Mealey's Cyber Tech & E-Commerce : Mealey's : Legal News & Analysis

Mealey's Cyber Tech & E-Commerce

January 29, 2024
No Laughing Matter: Dudesy AI Sued Over George Carlin Comedy Video

LOS ANGELES — Individuals using an artificial intelligence created and publicly posted a “click-bait” video of deceased comedian George Carlin without authorization for the use of his likeness or any license to use copyrighted material, the comedian’s representatives allege in a lawsuit filed in California federal court.
January 23, 2024
WhatsApp, NSO Defend Discovery Requests In Spyware Dispute

OAKLAND, Calif. — WhatsApp Inc. asks a California federal court to order defendant NSO Group Technologies Limited to submit documents related to all the different types of spyware that the Israeli company used to spy on its users in a reply brief supporting its motion to compel discovery responses, while the defendant maintains that it is entitled to information about the company that aided the plaintiff in its investigation related to the claimed surveillance of WhatsApp users.
January 23, 2024
Florida, Texas Attorneys General Defend Social Media Laws In Supreme Court

WASHINGTON, D.C. — The attorneys general of Texas and Florida each filed briefs supporting the constitutionality of laws enacted in their respective states that prohibit social media platforms from viewpoint-based censorship of users’ postings, with each attorney general telling the U.S. Supreme Court that the statutes would govern the platforms’ conduct or business practices and not their speech.
January 22, 2024
Supreme Court Won’t Hear Professor’s 1st Amendment Suit Over Blog Post

WASHINGTON, D.C. — A North Carolina State University (NCSU) professor saw his petition for certiorari denied by the U.S. Supreme Court on Jan. 22, with the high court declining to consider his questions about whether his ouster from a degree program was an adverse employment action in response to a controversial blog post that he authored and whether that post was protected under the First Amendment to the U.S. Constitution.
January 19, 2024
Minor ‘Apex Legends’ Player Not Required To Arbitrate UCL Claim, Panel Says

RIVERSIDE, Calif. — A California appellate panel affirmed a trial court’s denial of a video game developer’s motion to compel arbitration of a minor’s putative class action claims that it violated the state’s unfair competition law (UCL) by deceptively inducing minors into paying for digital currency to purchase in-game items, finding the arbitration agreement not applicable after the minor disaffirmed his contract with the developer.
January 18, 2024
Federal Judge Delays Trial Between SEC, Crypto Firm In Hopes CEO Can Be Extradited

NEW YORK — A federal judge in New York agreed to one postponement of a jury trial in the Securities and Exchange Commission’s case against cryptocurrency firm Terraform Labs Pte. Ltd. and its chief executive officer, who are accused of a large-scale fraud, after the CEO’s counsel said there is a possibility he will be released from custody in Montenegro to attend the trial.
January 17, 2024
High Court Told ‘Chaos’ Will Ensue ‘In A World Without Chevron’ Deference

WASHINGTON, D.C. — The U.S. Supreme Court was told Jan. 17 that “chaos” will ensue “in a world without Chevron” deference by government attorneys, who urged it to apply stare decisis and uphold Chevron, which is being challenged in two cases arising out of federal fishing regulations.
January 18, 2024
Law Firm To 9th Circuit: ‘Common Practice’ Of Keyword Ads Infringed No Trademarks

SAN FRANCISCO — Asking the Ninth Circuit U.S. Court of Appeals to affirm a trial court’s judgment that its purchasing of a competitor’s trademark in Google keyword ads was not trademark infringement, an Arizona law firm contends in its appellee brief that the purchasing of such online advertisements is a “common practice” that, at best, resulted in de minimis consumer confusion.
January 17, 2024
Panel: Southwest’s Costs Are Not Categorically Barred From System Failure Coverage

NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals on Jan. 16 determined that a lower court erred in finding that Southwest Airlines' costs related to a 2016 computer system failure are categorically barred from coverage as a matter of law, reversing and remanding the lower court’s grant of summary judgment in favor of a cyber risk insurer in a coverage dispute arising from Southwest’s alleged more than $77 million in losses resulting from the system failure and subsequent flight disruptions.
January 12, 2024
COMMENTARY: The Changing Landscape Of Antitrust Scrutiny In A Post-Pandemic World

By Gary Foster, Raphael Kiess and Rishi Chhatwal
January 16, 2024
Epic, Apple Denied Certiorari In UCL Antitrust Dispute Over App Store, Fortnite

WASHINGTON, D.C. — Epic Games Inc. and Apple Inc. saw their competing petitions for certiorari denied by the U.S. Supreme Court on Jan. 16, with the high court declining to consider questions about the Sherman Act and injunctive relief in the companies’ respective claims for monopolistic behavior, contractual duties and unfair competition in the sale of apps and related items for mobile devices using Apple’s operating system (iOS).
January 16, 2024
Per Jack Daniel’s Ruling, 9th Circuit Reverses In ‘Punchbowl’ Trademark Suit

PASADENA, Calif. — The U.S. Supreme Court’s recent ruling in Jack Daniel’s Properties Inc. v. VIP Products LLC “altered the law that governed” when it previously found that an online news service’s use of the “Punchbowl” mark did not dilute a party-planning firm’s trademark, a Ninth Circuit U.S. Court of Appeals panel held Jan. 12, leading it to, after rehearing, issue a revised opinion reversing a trial court’s dismissal and remanding for further consideration under the traditional likelihood of confusion test.
January 12, 2024
Judge Dismisses With Prejudice UCL Suit Against Apple For ICloud Storage Fees

