Fraserside IP L.L.C. v. Youngtek Solutions Ltd.
796 F. Supp. 2d 946
N.D. Iowa2011Background
- Fraserside IP L.L.C. sues Youngtek Solutions Limited and others for copyright/trademark claims related to adult motion pictures online.
- Clerk entered default against Youngtek after service of process in Cyprus; Youngtek moves to set aside.
- Youngtek is a foreign corporation with Cyprus as its service address, not physically present in the U.S.
- Fraserside served via a private Cypriot process server under Hague Article 10 without Greek translation; service contested by Youngtek.
- Youngtek argues inadequate service under Hague Convention and seeks default set aside for good cause; Fraserside resists.
- Court analyzes service under Rule 4, Hague Convention, and good-cause standards to determine whether default should be set aside.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether service complied with the Hague Convention | Fraserside served under Article 10; Cyprus not objecting; service valid | Youngtek contends process server unauthorized; service defective | Service under Article 10 not shown to be invalid; no Cypriot authorization shown; but service not set aside on this basis |
| Whether service on Youngtek was sufficient to trigger default defenses | Default properly entered; service valid under Hague | Service was defective or inadequate | Service sufficient; default entered; analysis moves to good-cause grounds for setting aside |
| Whether good cause exists to set aside the default | Fraserside would be prejudiced if default set aside; strong interest in timely resolution | Youngtek's neglect due to translation issues and need to locate Iowa counsel; not contumacious | Good cause exists; default set aside under Rule 55(c) |
| Whether Youngtek has meritorious defenses warranting setting aside | Defenses lack clear merit; otherwise would be risky to set aside without merits | Youngtek raises possible defenses including lack of personal jurisdiction and DMCA safe harbor defenses | Yes; meritorious defenses exist (jurisdiction concerns and DMCA §512(c) defenses) weigh heavily in favor of setting aside |
| Whether Fraserside would be prejudiced if default were set aside | Delay alone is insufficient; potential prejudice from inability to present claims | Not specifically pled; prejudice minimal in light of meritorious defenses | No concrete prejudice shown; no undue hardship to Fraserside |
Key Cases Cited
- Hayek v. Big Brothers/Big Sisters of America, 198 F.R.D. 518 (N.D.Iowa 2001) (two-step process for default entry and judgment; good-cause standard under Rule 55(c))
- Johnson v. Dayton Elec. Mfg. Co., 140 F.3d 781 (8th Cir. 1998) (requirement that default judgment follow entry and that excusing default involves weighing good-cause factors)
- Hagen v. Sisseton-Wahpeton Community College, 205 F.3d 1040 (8th Cir. 2000) (default judgment standards; two-step analysis and need to show excusable neglect and prejudice)
- In re Aimster Copyright Litig., 252 F. Supp. 2d 634 (N.D. Ill. 2002) (DMCA safe harbor considerations and server liability benchmarks")
- Stephenson v. El-Batrawi, 524 F.3d 907 (8th Cir. 2008) (good-cause analysis factors for setting aside default)
- Augusta Fiberglass Coatings, Inc. v. Fodor Contracting Corp., 843 F.2d 808 (4th Cir. 1988) (meritorious defense concept and default-set-aside considerations)
- Enron Oil Corp. v. Diakuhara, 10 F.3d 90 (2d Cir. 1993) (damages assessment and qualifications for default judgments)
- Volkswagenwerk Aktiengesellschaft v. Schlunk, 486 U.S. 694 (1988) (Hague Convention framework and service abroad)
- Bankston v. Toyota Motor Corp., 889 F.2d 172 (8th Cir. 1989) (Article 10 translation and service considerations under Hague)