Virgin Records America, Inc. v. Lacey
510 F. Supp. 2d 588 (2007)
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Rule of Law:
A defendant's failure to appear or otherwise defend against a lawsuit after being properly served constitutes an admission of the well-pleaded factual allegations in the complaint. If these facts are sufficient to state a valid legal claim, the court may enter a default judgment granting relief, including statutory damages and a permanent injunction, without an evidentiary hearing, particularly when only minimum damages are sought.
Facts:
- Bertha Lacey utilized an online media distribution system to download and/or distribute copyrighted music recordings.
- The plaintiffs, a group of record companies including Virgin Records America, Inc., owned the copyrights to these specific recordings.
- Lacey's actions included infringing on eight specific copyrighted recordings owned by the plaintiffs, such as Janet Jackson's "This Time" and Michael Jackson's "Heal the World."
- Lacey did not have a license, permission, or consent from the plaintiffs to reproduce, distribute, or make their recordings available to the public.
Procedural Posture:
- Virgin Records America, Inc. and other record companies filed a complaint for copyright infringement against Bertha Lacey in the U.S. District Court for the Southern District of Alabama.
- Lacey was served with a summons and complaint via a private process server who left the documents with her son at her residence.
- Lacey failed to file an answer or otherwise appear in the action within the time required.
- Upon the plaintiffs' motion, the Clerk of Court entered a default against Lacey for failure to plead or defend.
- The Clerk of Court mailed a copy of the Entry of Default to Lacey's address.
- Plaintiffs subsequently filed a Motion for Entry of Default Judgment, which is now before the court.
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Issue:
Does a defendant's failure to answer a complaint for copyright infringement, after proper service, entitle the plaintiff to a default judgment that includes statutory damages, costs, and injunctive relief without an evidentiary hearing?
Opinions:
Majority - William H. Steele
Yes, a defendant's failure to answer a complaint for copyright infringement after proper service entitles the plaintiff to a default judgment including statutory damages, costs, and injunctive relief without an evidentiary hearing. A default judgment is appropriate when the adversarial process has been halted by an unresponsive party. While a default is not an absolute confession of liability, it is an admission of the well-pleaded facts in the complaint. The court must first confirm that the complaint states a valid claim for relief, which it does here by alleging copyright ownership and unauthorized distribution. Because Lacey's default admits these facts, her liability is established. An evidentiary hearing on damages is unnecessary because the plaintiffs seek only the statutory minimum of $750 per infringement, a sum certain under the law. Furthermore, a permanent injunction is warranted because Lacey's failure to appear indicates a continuing threat of infringement.
Analysis:
This case provides a clear procedural roadmap for copyright holders seeking remedies against unresponsive online infringers. The ruling reinforces that a defendant's complete failure to engage in the legal process effectively concedes the factual basis for liability. By granting statutory damages and injunctive relief without an evidentiary hearing, the court streamlines the process for plaintiffs, making it more efficient and less costly to enforce copyrights against defendants who default. This approach serves as a strong deterrent by demonstrating that ignoring a copyright infringement lawsuit leads to swift and certain legal consequences.
