Rodriguez v. Sony Computer Entertainment America, LLC

801 F.3d 1045, 2015 U.S. App. LEXIS 15782, 2015 WL 5166788
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 4, 2015
Docket12-17391
StatusPublished
Cited by45 cases

This text of 801 F.3d 1045 (Rodriguez v. Sony Computer Entertainment America, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rodriguez v. Sony Computer Entertainment America, LLC, 801 F.3d 1045, 2015 U.S. App. LEXIS 15782, 2015 WL 5166788 (9th Cir. 2015).

Opinion

OPINION

RAWLINSON, Circuit Judge:

Appellant Daniel Rodriguez (Rodriguez) challenges the district court’s dismissal of his second amended complaint alleging that Appellees Sony' Computer Entertainment America LLC (Sony Computer) and Sony Network Entertainment (Sony Network) International LLC (collectively Sony) violated the Video Privacy Protection Act (the Act) by retaining Rodriguez’s personally identifiable information (personal information) beyond the Act’s statutory limits, and disclosing his personal information between Sony entities. Rodriguez contends that the district court erred in concluding that the Act does not provide a private right of action to enforce its retention requirements. Rodriguez also takes issue with the district court’s conclusion that the intra-corporate disclosures were exempt from the Act’s non-disclosure requirements. We affirm the district court’s rulings.

*1047 I. BACKGROUND

A. Statutory Background

The Act was promulgated in 1988 after the Washington City Paper published Judge Robert Bork’s video rental history during his failed Supreme Court confirmation proceedings. See Mollett v. Netflix, Inc., 795 F.3d 1062, 1065-66 (9th Cir.2015).

The Act restricts a video service provider’s retention and disclosure of a consumer’s personal information. See 18 U.S.C. § 2710(b). A video service provider “means any person, engaged in the business, in or affecting interstate or foreign commerce, of rental, sale, or delivery of prerecorded video cassette tapes or similar audio visual materials, or any person or other entity to whom a disclosure is made ...” Id. at § 2710(b)(1). Under the Act, a consumer is “any renter, purchaser, or subscriber of goods or services from a video tape service provider[.]” Id. at § 2710(a)(1). The Act defines “personally identifiable information” as including “information which identifies a person as having requested or obtained specific video materials or services from a video tape service provider!.]” Id. at § 2710(a)(3). With respect to the retention of a consumer’s personal information, the Act mandates that:

A person subject to this section shall destroy personally identifiable information as soon as practicable, but no later than one year from the date the information is no longer necessary for the purpose for which it was collected and there are no pending requests or orders for access to such information under subsection (b)(2) or (c)(2) or pursuant to a court order.

Id. at § 2710(e).

The Act also imposes liability for unlawful disclosure of a consumer’s personal information:

(1) A video tape service provider who knowingly discloses, to any person, personally identifiable information concerning any consumer of such provider shall be liable to the aggrieved person for the relief provided in subsection (d). 1

Id. at § 2710(b). The Act also provides that “[a]ny person aggrieved by any act of a person in violation of this section may bring a civil action in a United States district court.” 18 U.S.C. § 2710(c).

Relevant to the present appeal, video service providers are exempt from liability for disclosure “if the disclosure is incident to the ordinary course of business of the video tape service provider!.]” 18 U.S.C. § 2710(b)(2)(E), The Act defines “ordinary course of business” as “debt collection activities, order fulfillment, request processing, and the transfer of ownership!.]” Id. at § 2710(a)(2).

*1048 B. Rodriguez’s Claims Under the Act

There have been several permutations of Rodriguez’s claims against various Sony entities premised on the provisions of the Act. In his original class action complaint, Rodriguez alleged that Sony Computer, as a video service provider, violated the Act by maintaining and storing its customers’ personal information rather than destroying the information no later than one year after it was collected. Rodriguez averred that, in 2008, he was a registered user of Sony’s PlayStation Network, which provides online gaming and video services streamed to a customer’s television. Rodriguez rented and purchased several video games and movies through the PlayStation Network in 2009, but did not purchase or rent any movies after Sony modified its streaming system in April, 2010. According to Rodriguez, Sony continued to store his personal information relating to the movies that he had rented and purchased in violation of the Act’s time limits for the storage of such information. Based on these allegations, Rodriguez sought statutory and punitive damages, as well as in-junctive relief and attorneys’ fees.

Sony sought dismissal of Rodriguez’s complaint on the basis that Rodriguez lacked standing to pursue his claims under the Act, and failed to properly allege any injury-in-fact. Sony also maintained that Rodriguez consented to Sony’s retention of his information pursuant to Sony’s terms of service and privacy policy.

In response, Rodriguez filed a first amended class action complaint adding Sony Network as a' defendant, and ten John Doe defendants. Rodriguez asserted that, • subsequent to his registration as a PlayStation Network customer, Sony Network assumed control over the PlayStation Network and its related services. Rodriguez alleged that Sony Computer and Sony Network violated the Act when they impermissibly shared Rodriguez’s personal information with each other during the change in Sony’s operations.

Rodriguez also alleged that Sony Network’s utilization of his personal information for “marketing purposes and demographic studies” demonstrated that his personal information had monetary value and that he never entered into an agreement permitting use of his personal information for these purposes. Rodriguez sought damages and injunctive relief.

Sony filed a motion to dismiss Rodriguez’s first amended complaint, which the district court granted. The district court dismissed with prejudice Rodriguez’s claim premised on retention of his personal information because the Act does not provide a private right of action for retention of information. The district court also dismissed with prejudice Rodriguez’s unlawful disclosure claim because the Act permits disclosure of personal information between related corporate entities during the ordinary course of business. The district court held that the disclosures by Sony Computer and Sony Network were permitted because the disclosures occurred during the transfer of operations. The district court also concluded that Rodriguez failed to allege any unlawful disclosures to the Doe defendants.

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Bluebook (online)
801 F.3d 1045, 2015 U.S. App. LEXIS 15782, 2015 WL 5166788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rodriguez-v-sony-computer-entertainment-america-llc-ca9-2015.