Chegg, Inc. v. Doe

CourtDistrict Court, N.D. California
DecidedJuly 3, 2023
Docket3:22-cv-07326
StatusUnknown

This text of Chegg, Inc. v. Doe (Chegg, Inc. v. Doe) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chegg, Inc. v. Doe, (N.D. Cal. 2023).

Opinion

1 2 3 4 5 IN THE UNITED STATES DISTRICT COURT 6 FOR THE NORTHERN DISTRICT OF CALIFORNIA 7 8 CHEGG, INC., Case No. 22-cv-07326-CRB

9 Plaintiff,

ORDER DENYING MOTION FOR 10 v. PRELIMINARY INJUNCTION AND SERVICE BY ALTERNATIVE 11 JOHN DOE, MEANS 12 Defendant.

13 Plaintiff Chegg, Inc. (“Chegg”), an online learning platform, brings this action 14 against the individual or entity that owns or controls Homeworkify, a website that allows 15 users to obtain Chegg content for free. Chegg brings four claims against Homeworkify: 16 for violation of the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030; the 17 California Comprehensive Computer Data Access and Fraud Act, Cal. Penal Code § 502; 18 breach of contract; and trademark infringement under the Lanham Act. Compl. (dkt. 1) 19 ¶¶ 49–82. 20 After many unsuccessful attempts at unmasking the individual or entity behind 21 Homeworkify, Chegg brings this motion for a preliminary injunction and for service by 22 alternative means, through the email associated with Homeworkify’s domain registration. 23 Mot. (dkt. 33). Chegg also seeks an injunction ordering Homeworkify’s domain registry to 24 seize its registered domain name and transfer it to Chegg. See Proposed Order (dkt. 36) at 25 5. As of this date, Homeworkify has not been served, because the individual or entity 26 behind it remains anonymous. As a result, Homeworkify has not appeared or responded to 27 the motion. The Court held a hearing on the motion on June 30, 2023. 1 causes Chegg irreparable harm, and because Chegg has failed to demonstrate that 2 Homeworkify is a foreign entity, the Court DENIES Chegg’s motion, without prejudice to 3 a future motion that addresses the concerns discussed below. 4 I. BACKGROUND 5 Chegg is an online learning platform that offers Chegg Study, a service that 6 provides step-by-step solutions to problems in commonly used textbooks for high school 7 and college students. Compl. ¶ 12. Such solutions are hidden behind a paywall: a Chegg 8 user must create an account, agree to Chegg’s terms of use, and, after a free trial period, 9 pay a subscription fee to see Chegg’s solutions. Id. ¶¶ 17, 39. 10 Chegg alleges that Homeworkify has circumvented Chegg’s paywall by allowing 11 members of the public to copy Chegg URLs into Homeworkify and view Chegg’s 12 solutions, without making an account on Chegg.com. Id. ¶¶ 36–38. Chegg hypothesizes 13 that Homeworkify has gained access to ten million pieces of Chegg content by making free 14 trial accounts on Chegg.com—thereby getting past Chegg’s paywall and gaining access to 15 its library of solutions—and using automated means to steal large amounts of Chegg 16 solutions at once (often called “scraping”). Heasman Decl. ¶¶ 18, 25. If Homeworkify has 17 procured its library of Chegg solutions in this manner, Chegg contends that it has violated 18 Chegg’s terms of use. Compl. ¶ 19; Ex. B. 19 At one point, Homeworkify utilized the Chegg name and logo on its website, but 20 according to Chegg, since the start of this litigation, it has halted this practice. Heasman 21 Decl. ¶ 32. While Homeworkify no longer advertises on its homepage that it provides 22 Chegg solutions specifically, Chegg alleges that Homeworkify has used, and continues to 23 use, Chegg’s name in its Google advertising. See Compl. ¶ 48 (“Unblur Chegg”); id. 24 (“Free Chegg Answers”); Heasman Decl. ¶ 31. 