I.M.S. Inquiry Management Systems, Ltd. v. Berkshire Information Systems, Inc.

307 F. Supp. 2d 521, 70 U.S.P.Q. 2d (BNA) 1105, 2004 U.S. Dist. LEXIS 2673, 2004 WL 345556
CourtDistrict Court, S.D. New York
DecidedFebruary 23, 2004
Docket03 Civ. 2183(NRB)
StatusPublished
Cited by23 cases

This text of 307 F. Supp. 2d 521 (I.M.S. Inquiry Management Systems, Ltd. v. Berkshire Information Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
I.M.S. Inquiry Management Systems, Ltd. v. Berkshire Information Systems, Inc., 307 F. Supp. 2d 521, 70 U.S.P.Q. 2d (BNA) 1105, 2004 U.S. Dist. LEXIS 2673, 2004 WL 345556 (S.D.N.Y. 2004).

Opinion

MEMORANDUM AND ORDER

BUCHWALD, District Judge.

Plaintiff I.M.S. Inquiry Management Systems, Ltd., (“plaintiff’ or “I.M.S.”) commenced this action on March 28, 2003, against defendant Berkshire Information Systems, Inc., (“defendant” or “Berkshire”) seeking damages and injunctive relief for defendant’s alleged unauthorized use of plaintiffs computer system and the content thereof. In Plaintiffs First *523 Amended Complaint (“Amended Complaint” or “Am. Compl.”), filed on May 6, 2003, plaintiff claims that: (1) defendant committed three violations of the Computer Fraud and Abuse Act; (2) defendant infringed plaintiffs copyright; (3) defendant violated the Digital Millennium Copyright Act; and (4) defendant tortiously interfered with plaintiffs contractual relations.

Pursuant to Fed.R.Civ.P. 12(b)(6), defendant moves to dismiss these claims, asserting that plaintiff fails to state a claim under which relief may be granted. Defendant moves to dismiss plaintiffs copyright infringement claim for the additional reason that this Court lacks subject matter jurisdiction. Defendant also urges that upon dismissal of plaintiffs federal law claims, the Court should decline to exercise supplemental jurisdiction over plaintiffs New York state claim of tortious interference with contractual relations. Defendant further argues that upon the dismissal of plaintiffs Amended Complaint, plaintiff should be denied leave to replead. Lastly and alternatively, in the event plaintiffs claims are not dismissed, plaintiff should be required to provide a more definite statement of its claims under Fed. R.Civ.P. 12(e).

For the following reasons, defendant’s motion is denied in part and granted in part.

I. BACKGROUND

The following factual background and allegations are derived from plaintiffs amended complaint and are taken as true for purposes of this motion.

I.M.S., a Canadian Corporation, is engaged in the service of providing advertising tracking information to publishers, advertisers, and others. I.M.S. operates a web-based service known as “e-Basket”, which is used by I.M.S.’s clients to track magazine advertising. e-Basket is available exclusively to I.M.S. clients. Each I.M.S. client is issued a unique user identification and password which allows the client to access the e-Basket service and information in LM.S.’s computers through an I.M.S. website. The e-Basket content is selected by I.M.S. and arranged into categories and sub-categories, a process which involves substantial creativity, time and effort. According to I.M.S., the e-Basket service contains copyrightable subject matter.

Berkshire has introduced and operates a competing tracking service called “Market-shareinfo.com”. I.M.S. alleges that in or around March of 2002, Berkshire, or an agent thereof, intentionally and without authorization accessed I.M.S.’s e-Basket service, and gathered and copied content therefrom for use in Marketshareinfo.com. Specifically, Berkshire’s unauthorized access spanned eight different webpages of e-Basket content, including that which would ordinarily be used by I.M.S. clients. Through its unauthorized access, I.M.S. contends that Berkshire copied roughly eighty-five percent of I.M.S.’s report formats. Marketshareinfo.com was launched after Berkshire accessed e-Basket, and I.M.S. alleges that Marketshareinfo.com incorporates original copyrightable elements of e-Basket, including the selection and arrangement of informational category headings and LM.S.-compiled market data.

To gain access to e-Basket, I.M.S. alleges that Berkshire obtained a user identification and password issued to a third party, thereby knowingly inducing that third party to breach an agreement it had with I.M.S.

According to I.M.S., Berkshire’s unauthorized access of I.M.S.’s computers is causing I.M.S. irreparable harm, has impaired the integrity and availability of I.M.S.’s data, and has caused I.M.S. to *524 incur costs of more than $5,000 in damage assessment and remedial measures.

II. STANDARD OF REVIEW FOR A MOTION TO DISMISS

Defendant argues that we should dismiss all of plaintiffs federal claims for failure to state a claim. In assessing a motion to dismiss under Fed.R.Civ.P. 12(b)(6), the Court is obligated to accept as true all well-pleaded factual allegations in the Amended Complaint, and view them in the light most favorable to plaintiff. See Scheuer v. Rhodes, 416 U.S. 232, 236, 94 S.Ct. 1683, 40 L.Ed.2d 90; Hertz Corp. v. City of New York, 1 F.3d 121, 125 (2d Cir.1993). Defendant’s motion is to be granted only where “it appears beyond doubt that the plaintiff can prove no set of facts in support of his claim which would entitle him to relief.” Still v. DeBuono, 101 F.3d 888, 891 (2d Cir.1996) (citing Conley v. Gibson, 355 U.S. 41, 48, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957)).

Additionally, as portions of defendant’s motion appear to attack the sufficiency of plaintiffs amended complaint strictly in regard to Fed.R.Civ.P. 8(a), we will note that “the Federal Rules of Civil Procedure do not require a claimant to set out in detail the facts upon which he bases his claim.” Conley, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80. Instead, all the Rules require is a “short and plain statement of the claim showing that the pleader is entitled to relief.” Fed.R.Civ.P. 8(a). This liberal standard governs because the “principal function of pleadings under the Federal Rules is to give the adverse party fair notice of the claim asserted so as to enable him to answer and prepare for trial.” Salahuddin v. Cuomo, 861 F.2d 40, 42 (2d Cir.1988).

III. THE COMPUTER FRAUD AND ABUSE ACT

A. Overview Of The Computer Fraud And Abuse Act.

Plaintiffs First Amended Complaint recites three separate claims for relief under the Computer Fraud and Abuse Act (“CFAA”). 18 U.S.C. § 1030 et seq (“ § 1030”). Both parties devote a considerable portion of their briefing papers to their respective interpretations of the CFAA’s modestly complex statutory scheme.

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307 F. Supp. 2d 521, 70 U.S.P.Q. 2d (BNA) 1105, 2004 U.S. Dist. LEXIS 2673, 2004 WL 345556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ims-inquiry-management-systems-ltd-v-berkshire-information-systems-nysd-2004.