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

Plaintiffs brought a putative class action against Bresnan alleging violations of the Electronic Communications Privacy Act, 18 U.S.C. 2520-21, the Computer Fraud and Abuse Act, 18 U.S.C. 1030, and Montana state law for invasion of privacy and trespass to chattels in connection with targeted advertising they received while using Bresnan's Internet service. The district court declined to enforce a choice-of-law clause in the service subscriber agreement, provided to all Bresnan customers, specifying that New York law should apply, and an arbitration clause. The court held that AT&T Mobility LLC v. Concepcion further limited the savings clause in the Federal Arbitration Act (FAA), 9 U.S.C. 1-2 et seq., and therefore, the court held that the FAA preempted Montana's reasonable expectations/fundamental rights rule and that the district court erred in not applying New York law because a state's preempted public policy was an impermissible basis on which to reject the parties' choice-of-law selection. Accordingly, the court vacated the district court's denial of Bresnan's motion to compel arbitration and remanded to the district court with instructions to apply New York law to the arbitration agreement. View "Mortensen, et al. v. Bresnan Communications, LLC" on Justia Law

Plaintiff appealed the district court's order dismissing her putative class claims against Yahoo!, alleging that Yahoo! violated the Stored Communications Act (SCA), 18 U.S.C. 2701-2712, when it disclosed some of her noncontent subscriber information to the government pursuant to allegedly invalid subpoenas. Plaintiff further argued that even if the subpoenas were valid, Yahoo! failed to comply with their terms when it produced the requested documents prior to the deadline set in the subpoenas. The court held that the good faith defense under 18 U.S.C. 2707(e) was met when the defendant complies with a subpoena that appeared valid on its face, in the absence of any indication of irregularity sufficient to put the defendant on notice that the subpoena may be invalid or contrary to applicable law. In this case, the court concluded that the district court properly dismissed plaintiff's SCA claims because Yahoo! was statutorily immune from suit because it produced the requested documents in good faith reliance on grand jury subpoenas. Yahoo!'s early compliance with the subpoenas did not vitiate Yahoo's immunity. Accordingly, the court affirmed the judgment. View "Sams v. Yahoo! Inc." on Justia Law

Plaintiffs, various film studios, alleged that the services offered and websites maintained by defendant and his company, isoHunt, induced third parties to download infringing copies of the studios' copyrighted works. This case concerned a peer-to-peer file sharing protocol known as BitTorrent. The court affirmed the district court's holding that plaintiffs had carried their burden of proving, on the basis of undisputed facts, defendant's liability for inducing others to infringe plaintiffs' copyrights. The court also affirmed summary judgment to plaintiffs on defendant's claims that he was entitled to the safe harbors provided by the Digital Millennium Copyright Act, 17 U.S.C. 512(a), (c), and (d). The court concluded that portions of the permanent injunction were vague or unduly burdensome, and therefore, modified the injunction in part. View "Columbia Pictures Industries v. Fung" on Justia Law

Plaintiffs filed a putative class action against Facebook and others complaining that Facebook's program, Beacon, was causing publication of otherwise private information about their outside web activities to their personal profiles without their knowledge or approval. Beacon operated by updating a member's personal profile to reflect certain actions the member had taken on websites belonging to companies that had contracted with Facebook to participate in the Beacon program. At issue on appeal was whether the district court abused its discretion in approving the parties' $9.5 million settlement agreement as "fair, reasonable, and adequate," either because a Facebook employee sat on the board of the organization distributing cy pres funds (DTF) or because the settlement amount was too low. The court concluded that objectors' contention that the settling parties were prohibited from creating DTF to disburse cy pres funds was without merit, and the district court did not abuse its discretion in so concluding. The court also concluded that the settlement was fundamentally fair; the notice in this case adequately apprised class members of all material elements of the settlement agreement and therefore complied with the requirements of Rule 23(e); and the district court properly limited its substantive review of the agreement as necessary to determine that it was "fair, adequate, and free from collusion." View "Lane, et al v. Facebook, Inc., et al" on Justia Law

Skydive Arizona sued SKYRIDE for false advertising, trademark infringement, and cybersquatting. SKYRIDE subsequently appealed the district court's grant of partial summary judgment, the jury's actual damages and profits awards, and the district court's damages enhancement. Skydive Arizona cross-appealed the district court's limitation of the permanent injunction to Skydive Arizona, and sought a nationwide injunction against SKYRIDE. The court reversed with regard to the district court's doubling of actual damages, and reinstated the jury's original actual damages award for false advertising, and for trademark infringement. The court affirmed the district court on all other claims. Thus, as modified in actual damages for false advertising, $2.5 million in actual damages for trademark infringement, $2,500,004 in lost profits for trademark infringement, and $600,000 in statutory damages for cybersquatting. Accordingly, the court affirmed in part and modified in part.

