Olusola v. Don Coqui Holding Company, LLC

CourtDistrict Court, E.D. New York
DecidedFebruary 18, 2021
Docket1:19-cv-06909
StatusUnknown

This text of Olusola v. Don Coqui Holding Company, LLC (Olusola v. Don Coqui Holding Company, LLC) 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
Olusola v. Don Coqui Holding Company, LLC, (E.D.N.Y. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK --------------------------------------------------------------- SOLWAZI OLUSOLA,

Plaintiff, MEMORANDUM & ORDER 19-CV-6909 (MKB) (JO) v.

DON COQUI HOLDING COMPANY, LLC,

Defendant. --------------------------------------------------------------- MARGO K. BRODIE, United States District Judge: Plaintiff Solwazi Olusola commenced the above-captioned action on December 10, 2019, against Defendant Don Coqui Holding Company, LLC, alleging copyright infringement pursuant to 17 U.S.C. § 501 (the “Copyright Act”), and the removal and/or alteration of copyright management information (“CMI”) in violation of 17 U.S.C. § 1202(b) of the Digital Millennium Copyright Act (the “DMCA”). (Compl. ¶¶ 1, 12–13, Docket Entry No. 1.) Plaintiff alleges that Defendant published a photograph (the “Photograph”) to which Plaintiff holds the copyright on Defendant’s Instagram account. (Id.) Plaintiff served Defendant with the Summons on December 13, 2019. (Aff. of Service, Docket Entry No. 6.) Defendant failed to answer the Summons or otherwise appear in this action and on January 29, 2020, the Clerk of Court noted Defendant’s default. (Clerk’s Entry of Default, Docket Entry No. 8.) Plaintiff subsequently moved for a default judgment.1 On April 6, 2020, the Court referred Plaintiff’s motion to

1 (Pl.’s Mot. for Default J. (“Pl.’s Mot.”), Docket Entry No. 9; Decl. of Richard Liebowitz in Supp. of Pl.’s Mot. (“Liebowitz Decl.”), Docket Entry No. 10; Statement of Damages, Docket Entry No. 11; Proposed Order, Docket Entry 12; Pl.’s Mem. in Supp. of Pl.’s Mot. (“Pl.’s Mem.”), Docket Entry No. 17; Decl. of Solwazi Olusola in Supp. Pl.’s Mot. (“Olusola Decl.”), Docket Entry No. 18.) Magistrate Judge James Orenstein for a report and recommendation. (Order dated April 6, 2020.) By report and recommendation dated October 8, 2020, Judge Orenstein recommended that the Court grant Plaintiff’s motion for entry of a default judgment and that Plaintiff be awarded $875, consisting of $175 in actual damages, no additional statutory damages, $300 in

attorneys’ fees, and $400 in costs (the “R&R”). (R&R 1, Docket Entry No. 22.) On October 22, 2020, Plaintiff timely filed partial objections to the R&R. (Pl.’s Obj. to R&R (“Pl.’s Obj.”), Docket Entry No. 24.) For the reasons set forth below, the Court grants Plaintiff’s motion for a default judgment and adopts the R&R except with respect to the issues of statutory damages under the DMCA and the reasonable hourly rate for Plaintiff’s counsel. I. Background The Court assumes familiarity with the underlying facts as detailed in the R&R and provides only a summary of the procedural history and pertinent facts. a. Procedural history

On December 10, 2019, Plaintiff commenced this action against Defendant, alleging violations under section 501 of the Copyright Act and section 1202(b) of the DMCA. (Compl.) After Defendant failed to answer or otherwise respond to the Complaint, Plaintiff requested a certificate of default. (Pl.’s Request for Certificate of Default, Docket Entry No. 7.) On January 29, 2020, the Clerk of Court made an entry of default against Defendant. (Clerk’s Entry of Default.) On April 3, 2020, Plaintiff moved for a default judgment. (Pl.’s Mot.; Pl.’s Mem.) By Order dated April 6, 2020, the Court referred Plaintiff’s motion to Judge Orenstein for a report and recommendation. (Order dated Apr. 6, 2020.) Judge Orenstein held a hearing regarding Plaintiff’s motion for a default judgment, during which he noted that Plaintiff had failed to serve his motion on Defendant, in violation of Local Civil Rule 55.2(c); failed to submit a memorandum in support of the motion, in violation of Local Civil Rule 7.1; and failed to submit any evidence of actual damages in support of the claim for actual damages. (Min. Entry dated June 17, 2020, Docket Entry No. 16.) Judge Orenstein provided Plaintiff an opportunity to cure

