JEFFREY T. MILLER, District Judge.
Plaintiff G & G Closed Circuit Events, LLC ("Plaintiff") moves for entry of default judgment against Defendants Melquis Umana Aguilar, a/k/a Melquis O. Umana-Aguilar, individually and d/b/a Wings Empire and Ribsan Foods, Inc., an unknown business entity d/b/a Wings Empire (collectively, "Defendants"). (Doc. No. 10.) Aside from filing a joint motion for an extension of time to answer the complaint, (Doc. No. 5), Defendants have not participated in this action. The court finds this matter appropriate for decision without oral argument pursuant to Local Rule 7.1(d)(1) and, for the reasons set forth below, enters default judgment against Defendants in the total amount of $18,800.
Plaintiff contracted for the exclusive, nationwide commercial distribution rights to
On March 2, 2018, Plaintiff filed its complaint in this action, alleging (1) violation of 47 U.S.C. § 605, (2) violation of 47 U.S.C. § 553, (3) conversion, and (4) violation of California Business and Professions Code § 17200, et seq. Plaintiff served Defendants with the complaint and summons on March 21, 2018, and April 4, 2018. (
Plaintiff now moves the court for default judgment against Defendants with respect to Plaintiff's claims under 47 U.S.C. § 605 and for conversion.
After the Clerk of Court enters default, the party entitled to judgment "must apply to the court for a default judgment." Fed. R. Civ. P. 55(b). The granting or denying of a default judgment is within the court's sound discretion.
The court considers the following factors in determining whether to grant a default judgment: (1) the substantive merits of the plaintiff's claim; (2) the sufficiency of the complaint; (3) the amount of money at stake; (4) the possibility of prejudice to the plaintiff if relief is denied; (5) the possibility of dispute as to any material facts in the case; (6) whether excusable neglect caused the default, and (7) policy considerations militating in favor of considering cases on their merits rather than resolving matters through default judgment procedures.
Regarding the first three
Next, as to the fourth factor, Plaintiff will be prejudiced if default judgment is not entered because Plaintiff has no other means to recover from Defendants. Thus, this factor weighs in favor of granting Plaintiff's motion.
Finally, with regard to the final three factors, there is unlikely to be a dispute as to the material facts because Defendants have failed to defend themselves, and there is no indication that such failure is due to excusable neglect. Thus, no policy considerations weigh against resolving this matter by way of default judgment.
Therefore, the court grants Plaintiff's motion for default judgment with respect to its claims under 47 U.S.C. § 605 and for conversion.
Plaintiff seeks $6,600 in statutory damages under 47 U.S.C. § 605(e)(3)(C)(i)(II) and $20,000 in enhanced damages under 47 U.S.C. § 605(e)(3)(C)(ii). Additionally, Plaintiff seeks $2,200 in conversion damages.
Under Section 605, the Court may award between $1,000 and $10,000 for each violation as it considers just. 47 U.S.C. § 605(e)(3)(C)(i)(II). The statute also allows the court to increase its award by no more than $100,000 when the violation has been "committed willfully and for purposes of direct or indirect commercial advantage or private financial gain." 47 U.S.C. § 605(e)(3)(C)(ii).
Plaintiff seeks $6,600 in statutory damages, three times the commercial licensing fee. Plaintiff argues that awarding only the licensing fee undervalues the Program and fails to compensate Plaintiff adequately because the availability of unauthorized access to the Program reduces demand and depresses prices.
Plaintiff also asserts that enhanced damages are appropriate, and seeks $20,000. Plaintiff's President, Mr. Gagliardi, claims that Plaintiff has gone to great lengths to curb the unauthorized interception of its programming because of the millions in lost revenue resulting from piracy of broadcasts, and indicates that the state of the technology is such that the programming cannot be mistakenly or accidentally intercepted. (Doc. No. 10-2 ("Gigliardi Aff.") ¶¶ 5-6, 12-13.) Defendants' default also serves as admission that they willfully violated § 605 for financial gain.
As a result, the court awards Plaintiff $6,600 in statutory damages and $10,000 in enhanced damages.
Plaintiff has presented the court with evidence that Defendants could have legally purchased the right to broadcast the Program for $2,200. (Gigliardi Aff., Ex. 2 (listing $2,200 as the rate to purchase the Program for an establishment with seating for 1-100).) Accordingly, the court awards $2,200 in conversion damages.
Under Section 605(e)(3)(B)(iii), the court "shall direct the recovery of full costs, including awarding reasonable attorneys' fees to an aggrieved party who prevails." Plaintiff requests the court grant it fourteen days from the entry of judgment to file a motion for costs and attorneys' fees. The court grants Plaintiff's request.
For the foregoing reasons, the court grants Plaintiff's motion for default judgment with respect to Plaintiff's claims under 47 U.S.C. § 605 and for conversion. Plaintiff is entitled to a monetary judgment against Defendants as follows:
Plaintiff has
IT IS SO ORDERED.