Deseret Book Company V Nanjing Lian Yidu Trading Co Ltd

Key Facts

Issues

• The court awarded reasonable attorneys' fees and costs under 17 U.S.C. § 505 to promote deterrence, given the defendant's willful infringement.
• The court determined it has subject matter jurisdiction under 28 U.S.C. § 1331 because the case arises under federal copyright laws.
• The court awarded $5,000 per work (total $330,000) considering willfulness, limited sales ($4,099.72), and the need to deter infringement, despite the plaintiff requesting $150,000 per work.
• The court found personal jurisdiction based on the defendant's consent via DMCA counter-notifications, referencing DP Creations, LLC v. Adolly.com which held Amazon can be found in Utah.
• The court granted a permanent injunction after finding the plaintiff met all four requirements: success on merits, irreparable harm, balance of hardships, and public interest.
• The court concluded the defendant made unlawful copies of 66 registered works in 516 Amazon listings and submitted false DMCA counter-notifications, establishing willful infringement.

Holdings

• The court awarded Deseret Book $42,334.50 in reasonable attorneys' fees and costs, citing the Defendant's willful infringement and the need to deter such conduct under the Copyright Act.
• The court issued a permanent injunction preventing the Defendant from future infringing acts, concluding that the four factors for injunctive relief were satisfied: (1) actual success on the merits; (2) irreparable harm absent the injunction; (3) balance of hardships favoring the Plaintiff; and (4) public interest supported by upholding copyright protections.
• The court granted a default judgment against the Defendant for willful copyright infringement, awarding statutory damages of $330,000. The Defendant was found to have unlawfully reproduced 66 copyrighted works in 516 Amazon product listings, with evidence of willfulness through false DMCA counter-notifications and disregard for copyright laws.

Remedies

• The court awarded statutory damages in the amount of $330,000 to Deseret Book Company for the Defendant's willful copyright infringement of 66 registered works.
• A permanent injunction was issued, prohibiting the Defendant from using or selling any copyrighted images owned by Deseret Book Company in connection with product sales, offers, promotion, marketing, or advertisement.
• Deseret Book was awarded $42,334.50 in reasonable attorneys' fees and costs to deter willful copyright infringement.

Monetary Damages

Legal Principles

• The court awarded statutory damages under 17 U.S.C. §504(c), increasing the maximum to $150,000 per work due to the defendant's willful infringement. Willfulness was determined by the defendant's knowledge of infringement or reckless disregard, as per Video Views, Inc. v. Studio 21 Ltd. and Nunes v. Rushton.
• The court applied the four-factor test for a permanent injunction, requiring the plaintiff to demonstrate (1) actual success on the merits, (2) irreparable harm without the injunction, (3) that the harm to the plaintiff outweighs the harm to the defendant, and (4) that the injunction will not adversely affect the public interest. These factors were established in Sw. Stainless, LP v. Sappington and Harolds Stores, Inc. v. Dillard Dep't Stores, Inc.
• The court established subject matter jurisdiction under 28 U.S.C. §1331 for federal copyright claims and personal jurisdiction via the defendant's DMCA counter-notifications, which explicitly consented to jurisdiction in Utah under 17 U.S.C. §512(g)(3). This was affirmed by DP Creations, LLC v. Adolly.com.

Precedent Name

• DP Creations, LLC v. Adolly.com
• Marcus Food Co. v. DiPanfilo
• Nunes v. Rushton
• Harolds Stores, Inc. v. Dillard Dep't Stores, Inc.
• Sw. Stainless, LP v. Sappington
• Tu v. TAD Sys. Tech. Inc.
• Country Kids 'N City Slicks, Inc. v. Sheen
• Dominion Video Satellite, Inc. v. Echostar Satellite Corp.
• Video Views, Inc. v. Studio 21 Ltd.
• Autoskill Inc. v. Nat'l Educ. Support Sys., Inc.
• Klein-Becker USA, LLC v. Tahini
• Stampin' Up!, Inc. v. Hurst

Cited Statute

• United States Code, Title 28
• Digital Millennium Copyright Act
• Copyright Act

Judge Name

• Jill N. Parrish
• Jared C. Bennett

Passage Text

• It is impossible to calculate the value of the loss of customers and goodwill. See id. at 1192 (affirming a finding of irreparable harm "[b]ecause it is so difficult to prove the value of goodwill"). Moreover, when confronted with its infringement, the Defendant took steps to continue its infringement, thus raising the likelihood of continued infringement that monetary damages cannot remedy. ECF No. 1 at ¶ 28. Thus, Deseret Book has established irreparable harm absent an injunction.
• Defendant blatantly disregarded copyright laws by selling exact copies of the copyrighted works through 516 separate product listings on Amazon. When confronted with its infringement, Defendant submitted numerous false DMCA counter-notifications to Amazon for the purpose of maintaining its wrongful and infringing listings. The court concludes that Defendant knew its conduct was infringing or acted with reckless disregard for Deseret Book's rights.