FilmOn.com v. DoubleVerify

CourtCalifornia Court of Appeal
DecidedJuly 25, 2017
DocketB264074
StatusPublished

This text of FilmOn.com v. DoubleVerify (FilmOn.com v. DoubleVerify) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
FilmOn.com v. DoubleVerify, (Cal. Ct. App. 2017).

Opinion

Filed 6/29/17; pub. order 7/25/17 (see end of opn.)

IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA

SECOND APPELLATE DISTRICT

DIVISION THREE

FILMON.COM, B264074

Plaintiff and Appellant, (Los Angeles County Super. Ct. No. BC561987) v.

DOUBLEVERIFY, INC.

Defendant and Respondent.

APPEAL from an order of the Superior Court of Los Angeles County, Terry A. Green, Judge. Affirmed.

Baker Marquart, Ryan G. Baker, Jaime W. Marquart, Christian A. Anstett and Blake D. McCay for Plaintiff and Appellant.

Fox Rothschild, Lincoln D. Bandlow and Margo J. Arnold for Defendant and Respondent. _________________________ INTRODUCTION Plaintiff FilmOn.com (FilmOn) is an Internet-based entertainment media provider. Defendant DoubleVerify, Inc. (DoubleVerify) provides authentication services to online advertisers. FilmOn sued DoubleVerify for trade libel, slander, and other business-related torts, alleging DoubleVerify falsely classified FilmOn’s websites under the categories “Copyright Infringement-File Sharing” and “Adult Content” in confidential reports to certain clients that subsequently cancelled advertising agreements with FilmOn. DoubleVerify moved to strike the causes of action pursuant to the anti-SLAPP statute (Code Civ. Proc., § 425.16), arguing its reports accurately addressed issues of widespread public interest—namely, the existence of adult content and copyright infringing material on publicly available websites, such as FilmOn.1 The trial court granted the motion. FilmOn appeals from the order striking its causes of action against DoubleVerify. As its sole ground for appeal, FilmOn contends DoubleVerify failed to make the requisite threshold showing that the challenged causes of action arose from protected activity. We conclude the trial court properly found DoubleVerify engaged in conduct in furtherance of its constitutional right of free speech in connection with an issue of public interest. We affirm.

1 SLAPP is an acronym for strategic lawsuit against public participation. (See Equilon Enterprises v. Consumer Cause, Inc. (2002) 29 Cal.4th 53, 57 (Equilon).) Statutory references are to the Code of Civil Procedure unless otherwise indicated.

2 FACTS AND PROCEDURAL BACKGROUND 1. The Parties DoubleVerify provides authentication services relating to the quality of digital media for online advertising. Advertising agencies, marketers, publishers, ad networks and other companies hire DoubleVerify to detect and prevent waste or misuse of advertising budgets and to help take proactive measures to maintain brand reputation. To provide this service, DoubleVerify monitors websites designated by its clients and determines, among other things, if the websites have content the client may consider inappropriate. DoubleVerify compiles this information into confidential reports for each client. These reports consist of a spreadsheet with advertising data (such as the length of time an ad is displayed on a website and the regional location of the website’s viewers) and a “tag” or label classifying the website’s content. The report is accompanied by a glossary of definitions for each tag. FilmOn is an Internet-based entertainment content provider. FilmOn’s services include access to hundreds of television channels, premium movie channels, pay-per-view channels and over 45,000 video-on-demand titles. FilmOn distributes its programming through several different website domains (the FilmOn Websites). FilmOn derives a significant portion of its revenue from advertising. 2. FilmOn’s Lawsuit FilmOn sued DoubleVerify for trade libel, slander, tortious interference with contract, and other business-related torts, alleging DoubleVerify distributed reports to certain FilmOn advertisers with false and disparaging classifications of one or

3 more of the FilmOn Websites.2 The complaint alleged DoubleVerify’s reports “falsely classif[ied] the FilmOn Websites under the categories of ‘Copyright Infringement-File Sharing’ and ‘Adult Content.’ ” According to the complaint, DoubleVerify’s accompanying glossary defined the category “ ‘Copyright Infringement: Streaming or File Sharing’ ” as “ ‘Sites, presently or historically, associated with access to or distribution of copyrighted material without appropriate controls, licensing, or permission; including but not limited to, sites electronically streaming or allowing user file sharing of such material.’ ” The glossary defined the “ ‘Adult Content’ ” category as “ ‘[m]ature topics which are inappropriate viewing for children including explicit language, content, sounds and themes.’ ” The complaint acknowledged that “some of FilmOn’s programming may be properly characterized as R- rated,” but alleged “the vast majority of the programming available on FilmOn does not fit within any definition of adult content.”

2 FilmOn’s seven-count first amended complaint asserted causes of action for (1) trade libel; (2) tortious interference with contract; (3) tortious interference with prospective economic advantage; (4) unfair competition; (5) false advertising; (6) slander; and (7) negligence. The causes of action for negligence and slander were asserted exclusively against AOL, Inc., which is not a party to this appeal. All other causes of action were asserted against DoubleVerify or all defendants.

4 With respect to each of the complaint’s five causes of action against DoubleVerify, FilmOn alleged “the false statements made by [DoubleVerify] in [its reports] have caused . . . ad partners and potential ad partners of FilmOn to decline to advertise through their websites,” resulting in lost profits and other consequential damages. 3. The Anti-SLAPP Motion DoubleVerify responded with a special motion to strike the subject causes of action pursuant to the anti-SLAPP statute. With respect to the first prong of the anti-SLAPP analysis— whether the challenged causes of action arose out of protected conduct—DoubleVerify argued its reports concerned matters of public interest insofar as the prevalence of adult content and copyright infringing material on the Internet had received attention from both the public and government regulatory agencies. To support the contention, DoubleVerify submitted several press releases and reports concerning the Family Entertainment Protection Act and efforts by the Federal Trade Commission to address the marketing of violent entertainment to children.3 With regard to copyright infringement, DoubleVerify submitted press reports concerning numerous lawsuits filed by media production companies against FilmOn. DoubleVerify’s

3 The Family Entertainment Protection Act was proposed federal legislation to prohibit the sale of mature and adults-only video games to minors. The bill did not become law. Similar bills were passed in states such as California, prompted in part by public debate over sexually explicit content in several popular video games. These laws were ultimately ruled unconstitutional. (See Byrd, It’s All Fun and Games Until Someone Gets Hurt: The Effectiveness of Proposed Video-Game Legislation on Reducing Violence in Children (2007) 44 Hous. L. Rev. 401, 405-410 & fn. 63.)

5 evidence also included the complaints filed and injunctions entered in a number of federal district courts against FilmOn for copyright infringement. With respect to the second prong— whether FilmOn could establish a probability of prevailing on its claims—DoubleVerify argued a “quick examination of FilmOn’s website[s]” proved DoubleVerify’s “classifications [were] entirely accurate.”4 In opposing the motion, FilmOn argued the alleged misconduct did not concern a matter of public interest because DoubleVerify distributed its confidential reports to paying subscribers only.

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FilmOn.com v. DoubleVerify, Counsel Stack Legal Research, https://law.counselstack.com/opinion/filmoncom-v-doubleverify-calctapp-2017.