Facebook, Inc. v. Power Ventures, Inc.

252 F. Supp. 3d 765, 103 Fed. R. Serv. 333, 2017 WL 1650608, 2017 U.S. Dist. LEXIS 66948
CourtDistrict Court, N.D. California
DecidedMay 2, 2017
DocketCase No. 08-CV-05780-LHK
StatusPublished
Cited by6 cases

This text of 252 F. Supp. 3d 765 (Facebook, Inc. v. Power Ventures, Inc.) 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
Facebook, Inc. v. Power Ventures, Inc., 252 F. Supp. 3d 765, 103 Fed. R. Serv. 333, 2017 WL 1650608, 2017 U.S. Dist. LEXIS 66948 (N.D. Cal. 2017).

Opinion

ORDER REGARDING REMEDIES AND DENYING MOTION FOR STAY

LUCY H. KOH, United States District Judge

On December 9, 2016, the Ninth Circuit issued an order affirming in part and reversing in part the Court’s grant of summary judgment. ECF No. 401. The Ninth Circuit remanded for this Court to reconsider the issue of remedies in light of the Ninth Circuit’s order. Id. at 22. The Court held a case a management conference on February 15, 2017, ECF No. 412, and set a briefing schedule on the remanded issue of remedies, ECF No. 410. Facebook filed its initial brief on March 8, 2017. ECF No. 416. Defendants filed their responsive brief on March 30, 2017. ECF No. 423. Face-book filed a reply on April 7, 2017. ECF ■No. 424.

On April 24, 2017, Defendant Steven Vachani (“Vachani”) filed a motion to stay all proceedings in the case pending resolution of his petition for certiorari in the United States Supreme Court. ECF No. 428. Facebook filed an opposition to this motion on April 24, 2017. ECF No. 429. On April 26, 2017, Vachani filed a letter stating that Facebook had not filed a brief in opposition to the petition for certiorari. ECF No. 431. On May 1, 2017, Vachani filed a reply to Facebook’s opposition to the motion for a stay. ECF No. 434.

Having considered the briefing of the parties, the record in the case, and the relevant law, the Court finds that Face-book is entitled to $79,640.50 in compensatory damages and a permanent injunction as described below. The Court also DENIES Vachani’s motion for a stay.

I. BACKGROUND

A. Factual Background

Facebook owns and operates the social networking website located at face-book.com. First Amended Complaint (“FAC”) ¶ 2. Power Ventures (“Power”) is a corporation incorporated in the Cayman Islands and doing business in California. Answer ¶ 10. At the times relevant to the instant case, Power has operated the website www.power.com, which offers to integrate users’ various social media accounts into a single experience. FAC ¶ 5; Answer ¶ 5. Vachani is the Chief Executive Officer of power.com. Answer ¶ 11.

In December 2008, Facebook brought against Defendants this action, which alleges violations of the Controlling the Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CANSPAM Act”), 15 U.S.C § 7701; the Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030; California Penal Code § 502; and the Digital Millennium Copyright Act (“DMCA”), 17 U.S.C. § 1201; copyright infringement under 17 U.S.C. § 101; trademark infringement under 15 U.S.C. §§ 1114 and 1125(a) and under California law; and violations of California Business and Professions Code Section 17200. ECF Nos. 1, 9. Facebook complains that Defendants employ Facebook’s proprietary data without its permission by inducing Face-book users to provide their login informa[769]*769tion and then using that information to “scrape” Facebook’s proprietary material. FAC ¶¶ 49, 50, 52. Defendants then display Facebook’s material on power.com. FAC ¶ 52. Facebook asserts that it never gave Defendants permission to use its material in this way. FAC ¶ 54.

Facebook also accuses Defendants of sending unsolicited and deceptive email messages to Facebook users. FAC ¶¶ 65-69. To launch their site, Defendants promised power.com users a chance to win $100 if they invited and signed up the most new users to Defendants’ site. FAC ¶ 65. Defendants provided to their users a list of the users’ Facebook friends from which the users could choose people to whom to send the invitation. FAC ¶ 66. Power.com sent commercial emails to those friends that included on the “from” line a “@facebookmail.com” address. FAC ¶¶ 66, 68. The content of the message included a line that the message was from “The Face-book Team.” FAC ¶ 69, 70. Facebook contends that it never gave permission to send these messages and that the emails were deceptive because they “do not properly identify the initiators of the messages, nor do they provide clear or conspicuous notice that the messages are advertisements for” power.com. FAC ¶ 71.

B. Procedural History

On February 18, 2011, Judge Ware granted the parties’ stipulation to dismiss Facebook’s DMCA claim, copyright and trademark infringement claims, and claims for violations of California Business and Professions Code Section 17200. ECF No. 97. On May 9, 2011, Defendants moved for summary judgment on Facebook’s CFAA, Section 502, and CAN-SPAM Act claims. ECF No. 98. On November 17, 2011, Face-book moved for summary judgment on Facebook’s § 502 and CFAA claims. ECF No. 214 (“§ 502/CFAA Motion”). On November 18, 2011, Facebook moved for summary judgment on Facebook’s CAN-SPAM Act claim. ECF No. 215. On February 16, 2012, Judge Ware issued an order denying Defendants’ motion for summary judgment and granting summary judgment in Facebook’s favor as to Facebook’s § 502, CFAA, and CAN-SPAM Act claims. ECF No. 275 (“February 16, 2012 order”).

In the February 16, 2012 order, Judge Ware requested additional briefing regarding Vachani’s individual liability and the amount of damages Facebook should receive in light of the February 16, 2012 order .Id. at 19. On March 30, 2012, Face-book filed its supplemental brief regarding damages and the liability of Vachani. ECF No. 299 (“Facebook Damages/Liability Brief’). The same day, Defendants lodged with the court a brief regarding damages and the liability of Vachani. ECF No. 288 (“Defendants’ Damages/Liability Brief’). On August 15, 2012, Vachani also submitted a supplemental brief regarding damages and his personal liability. ECF No. 317 (“Vachani Damages/Liability Brief’).

On June 4, 2012, the attorneys representing Vachani and Power moved to withdraw as counsel. ECF Nos. 302, 303. On July 2, 2012, Judge Ware granted the motions to withdraw. ECF No. 306. In the order granting the withdrawal requests, Judge Ware required Vachani and Power to file Notices of Identification of Substitute Counsel no later than July 17, 2012. Id. Judge Ware noted that although Va-chani could proceed pro se, Power had to be represented by a member of the bar pursuant to Civil Local Rule 3-9(b). Civil L.R. 3-9(b) (“A corporation, unincorporated association, partnership or other such entity may appear only through a member of the bar of this Court.”). Judge Ware cautioned Defendants that a failure to file timely Notices of Identification of Substitute Counsel may result in default of the case. Id.

[770]*770On July 19, 2012, after neither Vaehani nor Power had filed a Notice of Identification of Substitute Counsel, Judge Ware ordered both parties to appear on August 6, 2012 to respond to an Order to Show Cause regarding Defendants’ failure to obtain counsel. ECF No. 308. On August 6, 2012, the parties appeared for the hearing, and on August .8, 2012, Judge Ware issued an order regarding Defendants’ failure to obtain counsel (“August 8, 2012 .order”). ECF No. 313.

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252 F. Supp. 3d 765, 103 Fed. R. Serv. 333, 2017 WL 1650608, 2017 U.S. Dist. LEXIS 66948, Counsel Stack Legal Research, https://law.counselstack.com/opinion/facebook-inc-v-power-ventures-inc-cand-2017.