Twentieth Century Fox Film Corporation et al v. Gowell Electronic Limited

Filing 11

PERMANENT INJUNCTION PURSUANT TO STIPULATION filed by Judge Florence-Marie Cooper against Defendant Gowell Electronic Limited. (mg)

1 CALDWELL LESLIE & PROCTOR, PC 2 E-mail: [e-mail] 3 E-mail: [e-mail]

CHRISTOPHER G. CALDWELL, SBN 106790 SANDRA L. THOLEN, SBN 180518 HEATHER PEARSON, SBN 235167 1000 Wilshire Blvd., Suite 600 Telephone: [phone] Attorneys for Plaintiffs

4 E-mail: [e-mail] 5 Los Angeles, California 90017-2463 6 Facsimile: [phone] 7 8

DANIEL E. ROBBINS, SBN 156934 9 15301 Ventura Boulevard, Building E Sherman Oaks, CA 91403 10 Telephone: [phone] Of Counsel to Plaintiffs
12 13 14 15 TWENTIETH CENTURY FOX FILM 16 17 18 19 20 21 22 23 24 GOWELL ELECTRONIC LIMITED, a 25 26 27 28
CALDWELL LESLIE & PROCTOR

UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA Case No. 2:08CV04074 FMC (RZx) PERMANENT INJUNCTION PURSUANT TO STIPULATION

CORPORATION, a Delaware corporation; UNIVERSAL CITY STUDIOS LLLP, a Delaware limited liability limited partnership; WALT DISNEY PICTURES, a California corporation; WARNER BROS. ENTERTAINMENT INC., a Delaware corporation; and PARAMOUNT PICTURES CORPORATION, a Delaware corporation, Plaintiffs, v.

China Corporation,

Defendant.

1

WHEREAS Plaintiffs Twentieth Century Fox Film Corporation, Universal

2 City Studios LLP, Walt Disney Pictures, Warner Brothers Entertainment Inc., and 3 Paramount Pictures Corporation, (collectively "Plaintiffs") filed the above-captioned 4 action against Defendant Gowell Electronic Limited ("Defendant") on or about June 5 19, 2008 (the "Action"); 6

WHEREAS, Plaintiffs and Defendant (collectively "the Parties") promptly

7 initiated discussions in an effort to resolve this dispute without unnecessary 8 expenditure of time or money and without any admission of liability or an admission 9 of the merit or lack of merit of any of the claims or defenses asserted; 10

WHEREAS, as a result of those discussions, the Parties have reached an

11 agreement for the settlement and dismissal of the Action, the full terms and 12 conditions of which are set forth in a document entitled "Settlement Agreement and 13 Mutual Releases" dated as of September 22, 2008 (the "Settlement"); 14

WHEREAS, the Parties' Settlement is conditioned upon entry by the Court of WHEREAS, the Parties stipulate and agree that this Court has jurisdiction to

15 a permanent injunction on the terms and conditions set forth herein; and 16 17 enter a permanent injunction on the following terms and conditions and that the 18 Court shall have continuing jurisdiction for purposes of enforcing this injunction and 19 the Parties' Settlement; 20 21 22 23 24 25 26 27 28
CALDWELL LESLIE & PROCTOR

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1

THEREFORE, the Parties hereby stipulate and agree and request that the

2 Court enter the attached [Proposed] Permanent Injunction Pursuant to Stipulation 3 ("Permanent Injunction"). 4 5 6 7 8 9 10 11 12 13 14 DATED: ____________, 2008 15 16 17 18 19 20 21 22 23 24 25 26 27 28
CALDWELL LESLIE & PROCTOR

IT IS SO STIPULATED. DATED: ____________, 2008 Respectfully submitted, CALDWELL, LESLIE, & PROCTOR PC

By _______________________________ SANDRA L. THOLEN Attorneys for Plaintiffs

KAUTH, POMEROY, PECK & BAILEY, LLP

By _______________________________ JOEL A. KAUTH Attorneys for Defendant GOWELL ELECTRONIC LIMITED DATED: ____________, 2008 GOWELL ELECTRONIC LIMITED By _______________________________ Its _______________________________

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Pursuant to the foregoing stipulation of the Parties and for good cause shown, PERMANENT INJUNCTION 1. IT IS HEREBY ORDERED that Defendant Gowell Electronic Limited,

2 the Court hereby enters a Permanent Injunction as follows: 3 4

5 its agents, servants, directors, officers, principals, employees, representatives, 6 subsidiaries and affiliated companies, assigns, and those acting in concert with them 7 or at their direction (collectively "Gowell"), are hereby restrained and enjoined from 8 violating any term of the Content Scramble System ("CSS") licensing agreement 9 between Gowell and the DVD Copy Control Association (the "DVD CCA 10 License"), including, without limitation (a) section 6.2 of version 2.9 of the CSS 11 Specifications (effective January 24, 2007) as incorporated by section 4.2 of the 12 DVD CCA License and (b) any successor versions of the CSS Specifications that 13 relate to, augment or modify section 6.2 of the CSS Specifications (the "Copy 14 Protection Requirements"). 15

2.

