On May 18, Microsoft Corp. obtained a default judgment against Mark McGee, the owner and operator of the Ohio-based ComputerMe.net, for selling counterfeit Microsoft software. The Southern District of Ohio found that in August 2006, “Defendant distributed to an investigator counterfeit and infringing Office 2000 Pro software. This willful infringement was not an isolated incident, but rather is part of a continuous and ongoing business practice of Defendant in blatant violation of Microsoft’s copyrights and trademarks.”
Judge Michael Barrett entered the default judgment because Microsoft served Mr. McGee with a copy of its summons and complaint but Mr. McGee failed to answer.
In doing so, the court found that Mr. McGee’s violations of the Lanham and Copyright Acts were willful. Nonetheless, Microsoft sought only the maximum amount of statutory damages available for non-willful infringement. Specifically, it asked for statutory damages of $100,000 for each of the five trademarks at issue and $30,000 for the seven copyrights at issue, for a total of $710,000. The court gave Microsoft what it asked for, plus costs and attorney’s fees.
The lessons here? First, don’t traffic in counterfeit goods. Second, don’t allow a default judgment to be taken against you. The cost of a lawyer will amount to far less than the judgment the court will award if you don’t participate in the case.
The case cite is Microsoft v. McGee, No. 06-611, 2007 WL 1469397 (S.D. Ohio).