OPINION
Plaintiff DIRECTV, Inc. brought this action against defendant James Huynh alleging violations of the Federal Communication Act of 1934, as amended, 47 U.S.C.A. § 605(a), the Omnibus Crime Control and Safe Streets Act of 1968, as amended by the Electronic Communications Privacy Act of 1986, 18 U.S.C.A. §§ 2511(l)(a) & 2512(l)(b), and state law. The claims in this case arise from Huynh’s alleged use of devices to receive DIRECTV’S satellite television service without paying for it. The court’s jurisdiction has been properly invoked. 47 U.S.C.A. § 605(e)(3)(A); 28 U.S.C.A. §§ 1331 & 1367(a). This case is now before the court on DIRECTV’S motion to strike Huynh’s answer and for default judgment.
I. Background
DIRECTV provides satellite television programming on a subscription and pay-per-view basis. In order to protect its transmissions from unauthorized reception, DIRECTV encrypts — or scrambles— its satellite signal, and each DIRECTV customer is required to purchase system hardware and an access card. The access cards function as decoders or de-scramblers; they allow subscribers to view the programming for which they have paid and only that programming.
In order to view DIRECTV programming without paying for it, satellite television pirates have found ways to modify their access cards. In response, DIRECTV has developed electronic countermeasures or ECMs, which are streams of data sent along with its satellite signal that target and disable modified access cards. In turn, the pirates have countered with a variety of devices — referred to as pirate-access devices — that restore their modified access cards’ ability to gain unauthorized access to DIRECTV’S programming. 1
On August 21, 2003, DIRECTV filed an amended complaint against Huynh.
2
The complaint alleges that, on or about May 21,
Huynh filed an answer on May 5, 2003, but that was the last time he was heard from on this matter. He did not participate in the Federal Rule of Civil Procedure 26 conference held before the case was severed; he did not respond to requests to participate in a Rule 26 conference after severance; and, he did not ró-spond to written discovery served in July 2003. Further, he failed to appear for the scheduling conference on November 12, 2003, and he did not respond to the court’s subsequent order to show cause why he did not appear. Finally, Huynh failed to appear for the court’s April 15, 2004, pretrial conference.
After Huynh did not appear at the April 15 pretrial conference, DIRECTV filed the instant motion to strike his answer and for default judgment. The court issued an order directing Huynh to show cause by April 30, 2004, why DIRECTV’s motions should not be granted. Huynh did not respond. 5
II. Discussion
DIRECTV’s motion for default judgment presents three issues: First, is DIRECTV entitled to a default judgment under Rule 16(f) of the Federal Rules of Civil Procedure? Second, has DIRECTV adequately stated its causes of action in its amended complaint such that the court can enter a default judgment? Third, to what relief is DIRECTV entitled?
A. Rule 16(f)
DIRECTV brings its motion for default judgment under Rule 16(f) of the Federal Rules of Civil Procedure. Rule 16(f) provides that “[i]f a party or party’s attorney fails to obey a scheduling or pretrial order, or if no appearance is made on behalf of a party at a scheduling or pretrial conference ... the judge, upon motion or the judge’s own initiative, may make such orders with regard thereto as are just, and among others any of the orders provided in Rule 37(b)(2)(B), (C), (D).” Rule 37(b)(2)(C) authorizes the
The court concludes that a default judgment is appropriate in this case. Huynh has failed to participate in this case since he filed his answer. He has ignored three scheduled conferences, and he has failed to respond to two show-cause orders. The court also finds that it is more likely than not that Huynh’s failure to appear at scheduled conferences is wilful; the fact that he filed an answer and the fact that the court’s orders mailed to his address have not been returned indicate that he is aware of the lawsuit. Furthermore, because it appears very unlikely that there will ever be any actual litigation of this matter, other sanctions — such as “refusing to allow [Huynh] to support or oppose designated claims or defenses, or prohibiting [him] from introducing designated matters in evidence,” Fed.R.Civ.P. 37(b)(2)(B) — would be ineffectual.
