Opinion
21-cv-02485-NC
03-31-2022
STRIKE 3 HOLDINGS, LLC, Plaintiff, v. SOON JIN LIM, Defendant.
REQUEST FOR REASSIGNMENT; REPORT & RECOMMENDATION TO GRANT PLAINTIFF'S MOTION FOR DEFAULT JUDGMENT RE: ECF 25
NATHANAEL M. COUSINS United States Magistrate Judge
Plaintiff Strike 3 Holdings, LLC filed a complaint against Defendant Soon Jin Lim for copyright infringement. ECF 1. After discovering Lim's identity, serving him with the complaint, and securing an entry of default against him, Strike 3 now moves for default judgment. ECF 25. Although Strike 3 has consented to the jurisdiction of a magistrate judge, at ECF 7, because Lim has not consented, the Court requests that this case be reassigned to a District Judge with the recommendation that Strike 3's motion be granted.
I. BACKGROUND
On April 6, 2021, Strike 3 filed a complaint against Lim, then identified as John Doe subscriber assigned IP address 108.89.35.88, for copyright infringement. ECF 1. Strike 3 alleges that the infringer used BitTorrent-a system designed to quickly distribute large files over the internet-to download, copy, and distribute twenty five motion pictures (Works) owned by Strike 3, thereby infringing Strike 3's copyright. Id. Through its infringement detection system, VXN Scan, Strike 3 identified the BitTorrent file distribution network used to download its Works and the associated IP address of the infringer. Id. Because IP addresses are not publicly tied to individuals' identities, the Court granted Strike 3's request for leave to serve a third-party subpoena on the internet service provider of the IP address to discover the infringer's identity. ECF 8; ECF 9. On May 25, 2021, the internet service provider responded to the subpoena identifying Lim, but because it wanted to ensure that it identified the appropriate defendant, Strike 3 requested additional time to effectuate service. ECF 10. The Court granted this request. ECF 11.
On July 22, 2021, Strike 3 filed an amended complaint identifying Lim as the alleged infringer. ECF 12. Because of the nature of the allegations against him, the Court granted Strike 3's motion to redact Lim's name from the pleading until he had an opportunity to answer. ECF 13; ECF 14. Strike 3 personally served Lim with the complaint on August 10, 2021, giving him until August 31 to answer. ECF 19. When he did not respond or otherwise defend against Strike 3's claims, Strike 3 requested an entry of default against Lim. ECF 22; ECF 23. On February 9, 2022, Strike 3 filed the instant motion for default judgement against Lim. ECF 25. The Court held a hearing on March 30, 2022. ECF 27. To the best of the Court's knowledge, Lim did not attend the hearing.
II. LEGAL STANDARD
“The district court's decision whether to enter default judgment is a discretionary one.” Aldabe v. Aldabe, 616 F.2d 1089, 1092 (9th Cir. 1980). In making its determination a court should consider: “(1) the possibility of prejudice to the plaintiff; (2) the merits of plaintiff's substantive claim; (3) the sufficiency of the complaint; (4) the sum of money at stake in the action; (5) the possibility of dispute concerning material facts; (6) whether default was due to excusable neglect; and (7) the strong policy underlying the Federal Rules of Civil Procedure favoring decisions on the merits.” Eitel v. McCool, 782 F.2d 1470, 1471-72 (9th Cir. 1986). Upon default, “the factual allegations of the complaint, except those relating to the amount of damages, will be taken as true.” TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915, 917-18 (9th Cir. 1987).
III. DISCUSSION
Strike 3 moves for default judgment based on Lim's failure to respond to this action. Strike 3 requests that the Court order Lim to pay $18,750.00 in statutory damages and $766.25 in costs, including post-judgment interest. ECF 25-1 at 21-22. Strike 3 also asks that the Court enjoin Lim from directly, contributorily, or indirectly infringing on its rights under the Copyright Act, 17 U.S.C. § 501 et seq., including by using the internet, BitTorrent, or any other online media distribution system to reproduce and/or distribute Strike 3's Works without a license. Id. at 18-20. Finally, Strike 3 asks that the Court order Lim to destroy all copies of Strike 3's Works, identified in ECF 12-1, on any physical medium or device in his possession, custody, or control. Id.
After weighing the Eitel factors, the Court recommends entry of default judgment. First, Strike 3 has alleged a meritorious claim. Strike 3's claim for copyright infringement is asserted under 17 U.S.C. § 101 et seq. ECF 12 ¶ 61. To prove copyright infringement, Strike 3 must establish: (1) that it owns of a valid copyright and (2) that Lim copied consistent elements of the work that are original. Feist Publ'ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991). “In addition, direct infringement requires the plaintiff to show causation (also referred to as ‘volitional conduct') by the defendant.” Perfect 10, Inc. v. Giganews, Inc., 847 F.3d 657, 666 (9th Cir. 2017) (internal citations omitted). Strike 3 has shown that it owns valid copyrights for each of the twenty five Works. ECF 12-1. It has also shown that Lim used BitTorrent to download, reproduce, and distribute the Works. ECF 12 ¶¶ 17-44. And, it has sufficiently shown that Lim caused the infringement because it was he who downloaded and distributed the Works. Id.; see Perfect 10, 847 F.3d at 666.
Second, Strike 3 will be prejudiced if default judgment is not entered because Lim has benefitted from “numerous and prolonged” use of the Works without compensating Strike 3. ECF 25-1 at 9. Third, the amended complaint is well-pled and sufficient to state the claims alleged. See ECF 12. Fourth, the sum of money at stake is reasonable because Strike 3 only seeks the minimum damages available under the Copyright Act-$750-for each allegation of infringement, and Strike 3 does not seek attorneys' fees. See ECF 25-1 at 21-22. Finally, given the efforts to identify and serve Lim, it is not probable that his default was due to excusable neglect. See ECF 25-1 at 17-18. Because the Eitel factors, as applied, support entry of default judgment, the Court recommends that the District Judge grant Strike 3's motion.
IV. CONCLUSION
For the foregoing reasons, the Court REQUESTS that this case be reassigned to a District Judge with the RECOMMENDATION that Strike 3's motion for default judgment be granted ordering:
1. Lim to pay Strike 3 $18,750.00 in statutory damages and $766.25 in costs, including post-judgment interest,
2. Lim to cease directly, contributorily, or indirectly infringing on its rights under the Copyright Act, 17 U.S.C. § 501 et seq., including by using the internet, BitTorrent, or any other online media distribution system to reproduce and/or distribute Strike 3's Works without a license, and
3. Lim to destroy all copies of Strike 3's Works identified in ECF 12-1 on any physical medium or device in his possession, custody, or control.
Any party may object to the recommended disposition but must file a written objection with the District Judge within fourteen days of being served with this order. See Fed. R. Civ. P. 72(b)(2). Strike 3 is ORDERED to serve Lim with this order and file proof of service.
IT IS SO ORDERED.