Collegesource, Inc. v. Academyone, Inc.

597 F. App'x 116
CourtCourt of Appeals for the Third Circuit
DecidedFebruary 5, 2015
Docket12-4167
StatusUnpublished
Cited by21 cases

This text of 597 F. App'x 116 (Collegesource, Inc. v. Academyone, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Collegesource, Inc. v. Academyone, Inc., 597 F. App'x 116 (3d Cir. 2015).

Opinion

OPINION *

VANASKIE, Circuit Judge.

Appellant CollegeSource (CS), a California corporation, and Appellee AcademyOne (Al), a Pennsylvania corporation, are competitors in the market for college credit-transfer information. CS alleges that A1 misappropriated the contents of CS’s database in an effort to stock its own fledgling database. The District Court granted summary judgment on all claims in favor of Al. CS now challenges several of the District Court’s rulings, including (1) the denial of its motion to transfer this case to California; (2) the exclusion of certain evidence; (3) the dismissal of its claims under the Racketeer Influenced and Corrupt Organizations Act, 18 U.S.C. § 1962(c), without leave to amend; and (4) the grant of *120 summary judgment in favor of Al. We will affirm.

I.

CS touts itself as “the pioneer of the digital college course catalog and college transfer credit industry.” Appellant’s Br. at 11. CS’s main product is the “CollegeSource Online” database, which allows paying subscribers and trial users to search and inspect over 50,000 digital course catalogs and related documents culled by CS from the offerings of colleges across the country. CS has long undertaken efforts to prevent, or enable the detection of, duplication or use of its materials by potential competitors. For instance, throughout the period at issue here, CS embedded in its catalog files an unavoidable “splash page” alerting the user that the catalog originated from CS, (see, e.g., App. 2607), and a full-page “Copyright and Disclaimer,” which states that “CollegeSource digital catalogs are derivative works owned and copyrighted by CollegeSource, Inc.Catalog content is owned and copyrighted by the appropriate school,” (see, e.g., App. 2608). The notice also declares that distribution and noncommercial use are prohibited.. (Id.)

Users of CollegeSource Online must check a box that states, “By signing in above, I agree to be bound by the terms of the ... Subscription Agreement.” (See, e.g., App. 2585.) The hyperlinked Subscription Agreement states: “This Subscriber Agreement and Terms of Use govern your use of CollegeSource Online, TES, and, unless other terms and conditions expressly govern, any other electronic services from CollegeSource, Inc. that may be made available from time to time.... ” (App.2773.) The agreement also states that commercial use of the data is prohibited. (Id.)

Along with CollegeSource Online, CS offers a service known as “CataLink,” which allows colleges to store their catalog information on CS’s servers and link to that information from their websites, rather than hosting the information themselves. Since CataLink’s inception, 110 schools have paid to use that service. (App.2602-06.) Course catalogs accessed via CataLink, like those accessed via CollegeSource Online, contain the aforementioned Copyright and Disclaimer.

A1 was founded by Appellee David Mol-doff in 2005 as a free online alternative to CS. In 2006, Moldoff approached CS to inquire whether A1 could purchase or license the contents of CS’s database, but he was rebuffed. A1 then hired Beijing Zhongtian-Noah Sports Science Co., Ltd. (Noah), an independent Chinese subcontractor, to obtain course catalogs by downloading them directly from individual schools’ websites. A1 also pursued an in-house effort to obtain course catalogs in the same way. By the time its database launched in early 2007, A1 had amassed course catalogs from roughly 4,000 schools, most of which originated from Noah’s collection efforts.

A week after the debut of A1’s database, CS sent a cease-and-desist letter to A1 alleging over 700 instances of copyright infringement and directing A1 to remove the infringing materials from its website. (App.1370-74.) After a brief review, A1 discovered that CS’s allegations were largely correct. In an email to CS’s president, Moldoff explained that A1 had “removed ALL course catalog PDF files as of this afternoon and are working to determine actually how many catalogs are in question have [sic] your copyright statement.” (App.3004.) Moldoff also wrote that A1 would “honor [CS’s] request and remove the content.” (Id.) A1 immediately disabled public access to the database *121 and made efforts to remove materials that had originated with CS. This task proved technically challenging, and the record reflects that as late as 2010, A1 discovered additional .documents on its servers that contained CS’s Copyright and Disclaimer.

In late 2008, A1 was the winning' bidder for a contract with the State of South Carolina that had also been sought by CS. Shortly thereafter, CS filed a complaint against A1 in the United States District Court for the Southern District of California in which it alleged seven federal causes of action: (1) violations of the Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030(g); (2) breach of contract; (3) unjustenrichment; (4) trademark infringement under the Lanham Act, 15 U.S.C. § 1114; (5) unfair competition under the Lanham Act, 15 U.S.C. § 1125(a); (6) false advertising under the Lanham Act, 15 U.S.C. § 1125(a); and (7) a declaration of trademark invalidity under 15 U.S.C. § 1064. The complaint also alleged three causes of action under California law, including (1) a violation of the California Computer Crimes Act, CaLPenal Code § 502; (2) misappropriation; and (3) unfair competition under Cal. Bus. & Prof. Code § 17200. Soon thereafter, A1 sent out several hundred letters to colleges stating that CS had filed “copyright claims ... whereby [CS] is claiming ownership and control of your institution’s digital catalog and the course descriptions contained within.... ” (App.565.)

A1 moved to dismiss the California action for lack of personal jurisdiction. The District Court permitted limited discovery on that issue. Moldoff filed affidavits stating that A1 transacted no business in California and had no knowledge that CS was based in California. The District Court ultimately dismissed for' lack of personal jurisdiction and CS appealed. In July. 2010, while the appeal was pending, CS sued A1 in federal district court in Pennsylvania, where jurisdiction was indisputably proper. That complaint contained the same federal claims raised in the California action, as well as a claim under the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. § 1962(c). But it omitted the California state-law claims and added claims for breach of contract and unjust enrichment under Pennsylvania law.

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Bluebook (online)
597 F. App'x 116, Counsel Stack Legal Research, https://law.counselstack.com/opinion/collegesource-inc-v-academyone-inc-ca3-2015.