B. Causes of Action
That the conditions of Rule 16(f) are met in this case does not end the court’s inquiry. “[A] defendant’s default does not in itself warrant the court entering a default judgment. There must be a sufficient basis in the pleadings for the judgment entered.... The defendant is not held to admit facts that are not well-pleaded or to admit conclusions of law. In short, ... a default is not treated as an absolute confession of the defendant of his liability and of the plaintiffs right to recover.”
Nishimatsu Constr. Co., Ltd. v. Houston Nat'l Bank,
The court’s efforts in this regard have been hampered by DIRECTV’s motion for default judgment, which does not make entirely clear on which counts of its amended complaint it is moving for default judgment. The first sentence of the motion reads, “Plaintiff DIRECTV, Inc ...., pursuant to Rules 55[sic] and Rule 16(f) of the Federal Rules of Civil Procedure, 47 U.S.C. § 605 ...; 18 U.S.C. §§ 2510-2521 ...; and relevant Local Rules, moves to strike the Answer and for the entry of a Default Judgment against Defendant James Huynh.”
7
Later in its motion,
1. Count One: 47 U.S.C.A. § 605(a)
Count one alleges that Huynh violated 47 U.S.C.A. § 605(a), which provides in relevant part that “[n]o person not being entitled thereto shall receive or assist in receiving any interstate or foreign communication by radio and use such communication (or any information therein contained) for his own benefit or for the benefit of another not entitled thereto.” Although § 605(a) is a criminal statute, 605(e)(3)(A) provides that “[a]ny person aggrieved by any violation of [§ 605(a)] or [605(e)(4)] may bring a civil action in a United States district court.” Section 605(e)(3)(A) thus authorizes DIRECTV to bring a private cause of action to enforce § 605(a).
See, e.g., DIRECTV v. Tasche,
DIRECTV has adequately alleged that Huynh violated § 605(a). In its amended complaint, DIRECTV alleged that Huynh received its satellite transmission without authorization, and, by his default, Huynh has admitted this allegation. Moreover, Huynh has also admitted that he purchased three pirate-access devices, and the court can infer from his possession of the devices that he received DIRECTV’s signal without authorization in violation of § 605(a).
11
See, e.g., DIRECTV, Inc. v. Cardona,
2. Count Two: 18 U.S.C.A. § 2511(l)(a)
Huynh is similarly liable on count two, DIRECTV’s 18 U.S.C.A. § 2511(l)(a) claim. A criminal statute, § 2511(l)(a) provides that “any person who intentionally intercepts, endeavors to intercept, or procures any other person to intercept or endeavor to intercept, any wire, oral, or
3. Count Three: 18 U.S.C.A. § 2512(l)(b)
In count three, DIRECTV alleges that Huynh manufactured, assembled, distributed, sold, possessed, or used pirate access devices, knowing or having reason to know that the design of such devices renders them primarily useful for the purpose of surreptitious interception of DIRECTV’s satellite transmissions in violation of 18 U.S.C.A. § 2512(l)(b). Like § 2511(l)(a), § 2512(l)(b) is a criminal statute. However, while § 2520(a) creates a private cause of action for violations of § 2511(l)(a), this court has previously held that § 2520(a) does not create a private right of action to enforce § 2512(l)(b).
DIRECTV v. Baker,
C. Relief
Having concluded that DIRECTV is entitled to default judgment on counts one and two, the court turns to the question of relief. As a general rule, the court may enter a default judgement awarding damages without a hearing only if the amount of damages is a liquidated sum, an amount capable of mathematical calculation, or an amount demonstrated by detailed affidavits.
Adolph Coors Co., 777
F.2d at 1543-44;
Directv, Inc. v. Griffin,
1. Count One: 47 U.S.C.A. § 605(a)
DIRECTV seeks costs, attorneys’ fees and damages for Huynh’s violation of 47 U.S.C.A. § 605(a). The statute provides that the court “shall direct the recovery of full costs, including awarding reasonable attorneys’ fees to any aggrieved party.” 47 U.S.C.A. § 605(e)(3)(B)(iii). In its motion for default judgment, DIRECTV requested “$ 4,400.00 as reasonable attorney’s fees and costs.”
