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

Mealey's Cyber Tech & E-Commerce

April 08, 2024
2nd Circuit Partially Revives Securities Claims Against Coinbase

NEW YORK — A Second Circuit U.S. Court of Appeals panel on April 5 partly revived a securities suit brought against a crypto asset exchange, finding that a federal judge in New York failed to assess which version of multiple user agreements was relied on to dismiss users’ claims against the company.
April 08, 2024
Insurer Moves To Reargue Dismissal Of Breach Of Contract Claims In Subrogation Suit

WILMINGTON, Del. — An insurer asked a Delaware court if it can reargue the court’s dismissal of its breach of contract claims for pleading deficiencies and file an amended complaint before dismissal with prejudice is entered on the breach of contract claims in its subrogation lawsuit seeking recovery from an application service provider for the amount paid to nonprofit insureds for investigative and remediation steps arising from a ransomware attack.
April 08, 2024
Verdict, Award In Favor Of Sprint On Trademark, ACPA Claims Upheld

ATLANTA — Efforts by sellers of counterfeit mobile phones to undo an award of $4.5 million in statutory damages in favor of Sprint Communications LLC have failed, with the 11th U.S. Circuit Court of Appeals deeming a jury verdict of cybersquatting, infringement and counterfeiting supported by ample evidence.
April 04, 2024
Appeals Court Weighs In On Software Copyright Case For 3rd Time

CINCINNATI — A summary judgment in favor of infringement defendants by a federal judge in Michigan was upheld April 3 by the Sixth Circuit U.S. Court of Appeals, in its third ruling in a longstanding dispute over copyright protection for computer code.
April 04, 2024
California Federal Judge Offers Glimpse At Hurdles In TikTok IP Row

SAN FRANCISCO — In advance of a planned April 5 hearing on a motion to dismiss copyright infringement and false advertising claims leveled against TikTok Inc. and others, a federal judge in California has directed the video sharing app to be prepared to defend its position that the registration requirement in federal copyright law extends to copyrights registered abroad.
April 03, 2024
9th Circuit Denies Remand Of Terror-Aiding Suits Against Social Media Firms

SAN FRANCISCO — Citing the U.S. Supreme Court’s recent ruling in Twitter Inc. v. Taamneh, 143 S. Ct. 1206 (2023), a Ninth Circuit U.S. Court of Appeals panel on April 2 denied motions by the family members of terror victims in three suits to remand their cases for the purpose of filing amended complaints, concluding that amendment would be futile because the appellants failed to allege a necessary component in their claims that Twitter Inc., Facebook Inc. and Google LLC violated the Antiterrorism Act (ATA) by permitting terrorists to use their social networks for nefarious reasons.
April 02, 2024
Pandora Prevails, Panel Agrees: Asserted Patents Ineligible For Protection

WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals has upheld a judgment of patent ineligibility entered by a California federal judge, agreeing that all claims of three patents asserted against the music streaming service Pandora Media LLC are directed to “nonpatentable subject matter.”
April 01, 2024
Delaware Judge Tosses Insurers’ Subrogation Suits Arising From Ransomware Attack

WILMINGTON, Del. — A Delaware judge dismissed insurers’ subrogation lawsuits seeking recovery from an application service provider for the amount they paid to their nonprofit insureds for investigative and remediation steps arising from a ransomware attack, finding that the fact that the data breach occurred and the nonprofits incurred expenses alone is not sufficient to state a claim under the policies.
April 01, 2024
9th Circuit Panel Refuses To Rehear Ruling In $40M Commercial Crime Coverage Suit

PASADENA, Calif. — A panel of the Ninth Circuit U.S. Court of Appeals on March 29 voted unanimously to deny insurers’ petition for panel rehearing challenging its reversal of a lower federal court’s dismissal of a financial services company insured’s claim for loss under its commercial crime insurance policy’s “Computer And Funds Transfer Fraud Insuring Agreement” and its claim for tortious breach of the implied covenant of good faith and fair dealing, standing by its finding that the authorized submission of fraudulent electronic data into the insured’s computer system can arguably be described as “fraudulent entry” to trigger coverage.
March 29, 2024
Blockchain Technology Correctly Declared Patent-Ineligible, Panel Says

WASHINGTON, D.C. — The Federal Circuit U.S. Court of Appeals has upheld a New York federal judge’s determination that a patented “framework” for determining and recording the unique pattern of imperfections on a gemstone to a blockchain recites the abstract idea of gathering and storing data.
March 28, 2024
Judge Largely Denies Coinbase’s Bid For Judgment On Pleadings In SEC Enforcement

NEW YORK — A federal judge in New York on March 27 issued a split ruling mostly denying Coinbase Inc.’s motion for judgment on the pleadings because the Securities and Exchange Commission adequately alleged that the company engaged in the unregistered sale of securities but also finding that the commission had not substantiated its claim that Coinbase acts as an unregistered broker.
March 28, 2024
Ankle Monitor Is Potentially A Computer Triggering Professional Liability Coverage

CHICAGO — An Illinois appeals panel held March 27 that an ankle monitor, at the very least, is potentially computer hardware triggering professional services liability coverage, reversing a lower court’s summary judgment ruling in favor of an insurer in its declaratory judgment lawsuit disputing coverage for an underlying personal injury lawsuit.
March 21, 2024
COMMENTARY: AI Raises Stakes Across Cybersecurity And Disputes Landscape

