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G&G Closed Circuit Events, LLC v. Gonzalez Ruiz

Citation: 379 F. Supp. 3d 1061Docket: Case No.: 18-CV-464-CAB-MDD

Court: District Court, S.D. California; March 13, 2019; Federal District Court

Narrative Opinion Summary

In a case involving unauthorized broadcast claims, the United States District Court denied the defendant's motion for summary judgment against claims by a commercial exhibition rights holder. The plaintiff alleged unauthorized display of a championship fight program at a restaurant, invoking violations of 47 U.S.C. Sections 605 and 553, conversion, and California Business and Professions Code 17200. The court applied Federal Rule of Civil Procedure 56, determining that genuine disputes of material fact regarding the defendant's control of the establishment precluded summary judgment. The defendant's arguments, including lack of ownership on the event date and exceptions for internet broadcast under Sections 605 and 553, were unpersuasive. Evidence indicated the defendant retained control over the establishment as a sole proprietor, making him potentially liable for unauthorized broadcasts. The court ruled that the unauthorized public display violated Section 605, regardless of personal viewing permissions. Additionally, the plaintiff's standing was upheld, with the court finding no merit in the defendant’s arguments concerning broadcast delays. The court concluded that the plaintiff's licensing agreement authorized actions against unauthorized live broadcasts. Consequently, the defendant's motion for summary judgment was denied, leaving the federal and state claims to proceed to trial.

Legal Issues Addressed

Liability under Sole Proprietorship for Unauthorized Broadcasts

Application: Ruiz was found potentially liable as the sole proprietor of Cotija, despite leasing the premises, as he retained control and ownership elements over the establishment.

Reasoning: Despite the lease, evidence suggests Ruiz retained control over Cotija; he was listed as the primary owner in the California Department of Alcoholic Beverage Control system, was billed for business taxes, and had utility bills in his name up until mid-August 2017.

Standard for Summary Judgment under Federal Rule of Civil Procedure 56

Application: The court applied the rule to determine that Ruiz was not entitled to summary judgment as there were genuine disputes of material fact regarding his control and ownership of the establishment.

Reasoning: The Court applied the summary judgment standard under Federal Rule of Civil Procedure 56, stating that a motion should be granted only if there is no genuine dispute regarding any material fact.

Standing to Sue under Licensing Agreements

Application: G. G.'s standing to sue was upheld, despite the alleged delay in the Program's display, as its licensing agreement permitted actions against unauthorized broadcasts occurring live.

Reasoning: Ruiz's argument that G. G lacks standing due to the Program being shown on a delay is flawed; Hernandez's unsupported claim about the timing and lack of evidence does not justify summary judgment on this matter.

Unauthorized Interception of Communications under 47 U.S.C. Sections 605 and 553

Application: The court held that Cotija's unauthorized display of the Program violated Section 605, as the public display was not authorized, even if Hernandez had personal permission to view the Program.

Reasoning: Ruiz seeks summary judgment, arguing that the Program's internet broadcast exempts it from sections 553 and 605. The court finds no binding authority on this issue but references J. J Sports Productions, Inc. v. Jaschkowitz, which similarly involved unauthorized internet display of a program.