Ownership of domain names and social media accounts a key issue in case

Plaintiff sued defendant for unauthorized use of domain names and social media accounts. Plaintiff asked the court to declare its rights to these digital assets and to hold defendant accountable for trademark infringement and other claims. The court decided to allow some claims to proceed while dismissing others based on New York law’s treatment of intangible property.

Plaintiff, a luxury grooming and fragrance company operating under the name MiN New York, hired defendant, Mindy Yang, through her company Superego Management LLC, to manage marketing and social media efforts. After the business relationship ended, plaintiff alleged that defendant retained control of website domains and social media accounts. Defendant allegedly redirected these assets to promote its new business, even using plaintiff’s accounts to advertise its own events.

Defendant argued that the claims for replevin, conversion, and trespass should be dismissed because domain names and social media accounts are intangible and not considered property under New York law. Defendant also sought dismissal of the breach of fiduciary duty claim, asserting that as an independent contractor, it did not owe fiduciary obligations to plaintiff.

The court partially agreed with defendant. It dismissed the trespass claim, finding that plaintiff failed to show harm to the online assets themselves. However, the court allowed plaintiff’s claims for replevin and conversion to proceed, ruling that domain names and social media accounts can qualify as property under New York law. The court recognized that these assets were crucial to plaintiff’s business and plausibly alleged to have been wrongfully controlled by defendant.

On the claim for breach of fiduciary duty, the court ruled in plaintiff’s favor. The court held that plaintiff sufficiently alleged that defendant, by accessing sensitive accounts, using a corporate credit card, and managing key aspects of plaintiff’s marketing, owed fiduciary duties despite being an independent contractor. This established that defendant had a responsibility to act in plaintiff’s best interests.

Three reasons why this case matters:

  • Addresses rights to digital assets: The court’s decision tends to confirm that domain names and social media accounts can be considered property under New York law.
  • Defines fiduciary duties for contractors: The ruling clarifies that independent contractors can owe fiduciary obligations when entrusted with significant responsibilities.
  • Offers a blueprint for online disputes: This case sets important standards for businesses seeking to reclaim control over misappropriated digital assets.

Salonclick LLC v. Superego Management LLC, 2017 WL 239379 (S.D.N.Y. Jan. 18, 2017).

Twitter avoids liability in terrorism lawsuit

Update 1/31/2018: The Ninth Circuit upheld the court’s decision discussed below.

The families of two U.S. contractors killed in Jordan sued Twitter, accusing the platform of providing material support to the terrorist organization ISIS. Plaintiffs alleged that by allowing ISIS to create and maintain Twitter accounts, the company violated the Anti-Terrorism Act (ATA). Plaintiffs further claimed this support enabled ISIS to recruit, fundraise, and promote extremist propaganda, ultimately leading to the deaths of the contractors. The lawsuit aimed to hold Twitter responsible for the actions of ISIS and to penalize it for facilitating the organization’s digital presence.

Twitter moved to dismiss, arguing that the claims were barred under the Communications Decency Act (CDA) at 47 U.S.C. §230. Section 230 provides immunity to internet platforms from being treated as the publisher or speaker of content posted by third parties. The court had to decide whether Twitter’s role in allowing ISIS to use its platform made it liable for the consequences of ISIS’s acts.

The court dismissed the case, finding that Section 230 shielded Twitter from liability. The court ruled that plaintiffs’ claims attempted to treat Twitter as the publisher of content created by ISIS, which is precisely the type of liability Section 230 was designed to prevent. The court also concluded that plaintiffs failed to establish a plausible connection, or proximate causation, between Twitter’s actions and the deaths. Importantly, in the court’s view, plaintiffs could not demonstrate that ISIS’s use of Twitter directly caused the attack in Jordan or that the shooter had interacted with ISIS content on the platform.

The court further addressed plaintiffs’ argument regarding private messages sent through Twitter’s direct messaging feature. It ruled that these private communications were also protected under Section 230, as the law applies to all publishing activities, whether public or private.

Three reasons why this case matters:

  • Expanding the scope of Section 230: The case reinforced the broad immunity provided to tech companies under Section 230, including their handling of controversial or harmful content.
  • Clarifying proximate causation in ATA claims: The ruling highlighted the challenges of proving a direct causal link between a platform’s operations and acts of terrorism.
  • Balancing tech innovation and accountability: The decision underscored the ongoing debate about how to balance the benefits of open platforms with the need for accountability in preventing misuse.

Fields v. Twitter, Inc., 200 F. Supp. 3d 964 (N.D. Cal., August 10, 2016).

Immunity denied for website that failed to warn of dangerous activity

Jane Doe sued Internet Brands, the owner of the website Model Mayhem, for negligence after she was lured into a trap by two criminals who used the site to target victims. Plaintiff asked the court to hold Internet Brands liable for failing to warn users about the known threat posed by the criminals. The district court dismissed the case, finding the claim barred by the provision of the Communications Decency Act (CDA) found at 47 U.S.C. 230. However, the Ninth Circuit reversed that decision, holding that the CDA did not shield Internet Brands from liability for failing to warn.

Plaintiff, an aspiring model, joined Model Mayhem, a networking site for modeling professionals. In 2011, Plaintiff was contacted by individuals associated with the defendant, who posed as talent scouts and convinced her to travel to Florida for an audition. Once there, Plaintiff was drugged, raped, and recorded for pornography. The lawsuit revealed that Internet Brands had known since 2010 about these criminals and their use of the site to target victims but did not warn users.

Plaintiff argued that Internet Brands had a duty to warn users like her about the danger. Defendant argued that the CDA, which protects websites from liability as “publishers” of third-party content, barred the claim. Defendant claimed that issuing a warning would have effectively treated it as a publisher of user-generated content, a role protected under the CDA.

The court disagreed. It found that plaintiff’s claim did not depend on treating defendant as a publisher or speaker of third-party content. Instead, the claim arose from defendant’s alleged failure to act on its knowledge of the rapists’ activities. The court explained that the CDA does not provide blanket immunity for websites, especially when the obligation to warn does not require altering or removing user-generated content.

The Ninth Circuit reversed the district court’s dismissal and sent the case back for further proceedings, stating that the CDA did not block Plaintiff’s negligence claim.

Three reasons why this case matters:

  • Defining CDA Immunity: This decision clarified that the CDA does not protect websites from all legal claims, especially those unrelated to user-generated content.
  • Website Accountability: The case demonstrates that platforms can be held liable for failing to protect users from known risks.
  • Victim Protection: It shows that courts may balance user safety with the legal protections for online platforms.

Doe v. Internet Brands, Inc., 824 F.3d 846 (9th Cir., May 31, 2016)

Scroll to top