hiQ Labs, Inc. v. LinkedIn Corp.

273 F. Supp. 3d 1099
CourtDistrict Court, N.D. California
DecidedAugust 14, 2017
DocketCase No. 17-cv-03301-EMC
StatusPublished
Cited by13 cases

This text of 273 F. Supp. 3d 1099 (hiQ Labs, Inc. v. LinkedIn Corp.) 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
hiQ Labs, Inc. v. LinkedIn Corp., 273 F. Supp. 3d 1099 (N.D. Cal. 2017).

Opinion

ORDER GRANTING PLAINTIFF’S MOTION FOR PRELIMINARY INJUNCTION

Docket No. 23

EDWARD M. CHEN, United States District Judge ■

I. INTRODUCTION

Plaintiff hiQ initiated this action after Defendant Linkedln issued a cease and desist letter and attempted to terminate hiQ’s ability to access otherwise publicly available information on profiles of Linked-ln users. The letter threatens action under the Computer Fraud and Abuse Act (CFAA). Linkedln also employed various blocking techniques designed to prevent hiQ’s automated data collection methods. Linkedln brought this action after years of tolerating hiQ’s access and use of its data.

hiQ’s business involves providing information to businesses about their workforces based on statistical analysis of publicly available data, Its data .analytics business is wholly dependent on Linked-In’s public data. hiQ contends that Link-edln’s actions constitute unfair business practices under Cal. Bus. & Prof. Code §§ 17200 et seq. hiQ also raises a number of common law tort and contract claims, including intentional interference with contract and promissory estoppel, and further contends that Linkedln’s actions constitute a violation of free "speech under the California Constitution. ’

Now pending before the Court is hiQ’s motion for a preliminary injunction. For the reasons set forth in more detail below, the Court GRANTS the motion., In summary, the balance of hardships tips sharply in hiQ’s favor. hiQ has demonstrated there are serious questions on the merits. In particular, the Court is doubtful .that the Computer Fraud and Abuse.Act may be invoked by Linkedln to punish hiQ for accessing publicly , available data; the broad interpretation of the CFAA advocated by Linkedln, if adopted, ■ could profoundly impact open access to the Internet, a result that Congress could not have intended when it enacted the CFAA over three decades ago. Furthermore, hiQ has raised serious questions as to whether Linkedln, in blocking hiQ’s access to public data, possibly as a means of limiting competition, violates state law.

II. FACTUAL AND PROCEDURAL BACKGROUND

Founded in 2002, Linkedln is a social networking site focused on business and professional networking. It currently has over 500 million users; it was acquired by Microsoft in December 2016, for $26.2 billion.

[1104]*1104Linkedln allows users to create profiles and then establish connections with other users. When Linkedln users create a profile on. the site, they can choose from a variety of different levels of privacy protection. They can choose to keep their profiles entirely private, or to make them viewable by: (1) their direct connections on the site; (2) a broader network of connections; (3) all other Linkedln members; or (4) the entire public. When users choose the last option, them profiles are viewable by anyone online regardless of whether that person is a Linkedln member. Link-edln also allows public profiles to be accessed via search engines such as Google.

hiQ was founded in 2012 and has, to date, received $14.5 million in funding. hiQ sells to its client businesses information about their workforces that hiQ generates through analysis of data on Linkedln users’ publicly available profiles. It offers two products: “Keeper,” which tells employers which of their employees are at the greatest risk of being recruited away; and “Skill Mapper,” which provides a summary of the skills possessed by individual workers. Docket No. 23—4 (Weidick Deck) ¶¶4-6. hiQ gathers the- workforce data that forms the foundation of its analytics by automatically collecting it, or harvesting or “scraping” it, from publicly available Linkedln profiles. hiQ’s model is predicated entirely on access to data Linkedln users have opted to publish publicly. hiQ relies on Linkedln data because Linkedln is the dominant player in the field of professional networking.

On May 23, 2017, Linkedln sent a letter demanding that hiQ “immediately cease and desist unauthorized data scraping and other violations of Linkedln’s User Agreement.” Docket No. 23-1 (“Gupta Deck”) Ex. J. In the letter, Linkedln demanded that hiQ cease using software to “scrape,” or automatically collect, data from Linked-ln’s public profiles. Linkedln noted that its User Agreement prohibits various methods of data collection from its website, and stated that hiQ was in violation of those provisions. Linkedln also stated that it had restricted hiQ’s company page on Linked-ln and that “[a]ny future access of any kind” to Linkedln by hiQ would be “without permission and without authorization from Linkedln.” Linkedln further stated that it had “implemented technical measures to prevent hiQ from accessing, and assisting other to access, Linkedln’s site, through systems that detects, monitor, and block scraping activity.” Linkedln stated that any further access to Linkedln’s data would violate state and federal law, including California Penal Code § 502(c), the federal Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. § 1030, state common law of trespass, and the Digital Millennium Copyright Act. Linkedln reserved the right to pursue litigation, should hiQ fail to cease and desist from accessing Linkedln’s website, computer systems, and data.

After hiQ and Linkedln were unable to agree on an amicable resolution, and Link-edln declined to permit hiQ’s continued access in the interim, hiQ filed the complaint in this action, which asserts affirmative rights against the denial of access to publicly available Linkedln profiles based on California common law, the UCL, and the California Constitution. hiQ also seeks a declaration that hiQ has not and will not violate the CFAA, the DMCA, California Penal Code § 502(c), and the common law of trespass to chattels, by accessing Link-edln public profiles. Docket No. 1. At the same time, hiQ also filed a request for a temporary restraining order and an order to show cause why a preliminary injunction should not be issued against Linkedln. Docket No. 23. After a hearing on the TRO request, the parties entered into a standstill agreement preserving hiQ’s access to the data and converting hiQ’s initial motion into a motion for a preliminary [1105]*1105injunction. A hearing on the motion for preliminary injunction was held on July 27, 2017.

III. DISCUSSION

“A plaintiff seeking a preliminary injunction must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.” Winter v. Nat. Res. Def. Council, Inc., 555 U.S. 7, 20, 129 S.Ct. 365, 172 L.Ed.2d 249 (2008). In evaluating these factors, courts in the Ninth Circuit employ a “sliding scale” approach, according to which “the elements of the preliminary injunction test are balanced, so that a stronger showing of one element may offset a weaker showing of another. For example, a stronger showing of irreparable harm to plaintiff might offset a lesser showing of likelihood of success on the merits.” All. for tfie Wild Rockies v. Cottrell, 632 F.3d 1127, 1131 (9th Cir. 2011). At minimum, “[u]nder Winter, plaintiffs must establish that irreparable harm is likely, not just possible,.

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273 F. Supp. 3d 1099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hiq-labs-inc-v-linkedin-corp-cand-2017.