Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_15-cv-06341/USCOURTS-cand-4_15-cv-06341-0/pdf.json

Nature of Suit Code: 820
Nature of Suit: Copyright
Cause of Action: 17:101 Copyright Infringement

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[PROPOSED] ORDER

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SUSAN D. FAHRINGER, Bar No. 162978

SFahringer@perkinscoie.com

RYAN SPEAR (Pro Hac Vice)

RSpear@perkinscoie.com

PERKINS COIE LLP

1201 Third Avenue, Suite 4900

Seattle, WA 98101-3099

Telephone: 206.359.8000

Facsimile: 206.359.9000

SUNITA BALI, Bar No. 274108

SBali@perkinscoie.com

PERKINS COIE LLP

505 Howard Street, Suite 1000

San Francisco, CA 94105

Telephone: 415.344.7000

Facsimile: 415.344.7050

Attorneys for Plaintiffs Digital Content Protection, LLC

and Warner Bros. Entertainment Inc.

OTTO O. LEE, Bar No. 173987

olee@iplg.com

KEVIN VIAU, Bar No. 275556

kviau@iplg.com

BONNIE J. WOLF, Bar No. 284872

bonniewolf@iplg.com

INTELLECTUAL PROPERTY LAW GROUP LLP

12 South First Street, 12th Floor

San Jose, California 95113

Telephone: (408) 286-8933

Facsimile: (408) 286-8932

Attorneys for Defendant Ace Deal Inc.

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

DIGITAL CONTENT PROTECTION, LLC, and 

WARNER BROS. ENTERTAINMENT INC., 

 Plaintiffs,

 v.

ACE DEAL INC., 

 Defendant.

Case No.: 4:15-cv-6341-DMR

STIPULATION AND [PROPOSED] 

ORDER ENTERING FINAL JUDGMENT

AND PERMANENT INJUNCTION

Case 4:15-cv-06341-DMR Document 36 Filed 06/01/16 Page 1 of 11
[PROPOSED] ORDER

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STIPULATION

Plaintiffs Digital Content Protection, LLC (“DCP”) and Warner Bros. Entertainment Inc. 

(“Warner Bros.”) (collectively, “plaintiffs”), along with defendant Ace Deal Inc. (“Ace Deal”) 

(together with plaintiffs, the “parties”) have agreed to a settlement of their dispute. Accordingly, the 

parties jointly stipulate and agree to be bound as follows:

1. This Court has jurisdiction over the parties and the subject matter of this action, and 

venue is proper in this Court. Ace Deal consents to the jurisdiction of this Court for the purpose of 

entry of the Final Judgment and Permanent Injunction, attached as Exhibit A.

2. High-Bandwidth Digital Content Protection (“HDCP”) is a technological measure that 

effectively controls access to copyrighted works and protects the rights of copyright owners, as 

contemplated by the Digital Millennium Copyright Act (“DMCA”). 

3. HDCP encrypts content as it travels from a wide variety of digital devices, including 

set-top boxes, Digital Versatile Discs (“DVDs”) and Blu-ray players, computers, Digital Video 

Recorders (“DVRs”) and game consoles, to digital display devices, such as high-definition 

televisions (“HDTVs”) (collectively, “Digital Devices”).

4. Many copyright owners, including plaintiff Warner Bros., require that Digital Devices 

be protected with HDCP in order to display their copyrighted content, including premium 

commercial entertainment content that is displayed on Digital Devices such as high-value digital 

motion pictures, television programs, and video games (“Digital Content”). 

5. In the ordinary course of its operation, HDCP requires the application of information, 

or a process or a treatment, with the authority of the copyright owner, to gain access to a copyrighted 

work. HDCP is therefore a technological measure that effectively controls access to works protected 

by the Copyright Act as set forth in the DMCA. See 17 U.S.C. § 1201(a)(3)(B). 

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[PROPOSED] ORDER

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6. In the ordinary course of its operation, HDCP prevents, restricts, or otherwise limits 

the ability to copy or otherwise use copyrighted works without the authority of the copyright owners. 

