Joe Hand Promotions, Inc. v. AIH Alamo Ice House, LLC
5:16-cv-00843
W.D. Tex.Oct 6, 2017Background
- Joe Hand Promotions held exclusive commercial distribution rights to the Miguel Cotto v. Canelo Alvarez telecast on November 21, 2015 and licensed showings to establishments for a fee.
- Defendants (Alamo Ice House, Jaime Luis Gonzales, Raymond Fuchs, and Charles Robison) showed the Program at Alamo Ice House without obtaining a license, allegedly intercepting and retransmitting the broadcast for commercial benefit.
- Plaintiff sued under 47 U.S.C. § 605 seeking statutory and enhanced damages and fees; one defendant (Kieschnick) settled and was dismissed; others answered or defaulted; summary judgment and default judgment were entered for Plaintiff on liability.
- The court found the remaining defendants admitted violating § 605 and that the violations were willful and for commercial advantage.
- Damages and fees were reserved for later briefing; Plaintiff submitted damage evidence (including licensor rates and counsel affidavit); Defendants did not brief damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Liability under § 605 | Defendants intercepted and publicly exhibited the Program without a license | Admitted (no contesting briefing on damages after liability) | Court found willful violation and granted judgment for Plaintiff on liability |
| Statutory damages (§ 605(e)(3)(C)(i)) | Seek $10,000 (statutory cap) and use licensor fee model showing $8,200 event cost (trebled) | No response on damages | Court awarded $10,000 (statutory cap reached despite trebling to $24,600) |
| Enhanced damages for willfulness (§ 605(e)(3)(C)(ii)) | Plaintiff urged enhanced damages for willful commercial piracy | No opposition briefing | Court awarded $30,000 enhanced damages as appropriate punishment and deterrent |
| Attorney's fees, costs, joint liability, and setoff | Sought recovery of full costs and reasonable fees; argued settlement by Kieschnick should not offset damages | No offset argued by remaining Defendants; settlement details suggested broad release | Court awarded $9,825 in attorney's fees, found defendants jointly and severally liable, and declined to apply Kieschnick settlement as an offset |
Key Cases Cited
- Joe Hand Promotions, Inc. v. Garcia, 546 F. Supp. 2d 383 (W.D. Tex. 2008) (trebling licensing cost as a damages benchmark and including profits from associated sales)
- Entm’t by J&J, Inc. v. Al-Waha Enters., Inc., 219 F. Supp. 2d 769 (S.D. Tex. 2002) (commercial interception of closed-circuit broadcasts is typically willful and for commercial advantage)
- Cmty. Television Sys., Inc. v. Caruso, 284 F.3d 430 (2d Cir. 2002) (section 605 creates joint and several liability for multiple defendants responsible for a single piracy incident)
- Coastal Agr. Supply, Inc. v. JPMorgan Chase Bank, N.A., 759 F.3d 498 (5th Cir. 2014) (Texas one-satisfaction rule and limits on setoff for settled co-defendants)
Final disposition: Judgment awarded to Plaintiff for $49,825.00 (total damages $40,000 and attorney's fees $9,825); defendants jointly and severally liable; Plaintiff to file bill of costs.