J & J SPORTS PRODUCTIONS, INC. v. ZARCO
1:12-cv-01642
S.D. Ind.Sep 9, 2013Background
- J&J Sports holds exclusive commercial distribution rights to the November 13, 2010 pay‑per‑view boxing match "Tactical Warfare" (Pacquiao v. Margarito) and licenses commercial exhibitions to bars/restaurants.
- On the night of the fight, investigator Thomas Newgent observed the match playing on a 37" TV at Super‑Tortas Estillo Barrio Restaurant; the restaurant was closed to the public and only a few people were present.
- Defendant Alex Zarco owned/operated Super‑Tortas and, according to plaintiff’s requests for admission (to which Zarco did not respond), admitted he did not license the event and that the establishment intercepted/broadcast the program (including by diverting residential service or using an illegal decoder).
- Plaintiff moved for summary judgment; defendant failed to respond to discovery or the summary judgment motion, producing default admissions under Fed. R. Civ. P. 36.
- The court found liability established under the statutory anti‑piracy statutes (47 U.S.C. § 553 or § 605) based on the admitted facts, but declined to award enhanced statutory damages or conversion damages without a damages hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether defendant unlawfully intercepted/broadcast the program | Zarco unlawfully intercepted and exhibited the match without a license, admitting diversion/decoder use | No response; default admissions established facts | Liability established under §553 or §605 based on Rule 36 admissions |
| Effect of Rule 36 admissions at summary judgment | Admissions are binding and can support summary judgment | No response/assertion | Court treated admissions as factual foundation and relied on supporting affidavits |
| Which statute applies and damages range (§553 v. §605) | Plaintiff seeks damages under §605 and maximum statutory penalties | No factual evidence pinpointing interception method; statute choice unclear | Court need not decide between §553 and §605; awarded statutory damages to be determined at hearing (but denied enhanced maximum award) |
| Conversion claim and enhanced damages | Plaintiff asserted conversion and willfulness to justify enhancement | No developed argument/evidence; no proof of advertising, cover charges, or repeat offenses | Conversion claim waived (undeveloped); enhanced damages denied; damages hearing set to determine statutory award and fees |
Key Cases Cited
- McCann v. Mangialardi, 337 F.3d 728 (7th Cir. 2003) (Rule 36 admissions can serve as factual predicate for summary judgment)
- United States v. Norris, 88 F.3d 462 (7th Cir. 1996) (distinguishing §605 and §553 based on interception method)
- Puffer v. Allstate Ins. Co., 675 F.3d 709 (7th Cir. 2012) (perfunctory or undeveloped arguments are waived)
