Oracle USA, Inc. v. Rimini Street, Inc.

191 F. Supp. 3d 1134, 2016 U.S. Dist. LEXIS 76489, 2016 WL 3344377
CourtDistrict Court, D. Nevada
DecidedJune 13, 2016
Docket2:10-CV-00106-LRH-PAL
StatusPublished
Cited by6 cases

This text of 191 F. Supp. 3d 1134 (Oracle USA, Inc. v. Rimini Street, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Nevada primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Oracle USA, Inc. v. Rimini Street, Inc., 191 F. Supp. 3d 1134, 2016 U.S. Dist. LEXIS 76489, 2016 WL 3344377 (D. Nev. 2016).

Opinion

ORDER

LARRY R. HICKS, UNITED STATES DISTRICT JUDGE

Before the court is defendants Rimini Street, Inc. (“Rimini”) and Seth Ravin’s (“Ravin”) (collectively “defendants”) renewed motion for judgment as a matter of law. ECF No. 913. Plaintiffs Oracle USA, Inc.; Oracle America, Inc.; and Oracle International Corporation (collectively “Oracle”) filed an opposition (ECF No. 957) to which defendants replied (ECF No. 976).

I. Facts and Procedural History

This action has an extensive factual and procedural history.1 In brief, plaintiff Oracle develops, manufacturers, and licenses computer software. Oracle also provides [1138]*1138support services to customers who license its software. Defendant Rimini is a company that provides similar software support services to customers licensing Oracle’s software and competes directly with Oracle to provide these services. Defendant Ravin is the owner and CEO of defendant Rimini.

On January 25, 2010, Oracle filed a complaint for copyright infringement against defendants alleging that Rimini copied several of Oracle’s copyright-protected software programs onto its own computer systems in order to provide software support services to customers. ECF No. 1. In June 2011, Oracle filed a second amended complaint alleging thirteen causes of action against Rimini: (1) copyright infringement; (2) violation of the Federal Computer Fraud and Abuse Act (“CFAA”), 18 U.S.C. §§ 1030(a)(2)(C), (a)(4), & (a)(5); (3) violation of the California Computer Data Access and Fraud Act, Cal. Penal Code § 502; (4) violation of the Nevada Computer Crimes Law, NRS § 205.4765; (5) breach of contract; (6) inducement of breach of contract; (7) intentional interference with prospective economic advantage; (8) negligent interference with prospective economic advantage; (9) unfair competition; (10) trespass to chattels; (11) unjust enrichment; (12) unfair practices; and (13) accounting. ECF No. 146.

A jury trial was held on Oracle’s claims from September 14, 2015, through October 13, 2015. On October 13, 2015, the jury returned a verdict on Oracle’s claims and found that defendant Rimini engaged in copyright infringement of Oracle’s copyrighted PeopleSoft, J.D. Edwards, and Sie-bel-branded Enterprise Software products. ECF No. 896. The jury also found that both defendant Rimini and Ravin violated the California Computer Data Access and Fraud Act (“CDAFA”) and the Nevada Computer Crimes Law (“NCCL”). Id. After the jury verdict, defendants filed the present Rule 50(b) motion for judgment as a matter of law on the CDAFA and NCCL claims. ECF No. 913.

II. Legal Standard

Under Rule 50(b), after the court enters judgment, a party may file a renewed motion for judgment as a matter of law. Rule 50 provides that judgment as a matter of law is appropriate if “a reasonable jury would not have a legally sufficient evidentiary basis to find for the party on that issue.” Fed. R. Civ. P. 50(a)(1). In other words, Rule 50 “allows the trial court to remove cases or issues from the jury’s consideration when the facts are sufficiently clear that the law requires a particular result.” Weisgram v. Marley Co., 528 U.S. 440, 448, 120 S.Ct. 1011, 145 L.Ed.2d 958 (2000).

Under Rule 50, the court reviews whether “substantial evidence” supports the jury verdict. See Hagen v. City of Eugene, 736 F.3d 1251, 1256 (9th Cir. 2013). “A jury’s verdict must be upheld if it is supported by substantial evidence, which is evidence adequate to support the jury’s conclusion, even if it is also possible to draw a contrary conclusion.” Pavao v. Pagay, 307 F.3d 915, 918 (9th Cir.2002) (emphasis added). A verdict is not supported by substantial evidence “when-the evidence, construed in the light most favorable to the nonmoving party, permits only one reasonable conclusion, which is contrary to the jury’s verdict.” Hagen, 736 F.3d at 1256. In reviewing a Rule 50 motion, the court “must disregard evidence favorable to the moving party that the jury is not required to believe,” “must view the evidence in the light most favorable to the nonmoving party,” and must “draw all reasonable inferences in [the non-moving] party’s favor.” Pavao, 307 F.3d at 918.

[1139]*1139III. Discussion

In their present Rule 50(b) motion, defendants argue that the jury’s findings of liability on the CDAFA and NCCL claims are unsupported by the evidence at trial and invalid as a matter of law. See ECF No. 913. In particular, defendants raise five separate challenges to the jury’s verdict on the CDAFA and NCCL claims. First, defendants contend that neither California nor Nevada’s computer access statute applies in this action under general choice-of-law principles. Second, defendants argue that plaintiff Oracle International Corporation (“OIC”) lacked standing to allege a claim under either statute, and as such, the court must set aside both the jury’s verdict and the $5.6 million in damages thé jury awarded to OIC under both statutes. Third, defendants argue that their conduct, as established by the evidence at trial, did not violate either statute as a matter of law. Fourth, defendants contend that Oracle is not entitled to recover economic damages, including lost profits damages, under either statute. Finally, defendants argue that both the CDAFA and the NCCL are facially unconstitutional and unconstitutional as applied in this action. The court shall address each challenge below.

A. Facts Relevant to the Computer Law Claims

Plaintiff Oracle America, Inc. (“Oracle America”) owns and operates a website that operates as an online database for Oracle’s software customers. This database contains millions of technical support files for Oracle’s copyrighted Enterprise Software programs, including its PeopleSoft, J.D. Edwards, and, Siebel branded software. During the relevant time period of the CDAFA and NCCL claims—late 2006 through early 2009—this online database was accessible through a website that required both the customer’s unique login identification2 (“login”) and acceptance of the website’s specific Terms of Use.

Oracle America’s online database did not have a built-in mechanism to allow Oracle’s software customers to download large numbers of files at one time; rather, Oracle’s customers had to individually search for, identify, and download any files and/or documentation that they desired from the vast catalog' of available files. With hundreds of thousands, or even millions, of files available' for each software product, this coiild be a time consuming process if the licensee required extensive support files to use the licensed Enterprise Software.

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191 F. Supp. 3d 1134, 2016 U.S. Dist. LEXIS 76489, 2016 WL 3344377, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oracle-usa-inc-v-rimini-street-inc-nvd-2016.