DESERET BOOK COMPANY v. NANJING LIAN YIDU TRADING CO., LTD.
Case No: 2:24-cv-00961-JNP-JCB
IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH
March 16, 2026
District Judge Jill N. Parrish; Magistrate Judge Jared C. Bennett
MEMORANDUM DECISION AND ORDER GRANTING MOTION FOR DEFAULT JUDGMENT AND PERMANENT INJUNCTION
Defendant Nanjing Lian Yidu Trading Co., LTD has failed to appear or defend, and default has been entered. ECF No. 30. Before the court is plaintiff Deseret Book Company‘s Motion for Default Judgment and Permanent Injunction. ECF No. 31. The court GRANTS the motion.
BACKGROUND
Deseret Book is a corporation organized under the laws of the State of Utah with its principal place of business at 55 N 300 W, Suite 300, Salt Lake City, Utah, 84101. ECF No. 1 at ¶ 5. Deseret Book is the owner by assignment of the copyright in certain paintings by Mr. Greg Olsen, including the sixty-six registered copyrighted works identified in the Complaint (the “Olsen Works” or the “Asserted Copyrights“). Id. at ¶ 3. Defendant Nanjing Lian Yidu Trading Co., Ltd. (“Nanjing” or “Defendant“) is a Chinese business entity and Amazon seller. The Complaint alleges that the Defendant makes and sells hundreds of unlicensed copies of the Olsen Works without the authorization of Deseret Book, like the example shown below:
Id. at ¶ 18. In particular, the Complaint alleges Defendant infringes Deseret Book‘s sixty-six registered copyrights in the Olsen Works. Id. at ¶ 26. The Complaint alleges that Defendant has marketed and sold infringing products in 516 separate Amazon product listings. The Defendant‘s products are not affiliated with Deseret Book; the Complaint alleges they are unlawful, unlicensed copies of genuine Olsen Works. Id. at ¶ 8.
Before filing its Complaint, Deseret Book submitted Digital Millenium Copyright Act (“DMCA“) “Notices of Infringement” to Amazon alleging that Nanjing‘s product listings infringed Deseret Book‘s Copyrights. Id. at ¶ 28. In response, Nanjing submitted scores of DMCA “Counter-Notifications” pursuant to
LEGAL STANDARD
The federal rules provide for a two-step process for obtaining a default judgment. Keith v. Koerner, No. 11-cv-2281, 2016 WL 4541447, at *2 (D. Kan. Aug. 30, 2016). First, the Clerk enters default against the defendant for failing to plead or otherwise defend. Id. After default is entered, a defendant is deemed to have admitted the well-pleaded facts in the complaint. Tripodi v. Welch, 810 F.3d 761, 764 (10th Cir. 2016). Thereafter, Plaintiff must apply for default judgment. Where Plaintiff seeks default judgment for something other than a sum certain, Plaintiff must apply to the court pursuant to
ANALYSIS
I. SUBJECT MATTER JURISDICTION
Under
II. PERSONAL JURISDICTION
Deseret Book argues the court has personal jurisdiction because the Defendant consented to jurisdiction in this district. ECF No. 1 at ¶ 10. Before filing its Complaint, Deseret Book submitted Digital Millenium Copyright Act (“DMCA“) “Notices of Infringement” to Amazon
III. DEFAULT JUDGMENT FOR COPYRIGHT INFRINGEMENT
A default judgment must be supported by a sufficient basis in the pleadings. Tripodi v. Welch, 810 F.3d 761, 765 (10th Cir. 2016) (citing Bixler v. Foster, 596 F.3d 751, 762 (10th Cir. 2010)). Because Defendant has failed to appear or defend itself against Deseret Book‘s claim, see ECF No. 30, the court may enter a default judgment if the pleadings constitute a cause of action.
The Complaint alleges copyright infringement of Deseret Book‘s exclusive rights under the Copyright Act
Deseret Book is the owner by assignment of the following U.S. Copyright Registrations: VA0000873362, VA0001428370; VA0000609534; VA0000603960; VA0001428355;
Regarding the second prong, the images that are the subjects of the Asserted Copyrights were exactly reproduced by the Defendant. See ECF No. 1 at ¶ 18, Exhibits 2-1 through Exhibit 2-66. Defendant produced, reproduced, and/or prepared reproductions of Deseret Book‘s protected works without Deseret Book‘s consent. See id. at ¶ 22, Exhibit 2-1 through 2-66. Defendant infringes the Asserted Copyrights in 516 Amazon ASIN product listings. See id. at ¶ 26, Exhibit 1-1 through 1-66; see also Exhibit 2-1 through 2-66.
