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counsel, and respectfully requests this Court to enter a default judgment, pursuant to Rule 55 of
the Federal Rules of Civil Procedure, against Defendant Imageline Inc., Defendant Islandview
Defaulting Defendants and filed a motion for Temporary Restraining Order. See Complaint
(Doc. No. 1); Plaintiff’s Motion for Temporary Restraining Order (Doc. No. 7).
which the Defaulting Defendants were unrepresented and Defendant George P. Riddick, III
(“Riddick”), entered an appearance pro se on behalf of himself. At the hearing, the Court
explicitly notified Riddick (who is the sole member or primary shareholder and registered agent
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of each of the Defaulting Defendants) that, while it was his right to represent himself in the
matter, he could not appear on behalf of the Defaulting Defendants, because they are
corporations. See Aug. 9, 2010 Court Tr. at 2:23-3:6 (excerpt attached as Exhibit A). Riddick
indicated that he was aware that he could not represent the Defaulting Defendants. Id. at 3:7.
The Court ultimately entered and continued Bernina’s motion for ten days to allow Riddick to
locate counsel to represent the Defaulting Defendants and to submit a “professional” response to
procedurally improper pro se briefs on behalf of himself and the Defaulting Defendants opposing
Bernina’s motion for a Temporary Restraining Order. See Riddick’s Opposition and Rebuttal
Briefs (Doc. Nos. 23 & 24). On the same day, the Court sua sponte issued a memorandum order
“prompted by Riddick’s efforts to speak for his codefendants as well as for himself,” (Aug. 18,
2010 Ct. Order (Doc. No. 14) at 1), in which the Court stated:
Motion for a Temporary Restraining Order, Riddick again appeared pro se and the Defaulting
Defendants again were unrepresented. The Court once again advised Riddick that he could not
represent the Defaulting Defendants and further advised Riddick that it was in his best interests
to obtain counsel to represent both himself and the Defaulting Defendants. See Aug. 19, 2010
Ct. Tr. 2:7-16, 18:22-19:6 (excerpt attached as Exhibit B). After hearing argument, the Court
granted Bernina’s motion for a Temporary Restraining Order. See Temporary Restraining Order
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properly served with a summons and a copy of the Complaint by way of personal service on
Riddick, who is the official registered agent for all three of the Defaulting Defendants. Bernina
filed returns of service on that same day. See Executed Summonses Doc. Nos. 18-21 (also
attached as Exhibit C). Based on the service date of August 19, 2010, appearances and answers
6. On August 31, 2010 and September 3, 2010 the Court held further status
hearings and took up the issue of Bernina’s request for a preliminary injunction. At both of these
hearings the Court (as it had already previously done on multiple occasions) advised Riddick that
he could not represent the Defaulting Defendants and advised him of the need to obtain counsel
to appear on behalf of the Defaulting Defendants. See, e.g., Sept. 3, 2010 Ct. Tr. at 5:23-7:24
(excerpt attached as Exhibit D). The Court also granted all Defendants an extension of time until
September 16, 2010 to answer or otherwise plead to the Complaint and explicitly advised
Riddick that “all the parties have the responsibility to file a responsive pleading.” Id. Riddick
answer to the Complaint on behalf of himself. However, as of this date, Defaulting Defendants
have failed to appear, answer, or otherwise plead, and are therefore in default. See Owners Ins.
Co. v. Complete Mechanical Services, Inc., No. 08 C 4201, 2008 WL 4821654, at *1 (N. D. Ill.
Oct. 31, 2008) (Shadur, J.) (holding a defendant who failed to properly appear at court hearings
or file a proper response to the complaint to be default) (attached as Exhibit E); see also WMS
Gaming, Inc. v. WPC Prods. Ltd., 542 F.3d 601, 604-605 (7th Cir. 2008) (district court properly
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entered default judgment against defendants who were properly served but failed to appear or
Complaint filed in the instant action have not been denied and, indeed, are deemed admitted. See
Dundee Cement Co. v. Howard Pipe & Concrete Products, Inc., 722 F.2d 1319, 1323 (7th Cir.
1983) (noting that when there has been a default “the factual allegations of a complaint relating
to liability are taken as true”). Specifically, the Complaint alleged that the Defaulting
Defendants (1) had made false allegations of copyright infringement and threats of litigation
against Bernina and its authorized dealers; (2) had engaged in misuse of copyright to extort
money and gain concessions from Bernina; (3) had engaged in bad faith publication of
defamatory statements about Bernina; and (4) had maliciously and tortiously interfered with
a declaratory judgment of non-infringement alleging that Imageline does not have any
protectable rights in the individual underlying images contained in Imageline’s six copyright
registrations, which include registrations for “Imageline Design Gallery” (Reg. No. VA 841-528)
and “Imageline Master Gallery” (Reg. No. VA 751-565), issued in 1997 and 1996 respectively.
