Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-cand-4_06-cv-03117/USCOURTS-cand-4_06-cv-03117-0/pdf.json

Parties Involved:
Kodak Imaging Network, Inc.
Defendant
Ofoto
Defendant
United States of America
Plaintiff

Document Text:

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 1 of 14

PETER D. KEISLER

Assistant Attorney General

Civil Division

EUGENE M. THIROLF

Director, Office of Consumer Litigation

ELIZABETH STEIN (VA Bar No. 15288)

Attorney, Office of Consumer Litigation

950 Pennsylvania Avenue, N.W.

Washington, DC 20530

(202) 307-0066 (telephone)

(202) 514-8742 (facsimile)

Elizabeth.Stein2@usdoj.gov (email)

Attorneys for the United States

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF CALIFORNIA

San Francisco Division

UNITED STATES OF AMERICA

Plaintiff,

v.

KODAK IMAGING NETWORK, INC., 

Formerly Ofoto, Inc., a Delaware corporation,

Defendant.

No. C-06-3117 (SBA)

STIPULATED FINAL ORDER

FOR CIVIL PENALTIES,

PERMANENT INJUNCTION, AND

OTHER EQUITABLE RELIEF

Plaintiff, the United States of America, acting upon notification and authorization to the

Attorney General by the Federal Trade Commission (“FTC” or the “Commission”), pursuant to

Section 16(a)(1) of the Federal Trade Commission Act (“FTC Act”), 15 U.S.C. § 56(a)(1), has

filed a complaint pursuant to Sections 5(a)(1), 5(m)(1)(A), 13(b) and 16(a) of the FTC Act, 15

U.S.C. §§ 45(a)(1), 45(m)(1)(A), 53(b), and 56(a), and under Section 7(a) of the Controlling the
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 2 of 14

Assault of Non-Solicited Pornography and Marketing Act of 2003 (“CAN-SPAM” or the “CANSPAM Act”), 15 U.S.C. § 7706(a), to secure civil penalties, a permanent injunction, and other

equitable relief for Defendant’s violations of Section 5(a) of CAN-SPAM, 15 U.S.C. § 7704(a). 

Defendant has waived service of the Summons and Complaint; the parties have been represented

by the attorneys whose names appear hereafter; and the parties have agreed to settlement of this

action upon the following terms and conditions, without adjudication of any issue of fact or law

and without Defendant admitting liability for any of the matters alleged in the Complaint.

THEREFORE, on the joint motion of the parties, it is hereby ORDERED, ADJUDGED

AND DECREED as follows:

FINDINGS

1. This Court has jurisdiction over the subject matter pursuant to 15 U.S.C. §§

45(m)(1)(A), 53(b), 56(a), 57b, and 7706(a), and 28 U.S.C. §§ 1331, 1337(a), 1345, and 1355.

2. Plaintiff and Defendant consent to jurisdiction and venue in this District.

3. The activities of Defendant are in or affecting commerce, as defined in Section 4

of the FTC Act, 15 U.S.C. § 44.

4. The complaint states a claim upon which relief may be granted against Defendant

under Section 5(a) of the CAN-SPAM Act, 15 U.S.C. § 7704(a).

5. The parties hereto stipulate and agree to this Consent Decree, without trial or final

adjudication of any issue of fact or law, to settle and resolve all matters in dispute arising from

the allegations in the Complaint. Although Defendant has entered into the stipulated Judgment

and Order for Permanent Injunction (“Order”) freely and without coercion, the Order does not
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 3 of 14

constitute an admission by Defendant that the law has been violated as alleged in the Complaint,

or that the facts as alleged in the Complaint, other than the jurisdictional facts, are true. 

6. Defendant hereby waives all rights to appeal or otherwise challenge or contest the

validity of this Order.

7. Defendant agrees that this Order does not entitle Defendant to seek or to obtain

attorneys’ fees as a prevailing party under the Equal Access to Justice Act, 28 U.S.C. § 2412,

and Defendant further waives any rights to attorneys’ fees that may arise under said provision of

law.

8. Entry of this Order is in the public interest.

DEFINITIONS

For the purpose of this Order, the following definitions shall apply:

1. “Commercial electronic mail (‘email’) message” means any electronic mail

message the primary purpose of which is the commercial advertisement or

promotion of a commercial product or service (including content on an Internet

web site operated for a commercial purpose) and that further satisfies the

requirements of 16 C.F.R. 316.1 et seq.

2. Unless otherwise specified, “Defendant” means Kodak Imaging Network, Inc.

(“KIN”), formerly Ofoto, Inc., and its successors, assigns, officers, agents,

servants, employees, and those persons in active concert or participation with it,

to the extent they engage in any Internet-based, digital photo service that enables

consumers to upload, view, edit, arrange, display, store, or share digital photos, or

to order prints of and/or specialty products incorporating such photos and who
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 4 of 14

receive actual notice of this Order by personal service, facsimile, or otherwise,

whether acting directly or through any corporation, subsidiary, division or other

entity.

