ZANGO, INC., Plaintiff-Appellant, v. KASPERSKY LAB, INC., Defendant-Appellee.
No. 07-35800.
United States Court of Appeals, Ninth Circuit.
June 25, 2009.
Argued and Submitted Feb. 2, 2009.
568 F.3d 1169
A well-organized drug ring was smuggling marijuana from Canada and distributing it in the U.S. The gang was operating out of a suburban warehouse where cars showed up to get batches of the drug. Tran was in one of the cars loaded from the warehouse. Nguyen, the driver, 22 at the time, appears to be naive if not stupid. It‘s unlikely that the gang would let him have 70 pounds of the drug without having him under control. Tran had plenty of experience in drug smuggling from Canada. No plausible reason was given why he should be sitting in a car to which the drugs are offloaded unless he was part of the conspiracy. Nguyen gave a vague account of how he knew Tran and why he was there, and Nguyen was impeached. A rational juror could infer that, beyond a reasonable doubt, Tran was the conspiracy‘s man to shepherd the drugs in the car. This reasonable conclusion chimes with Nguyen‘s evidence that he and Tran together picked up the marijuana.
I dissent from the majority‘s reversal of Tran‘s conviction.
Michael Rosenberger, Gordon Tilden Thomas & Cordell LLP, Seattle, WA, for the plaintiff-appellant.
Erik Paul Belt, Bromberg & Sunstein LLP, Boston, MA, for the defendant-appellee.
Opinion by Judge RYMER; Concurrence by Judge FISHER.
RYMER, Circuit Judge:
We must decide whether a distributor of Internet security software is entitled to immunity under the safe harbor provision of the Communications Decency Act of 1996,
Zango, Inc. (Zango) is an Internet company that provides access to a catalog of online videos, games, music, tools, and utilities to consumers who agree to view advertisements while they browse the Internet. It brought this action against Kaspersky Lab, Inc., (Kaspersky) which distributes software that helps filter and block potentially malicious software, for improperly blocking Zango‘s software. Kaspersky invoked the protection of
I
Zango has four downloadable software programs-“Zango,” “Seekmo,” “Hotbar,” and “Spam Blocker Utility.” Zango provides free access to its catalog if customers agree to download and install one of these programs, and to receive online ads that are displayed as they browse the Internet. It also offers a premium version of “Hotbar” and “Spam Blocker Utility” for which customers may pay if they wish to access Zango‘s catalog without having to view advertisements.
Kaspersky is the U.S. distributor of Internet security software developed by Kaspersky Lab ZAO, which is based in Russia. Among Kaspersky‘s products are “Kaspersky Internet Security” (KIS) and “Kaspersky
The Kaspersky software classifies Zango‘s programs as adware, a type of malware. Once installed on a user‘s computer, adware monitors a user‘s Internet browsing habits and causes “pop-up ads” to appear on a computer screen while the user browses the Internet. Adware can also open links to websites and computer servers that host malware and expose users’ computers to infection, and can swamp a computer‘s memory and slow down computer speed and performance. For these reasons, pop-up ads and adware are unpopular among computer users, and consumers often install security software specifically to block adware.
The Kaspersky software detects malware that may be present in an e-mail, web page, or software program that a computer user is about to download. If the Kaspersky software determines that the download has characteristics that are consistent with malware, the software warns the user that the download contains possible malware. Theoretically (though this is contested), the user of the Kaspersky software then has the option whether to allow or reject the download of the potential malware-carrying program.
The Kaspersky software is designed to communicate via the Internet with online databases and update services that Kaspersky‘s Russian affiliate operates in Moscow. The security software is designed to be updated regularly in order to keep malware definitions current, because new forms of malware are constantly being developed. A Kaspersky customer may configure the software to communicate automatically with these online update servers. Customers may also manually instruct their Kaspersky software to communicate with the online update server.
Zango alleges that KIS interferes with Zango customers’ concurrent use of the Zango software in two ways. First, KIS disables the “toolbar” feature of Zango‘s software, which provides a bar positioned at the top of the user‘s Internet browser page that displays links to relevant advertisers’ websites to users searching for data on a specific subject. Furthermore, Zango asserts, KIS does not actually permit Zango customers to consent to a Zango program‘s ongoing operation. Zango avers that each time the Zango program attempts to access the Internet, KIS displays a warning that gives the computer user the option either to block the Zango program or “skip” the warning. However, while KIS‘s warning includes an “apply to all” checkbox that presumably is meant to stop the repeated warnings if the user opts to “skip” and selects “apply to all,” Zango claims that the checkbox does not work. Consequently, a Zango user running KIS is forced to deal with constant warnings. According to Zango, the inevitable result is that a person using Zango and KIS concurrently gives up, thus permitting the Kaspersky software to block the Zango software.
