Justia Internet Law Opinion Summaries

Plaintiffs commenced this putative class action alleging that defendants participated in a global Internet conspiracy to sell illegal prescription drugs, in violation of the laws of the United States and Virginia. At issue on appeal was whether the district court erred in dismissing the complaint against four foreign banks for lack of personal jurisdiction. The court concluded that Rule 4(k)(2) did not justify the exercise of personal jurisdiction over the banks because exercising jurisdiction over them would not, in the circumstances here, be consistent with the United States Constitution and laws. Subjecting the banks to the coercive power of the court in the United States, in the absence of minimum contacts, would constitute a violation of the Due Process Clause. Accordingly, the court affirmed the district court's orders dismissing the complaint against the banks. View "Unspam Technologies v. Chernuk" on Justia Law

Versata’s patents relate to computer-based pricing of products. In prior art, each factor required separate database queries, so that determining a price was highly inefficient. The claimed invention identifies all the groups to which a customer belongs and all corresponding price adjustments and product-related factor. Versata marketed a successful product, Pricer, sold as a package with other Versata software or as an addition to enterprise systems offered by companies like SAP. While Versata’s patent application was pending, SAP released a new version of its software that contained hierarchical pricing capability, which, it stated, was like Pricer. Pricer sales faltered. Versata sued for infringement. In the first trial, the jury found that SAP directly infringed asserted claims, induced and contributed to infringement of one claim, and that the claims were not invalid, and awarded $138,641,000. The court granted JMOL of noninfringement of the 400 patent, but denied JMOL of noninfringement of the 350 patent. Before the second trial, SAP modified its products with a patch that prevented users from saving data into certain fields. The jury concluded that the products still infringed and awarded $260 million in lost profits and royalties of $85 million. The court entered a permanent injunction. The Federal Circuit vacated the injunction as overbroad, but otherwise affirmed. View "Versata Software, Inc. v. SAP Am., Inc." 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

Allegedly in retaliation for Modrowski’s unwillingness to skimp on building repairs, defendants fired him, withheld $11,000 in wages, had Modrowski jailed, and locked Modrowski out of his personal Yahoo email account. Modrowski sued, challenging the refusal to relinquish control over his email account. The district court issued a temporary restraining order, but Modrowski discovered that years’ worth of personal correspondence had vanished. Modrowski claimed violation of the Stored Wire and Electronic Communications Act (18 U.S.C. 2701), the Federal Wire Tapping Act (18 U.S.C. 2511), and the Computer Fraud and Abuse Act (18 U.S.C. 1030). The district court dismissed the first two claims because Modrowski acknowledged that he voluntarily linked his personal account with the defendants’ business account. The district court dismissed without prejudice the Computer Fraud Act claim for failure to allege an injury of at least $5,000. When Modrowski returned his first amended complaint, defendants moved for summary judgment. The window for fact discovery had closed and neither party had sought an extension. Modrowski responded by attacking perceived deficiencies of the defendants’ motion. Noting Modrowski’s failure to offer “any evidence in response to defendants’ motion, let alone evidence sufficient to raise a triable issue of fact,” it granted defendants’ motion. The Seventh Circuit affirmed. View "Modrowski v. Pigatto" on Justia Law

Morsa’s patent application, entitled “Method and Apparatus for the Furnishing of Benefits Information and Benefits,” discloses both a method and an apparatus for receiving a benefit-information request from a user, searching a benefit information database for benefits matching the request, and then returning benefit information to the user. In the specification, Morsa defines benefits as any “‘things’ of value” given away to target entities. The Board of Patent Appeals and Interferences affirmed rejection of multiple claims. The Federal Circuit affirmed in part, finding that many claims would have been obvious in light of prior art. Vacating in part, the court held that the Board performed an incorrect enablement analysis in determining that certain claims were anticipated. View "In re: Morsa" on Justia Law

Two groups of plaintiffs, holders of copyrights in programs broadcast on network television, filed copyright infringement actions against Aereo. Aereo enabled its subscribers to watch broadcast television programs over the internet for a monthly fee. Plaintiffs moved for a preliminary injunction barring Aereo from transmitting programs to its subscribers while the programs were still airing, claiming that those transmissions infringed their exclusive right to publicly perform their works. The district court denied the motion and plaintiffs appealed. The court concluded that Aereo's transmissions of unique copies of broadcast television programs created at its users' request and transmitted while the programs were still airing on broadcast television were not "public performances" of plaintiffs' copyrighted works under Cartoon Network LP, LLLP v. CSC Holdings, Inc. As such, plaintiffs have not demonstrated that they were likely to prevail on the merits on this claim in their copyright infringement action. Nor have they demonstrated serious questions as to the merits and a balance of hardships that tipped decidedly in their favor. Accordingly, the court affirmed the district court's order denying plaintiffs' motion. View "WNET v. Aereo, 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

Plaintiff, an active genealogist and animal rights activist, claimed that her name had commercial value and that search engines generated revenue as a result of internet searches of her name. She specifically alleges that various features of Google’s search engine violate her right of publicity by using her name to trigger sponsored links, ads, and related searches to medications, including Levitra, Cialis, and Viagra, all of which are trademarks of nationally advertised oral treatments for male erectile dysfunction. The district court dismissed her suit alleging common law misappropriation and violation of the state right-of-privacy law, Wis. Stat. 995.50(2)(b). The Seventh Circuit affirmed, citing the public interest and incidental use exceptions. View "Stayart v. Google Inc." on Justia Law

REAL owns the 989 patent, now expired, directed to methods for locating available real estate properties using a zoom-enabled map on a computer. Move operates and maintains multiple interactive websites that allow users to search for available real estate properties and sought a declaratory judgment that REAL’s patents were invalid and that Move’s websites did not infringe them. REAL counterclaimed, alleging that the “Search by Map” and “Search by Zip Code” functions employed by Move infringed REAL’s claimed search methodologies. In 2009, the parties stipulated to non-infringement based on the district court’s claim construction, and after judgment was entered in favor of Move, REAL appealed regarding only one claim. The Federal Circuit vacated and remanded, holding that “selecting an area” as recited in the claim means that “the user or a computer chooses an area having boundaries, not when the computer updates certain display variables to reflect the selected area.” On remand, the district court entered summary judgment for Move. The Federal Circuit again vacated, holding that while Move cannot be liable for direct infringement, the district court erred by not analyzing inducement under 35 U.S.C. 271(b). View "Move, Inc. v. Real Estate Alliance, Ltd." on Justia Law

FM sued Google for infringing three patents relating to advertising on multiple outlets such as newspapers and websites. The specification characterizes the prior art as inefficient because it requires advertisers to manually ensure that their ads conform to the differing requirements of each advertising venue. The invention is designed to eliminate this inefficiency by automatically formatting the ads to fit each publisher’s requirements and sending them out for publication. In each of the patents, a “central computer” coordinates interactions between sellers (wishing to place ads), media venues, and buyers (targets of the ads). The central computer hosts a number of databases and software processes, including the presentation rules database and the Presentation Generating Program. The district court invalidated of one of FM’s patents as indefinite and a jury found that two others were invalid and not infringed. The Federal Circuit affirmed, rejecting arguments that the court abdicated to the jury its responsibility to construe disputed claim terms; that the court incorrectly denied its motion for a new trial on the grounds that the verdict was against the weight of the evidence; and that the verdicts of infringement and invalidity are irreconcilable. View "Function Media, L.L.C. v. Google, Inc." on Justia Law