3. “Document” is synonymous in meaning and equal in scope to the usage of the

term in Federal Rule of Civil Procedure 34(a), and includes writings, drawings,

graphs, charts, photographs, audio and video recordings, computer records, and

other data compilations from which information can be obtained and translated, if

necessary, into reasonably usable form through detection devices. A draft or nonidentical copy is a separate document within the meaning of the term.

4. “Electronic mail (‘email’) address” means a destination, commonly expressed as

a string of characters, consisting of a unique user name or mailbox (commonly

referred to as the “local part”) and a reference to an Internet domain (commonly

referred to as the “domain part”), whether or not displayed, to which an electronic

mail message can be sent or delivered.

5. “Electronic mail (‘email’) message” means a message sent to a unique electronic

mail address.

6. “Initiate,” when used with respect to a commercial electronic mail message,

means to originate or transmit such message or to procure the origination or

transmission of such message, but shall not include actions that constitute routine

conveyance of such message. For purposes of this Order, more than one person

may be considered to have initiated a message.

7. “Person” means a natural person or a corporation, partnership, proprietorship,

limited liability company, or other organization or legal entity, including an
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 5 of 14

association, cooperative, or agency, or other group or combination acting as an

entity.

8. “Procure,” when used with respect to the initiation of a commercial electronic

mail message, means intentionally to pay or provide other consideration to, or

induce, another person to initiate such a message on one’s behalf. 

9. “Recipient,” when used with respect to a commercial electronic mail message,

means an authorized user of the electronic mail address to which the message was

sent or delivered. If a recipient of a commercial electronic mail message has one

or more electronic mail addresses in addition to the address to which the message

was sent or delivered, the recipient shall be treated as a separate recipient with

respect to each such address. If an electronic mail address is reassigned to a new

user, the new user shall not be treated as a recipient of any commercial electronic

mail message sent or delivered to that address before it was reassigned.

10. “Sender” when used with respect to a commercial electronic mail message, means

a person who initiates such a message and whose product, service, or Internet web

site is advertised or promoted by the message.

11. “Valid physical postal address” means a sender’s current street address, a Post

Office box a sender has registered with the United States Postal Service, or a

private mailbox a sender has registered with a commercial mail receiving agency

that is established pursuant to United States Postal Service regulations.
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 6 of 14

ORDER

I. PROHIBITION AGAINST VIOLATING THE CAN-SPAM ACT

IT IS THEREFORE ORDERED that Defendant is hereby permanently restrained and

enjoined from violating the CAN-SPAM Act, 15 U.S.C. §§ 7701 et seq., including, but not

limited to, initiating the transmission of a commercial email message:

A. that does not contain a functioning return email address or other Internet-based

mechanism, clearly and conspicuously displayed, that (i) a recipient may use to

submit, in a manner specified in the message, a reply email message or other form

of Internet-based communication requesting not to receive future commercial

email messages from that sender at the email address where the message was

received; and (ii) remains capable of receiving such messages or communications

for no less than 30 days after the transmission of the original message; 

B. that does not include clear and conspicuous notice of the opportunity to decline to

receive further commercial email from the sender;

C. that does not contain a clear and conspicuous display of an accurate, valid,

physical postal address of Defendant; and

D. that is sent to a recipient’s email address more than 10 business days after the

sender receives a request from that email recipient, or such time frame as is

subsequently prescribed by the CAN-SPAM Act, sent in the manner specified in

accordance with the above Paragraph I.A., not to receive future commercial

electronic mail messages from the sender at the recipient’s electronic mail

address.
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 7 of 14

II. CIVIL PENALTIES

IT IS FURTHER ORDERED that Defendant, and its successors and assigns, shall pay to

Plaintiff a civil penalty, pursuant to section 5(m)(1)(A) of the Federal Trade Commission Act, 15

U.S.C. § 45(m)(1)(A), in the amount of $26,331 as follows: 

A. Defendant shall make the payment required by this Part within ten (10)

business days of the date of entry of this Order by electronic fund transfer

in accordance with the instructions provided by the Office of Consumer

Litigation, Civil Division, U.S. Department of Justice, Washington, D.C.

20530, for appropriate disposition;

B. In the event of any default in payment, which default continues for ten

(10) business days beyond the due date of payment, the entire unpaid

penalty, together with interest, as computed pursuant to 28 U.S.C. § 1961,

from the date of default to the date of payment, shall immediately become

due and payable.

C. Defendant agrees that the facts as alleged in the Complaint filed in this

 action shall be taken as true for the purpose of a nondischargeability

complaint in any bankruptcy proceeding.

