Cstechus, Inc. v. NorthernZone, LLC

Opinion

1 2 3 4

7 UNITED STATES DISTRICT COURT 8 SOUTHERN DISTRICT OF CALIFORNIA 9

10 CSTECHUS, INC., a California Case No.: 21-cv-00122-H-AHG 11 corporation, 12 ORDER GRANTING PLAINTIFF’S Plaintiff, MOTION FOR LEAVE TO 13 v. CONDUCT LIMITED DISCOVERY 14 ON DAMAGES NORTHERNZONE, LLC, 15 Defendant. [Doc. No. 11.] 16 17 On January 21, 2021, Plaintiff CSTECHUS filed a complaint for patent infringement 18 against Defendant NorthernZone LLC, alleging infringement of U.S. Patent No. 9,585,365. 19 Doc. No. 1, Compl.) In the complaint, Plaintiff alleges that Defendant is infringing the 20 ’365 patent by manufacturing, using, offering for sale, and selling a dog collar advertised 21 on Amazon as the “E-KOMG Dog Recovery Collar for Surgery, Dogs and Cats Soft 22 Recovery Collar Protective Collar for Wound Healing” (the accused product). (Id. ¶¶ 8-9, 23 16, Ex. B.) On March 26, 2021, the Clerk entered default as to Defendant. (Doc. No. 9.) 24 On May 26, 2021, Plaintiff filed a motion for leave to conduct discovery on the issue 25 of damages. (Doc. No. 11.) Specifically, Plaintiff requests limited discovery on the online 26 sales on Amazon and other internet websites used by Defendant, as well as any institutions 27 with which Defendant holds financial accounts, in order to ascertain Defendant’s revenue 28 from its sales of the accused product. (Id. at 3-4.) Plaintiff argues that it needs this 1 || discovery to reveal the full extent of damages it can recovery from Defendant. (ld. at 4.) 2 ||In addition, Plaintiff requests a 90-day extension of time (until August 24, 2021) to file a 3 ||motion for default judgment against Defendant. (Id. at 4-5.) 4 Federal Rule of Civil Procedure 26 governs the scope and timing of discovery. A 5 ||party “may not seek discovery from any source before the parties have conferred as 6 required by Rule 26(f) . . . [unless] authorized by these rules, by stipulation, or by court 7 ||order.” Fed. R. Civ. P. 26(d)(1). Federal Rule of Civil Procedure 55(b)(2) provides that 8 ||“[t]he court may conduct hearings or make referrals . . . when, to enter or effectuate 9 [default] judgment, it needs to: .. . determine the amount of damages.” Fed. R. Civ. P. 10 55(b)(2). “[P]ursuant to the authority vested in Rule 26(d)(1) and Rule 55(b)(2), courts 11 || have allowed discovery on the issue of damages after the entry of default.” Oakley, Inc. v. 12 Moda Collection, LLC, No. SACV16160JLSJCGX, 2016 WL 7495835, at *7 (C.D. Cal. 13 || June 9, 2016); see also Nutrition Distribution LLC v. Musclegen Rsch. Inc., No. 16-CV- 14 |}3113-JLS (JIMA), 2017 WL 4391711, at *2 (S.D. Cal. Oct. 3, 2017) (“Other courts have 15 || allowed discovery on the issue of damages after the entry of default.”); Tech. LED Intell. 16 || Prop., LLC v. Revogi, LLC, No. 18-CV-03827-JSC, 2019 WL 2716610, at *6 (N.D. Cal. 17 || June 27, 2019) (‘Courts have allowed limited discovery on the issue of damages after the 18 |/entry of default.”). 19 For good cause shown, the Court grants Plaintiffs motion for leave to conduct 20 ||discovery. Plaintiff may conduct limited discovery on the online sales on Amazon and 21 || other internet websites used by Defendant, as well as any institutions with which Defendant 22 ||holds financial accounts, in order to ascertain Defendant’s revenue from its sales of the 23 ||accused product. In addition, the Court grants the requested extension of time. Plaintiff 24 || must file its motion for default judgment by August 24, 2021. 25 IT IS SO ORDERED. 26 || DATED: May 28, 2021 | | |. | | 27 MARILYN VL. HUFF, Distric e 28 UNITED STATES DISTRICT COURT