these defects and Plaintiff subsequently filed a memorandum in support of default judgment, (Pl.’s Mem.), and a declaration concerning actual damages suffered as a result of Defendant’s unauthorized use of the Photograph, (Olusola Decl. ¶¶ 6–7). b. Report and recommendation Judge Orenstein recommended that the Court grant Plaintiff’s motion for a default judgment for violations under the Copyright Act and the DMCA. (R&R 14.) i. Claims under the Copyright Act and the DMCA Judge Orenstein found that Plaintiff successfully alleged Defendant’s violation of the Copyright Act by showing: (1) “[Plaintiff] owns a valid copyright and that copied elements of

the work were original”; (2) registration occurred within five years of the Photograph’s first publication; and (3) Defendant was not authorized to use or publish the Photograph. (R&R 2–4.) He noted that Defendant’s default admits these allegations, establishing its liability under the Copyright Act. (Id. at 4.) However, Judge Orenstein determined that Plaintiff was not entitled to statutory damages pursuant to section 412 of the Copyright Act because he failed to timely register the Photograph. (Id. at 6–7 (first citing 17 U.S.C. § 412; and then citing Public Catalog, United States Copyright Office, http://cocatalog.loc.gov).) Judge Orenstein further found that Plaintiff had not satisfied his burden to support his claim that he suffered “$3,000 in actual damages consisting of $1,500 in lost licensing fees and $1,500 in undue profits,” reasoning instead that Plaintiff was entitled to an award of $175 for lost licensing fees and no additional amount for Defendant’s “ill-gotten gains.” (Id. at 6–8.) In addressing the DMCA claim, Judge Orenstein determined that Plaintiff had sufficiently alleged violation of the DMCA by demonstrating that Defendant: (1) copied the Photograph; (2) knowingly removed the CMI by cropping out Plaintiff’s watermark before

publishing the Photograph on its Instagram account; and (3) made such alterations “intentionally, knowingly and with the intent to induce, enable, facilitate, or conceal their infringement.” (Id. at 4–5 (quoting Compl. ¶¶ 25–26).) He found that Defendant’s default admits these allegations, establishing its liability under the Copyright Act. (Id. at 4.) Notwithstanding Defendant’s liability, Judge Orenstein recommended against granting statutory damages under the DMCA because Plaintiff failed to establish a harm distinct from the loss of a license fee — the basis for damages under the Copyright Act –– and “recommend[ed] that the [C]ourt not simply assume that such additional harms exist.” (Id. at 8–10 (citing Reilly v. Commerce, No. 15-CV-5118, 2016 WL 6837895, at *8 (S.D.N.Y. Oct. 31, 2016) (“So long as

the [c]ourt properly distinguishes among these injuries when it sets the amount of the award under [the Copyright Act and the DMCA], no duplication will occur.”), report and recommendation adopted, (S.D.N.Y. Nov. 21, 2016)).) ii. Attorneys’ fees and costs After a review of the “the prevailing rate awarded by courts in this district to attorneys with [Plaintiff’s counsel’s] experience,” (see R&R 12), Judge Orenstein recommended against granting the requested $2,250 in attorneys’ fees (id. at 11). Instead, Judge Orenstein determined that the hourly rate of $425 requested by Plaintiff’s counsel, Richard Liebowitz, far exceeded “what a ‘reasonable, paying client’ would be willing to pay for the representation [Liebowitz] provides,” and recommended the Court award fees on the basis of a $100 hourly rate. (Id.

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Bluebook (online)
Olusola v. Don Coqui Holding Company, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/olusola-v-don-coqui-holding-company-llc-nyed-2021.