Ford Motor Co. v. Lane

67 F. Supp. 2d 745, 27 Media L. Rep. (BNA) 2297, 52 U.S.P.Q. 2d (BNA) 1345, 1999 U.S. Dist. LEXIS 13736, 1999 WL 740861
CourtDistrict Court, E.D. Michigan
DecidedSeptember 7, 1999
Docket99-74205
StatusPublished
Cited by10 cases

This text of 67 F. Supp. 2d 745 (Ford Motor Co. v. Lane) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ford Motor Co. v. Lane, 67 F. Supp. 2d 745, 27 Media L. Rep. (BNA) 2297, 52 U.S.P.Q. 2d (BNA) 1345, 1999 U.S. Dist. LEXIS 13736, 1999 WL 740861 (E.D. Mich. 1999).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

EDMUNDS, District Judge.

Thirty years ago, on September 2, 1969, computer scientists at UCLA introduced a system which allowed one computer to speak to another. The birth of the Internet, inauspicious at the time, presaged a revolution in worldwide communications. In the realm of law, we are only beginning to grapple with the impact of the communications revolution, and this case represents just one part of one skirmish — a clash between our commitment to the freedom of speech and the press, and our dedication to the protection of commercial innovation and intellectual property. In this case, the battle is won by the First Amendment.

This matter is before the Court on Plaintiffs Motion for a Preliminary Injunction. 1 Although Defendant has stipulated to certain provisions of the injunction, including a prohibition on the infringing publication of copyrighted materials, Defendant challenges the provision which would enjoin him from using, copying, or disclosing any internal document of Ford Motor Company (including information contained therein). Plaintiff also seeks to enjoin Defendant from using Ford’s logo on his website. For the reasons set forth below, this Court finds that, although Ford has presented substantial evidence to support its claim that Lane violated the Michigan Uniform Trade Secrets Act, an injunction restraining Defendant’s publication of Ford’s trade secrets would constitute an invalid prior restraint of free speech in violation of the First Amendment. Thus, Plaintiffs motion for a preliminary injunction enjoining Defendant’s use, copying, or disclosing of Plaintiffs internal documents is DENIED.

I. Facts

Plaintiff, Ford Motor Company, is an internationally-known automobile manufacturer. Ford closely guards its strategic, marketing, and product development plans. These plans are “trade secrets,” which include program structures and vehicle cycle plans, engineering data, profitability and pricing data, and blueprints for manufacturing vehicles and their parts. *747 Also, Ford owns numerous copyrights in material “made for hire” under the Copyright Act. In addition, Ford owns over 100 trademark registrations for the name “FORD,” including the widely recognized stylized version of the name “FORD” (cursive font) and the “FORD OVAL” mark (cursive font inside a blue oval). The FORD mark has been in use since 1895.

Defendant, Robert Lane, is a student. Doing business as Warner Publications, he publishes a website with the domain name “blueovalnews.com,” formerly “fordworld-news.com.” The website publishes information about Ford and its products on the Internet, and has featured the Ford blue oval mark. Affidavit of Nancy Oatley, Ex. A. Some time prior to the events at issue in this case, Lane applied for and received authorization to access Ford’s press release website. Transcript of Aug. 30, 1999 hearing at 36 [hereinafter cited as “Tr. at _"]

In the fall of 1998, Ford became aware of Lane’s website, which then operated under the domain name fordworld-news.com. Ford objected to Lane’s use of the name “Ford” as part of the domain name and blocked Lane’s access to Ford’s press release website. In response, Lane wrote Ford a letter, dated October 30, 1998, in which Lane advised Ford that he possessed several “sensitive” photographs, including one of the upcoming Ford Thunderbird, which purportedly were provided to Lane by one of Ford’s employees. Affidavit of Donald Aiken, Ex. B. The photos allegedly showed pictures of Ford products that were confidential and had not been released to the public. In a letter dated November 3, 1998, Lane threatened to publish materials on his website that Ford would find “disturbing.” Id., Ex. C. In both letters, Lane threatened to encourage Ford employees to disclose confidential information. Id., Ex. B & C. Ford met with Lane and requested that Lane obtain Ford’s approval prior to posting any Ford documents on the Internet. Lane agreed to do so. Tr. at 20.

Lane later changed his mind. On July 13, 1998, Lane posted an article on his website discussing and quoting from confidential documents that Lane received from an anonymous source relating to quality issues concerning the Ford Mustang Cobra engine. Tr. at 39-41, Defendant’s Ex. 2. On July 27, 1999, Lane published information from another document that Lane received from an anonymous source, a document entitled “Powertrain Council Strategy & Focus.” This was an internal Ford memo containing Ford’s strategies relating to fuel economy, vehicle emissions through the year 2010, and powertrain technology advances. See Tr. at 43. Lane also published a Ford engineering blueprint on his site, and stated that he planned to offer other blueprints for sale. Affidavit of Nancy Oatley, Ex. J. In addition, Lane stated that he possessed other confidential Ford documents. When Ford advised Lane that the Company intended to file a lawsuit and to seek an injunction against him, Lane responded by posting approximately forty Ford documents online, including materials with high competitive sensitivity. Ford’s Motion for Preliminary Injunction, Ex. A.

Lane testified that he did not know the identity of anyone who provided him with the confidential Ford information that he wrote about and posted verbatim on his website. 2 These anonymous sources, likely former and current Ford employees, gave Ford documents to Lane by delivering *748 them to his house or to his truck or by using the U.S. mail. Tr. at 47. Lane was aware of the confidential nature of the Ford documents that he published. Tr. at 17-20 & 57-58; Affidavit of Daniel Stock. Ford representatives informed Lane that Ford employees are bound by a confidentiality agreement. 3 Tr. at 18-19. Lane testified that, with respect to some of the documents, he knew that the Ford employees who gave them to him were breaching their duty to Ford. Tr. at 18. Further, many of the documents were marked “confidential,” “property of Ford,” “proprietary,” or “copyright protected.” Tr. at 17; Affidavit of Richard Baker (power train document marked “confidential”). In addition, Lane acknowledged the confidential nature of the Ford documents when he wrote on his website, “Ford must take steps to make sure that from the design state until the time of market — their products undergo the utmost of secrecy. The whole reason behind all of this secrecy? To maintain a competitive advantage.” Affidavit of Nancy Oatley, Ex. L.

Because of Lane’s publishing activities, on August 25, 1999, Ford Motor Company filed a Complaint and a Motion for a Temporary Restraining Order against him. The Complaint alleges copyright infringement, statutory conversion, intentional interference with contractual relations, misappropriation of trade secrets, misappropriation, trademark infringement, and unfair competition. Ford alleges that Lane posted copyrighted material, and that Lane’s use of the Ford logo gives the impression that Ford sponsors or authorizes Lane’s website.

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67 F. Supp. 2d 745, 27 Media L. Rep. (BNA) 2297, 52 U.S.P.Q. 2d (BNA) 1345, 1999 U.S. Dist. LEXIS 13736, 1999 WL 740861, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ford-motor-co-v-lane-mied-1999.