UMG filed suit against Veoh for direct and secondary copyright infringement where users of Veoh's service have in the past been able, without UMG's authorization, to download videos containing songs for which UMG owned a copyright. The district court granted summary judgment to Veoh after determining that it was protected by the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 512(c), "safe harbor" limiting service providers' liability for "infringement of copyright by reason of the storage at the direction of a user of material that resides on a system or network controlled or operated by or for the service provider." The court affirmed the district court's determination on summary judgment that Veoh was entitled to section 512(c) safe harbor protection where Veoh met all the section 512(c) requirements. The district court also affirmed the district court's dismissal of the claims of secondary liability against the Investor Defendants. The court further affirmed the district court's determination that, in this case, attorney's fees could not be awarded under Rule 68. The court remanded for the district court to consider in the first instance whether Veoh was entitled to Rule 68 costs excluding attorney's fees.

This case involved a proposed class action settlement between AOL and plaintiffs where the parties agreed that AOL would make a series of charitable donations. At issue was whether the district court abused its discretion in approving the proposed class action settlement, including a proposed cy pres settlement distribution. The court held that the cy pres distributions here did not comport with the court's cy pres standards. While the donations were made on behalf of a nationwide plaintiff class, they were distributed to geographically isolated and substantively unrelated charities. The court concluded that the district court judge did not have to recuse herself pursuant to 28 U.S.C. 455(a) or (b)(4), 5(iii). The court declined to address the issue of whether the class notice was sufficient. Accordingly, the court reversed in part, affirmed in part, and remanded.

This case stemmed from Suzlon's demand that Microsoft produce documents from the Microsoft Hotmail email account of Rajagopalan Sridhar, an Indian citizen imprisoned abroad. Microsoft objected to the production and the district court agreed, finding that Sridhar was entitled to the protections of the Electronic Communications Privacy Act (ECPA), 18 U.S.C. 2510-2522, even though he was a foreign citizen. The court held that the ECPA protected the domestic communications of non-citizens like Sridhar. Thus, the decision of the district court denying the production of documents was affirmed.

This case was brought pursuant to the Anticybersquatting Consumer Protection Act (ACPA), 15 U.S.C. 1125(d)(1) over the registered domain name "gopets.com." The main issue on appeal was whether the term "registration" applied only to the initial registration of the domain name, or whether it also applied to a re-registration of a currently registered domain name by a new registrant. The court concluded that such re-registration was not a "registration" within the meaning of section 1125(d)(1). Therefore, the court held that, because Edward Hise registered gopets.com in 1999, long before GoPets Ltd. registered its service mark, Digital Overture's re-registration and continued ownership of gopets.com did not violate section 1125(d)(1). The court held, however, that the Hises violated the ACPA in registering the additional domains because the Hises acted in bad faith and the court affirmed the district court's award for each of those registrations. The court also affirmed the district court's conclusion that the Hises' use of gopets.com violated the Lanham Act, 15 U.S.C. 1051 et seq., and remanded for determination of any relief that the district court might find appropriate for that violation. The court finally vacated the district court's award of attorney's fees and remanded for reconsideration by the district court.

Louis Vuitton sued Managed Solutions Group, Inc. (MSG), Akanoc Solutions, Inc., and Steven Chen (collectively, Defendants) for contributory copyright and trademark infringement, contending that Defendants were liable for their role in hosting websites that directly infringed Louis Vuitton's trademarks and copyrights. After trial, a jury found Defendants liable and awarded damages against each defendant. In response to Defendants' motion for judgment as a matter of law, the district court set aside the jury's verdict and award against MSG. The district court otherwise denied the motion. The court affirmed the district court on all issues of liability raised by the appeal and cross-appeal but vacated the judgment and remanded with instructions that the district court award statutory damages in the amount of $10,500,000 for contributory trademark infringement and $300,000 for contributory copyright infringement, for which Akanoc and Chen should be jointly and severally liable. Accordingly, the court vacated and remanded.