LaRiviere, Grubman & Payne, LLP

I Musta Overslept

By Robert W. Payne

Sometimes, things slip through the cracks. You know how it is. You get busy. The insurance premium wasn't mailed. You meant to work on those darned taxes. You let a default be entered against you for oh, say $9,100,000. Happens every day. So you can sympathize with Ray Lopez.

Seems Mr. Lopez aka Ray Lopez Music had a nasty habit of copying and selling CD's. Not just anyone's CD's, mind you: those of Sony, Capitol Records' and Warner Bros. They brought suit for copyright infringement. Lost no doubt in the harried press of other business, it slipped Mr. Lopez's mind to answer the complaint. Plaintiffs dutifully took his default and sought a default judgment. Perhaps to Mr. Lopez's enduring surprise, the court granted judgment in the amount of $9.1 million for infringing the copyright on 91 different recordings. (Quick, math whizzes: how much per violation?)

lgp@law® is not in the habit of giving unsolicited advice to non-clients. But this time we are moved to offer this: Next time, Mr. Lopez, be more careful. If it is not too late to move to set aside the judgment, consider arguing the following:

  1. The infringements were innocent. Sure, the complaint alleged willful infringement, and defaulting on the complaint constitutes an admission of all allegations. But look how thin the evidence offered was: erased trademarks, similar packaging, leaving only his daughter's address and phone number are everyday business practices. (I call this the "Every pirate's doing it" defense.)

  2. The Court granted the maximum statutory damages of $100,000 per willful violation, without proof of the amount of loss incurred. What, no volume discount?

  3. Lopez was singled out. What about the "Johns" who buy these things? If this is a $300 million/year problem, why pick on him, just because the court noted he still has the master copies?

Practice Areas  |   Scope of Services  |   Attorneys  |   About LGP  |   Information & Resources  |   IP Manager Login

Copyright 1998-2010
LaRiviere, Grubman & Payne, LLP

IMPORTANT DISCLAIMER: If You Contact LaRiviere, Grubman & Payne, LLP (LGP) Or Any Of Our Attorneys Or Employees By Internet Email, Do Not Send Confidential Information, Including Attorney/Client Privileged Information. We Disclaim Any Responsibility To Maintain The Confidentiality Of Any Information Transmitted To LGP By Internet Email. Additionally, Be Aware That Neither Reading Information On This Web Site Nor Contacting LGP Via Internet Email Creates An Attorney/Client Relationship, And The Information Presented Here Is For General Informational Purposes Only And May Not Be Relied Upon As Applicable To Your Specific Legal Situation.