Dr. JKL Ltd. v. HPC IT EDUCATION CENTER
749 F. Supp. 2d 1038
N.D. Cal.2010Background
- Dr. JKL, Limited sues HPC IT Education Center and Sam Yuen for copyright, trademark, false designation, contract, and breach of implied covenant claims.
- Filed October 19, 2009; service completed; HPC counsel of record acknowledged receipt then ceased representing defendants.
- 2007 agreement required HPC to sell at least 8,800 JKL licenses in Hong Kong and pay $8.52 per license; HPC to take store lease.
- 2009 agreement required HPC to sell 15,000 licenses in the first year; allegedly more misappropriation of sales opportunities and counterfeit marketing.
- Defendants did not respond to ADR/CASE management; clerk entered default; plaintiff moved for default judgment; court granted default and struck the Answer for HPC and Yuen.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to strike the Answer. | Answer deficient under Rule 8; improper for pro se to represent corporation. | HPC and Yuen defended via Answer; proper response to complaint. | Motion granted; Answer stricken for both as to HPC and Yuen. |
| Whether the court has personal jurisdiction over defendants. | Defendants purposefully availed themselves of California forum via negotiations. | Not explicitly argued; forum-related defense raised but not sustained. | Court has personal jurisdiction over defendants. |
| Whether default judgment is warranted under Eitel factors. | Merits satisfied; prejudice to plaintiff without default; failure to defend. | No response or defense to contest merits. | Default judgment granted; Eitel factors favor relief. |
| What damages are recoverable for copyright, Lanham Act, and contract claims. | seeks $150,000 copyright, $60,628.32 treble ta; plus contract and fees. | No opposition since stricken; none provided. | Damages limited to $64,623.14; no treble under Lanham Act; fees $7,899.50; costs $440.52. |
| Award of attorney's fees and costs. | Requests full attorney's fees and costs. | No response. | Attorney's fees reduced to $7,899.50; costs $440.52 awarded. |
Key Cases Cited
- Eitel v. McCool, 782 F.2d 1470 (9th Cir. 1986) (factors for granting default judgment)
- TeleVideo Sys., Inc. v. Heidenthal, 826 F.2d 915 (9th Cir. 1987) (entry of damages based on plaintiff's declarations)
- Rowland v. California Men's Colony, 506 U.S. 194 (U.S. 1993) (corporations must be represented by licensed counsel)
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (purposeful availment and forum state interest in contractual disputes)
- Brookfield Communications, Inc. v. West Coast Entm't Corp., 174 F.3d 1036 (9th Cir. 1999) (likelihood of confusion and trademark infringement standard)
- Jada Toys, Inc. v. Mattel, Inc., 518 F.3d 628 (9th Cir. 2008) (likelihood of confusion in trademark analysis)
- Nintendo of Am., Inc. v. Dragon Pacific Int'l, 40 F.3d 1007 (9th Cir. 1994) (trebling of damages for counterfeit marks under 1117(b))
- Ellison v. Robertson, 357 F.3d 1072 (9th Cir. 2004) (copyright infringement elements)