Stealing data: Ninth Circuit examines whether cellular data can be subject to a conversion claim

data conversion

Plaintiffs sued Google alleging Google improperly used plaintiffs’ cellular data without consent, constituting conversion under California law. The lower court dismissed the case for failure to state a claim. Plaintiffs sought review with the Ninth Circuit. On appeal, the court reversed the lower court’s decision concerning the conversion claim, finding that cellular data is something that can be subject to conversion.

The court observed that a successful conversion plaintiff must plead and prove (1) ownership or rightful possession of property, (2) defendant’s use of the property in violation of plaintiff’s rights, and (3) resulting damages. The court found that plaintiffs satisfactorily established cellular data as a form of personal property subject to conversion, given its definable nature, potential for exclusive control, and plaintiffs’ legitimate expectations based on their data plans.

Moreover, the court concluded that plaintiffs’ allegations against Google meet the criteria for conversion, demonstrating unauthorized use of their cellular data that went against their property interests and resulted in quantifiable damages. By equating Google’s actions to a “forced sale” of plaintiffs’ data, the court underscored the tangible impact of intangible property loss.

Taylor v. Google, 2024 WL 837044 (9th Cir. February 28, 2024)

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What are the legal issues around web scraping?

Web scraping is that activity where a party uses automated software to crawl the internet and copy data and other content, usually so that it can compile that together and make its own product offering. This may be of concern to you because you are a company that does web scraping. Or you may be a web publisher and there are other parties that are scraping your content. Let’s examine some of the legal issues around web scraping.

Breach of contract

One of the questions that commonly arises around web scraping is whether the activity is a breach of contract. More specifically, the question is whether the use of automated software violates the terms of service of the website that is being scraped. You often see website terms of service prohibit the use of spider and other automated crawling software to access and use the site. Parties who own websites that are being scraped will often look to see whether the scraping of their site is a breach of contract.

Copyright infringement

Another common question arising when analyzing web scraping is lawful whether scraping constitutes copyright infringement. This is a difficult argument to make if all that is being scraped is data, because mere facts usually are not subject to copyright protection. But if there is other content being scraped, such as images or specific compilations of data, the question of copyright infringement becomes a bit easier to answer in that unauthorized copying is an likely an infringement.

Computer Fraud and Abuse Act

The Computer Fraud and Abuse Act is another topic that often comes up in discussions about web scraping. This is a federal law that makes it unlawful for a person to access a protected computer without authorization, or in excess of a specific authorization. So the question becomes whether that access by the automated web scraper violates the Computer Fraud and Abuse Act. There are some important things that have to be proven for a plaintiff to succeed under the Computer Fraud and Abuse Act, and one of those is loss or damage that results from the unauthorized access. It is a very fact intensive inquiry that has to be made, but the Computer Fraud and Abuse Act is one thing that parties should think about in the context of web scraping.

Trade secrets

The question of trade secrets is another good one to raise in the context of web scraping. A trade secret is any information that a company has that gives that company a commercial advantage in the marketplace because it is secret. The information also has to be the subject of protective efforts — the company has to try to keep the information secret. For example, if information on a website is put there in a way that is behind certain protective barrier,s and the party doing the scraping circumvents those barriers, it could be that there is a misappropriation of trade secrets, particularly if that information is used for some competitive purpose.

Let’s talk

Web scraping legal issues can be complex. Scraping presents certain legal risks to the ones doing it, and the law provides certain powerful remedies when web scraping runs afoul of the rules. If you have questions about web scraping, give me a call at (630) 362-7237, or send me an email at ebrown@internetcases.com.

About the author

Evan Brown is a technology and intellectual property attorney in Chicago. This content originally appeared on evan.law.

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Is the future a trade between convenience and privacy?

This TechCrunch piece talks about how (predictably) Google wants to build the “ultimate personal assistant.” With Google’s collecting user preferences cross-platform and applying algorithms to ascertain intentions, getting around in the world, purchasing things, and interacting with others could get a lot easier.

But at what cost? The success of any platform that becomes a personal assistant in the cloud would depend entirely on the collection of vast amounts of information about the individual. And since Google makes its fortunes on advertising, there is no reason to be confident that the information gathered will not be put to uses other than adding conveniences to the user’s life. Simply stated, the platform is privacy-destroying.

What if one wants to opt-out of this utopically convenient future? Might such a person be unfairly disadvantaged by, for example, choosing to undertake tasks the “old fashioned” way, unassisted by the privacy eviscerating tools? This points to larger questions about augmented reality. As a society, will we implement regulations to level the playing field among those who are not augmented versus those who are? Questions of social justice in the future may take a different tone.

Negligence claim allowed in laptop theft case

Ruiz v. Gap, Inc., 540 F.Supp.2d 1121 (N.D. Cal. March 24, 2008)

In 2006, Ruiz applied for a job at the Gap and was required to provide his Social Security number. A vendor hired by the Gap for recruiting stored Ruiz’s information on a laptop which, as luck would have it, was stolen.

Though he was not (at least yet) the victim of identity theft, Ruiz sued the Gap for negligence. The Gap moved for judgment on the pleadings which the court also treated as a motion to dismiss for failure to state a claim. The court denied the motion to dismiss as to negligence (and granted the motion as to claims for bailment, unfair competition and violation of the California constitutional right to privacy). But Ruiz’s standing to bring the claim was tenuous.

The Gap had argued that Ruiz lacked standing. His only alleged harm was that he was at an increased risk for identity theft. The court’s analysis of the Gap’s objection to standing focused on the first element of the Lujan test (Lujan v. Defenders of Wildlife, 504 U.S. 555 (1992)), namely, whether Ruiz’s alleged injury was “concrete and particularized.”

The Ninth Circuit has held for allegations of future harm to confer standing, the threat must be credible, and the plaintiff must show that there is a “significant possibility” that future harm will ensue. The Lujan case (which is the leading Supreme Court authority on standing) essentially creates a “benefit of the doubt” for plaintiffs at the pleading stage — a court is to presume that general allegations embrace those specific allegations that are necessary to show a particularized injury. Ruiz’s general allegations of the threat of future harm were thus sufficient to confer standing.

But the court gave a warning to Ruiz that the threshold of standing does not apply only to pleadings, but is an indispensable part of a plaintiff’s case throughout. In other words, he’ll have to come up with more later to keep the case in court.

So in denying the motion to dismiss the negligence claim, the court incorporated its standing analysis. The only issue on the point of negligence was whether Ruiz had suffered an injury. Ruiz’s general allegations were sufficient.

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