Id. at ¶¶ 30, 44. Bernina also alleged in Count I, that Bernina has not reproduced any of the
images contained in the six registrations that were registered by Imageline, prepared derivative
works based upon the images, distributed copies of the images to the public, or engaged in any of
the other activities that are reserved for the owner of copyright pursuant to 15 U.SC. § 106. Id.
at ¶ 45. The relief requested by Bernina in Count I was, inter alia, that the Court determine and
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adjudge that Plaintiff has not infringed upon protectable creative authorship lawfully owned by
10. Counts II and III of the Complaint alleged that all Defendants including
the Defaulting Defendants are liable for Defamation, Defamation Per Se, and Tortious
Interference with Business Relationships due to, among other things, the Defaulting Defendants’
false statements to third parties, including the dealers who sell Bernina’s products (with whom
Bernina maintains contractual relationships), indicating that (1) Bernina has engaged in willful
copyright infringement; (2) Bernina and its corporate officers have acted unethically; (3) Bernina
and its corporate officers have ignored the best interests of the dealers and has exposed the
dealers to legal liability; (4) Bernina and its corporate officers have knowingly made false
statements to the Bernina dealers; (5) Bernina and its corporate officers have directly caused
damage to the Bernina independent dealers; and (6) Bernina and its corporate officers have
engaged in unlawful activities. Id. at ¶¶ 47-59. Part of the relief that was requested by Bernina
in Counts II and III was a permanent injunction enjoining Defendants, jointly and severally, and
their agents, servants, employees, officers, attorneys, successors, and assigns, from making
further defamatory allegations against Bernina including, but not limited to making false
noninfringement and from making contact with Bernina’s authorized dealers for the purpose of
defendants [are] liable to plaintiff as to each cause of action alleged in the complaint.” Dundee
Cement Co., 722 F.2d at 1323 (citing Breuer Electric Mfg. Co. v. Toronado Systems of Am., Inc.,
687 F.2d 182, 186 (7th Cir. 1982)). The decision to enter a default judgment lies within the
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discretion of the district court. American National Bank and Trust Co. of Chicago v. Alps
Electric Co., Ltd., No. 99 C 6990, 2002 WL 484845, at *2 (N.D. Ill. Mar. 29, 2002) (attached as
Exhibit F). Factors that courts may consider include the amount of money potentially involved,
the presence or absence of disputed factual issues or issues of public importance, whether the
default was largely technical, whether the plaintiff was substantially prejudiced by the delay, and
whether the grounds for default are clearly established. Id. at *1.
12. In this case, Defaulting Defendants have (1) been properly served with
process, (2) been given numerous explicit warnings and admonishments about the need for an
appearance and to file a responsive pleading (via the Court’s statements to the registered agent
and sole member/primary shareholder for all three Defaulting Defendants), and (3) have already
been granted an extension of time to answer or otherwise plead to the Complaint. Nonetheless,
Defaulting Defendants have failed to appear in this action and have also failed to file an answer
to the Complaint or otherwise plead by the extended and Court-ordered due date of September
16, 2010. It is clear that this failure to appear or answer the Complaint is not a mere technicality
but rather a willful disregard for this litigation and the procedures of this Court. See Owners Ins.
Co., 2008 WL 4821654, at *1 (citing Sun v. Board of Trustees of University of IL, 473 F.3d 799,
811 (7th Cir. 2007); Davis v. Hutchins, 321 F.3d 641, 646 (7th Cir. 2003) (finding default
judgment an appropriate remedy where party chooses to disregard litigation and procedures of
13. Pursuant to Rule 54(b) that “there is no just reason to delay” final
judgment against the Defaulting Defendants even though other claims remain pending against
Riddick. See Owners Ins. Co., 2008 WL 4821654, at *2 (finding that in a similar case where one
of several defendants was in default for failing to properly appear and respond to the Complaint,
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there was no just reason to delay final judgment and it was appropriate to direct final judgment in
14. Accordingly, Bernina requests that the Court (1) hold Defaulting
Defendants in default; (2) deem Bernina’s well-pleaded allegations in the Complaint pertaining
to the Defaulting Defendants as true, including, but not limited to Bernina’s well-pleaded
allegation that Defaulting Defendants have no protectable interests in the individual images
contained in the copyright registrations at issue; (3) find the Defaulting Defendants liable for the
claims asserted against them in the Complaint; and (4) grant Bernina the relief requested with
respect to its claims against Defaulting Defendants including a declaratory judgment order
holding that Bernina is not-liable for infringement of any of the six copyright registrations
Bernina has suffered, and will continue to suffer irreparable harm, Bernina requests that the
Court issue a permanent injunction enjoining Defaulting Defendants, jointly and severally, and
their agents, servants, employees, officers, attorneys, successors, and assigns, from making
further defamatory allegations against Bernina including, but not limited to, making false
allegations of copyright infringement and/or statements inconsistent with the judgment of non-
infringement and from making contact with Bernina’s authorized dealers for the purpose of
16. Should the Court find that entry of default is appropriate against the
Defaulting Defendants, Bernina requests that the Court award costs of the action and attorney’s
fees to Bernina pursuant to 17 U.S.C. § 505, which allows the recovery of full costs by or against
any party in a civil copyright action as well as an award a reasonable attorney’s fee to the
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prevailing party as part of the costs, and the law of this Circuit. See Riviera Distribs. v. Jones,
517 F.3d 926 (7th Cir. 2008) (affirming award of attorney’s fees to party found not liable for
copyright infringement).
17. Further, should the Court find that entry of default is appropriate against
the Defaulting Defendants, Bernina requests a reasonable period of time to prove up its damages
against the Defaulting Defendants and to tender a proposed declaratory judgment order as sought
Bernina’s damages and for the entry of final judgment against Defaulting Defendants.
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CERTIFICATE OF SERVICE
Imageline Incorporated
Islandview Technologies LLC
Islandview Designs LLC
George P. Riddick III
202 England Street Ste A
Ashland, VA 23005-0000
griddick@imageline2.com
Copyrights@imageline2.com
info@imageline2.com
griddick@islandview2.com
via electronic mail before 4:00 p.m. CT and Federal Express Overnight Mail this
September 17, 2010.