The National Academy of Television Arts and Sciences v. Multimedia System Design

Background

The National Academy of Television Arts and Sciences, Inc. and the Academy of Television Arts & Sciences sued Multimedia System Design, Inc., doing business as “Crowdsource the Truth,” for alleged copyright and trademark violations involving the Emmy statuette and for defamation. The underlying lawsuit ended with a default judgment against Multimedia after its attorney was relieved and the company failed to hire another attorney.

This order addressed conduct by Jason Goodman, Multimedia’s sole shareholder and employee. In December 2020, Multimedia and the plaintiffs had agreed to a protective order, which prohibited people subject to the order from disclosing confidential discovery material except as the order allowed. After Multimedia’s attorney was relieved in August 2021, the plaintiffs reported that Goodman had disclosed a confidential email address in emails sent to multiple recipients.

Goodman initially stated that he did not know the email address was covered by the protective order and that any disclosure was inadvertent and unintentional. After written submissions, the court held an evidentiary hearing. Goodman testified that he was unsure whether he knew a protective order existed and said he believed his former attorney had told him that the email address was no longer confidential. He also acknowledged that the former attorney had told him he could not simply email the address.

Court’s analysis

The court explained that federal courts have inherent authority—their power to manage proceedings and enforce their orders—to sanction bad-faith conduct that violates a court order. Under the standard the court applied, sanctions required clear evidence that the conduct had no legal or factual basis and was motivated by an improper purpose.

The court found the protective order clear and unambiguous. It concluded that Goodman’s August 23, 2021 email showed that he knew the address was confidential because his statement that his attorney could not be sanctioned for using or disclosing it would make no sense if Goodman genuinely believed the address was no longer protected. The court found that Goodman’s disclosure was willful, had no legitimate purpose, and was intended to support his effort to show that D. George Sweigert was behind the confidential email address. The court therefore concluded that Goodman willfully violated the protective order and disregarded the court’s authority.

Ruling and sanction

The court ordered Goodman, until February 22, 2024, to file a copy of the order in every state or federal lawsuit in which he or any company in which he is a majority shareholder is a party. He must also notify the other courts and parties in those cases that a court determined he willfully violated a protective order. The requirement applies whether he or the company is represented by a lawyer or is acting without one.

The court required Goodman to file a certification under penalty of perjury by March 22, 2022, listing all cases in which he was engaged as of that date and confirming that the order had been filed in each case. It also required similar certifications on the order’s one-year anniversary and through 2024 for cases in which he had been engaged since the previous certification. The court warned that failing to comply would constitute contempt of court and would be punished accordingly.