HDCP is therefore a technological measure that effectively protects Digital Content and the rights of 

copyright owners therein by preventing end users from engaging in the unauthorized reproduction, 

adaptation, public performance, or distribution of Digital Content or portions thereof, as set forth in 

the DMCA. See 17 U.S.C. § 1201(b)(2)(B). 

7. Plaintiff DCP is the owner of all rights in HDCP. 

8. Plaintiff Warner Bros. owns or controls copyrights in many of the most successful and 

critically acclaimed movies and recorded television programs released in the United States. 

Warner Bros. has the right to require the use of HDCP to control access to and to protect its rights in 

copyrighted Digital Content. 

9. Defendant Ace Deal is a corporation organized and existing under the laws of 

California, and having its principal place of business at 1172 Murphy Avenue, Suite 237, San Jose, 

California 95131. 

10. Ace Deal has imported, offered to the public, provided and otherwise trafficked in 

devices marketed under the “Panlong” brand name that are designed to circumvent HDCP and to 

eliminate HDCP’s access controls and protections. Those devices are identified in the table below 

and referred to collectively in this Order as the “Panlong Devices.”

PANLONG DEVICES

# Device Name Model Number

1. HDMI 2.0 Splitter with HDCP 2.2 PL0102SP-2.0 

2. Panlong HDMI 2.0 Splitter 4-Port with HDCP 2.2 PL0104SP-2.0 

3. 3-Port HDMI 2.0 Switch PL0301SW-2.0 

4. 5-Port HDMI 2.0 Switch PL0501SW-2.0 

5. HDMI Extender PL-373HE 

6. Receiver for HDMI Extender PL-373RX 

7. HDMI to HDMI Optical Audio Extractor DC-1114971067 

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[PROPOSED] ORDER

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8. HDMI Audio Extractor Converter DC-1115873488 

9. HDMI Matrix Switch DC-PLM922E 

10. UHD v1.3 1080P HDMI Splitter PL-HDV-312 

11. HDMI Extender PL-372A 

12. Premium HDMI Splitter v1.3 4 Port PL-814 

13. UHD v1.4 4K HDMI Splitter PL-912 

14. Premium HDMI Splitter v1.4 4 Port PL-914 

15. 3 Port 4K UHD HDMI Switch PL-SW431A 

11. Ace Deal stipulates that it sold 2,078 Panlong Devices. 

12. In common parlance, the Panlong Devices are “strippers.” Inserted between an HDCPcompliant source device and a non-HDCP-compliant sink device, a Panlong Device will remove (or 

“strip”) HDCP encryption from copyrighted Digital Content as it is transmitted from the source 

device to the sink device. As a result, the copyrighted Digital Content is rendered “in the clear,” 

making it vulnerable to unauthorized access, copying, and redistribution, and enabling Panlong 

Device users to access, copy, and distribute copyrighted Digital Content without the authority of the 

copyright owner. 

13. Ace Deal’s actions with respect to the Panlong Devices render Digital Content 

vulnerable to unauthorized access, copying, and distribution, harm Warner Bros. by rendering its 

Digital Content vulnerable to unauthorized access, copying, and distribution, and impair the 

effectiveness of HDCP, jeopardizing DCP’s licensing revenues.

14. The Panlong Devices are primarily designed or produced for the purpose of 

circumventing HDCP, see 17 U.S.C. §§ 1201(a)(2)(A), 1201(b)(1)(A); have only limited 

commercially significant purpose or use other than to circumvent HDCP, see id. §§ 1201(a)(2)(B), 

1201(b)(1)(B); and have been marketed by Ace Deal or others acting in concert with Ace Deal with 

Ace Deal’s knowledge for use in circumventing HDCP, see id. §§ 1201(a)(2)(C), 1201(b)(1)(C). 

The Panlong Devices descramble a scrambled work, decrypt an encrypted work, or otherwise avoid, 

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[PROPOSED] ORDER

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bypass, circumvent, remove, deactivate, or impair HDCP, without the authority of copyright owners. 

