Dassault Systemes, SA v. Childress
663 F.3d 832
| 6th Cir. | 2011Background
- Dassault sued Childress for copyright/trademark infringement, unfair competition, and Michigan Consumer Protection Act violations related to for-profit CATIA training.
- Dassault obtained a default judgment; Childress moved to set aside, and the court later entered damages and a permanent injunction.
- NASA? No—FBI raid in 2006 seized 20 computers allegedly containing bootleg CATIA copies; grand jury subpoenas sought related materials.
- Childress claimed he licensed CATIA through IBM/MSC arrangements and a workaround allowing use on multiple machines; Dassault argued he used bootleg copies.
- District court granted default judgment and later denied set aside motions; damages, attorney fees, and injunction followed.
- On appeal, the Sixth Circuit reversed on default-judgment procedures, vacated the damages and injunction, and remanded; affirmed the FBI-subpoena ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether district court abused Rule 55(c) by denying set aside | Dassault | Childress | Rule 55(c) standard applied; abuse of discretion found on merits. |
| Meritorious defenses and prejudice under United Coin Meter factors | Dassault | Childress showed potentially meritorious defenses (e.g., statute of limitations) and lack of substantial prejudice | Reversed denial; meritorious defense favored relief. |
| Whether FBI subpoena disclosure violated Rule 6(e) secrecy | Dassault | Disclosures were linked to grand jury and protected | Subpoena deemed permissible; not a violation. |
| Whether district court properly denied motion to strike grand jury material | Dassault | 6(e) limited; Dassault not bound | No abuse; materials not covered by 6(e) constraints. |
Key Cases Cited
- United Coin Meter Co. v. Seaboard Coastline Railroad, 705 F.2d 839 (6th Cir. 1983) (default judgment standards and setting aside judgments)
- Shepard Claims Serv., Inc. v. William Darrah & Assocs., 796 F.2d 190 (6th Cir. 1986) (willful or culpable conduct required for relief denial)
- O.J. Distrib., Inc. v. Hornell Brewing Co., 340 F.3d 345 (6th Cir. 2003) (stringent Rule 60(b) standard after judgment entered)
- Waifersong, Ltd. v. Classic Music Vending, 976 F.2d 290 (6th Cir. 1992) (delay and prejudice considerations in setting aside judgment)
- INVST Fin. Group, Inc. v. Chem-Nuclear Systems, Inc., 815 F.2d 391 (6th Cir. 1987) (factors for setting aside default and relevance to meritorious defenses)
- Berthelsen v. Kane, 907 F.2d 617 (6th Cir. 1990) (final-judgment standards and Rule 60(b) applicability)