BRIAN M. COGAN, District Judge.
Plaintiff seeks damages under the Communications Act of 1934, as amended, 47 U.S.C. § 605 et seq., and the Cable & Television Consumer Protection and Competition Act of 1992, as amended, 47 U.S.C. § 553 et seq., for closed circuit television signals illegally decoded and broadcast at defendants' bar and restaurant. It is before me on plaintiff's motion for a default judgment under Federal Rule of Civil Procedure 55(b). The motion is granted to the extent set forth below.
Plaintiff, as licensee, entered into a closed-circuit television license agreement to domestically distribute the live telecast referred to as Saul Alvarez v. Liam Smith WBO World Middle Weight Championship Fight Program. The program included preliminary bouts on the same card prior to the Alvarez v. Smith championship fight. The license agreement authorized plaintiff to sub-license the right to show the telecast to commercial establishments.
The telecast was shown nationwide on Saturday, September 17, 2016. Establishments that contracted with plaintiff to broadcast the event were provided with electronic decoding equipment and satellite coordinates necessary to receive and unscramble the signal. Defendants, however, intercepted or received plaintiff's signal, allowing their patrons to unlawfully view the event in violation of 47 U.S.C. §§ 553, 605.
As an initial matter, "[o]nce default has been entered, the allegations of the Complaint that establish the defendant's liability are accepted as true, except for those relating to the amount of damages."
There is no question here as to liability. Plaintiff has adequately pleaded signal piracy under the statutes and is entitled to damages.
The law presents several options for determining damages. First, the aggrieved party may recover actual damages that it has suffered plus the violator's profits. 47 U.S.C. § § 605(e)(3)(C)(i)(I), 553(c)(3)(A). "Profits" are defined as gross revenue less (1) deductible expenses; and (2) that portion of gross revenue not attributable to the piracy.
In signal theft cases in default, and perhaps in most signal theft cases, actual damages plus the violator's profits present a hollow or at least incomplete remedy. A piracy victim is not able to ascertain the profits of a defaulting defendant, and for the marginal commercial establishment that is usually the perpetrator of signal theft, there may not be any profits that are directly attributable to the offense, or at least none that are measurable with the precision that the statute requires.
This is where statutory damages are helpful. A plaintiff recovering statutory damages is entitled to recover an award from $1000 and $10,000 per violation. 47 U.S.C. § 605(e)(3)(C)(i)(II). "When determining statutory damages under section 605, courts generally choose between two methods of calculations — a per-customer damage calculation or a flat-sum award."
Since there were 6 patrons present, and the Court doubts the cost of watching this particular boxing match at home exceeded $300,
Thus, the Court will award an enhancement of $9000. This amount not only serves as specific and general deterrence, but also takes into account the increased profits the bar generated that evening, including the $5 cover charge and the bar's use of the fight to "draw potential customers who would then spend more money inside" the establishment.
Plaintiff also seeks an award of pre-judgment interest at a rate of 9% per annum from November 14, 2009, to the date of judgment. A majority of courts in this Circuit have held that pre-judgment interest should not be imposed when statutory damages have been enhanced under Section 605(e)(3)(C)(ii), as the enhancement serves to punish defendants' willful conduct rather than to compensate plaintiff for a loss.
Finally, Section 605(e)(3)(B)(iii) states that a court "shall direct the recovery of full costs, including awarding reasonable attorneys' fees to an aggrieved party who prevails," and plaintiff has requested leave to move for such fees. That request is granted, and plaintiff may move for attorneys' fees within 21 days of entry of judgment as set forth below.
Plaintiff's motion for a default judgment is granted. The Clerk is directed to enter judgment against defendants, jointly and severally, in the amount of $10,800.