Justia Internet Law Opinion Summaries

This post-trial opinion determined the voting membership of GnB, LLC, a Delaware limited liability company. The parties disputed whether Firehouse Gallery, LLC, a Florida limited liability company, was a voting member of GnB. The parties also disputed whether GnB possessed an exclusive license to use the first-tier, generic domain name candles.com; held an option to purchase candles.com; and owned other assorted domain names relating to the candles business. The court held that Firehouse and plaintiff, who controlled GnB, each held a 50% voting membership interest; GnB owned the exclusive license and option to purchase candles.com and the other domain names; and plaintiff and defendant, the current principal of Firehouse, each breached their fiduciary duty of loyalty to GnB and must account for the profits and personal benefits they received. The court held that defendant was not otherwise liable to GnB or plaintiff. Because all of the litigants engaged in misconduct that could support fee-shifting, the doctrine of unclean hands applied with particular salience. Accordingly, the court held that all parties would bear their own fees and costs.View "Phillips v. Hove, et al." on Justia Law

The U.S. Court of Appeals for the Seventh Circuit, considering a suit by the city to collect taxes from a ticket reseller, requested a determination of whether municipalities may require electronic intermediaries to collect and remit amusement taxes on resold tickets. The Illinois Supreme Court held that state law preempts such a tax. The state has a long history of protecting consumers and has regulated auctioneers for more than 10 years and ticket resales for 20 years; it has regulated scalping in some form since 1923. The statutory scheme, and the debates which produced the Ticket Sale and Resale Act (720 ILCS 375/0.01) evince an intent to allow internet auction listing services to opt out of any obligation regarding local tax collection. The city overstepped its home rule authority. View "City of Chicago v. Stubhub" on Justia Law

Rosetta Stone appealed from an order granting summary judgment in favor of Google for Rosetta Stone's trademark infringement, contributory and vicarious trademark infringement, and trademark dilution claims. Rosetta Stone also appealed from an order dismissing its unjust enrichment claim under Virginia Law. Rosetta Stone contended that Google's policies concerning the use of trademarks as keywords and in ad text created not only a likelihood of confusion but also actual confusion, as well as misleading Internet users in purchasing counterfeit Rosetta Stone software. The court affirmed the district court's order with respect to the vicarious infringement claim and the unjust enrichment claims. The court vacated, however, the district court's order with respect to Rosetta Stone's direct infringement claim after addressing the likelihood of confusion and the functionality doctrine; contributory infringement claim where the evidence recited by the district court was sufficient to establish a question of fact as to whether Google continued to supply its services to known infringers; and dilution claim where the district court erred by omitting the question of good faith and collapsing the fair-use defense into one question. The court remanded the case for further proceedings. View "Rosetta Stone Ltd. v. Google, Inc." on Justia Law

The 435 patent relates to an automated financial accounting system that allows a user to connect to the computers of companies with which the user conducts business for transmission of financial information . Plaintiff asserted that Quicken and QuickBooks products infringed claims that contain an "access means" limitation. The parties agree that this is a means-plus-function limitation performed by a processor. As such, the specification of the 435 patent must contain an algorithm to perform the function associated with the "access mean"” limitation, or the limitation is indefinite. The district court entered summary judgment of invalidity. The Federal Circuit affirmed, holding that the "access means" limitation is indefinite. View "Noah Systems, Inc. v. Intuit, Inc." on Justia Law

Plaintiffs appealed from the judgment of the district court granting summary judgment to defendants on all claims of direct and secondary copyright infringement based on a finding that defendants were entitled to safe harbor protection under the Digital Millennium Copyright Act (DMCA), 17 U.S.C. 512. The court held that, although the district court correctly held that the section 512(c) safe harbor required knowledge or awareness of specific infringing activity, the court vacated the order granting summary judgment because a reasonable jury could find that YouTube had actual knowledge or awareness of specific infringing activity on its website. The court further held that the district court erred by interpreting the "right and ability to control" infringing activity to require "item-specific" knowledge. Finally, the court affirmed the district court's holding that three of the challenged YouTube software functions fell within the safe harbor for infringement that occurred "by reason of" storage at the direction of the user, and remanded for further fact-finding with respect to a fourth software function. Accordingly, the court affirmed in part, vacated in part, and remanded. View "Viacom International, Inc., et al. v. Youtube, Inc., et al.; The Football Assoc. Premier League Ltd., et al. v. Tur, et al." on Justia Law

The Secretary filed an administrative complaint alleging that three hedge funds offered by Bulldog Investors violated section 301 of G.L.c. 110A by offering unregistered securities to a Massachusetts resident through a publicly available website and an e-mail message. The Secretary adopted the hearing officer's finding of a violation and ordered Bulldog Investors to cease and desist from committing any further violations and to take all necessary actions to ensure that future offers and sales of securities complied with section 301. The court held that the challenged provisions of the Massachusetts law were part of a constitutionally permissible disclosure scheme and, to the extent that they restricted speech, they were tailored in a reasonable manner to serve a substantial state interest in promoting the integrity of capital markets by ensuring a fully informed investing public. Accordingly, the court affirmed the judgment.View "Bulldog Investors, et al. v. Secretary of the Commonwealth" on Justia Law

Hanners, then a Master Sergeant with the Illinois State Police, used his work computer to send an email to 16 fellow employees, including pictures and descriptions of "fictitious Barbie Dolls," depicting stereotypical area residents. After investigation, an EEO officer concluded that, although the email related to race, sexual orientation, parental status, pregnancy, family responsibilities, and the characteristics of gender, no person receiving it reported being offended. The EEO officer recommended discipline for Hanners and three employees who had forwarded the email. The disciplinary review board recommended, and the director imposed a 30-day suspension. Hanners's promotion rating was reduced. The district court granted summary judgment for defendants in his suit under 42 U.S.C. 1981, 1983. The Seventh Circuit affirmed. Hanner did not establish that individuals outside the protected class (Caucasians) received systematically better disciplinary treatment or identify any instance where defendants engaged in behavior or made comments suggesting discriminatory attitude against Caucasians generally or against him because he is Caucasian.View "Hanners v. Trent" 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. View "Skydive Arizona, Inc. v. Quattrochi, et al." on Justia Law

The patents are directed to regulating access to content that is delivered through a computer network. Digital-Vending sued three businesses involved in online education, alleging infringement. The district court issued a claim construction order. Two defendants entered into settlements. The third, University of Phoenix, sought summary judgment of non-infringement. Digital-Vending filed a motion for reconsideration of construction of the term "registered user." The district court granted for summary judgment of non-infringement and entered judgment in favor of Phoenix. The Federal Circuit vacated in part, finding that the determination was based on erroneous construction, and affirmed in part. View "Digital-Vending Servs. Int'l, LLC v. Univ. of Phoenix, Inc." on Justia Law

MySpace, FOX, and Craigslist sought declaratory judgment that certain patents owned by GraphOn were invalid and not infringed by plaintiffs. The patents related to the ability to create, modify, and store database records over a computer network. The District Court granted plaintiffs summary judgment. The Federal Circuit affirmed. The district court's claim construction of "database" was reasonable and supported by the context; its overall conclusion that the claims were anticipated or obvious was appropriate. The case was properly decided under sections 102 and 103 of the Patent Act and not under section 101. View "MySpace, Inc. v. Graphon Corp." on Justia Law