Kis v. COGNISM INC.

District Court, N.D. California·Decided August 23, 2024·No. 3:22-cv-05322·Unknown

Opinion

NICHOLAS KIS, Case No. 22-cv-05322-AMO

Plaintiff, ORDER GRANTING IN PART AND v. DENYING IN PART MOTION TO DISMISS Re: Dkt. No. 45 Defendant.

Cognism Inc.’s motion to dismiss was heard before this Court on September 19, 2023. Having read the papers filed by the parties and carefully considered their arguments therein and those made at the hearing, as well as the relevant legal authority, the Court hereby GRANTS IN PARTS AND DENIES IN PART the motion to dismiss for the following reasons. I. BACKGROUND1 Defendant Cognism, Inc. (“Cognism”) owns and operates a website, cognism.com, that is a prospecting tool for business to business (“B2B”) salespeople and marketers. ECF 1 (“Compl.”) ¶¶ 1, 4. Cognism.com provides a searchable database with names, contact information, and other information about millions of professionals. Compl. ¶ 6. Cognism collects “community-sourced data” by installing software on subscribers’ computers that “automatically captures, intercepts, and stores” all outgoing and incoming emails, and collects contact information from the signature blocks of emails. Compl. ¶ 20. Cognism.com subscriptions cost more than $10,000 per year. Compl. ¶ 14. Cognism offers free trials of cognism.com to potential 1 For the purposes of the Rule 12(b)(6) motion to dismiss, the Court accepts as true the factual allegations in the complaint and construes the pleadings in the light most favorable to the non- subscribers, where the potential subscriber can search and view profiles in the database for a limited period of time or a limited number of contact information downloads. Compl. ¶¶ 9-10. Free trial users may download 25 profiles with personal information before they are required to purchase a subscription to view additional profiles. Compl. ¶ 10. Cognism used putative class members’ names, likenesses, photographs, and personas in advertisements for its website subscriptions without their consent. Compl. ¶¶ 34, 39. Subscribers may also access information through the Kaspr plug-in, which is an internet browser extension that allows an individual searching on LinkedIn to view more information about an individual. Compl. ¶¶ 24, 26, 68. Plaintiff Nicholas Kis sued Cognism on September 20, 2022, on behalf of himself and a putative class, alleging violations of (1) California’s Right of Publicity Statute, Cal. Civ. Code § 3344, (2) the California Invasion of Privacy Act (“CIPA”), Cal. Pen. Code §§ 630 et seq., (3) appropriation of his name or likeness, and (4) the California Unfair Competition Law, Cal. Bus. & Prof. Code § 17200 et seq. The instant motion followed. Cognism moves to dismiss Plaintiff’s claims under Federal Rule of Civil Procedure 12(b)(1) for lack of standing and Federal Rule of Civil Procedure 12(b)(6) for failure to state a claim. ECF 45 (“Mot.) at 14-32. Because the Article III standing issue goes to subject matter jurisdiction, the Court assesses it first. A. Article III Standing The Court evaluates challenges to Article III standing under Rule 12(b)(1), which governs motions to dismiss for lack of subject matter jurisdiction. Maya v. Centex Corp., 658 F.3d 1060, 1067 (9th Cir. 2011). Rule 12(b)(1) motions may be either facial, where the inquiry is confined to the allegations in the complaint, or factual, where the court is permitted to look beyond the complaint to extrinsic evidence. Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014). When a defendant challenges jurisdiction “facially,” all material allegations in the complaint are assumed true, and the court determines whether the factual allegations are sufficient to invoke the court’s subject matter jurisdiction. Id. When a defendant makes a factual challenge “by presenting furnish affidavits or other evidence necessary to satisfy its burden of establishing subject matter jurisdiction.” Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004); see also Leite, 749 F.3d at 1121. The court need not presume the truthfulness of the plaintiff’s allegations under a factual attack. Wood v. City of San Diego, 678 F.3d 1075, 1083 n.8 (9th Cir. 2012). Cognism brings both a facial and factual attack of the Court’s subject matter jurisdiction.2 “Article III confines the federal judicial power to the resolution of ‘Cases’ and ‘Controversies.’ For there to be a case or controversy under Article III, the plaintiff must have a ‘personal stake’ in the case—in other words, standing.” TransUnion LLC v. Ramirez, 594 U.S. 413, 423 (2021) (citation omitted). To establish standing, “(1) the plaintiff [must have] suffered an injury in fact, i.e., one that is sufficiently ‘concrete and particularized’ and ‘actual or imminent, not conjectural or hypothetical,’ (2) the injury is ‘fairly traceable’ to the challenged conduct, and (3) the injury is ‘likely’ to be ‘redressed by a favorable decision.’” Bates v. United Parcel Serv., Inc., 511 F.3d 974, 985 (9th Cir. 2007) (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 560-61 (1992)). “To establish an injury in fact, a plaintiff must show that he or she suffered ‘an invasion of a legally protected interest’ that is ‘concrete and particularized.’” In re Facebook, Inc. Internet Tracking Litig., 956 F.3d 589, 597 (9th Cir. 2020) (quoting Spokeo, Inc. v. Robins, 578 U.S. 330, 339 (2016), as revised (May 24, 2016)). Cognism takes issue with the injury and traceability requirements. See Mot. (ECF 45) at 15-22. The Court begins with injury. Kis brings a statutory right of publicity claim and the analogous tort of misappropriation of a name or likeness.3 Compl. ¶¶ 98-104, 117-120. In determining whether an alleged harm is sufficiently concrete to confer Article III standing, the 2 Cognism challenges Plaintiffs’ ability to use allegations related to Kaspr to establish standing. To support its challenge, Cognism submits a declaration that it does not own or operate Kaspr. ECF 46-1 (Isilay Supp. Decl.) ¶ 2. Kaspr is owned by Cognism Ltd., which is not a party to this action. ECF 60-1 (Isilay Decl.) ¶ 2. Under Rule 12(b)(1), the Court may properly consider Cognism’s declaration. See Leite, 749 F.3d at 1121. Absent alter ego allegations, which are not present here, Cognism cannot be responsible for the actions of a third party it does not own or operate. In its standing analysis, the Court does not rely on the Kaspr allegations.

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