Hounddog Productions, L.L.C. v. Empire Film Group, Inc.
826 F. Supp. 2d 619
S.D.N.Y.2011Background
- Plaintiffs obtained a default judgment against Empire Film Group, Inc. for breach of distribution agreement and willful copyright infringement.
- The court referred damages to Magistrate Judge Cott for an inquest, which recommended $400,000 compensatory damages, $150,000 statutory damages, injunctive relief, and attorneys’ fees.
- Empire allegedly failed to meet minimum promotional spending and payment obligations, triggering termination and revocation of distribution rights on November 4, 2008.
- Empire continued promoting and distributing Hounddog after revocation, including DVD/Blu-ray/VOD sales, despite notice of termination.
- Plaintiffs sought to terminate the agreement, obtain damages, and secure injunctive relief and disposition of infringing materials; the Court adopted the Report in full.
- The Court held that no live damages hearing was required because the submissions provided an adequate basis for the requested damages and relief.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a damages hearing is required | Plaintiffs: submissions suffice to establish damages. | Empire: a hearing is necessary to resolve damages and name validity issues. | No hearing required; damages determined from submissions and record. |
| Whether Hounddog, Productions, LLC is the proper party | Hounddog Productions, LLC is the correct plaintiff; scrivener’s error in documents is explained. | Empire contends Hounddog, LLC is the proper party due to naming in documents. | Hounddog Productions, LLC is the proper party; no procedural defect prevents judgment. |
| Damages for breach of contract | Recover $400,000 compensatory plus nine percent pre-judgment interest from October 31, 2008. | Limitation issues and contract interpretation not disputed by Empire enough to alter damages. | Award of $400,000 compensatory damages plus pre-judgment interest at 9% from October 31, 2008. |
| Term termination of the Distribution Agreement | Nonpayment entitled Plaintiffs to terminate on November 4, 2008. | Disputed termination timing and rights. | Declaration that the Distribution Agreement was validly terminated on November 4, 2008. |
| Statutory damages for copyright infringement | statutory damages of $150,000 for willful infringement. | Requests for statutory damages were excessive or unwarranted without proof of willfulness. | Statutory damages awarded at $150,000 for willful infringement. |
Key Cases Cited
- Transatlantic Marine Claims Agency, Inc. v. Ace Shipping Corp., 109 F.3d 105 (2d Cir. 1997) (district courts may determine damages via affidavits and documentary evidence without a hearing)
- Fustok v. ContiCommodity Servs., Inc., 873 F.2d 38 (2d Cir. 1989) (support for using affidavits and documentary evidence in damages determinations)
- U.S. Naval Inst. v. Charter Communications, Inc., 936 F.2d 692 (2d Cir. 1991) (breach of contract damages award and interest)
- Hamil Am., Inc. v. GFI, 193 F.3d 92 (2d Cir. 1999) (willfulness can justify enhanced statutory damages)
- N.A.S. Import, Corp. v. Chenson Enters., Inc., 968 F.2d 250 (2d Cir. 1992) (willful infringement and damages considerations in copyright cases)
- Salinger v. Colting, 607 F.3d 68 (2d Cir. 2010) (injunction standards and public-interest considerations in copyright cases)
- eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (S. Ct. 2006) (four-factor test for permanent injunctions in patent and copyright contexts)