>"He lost the lawsuit because he never filed an appearance." //

Is that how law works in USA, forget finding if the claimant has a case just destroy the little guy?

As this was a tort case, assuming it's like English law (big assumption), then the measure of guilt is the balance of probabilities. On balance with the evidence available did the defendant commit copyright infringement? Doesn't appear so - there's one DVD that no one can actually link to the supplier.

Also "He lost the lawsuit". Wasn't he just the CEO of an LLC?