Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_12-cv-00525/USCOURTS-azd-2_12-cv-00525-0/pdf.json

Nature of Suit Code: 890
Nature of Suit: Other Statutory Actions
Cause of Action: 47:0605 Communications Act of 1934

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

J & J Sports Productions Inc., 

Plaintiff, 

vs.

Luis Alberto Guzman; Mariscos Culiacan

LLC, 

Defendants. 

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CV 12-00525-PHX-FJM

ORDER

We have before us plaintiff's motion for default judgment (doc. 15). When

considering a motion for default judgment we take a complaint's well-pled allegations

regarding liability as true. Fair Hous. of Marin v. Combs, 285 F.3d 899, 906 (9th Cir. 2002).

Plaintiff possessed the exclusive commercial distribution rights to "'The Event': The

Manny Pacquiao v. Joshua Clottey WBO Welterweight Championship," which was televised

on March 13, 2010 ("the Program"). Defendants own Mariscos Culiacan, a Phoenix

restaurant that can hold approximately 75 people. On March 13, 2010, defendants displayed

the Program on four television sets located throughout the building. There was no cover

charge to enter, and the Program was not advertised. Three separate head counts confirmed

that 45, 54, and 59 patrons were inside. Default was recently entered against Luis Guzman

in another action involving commercial piracy of the Program. Riley Supplemental Decl.

(doc. 15-4).

Case 2:12-cv-00525-FJM Document 16 Filed 07/31/12 Page 1 of 3
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 Because defendants defaulted, plaintiff cannot determine what type of signal

transmission was used, and asks for recovery under 47 U.S.C. § 605.

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Plaintiff seeks relief under three counts: (1) violation of 47 U.S.C. § 605; (2) violation

of 47 U.S.C. § 553; and (3) conversion (doc. 1). The Clerk entered default against both

defendants on July 2, 2012 (doc. 14). Defendants have not moved to set aside default, and

have not otherwise appeared.

To recover under 47 U.S.C. § 605, plaintiff must show that (1) defendants intercepted

and (2) "divulged or published. . . a communication transmitted by" plaintiff. Nat'l

Subscription Television v. S & H TV, 644 F.2d 820, 826 (9th Cir. 1981). A successful

plaintiff can recover statutory damages of at least $1,000 and at most $10,000. 47 U.S.C. §

605(e)(3)(C)(i)(II). These damages may be increased by up to $100,000 if a communication

was intercepted and published "willfully and for purposes of direct or indirect commercial

advantage or private financial gain." Id. § 605(e)(3)(C)(ii). Courts consider numerous

factors when assessing whether enhanced damages are appropriate, including "prior

infringements, substantial unlawful monetary gains, significant actual damages to the

plaintiff, the defendant's advertising of the broadcast, and the defendant's charging a cover

charge or premiums for food and drinks during the broadcast." Kingvision Pay-Per-View,

Ltd. v. Guzman, CV-07-0963-PHX-PGR, 2008 WL 1924988, at *3 (D. Ariz. Apr. 30, 2008).

The need for deterrence is balanced against the harm to the defendant's business if significant

damages are assessed. See Kingvision Pay-Per-View Ltd. v. Lake Alice Bar, 168 F.3d 347,

350 (9th Cir. 1999).

Because defendants defaulted, they admit that they published the Program to their

customers without a license, and did so "willfully and for purposes of direct and/or indirect

commercial advantage and/or private financial gain." Compl. ¶ 20.1

 Keeping in mind the

goal of deterring piracy, we conclude that a statutory damages award of $10,000 is

appropriate.

An enhanced damages award of $100,000, however, is unwarranted. Plaintiff has not

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presented evidence that it incurred significant damages. Defendants did not collect a cover

charge, and there is no evidence that defendants charged a premium for food or drinks, or

advertised the Program. The Program was displayed on multiple televisions to at most 59

people. Plaintiff argues that Luis Guzman is a repeat offender because he recently defaulted

in a commercial piracy action concerning another Mariscos Culiacan restaurant. The other

action, however, also alleges an interception of the Program on March 13, 2010. See Compl.,

J & J Sports Prods. Inc. v. Guzman, CV-12-00527-PHX-SRB (doc. 1). Because both actions

allege an illegal interception of the same Program on the same night, the evidence is

insufficient to classify Guzman as a true repeat offender. It could be that his March 13, 2010

interception of the Program, albeit in two locations, was his first. Nevertheless, we recognize

that a substantial damages award may aid in deterring future violations by these defendants.

We conclude that under the facts of this case, an enhanced damages award of $7,500 is

reasonable. The total damages award of $17,500 will both compensate plaintiff and act as

a deterrent against future violations.

Plaintiff requests an award of $1,800 on its conversion claim. However, it presents

no argument or evidence to support this request. Accordingly, we will not award additional

damages.

Finally, plaintiff requests an award of its costs and attorneys' fees. Plaintiff may file

a bill of costs in accordance with LRCiv 54.1 and Rule 54(d)(1), Fed. R. Civ. P., and a

motion for attorneys' fees pursuant to Rule 54(d)(2), Fed. R. Civ. P.

IT IS ORDERED GRANTING plaintiff's motion for default judgment (doc. 15).

The Clerk shall enter judgment in favor of plaintiff and against defendants in the amount of

$17,500.

DATED this 30th day of July, 2012.

Case 2:12-cv-00525-FJM Document 16 Filed 07/31/12 Page 3 of 3