Zango adds that individuals who were already running KIS and who sought to download Zango software were prevented from doing so by KIS. When a user attempted to download Zango software, KIS displayed a “Web Anti-Virus Warning” that advised the user to block the Zango download. The “Web Anti-Virus Warning” permitted the user to click “Allow” to override the warning and download the Zango program; however, once the user
Zango states that it has not experienced similar problems with market leaders in the anti-spyware industry such as McAfee, Norton (Symantec), and Webroot. Rather, Zango contends, these companies advise users of the presence of Zango‘s programs and offer Zango customers the choice to ignore the advisory. Zango attributes the decline in the number of its customers between March 2007 and June 2007 to interference with Zango software by Kaspersky‘s software and by other anti-spyware software that similarly blocks the operation of Zango programs.2
The degree of threat posed to users by Zango‘s software is in dispute. Kaspersky contends that Zango‘s software is adware, and possibly spyware. Spyware, which is often installed on a computer without the user‘s knowledge or consent, covertly monitors the user‘s activities and exposes the user to the risk that his or her passwords and confidential information may be stolen. Zango maintains that it installs its soft-
Zango initially brought this action in Washington state court, advancing claims for injunctive relief, tortious interference with contractual rights, violation of the Washington Consumer Protection Act, trade libel, and unjust enrichment. Kaspersky removed the case to federal court. The district court denied Zango‘s request for a temporary restraining order, and Kaspersky subsequently filed a motion to dismiss under
Zango has timely appealed.4
II
The heart of Zango‘s appeal is that Congress intended statutory immunity under
Section 230, which provides protection for private blocking and screening of offensive material, is part of the Communications Decency Act of 1996(CDA), Pub.L. 104-104. The CDA was enacted “to control the exposure of minors to indecent material” on the Internet. Batzel v. Smith, 333 F.3d 1018, 1026 (9th Cir.2003).
Section 230(c)(2)(B) provides:
(c) Protection for “good samaritan” blocking and screening of offensive material
. . .
(2) Civil Liability
No provider or user of an interactive computer service shall be held liable on account of-
. . .
(B) any action taken to enable or make available to information content providers or others the technical means to restrict access to the material described in paragraph (1).
The material that can be blocked under the exemption includes “material that the provider or user considers to be obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable, whether or not such material is constitutionally protected[.]”
The statute defines “interactive computer service” as “any information service, system, or access software provider that provides or enables computer access by multiple users to a computer server, including specifically a service or system that provides access to the Internet and such systems operated or services offered by libraries or educational institutions.”
“Access software provider” is defined in part as “a provider of software (including client or server software), or enabling tools that do any one or more of the following: (A) filter, screen, allow, or disallow content; (B) pick, choose, analyze, or digest content.”
Thus, a provider of software or enabling tools that filter, screen, allow, or disallow content that the provider or user considers obscene, lewd, lascivious, filthy, excessively violent, harassing, or otherwise objectionable may not be held liable for any action taken to make available the technical means to restrict access to that material, so long as the provider enables access by multiple users to a computer server.
Going beyond the statute‘s plain language, Zango relies on legislative history to show that Congress intended to grant immunity only to content providers. In particular, Zango points to the House Conference Report‘s statement that “[o]ne of the specific purposes of [§ 230] is to overrule Stratton-Oakmont v. Prodigy and any other similar decisions which have treated [Internet service] providers and users as
According protection to providers of programs that filter adware and malware is also consistent with the Congressional goals for immunity articulated in
This is the first time we have considered this particular application of
Nevertheless, Zango reads Batzel to imply that the immunity in
III
Kaspersky will receive protection under
We agree with the district court that Kaspersky is a “provider” of an “interactive computer service” under the plain terms of
Zango argues that merely providing an online update feature does not satisfy
Zango further maintains that
In addition, Zango questions whether the method by which Kaspersky updates itself matters at all, given that users could possibly be provided with updates by other means that would not be shielded by
Neither does clothing Kaspersky with good samaritan protection open the door to immunity for any and all software providers that offer online updates, as Zango fears. The second requirement of
IV
Zango argues that
To repeat,
Zango also suggests that
V
As Zango notes, the district court based its dismissal exclusively on subparagraph (B). Zango urges us not to affirm on the alternative basis of subparagraph (A), maintaining that a triable issue of fact exists as to Kaspersky‘s good faith. However, we have no need to consider subparagraph (A) immunity because we agree with the district court‘s disposition under subparagraph (B).
To the extent that Zango in reply raises a different issue-whether subparagraph (B), which has no good faith language, should be construed implicitly to have a good faith component like subparagraph (A) explicitly has-the argument is waived. See Eberle, 901 F.2d at 818. For present purposes, we note that subparagraph (B) comes with only one constraint: the protection afforded extends only to providers who “enable or make available to . . . others” the technical means to restrict access to material that either the user or the provider deems objectionable.10
Conclusion
The district court correctly held that Kaspersky is a provider of an “interactive computer service” as defined in the Communications Decency Act of 1996. We conclude that a provider of access tools that filter, screen, allow, or disallow con-
AFFIRMED.
FISHER, Circuit Judge, concurring:
I concur with my colleagues that the plain language of the Communications Decency Act‘s “good samaritan” immunity provision,
Kaspersky is an “access software provider that provides or enables computer access by multiple users to a computer server,”
When presented at oral argument with the possibility
Computer users are of course always free to replace their blocking software with software more in line with their preferences, and this market-based solution finds support in the statute. See
In Congress’ judgment, immunity is necessary to facilitate users’ access to blocking software that makes Internet use “safer” than it otherwise would be. See
