J&J Sports Productions Inc. v. Vasquez

Background

J&J Sports Productions Inc. sued Ms. Vasquez and Defendant Restaurant, alleging violations of Sections 605 and 553 of Title 47 of the United States Code. The alleged violation involved unauthorized interception and display of a satellite broadcast of a boxing program. J&J sought damages only under Section 605.

J&J served the complaint on Ms. Vasquez on October 8, 2019, and on Defendant Restaurant on October 15, 2019. Neither defendant answered or otherwise appeared. On January 27, 2020, the clerk entered certificates of default. J&J moved for a default judgment on April 1, 2020.

Liability

Section 605(a) prohibits unauthorized interception or receipt of certain communications, including satellite communications. On a motion for default judgment, the court must determine whether the complaint and supporting evidence establish liability as a matter of law. The defendants’ default meant that well-pleaded allegations of liability were treated as admitted, but it did not establish the amount of damages.

J&J submitted affidavits and documents showing that it had the right to sublicense the program; that the program was encrypted and available only to sublicensees; that its investigator saw the program displayed on one television screen at Defendant Restaurant while 13 patrons were present; and that Defendant Restaurant advertised the showing. The court concluded that these materials established a violation of Section 605. It also found that the encrypted nature of the program and the restaurant’s advertising showed that the violation was willful and undertaken for direct or indirect commercial advantage or private financial gain.

Damages

The court awarded $1,800 in statutory damages. It explained that courts in the Second Circuit generally calculate such damages using either the fee the plaintiff would have charged for a sublicense or the amount viewers would have paid to watch the program at home. The sublicense fee here would have been $1,800, and the record did not show the at-home viewing rate. The court declined J&J’s request for a higher amount based on a multiplier of the license fee.

The court also awarded $5,000 in enhanced damages. Enhanced damages must compensate the plaintiff and deter further violations. The court considered the scale of the violation, including that 13 people were present and no entry fee was charged, and concluded that $5,000 provided adequate compensation and deterrence.

Costs and disposition

Section 605 allows a prevailing party to recover costs, including reasonable attorneys’ fees. The court granted J&J’s request for 30 days to submit a filing concerning those costs and directed J&J to serve the order on the defendants by June 22, 2020. The order awarded $1,800 in statutory damages and $5,000 in enhanced damages and granted the 30-day period for the costs submission.