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Foreign websites that use geotargeted advertising may be subject to personal jurisdiction in the United States, even if they have no physical presence in the United States and do not specifically target their services to the United States, according to a new ruling from the Fourth Circuit Court of Appeals.

In UMG Recordings, Inc. v. Kurbanov, twelve record companies sued Tofig Kurbanov, who owns and operates the websites: flvto.biz and 2conv.com. These websites enable visitors to rip audio tracks from videos on various platforms, like YouTube, and convert the audio tracks into downloadable files.

The record companies sued Kurbanov for copyright infringement and argued that a federal district court in Virginia had specific personal jurisdiction over Kurbanov because of his contacts with Virginia and with the United States more generally. Kurbanov moved to dismiss for lack of personal jurisdiction, and the district court granted his motion.
Continue Reading Stretching the Bounds of Personal Jurisdiction, 4th Circuit Finds Geotargeted Advertising May Subject Foreign Website Owner to Personal Jurisdiction in the U.S.

Is scraping data from a publicly available website trade secret misappropriation? Based on a new opinion from the Eleventh Circuit, It might be.

In Compulife Software, Inc. v. Newman, Compulife Software, a life insurance quote database service alleged that one of its competitors scraped millions of insurance quotes from its database and then sold the proprietary data themselves. Compulife brought a number of claims against its competitors, including misappropriation of trade secrets under Florida’s version of the Uniform Trade Secrets Act (FUTSA) and under the Federal Defend Trade Secrets Act (DTSA).

Following a bench trial, Magistrate Judge James Hopkins found that, while Compulife’s underlying database merits trade secret protection, the individual quotes generated through public Internet queries to the database do not. So using a bot to take those individual quotes one by one did not constitute a misappropriation of trade secrets. On appeal, however, the Eleventh Circuit disagreed, vacated, and remanded the case.

Facts of the Case

Compulife’s main product is its “Transformative Database,” which contains many different premium-rate tables that it receives from life insurance companies. While these rate tables are available to the public, Compulife often receives these tables before they are released for general use. In addition, Compulife applies a special formula to these rate tables to calculate its personalized life insurance quotes.
Continue Reading Webscraping a Publicly Available Database May Constitute Trade Secret Misappropriation

New York courts are increasingly ordering the production of social media posts in discovery, including personal messages and pictures, if they shed light on pending litigation. Nonetheless, courts remain cognizant of privacy concerns, requiring parties seeking social media discovery to avoid broad requests akin to fishing expeditions.

In early 2018, in Forman v. Henkin, the New York State Court of Appeals laid out a two-part test to determine if someone’s social media should be produced: “first consider the nature of the event giving rise to the litigation and the injuries claimed . . . to assess whether relevant material is likely to be found on the Facebook account. Second, balanc[e] the potential utility of the information sought against any specific ‘privacy’ or other concerns raised by the account holder.”

The Court of Appeals left it to lower New York courts to struggle over the level of protection social media should be afforded in discovery. Since this decision, New York courts have begun to flesh out how to apply the Forman test.

In Renaissance Equity Holdings LLC v. Webber, former Bad Girls Club cast member Mercedes Webber, or “Benze Lohan,” was embroiled in a succession suit. Ms. Webber wanted to continue to live in her mother’s rent controlled apartment after the death of her mother. To prevail, Ms. Webber had to show that she had lived at the apartment for a least two years prior to her mother’s death.
Continue Reading Are Facebook Posts Discoverable? Application of the Forman Test in N.Y.