Accepting the allegations in the Complaint as true, the court finds that the Defendant made unlawful copies of the 66 protected works in 516 product listings. The court has reviewed the
IV. DAMAGES FOR COPYRIGHT INFRINGEMENT
“Default judgment . . . cannot be entered until the amount of damages has been ascertained.” Stampin’ Up!, Inc. v. Hurst, Case No. 2:16-cv-00886-CW, 2018 WL 2018066 at *6–*7 (D. Utah May. 1, 2018). This ensures plaintiff receives damages “supported by actual proof.” See id. “The court may conduct hearings . . . when, to enter or effectuate judgment, it needs to . . . determine the amount of damages.”
Deseret Book seeks statutory damages for the Defendant‘s infringement. The Copyright Act provides a range of statutory damages “in a sum of not less than $750 or more than $30,000 as the court considers just.”
In this case, Defendant‘s infringement was willful. Defendant blatantly disregarded
The amount of the statutory damages lies within the court‘s sound discretion “as the court considers just.”
Deseret Book asks the court to award the statutory maximum of $150,000 for each of the 66 copyrighted works at issue in this case, for a total of $9.9 million. The court, however, elects to award a lower amount. The principal reason for this reduction is the limited amount of infringing sales, which totaled $4,099.72. Deseret Book‘s request for an award of $9.9 million is unjustifiably disproportionate to this amount. But other factors weigh against awarding the statutory minimum of $750 per work. Deseret Book produced evidence that Defendants provided low-quality prints to some customers, failed to even deliver prints to other customers, and failed to provide refunds to unsatisfied customers. Deseret Book argues that these acts resulted in the loss of good will and degraded the value of the copyrights in the eyes of consumers. Although Deseret Book did not provide evidence to quantify these soft damages, courts may consider damages that are difficult or
V. PERMANENT INJUNCTION
Deseret Book seeks a permanent injunction preventing the Defendant from undertaking any future infringing acts of unlawful infringement. To obtain a permanent injunction, the plaintiff must demonstrate:
(1) actual success on the merits; (2) irreparable harm unless the injunction is issued; (3) the threatened injury outweighs the harm that the injunction may cause the opposing party; and (4) the injunction, if issued, will not adversely affect the public interest.
Sw. Stainless, LP v. Sappington, 582 F.3d 1176, 1191 (10th Cir. 2009) (citation omitted). “A copyright holder that establishes past infringement and a substantial likelihood of infringement in the future is normally entitled to a permanent injunction against the infringer pursuant to
The first element has been met. Defendant willfully infringed Deseret Book‘s copyrights. As to the second prong, “irreparable harm findings are based on such factors as the difficulty in calculating the damages, the loss of a unique product, and existence of intangible harms such as loss of goodwill or competitive market position.” Dominion Video Satellite, Inc. v. Echostar Satellite Corp., 356 F.3d 1256, 1264 (10th Cir. 2004); see also Sw. Stainless, 582 F.3d at 1191 (“A district court may find irreparable harm based upon evidence suggesting that it is impossible to
As to the third prong, there is no hardship to Defendant because a permanent injunction will merely prevent Defendant from engaging in further unlawful activity. See Klein-Becker USA, LLC v. Tahini, No. 2:07-cv-521, 2008 WL 11340043, at *3 (D. Utah Aug. 15, 2008) (“Producing and selling counterfeit goods is illegal. There can be no cognizable harm to the Defendants by the issuance of an order requiring them not to break the law.“). Similarly, entering a permanent injunction will not disserve the public interest. To the contrary, it will protect copyrighted material and encourage compliance with the Copyright Act. See Autoskill Inc. v. Nat‘l Educ. Support Sys., Inc., 994 F.2d 1476, 1499 (10th Cir. 1993) (“In copyright cases . . . this factor normally weighs in favor of the issuance of an injunction because the public interest is the interest in upholding copyright protections.“), overruled on other grounds by TW Telecom Holdings Inc. v. Carolina Internet Ltd., 661 F.3d 495 (10th Cir. 2011).
Accordingly, the court will GRANT a permanent injunction in favor of Deseret Book Company as set forth below.
VI. ATTORNEYS’ FEES
Deseret Book seeks to recover $42,334.50 in attorneys’ fees and costs associated with the present litigation. In support of this request, Deseret Book‘s counsel submitted a declaration with a spreadsheet of fees and costs attached. See Fees Declaration of Brian Platt, ECF No. 32. The
CONCLUSION AND ORDER
The court orders as follows:
- The court enters default judgment against Defendant Nanjing Lian Yidu Trading Co., Ltd. (“Nanjing“), and awards statutory damages in the amount of $330,000.
- The court grants Deseret Book‘s motion for a permanent injunction. Defendant and its agents, servants, employees, attorneys-in-fact, web hosting providers, domain name registrars, and persons in active concert or participation with them who receive actual notice of this Order, are hereby restrained from using any copyrighted images owned by Deseret Book Company or any copyrighted images of any Deseret Book Company work in connection with the sale, offer for sale, promotion, marketing, or advertisement of any product; and from selling any products copyrighted by Deseret Book Company.
- The court grants Deseret Book‘s motion for attorneys’ fees and costs in the amount of $42,334.50.
Jill N. Parrish
United States District Judge
