Dish Network, L.L.C. v. Magembe
4:23-cv-01136
N.D. Tex.Apr 26, 2024Background
- DISH Network and Sling TV sued John Gwaka Magembe for violating the Federal Communication Act (FCA) and Digital Millennium Copyright Act (DMCA).
- Defendant was properly served using alternative service, and default was entered after no response.
- Plaintiffs alleged Magembe trafficked in unauthorized streaming services (Beast TV/Channels4Cheap) via websites, selling access codes to pirated television content.
- Plaintiffs claimed the service circumvented security (DRM) protections and retransmitted content to users without authorization.
- Evidence showed over 12,000 sales of codes, with Defendant continuing activity after notice and litigation began.
- Plaintiffs requested statutory damages and a permanent injunction due to ongoing, willful violations.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held (Ruling) |
|---|---|---|---|
| Is default judgment procedurally warranted? | Default is proper as Defendant failed to respond despite proper service. | No response presented | Default judgment is procedurally proper. |
| Did Defendant violate the DMCA by trafficking circumvention devices/services? | Magembe trafficked and sold service/code specifically to circumvent DRM and accessed/distributed Plaintiffs’ protected channels. | No response presented | Defendant violated DMCA §§ 1201(a)(2), 1201(b)(1). |
| Did Defendant violate the FCA by selling device codes for unauthorized signal access? | Device codes enabled unauthorized access to DISH’s satellite channels, benefitting Defendant and code buyers. | No response presented | Defendant violated FCA § 605(e)(4). |
| Are statutory damages and a permanent injunction appropriate? | Over 12,000 code sales; continued willful infringement; damages sought are within statutory authority and supported by similar case precedent. | No response presented | $30,055,000 in statutory damages awarded; permanent injunction granted. |
Key Cases Cited
- Lewis v. Lynn, 236 F.3d 766 (5th Cir. 2001) (default judgment is not automatic and is highly disfavored)
- Lindsey v. Prive Corp., 161 F.3d 886 (5th Cir. 1998) (lists factors to determine procedural propriety of default judgment)
- Sun Bank of Ocala v. Pelican Homestead & Sav. Ass’n, 874 F.2d 274 (5th Cir. 1989) (articulates disfavor toward default judgments)
- Jackson v. FIE Corp., 302 F.3d 515 (5th Cir. 2002) (relief through default judgment must be proper and supported by pleadings)
- United Artists Corp. v. Freeman, 605 F.2d 854 (5th Cir. 1979) (allegations except damages assumed true on default judgment)
