Justia U.S. 9th Circuit Court of Appeals Opinion Summaries

Facebook filed suit against Power over a promotional campaign where Power accessed Facebook users’ data and initiated form emails and other electronic messages promoting its website. The court concluded that Power did not violate the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (CAN-SPAM), 15 U.S.C. 7706(g)(1), because neither e-mails nor internal messages sent through Power’s promotional campaign were materially misleading. Therefore, the court reversed the district court's judgment as to this claim and remanded for entry of judgment for defendants. The court held that a defendant can run afoul of the Computer Fraud and Abuse Act of 1986 (CFAA), 18 U.S.C. 1030(a)(2)(C), when he or she has no permission to access a computer or when such permission has been revoked explicitly. The court also held that a violation of the terms of use of a website - without more - cannot be the basis for liability under the CFAA. In this case, after receiving the cease and desist letter from Facebook, Power intentionally accessed Facebook’s computers knowing that it was not authorized to do so, making Power liable under the CFAA. Therefore, the court affirmed in part the holding of the district court with respect to the CFAA. The court also affirmed in part the district court’s holding that Power violated California Penal Code section 502 where Power knowingly accessed and without permission took, copied, and made use of Facebook’s data; affirmed the district court’s holding that Power's CEO, Steven Vachani, is personally liable for Power’s actions; and affirmed the discovery sanctions imposed against Power for non-compliance during a Rule 30(b)(6) deposition. However, the court vacated the injunction and the award of damages, remanding the case to the district court to reconsider appropriate remedies. View "Facebook, Inc. v. Vachani" on Justia Law

Telesocial, a San Francisco start-up, entered into a non-disclosure agreement (NDA) regarding a possible agreement to acquire Telesocial's software application named "Call Friends." This dispute stems from Telesocial's allegations that Orange violated federal and state laws by stealing Telesocial's technology to create its own product called "Party Call." Orange and its employees seek a writ of mandamus under 28 U.S.C. 1651 directing the district court to vacate its order denying Orange’s motion to dismiss, and direct an entry of judgment dismissing Telesocial’s First Amended Complaint (FAC). The court applied the Bauman v. United States factors and concluded that the district court did not commit clear legal error in determining that the NDA did not cover the claims at issue; Orange has the ability on direct appeal to attain the relief it desires; Orange will not be prejudiced in a way that is not correctable on appeal; and the district court’s decision does not raise a novel issue that affects the international business community. Accordingly, the court denied Orange’s petition for writ of mandamus. View "Orange, S.A. v. USDC for the Northern Dist. of CA, San Francisco" on Justia Law

Google's AdWords program is an auction-based program through which advertisers would bid for Google to place their advertisements on websites. Pulaski and others filed a putative class action alleging that Google misled them as to the types of websites on which their advertisements could appear. On appeal, Pulaski challenged the district court's denial of class certification, holding that on the claim for restitution, common questions did not predominate over questions affecting individual class members. The court held that a court need not make individual determinations regarding entitlement to restitution. Instead, restitution is available on a class wide basis once the class representative makes the threshold showing of liability. Therefore, the court concluded that the district court erred in holding that such individual questions would predominate. In Yokoyama v. Midland National Life Insurance Co., the court held that damage calculations alone cannot defeat certification. The court concluded that Yokoyama remains the law of the court and the district court erred in not following the rule in Yokoyama. Finally, the court concluded that the proposed method for calculating restitution was not “arbitrary” under Comcast Corp. v. Behrend. Accordingly, the court reversed and remanded. View "Pulaski & Middleman, LLC v. Google, Inc." on Justia Law

