Google, Incorporated v. James Hood, III

822 F.3d 212, 44 Media L. Rep. (BNA) 1776, 118 U.S.P.Q. 2d (BNA) 1661, 2016 U.S. App. LEXIS 9109, 2016 WL 2909231
Court of Appeals for the Fifth Circuit·Decided May 18, 2016·No. 15-60205·Published·Cited by 86 cases

Opinion

STEPHEN A. HIGGINSON, Circuit Judge:

In response to Google’s petition for panel rehearing, the opinion of the court is *216 sued on April 8, 2016, at 2016 WL 1397765, is withdrawn, and the following is substituted. The petition for rehearing is otherwise DENIED.

Mississippi’s Attorney General, James M. Hood III, believes that internet giant Google may be liable under state law for facilitating dangerous and unlawful activity through its online platforms. Hood’s conflict with Google culminated in his issuance of a broad administrative subpoena, which Google challenged in federal court. The district court granted a preliminary injunction prohibiting Hood from (1) enforcing the administrative subpoena or (2) bringing any civil or criminal action against Google “for making accessible third-party content to internet users.” Hood appeals, arguing that the district court should have dismissed Google’s suit on a number of threshold grounds, and in any event erred in granting injunctive relief. Expressing no opinion on the merits, we vacate the injunction.

I.

This dispute concerns the adequacy of Google’s efforts to police the technology services it provides to tens of millions of people every day.

A.

Google’s leading internet search engine processes over 3.5 billion searches per day, finding webpages responsive to users’ queries through an algorithmic review of billions of pages selected from over 60 trillion indexed pages. 1 Google also operates YouTube, a popular platform for uploading and viewing videos to which nearly 300 new hours of content are added every minute. Both services feature Google’s “Autocomplete” function, which uses an algorithm based on prior search activity and the content of indexed pages to predict a query as it is typed. This feature, according to Google, is intended to save time and correct common misspellings. The user may select one of the suggested queries to run a search, or ignore the suggestions and keep typing.

Google earns revenue through services called AdWords, which places third-party advertisements alongside search results and YouTube videos, and AdSense, which allows third-party websites to host advertisements generated through AdWords. Over 40 million AdWords advertisements are created each day. The order in which they appear to users depends on, among other factors, how much the advertiser pays and the “quality” of the advertisements and linked websites.

Although the vast majority of the content users find through Google’s services is produced by third parties, Google takes measures to weed out illegal material. F.or example, when Google receives a valid “takedown notice” from a copyright owner about a webpage containing unauthorized material, or when a court rules content unlawful, Google removes the offending page from its search results. In 2013 alone, Google, removed 222 million pages from its search results as a result of take-down notices. Though it generally does not remove whole sites on the basis of infringing pages, Google “incorporates” copyright removal notices ás a negative factor in the search algorithm it uses to *217 rank sites. The company also removes from its search results limited content such as personal financial information and images showing sexual abuse of children. And Google blocks predictive Autocom-plete queries for narrow “cases of potentially shocking or offensive entries (e.g., hate speech) and in cases where there is a high correlation between particular terms and infringing copyright.” 2

Videos that violate YouTube’s terms and conditions can be removed in several ways. Users can flag videos, which are then reviewed and, if they violate Google’s guidelines, taken down. Google also removes videos in response to valid legal complaints and uses computer models to identify large-scale policy violations. Additionally, a system called Content ID allows copyright owners to “identify and manage their content on YouTube” by sending YouTube a database of copyrighted files. When a newly uploaded video matches such a file, the copyright owner can choose to mute, block, monetize, or' track that video. ' User accounts can be terminated for egregious or repeated violations.

Google’s AdWords policies prohibit advertising for, among other things, counterfeit goods, “dangerous products or services” including recreational drugs and weapons, “products that are designed to enable dishonest behavior” such as hacking software, and hate-promoting or otherwise “offensive or inappropriate content.” Google restricts (but does not prohibit) advertising for “adult-oriented content,” alcoholic beverages, intellectual-property-violative material, and healthcare-related content (including over-the-counter and prescription medication). ' In 2014, Google rejected over 428 million advertisements and suspended or terminated over 900,000 advertiser accounts for AdWords policy violations. Similar policies govern AdSense.

B.

In late 2012 and early 2013, Hood and other state attorneys general began expressing concern that search engines were not doing enough to combat copyright infringement, the sale of prescription drugs and counterfeit products, and other “illegal and harmful” activity on the internet. In April 2013, Hood’s office, wrote to Google about these topics, alleging that the company had inadequately responded to previous requests for information, showing an “unwillingness to make meaningful reforms” and “a lack of commitment to making the Internet a safe place for families and. commerce.” Hood complained that, among other things, children were “able to purchase drugs without a prescription through Google,” and that “sites peddling counterfeit and pirated goods are still appearing at the top of’ search results. Hood expressed a desire to meet with Google to develop solutions, but warned that “if voluntary actions will not suffice, we will take legal action.” As it had before, Google responded, highlighting its existing efforts to counter illegal activity online and explaining why, in its view, more severe measures were inappropriate.

Friction between the parties escalated. In May 2013, Hood threatened that if the company did not “provide adequate answers,” he would urge his fellow attorneys general to issue civil investigative demands (subpoenas) to the company. He also demanded a “24-hour link” through which requests by attorneys general to remove webpages from Google’s searchable index would be “granted or addressed within *218 hours.” About a month later, Hood sent Google’s counsel a letter requesting a litigation hold, explaining that Mississippi was “investigating and evaluating Google’s conduct related to its search algorithm, auto-complete feature, advertising policies, and any other related functions,” with the purpose of “determin[ing] whether there exist any violations of Mississippi law.” “One of the many potential outcomes of the ongoing investigation,” Hood warned, “could be civil or criminal litigation.”

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Google, Incorporated v. James Hood, III, 822 F.3d 212, 44 Media L. Rep. (BNA) 1776, 118 U.S.P.Q. 2d (BNA) 1661, 2016 U.S. App. LEXIS 9109, 2016 WL 2909231 (5th Cir. 2016).

822 F.3d 212 (Google, Incorporated v. James Hood, III) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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