SAN FRANCISCO — A California federal judge on Jan. 11 granted Apple Inc.’s motion to dismiss a third amended putative class complaint brought by plaintiffs who claim that Apple “addicted” them to its free iCloud data storage service and then required them to pay once the data they stored exceeded its free tier, finding that they failed to plead any misrepresentations or fraudulent conduct.
January 12, 2024
EBay Fined $3 Million For Harassment Campaign Against Online Critics

BOSTON — In a deferred prosecution agreement filed Jan. 11 in Massachusetts federal court, eBay Inc. announced that it is paying a $3 million criminal monetary payment to resolve charges of stalking, witness tampering and destruction of records related to a campaign of harassment carried out by a group of eBay employees and executives against a couple that published articles on their website that were critical of the online auction platform provider.
January 10, 2024
Judge Compels Arbitration Of UCL Suit Accusing App Of Illegal Sportsbook Services

LOS ANGELES — A California federal judge on Jan. 9 granted a motion to compel arbitration of putative class claims against an app company accused of offering illegal sports gambling services in violation of California’s unfair competition law (UCL).
January 10, 2024
Copyright Claims Tossed With Leave To Amend In California Software Row

SAN FRANCISCO — Counterclaims of direct and contributory copyright infringement leveled by a software developer against a former licensee were dismissed as “too conclusory” on Jan. 9 by a federal judge in California.
January 10, 2024
Judge Affirms Partial Sanctions Denial In Bitcoin Ownership Suit

WEST PALM BEACH, Fla. — Overruling a bitcoin mining firm’s objections to a magistrate judge’s partial denial of a motion to impose post-trial discovery sanctions on the defendant in a cryptocurrency ownership dispute, a Florida federal judge deemed the magistrate’s ruling “to be well-reasoned and correct” related to required disclosures and compliance with court deadlines in completing a judgment debtor fact form.
January 09, 2024
Twitter-Banning Suit Remanded; Amount In Controversy Found Lacking

SAN FRANCISCO — Twitter Inc. failed to establish that the amount in controversy in a lawsuit over the suspension of two attorneys’ social media accounts exceeded the minimum federal threshold of $75,000, a California federal judge found, granting the plaintiff’s motion to remand the matter to Florida state court.
January 08, 2024
Pet Brush Maker May Subpoena Meta To Obtain Online Counterfeiters’ Identities

SAN FRANCISCO — A group of website operators accused of selling and advertising counterfeit goods lost their bid to quash a discovery subpoena on Meta Platforms Inc., with a California federal judge finding that the plaintiff demonstrated that good cause exists to obtain the defendants’ identifying information for the purpose of serving them with its complaint for intellectual property infringement and unfair competition.
January 05, 2024
Merck, Insurers Ask N.J. High Court To Dismiss Cyberattack Coverage Dispute

TRENTON, N.J. — Merck & Co. Inc. and certain insurers filed stipulations in the New Jersey Supreme Court seeking dismissal of the insurers from Merck’s lawsuit seeking coverage for its losses arising from a June 2017 malware/cyberattack.
January 05, 2024
Amicus Asks 2nd Circuit To Clarify Fair Use Standard In Digital Library Suit

NEW YORK — Filing a brief in support of neither party in an appeal by Internet Archive (IA) of a New York federal court’s finding that the “controlled digital lending” practiced in its digital library did not constitute fair use under the Copyright Act, amicus curiae HathiTrust asks the Second Circuit U.S. Court of Appeals to specify that fair use, “as an ‘equitable rule of reason,’” should be decided on a case-by-case basis “to avoid rigid application of the copyright statute when . . . it would stifle the very creativity” protected by the statute.
January 04, 2024
9th Circuit Consolidates 3 Terror-Aiding Cases Seeking Remand

SAN FRANCISCO — Appeals in three cases in which surviving family members of terror victims bring claims against Twitter Inc., Facebook Inc. and Google LLC under the Antiterrorism Act (ATA) were consolidated Jan. 3 by the Ninth Circuit U.S. Court of Appeals as it prepares to consider the appellants’ parallel motions to remand the lawsuits for the purpose of filing amended complaints in the wake of recent U.S. Supreme Court rulings and similar terror-aiding suits.
January 04, 2024
Apple, Epic Defend Their Certiorari Bids Over UCL Antitrust, National Injunction

WASHINGTON, D.C. — The U.S. Supreme Court recently announced that on Jan. 12 it will consider related petitions for certiorari filed by Epic Games Inc. and Apple Inc. that both sprung from the companies’ disputes over Apple’s alleged antitrust violations under California’s unfair competition law (UCL) and a trial court’s imposition of a nationwide injunction barring some of the purported anti-competitive practices.
January 04, 2024
Montana Attorney General Appeals Injunction Of TikTok Ban To 9th Circuit

SAN FRANCISCO — One month after a Montana law banning any use of the TikTok social network within the state was preliminarily enjoined from taking effect, Montana Attorney General Austin Knudsen filed a notice informing the Montana federal court that he was appealing the ruling to the Ninth Circuit U.S. Court of Appeals.
January 03, 2024
Amici Ask Supreme Court To Uphold Delegation Clause In Arbitration Agreement

WASHINGTON, D.C. — The U.S. Chamber of Commerce headed up a diverse coalition of organizations on the third of three amicus curiae briefs filed in support of Coinbase Inc. as the U.S. Supreme Court decides the priority and enforceability of a delegation clause when deciding the arbitrability of claims against the cryptocurrency firm.