Default Judgment

April 22, 2020

Judge relies on Indiana Verdict to Deny Oregon Judgment for Bell

District of Oregon – Richard Bell, a well-known copyright infringement litigant, has filed over 100 lawsuits regarding infringement of U.S. Copyright No. VA0001785115 (the “Indianapolis Photo”). However, in September 2019, a federal jury in Bell v. Carmen Commercial Real Estate Servs. found that Bell was unable to prove that he actually owned the Indianapolis Photo. Case No. 1:16-cv-01174-JRS-MPB, (S.D. Ind. Sept. 26, 2019). Being that the first element in a copyright infringement claim is to prove ownership of a valid copyright, it appeared that the jury’s decision would put an end to future litigation for Bell.

In the present case, Bell, sought a default judgment against Michael J. Davis and three other Defendants for allegedly infringing his rights in the Indianapolis Photo in the U.S. District Court for the District of Oregon. After the Defendants failed to appear or respond to the Complaint, the Magistrate Judge issued an entry of default against all of the Defendants. Bell then filed a motion for an entry of default judgment to be entered along with an award of $150,000 in statutory damages, attorneys’ fees, costs, and injunctive relief.

November 26, 2019

Indiana Trademark Litigation: AWGI, LLC and Atlas Van Lines, Inc. Granted Default Judgment

By Overhauser Law Offices, LLC

Indianapolis, Indiana – The case of AWGI, LLC and Atlas Van Lines, Inc. versus American Wide Relocation Inc. d/b/a Atlas Moving and Storage (“American Wide”) was filed by Plaintiffs alleging American Wide infringed their rights in two separate United States Registered Trademarks. American Wide failed to appear or respond to Plaintiffs’ Complaint and upon Motion for Final Default Judgment, the Court granted default judgment to the Plaintiffs on October 1, 2019.

In accordance with the default judgment, American Wide and all those persons who receive actual notice of the Court’s Order are permanently enjoined and restrained from: causing likelihood of confusion; “directly or indirectly falsely designating or representing that any goods or services are authorized, approved, associated with, or originate from, Plaintiffs”; “directly or indirectly using the ‘Atlas’ mark and the Infringing Logo or any confusingly similar variants”; utilizing the “Atlas” mark and the Infringing Logo; and “publishing, assembling, marketing, distributing, or otherwise utilizing any literature . . . which bear the ‘Atlas’ mark and the Infringing Logo”.

American Wide was further ordered: to destroy all literature, advertisements, etc. that bear the “Atlas” mark and the Infringing Logo; to notify its customers that the “Atlas” mark and Infringing Logo are not connected with Plaintiffs; and to immediately comply with the Court’s Order including filing “a statement, under oath and penalty of perjury, that each and every injunctive provision has been fully and completely complied with.” Finally, American Wide was ordered to transfer all internet domains and social media accounts that incorporate the term “Atlas” to the Plaintiffs.

October 7, 2019

Engineered by Schildmeier Granted Over $1.4 Million Dollars in Default Judgment

By Overhauser Law Offices, LLC

Indianapolis, Indiana – Judge Richard L. Young in the Southern District of Indiana granted default judgment in favor of Engineered by Schildmeier, LLC (“Engineered”) and against WUHU Xuelang Auto Parts Co., LTD and Amazing Parts Warehouse (collectively the “Defendants”). Engineered filed suit seeking a declaratory judgment of both patent and trade dress infringement in late 2018. The patent allegedly infringed in the complaint is United States Patent No. D 816,584 (the “‘584 Patent”) for a “Pair of Bed Rail Stake Pocket Covers”.

When a defendant fails to plead or defend a case against them within the allotted time frame, they are in default. A plaintiff may motion the court for a default judgment, which is a binding judgment of the court for failure of the defendant to answer the allegations. The court can then grant a default judgment. If a proof of damages hearing is necessary, the judge can order such a hearing, but the defendant may not appear at that point to defend the amount of damages asserted by the plaintiff. A default judgment may be set aside upon request of the defendant, but they must show a good defense and legitimate excuse as to why they were in default to the court.

In this case, neither of the Defendants plead or otherwise defended themselves against the allegations set forth in Engineered’s complaint. As such, the court granted Engineered’s motion for default judgment and awarded damages accordingly. First, the Court found that the Defendants infringed the ‘584 Patent. Second, the Court found the Defendants violated Section 43(a) of the Lanham Act by infringing Engineered’s trade dress. Third, the Defendants were enjoined from importing, selling, or offering for sale any imitations of the ‘584 Patent. Finally, Engineered was awarded a total of $1,424,070.00. The damages award was calculated by adding $470,020.00 in lost profits; $940,040.00 in treble damages for willful infringement; $13,610.00 in attorneys’ fees; and $400.00 in court costs. By failing to appear and defend themselves, not only will defendants have default judgments granted against them, but as shown in this case, extremely large damages may also be imposed.

November 14, 2018

Indiana Cable/Satellite TV Litigation: Joe Hand Promotions Prevails in Suit for Unlawful Interception and Broadcast

By Overhauser Law Offices, LLC

Indianapolis, Indiana – In April of 2018, Attorneys for Plaintiff, Joe Hand Promotions, Inc., of Feasterville, Pennsylvania, filed suit in the Southern District of Indiana alleging that Defendants, The Anchor Lounge, LLC, d/b/a The Anchor Lounge, of Muncie, Indiana, and Randy Phillips, an individual residing in Delaware County, Indiana, infringed its rights in the “Ultimate Fighting Championship® 207: Nunes v. Rousey” (the “Program”). Plaintiff sought statutory damages, attorney’s fees, interest, and cost of suit. On October 25, 2018, the court entered default judgment in the Plaintiff’s favor.

Joe Hand is in the business of licensing and distributing pay-per-view sporting events to commercial locations. In their Memorandum of Points and Authorities in Support of their default motion, they claim that Defendants realized a profit of $1,155.00 by not paying the approximate licensing fee they would have paid if they had contracted with Joe Hand. Plaintiffs have filed multiple lawsuits in Indiana and across the nation against commercial establishments that have not contracted with them to exhibit pay-per-view programs, such as the Program in this case, seeking damages under 47 U.S.C. §§ 553 and 605.

While Plaintiff has received default judgments in two separate cases in Indiana this week, the Southern and Northern District Courts awarded the damages in two different manners. For instance, the Southern District in this case awarded Joe Hand the full requested amount of $41,570.00. The Judge in the Northern District, however, parsed out the specific amounts due under the statutes and reduced the award amount requested by more than half. This shows that judges are able to use their discretion in awarding damages and do not have to award the full amount requested just because the defendant did not appear, but they may if they believe the amount requested is sufficient.