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ARTICLE · 10 APRIL 2018

Deliberately Ignoring Lawsuit Earns A $100 Million Consequence

The Fifth Circuit affirmed, rejecting all of Gotech's purported grounds for relief.

United StatesIntellectual Property

Addressing whether a defendant could obtain relief from a $100 million default judgment in a lawsuit it deliberately ignored, the US Court of Appeals for the Fifth Circuit affirmed a district court's refusal to find the judgment "void" for lack of standing, federal question jurisdiction, personal jurisdiction or improper service. Nagravision SA v. Gotech Int'l Tech. Ltd., Case No. 16-20817 (5th Cir., Feb. 7, 2018) (Reavley, J).

Nagravision SA, a Swedish company, filed suit against Gotech International Technology Ltd. and Zhuhai Gotech Intelligent Technology Co. Ltd., both Chinese companies (collectively, Gotech), alleging violations of the Digital Millennium Copyright Act (DMCA) and the Federal Communications Act. Gotech deliberately ignored the lawsuit, resulting in a $100 million default judgment in favor of Nagravision. After Nagravision initiated enforcement proceedings in a Hong Kong court and successfully froze Gotech's assets, Gotech filed a motion under Rule

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