See id. §§ 1201(a)(3)(A), 1201(b)(2)(A).

15. By trafficking in the Panlong Devices, Ace Deal has violated plaintiffs’ rights under 

the DMCA. See id. §§ 1201(a)(2), 1201(b)(1).

16. In addition, Ace Deal has published statements and information, on its website and 

elsewhere, implying that Ace Deal and the Panlong Devices are associated with or otherwise 

authorized or approved by plaintiffs, and that the Panlong Devices comply with HDCP encryption 

technology or are otherwise consistent with the terms of an HDCP license. 

17. By publishing these statements, Ace Deal has violated plaintiffs’ rights under the 

Lanham Act. See 15 U.S.C. § 1125(a)(1).

18. Plaintiffs are therefore entitled to the relief set forth in the Final Judgment and 

Permanent Injunction, which is attached as Exhibit A.

19. The parties jointly request that this Court enter the Final Judgment and Permanent 

Injunction as a final judgment in this matter.

IT IS SO STIPULATED AND AGREED.

Dated: May 25, 2016 PERKINS COIE LLP

By: /s/ Ryan Spear

Susan D. Fahringer

Ryan Spear

1201 Third Avenue, Suite 4900

Seattle, WA 98101

Telephone: 206.359.8000

Sunita Bali

505 Howard Street, Suite 1000

San Francisco, CA 94105

Telephone: 415.344.7000

Attorneys for Plaintiffs Digital Content 

Protection, LLC and Warner Bros. Entertainment 

Inc.

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[PROPOSED] ORDER

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Dated: May 25, 2016 INTELLECTUAL PROPERTY LAW GROUP LLP

By: /s/ Bonnie J. Wolf

Otto O. Lee

Kevin Viau

Bonnie J. Wolf

12 South First Street, 12th Floor

San Jose, California 95113

Telephone: (408) 286-8933

Facsimile: (408) 286-8932

Attorneys for Defendant Ace Deal Inc. 

Pursuant to Local Rule 5-1(i)(3), filing counsel attests that all other signatories listed, on 

whose behalf the filing is submitted, concur in the content and have authorized the filing.

[PROPOSED] ORDER ENTERING

FINAL JUDGMENT AND PERMANENT INJUNCTION

Based on the parties’ stipulation, and good cause being shown, IT IS SO ORDERED. 

The Clerk of the Court is directed to enter the Final Judgment and Permanent Injunction, attached as 

Exhibit A, as the Court’s final judgment in this matter. All other existing dates and deadlines in this 

matter are hereby vacated.

Dated: ________________________ ________________________ 

 Hon. Donna M. Ryu

United States Magistrate Judge

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[PROPOSED] ORDER

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Exhibit A

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[PROPOSED] ORDER

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UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

DIGITAL CONTENT PROTECTION, LLC, and 

WARNER BROS. ENTERTAINMENT INC., 

 Plaintiffs,

 v.

ACE DEAL INC., 

 Defendant.

Case No.: 4:15-cv-6341-DMR

FINAL JUDGMENT AND 

PERMANENT INJUNCTION

Based on the parties’ stipulation, and good cause being shown, IT IS HEREBY ORDERED 

AND ADJUDGED:

1. FINAL JUDGMENT is entered against defendant Ace Deal, Inc. (“Ace Deal”) on 

Count I of plaintiffs’ complaint (Dkt. 1), “Violation of the Digital Millennium Copyright Act, 

17 U.S.C. § 1201(a)(2) and § 1201(b)(1).” 

2. FINAL JUDGMENT is entered against defendant Ace Deal on Count II of plaintiffs’ 

complaint (Dkt. 1), “Violation of the Lanham Act, 15 U.S.C. § 1125(a)(1).”