IT IS FURTHER ORDERED that, commencing with the quarter

16 beginning October 1, 2008, and continuing for five years thereafter, Gowell shall, 17 within thirty (30) days of the end of each fiscal quarter, provide to Plaintiffs' 18 designated representative(s) quarterly reports, executed by an officer of Gowell 19 under penalty of perjury under the laws of the State of California (a) identifying, by 20 model number, each DVD Product incorporating the CSS technology that is released 21 by Gowell during that quarter; and (b) attesting that each such model properly 22 implements those Copy Protection Requirements mandated by the DVD CCA 23 License and the CSS Specifications. In the event Gowell releases a DVD Product to 24 which changes have been made that do not affect the functions governed by the CSS 25 Specifications and that is otherwise operationally identical in terms of software, 26 hardware and operations relating to functions governed by the CSS Specifications to 27 a DVD Product that has been previously submitted for testing under paragraphs 3 28
CALDWELL LESLIE & PROCTOR

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1 and 4 below, Gowell shall also identify by model number, the original DVD product 2 on which such product is based. 3

3.

IT IS FURTHER ORDERED THAT for a period of two years from the

4 date this Permanent Injunction is entered, Gowell shall permit Plaintiffs' designated 5 representative(s) to review and test any new or re-engineered Gowell product that 6 incorporates CSS technology before such product is transferred to any third party 7 pursuant to any commercial transaction. For purposes of this paragraph and 8 paragraph 4 below, the term "new or re-engineered Gowell product" shall not 9 include DVD Products to which changes have been made that do not affect the 10 functions governed by the CSS Specifications and that are otherwise operationally 11 identical in terms of software, hardware and operations relating to functions 12 governed by the CSS Specifications, to a DVD Product that has been previously 13 submitted for testing under paragraph 4, so long as such product is identified in the 14 quarterly reports submitted by Gowell under paragraph 2. The term "new or re15 engineered Gowell product" shall include any DVD Product to which any new audio 16 or video output governed by the CSS Specifications has been added or modified. In 17 the event that Gowell updates or upgrades the software or firmware of a DVD 18 Product, and such update or upgrade affects functions governed by the CSS 19 Specifications, Gowell shall notify Plaintiff's designated representative(s) and make 20 such update or upgrade available to Plaintiffs' designated representative(s). 21

4.

For purposes of Plaintiffs' testing and review under paragraph 3,

22 Gowell shall provide Plaintiffs' designated representative(s) with the results of 23 Gowell's own testing, if any, and at least two test samples of each new or re24 engineered Gowell product that incorporates CSS technology at least thirty days 25 before the product is transferred to any third party pursuant to any commercial 26 transaction. Plaintiffs' designated representatives shall complete the testing of each 27 test sample and provide the results of Plaintiffs' testing to Gowell within fifteen days 28 of the date such sample is received by Plaintiffs.
CALDWELL LESLIE & PROCTOR

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1

5.

The submission of test samples and test reports shall be for the sole

2 purpose of permitting Plaintiffs to verify that the product complies with the DVD 3 CCA License and the CSS Specifications. 4

6. 7.

Unless otherwise defined herein, all terms in this Permanent Injunction For purposes of this Permanent Injunction, Daniel Robbins, Jim C.

5 shall have the same meanings as are set forth in the DVD CCA License. 6 7 Williams and Andrea Avila (15301 Ventura Boulevard, Building E Sherman Oaks, 8 CA 91403) shall each be designated by Plaintiffs as their initial designated 9 representatives. Plaintiffs may change a designated representative at any time 10 without further order of the Court, by serving a notification of change of designated 11 representative upon Gowell in compliance with the notice provisions set forth in the 12 Parties' Settlement Agreement. 13

8.

Absent a further order by this Court, this Permanent Injunction shall

14 expire and be of no further force and effect upon the earlier of (1) five years from the 15 date of entry of this Permanent Injunction; or (2) cancellation and/or revocation of 16 Gowell's DVD CCA License. 17

9. 10.

This Permanent Injunction shall be effective without the posting of any Notwithstanding the subsequent dismissal of this Action by Plaintiffs,

18 bond or undertaking by Plaintiffs. 19 20 this Court shall retain continuing jurisdiction over the Parties and the Action for 21 purposes of modifying or enforcing this Permanent Injunction and/or enforcing the 22 Parties' Settlement Agreement. 23 24 IT IS SO ORDERED: 25 26 27 28
CALDWELL LESLIE & PROCTOR

DATED: 10/21/08

______________________________________ HONORABLE FLORENCE-MARIE COOPER United States District Court Judge

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1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
CALDWELL LESLIE & PROCTOR

DATED: October 14, 2008

Respectfully submitted, CALDWELL LESLIE & PROCTOR, PC CHRISTOPHER G. CALDWELL SANDRA L. THOLEN HEATHER PEARSON /s/ SANDRA L. THOLEN Attorneys for Plaintiffs By

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