844 F. Supp. 2d 1025
N.D. Cal.2012Background
- Facebook, Inc. sues Power Ventures, Inc. and Steven Vachani alleging CAN-SPAM, CFAA, and California Penal Code § 502 violations.
- Power offered Power.com integrations with Facebook, collecting user Facebook credentials without Facebook’s permission.
- Launch Promotion (Dec 1–26, 2008) offered $100 for inviting new Power.com users; invitations stated to come from Facebook and used @facebookmail.com addresses.
- Facebook blocked Power.com access after notifying Power; Power used automated scripts and multiple IP addresses to continue access.
- Court previously denied and granted various motions; the current order grants Facebook’s summary judgments on counts 1–3 and denies Power’s summary judgment on those counts.
- Key issue is whether Defendants initiated emails, bypassed protections, and caused damages sufficient to sustain claims under CAN-SPAM, §502, and CFAA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| CAN-SPAM standing | Facebook is an IAS provider suffering adverse effects. | Plaintiff’s damages are negligible spam costs and not cognizable harms. | Facebook has standing to pursue CAN-SPAM claim. |
| CAN-SPAM initiation and header accuracy | Defendants initiated the emails via Launch Promotion and procurement; headers misleading. | Facebook users authorized emails; Power had no control over headers. | Defendants initiated emails and header information was materially misleading. |
| Section 502 without permission | Defendants circumvented barriers and accessed Facebook without permission. | No circumvention beyond ordinary access; posts that blocks were ineffective. | Defendants circumv ented technical barriers; access was without permission. |
| CFAA loss threshold and standing | Investigative/remedial costs exceed $5,000; damages established. | Damages not shown, no standing under CFAA. | Plaintiff proved loss exceeding $5,000; CFAA standing established. |
Key Cases Cited
- Gordon v. Virtumundo, Inc., 575 F.3d 1040 (9th Cir. 2009) (defines standing for CAN-SPAM IAS providers and harms recoverable)
- ASIS Internet Servs. v. Azoogle.com, Inc., 357 F. App’x 112 (9th Cir. 2009) (spam-harm standing and related damages framework)
- Carmen v. San Francisco Unified School Dist., 237 F.3d 1026 (9th Cir. 2001) (district-file materials and evidence considerations in summary judgment)
- Multiven, Inc. v. Cisco Sys., Inc., 725 F. Supp. 2d 887 (N.D. Cal. 2010) (CFAA-like analyses and similarity to §502 elements)