Kingvision Pay-Per-View Ltd. v. Autar

426 F. Supp. 2d 59, 2006 U.S. Dist. LEXIS 26733, 2006 WL 997243
CourtDistrict Court, E.D. New York
DecidedApril 13, 2006
Docket04-CV-3469 (SLT)
StatusPublished
Cited by13 cases

This text of 426 F. Supp. 2d 59 (Kingvision Pay-Per-View Ltd. v. Autar) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kingvision Pay-Per-View Ltd. v. Autar, 426 F. Supp. 2d 59, 2006 U.S. Dist. LEXIS 26733, 2006 WL 997243 (E.D.N.Y. 2006).

Opinion

MEMORANDUM and ORDER

TOWNES, District Judge.

In August 2004, plaintiff Kingvision Pay-Per-View Ltd., a franchised cable television operator which markets and licenses the commercial viewing of boxing events on a pay-per-view basis, commenced this action pursuant to 47 U.S.C. §§ 553 and 605, alleging that defendants intercepted the signal for a boxing event— the December 13, 2003, Back to Back to Back Program (the “Program”) — without authorization and showed it to patrons at Gate Way Beer Garden, a Brooklyn establishment with a capacity of approximately 50 persons. After defendant failed to an *62 swer or to otherwise respond to its complaint, plaintiff filed the instant motion for a default judgment, seeking statutory damages of up to $10,000 pursuant to 47 U.S.C. § 605(e)(3)(C)(i)(II); enhanced damages of up to $100,000 pursuant to 47 U.S.C. § 605(e)(3)(C)(ii); and costs and attorneys’ fees. For the reasons stated below, plaintiffs motion is granted and a judgment will be entered against defendants, jointly and severally, in the amount of $12,515.

The Consequences of Defendants’ Default

“Where, as here, ‘the court determines that [a] defendant is in default, the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.’ ” Chen v. Jenna Lane, Inc., 30 F. Supp 2d 622, 623 (S.D.N.Y.1998) (quoting 10A Charles A. Wright, Arthur R. Miller & Mary Kay Kane, Federal Practice & Procedure § 2688, at 58-59 (3d ed.1998)). Accordingly, by defaulting in this case, defendants have conceded, inter alia, that they (1) “willfully violated 47 U.S.C. § 605(a)” by intercepting plaintiffs signal, Complaint at ¶ 18, and (2) violated 47 U.S.C. § 553 by wilfully and illegally intercepting the Program “when it was distributed and shown by cable television systems.” Complaint at ¶ 31. 1

Although defendants have admitted liability under both § 605 and § 553, plaintiff “can recover under only one statute.” Kingvision Pay-Per-View Ltd. v. Brito, No. 05 CV 1042(GBD) (RLE), 2006 WL 728408, at *1 (S.D.N.Y. Mar. 20, 2006) (Report and Recommendation of Ellis, M.J.) (citing International Cablevision, Inc. v. Sykes, 75 F.3d 123, 129 (2d Cir.1996)). Since § 605(e) provides “far more severe penalties than those of § 553(c),” International Cablevision, Inc. v. Sykes, 997 F.2d 998, 1007 (2d Cir.1993), plaintiff has elected to pursue remedies under § 605(e).

Damages Under § 605(e)

Section 605(e) provides, inter alia, that any person aggrieved by a violation of § 605(a) can bring a civil action in district court, in which the court:

(i) may grant temporary and final injunctions on such terms as it may deem reasonable to prevent or restrain violations of ... [§ 605(a) ];
(ii) may award damages as described in subparagraph (C); and
(iii) shall direct the recovery of full costs, including awarding reasonable at *63 torneys’ fees to an aggrieved party who prevails.

47 U.S.C. § 605(e)(3)(B)(i)-(iii). Subpara-graph (C) permits the recovery of either actual damages under (C)(i)(I), or statutory damages under (C)(i)(II). Given the lack of discovery from which to compute actual damages, plaintiff requests that this Court award statutory damages.

The statutory damages provision, § 605(e)(3)(C)(i)(II), provides, in pertinent part:

[T]he party aggrieved may recover an award of statutory damages for each violation of [§ 605(a) ] ... in a sum of not less than $1,000 or more than $10,000, as the court considers just ....

In addition, § 605(e)(3)(C)(ii) states:

In any case in which the court finds that the violation was committed willfully and for purposes of direct or indirect commercial advantage or private financial gain, the court in its discretion may increase the award of damages, whether actual or statutory, by an amount of not more than $100,000 for each violation of [§ 605(a) ] ....

Although § 605 provides little guidance as to how to set damages within the statutory range, “courts in this circuit have relied upon one of two methods of calculating statutory damages in cases involving the unauthorized receipt and exhibition of pay-per-view events.” Garden City Boxing Club, Inc. v. Morales, No. 05-CV-0064 (FB)(KAM), 2005 WL 2476264, at *6 (E.D.N.Y. Oct. 7, 2005) (Report and Recommendation of Matsumoto, M.J.) (citing Time Warner Cable v. Googies Luncheonette, Inc., 77 F.Supp.2d 485, 489 (S.D.N.Y.1999)). First, in cases where the exact number of patrons is unknown, courts have awarded flat sums based on what the court “considers just.” See, e.g., Entertainment by J & J, Inc. v. Suriel, No. 01 Civ. 11460(RO), 2003 WL 1090268, at *1 (S.D.N.Y. Mar. 11, 2003) (awarding $11,000 in statutory damages); Home Box Office v. Champs of New Haven, Inc., 837 F.Supp. 480, 484 (D.Conn.1993) (awarding $10,000 in statutory damages). Second, “[i]n cases where there is uncontradicted evidence of the number of patrons viewing the match in the establishment, courts have ... multiplied the number of patrons by a set sum,” and have awarded that amount “plus any cover charges or other profits attributable to the unauthorized viewing.” Morales, 2005 WL 2476264, at *6. Although the “set sum” varies widely, with some courts awarding as little as $20, see Time Warner Cable v. Sanchez, No. 02 Civ. 5855(GBD)(FM), 2003 WL 21744089, at *4 (S.D.N.Y. July 8, 2003), and some courts awarding as much as $300, see Garden City Boxing Club, Inc. v. Salcedo, No. 04 Civ. 5027(DFE), 2005 WL 2898233, at *2 (S.D.N.Y. Nov. 3, 2005), many courts have found $50 to be the appropriate amount. See, e.g., Entertainment by J & J, Inc. v. Mama Zee Rest. & Catering Services, Inc., No. CV-01-3945 (RR), 2002 WL 2022522, at *3 (E.D.N.Y. May 21, 2002); Googies Luncheonette, Inc., 77 F.Supp.2d at 490; Time Warner Cable v. Taco Rapido Rest., 988 F.Supp. 107, 111 (E.D.N.Y.1997); Cablevision Sys. Corp. v. 45 Midland Enter., Inc., 858 F.Supp.

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426 F. Supp. 2d 59, 2006 U.S. Dist. LEXIS 26733, 2006 WL 997243, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kingvision-pay-per-view-ltd-v-autar-nyed-2006.