A Green Light for Screen Scraping? Proceed With Caution…

UPDATE:  As expected, LinkedIn appealed the lower court’s decision to grant a preliminary injunction compelling LinkedIn to disable any technical measures it had employed to block the defendant’s data scraping activities.  LinkedIn’s brief was filed on October 3, 2017.  In

Screen scraping is a problem that has vexed website owners since the early days of e-commerce – how to make valuable content available to users and customers, but prevent competitors from accessing such content for commercial purposes.  Even in the advent of social media, mobile commerce, and advanced software, the issue remains relevant to today’s companies, as evidenced by the craigslist’s victory this past week against an aggregator that had formerly scraped its user postings.

An ongoing dispute from this past winter that we have been watching has raised these long-standing issues anew.

Heritage Auctions, a major auction house that specializes in rare coins, entertainment memorabilia and natural historical items, has brought a multi-count suit against Christie’s, alleging that its competitor scraped millions of proprietary and copyrighted photos and listings from Heritage’s website and reposted them on its own subscriber-only auction site Collectrium. (Heritage Capital Corp. v. Christie’s, Inc., No. 16-03404 (N.D. Tex. filed Dec. 9, 2016)).  Plaintiffs claim that Collectrium removed copyright notices from the original listings and photos and ported the data onto its own site, thereby saving significant costs from producing similar listings or paying licensing fees and allegedly causing harm to Heritage in additional IT-related costs and diverted or lost business.

For years, craigslist has aggressively used technological and legal methods to prevent unauthorized parties from violating its terms of use by scraping, linking to or accessing user postings for their own commercial purposes.  In its latest judicial victory, on April 13, 2017, craigslist obtained a $60.5 million judgment against Radpad on various claims relating to harvesting content from craigslist’s site and sending unsolicited commercial emails to craigslist users. (Craigslist, Inc. v. RadPad, Inc., No. 16-01856 (N.D. Cal. Apr. 13, 2017)).

UPDATE: On January 18, 2019, the Ninth Circuit affirmed the award of damages and injunctive relief in favor of Facebook. (Facebook, Inc. v. Power Ventures, Inc., No. 17-16161 (9th Cir. Jan. 18, 2019) (unpublished)). The California district court in 2017 had awarded Facebook almost $80,000 in CFAA damages, representing only the period after Facebook sent its cease and desist letter to the defendant and including expenses both for technical measures to block Power Ventures from accessing Facebook servers and expenses for negotiating with Power Ventures to voluntarily stop its activities and destroy the data.  The lower court also granted Facebook’s request for a permanent injunction barring defendant from, among other things, accessing Facebook for a commercial purpose without permission.

  • Unauthorized Access: A former employee, whose access has been revoked, and who uses a current employee’s login credentials to gain network access to his former company’s network, violates the CFAA. [U.S. v. Nosal, 2016 WL 3608752 (9th Cir. July 5, 2016)]
  • Data Scraping: A commercial entity that accesses a public website after permission has been explicitly revoked can be civilly liable under the CFAA. However, a violation of the terms of use of a website, without more, cannot be the basis for liability under the CFAA, a ruling that runs contrary to language from one circuit level decision regarding potential CFAA liability for screen scraping activities (See e.g., EF Cultural Travel BV v. Zefer Corp., 318 F.3d 58 (1st Cir. 2003)). [Facebook, Inc. v. Power Ventures, Inc., No. 13-17102 (9th July 12, 2016)]

This past week, the Ninth Circuit released two important decisions that clarify the scope of liability under the federal Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030.  The Act was originally designed to target hackers, but has lately been brought to bear in many contexts involving wrongful access of company networks by current and former employees and in cases involving the unauthorized scraping of data from publicly available websites.

It’s a problem that has vexed website owners since the days of the dot-com boom – how to make certain user-generated content available to users or subscribers, but also prevent competitors and other unauthorized parties from scraping, linking to or otherwise accessing that content for their own commercial purposes.

The