The Internet Corporation for Assigned Names and Numbers (ICANN) creates and assigns top level domains (TLDs), such as “.com” and “.net.” Plaintiff, a registry specializing in “expressive” TLDs, filed suit alleging that the 2012 Application Round for the creation of new TLDs violated federal and California law. The district court dismissed the complaint. The court rejected plaintiff's claims for conspiracy in restraint of trade or commerce under section 1 of the Sherman Act, 15 U.S.C. 1, because plaintiff failed to allege an anticompetitive agreement; the court rejected plaintiff's claim under Section 2 of the Sherman Act, because ICANN’s authority was lawfully obtained through a contract with the DOC and did not unlawfully acquire or maintain its monopoly; the trademark and unfair competition claims were not ripe for adjudication because plaintiff has not alleged that ICANN has delegated or intends to delegate any of the TLDs that plaintiff uses; and the complaint failed to allege a claim for tortious interference or unfair business practice. Accordingly, the court affirmed the judgment. View "name.space, Inc. V. ICANN" on Justia Law

MTM filed suit against online retailer Amazon under the Lanham Act, 15 U.S.C. 1051 et seq., alleging that Amazon had infringed MTM's trademark. MTM argues that initial interest confusion might occur because Amazon lists the search term used – here the trademarked phrase “mtm special ops” – three times at the top of its search page. The district court granted summary judgment in favor of Amazon. The court considered five non-exhaustive Sleekcraft factors to determine whether a trademark gives rise to a likelihood of confusion: the strength of the mark, relatedness/proximity of the goods, evidence of actual confusion, defendant’s intent, and the degree of care exercised by purchasers. The court concluded that there are genuine issues of material fact as to whether there is a likelihood of confusion under the initial interest confusion theory. Finally, the court held that the customer-generated use of a trademark in the retail search context is a use in commerce. In this case, Amazon's purpose is not less commercial just because it is selling wares, not advertising space. Therefore, the court declined to affirm the district court on the alternative ground that Amazon’s use is not a use in commerce. Accordingly, the court reversed and remanded. View "Multi Time Machine v. Amazon.com" on Justia Law

Plaintiff, an aspiring model, filed a failure to warn suit against Internet Brands, the company who owns the website modelmayhem.com. Plaintiff had posted information about herself on the website and two rapists used the website to lure her to a fake audition where they drugged her, raped her, and recorded her for a pornographic video. The district court dismissed plaintiff's action because her claim was barred by the Communications Decency Act (CDA), 47 U.S.C. 230(c). The court held that section 230(c)(1) precludes liability that treats a website as the publisher or speaker of information users provide on the website. This section protects websites from liability for material posted on the website from someone else. In this case, plaintiff does not seek to hold Internet Brands liable as a "publisher or speaker" of content someone posted on modelmayhem.com, or for Internet Brands' failure to remove content on the website. Plaintiff also does not claim to have been lured by any posting that Internet Brands failed to remove. Instead, plaintiff attempts to hold Internet Brands liable for failing to warn her about how third parties targeted and lured victims through the website. The duty to warn allegedly imposed by California law would not require Internet Brands to remove any user content or otherwise affect how it publishes such content. Therefore, the CDA does not bar plaintiff's failure to warn claim and the CDA was not a valid basis to dismiss the complaint. Accordingly, the court reversed and remanded.View "Doe v. Internet Brands, Inc." on Justia Law

Plaintiffs, small business owners, filed a class action suit alleging that Yelp, an online forum, extorted or attempted to extort advertising payments from them by manipulating user reviews and penning negative reviews of their businesses. Plaintiffs filed suit against Yelp for violations of California's Unfair Competition Law (UCL), Cal. Bus. & Prof. Code 17200 et seq.; civil extortion; and attempted civil extortion. The district court dismissed the suit for failure to state a claim. The court concluded that Yelp's manipulation of user reviews, assuming it occurred, was not wrongful use of economic fear, and that the business owners pled insufficient facts to make out a plausible claim that Yelp authored negative reviews of their businesses. Therefore, the court agreed with the district court that these allegations did not support a claim for extortion. The court held that, to state a claim of economic extortion under both federal and California law, a litigant must demonstrate either that he had a pre-existing right to be free from the threatened harm, or that the defendant had no right to seek payment for the service offered. Given these stringent standards, plaintiffs failed to sufficiently allege that Yelp wrongfully threatened economic loss by manipulating user reviews. None of the business owners have stated a claim of "unlawful" conduct on the basis of extortion. Therefore, the court dismissed the separate claims of civil extortion and attempted civil extortion. Further, plaintiffs' UCL claim failed under the "unfair" practices prong. Accordingly, the court affirmed the judgment of the district court.View "Levitt v. Yelp! Inc." on Justia Law