25 Chegg has taken multiple steps to unmask the person or entity behind 26 Homeworkify, all to no avail. Because the contact information in Homeworkify’s domain 27 registration is cloaked, Chegg began by issuing cease-and-desist orders to Homeworkify’s 1 associated with Homeworkify’s domain registration.1 Saber Decl. (dkt. 35) ¶¶ 3–6. Chegg 2 then subpoenaed NameCheap and Cloudflare, seeking to uncloak the name in 3 Homeworkify’s domain registration, and any IP addresses associated with its login 4 information. Id. ¶ 7. Both services complied, but the names they provided were a dead 5 end: Chegg’s investigator concluded that the name in Homeworkify’s domain registration 6 was fake; and the account holders of the IP addresses associated with Homeworkify’s 7 login information had no knowledge of Homeworkify or the entity behind it, suggesting 8 that Homeworkify was using their IP addresses as a shield to keep Chegg from finding out 9 where Homeworkify was based. Id. ¶¶ 7–8; 10–14. 10 After these fruitless attempts to unmask the defendant, Chegg brought the instant 11 motion. At the hearing on this motion, Chegg stated that the person or entity behind 12 Homeworkify likely has notice of this suit for two reasons: First, after Chegg’s counsel 13 sent the instant motion to the email address in Homeworkify’s domain registration, 14 Homeworkify launched a new domain, homeworkify.eu, suggesting that Homeworkify 15 might be concerned that it might lose the homeworkify.net domain; and second, one day 16 after Chegg initiated proceedings in Germany to take down this new domain, Chegg.com 17 experienced a cyberattack. 18 II. PRELIMINARY INJUNCTION 19 A. Legal Standard 20 A preliminary injunction is an “extraordinary remedy that may only be awarded 21 upon a clear showing that the plaintiff is entitled to such relief.” See Winter v. Natural 22 Res. Def. Council, Inc., 555 U.S. 7, 22 (2008). The party seeking a preliminary injunction 23 must establish: (1) a likelihood of success on the merits; (2) a likelihood of irreparable 24 harm absent preliminary relief; (3) that the balance of equities tips in the plaintiff’s favor; 25 and (4) that an injunction is in the public interest. See id. at 20. Alternatively, the moving 26 party must demonstrate that “serious questions going to the merits were raised and the 27 1 balance of hardships tips sharply in the plaintiff’s favor,” and that the other two Winter 2 elements are met. Alliance for Wild Rockies v. Cottrell, 632 F.3d 1127, 1134–35 (9th Cir. 3 2011). 4 B. Discussion 5 The Court addresses the Winter factors in the following order: (1) likelihood of 6 success on the merits; (2) irreparable harm; (3) balance of the equities; and (4) public 7 interest. 8 1. Likelihood of Success on the Merits 9 a. CFAA 10 Under the CFAA, a party may be subject to liability if it “intentionally accesses a 11 computer without authorization or exceeds authorized access, and thereby obtains . . . 12 information from any protected computer.” 18 U.S.C § 1030(a)(2).2 Chegg argues that by 13 making free accounts, from which Chegg’s millions of solutions may be accessed, and 14 using sophisticated systems to take those solutions for its own gain in violation of Chegg’s 15 terms of use, Homeworkify has “exceed[ed] authorized access” under the CFAA. Mot. at 16 8–9. 17 Chegg is incorrect. “[A] violation of the terms of use of a website—without 18 more—cannot establish liability under the CFAA.” Facebook, Inc. v. Power Ventures, Inc., 19 844 F.3d 1058, 1067 (9th Cir. 2016); see also Van Buren v. United States, 141 S. Ct. 1648, 20 1661 (2021) (disapproving of a reading of the CFAA that would interpret “exceeds 21 authorized access” to impute liability for a failure “to follow specified terms of service”).

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Chegg, Inc. v. Doe, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chegg-inc-v-doe-cand-2023.