Miller v. 4Internet, LLC.

District Court, D. Nevada·Decided January 8, 2020·No. 2:18-cv-02097·Unknown

Opinion

Robert Miller, Case No.: 2:18-cv-02097-JAD-VCF

Plaintiff Order Granting in Part Motion to Dismiss 4Internet’s Counterclaims v. [ECF No. 36] 4Internet, LLC,

Defendant

And All Related Claims and Parties

Photographer Robert Miller contends that he holds the exclusive rights to a photograph that he took of a goat, which originally appeared in an article published by the New York Post.1 Miller sues 4Internet, LLC for federal copyright infringement, alleging that company was not authorized to use the goat photo but did when it re-posted the Post’s article on its own website.2 4Internet contends that it operates a search engine and Miller and his attorney crashed its Georgia-located server when they engaged non-party Copypants, Inc.’s bot to search the internet for potentially infringing uses of the goat photo and other photographs.3 4Internet countersues Miller, another photographer Christopher Sadowski, Miller’s attorney Mathew Higbee, and Higbee’s law firm Higbee & Associates, APC (“H&A”) for violating the federal Computer Fraud and Abuse Act (CFAA) and Georgia’s Computer Systems Protection Act (CSPA).4 4Internet

1 ECF No. 1 at ¶¶ 12–16. 2 Id. at ¶¶ 17, 22–27. 3 ECF No. 9 at 7–16 (answer and counter-complaint). 4 Id. at 13–14. The CFAA is enacted at 18 U.S.C. §§ 1001, et seq. and Georgia’s CSPA is enacted at Ga. Code §§ 16-9-90, et seq. also countersues Sadowski for a declaration that it did not infringe any rights that he might hold to two photographs that 4Internet displayed on its website.5 The counterclaim defendants move to dismiss all three of 4Internet’s counterclaims.6 They raise two defenses to the counterclaims under the CFAA and the CSPA. The counterclaim defendants first argue that dismissal is warranted under Rule 12(b)(1) of the Federal Rules of

Civil Procedure because 4Internet lacks constitutional standing as it has not shown that its injury is plausibly traceable to their alleged conduct. They next contend that the counterclaims must be dismissed under Rule 12(b)(6) because 4Internet’s factual allegations are far too thin to state a claim upon which relief can be granted against any of them. Although I address only the jurisdictional arguments, the pleading deficiencies that I identify below merit dismissal under both rules. But I am not satisfied that those deficiencies cannot be cured by amendment, so I dismiss the counterclaims under the CFAA and the CSPA without prejudice and with leave to amend if 4Internet can plead true facts to show that its injury was plausibly caused by the counterclaim defendants’ conduct.

Sadowski argues that the counterclaim for a declaration of non-infringement fails because a counterclaim cannot be asserted “entirely against a solely third or new party” like him.7 Sadowski misunderstands the counter-complaint: the other two counterclaims are brought against him, too. Because I dismiss the first two counterclaims without prejudice and with leave to amend, I deny as premature the motion to dismiss the third counterclaim. But I grant Sadowski’s 5 ECF No. 9 at 14–15. 6 ECF No. 25. 7 Id. at 15–17. alternative motion for a more definite statement as to whom each counterclaim is brought against, because that fact is not entirely clear from the face of the counter-complaint. Background 4Internet alleges that it operates a search engine.8 It contends that Miller, Sadowski, Higbee, and H&A are “copyright trolls” who “use a program or service called Copypants” to

“identify infringing uses of photographs on the internet” and force settlements or meritless lawsuits on persons who use the photos on their websites.9 4Internet asserts that the counterclaim defendants caused Copypants’s bot to visit 4Internet’s search engine, which is housed on a server in Georgia and was at that time “developmental and intended only to be used for relatively minimal internet traffic.”10 Copypants’s visits allegedly “overwhelmed 4Internet’s server[,] causing [it] to be offline and unavailable for legitimate traffic.”11 4Internet claims that Copypants visited its server 365 times “between April 30 and October 4, 2018.”12 4Internet also alleges that “IP addresses associated with [H&A] visited [the] server 308 times between May 2 and November 18, 2018.”13 It alleges that H&A’s visits

included viewing 4Internet’s terms-of-use page, which stated that “all visitors must only access the webpages using the system interface.”14 According to 4Internet, this term means that 8 ECF No. 9 at 7, ¶ 1. 9 Id. at 11–12, ¶¶ 37, 39–41. 10 Id. at 12, ¶ 42. 11 Id. at ¶ 43. 12 Id. at ¶ 44. 13 Id. at ¶ 45. 14 Id. at ¶ 46. “[u]sing the Copypants bot to access and obtain information from the 4Internet server exceeded the authority or permission granted to users of the site.”15 4Internet alleges that, on September 25, 2018, its “counsel specifically notified Mathew Higbee that . . . the technology you seem to be using to search the internet for potentially infringing images draws significant system resources, and which is believed to have caused a

recent temporary server outage. Since this access exceeds the authorization, your clients should expect a counterclaim under 18 U.S.C. § 1030(a)(5)(c) in the event an action is filed.”16 4Internet asserts that, despite this “notice and warning, the Copypants bot continued to visit [its] server.”17 Based on these facts, 4Internet contends that the counterclaim defendants “knowingly caused the Copypants bot to intentionally access the 4Internet server on multiple occasions” and thus violated § 1030(a)(5) of the CFAA.18 It further contends that the counterclaim defendants “conspired and did knowingly and intentionally use a computer network to cause a malfunction of the 4Internet server in violation” of § 16-9-93(b)(3) of the CSPA.19

15 Id. at ¶ 47. 16 Id. at 12–13, ¶ 48 (internal quotation marks omitted) (ellipsis in the original). 17 Id. at 13, ¶ 49. 18 Id. at ¶¶ 53–55. 19 Id. at 14, ¶¶ 59–63. Discussion A. Counterclaims under the CFAA and CSPA 1. Legal standard for dismissal under Rule 12(b)(1) The Ninth Circuit explained in Safe Air for Everyone v. Meyer that motions to dismiss under Rule 12(b)(1) for lack of subject-matter jurisdiction “may be facial or factual.”20 “In a

facial attack, the challenger asserts that the allegations contained in a complaint are insufficient on their face to invoke federal jurisdiction.”21 But “in a factual attack, the challenger disputes the truth of the allegations that, by themselves, would otherwise invoke federal jurisdiction.”22 “In resolving a factual attack on jurisdiction, the district court may review evidence beyond the complaint without converting the motion to dismiss into a motion for summary judgment.”23 The court also “need not presume the truthfulness of the plaintiff’s allegations.”24 When the moving party has successfully “converted the motion to dismiss into a factual motion by presenting affidavits or other evidence properly brought before the court, the party opposing the motion must furnish affidavits or other evidence necessary to satisfy its burden of establishing

subject[-]matter jurisdiction.”25 “Ordinarily, where a jurisdictional issue is separable from the merits of a case, the court may determine jurisdiction by the standards of a Rule 12(b)(1) motion to dismiss for lack of

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Miller v. 4Internet, LLC., (D. Nev. 2020).

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