Moonbug Entertainment Limited, et al. v. BabyBus (Fujian) Network Technology Co., Ltd, et al.

District Court, N.D. California·Decided April 22, 2026·No. 3:21-cv-06536·Unknown

Opinion

MOONBUG ENTERTAINMENT Case No. 21-cv-06536-EMC LIMITED, et al., Plaintiffs, ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR v. FEES BABYBUS (FUJIAN) NETWORK TECHNOLOGY CO., LTD, et al., Docket No. 798

Defendants.

Following years of hard-fought litigation, Plaintiff Moonbug prevailed in this copyright action against Defendant BabyBus before a jury and on appeal. This Court entered judgment based on the jury verdict and fees awarded. The Ninth Circuit affirmed on appeal. Moonbug now seeks $933,148 in additional fees incurred in the appeal and in its effort to collect on its $25.6 million dollar judgment. Moonbug seeks $535,155.25 in fees incurred on appeal and $315,488 incurred through judgment enforcement. Dkt. Nos. 798, 807. The Ninth Circuit granted Moonbug’s request to transfer its fees motion to this court. Having reviewed the initial and supplemental briefing and heard oral argument, the Court DENIES Moonbug’s motion for appellate fees but GRANTS in part Moonbug’s motion for judgment enforcement fees. A. Jury Verdict and Fee Award On July 27, 2023, a jury found Defendant BabyBus liable for willful copyright 579; Dkt. No. 711. This Court determined that Moonbug was the prevailing party under Section 505 of the Copyright Act. Dkt. No. 711. Applying the Fogerty factors, the Court found that (1) “Moonbug achieved nearly complete success on the merits”; (2-3) “there [was] no evidence that BabyBus acted frivolously or had a bad motivation in defending Moonbug’s claims of copyright infringement; (4) “BabyBus’s overall defense to copyright infringement was not objectively unreasonable,” and it was “entirely reasonable for BabyBus to challenge that their works were not substantially similar to the CoComelon copyrighted works as a matter of law because of the unprotectable element,” but “several more specific aspects of BabyBus’s defense were objectively unreasonable” — including initially denying copying but conceding willful infringement a year later and Babybus’ independent development defense, which was “baseless” and relied on “fabricated evidence,” — resulting in this factor weighing in favor of fees; and (5) that the need to deter Babybus from further infringement did not weigh in favor of fees because the Court had already issued a permanent injunction. Dkt. No. 711 at 4-7. Overall, the factors weighed in favor of fees. Id. at 7. The Court awarded a total of $6,147,482 in attorney fees. Id. at 20. B. Ninth Circuit Appeal BabyBus appealed the verdict, and challenged the Court’s jury instructions, verdict form, and grant of partial summary judgment to Moonbug on the copyrightability of the JJ character. Dkt. No. 796. The panel affirmed this Court’s decision on all issues. The panel held that (1) “The district court properly instructed the jury on filtering,” noting that Appellants agreed with the proposed instruction before trial; (2) “There was also no error in the district court’s guidance on scenes a faire, merger, and thick/thin protection”; (3) “the district court did not abuse its discretion when it forwent a merger instruction based on insufficient evidence”; (4) “The district court also did not err by finding thick protection and applying the substantial similarity standard,” and that any such error would have been harmless; (5) “There was no error in the district court’s selection and arrangement instruction,” because the Court “provided adequate filtering guidance by distinguishing between the kinds of elements that are typically protected versus those that are the copyrightability of the JJ character,” because the JJ character had several unique characteristics that rendered him “especially distinctive”; and (7) “The district court did not abuse its discretion in formulating the verdict form.” Id. For the issues of providing a merger instruction and applying the substantial similarity standard for thick protection, the panel affirmed on the additional ground that any error was harmless. Id. at 3-4. Babybus’ petition for panel rehearing and en banc was denied. Dkt. No. 799-6. BabyBus did