Vox Marketing Group v. Prodigy Promos

District Court, D. Utah·Decided August 20, 2021·No. 2:18-cv-00632·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF UTAH

VOX MARKETING GROUP, MEMORANDUM DECISION Plaintiff, AND ORDER

v. Case No. 2:18-cv-632

Howard C. Nielson, Jr. PRODIGY PROMOS, et al., United States District Judge

Defendants.

Plaintiff Vox Marketing Group sued Defendants Prodigy Promos, L.L.C., Henhouse Designworks, L.L.C, and individual Defendants Jason Marsh, John Priday, Tyler Fredrickson, Eric Oldson, Spencer Oldson, Michael Perley, Jeffrey Johns, and Brooke Johns. Vox asserts a federal claim under the Computer Fraud and Abuse Act (the “CFAA”) and various state-law claims against Prodigy and the other Defendants. Prodigy also asserts various state-law claims, including several counterclaims against Vox and some of its officers and employees as well as a claim against Alex Wolfe, a Vox employee. Defendants move for summary judgment on Vox’s claims. And Vox (along with its officers and employees) moves for summary judgment on all of Prodigy’s claims. The court denies Defendants’ motion for summary judgment on Vox’s federal claim and declines to exercise supplemental jurisdiction over the state-law claims asserted in this case—including Vox’s other claims and all of Prodigy’s claims. I. Prodigy Promos, L.L.C., and Vox Marketing Group are both promotional and marketing companies. See Dkt. No. 208-1, Exhibit 1 ¶¶ 2–3. They are direct competitors. See id. ¶ 3; Dkt. No. 2-4 ¶ 19. Vox uses a website, voxmarketingtools.com, to generate different types of documents that it uses in its relationships with its customers. See Dkt. No. 2-4 ¶ 75. These include OrderPrint pages and PrintDelivery pages. OrderPrint pages are proposals (which include proposed pricing) that Vox provides its customers. See id. ¶¶ 76–77. PrintDelivery pages are packing lists that Vox provides with products that it ships to its customers. See Dkt. No. 208-1, Exhibit 1 ¶ 6; Dkt. No. 208-1, Exhibit 8 ¶ 13. Vox intended for the documents generated by voxmarketingtools.com to be password protected. And individuals who type the address for the website’s homepage into an internet browser do encounter a login portal that requires a username and password to gain access to the website. See Dkt. No. 241 at 35; Dkt. No. 252 at 5, 11; and Dkt. No. 241-1 at 33, 107, and 152. In addition, this website was originally coded to require that individuals who type in URLs for specific documents generated by the website enter their username and password to gain access to the documents unless they are already validly logged into voxmarketingtools.com. At some point this feature became disabled, however, and individuals who typed in the URLs for specific OrderPrint and PrintDelivery documents could gain access to those documents without first entering a username and password. See Dkt. No. 2-4 ¶¶ 79–81. In the summer of 2015, Prodigy obtained an OrderPrint page, presentations, and other documents that Vox had prepared for SolarCity, one of Vox’s customers. See Dkt. No. 208-1, Exhibit 1 ¶¶ 4–5. The parties dispute how Prodigy obtained these documents. Vox argues that Prodigy obtained them illegally though a kickback scheme with one of SolarCity’s employees. See Dkt. No. 2-4¶¶ 50-63. Defendants argue that SolarCity provided the documents to them to see whether Prodigy could offer competitive pricing. See Dkt. No. 208-1, Exhibit 1 ¶ 4. The URL for the OrderPrint document was printed at the top of the document. Id. ¶ 5. This URL appears to have focused Defendants’ attention on the voxmarketingtools.com website. See, e.g., Dkt. No. 196-1 at 32 48:15–49:4. Defendants proceeded to experiment with this website. They discovered that when they went to the website’s homepage, they would encounter a login portal that required a username and password. See Dkt. No. 241 at 35; Dkt. No. 252 at 5, 11; Dkt. No. 241-1 at 33, 107, 152. They also discovered that they could view the webpage showing the OrderPrint proposal they had obtained from SolarCity without first entering a username and password by directly entering the URL for this specific document. See Dkt. No. 208-1, Exhibit 3 ¶¶ 12–13; Dkt. No. 196-1, Exhibit C at 100:8–101:15; Exhibit D at 49:5–12. With further experimentation, Defendants learned that by altering the numbers at the end of the URL they could also obtain access to different OrderPrint and PrintDelivery documents without entering a username or password. See Dkt. No. 208-1, Exhibit 8 ¶ 13; Exhibit 3 ¶11. And as they continued to experiment, Defendants gained sufficient insight into how the voxmarketingtools.com URLs were assigned to be able to locate OrderPrint and PrintDelivery documents based on when they were generated. See id. Exhibit 3 ¶11; Exhibit 8 ¶14. Because Vox was a direct competitor, its pricing proposals were extremely valuable to Prodigy. Indeed, Prodigy’s employees described their ability to access OrderPrint and PrintDelivery pages as “freaking sneaky” and the “holy grail of spy tricks.” Dkt. No. 239-1, Exhibit 34 at 82. And Prodigy’s employees used this “holy grail” extensively, viewing various OrderPrint and PrintDelivery pages over twenty thousand times. See Dkt. No. 208-1, Exhibit 11 at 242. Vox discovered these intrusions when it was told by a customer that, shortly after receiving a proposal from Vox, the customer received an unsolicited proposal from Prodigy offering to sell the exact same items for a lower price. See Dkt. No. 196-2, Exhibit L at 55:13– 57:22. Vox then searched its server records and discovered that computers using IP addresses traceable to Prodigy had obtained access to Vox’s OrderPrint and PrintDelivery webpages. See Dkt. No. 196-1, Exhibit K at 78:5–15. Vox obtained a court order authorizing the sheriff to enter Prodigy’s premises, identify all electronic storage media, take temporary possession of those media, and deliver them to Decipher Forensics, LLC. See Dkt. No. 196-2, Exhibits Q, S, T. Vox then brought this suit, asserting that Defendants’ manipulation of the website URLs in order to gain access to Vox’s OrderPrint and PrintDelivery webpages violated the CFAA and that its use of the materials it obtained in this manner to compete against Vox violated the Utah Uniform Trade Secrets Act and constituted tortious interference with economic relations. Vox also alleges that Prodigy’s manipulation of the URLs to obtain access to Vox’s webpages, as well as the alleged kickback scheme through which Prodigy allegedly obtained the URL for the SolarCity OrderPrint page in the first place, violated the Utah Pattern of Unlawful Activity Act. Prodigy, in turn, asserts that the seizure of its devices and their delivery to a third-party company constituted trespass to chattels, and that Vox’s application to the court for authorization to proceed in this manner constituted abuse of process. Prodigy also asserts a claim for defamation based on statements allegedly made to customer representatives by a Vox employee that Prodigy had hacked into or otherwise gained unauthorized access to Vox’s system.1 Finally, Prodigy asserts a claim for breach of contract against Alex Wolfe, a Vox employee, who it alleges solicited Prodigy customers for Vox after Prodigy terminated his employment. II. Under Federal Rule of Civil Procedure 56(a), “[t]he court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Material facts are those which “might affect the outcome of the suit under the governing law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986). A “dispute about a material fact is ‘genuine’ if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. (cleaned up).

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Vox Marketing Group v. Prodigy Promos, (D. Utah 2021).

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