BANILLA GAMES, INC. v. FUEL SMART 6 INC.

CourtDistrict Court, M.D. North Carolina
DecidedMay 12, 2025
Docket1:24-cv-00358
StatusUnknown

This text of BANILLA GAMES, INC. v. FUEL SMART 6 INC. (BANILLA GAMES, INC. v. FUEL SMART 6 INC.) is published on Counsel Stack Legal Research, covering District Court, M.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BANILLA GAMES, INC. v. FUEL SMART 6 INC., (M.D.N.C. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE MIDDLE DISTRICT OF NORTH CAROLINA

BANILLA GAMES, INC., ) and GROVER GAMING, INC., ) ) Plaintiffs, ) ) v. ) 1:24-cv-358 ) FUEL SMART 6 INC., FUEL ) SMART 9 INC., and FUEL ) SMART 13 INC., ) ) Defendants. )

MEMORANDUM OPINION AND ORDER OSTEEN, JR., District Judge Before this court is Plaintiffs’ Motion for Preliminary Injunction, (Doc. 2), and Plaintiffs’ Motion for Default Judgment, (Doc. 15). For the reasons stated herein, Plaintiffs’ Motion for Preliminary Injunction will be denied and Plaintiffs’ Motion for Default Judgment will be granted. I. PROCEDURAL HISTORY On June 5, 2024, the Clerk entered default as to Defendants Fuel Smart 6 Inc., Fuel Smart 9 Inc., and Fuel Smart 13 Inc., (Defendants) for failing to appear, plead, or otherwise defend this action. (Doc. 14.) Plaintiffs Banilla Games, Inc. and Grover Gaming, Inc. now move for default judgment pursuant to Fed. R. Civ. P. 55(b)(2). (Doc. 15.) Defendants did not respond and the motion is fully briefed. This court finds a hearing is not necessary. For the reasons set forth herein, the motion for default judgment will be granted. The motion for preliminary injunction will be denied as moot. II. ANAYLYSIS A. Jurisdiction “Before a . . . court may exercise personal jurisdiction over a defendant, the procedural requirement of service of summons must be satisfied.” Omni Cap. Int’l, Ltd. v. Rudolf

Wolff & Co., Ltd., 484 U.S. 97, 104 (1987). “The party moving for default judgment must still show that the defaulted party was properly served . . . .” Harris v. Blue Ridge Health Servs., Inc., 388 F. Supp. 3d 633, 637–38 (M.D.N.C. 2019) (citing Md. State Firemen’s Ass’n v. Chaves, 166 F.R.D. 353, 354 (D. Md. 1996)). Plaintiff Banilla Games, Inc. (“Banilla”) and Plaintiff Grover Gaming, Inc. (“Grover”) are corporations organized under the laws of the State of North Carolina with principal places of business in Greenville, North Carolina. (Doc. 1 ¶¶ 11, 12.) Defendants are all North Carolina corporations. (Id. ¶¶ 13, 14,

15.) Fuel Smart 6 has a principal location in Ellerbe, North Carolina, Fuel Smart 9 has a principal location in Robbins, North Carolina, and Fuel Smart 13 has a principal location in Liberty, North Carolina. (Id.) The summons and complaint were served on Defendants on May 8, 2024. (Docs. 9, 10, 11.) Defendants failed to answer or otherwise defend as provided by the Federal Rules of Civil Procedure following proper service. The Clerk entered default against Defendants on June 5, 2024. (Doc. 14.) In their complaint, Plaintiffs assert the following claims. Grover asserts claims of copyright infringement and contributory copyright infringement arising under 17 U.S.C. §§ 101 et seq., (Doc. 1 ¶¶ 71–87), a claim of misappropriation of trade secrets

arising under 18 U.S.C. § 1836(b), (id. ¶¶ 113–120), and a claim under the North Carolina Trade Secrets Protection Act, (id. ¶¶ 121–134). Grover and Banilla assert a claim of false designation of origin and unfair methods of competition, arising under 15 U.S.C. § 1125, (id. ¶¶ 88–96), a claim of unfair and deceptive acts or practices under North Carolina law, (id. ¶¶ 97–104), and a claim of common law trademark infringement, (id. ¶¶ 105–112). Plaintiffs only seek default judgment as to the claims for copyright infringement. (See generally Doc. 16.) This court has subject matter jurisdiction under 28 U.S.C. § 1331, because these civil claims arise under the laws of the United States, and under 28 U.S.C. § 1338, because these claims arise under the

federal copyright laws. B. Default Judgment Generally, if a defendant fails to plead or otherwise defend an action, this court has the discretion to enter default judgment as to that defendant. Fed. R. Civ. P. 55; see Music City Music v. Alfa Foods, Ltd., 616 F. Supp. 1001, 1002 (E.D. Va. 1985). “A court confronted with a motion for default judgment is required to exercise sound judicial discretion in determining whether the judgment should be entered, and the

moving party is not entitled to default judgment as a matter of right.” EMI April Music, Inc. v. White, 618 F. Supp. 2d 497, 505 (E.D. Va. 2009). “Therefore, in determining whether to enter default judgment, the Court may exercise its discretion by considering many factors from the record.” Id. “Although the clear policy of the [Federal] Rules [of Civil Procedure] is to encourage dispositions of claims on their merits, trial judges are vested with discretion, which must be liberally exercised, in entering such judgments and in providing relief therefrom.” United States v. Moradi, 673 F.2d 725, 727 (4th Cir. 1982) (internal citations omitted). “Upon the entry of default, the

defaulted party is deemed to have admitted all well-pleaded allegations of fact contained in the complaint.” J & J Sports Prods., Inc. v. Romenski, 845 F. Supp. 2d 703, 705 (W.D.N.C. 2012). “However, the defendant is not deemed to have admitted conclusions of law . . . .” Id. The court must still decide whether the “unchallenged factual allegations constitute a legitimate cause of action,” Agora Fin., LLC v. Samler, 725 F. Supp. 2d 491, 494 (D. Md. 2010); see Romenski, 845 F. Supp. 2d at 705 (default judgment is proper when “the well-pleaded allegations in the complaint support the relief sought”). Because Defendants have not responded, the well-pleaded facts in the Verified Complaint are adopted and will not be set forth herein except as necessary to this court’s specific findings.

In Plaintiffs’ Motion for Default Judgment, Grover, as the holder of the copyright, (Doc. 1 ¶ 5), and Banilla, as the exclusive distributor of those copyrighted products, (id. ¶ 3), seek judgment against Defendants for damages pursuant to 17 U.S.C. § 504(c)(2) for Defendants’ “unauthorized and willful use of Grover’s Copyrighted Works.” (See Doc. 15 at 1-2.) The Copyrighted Works are defined in the Complaint as copyright registrations for the following computer files and audiovisual effects: Number PA0002206908, obtained on October 11, 2019, for Grover’s “Fusion” video game (the “Fusion Copyrighted Work”). Number PA0002218349, obtained on October 11, 2019, for Grover’s “Fusion 2” video game (the “Fusion 2 Copyrighted Work”). Number PA0002218347, obtained on October 11, 2019, for Grover’s “Fusion 3” video game (the “Fusion 3 Copyrighted Work”). Number PA0002293309, obtained on May 24, 2021, for Grover’s “Fusion 4” video game (the “Fusion 4 Copyrighted Work”). Number PAu004088597, obtained on May 24, 2021, for Grover’s “Fusion 5” video game (the “Fusion 5 Copyrighted Work”).

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