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A footnote indicated that “DIRECTV, Inc. will supplement the record in this case with a
As noted above, the statute provides that the court shall award reasonable attorneys’ fees. While the court is required to award attorneys’ fees, the determination of the fee amount is left to the court’s discretion,
Dowdell v. City of Apopka,
In addition to costs and fees, the court has the discretion to award damages. 47 U.S.C.A. § 605(e)(3)(B)(ii);
Griffin,
In calculating damages under § 605(e), the first question for the court to determine is how many violations of § 605(a)
The court cannot square this assumption with the plain language of the statute. Section 605(a) provides in relevant part that “no person not being entitled thereto shall receive or assist in receiving any interstate or foreign communication by radio and use such communication .. for his own benefit or for the benefit of another not entitled thereto.” While possession of an access device can be evidence of a violation of this section, it is clear from the statute’s language that possession of a pirate access device standing alone does not amount to a violation. Rather, a plaintiff must prove that the defendant received or assisted another in receiving an interstate communication. The court has found that Huynh violated § 605(a) because he has admitted — as a result of his default — DIRECTV’s allegation that he did so. In contrast, his admission that he possessed three access devices does not amount to three violations of § 605(a). Thus, the court finds that Huynh committed one violation of § 605(a).
The court’s conclusion is bolstered by its understanding — taken from DIRECTV’s pleadings — of how these pirate-access devices work. As the court understands it, the devices purchased by Huynh are not used to intercept DIRECTV’s signal directly, but rather they are used to “restore pirate access cards’ ability to illegally circumvent DIRECTV’s encryption protection” after the pirate-access cards are disabled by DIRECTV’s electronic countermeasures. 17 Thus, it is conceivable that a person might purchase a number of these devices to restore a single pirate-access card and then use the card to receive one unauthorized satellite transmission. Similarly, a person might purchase a single access device, use it to restore a single access card, and then use that card to receive a large number of 'DIRECTV’s transmissions. Thus, the facts as presented by DIRECTV do not suggest an easy equation of one pirate access device to one violation of § 605(a).
Based on one violation of § 605(a), DIRECTV shall recover “a sum not less than $ 1,000 or more than $ 10,000, as the court considers just.” 47 U.S.C.A. § 605(e)(3)(C)(i)(I)(II). Courts have cited a number of factors in determining' a “just” amount of damages: (1) whether the defendant profited as a result of his violation,
DirecTV, Inc. v. Perrier,
No. 03-CV-400S,
Based on the foregoing principles, the court finds that an award of $ 1,000 in damages is just. There are no allegations that Huynh profited as a result of his actions or that he induced others to commit violations. Furthermore, the court is convinced that a default judgment in the amount of $ 1,000 — combined with the award of attorneys’ fees — will be sufficient to deter future violations. Finally, an award of $ 1,000 in damages is in line with the awards in similar DIRECTV cases.
See, e.g., DIRECTV v. Kaas,
2. Count Two: 18 U.S.C.A. § 2511(l)(a)
DIRECTV also seeks relief for Huynh’s violation of § 2511(l)(a). Section 2520(c)(2) provides that the court may assess damages for violations of § 2511(l)(a). The court has discretion whether to award damages at all,
see, e.g., Dorris v. Absher,
In deciding whether to award damages under § 2520(c)(2), courts in similar DIRECTV eases have looked at a number of factors: (1) whether the defendant profited by his violation,
e.g., Kaas,
Based on these principles, the court exercises its discretion to award no damages to DIRECTV for Huynh’s violation of § 2511(l)(a). Foremost among the court’s reasons is that DIRECTV will receive a judgment against Huynh for his violation of § 605, a violation premised on the same underlying conduct. The court finds that its award of damages under § 605 “appropriately punishes [Huynh] for his illegal actions, adequately compensates [DIRECTV] for any damage it suffered, and sufficiently deters other from engaging in similar unlawful conduct.”