Plaintiff filed suit on behalf of himself and a putative class of consumers whose Touchpad orders had been cancelled, alleging that Barnes & Noble had engaged in deceptive business practices and false advertising. On appeal, Barnes & Noble challenged the district court's denial of its motion to compel arbitration against plaintiff under the arbitration agreement contained in its website's Terms of Use. The court held that there was no evidence that the website user had actual knowledge of the agreement. The court also held that where a website makes its terms of use available via a conspicuous hyperlink on every page of the website but otherwise provides no notice to users nor prompts them to take any affirmative action to demonstrate assent, even close proximity of the hyperlink to relevant buttons users must click on - without more - is insufficient to give rise to constructive notice. Therefore, the court concluded that there is nothing in the record to suggest that those browsewrap terms at issue are enforceable by or against plaintiff, much less why they should give rise to constructive notice of Barnes & Noble's browsewrap terms. In light of the distinguishing facts, the district court did not abuse its discretion in rejecting Barnes & Noble's estoppel argument. Accordingly, the court held that plaintiff had insufficient notice of Barnes & Noble's Terms of Use, and thus did not enter into an arbitration agreement. The court affirmed the judgment of the district court.View "Nguyen v. Barnes & Noble Inc." on Justia Law

Plaintiffs filed suit against Zynga and Facebook under the Wiretap Act, 18 U.S.C. 2511(3)(a), and the Stored Communications Act, 18 U.S.C. 2702(a)(2), two chapters within the Electronic Communications Privacy Act of 1986 (ECPA). Plaintiffs alleged violations of the ECPA based on Facebook and Zynga's disclosure of the information contained in referer headers to third parties. On appeal, plaintiffs argued that the district court erred in holding that Facebook, Zynga, and the third parties were the intended recipients of the referer headers containing the user's Facebook IDs and the URLs. The court held that under the ECPA, the term "contents" refers to the intended message conveyed by the communication, and does not include record information regarding the characteristics of the message that is generated in the course of the communication. The referer header information that Facebook and Zynga transmitted to third parties included the user's Facebook ID and the address of the webpage from which the user's HTTP request to view another webpage was sent. This information does not meet the definition of "contents," because these pieces of information are not the "substance, purport, or meaning" of a communication. Therefore, the court concluded that plaintiffs have failed to state a claim because they did not allege that either Facebook or Zynga disclosed the "contents" of a communication, a necessary element of their ECPA claims. Accordingly, the court affirmed the district court's dismissal with prejudice. View "In re: Zynga Privacy Litigation" on Justia Law

Plaintiff appealed the dismissal of his putative class action alleging that ebay.com's Automatic Bidding system breached two provisions of eBay's User Agreement, violated California's Unfair Competition Law (UCL), Cal. Bus. Prof. Code 17204, and constituted intentional interference with prospective economic advantage. The court concluded that the district court properly dismissed plaintiff's claim for breach of contract where the two provisions at issue in the User Agreement did not constitute an enforceable promise by eBay. The court also concluded that plaintiff failed to state a claim under the UCL where, even if the User Agreement had represented that eBay would directly transmit bids to sellers, plaintiff has not plausibly alleged that he relied on this representation. Moreover, since a reasonable person in plaintiff's position could not have relied on such a representation, it would not have been material. Finally, the court concluded that plaintiff failed to set forth a claim for intentional interference with prospective economic advantage. Accordingly, the court affirmed the judgment of the district court. View "Block v. Ebay, Inc." on Justia Law