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S.D.N.Y.Procedural orderFiled Apr. 26, 2023

Elohim EPF USA, Inc. v. 162 D & Y Corp.

Judge
P. Castel
Docket
1:19-cv-02431
Court
U.S. District Court · Southern District of New York
Pages
4
Intellectual PropertyCivil Procedure
In one sentence

Elohim EPF USA, Inc. v. 162 D & Y Corp.: Judge Castel granted default judgment on liability against three defendants but deferred damages, injunction, and fees.

Who this affects

Elohim EPF USA, Inc. obtained a liability judgment against Open Karaoke, Sweetie, and Global, while the court deferred damages, injunctive relief, and attorneys’ fees. The ruling did not resolve Elohim’s claims against the remaining 25 defendants.

What happened

In Elohim EPF USA, Inc. v. 162 D & Y Corp., Elohim sought a judgment against three businesses that did not continue defending the case. Elohim alleged that they publicly performed Korean musical compositions in their karaoke establishments without a license, violating Elohim’s copyrights.

The court found that Elohim had adequately alleged jurisdiction, venue, and copyright claims. Because the defendants were in default, the court treated the well-supported allegations as admitted and entered judgment against Open Karaoke, Sweetie, and Global on liability only.

Judge Castel postponed deciding damages, a permanent injunction, and attorneys’ fees until after Elohim’s claims against 25 other defendants were tried or otherwise resolved. The motion for default judgment was granted as to liability only.

The detailed version

For law students, journalists, and other readers who want the full reasoning

Case
Elohim EPF USA, Inc. v. 162 D & Y Corp. · No. 1:19-cv-02431
Judge
P. Castel
Date
Apr. 26, 2023

Background

Elohim moved for default judgment against Norae Hahnun Jib d/b/a Open Karaoke, Sweetie & VIP, Inc. d/b/a I Luv Luxury Room, and G S Global Corp. d/b/a Red. A default judgment is a judgment entered against a party that failed to defend the case. Open Karaoke and Sweetie did not answer or appear. Global initially appeared through counsel, but after its counsel withdrew, Global did not appear through new counsel. The Clerk issued certificates of default against all three defendants.

Elohim alleged claims for copyright infringement, contributory copyright infringement, vicarious copyright infringement, and inducing copyright infringement. It alleged that it was the exclusive subpublisher in the United States and Canada of certain Korean musical compositions and that those compositions had been registered with the United States Copyright Office. Elohim’s chairman and CEO stated that he personally performed karaoke at the three establishments on compositions for which Elohim held U.S. copyright registrations. Elohim alleged that the defendants made those compositions available for public performance without a license and continued doing so after receiving cease-and-desist letters and the complaint.

Court’s Analysis

The court concluded that Elohim adequately alleged personal jurisdiction over each defendant because each was alleged to operate a karaoke business in Queens. It also concluded that venue was adequately alleged and that subject-matter jurisdiction was properly invoked under the Copyright Act.

A default admits well-pleaded allegations against the defaulting party. Based on the allegations and supporting declaration, the court concluded that Elohim had demonstrated its entitlement to default judgment against Open Karaoke, Sweetie, and Global as to liability.

Damages and Other Relief

Elohim sought $2,400,000 in statutory damages from each defendant, based on $150,000 for each of sixteen registered compositions. The court deferred its decision on statutory damages, injunctive relief, and attorneys’ fees. It stated that the trial record and any damages awarded by a jury in Elohim’s claims against the remaining 25 defendants would assist in determining the appropriate damages and would provide a better basis for evaluating permanent injunctive relief.

Disposition

Judge P. Castel granted Elohim’s motion for default judgment against Open Karaoke, Sweetie, and Global as to liability only. The court deferred its ruling on damages, injunctive relief, and attorneys’ fees. Elohim may renew that application after its claims against the other 25 defendants have been tried or otherwise resolved. The Clerk was directed to terminate the motion.

The authoritative version

Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.

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