Perrier,
2004.WL 941641, at *4. In reaching this conclusion, the court has also kept in mind “the potential of [§ 2520(c)] to bring financial ruin to persons of modest means, even in cases of trivial transgressions.”
Reynolds v. Spears,
■ III. Conclusion
For the foregoing reasons, the court finds that DIRECTV is entitled to a default judgment against Huynh on its first and second causes of action. Furthermore, the court finds that DIRECTV is
An appropriate judgment will be entered.
JUDGMENT
In accordance with the memorandum opinion entered this date, it is the ORDER, JUDGMENT, and DECREE of the court:
(1) The motion to strike answer and for default judgment against defendant James Huynh, filed by plaintiff DIRECTV, Inc. on April 15, 2004 (doc. no. 14), is granted in part and denied in part.
(2) Judgment is entered in favor of plaintiff DIRECTV, Inc. and against defendant Hunyh on counts one and two of plaintiff DIRECTV, Inc.’s amended complaint, filed August 21, 2003 (doc. no. 2).
(3) Plaintiff DIRECTV, Inc. shall have and recover the sum of $ 13.75 in costs from defendant Huynh.
(4) Plaintiff DIRECTV, Inc. shall have and recover the sum of $ 1,500.00 in attorneys’ fees from defendant Huynh.
(5) Plaintiff DIRECTV, Inc. shall have and recover the sum of $1,000.00 in statutory damages under 47 U.S.C.A. § 605(e)(3)(C)(i)(II), from defendant Huynh.
It is further ORDERED the motion striking defendant’s answer, etc., filed by plaintiff DIRECTV, Inc. on May 3, 2004 (doc. no. 19), is denied as moot.
The clerk of this court is DIRECTED to enter this document on the civil docket as a final judgment pursuant to Rule 58 of the Federal Rules of Civil Procedure.
Notes
. These counter-ECM pirate-access devices go bynames like "bootloaders,” "dead processor boot boards,” "glitchers,” "HU loaders,” "emulators,” and "unloopers.”
. DIRECTV filed its original complaint in this matter against Huynh and seven other defendants on April 17, 2003. By order entered on August 6, 2003, United States Magistrate Judge Susan Russ Walker ordered that DIRECTV’s actions against all of the defendants
.Amended Complaint, filed August 21, 2003 (amended complaint), at 9-10.
. Amended complaint at 11.
. The court notes that none of its orders mailed to Huynh’s address has been returned. The court thus assumes that Huynh has been aware of these conferences and orders.
. In
Bonner v. Prichard,
. Motion to strike answer and for default judgment, etc., filed April 15, 2004 (motion for default judgment), at 1.
. Id. at 4.
. Id. at 5. In addition to being confusing, this statement is not accurate. As discussed above, DIRECTV’s complaint asks for “an award of statutory damages of $ 10,000 for each pirate access device purchased and used in violation of 47 U.S.C. § 605(a).” Amended complaint at 11 (emphasis added).
. It is clear that DIRECTV does not seek default judgment on its state-law conversion claim.
.The court emphasizes that, had DIRECTV alleged only that Huynh possessed a pirate-access device, this would not have been sufficient to state a claim under the plain language of § 605(a). Similarly, to establish liability under § 605(a), a plaintiff must prove that the defendant received or assisted in receiving a communication to which he was not entitled.
. Motion for default judgment, at 5.
. Id. at 5 n. 5.
. Affidavit in support of plaintiff's request for attorney’s fees, filed May 3, 2004. On the same day, DIRECTV filed its affidavit in support of its request for attorneys' fees, it filed a second motion styled "motion striking defendants and for entry of default judgment." DIRECTV acknowledges that this second motion was filed in error; accordingly the court will deny this second motion as moot.
.See id., exh. A, invoice for fees through January 31, 2004 and invoice for costs and fees through April 16, 2004.
. Amended complaint, at 11.
. Amended complaint at 5.
