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

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

After plaintiff purchased a background check and report from Intelius on the Internet, plaintiff discovered that Adaptive, a separate company from Intelius, had been charging his credit card each month for a Family Safety Report. Plaintiff and others filed suit against Intelius in state court. Intelius then filed a third-party complaint against Adaptive. Adaptive filed a motion to compel arbitration of both Intelius's and plaintiff's claims. The court held that plaintiff did not enter into a contract with Adaptive to purchase the Family Safety Report, and did not enter into a contract with Adaptive to arbitrate. Therefore, the court affirmed the district court's denial of the motion to compel. The court remanded for further proceedings. View "Lee v. Intelius Inc." on Justia Law

Petronas is a major oil and gas company located in Kuala Lumpur, Malaysia and GoDaddy is the world's largest domain name registrar. After a third party registered the domain names "petronastower.net" and "petronastowers.net" and then used GoDaddy's domain name forwarding service to direct the disputed domain names to an adult entertainment web site, Petronas filed suit against GoDaddy alleging contributory cybersquatting under the Anticybersquatting Consumer Protection Act, 15 U.S.C. 1125(d). The district court granted summary judgment in favor of GoDaddy. The court affirmed, holding that the Act did not include a cause of action for contributory cybersquatting because: (1) the plain text of the Act did not apply to the conduct that would be actionable under such a theory; (2) Congress did not intend to implicitly include common law doctrines applicable to trademark infringement because the Act created a new cause of action that was distinct from traditional trademark remedies; and (3) allowing suits against registrars for contributory cybersquatting would not advance the goals of the statute. View "Petronas v. GoDaddy.com" on Justia Law

Plaintiffs filed suit against Google under the Wiretap Act, 18 U.S.C. 2511, after the antennas and software installed in Google's Street View cars collected basic identifying information transmitted by Wi-Fi networks, as well as gathered and stored "payload data" that was sent and received over unencrypted Wi-Fi connections. On appeal, Google challenged the district court's denial of its motion to dismiss based on the Wiretap Act's exemption for electronic communication that was readily accessible to the general public. The court held that the phrase "radio communication" in section 2510(16) excluded payload data transmitted over a Wi-Fi network. Consequently, the definition of "readily accessible to the general public [] with respect to a radio communication" in section 2510(16) did not apply to the exemption for an "electronic communication" that was "readily accessible to the general public" under section 18 U.S.C. 2511(2)(g)(i). The court also held that payload data transmitted over an unencrypted Wi-Fi network was not "readily accessible to the general public" under the ordinary meaning of the phrase as it was used in section 2511(2)(g)(i). Accordingly, the court affirmed the district court's judgment. View "Joffe v. Google, Inc." on Justia Law

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.