirecTV encrypts its satellite programming and broadcasts it in scrambled form to keep non-customers from viewing the programming without authorization.
Moreover, defendants clearly intercepted the broadcast for the purpose of commercial gain. St. Charles Tavern is a commercial bar and restaurant business that serves food and alcohol and has an estimated capacity of approximately 101-200 people.
Summary judgment on defendants' liability leaves open the question of relief. Section 605 provides that a prevailing plaintiff may be eligible for injunctive relief as the Court may deem reasonable to prevent or restrain further violations of subsection (a). See 47 U.S.C. § 605(e)(3)(B)(i). Section 605 provides that a prevailing plaintiff may be eligible for monetary damages, which the plaintiff may elect to have computed as either actual or statutory damages. See 47 U.S.C. § 605(e)(3)(C)(I). If the Court awards monetary damages, the Court may enhance the damages if the Court finds that the defendant committed the violation "willfully and for the purposes of direct or indirect commercial advantage or financial gain," or reduce the damages, if the Court finds that the defendant "was not aware" or "had no reason to believe" he was violating § 605. See 47 U.S.C. § 605(e)(3)(C)(ii)-(iii). Finally, a prevailing plaintiff is entitled to "full costs, including . . . reasonable attorneys' fees." 47 U.S.C. § 605(e)(3)(B)(iii).
DirecTV has requested the opportunity to brief the issue of relief separately. Therefore, the Court does not enter judgment with regard to relief at this time.
For the foregoing reasons, the Court GRANTS plaintiff's motion for partial summary judgment on the question of defendants' liability. Defendants are adjudged liable to plaintiff DirecTV for violation of 47 U.S.C. § 605.