X Corp v. Center for Countering Digital Hate, Inc.

District Court, N.D. California·Decided March 25, 2024·No. 3:23-cv-03836·Unknown

Opinion

X CORP., Case No. 23-cv-03836-CRB

Plaintiff,

ORDER GRANTING ECF MOTION v. TO DISMISS

DIGITAL HATE LTD. & STICHTING FOUNDATION, Defendant. Plaintiff X Corp., the social media company formerly known as Twitter, has sued Defendants Center for Countering Digital Hate, Inc. (“CCDH U.S.”), Center for Countering Digital Hate Ltd. (“CCDH U.K.”) (together, “CCDH”), Stichting European Climate Foundation (“ECF”), and Does (collectively, “Defendants”) in connection with CCDH’s actions “to improperly gain access to protected X Corp. data,” and then use that data in publications critical of X Corp. FAC (dkt. 10) ¶ 1. Both CCDH and ECF have filed motions—CCDH moves to dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure and moves to strike pursuant to California’s anti-SLAPP statute, California Civil Procedure Code § 425.16, see MTD&S (dkt. 47), and ECF moves to dismiss pursuant to Rules 12(b)(2) and 12(b)(6) of the Federal Rules of Civil Procedure, see Mot. (dkt. 49). The Court addresses CCDH’s motion in a separate order. This order pertains to ECF’s motion only. For the reasons described below, the Court GRANTS ECF’s motion to dismiss on both grounds. I. BACKGROUND The Court includes a lengthier background section in its order adjudicating CCDH’s motion and will not repeat it here. The most relevant facts1 pertaining to this motion are as follows. A. Parties X Corp. is a corporation organized under the laws of the State of Nevada, with a principal place of business in San Francisco, California. FAC ¶ 7. X Corp. provides a real-time social media platform (“the X platform”) to its users, who can share ideas through public posts. Id. CCDH U.S. is a non-profit corporation organized under the laws of Washington, D.C., with its principal place of business there as well. Id. ¶ 8. CCDH U.K. is a non-profit organization formed under English law and headquartered in London, England. Id. ¶ 9. CCDH U.S. and CCDH U.K. are affiliated corporate entities. Id. CCDH prepares and publishes reports and articles about organizations and individuals who post on social media platforms “on widely debated topics, included COVID-19 vaccinations, reproductive healthcare, and climate change.” Id. ¶ 17. It then makes those reports “publicly available and free.” Id. X Corp. alleges that CCDH’s reports use “flawed methodologies to advance incorrect, misleading narratives,” cherry-picking data and labeling as “hate speech” content that does not conform to its views. Id. ¶ 18. X Corp. maintains that “CCDH’s reports and articles, coupled with its demands to entirely remove certain users from platforms, are transparent efforts to censor viewpoints that CCDH disagrees with, and reveal CCDH’s goal of leaving on the platforms only viewpoints that CCDH supports.” Id. ¶ 20. Indeed, X Corp. alleges that CCDH is an “activist organization[] masquerading as [a] research agenc[y].” Id. ¶ 1. ECF is a non-profit foundation formed under Dutch law and headquartered in The Hague, Netherlands. Id. ¶ 10.

1 For the purposes of this motion, the Court accepts as true the allegations from the B. CCDH Improperly Accessing Data from Brandwatch The dispute between X Corp. and ECF is based on help that ECF provided to CCDH in order to access X Corp. data held by a company called Brandwatch. Brandwatch, “a trusted partner of X,” and notably not a defendant in this case, “provides SaaS products2 that enable its customers to conduct brand monitoring on social media, customer research on opinions and trends, campaign planning and campaign effectiveness measurement, competitive analysis and risk management, influencer identification and market research, and audience segmentation and analysis.” Id. ¶ 28. Brandwatch had contracts with X Corp. and with ECF, both of which are relevant here. Id. ¶¶ 29, 35. X Corp. entered into a contract with Brandwatch on May 1, 2020, called the “Master License Agreement” (“the MLA”). Id. ¶ 29. Pursuant to the MLA, Brandwatch could access certain data regarding X Corp., referred to as “‘Licensed Materials,’” which included posts on the X platform, in order “to enable Brandwatch’s customers to use its SaaS products to analyze posts and X/Twitter users.” Id. X Corp. would stream its Licensed Materials from its servers, “including in California,” to “servers used by Brandwatch [] located in the United States, which Brandwatch’s applications accessed to enable [its] users with login credentials to analyze the data.” Id. Brandwatch agreed that it would “‘not attempt to (and will not allow others to): . . . copy, sell, lease, sublicense, distribute, redistribute, syndicate, create derivative works or assign or otherwise transfer or provide access to, in whole or in part, the Licensed Material to any third party.’” Id. ¶ 31. Brandwatch further agreed to keep “Twitter Content” secure. Id. ECF was a subscriber to Brandwatch’s applications, and therefore also had a contract with Brandwatch. Id. ¶ 35. X Corp. alleges that Brandwatch’s terms of service (“Brandwatch ToS”), to which ECF must have agreed, must be similar to the ones publicly available at https://www.brandwatch.com/legal/terms-and-conditions/. Id. Brandwatch provided ECF with login credentials, which enabled ECF to log into Brandwatch’s

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X Corp v. Center for Countering Digital Hate, Inc., (N.D. Cal. 2024).

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