By Lorenzo Grillo
March 27, 2024
Judge Allows UCL, Negligence Claims Against Roblox In Mothers’ ‘Gambling’ Suit

SAN FRANCISCO — A California federal judge on March 26 granted in part and denied in part a motion by Roblox Corp. to dismiss a putative class action brought against it by two mothers who accuse it of being liable for their minor children’s engagement in illegal gambling games on the Roblox platform.
March 27, 2024
Spyware Suit Judge Partly Denies Issuing Letter Rogatory On Canadian Lab

OAKLAND, Calif. — An Israeli spyware firm that is fending off computer fraud and trespass allegations by WhatsApp Inc. saw its motion to issue a letter rogatory on a third-party Canadian watchdog lab partly denied March 26 by a California federal judge who deemed some of the information sought to be duplicative of discovery already received from the plaintiff.
March 26, 2024
Panel Says Sex Toy Maker’s ‘Inconspicuous’ Arbitration Agreement Not Binding

LOS ANGELES — A California appellate panel on March 25 affirmed a trial court’s denial of a sex toy maker’s motion to compel arbitration of a putative class action filed against it by a consumer who claimed that the company deceptively marketed one of its products in violation of California’s unfair competition law (UCL), finding that the company’s “browsewrap” arbitration agreement could be viewed only by clicking a “tiny, inconspicuous link.”
March 25, 2024
FDA And Doctors Complaining That FDA’s Ivermectin Tweets Were Ultra Vires Settle

GALVESTON, Texas — In a lawsuit by a group of doctors claiming that the Food and Drug Administration exceeded its statutory authority when it created social media and government website posts recommending that people not use ivermectin to treat or prevent COVID-19, a Texas federal judge on March 22 dismissed the case with prejudice pursuant to the stipulation of dismissal filed by the parties.
March 25, 2024
Publishers Ask 2nd Circuit To Find Internet Archive’s EBook Lending Infringing

NEW YORK — The “wholly manufactured” practice of “controlled digital lending” in which Internet Archive (IA) digitizes books and lends them online “is radical and unlawful,” book publishers tell the Second Circuit U.S. Court of Appeals in their appellee brief, seeking affirmance of a trial court’s finding that the practice infringed their copyrights.
March 22, 2024
Meta, Spotify Back Epic’s Motion To Enforce Injunction In App Store Antitrust Row

OAKLAND, Calif. — Agreeing with plaintiff Epic Games Inc. that Apple Inc. has not complied with an injunction requiring it to permit app developers to inform users of methods of making in-app purchases (IAPs) outside of the App Store, Meta Platforms Inc., Spotify USA Inc. and others moved to file amicus curiae briefs in California federal court supporting Epic’s motion to enforce the injunction.
March 21, 2024
DOJ, States Sue Apple For Anticompetitive, Exclusionary Conduct, In Apps, Phones

NEWARK, N.J. — Apple Inc. was hit with allegations of monopolization under the Sherman Act on March 21, as the U.S. Department of Justice (DOJ) and the attorneys general for 16 states, on behalf of the United States and the corresponding states, filed a complaint in New Jersey federal court accusing the tech giant of years of “respond[ing] to competitive threats . . . by making it harder or more expensive for its users and developers to leave than by making it more attractive for them to stay” while “wrap[ping] itself in a cloak of privacy, security, and consumer preferences to justify its anticompetitive conduct.”
March 20, 2024
4th Circuit Stands By Contributory Copyright Liability Findings For ISP

RICHMOND, Va. — The Fourth Circuit U.S. Court of Appeals on March 19 denied dual petitions for rehearing or rehearing en banc, leaving in place a panel decision one month earlier that vacated a $1 billion award for vicarious copyright infringement by an internet service provider (ISP) while also upholding findings that the ISP is liable for contributory infringement.
March 19, 2024
Coronavirus Tracing App Creator Again Denied Writ Of Injunction By High Court

WASHINGTON, D.C. — A month and a half after U.S. Supreme Court Justice Elena Kagan denied its application for a writ of injunction, a software company on March 18 saw its application to enjoin Apple Inc.’s purported “censorship of software” rejected a second time, this time by the entire court.
March 18, 2024
High Court Hears Arguments On State Action, Government Coercion Of Social Media

WASHINGTON, D.C. — In oral arguments on March 18 over claims that the federal government violated the First Amendment to the U.S. Constitution by purportedly coercing social media platforms into removing disfavored speech, the U.S. Supreme Court justices sought clarification on such issues as state action, traceability and redressability as they grapple with the respondents’ standing and the scope of an injunction against the government.
March 15, 2024
Judge OKs Arbitral Review Of Esports Players’ $120M Monopoly Claims

LOS ANGELES — A California federal judge dismissed a putative class action brought by two professional players of the video game “Call of Duty” (CoD) and one affiliated business entity against developer Activision Blizzard Inc. after the parties filed a stipulation agreeing that an international arbitral tribunal will decide the arbitrability of claims that Activision monopolized CoD-related esports.
March 15, 2024
High Court: State Action On Social Media Requires Exercise Of Actual Authority

WASHINGTON, D.C. — Vacating and remanding two lawsuits in which public officials were accused of violating the First Amendment to the U.S. Constitution by blocking naysayers on social media, the U.S. Supreme Court on March 15 established a two-step test for determining whether such activity by an official constitutes state action, making it susceptible to legal action under U.S. Code Title 42 Section 1983, or is merely their own private, protected speech.