WHERE TO BUY, LLC v. DATASEMBLY, INC.

CourtDistrict Court, D. New Jersey
DecidedAugust 17, 2023
Docket2:22-cv-06664
StatusUnknown

This text of WHERE TO BUY, LLC v. DATASEMBLY, INC. (WHERE TO BUY, LLC v. DATASEMBLY, INC.) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WHERE TO BUY, LLC v. DATASEMBLY, INC., (D.N.J. 2023).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEW JERSEY

WHERE TO BUY, LLC, Plaintiff, Civ. No. 22-6664 (KM) (JBC) v. REDACTED OPINION DATASEMBLY, INC., SPINS LLC, DESTINI GLOBAL LLC, Defendants.

KEVIN MCNULTY, U.S.D.J.: Plaintiff Where to Buy, LLC (“Where to Buy”), a New Jersey limited liability company, filed a motion for a temporary restraining order and preliminary injunction against (1) Defendant Datasembly, Inc. (“Datasembly”); (2) Defendant SPINS LLC (“SPINS”); and (3) Defendant Destini Global LLC (“Destini”). (DE 2.)1 I previously denied the motion for a preliminary injunction

1 Certain citations to the record are abbreviated as follows: Certain citations to the record are abbreviated as follows: DE = docket entry Compl. = First Amended Complaint (DE 34) Mot. = Where to Buy’s Motion for Preliminary Injunction and Temporary Restraining Order (DE 2) Hack Decl. = Declaration of Brian Hack in Support of Preliminary Injunction and Temporary Restraining Order (DE 2-1) MSA = Master Services Agreement between Where to Buy and Datasembly dated May 19, 2020 (DE 2-2 Exhibit A) Sexton Decl. = Declaration of Ian Sexton (DE 17-1) SRA = Strategic Relationship Agreement Between SPINS and Datasembly dated May 26, 2022 (DE 17-2) Op. = SPINS and Destini’s Opposition to Where to Buy’s Motion for Preliminary Injunction (DE 18) Kouffman Decl. = Declaration of Jesse Kouffman (DE 18-1) against Datasembly. (DE 73.) The motion for a preliminary injunction against SPINS and Destini, however, remained outstanding while issues of personal jurisdiction were being resolved. I now rule that the motion for a preliminary injunction against SPINS and Destini must likewise be DENIED. I. BACKGROUND A. Summary of Facts Where to Buy is a company “engaged in the business of creating online tools for food brands to provide publicly available information on retail store locations where consumer food products may be purchased.” (MSA p. 1.) Datasembly is a corporation that collects retail data from grocery and quick service retail locations by “scraping” the retailers’ websites for the information. (Sexton Decl. ¶¶ 3, 6.) Datasembly then licenses its data to third parties. (Id. ¶ 4.) SPINS is a company that provides data to brand manufacturers and retailers. (Kouffman Decl. ¶ 1.) Destini is a subsidiary of SPINS. (Id. ¶ 1.) Where to Buy and Destini are competitors in their industry. (Id. ¶ 3.) In 2018, Brian Hack, a member of Where to Buy, recognized that “CPG brands had an unmet need to cost-effectively learn where, specifically, their products are being sold . . . on a store-by-store and product-by-product basis, and to share that information with their customers.” (Hack Decl. ¶ 6.) Hack met with the founder and CEO of Datasembly in September 2018 and determined that Datasembly’s data could be used to meet that need. (Id. ¶ 6.) From 2018 to 2020, Hack continued to meet with Datasembly executives to discuss the business partnership and negotiate a license agreement. (Id. ¶ 10.) Where to Buy and Datasembly entered into the Master Services Agreement (“MSA”) on May 19, 2020.

