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The Second Circuit affirmed the district court's grant of defendant's Rule 12(b)(6) motion to dismiss an action challenging a Connecticut law imposing recycling fees on electronics manufacturers. VIZIO alleged that Connecticut's E-Waste Law effectively regulated interstate commerce in violation of the Commerce Clause. The court analyzed the claim through a "well-worn path," N.Y. Pet Welfare Ass'n, Inc. v. City of New York, 850 F.3d 79, 89 (2d Cir. 2017), and held that VIZIO failed to articulate entitlement to relief under this familiar rubric. The court declined to extend the extraterritoriality doctrine in such a way as to prohibit laws that merely consider out‐of‐state activity, did not apply the user fee analysis to VIZIO's case, and found no burden on interstate commerce that was clearly excessive to the considerable public benefits conferred by Connecticut's E‐Waste Law. View "VIZIO, Inc. v. Klee" on Justia Law

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HomeAway, an online forum that allows owners to list their properties for short-term rentals and connect with individuals who want to rent a house or apartment, rather than stay in a hotel, is not a party to those rental transactions. San Francisco requires owners who rent out property to obtain a registration certificate from the treasurer; short-term renters must pay a transient occupancy tax. A recent report on short-term rentals in San Francisco showed that most owners did not comply with those requirements. San Francisco obtained a court to enforce an administrative subpoena, requiring HomeAway.com to disclose data about San Francisco rental transactions. The court of appeal affirmed the order, rejecting arguments that the subpoena violated the Stored Communications Act, 18 U.S.C. 2701–2712, which regulates the government’s ability to compel disclosure of some electronic data stored on the Internet, and that enforcing the subpoena would violate its customers’ constitutional rights. Even if HomeAway is “covered” by the Act, there is no violation because San Francisco used an authorized procedure. In addition, the subpoena does not require HomeAway to disclose electronic communications but seeks very specific information about hosts who use HomeAway to offer to rent property and about bookings. It does not command HomeAway to produce any customer's electronic communication or login information. View "City and County of San Francisco v. HomeAway.com, Inc." on Justia Law

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HomeAway, an online forum that allows owners to list their properties for short-term rentals and connect with individuals who want to rent a house or apartment, rather than stay in a hotel, is not a party to those rental transactions. San Francisco requires owners who rent out property to obtain a registration certificate from the treasurer; short-term renters must pay a transient occupancy tax. A recent report on short-term rentals in San Francisco showed that most owners did not comply with those requirements. San Francisco obtained a court to enforce an administrative subpoena, requiring HomeAway.com to disclose data about San Francisco rental transactions. The court of appeal affirmed the order, rejecting arguments that the subpoena violated the Stored Communications Act, 18 U.S.C. 2701–2712, which regulates the government’s ability to compel disclosure of some electronic data stored on the Internet, and that enforcing the subpoena would violate its customers’ constitutional rights. Even if HomeAway is “covered” by the Act, there is no violation because San Francisco used an authorized procedure. In addition, the subpoena does not require HomeAway to disclose electronic communications but seeks very specific information about hosts who use HomeAway to offer to rent property and about bookings. It does not command HomeAway to produce any customer's electronic communication or login information. View "City and County of San Francisco v. HomeAway.com, Inc." on Justia Law

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Rather than broadcasting in real time over satellite or cable, Internet Protocol Television (IPTV) stores programming on servers and delivers content digitally over a high-speed network. Sky received third-party content at its satellite substation, transcoded it, and transmitted it to NeuLion’s servers via a private line. NeuLion sent the encoded signals over the public internet to subscribers’ set-top boxes, relying on third-party internet connections. Sky wanted Discovery programming. Sky stated it would not transmit Discovery content over the public internet. Discovery’s engineer advised that while it was possible to use a closed fiber-optic network, he had “concerns that it may be going over the Internet” which could present “rights issues.” The final agreement described "a multichannel video distribution system which utilizes Internet Protocol (IP) technology to deliver video programming services over a closed and encrypted transmission path over a national fiber-optic network to a central location for subsequent distribution of such video programming services with proprietary encoding over a high-speed data connection to set-top-boxes that are secured by industry-standard encryption and conditional access technologies and are connected to Subscribers’ television sets." Discovery terminated the contract after learning Sky used the “public internet.” The court held the agreement was susceptible to competing reasonable interpretations concerning the scope of Sky’s distribution rights, examined extrinsic evidence, and found no support for Sky’s claim that the contract permitted public internet distribution. The Fourth Circuit affirmed. The contract allowed Discovery to terminate at any time it became dissatisfied with Sky ’s method of distribution; Discovery did not act in bad faith. View "Sky Angel U.S., LLC v. Discovery Communications, LLC" on Justia Law

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The Ninth Circuit affirmed the district court's summary judgment for defendants and its order denying attorneys' fees in a copyright case alleging infringement of pornographic content. The panel held that the Digital Millennium Copyright Act's safe harbor applied to defendants because the material at issue was stored at the direction of the users and defendants did not have actual or apparent knowledge that the clips were infringing. Furthermore, defendants expeditiously removed the infringing material once they received actual or red flag notice of the infringement, they did not receive financial benefit, and they had a policy to exclude repeat infringers. Finally, the district court did not abuse its discretion in not exercising supplemental jurisdiction over a California state law claim, and the district court did not abuse its discretion in denying an award of attorneys' fees to defendants. View "Ventura Content, Ltd. v. Motherless, Inc." on Justia Law

