Kis v. COGNISM INC.

CourtDistrict Court, N.D. California
DecidedAugust 23, 2024
Docket3:22-cv-05322
StatusUnknown

This text of Kis v. COGNISM INC. (Kis v. COGNISM INC.) 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
Kis v. COGNISM INC., (N.D. Cal. 2024).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 NICHOLAS KIS, Case No. 22-cv-05322-AMO

8 Plaintiff, ORDER GRANTING IN PART AND 9 v. DENYING IN PART MOTION TO DISMISS 10 COGNISM INC., Re: Dkt. No. 45 Defendant. 11

12 13 Cognism Inc.’s motion to dismiss was heard before this Court on September 19, 2023. 14 Having read the papers filed by the parties and carefully considered their arguments therein and 15 those made at the hearing, as well as the relevant legal authority, the Court hereby GRANTS IN 16 PARTS AND DENIES IN PART the motion to dismiss for the following reasons. 17 I. BACKGROUND1 18 Defendant Cognism, Inc. (“Cognism”) owns and operates a website, cognism.com, that is a 19 prospecting tool for business to business (“B2B”) salespeople and marketers. ECF 1 20 (“Compl.”) ¶¶ 1, 4. Cognism.com provides a searchable database with names, contact 21 information, and other information about millions of professionals. Compl. ¶ 6. Cognism collects 22 “community-sourced data” by installing software on subscribers’ computers that “automatically 23 captures, intercepts, and stores” all outgoing and incoming emails, and collects contact 24 information from the signature blocks of emails. Compl. ¶ 20. Cognism.com subscriptions cost 25 more than $10,000 per year. Compl. ¶ 14. Cognism offers free trials of cognism.com to potential 26 1 For the purposes of the Rule 12(b)(6) motion to dismiss, the Court accepts as true the factual 27 allegations in the complaint and construes the pleadings in the light most favorable to the non- 1 subscribers, where the potential subscriber can search and view profiles in the database for a 2 limited period of time or a limited number of contact information downloads. Compl. ¶¶ 9-10. 3 Free trial users may download 25 profiles with personal information before they are required to 4 purchase a subscription to view additional profiles. Compl. ¶ 10. Cognism used putative class 5 members’ names, likenesses, photographs, and personas in advertisements for its website 6 subscriptions without their consent. Compl. ¶¶ 34, 39. Subscribers may also access information 7 through the Kaspr plug-in, which is an internet browser extension that allows an individual 8 searching on LinkedIn to view more information about an individual. Compl. ¶¶ 24, 26, 68. 9 Plaintiff Nicholas Kis sued Cognism on September 20, 2022, on behalf of himself and a 10 putative class, alleging violations of (1) California’s Right of Publicity Statute, Cal. Civ. Code § 11 3344, (2) the California Invasion of Privacy Act (“CIPA”), Cal. Pen. Code §§ 630 et seq., (3) 12 appropriation of his name or likeness, and (4) the California Unfair Competition Law, Cal. Bus. & 13 Prof. Code § 17200 et seq. The instant motion followed. 14 II. DISCUSSION 15 Cognism moves to dismiss Plaintiff’s claims under Federal Rule of Civil Procedure 16 12(b)(1) for lack of standing and Federal Rule of Civil Procedure 12(b)(6) for failure to state a 17 claim. ECF 45 (“Mot.) at 14-32. Because the Article III standing issue goes to subject matter 18 jurisdiction, the Court assesses it first. 19 A. Article III Standing 20 The Court evaluates challenges to Article III standing under Rule 12(b)(1), which governs 21 motions to dismiss for lack of subject matter jurisdiction. Maya v. Centex Corp., 658 F.3d 1060, 22 1067 (9th Cir. 2011). Rule 12(b)(1) motions may be either facial, where the inquiry is confined to 23 the allegations in the complaint, or factual, where the court is permitted to look beyond the 24 complaint to extrinsic evidence. Leite v. Crane Co., 749 F.3d 1117, 1121 (9th Cir. 2014). When a 25 defendant challenges jurisdiction “facially,” all material allegations in the complaint are assumed 26 true, and the court determines whether the factual allegations are sufficient to invoke the court’s 27 subject matter jurisdiction. Id. When a defendant makes a factual challenge “by presenting 1 furnish affidavits or other evidence necessary to satisfy its burden of establishing subject matter 2 jurisdiction.” Safe Air for Everyone v. Meyer, 373 F.3d 1035, 1039 (9th Cir. 2004); see also Leite, 3 749 F.3d at 1121. The court need not presume the truthfulness of the plaintiff’s allegations under 4 a factual attack. Wood v. City of San Diego, 678 F.3d 1075, 1083 n.8 (9th Cir. 2012). Cognism 5 brings both a facial and factual attack of the Court’s subject matter jurisdiction.2 6 “Article III confines the federal judicial power to the resolution of ‘Cases’ and 7 ‘Controversies.’ For there to be a case or controversy under Article III, the plaintiff must have a 8 ‘personal stake’ in the case—in other words, standing.” TransUnion LLC v. Ramirez, 594 U.S. 9 413, 423 (2021) (citation omitted). To establish standing, “(1) the plaintiff [must have] suffered 10 an injury in fact, i.e., one that is sufficiently ‘concrete and particularized’ and ‘actual or imminent, 11 not conjectural or hypothetical,’ (2) the injury is ‘fairly traceable’ to the challenged conduct, and 12 (3) the injury is ‘likely’ to be ‘redressed by a favorable decision.’” Bates v. United Parcel Serv., 13 Inc., 511 F.3d 974, 985 (9th Cir. 2007) (quoting Lujan v. Defenders of Wildlife, 504 U.S. 555, 14 560-61 (1992)). “To establish an injury in fact, a plaintiff must show that he or she suffered ‘an 15 invasion of a legally protected interest’ that is ‘concrete and particularized.’” In re Facebook, Inc. 16 Internet Tracking Litig., 956 F.3d 589, 597 (9th Cir. 2020) (quoting Spokeo, Inc. v. Robins, 578 17 U.S. 330, 339 (2016), as revised (May 24, 2016)). 18 Cognism takes issue with the injury and traceability requirements. See Mot. (ECF 45) at 19 15-22. The Court begins with injury. Kis brings a statutory right of publicity claim and the 20 analogous tort of misappropriation of a name or likeness.3 Compl. ¶¶ 98-104, 117-120. In 21 determining whether an alleged harm is sufficiently concrete to confer Article III standing, the 22 2 Cognism challenges Plaintiffs’ ability to use allegations related to Kaspr to establish standing. 23 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 24 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 25 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. 26

3 To the extent the UCL claim asserts a violation of the statute’s “unlawful” prong, it is derivative 27 of the other violations. To the extent it asserts a violation of the “unfair” prong, it is premised on 1 Supreme Court in TransUnion instructs that “courts should assess whether the alleged injury to the 2 plaintiff has a ‘close relationship’ to a harm ‘traditionally’ recognized as providing a basis for a 3 lawsuit in American courts,” such as physical harm, monetary harm, or various intangible harms. 4 TransUnion, 594 U.S. at 424.

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