Reply = Where to Buy’s Reply Letter in Further Support of Motion for Preliminary Injunction (DE 35) Hack Reply Decl. = Reply Declaration of Brian Hack in Further Support of Order to Show Cause for Preliminary Injunction (DE 35-1) Under the MSA, Datasembly agrees to deliver “Data” to Where to Buy in exchange for a licensing fee. (MSA §§ 2.1, 3.1.) “Data” is defined as “the data gathered by [Datasembly], from publicly-available sources, on pricing availability of a wide variety of consumer packaged goods provided hereunder.” (MSA § 1.3.) The MSA grants a defined scope of exclusivity in connection with Where to Buy’s license to the same Data. (MSA § 5.2.) The MSA also grants Where to Buy a limited license to use the “DATASEMBLY” trademark: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

[Redacted]

XXXXXX On February 26, 2021, Datasembly disclosed to Where to Buy that it was working on a potential partnership with SPINS. (Hack Decl. ¶ 30.) On March 2, 2021, Where to Buy warned Datasembly that “any arrangement which allowed Destini to sell the Data to its customers would violate the MSA.” (Id.) Nevertheless, on May 26, 2022, Datasembly and SPINS entered into a Strategic Relationship Agreement (“SRA”). XXXXXXXXXXXXXXXXXXXXXX

[Redacted] [Redacted]

XXXXXXXXX On September 16, 2022, Where to Buy notified Datasembly that it was in breach of the MSA and demanded that it cease and desist sharing the Data with SPINS. (Hack Decl. ¶ 42.) On September 22, 2022, Where to Buy put SPINS on notice of Where to Buy’s rights under the MSA and its demand that Datasembly cease and desist receiving, using, and selling the Data. (Id. ¶ 43.) On September 28, 2022, SPINS replied to Where to Buy: “Datasembly assures us that the SPINS agreement with Datasembly does not constitute a breach of the contract between Where to Buy and Datasembly. We have relied and will continue to rely on this representation from Datasembly.” (Id.) B. Procedural History On November 17, 2022, Where to Buy filed its complaint in this action, asserting five counts: breach of contract as to Datasembly (Counts I and II); tortious interference with contract as to SPINS and Destini (Counts III and IV); and tortious interference with prospective economic advantage as to SPINS and Destini (Count V). (DE 1.) Where to Buy also filed a motion for a temporary restraining order and preliminary injunction seeking to enjoin Datasembly from “directly or indirectly sharing with, selling, licensing, making available to or otherwise permitting the use of its store location and product data and/or its trademark by SPINS or any of its parents, subsidiaries or affiliates, including Defendant Destini [] in connection with any online tools offered to third-party food brands on the retail store locations where consumer food products may be purchased” and to enjoin SPINS and Destini from “directly or indirectly sharing with, selling, licensing, making available to or otherwise permitting the use of [Datasembly’s] store location and product data and/or trademark in connection with store locator services.” (See DE 2-3.) On November 18, 2022, I denied Where to Buy’s motion for an immediate temporary restraining order but ordered Datasembly, SPINS, and Destini to appear for a show-cause hearing on December 6, 2022. (DE 4.) On December 5, 2022, Datasembly, SPINS, and Destini filed their written oppositions to Where to Buy’s motion. (DE 17, 18.) The parties appeared for the show-cause hearing on December 6, 2022. (DE 21.) They argued their positions on injunctive relief and offered affidavits in lieu of testimony. During the hearing, it appeared that there were outstanding issues of fact as to the Court’s personal jurisdiction over SPINS and Destini, and I ordered them to engage in targeted discovery on that issue. (DE 31 p. 49.) Additionally, I authorized Where to Buy to file a declaration in reply to defendants’ briefing. (DE 31 pp. 32–33.) Where to Buy filed its reply on December 20, 2022, along with an amended complaint. (DE 34, 35.) The amended complaint asserts three new causes of action against SPINS and Destini: trademark infringement under 15 U.S.C. § 1125(a) (Count VI); unfair competition under N.J. Stat. Ann. § 56:4-1 (Count VII); and unfair competition under New Jersey common law (Count VIII). I permitted defendants the opportunity to respond to Where to Buy’s reply and amended complaint. (DE 39.) On January 20, 2022, Datasembly, SPINS, and Destini filed their sur- replies in further opposition to Where to Buy’s motion. (DE 44, 46.) On March 2, 2023, I denied Where to Buy’s motion for a preliminary injunction against Datasembly.

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WHERE TO BUY, LLC v. DATASEMBLY, INC., Counsel Stack Legal Research, https://law.counselstack.com/opinion/where-to-buy-llc-v-datasembly-inc-njd-2023.