Sweet People Apparel Inc v. Chang Group LLC, 2:16-cv-03139

Background

Plaintiff Sweet People Apparel, Inc. (dba Miss Me) owns a registered copyright (Reg. No. VA 1-885-014) in a denim rear-pocket design (the JP5498B Design) first used in 2011–2012.
Defendant Kenco Fashion Inc. allegedly produced and sold jeans under the “AdiktD” brand incorporating a substantially similar design; Plaintiff alleges willful infringement under 17 U.S.C. § 501.
Plaintiff filed suit and served Kenco; Kenco answered but its counsel was permitted to withdraw and Kenco failed to obtain new counsel as ordered, leading to the court striking Kenco’s answer and entry of default.
Plaintiff moved for default judgment seeking: permanent injunction, $75,000 statutory damages for willful infringement, $5,115 in attorneys’ fees and costs, and prejudgment interest; Kenco did not oppose.
The Court found subject-matter and personal jurisdiction proper, concluded the procedural requirements for default judgment were satisfied, and accepted well-pleaded factual allegations as true except as to damages.
The Court granted default judgment: permanent injunction, $75,000 statutory damages, $5,115 fees/costs (total $80,115), plus prejudgment interest under 28 U.S.C. § 1961(a).

Issues

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether default judgment is appropriate after defendant failed to retain counsel and defaulted	Kenco defaulted and Plaintiff is prejudiced; FAC alleges willful copyright infringement and Plaintiff served notice of the motion	No opposition filed; no facts or arguments presented	Default judgment granted — all Eitel factors weighed in Plaintiff’s favor
Whether the FAC states a valid copyright-infringement claim	Plaintiff owns valid registration and alleges access and substantial similarity between designs	No opposition to contest ownership, access, or similarity	Claim found sufficiently pleaded; ownership and copying established for default judgment purposes
Whether permanent injunctive relief is warranted	Injunction necessary to prevent ongoing irreparable harm, monetary damages are inadequate, balance of hardships favors Plaintiff, public interest supports protection of copyrights	No opposition submitted	Permanent injunction granted under 17 U.S.C. § 502(a) (Ebay factors satisfied)
Appropriate damages and fees (statutory damages, fees/costs, interest)	Requests $75,000 statutory damages for willful infringement (half the statutory max), $4,600 attorneys’ fees under Local Rule 55-3 plus $515 costs, and prejudgment/postjudgment interest	No opposition or accounting from defendant; inability to obtain infringer’s profits due to default	Court awarded $75,000 statutory damages, $5,115 fees/costs (per L.R. 55-3 and documented costs), and prejudgment interest at §1961(a) rate

Key Cases Cited

Aldabe v. Aldabe, 616 F.2d 1089 (9th Cir.) (default-judgment standard)
Televideo Sys., Inc. v. Heidenthal, 826 F.2d 915 (9th Cir.) (allegations in complaint taken as true on default except damages)
In re Tuli, 172 F.3d 707 (9th Cir.) (court must confirm subject-matter and personal jurisdiction before default judgment)
Eitel v. McCool, 782 F.2d 1470 (9th Cir.) (seven-factor test for default-judgment discretion)
Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., 499 U.S. 340 (U.S.) (copyright claim elements: ownership and copying)
Shaw v. Lindheim, 919 F.2d 1353 (9th Cir.) (proof of access plus substantial similarity supports copying inference)
L.A. Printex Indus., Inc. v. Aeropostale, Inc., 676 F.3d 841 (9th Cir.) (geographic/industry proximity can support access)
eBay Inc. v. MercExchange, L.L.C., 547 U.S. 388 (U.S.) (four-factor permanent injunction test)
James v. Frame (In re Frame), 6 F.3d 307 (9th Cir.) (district court discretion in awarding damages after default)
Polar Bear Prods., Inc. v. Timex Corp., 384 F.3d 700 (9th Cir.) (prejudgment interest and remedies assessment in copyright cases)
Frank Music Corp. v. Metro-Goldwyn-Mayer Inc., 886 F.2d 1545 (9th Cir.) (use of §1961(a) rate for prejudgment interest in copyright actions)