not challenge the Section 505 fee award, the Court’s findings supporting fees under Rule 37(c)(2), fees under 17 U.S.C. § 512(f) for copyright misrepresentation, and sanctions for its discovery misconduct. C. Collection Issues On October 30, 2023, the Court entered Judgment in this action. Dkt. No. 627. During a January 11, 2024 hearing on BabyBus’ post-trial motions, BabyBus requested that the Court stay execution of the judgment pending resolution of those motions, which the Court granted. Dkt. No. 679. On May 15, 2024, the Court denied BabyBus’s post-trial motions in their entirety, ending the temporary stay. Dkt. No. 680. In May 2024, Moonbug sent notices of levy and related documents to the U.S. Marshals’ office for registration, and subsequently served those materials on various levied entities. Dkt. No. 799 ¶ 25. Moonbug also filed a Motion for Order Assigning Rights to Payments from Defendants to Plaintiffs and Restraining Defendants from Interfering with the Assignments. Dkt. No. 683. Moonbug resumed pursuit of collection discovery originally served in September and October 2024. Dkt. No. 799 ¶ 25. On August 6, 2024, the Court issued its Fee Award Order. Dkt. No. 711. As to enforcement of the judgment, the Court denied Moonbug’s request for assignment of BabyBus’ third-party payments as “premature” in part based on BabyBus’ representation that it would post a bond. Id. at 20. On August 22, the Court clarified in a minute order that the stay of Moonbug’s writ of execution had expired on May 15, when the post-trials motions were resolved, and that On August 14, Moonbug learned from Google that back in June, BabyBus’ counsel Quinn Emanual had served on Google a Third Party Claim of Superior Interest by Japan BabyBus Co. Ltd. Dkt. No. 799 ¶ 30. Japan BabyBus “purported to notify Google that it had a superior interest in the funds held by YouTube/Google that Moonbug was seeking to levy.” Id. Two days later, Moonbug filed an emergency motion for an order assigning rights to payments to Moonbug and restraining defendants from interfering with the assigned funds. Dkt. No. 714. On September 12, at oral argument over Moonbug’s motion for an assignment of rights to payment, BabyBus represented that it was unable to put up a bond after all. Dkt. No. 732. The Court reiterated that no stay of judgment was in place. Id. The Court also noted that it expected the 30(b)(6) deposition on judgment enforcement to proceed. Id. The Court granted Moonbug’s request to be assigned certain rights to payment from third parties and to restrain BabyBus from any other assignment of any of those assets to any other entity. Dkt. No. 733. These third parties included Japan Babybus Co., Ltd., YouTube, Apple, Google, PayPal, Spotify, Amazon, Pandora, Baidu, The Roku Channel, Tencent, iQiyi, Toutiao Pangolin, Youku, Himalaya, Sohu, MangoTV, Wasu TV, LeTV, PPTV, ironSource Ltd., and Beijing Youletong Network Technology Co. Id. On September 26, 2024, the 30(b)(6) deposition of BabyBus on judgment enforcement went forward but the witness was not prepared to answer basic questions on the noticed topics. See Dkt. No. 780 ¶ 8; Dkt. No. 777 (J. Westmoore noting that BabyBus does not “seriously dispute” that their proffered witness was unprepared). On November 4, 2024, Moonbug moved to add Japan BabyBus as a judgment debtor. Dkt. No. 738. Moonbug contended that the BabyBus Defendants, rather than paying the judgment, “have instead sought to thwart enforcement of levies on their U.S. revenues by using Japan BabyBus as a shell to launder the [judgment] money.” Dkt. 738 at 21. BabyBus filed a one-page opposition that argued only that BabyBus did not need to provide a substantive response because it had not been properly served and that Japan BabyBus had not controlled the lit

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Moonbug Entertainment Limited, et al. v. BabyBus (Fujian) Network Technology Co., Ltd, et al., (N.D. Cal. 2026).

Moonbug Entertainment Limited, et al. v. BabyBus (Fujian) Network Technology Co., Ltd, et al. (Moonbug Entertainment Limited, et al. v. BabyBus (Fujian) Network Technology Co., Ltd, et al.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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