JK SOFT, INC. v. INNOAS, INC.

District Court, D. New Jersey·Decided August 11, 2025·No. 2:18-cv-00199·Unknown

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

SOFT, INC., a California Corporation, Plaintiff, . Civil Action No.: 18-199 (WIM) (CLW) INNOAS, INC,, SEUING JAI YI a/k/a NOAH LEE, OPINION AND ORDER GRANTING MOTION FOR Defendants. DEFAULT JUDGMENT

WILLIAM J. MARTINE, U.S.D J,

I. BACKGROUND On January 8, 2018—over seven years ago-—plaintiff JK Soft, Inc, brought this action against defendants Innoas, Inc. (“Innoas”) and its principal Noah Lee (f/k/a Seung Jai Yi) (“Lee”) alleging that Innoas, acting through Lee, pirated plaintiff’s software program and resold copies of the program and counterfeited access keys (“Keys”) without authorization. The fifteen-count complaint includes claims for copyright infringement, common law trademark infringement, trademark dilution under New Jersey state law, violation of the Computer Fraud and Abuse Act (18 U.S.C. § 1030), violation of the Copyright Act (17 U.S.C. § S01), violation of the Digital Millenium Copyright Act (17 U.S.C. § 1201) (“DMCA”), violation of the Federal Defense of Trade Secret Act (18 U.S.C. § 1836) (DTSA”), statutory and common law unfair competition, tortious interference with economic interest, conversion, civil conspiracy to defraud, unjust enrichment, and a request for accounting. Plaintiff requested injunctive relief, damages, interest, and costs. See ECF No, 1. Defendants originally answered the Complaint on February 5, 2018, at which time they were both represented by counsel. ECF No. 5. All parties participated in this litigation through the exchange of discovery. In May 2023, counsel for Defendants withdrew their representation, citing unpaid legal bills and Lee’s inability to effectively participate in the litigation due to multiple unsuccessful eye surgeries that impaired. his vision. ECF No. 78. Neither defendant retained new counsel. The Clerk placed Innoas in default and struck its responsive pleading on October 11, 2023, ECF No. 89. Plaintiff moved for default judgment against both defendants on September 13, 2024, ECF No. 102, which was denied without prejudice because plaintiff had not yet moved to strike Lee’s responsive pleading or place him in default, ECF No. 104. Pursuant to the Court’s directive, plaintiff moved to place Lee in default and strike his answer as a sanction for failure to participate in discovery. ECF No. 105. On February 20,

2025, the Court adopted the Magistrate Judge’s Report and Recommendation granting plaintiff's motion, placing Lee in default, and striking Lee’s responsive pleading as a sanction for failure to participate in the litigation. ECF Nos, 109, 110. On March 6, 2025, plaintiff moved once again for default judgment against both defendants, ECF No. 109. The following day, plaintiff filed a corrected motion for default judgment curing a procedural deficiency that was noted by the Clerk. ECF No. 110. On March 25, 2025, Lee filed two short opposition briefs, one of which was nominally directed at the incorrectly-labeled Motion to Amend, but both of which sought to respond in substance to plaintiff’s motion for default judgment. See ECF Nos. 111, 112. Plaintiff argued that his failure to participate should be excused due to medical and financial hardship and his pro se status following the withdrawal of his attorney. The Court exercised its discretion to grant Lee one final opportunity to either retain new counsel or otherwise resume meaningful participation in this litigation, and denied plaintiffs default judgment motion without prejudice. After multiple warnings, Lee continued to disobey the Court’s Order requiring information regarding his plans to proceed with litigation. See ECF Nos. 118, 119. Accordingly, on July 1, 2025, the Court placed both defendants in default, again struck Lee’s responsive pleading, and instructed plaintiff to file a third motion for default judgment, which plaintiff did on July 7, 2025. ECF Nos. 120, 121. For the reasons set forth below, plaintiff’s motion for default judgment is GRANTED IN PART and DENIED IN PART. Il. DISCUSSION Fed. R, Civ. P. 55(6)(2) “authorizes courts to enter a default judgment against a properly served defendant who fails to file a timely responsive pleading.” Chanel, Inc. v. Gordashevsky, 558 F. Supp. 2d 532, 535 (D.N.J. 2008). Defendants were properly served by summons. ECF Nos. 3, 7; Fed, R, Civ. P. 4(b). “It is well settled in this Circuit that the entry of a default judgment is left primarily to the discretion of the district court.” Hritz v. Woma Corp., 732 F.2d 1178, 1180 (3d Cir, 1984) (citing Tozer v. Charles A, Krause Milling Co., 189 F.2d 242, 244 (3d Cir. 1951)). A. Jurisdiction Before the Court grants a motion for default judgment, it must ensure, infer alia, (1) that it has jurisdiction and (2) “that entry of default under Rule 55(a) was appropriate.” Gov't Employees Ins. Co. v. Pennsauken Spine & Rehab PC, 17-cv-11727, 2018 WL 3727369, at *2 (D.N.J. Aug, 6, 2018), The Court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331, 1338(a), and 501, The Court has personal jurisdiction over the defendants: Innoas is a New Jersey corporation, and Lee resides in, conducts his business in, and is alleged to have committed the tortious activity at issue in the state of New Jersey. Rule 55(a) of the Federal Rules of Civil Procedure provides that “[w]hen a party against whom a judgment for affirmative relief is sought has failed to plead or otherwise defend, and that failure is shown by affidavit or otherwise, the clerk must enter the party’s default.” Here,

Free access — add to your briefcase to read the full text and ask questions with AI

JK SOFT, INC. v. INNOAS, INC., (D.N.J. 2025).

JK SOFT, INC. v. INNOAS, INC. (JK SOFT, INC. v. INNOAS, INC.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Tozer v. Charles A. Krause Milling Co.
189 F.2d 242 (Third Circuit, 1951)
Comdyne I, Inc. v. Corbin
908 F.2d 1142 (Third Circuit, 1990)
Chanel, Inc. v. Gordashevsky
558 F. Supp. 2d 532 (D. New Jersey, 2008)
Goldsmith v. Camden County
975 A.2d 459 (New Jersey Superior Court App Division, 2009)
MacDougall v. Weichert
677 A.2d 162 (Supreme Court of New Jersey, 1996)
Duffy v. Charles Schwab & Co., Inc.
123 F. Supp. 2d 802 (D. New Jersey, 2000)
Blakey v. Continental Airlines, Inc.
2 F. Supp. 2d 598 (D. New Jersey, 1998)
Oakwood Laboratories LLC v. Bagavathikanun Thanoo
999 F.3d 892 (Third Circuit, 2021)
Pyrotechnics Management Inc v. XFX Pyrotechnics LLC
38 F.4th 331 (Third Circuit, 2022)
Hritz v. Woma Corp.
732 F.2d 1178 (Third Circuit, 1984)