Unreported / Non-Citable
Background
Strike 3 Holdings, LLC owns copyrights in adult-content videos. Its infringement-detection system identified 56 digital media files being distributed through the BitTorrent network from IP address 47.186.204.229. Strike 3 alleged that the downloaded files were identical or strikingly similar to its copyrighted works and that it had not authorized their reproduction or distribution.
After obtaining subscriber information from the internet service provider, Strike 3 identified Nigel Hiley as the subscriber assigned to the IP address. Hiley was served but did not answer or otherwise appear for nearly three years. The clerk entered default, and Strike 3 moved for default judgment, requesting statutory damages, a permanent injunction, and destruction of the infringing copies.
The Court’s Holding
The court granted default judgment. It concluded that judgment was procedurally warranted because Hiley had been properly served, the grounds for default were established, and the record did not suggest excusable neglect or another reason to set the default aside. By defaulting, Hiley admitted Strike 3’s well-pleaded factual allegations, though not its allegations concerning damages.
The court held that Strike 3 sufficiently established ownership of valid copyrights in the 56 works and unauthorized copying and distribution in violation of 17 U.S.C. § 106. It awarded the statutory minimum of $750 per work, totaling $42,000, imposed a permanent injunction against further unauthorized downloading, copying, or distribution, and ordered Hiley to permanently delete and destroy all infringing copies from his computers.
Key Takeaways
- A default admits well-pleaded facts establishing liability, but it does not automatically establish the amount of damages.
- The court awarded minimum statutory damages of $750 for each of 56 infringed works, for a total of $42,000.
- The judgment also permanently enjoins further infringement and requires destruction of all unauthorized copies of Strike 3’s works.
Why It Matters
The decision illustrates how a copyright owner can obtain default relief in a BitTorrent infringement case when the defendant fails to appear after proper service. Even without an evidentiary hearing, the court may award statutory damages capable of mathematical calculation and grant equitable relief supported by the admitted allegations and record.
The order also shows that monetary relief may be paired with an injunction and destruction requirement to address the continuing risk that unauthorized digital copies will be redistributed.