UFC 150 Piracy Leads to $14,500 Judgement

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ErikMagraken

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Republished from Combat Sports Law | Your MMA and Combat Sports Legal Resource
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In the latest addition to this site’s archived cases addressing Pay Per View Piracy, reasons for judgement were released this month ordering a Defendant to pay just over $14,500 in damages and costs following the commercial piracy of UFC 150.

In the recent case (Joe Hand Promotions , Inc v. KJ’s Wings and Ale, LLC) the Defendant operated a commercial establishment and displayed UFC 150 without paying the licence fee to the Plaintiff allowing them to do so. The Plaintiff sued for damages and obtained default judgement with statutory damages of $3,750, enhanced damages of $7,500 plus costs and attorney fees for a total judgement of $14,583.75. In reaching this assessment District Judge Michelle Childs provided the following reasons:

According to the record, Plaintiff had the exclusive nationwide commercial television distribution rights to “Ultimate Fighting Championship 150: Benson Henderson vs. Frankie Edgar” (the “Program”). (ECF No. 1 at 3.) The minimum rate charged by Plaintiff for the right to show the Program was seven hundred fifty dollars ($750.00). (ECF No. 11-3.)

Plaintiff’s private investigator (“PI”) entered Scooter’s Lounge (“Scooter’s”), located 1631 JA Cochran Boulevard, Chester, SC, on August 11, 2012, at approximately 9:51 p.m. (ECF No. 11-4 at 1.) The PI did not pay a cover charge to enter the establishment. (Id.) While in Scooter’s, the PI observed five televisions displaying one of the fights on the card for the Program. (Id.) There were between seven and twelve patrons in Scooter’s during the PI’s investigation. (Id. at 3.) The PI left Scooter’s at approximately 11:40 p.m. (Id.)..

Given that there were no more than twelve patrons in the establishment during the airing of the Program, an award based upon the number of people in the establishment would not provide a sufficient deterrent from future violations by Defendants. However, the court finds that an award of five times the license fee Defendants should have paid, coupled with enhanced damages and attorneys’ fees and costs, will provide a sufficient deterrent for Defendants. Therefore, the court awards Plaintiff statutory damages in the amount of three thousand seven hundred fifty dollars ($3,750.00)…

While the court finds that Defendants’ actions were willful and intentional violations of the Federal Communications Act, the maximum statutory enhancement is not warranted in this case. Therefore, the court awards enhanced damages in the amount of seven thousand five hundred dollars ($7,500.00) to Plaintiff.

The Federal Communications Act requires the court to award “full costs, including reasonable attorneys’ fees, to an aggrieved party who prevails.” 47 U.S.C. § 605(e)(3)(B). Plaintiff is an aggrieved party, and Plaintiff has prevailed in this suit. Plaintiff has supported its request for costs and attorneys’ fees by producing bills and an affidavit detailing the costs of litigation. (ECF No. 11-6.) Plaintiff has also provided the affidavit of an independent attorney attesting to the appropriateness of Plaintiff’s attorney’s fee. (ECF No. 11-7.) The Court finds that Plaintiff has costs one thousand one hundred fifty five dollars ($1,155.00), and that Plaintiff is entitled to attorneys’ fees in the amount of two thousand one hundred seventy eight and 75/100 dollars ($2,178.75).
 

Zeph

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Won't this bar just close, not pay and open up somewhere else under a new name?
 

ErikMagraken

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Won't this bar just close, not pay and open up somewhere else under a new name?
Getting a judgement and collecting on it are certainly two entirely separate things!

I imagine an educated guess is made about the defendant's ability to pay before litigation such as this is pursued to conclusion. That said, sometimes the UFC and Joe Hand like the headline that comes from a high award. This one was fairly middle of the road for commercial infringement. Joe Hand was seeking over $100K. They rarely get that but you can bet they would publicize the judgement far and wide if they succeeded.
 

Zeph

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Getting a judgement and collecting on it are certainly two entirely separate things!

I imagine an educated guess is made about the defendant's ability to pay before litigation such as this is pursued to conclusion. That said, sometimes the UFC and Joe Hand like the headline that comes from a high award. This one was fairly middle of the road for commercial infringement. Joe Hand was seeking over $100K. They rarely get that but you can bet they would publicize the judgement far and wide if they succeeded.
Well, they got a default judgement, which means it was uncontested correct? So if the bar didn't even try to fight it, I find it dubious that they will pay it.
 

Lamont Cranston

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I can see going after a bar that steals it, but going after a bunch of guys who chip in to watch it at their mma gym?

UFC needs to reel Joe Hand in.
 

Priziesthorse

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I can see going after a bar that steals it, but going after a bunch of guys who chip in to watch it at their mma gym?

UFC needs to reel Joe Hand in.
You will never be able to know for sure or not if the mma gym is making money off showing the ppv. It makes sense to me to treat all commercial establishments the same. If a bunch of guys from a gym want to chip in, they should just do it at one of their houses or go to a bar.
 

ErikMagraken

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You will never be able to know for sure or not if the mma gym is making money off showing the ppv. It makes sense to me to treat all commercial establishments the same. If a bunch of guys from a gym want to chip in, they should just do it at one of their houses or go to a bar.
Here's a case where Joe Hand sued a gym for showing a PPV without paying for a commercial licence. Minimum statutory damages were awarded
Minimum Statutory Damages Awarded Following Piracy of UFC 159 | Combat Sports Law
 

Priziesthorse

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Well, they got a default judgement, which means it was uncontested correct? So if the bar didn't even try to fight it, I find it dubious that they will pay it.
I'm not 100% positive, but I believe eventually they would face a writ of execution where the government will take the money they owe directly out of the bar's bank account. Is this true ErikMagraken @ErikMagraken ?
 

ErikMagraken

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I'm not 100% positive, but I believe eventually they would face a writ of execution where the government will take the money they owe directly out of the bar's bank account. Is this true ErikMagraken @ErikMagraken ?
The Plaintiff (Joe Hand) have the right to execute on the judgement by means such as selling Defendant assets, going after liquid assets such as bank accounts etc. Collections is an ugly business with a lot of powers given to judgement holder.

The real issue is whether the Defendant has assets to go after.
 

Zeph

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The Plaintiff (Joe Hand) have the right to execute on the judgement by means such as selling Defendant assets, going after liquid assets such as bank accounts etc. Collections is an ugly business with a lot of powers given to judgement holder.

The real issue is whether the Defendant has assets to go after.
Once you've got a judgement like this, it seems like it would be incredibly easy just to shut up shop, move the money into someone else name or offshore and set up again at a later date. That is even if there is any money, since a small bar probably operates on a small margin, and rents the premises.
 

ErikMagraken

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The Lawyers and Zuffa's time cost a shit ton more than 14,500 USD
Not here. These piracy default judgement are fairly boilerplate applications. The lawyers charged Joe Hand $2,100. The judgement included the lawyer fees on top of the damages.

The issue still is whether there are assets to go after. Can't draw water from a dry well.
 

Lamont Cranston

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You will never be able to know for sure or not if the mma gym is making money off showing the ppv. It makes sense to me to treat all commercial establishments the same. If a bunch of guys from a gym want to chip in, they should just do it at one of their houses or go to a bar.
I think mma gyms or martial arts gyms should get a special rate of some sort imo.