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FanDuel and DraftKings conduct online fantasy‐sports games. Participants pay an entry fee and select a roster, subject to a budget cap that prevents every entrant from picking only the best players. Results from real sports contests determine how each squad earns points to win cash. Former college football players whose names, pictures, and statistics have been used without their permission sued, claiming that Indiana’s right-of-publicity statute, Code 32‐36‐1‐8, gives them control over the commercial use of their names and data. The district court dismissed the complaint, relying on exemptions for the use of a personality’s name, voice, signature, photograph, image, likeness, distinctive appearance, gestures, or mannerisms "in" material “that has political or newsworthy value” or “in connection with the broadcast or reporting of an event or a topic of general or public interest." The Seventh Circuit certified the question to the Supreme Court of Indiana: Whether online fantasy‐sports operators that condition entry on payment, and distribute cash prizes, need the consent of players whose names, pictures, and statistics are used in the contests, in advertising the contests, or both. Plaintiffs’ details on the websites are not necessarily “in” newsworthy “material” or a form of “reporting” and there is no state law precedent interpreting a statute similar to Indiana’s. The Supreme Court of Indiana may consider not only the statutory text but also plaintiffs’ arguments about the legality of defendants’ fantasy games and the possibility of an extra-textual illegal‐activity exception. View "Daniels v. Fanduel, Inc." on Justia Law

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FanDuel and DraftKings conduct online fantasy‐sports games. Participants pay an entry fee and select a roster, subject to a budget cap that prevents every entrant from picking only the best players. Results from real sports contests determine how each squad earns points to win cash. Former college football players whose names, pictures, and statistics have been used without their permission sued, claiming that Indiana’s right-of-publicity statute, Code 32‐36‐1‐8, gives them control over the commercial use of their names and data. The district court dismissed the complaint, relying on exemptions for the use of a personality’s name, voice, signature, photograph, image, likeness, distinctive appearance, gestures, or mannerisms "in" material “that has political or newsworthy value” or “in connection with the broadcast or reporting of an event or a topic of general or public interest." The Seventh Circuit certified the question to the Supreme Court of Indiana: Whether online fantasy‐sports operators that condition entry on payment, and distribute cash prizes, need the consent of players whose names, pictures, and statistics are used in the contests, in advertising the contests, or both. Plaintiffs’ details on the websites are not necessarily “in” newsworthy “material” or a form of “reporting” and there is no state law precedent interpreting a statute similar to Indiana’s. The Supreme Court of Indiana may consider not only the statutory text but also plaintiffs’ arguments about the legality of defendants’ fantasy games and the possibility of an extra-textual illegal‐activity exception. View "Daniels v. Fanduel, Inc." on Justia Law

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The DC Circuit affirmed the district court's grant of Google's motion to dismiss in an action brought by plaintiff and her company against Google for failing to remove an offensive blog post. Plaintiff alleged three state law causes of action: defamation; tortious interference with a business relationship; and intentional infliction of emotional distress. The district court concluded that the Communications Decency Act (CDA), 47 U.S.C. 230, immunized Google from liability for the publication of third-party content. The court applied the three part test in Klayman v. Zuckerberg, 753 F.3d 1354, 1357 (D.C. Cir. 2014), to determine that Google had established immunity. In this case, Google qualified as an interactive computer service provider; plaintiff alleged that a third party created the offensive content on the blog; and plaintiff sought to establish that Google was liable as a publisher of the content. View "Bennett v. Google LLC" on Justia Law

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The DC Circuit affirmed the district court's grant of Google's motion to dismiss in an action brought by plaintiff and her company against Google for failing to remove an offensive blog post. Plaintiff alleged three state law causes of action: defamation; tortious interference with a business relationship; and intentional infliction of emotional distress. The district court concluded that the Communications Decency Act (CDA), 47 U.S.C. 230, immunized Google from liability for the publication of third-party content. The court applied the three part test in Klayman v. Zuckerberg, 753 F.3d 1354, 1357 (D.C. Cir. 2014), to determine that Google had established immunity. In this case, Google qualified as an interactive computer service provider; plaintiff alleged that a third party created the offensive content on the blog; and plaintiff sought to establish that Google was liable as a publisher of the content. View "Bennett v. Google LLC" on Justia Law

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Oracle filed a copyright infringement suit against Rimini, a provider of third-party support for Oracle's enterprise software, and Rimini's CEO. The Ninth Circuit affirmed partial summary judgment and partial judgment after trial on Oracle's claims that Rimini infringed its copyright by copying under the license of one customer for work performed for other existing customers or for unknown or future customers; reversed judgment after trial in regard to Oracle's claims under the California Comprehensive Data Access and Fraud Act (CDAFA), the Nevada Computer Crimes Law (NCCL), and California’s Unfair Competition Law (UCL), because taking data from a website, using a method prohibited by the applicable terms of use, when the taking itself generally was permitted, did not violate the CDAFA or the NCCL; reversed the determination that Rimini violated the UCL; reduced the award of damages based on Rimini's alleged violation of the CDAFA and NCCL; affirmed the award of prejudgment interest on the copyright claims; reversed the permanent injunction based on violations of the CDAFA; vacated the permanent injunction based on copyright infringement; reversed with respect to the CEO's liability for attorneys' fees; vacated the fee award and remanded for reconsideration; reduced the award of taxable costs; and affirmed the award of non-taxable costs. View "Oracle USA v. Rimini Street" on Justia Law