MEMPHIS (LN) — U.S. District Judge Sheryl H. Lipman granted Strike 3 Holdings’ motion for early discovery in a copyright infringement case, imposing strict conditions to prevent the plaintiff from using the threat of unmasking a defendant to force a settlement.
Strike 3, a frequent litigant in the Western District of Tennessee, filed the motion to serve a third-party subpoena on AT&T Inc. to identify the subscriber behind a specific IP address. The company alleges the subscriber downloaded and distributed its adult movies without permission using the BitTorrent protocol.
Lipman noted that Strike 3 has filed dozens of similar cases in the district over the past two and a half years. In each, the company seeks to identify a "John Doe" defendant, often resulting in a voluntary dismissal before the merits are litigated.
"This pattern is suggestive of coercive settlement practices that this Court must guard against," Lipman wrote, citing previous orders in the district and the District of Connecticut.
While acknowledging Strike 3’s legitimate need to identify an infringer, the judge emphasized the risk of "abusive litigation practices" and "unnecessary embarrassment" for defendants who may be misidentified.
To balance these interests, Lipman issued a detailed protective order. Strike 3 is prohibited from initiating settlement discussions or contacting the defendant before the complaint is served, unless it obtains leave of court.
The order allows the defendant to proceed anonymously as "John Doe" for now. It also gives AT&T sixty days to identify the subscriber and serve them with the subpoena and a "Notice to Defendant."
AT&T must redact the subscriber’s name and address from the public docket and file an unredacted proof of service ex parte under seal. The ISP is not required to turn over the subscriber’s information to Strike 3 until the end of the sixty-day objection period, unless the defendant moves to quash the subpoena.
If no motion to quash is filed, AT&T must produce the information to Strike 3’s counsel for "Attorneys’ Eyes Only" review. The information cannot be disclosed to Strike 3, its employees, or agents, and can only be used for the purpose of protecting Strike 3’s rights in this specific action.
Strike 3’s time to serve the defendant under Federal Rule of Civil Procedure 4(m) is extended to thirty days after the expiration of the period for moving to quash or modify the subpoena.
Failure to comply with the conditions may result in sanctions, Lipman warned.
Strike 3 asserted in its filing that its "goal is not to embarrass anyone or force anyone to settle unwillingly," adding that it is "proud" of its films and does not want anyone to be humiliated.
The court noted that the risk of coercion exists even if the plaintiff acts in good faith.