3. Plaintiffs shall recover $5,250,000 in monetary damages from defendant Ace Deal.

4. Ace Deal and its officers, agents, servants, employees, attorneys, receivers, trustees, 

successors, and assigns, along with any persons involved in the operation of the website

acepanlong.com (or any other website through which Ace Deal offers its products), and any other 

persons or entities acting in active concert or participation with any of the foregoing persons or 

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entities who receive actual notice of this Final Judgment and Permanent Injunction, shall be, and 

hereby are, immediately and permanently enjoined and restrained from:

a. Importing, manufacturing, offering to the public, providing, selling, using, or 

otherwise trafficking in the devices identified in the table below, which are referred to collectively in 

this Final Judgment and Permanent Injunction as the “Panlong Devices”:

PANLONG DEVICES

# Device Name Model Number

1. HDMI 2.0 Splitter with HDCP 2.2 PL0102SP-2.0 

2. Panlong HDMI 2.0 Splitter 4-Port with HDCP 2.2 PL0104SP-2.0 

3. 3-Port HDMI 2.0 Switch PL0301SW-2.0 

4. 5-Port HDMI 2.0 Switch PL0501SW-2.0 

5. HDMI Extender PL-373HE 

6. Receiver for HDMI Extender PL-373RX 

7. HDMI to HDMI Optical Audio Extractor DC-1114971067 

8. HDMI Audio Extractor Converter DC-1115873488 

9. HDMI Matrix Switch DC-PLM922E 

10. UHD v1.3 1080P HDMI Splitter PL-HDV-312 

11. HDMI Extender PL-372A 

12. Premium HDMI Splitter v1.3 4 Port PL-814 

13. UHD v1.4 4K HDMI Splitter PL-912 

14. Premium HDMI Splitter v1.4 4 Port PL-914 

15. 3 Port 4K UHD HDMI Switch PL-SW431A 

b. Importing, manufacturing, offering to the public, providing, selling, using, or 

otherwise trafficking in any technology, product, service, device, component or part thereof that is 

primarily designed or produced to circumvent HDCP, or has only limited commercially significant 

purpose or use other than to circumvent HDCP, or is or has been marketed for use in circumventing 

HDCP (“Product”);

c. Importing, manufacturing, offering to the public, providing, selling, using or otherwise 

trafficking in any Product that enables, contributes to, or induces the unauthorized use, distribution, 

or copying of copyrighted works owned by Warner Bros.; and

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d. Inducing, enabling, supporting, or otherwise assisting any other person or entity to 

engage in the activities described in Paragraphs 4(a)-(c).

5. In addition, Ace Deal and all persons or entities in active concert or participation with 

Ace Deal must:

a. Cease advertising, promoting, or otherwise publishing any statements conveying or 

suggesting that Ace Deal and its activities are associated with, approved by, or authorized by DCP or 

it licensees;

b. Identify (by product name, quantity, and supplier) all of the following items in 

Ace Deal’s custody, possession or control:

i. Panlong Devices; and

ii. Products that are primarily designed or produced to circumvent HDCP, or have 

only limited commercially significant purpose or use other than to circumvent HDCP, or are or have 

been marketed for use in circumventing HDCP; 

c. Deliver up to DCP all items identified under Paragraph 5(b).

6. Nothing in this Final Judgment and Permanent Injunction precludes DCP or Warner 

Bros. from asserting any claims or rights that arise solely after Ace Deal’s stipulation to this Final 

Judgment and Permanent Injunction or that are based upon any violation of this Final Judgment and 

Permanent Injunction or any breach of a provision, representation, or warranty of the parties’ 

settlement agreement. 

7. Nothing in this Final Judgment and Permanent Injunction precludes DCP or Warner 

Bros. from asserting any claims or rights against any non-party to this lawsuit.

8. This Final Judgment and Permanent Injunction is final and may not be appealed by 

any party.

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[PROPOSED] ORDER

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9. Ace Deal waives all objections under Federal Rule of Civil Procedure 65(d) 

(pertaining to injunctions) with respect to this Final Judgment and Permanent Injunction.

10. This Court shall retain jurisdiction to enforce this Final Judgment and Permanent 

Injunction and the parties’ settlement agreement.

11. Each party shall bear its own attorneys’ fees and costs.

IT IS SO ORDERED.

Dated: ________________________ __________________________ 

 Hon. Donna M. Ryu

United States Magistrate Judge

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