 III. COMPLIANCE REPORTING BY DEFENDANT

IT IS FURTHER ORDERED that, in order that compliance with the provisions of this

Order may be monitored:

A. For a period of five (5) years from the date of entry of this Order, Defendant shall

notify the Commission of any changes in corporate structure that may affect

compliance obligations arising under this Order, including but not limited to a
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 8 of 14

dissolution, assignment, sale, merger, or other action that would result in the

emergence of a successor entity; the creation or dissolution of a subsidiary,

parent, or affiliate that engages in any acts or practices subject to this Order; the

filing of a bankruptcy petition; or a change in the corporate name or address, at

least seven (7) days prior to such change, provided that, with respect to any

proposed change in the corporation about which Defendant learns less than seven

(7) days prior to the date such action is to take place, Defendant shall notify the

Commission as soon as is practicable after obtaining such knowledge.

B. One hundred eighty (180) days after the date of entry of this Order, Defendant

shall provide a written report to the FTC, sworn to under penalty of perjury,

setting forth in detail the manner and form in which it has complied and is

complying with this Order. This report shall include, but not be limited to:

1. A copy of each acknowledgment of receipt of this Order, obtained

pursuant to Section V of this Order; 

2. Any changes required to be reported pursuant to subsection A of this

Section;

3. A list that identifies every person engaged by Defendant to market or

promote, through commercial email messages, any goods or services of

Defendant since entry of this Order or to manage the marketing and

promotion of Defendant’s products or services through commercial email

messages;

4. A list of all names under which Defendant did or currently does business

since entry of this Order; and
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 9 of 14

5. A list of all domain names and web page addresses Defendant has

registered or used since entry of the Order.

C. For the purposes of this Order, Defendant shall, unless otherwise directed in

writing by the Commission’s authorized representatives, mail all written

notifications to the Commission to:

Associate Director for Marketing Practices

Federal Trade Commission

600 Pennsylvania Ave., N.W., Room 288

Washington, DC 20580

Re: United States v. Kodak Imaging Network, Inc.

Civ. No. ______.

D. For the purposes of this Order, Defendant shall, unless otherwise directed in

writing by a representative of Plaintiff, identify all written notifications required

to be sent to Plaintiff as in reference to DJ# 102-3342, and mail them to:

Director, Office of Consumer Litigation

U.S. Department of Justice - Civil Division

P.O. Box 386

Washington, DC 20044.

E. For purposes of the compliance reporting and monitoring required by this Order,

representatives of Plaintiff and the Commission are authorized to communicate

directly with Defendant’s officers.

IV. RECORD KEEPING PROVISIONS 

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry of

this Order, Defendant is hereby restrained and enjoined from failing to create and retain the

following records in connection with the marketing, advertising, promotion, offering for sale, or

sale of Defendant’s goods or services, and from failing to make such records (or reports
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 10 of 14

concerning such records) available for inspection and copying within ten (10) days of receipt of

a written request from a representative of Plaintiff or Commission: 

A. Standard accounting records generated in the ordinary course of business

including, but not limited to, balance sheets, income statements, and annual

reports;

B. Records accurately reflecting during their employment: the name, physical

address, and telephone number of each person employed by Defendant, including

as an independent contractor with responsibilities relating to compliance with this

Order; that person’s job title or position; the date upon which the person

commenced work; and the date and reason for the person’s termination, if

applicable;

C. Records that reflect, for every written or oral consumer complaint or request

received by Defendant relating to the activities of promoting Defendant’s goods

and services via commercial email messages, whether directly or indirectly or

through any third party, (1) the name, address, and telephone number, if any,

provided by the relevant consumer; (2) the written complaint or request, if any;

(3) Defendant’s response to or resolution of the complaint or request, if any, and

the date of such response or resolution;

D. All other records and documents reasonably necessary to demonstrate full

compliance with each provision of this Order, including but not limited to, all

documents obtained, created, generated or which in any way relate to the

requirements, provisions or terms of this Order, copies of signed and dated
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 11 of 14

acknowledgments of receipt of this Order, and all reports submitted to the FTC

pursuant to this Order.

V. DISTRIBUTION OF ORDER BY DEFENDANT

IT IS FURTHER ORDERED that, for a period of five (5) years from the date of entry of

this Order, Defendant shall deliver copies of this Order as directed below.

A. Defendant must deliver a copy of this Order to all its officers, directors, and

managers. Defendant must also deliver a copy or summary (to be agreed upon by

counsel for Defendant and Commission) of this Order to all its employees, agents,

independent contractors, and persons who engage in conduct related to the subject

matter of this Order. For current personnel, delivery shall be within five (5) days

of service of this Order. For new personnel, delivery shall occur prior to them

assuming their responsibilities. 

B. Defendant must secure a signed and dated written or electronic statement (which

signature may be obtained electronically provided that the signature would

comply with the signature requirements of the Electronic Signatures in Global

and National Commerce Act, (“E-Sign Act”), 15 U.S.C. § 7001 et seq.),

acknowledging receipt of this Order, within thirty (30) days of delivery, from all

persons receiving a copy or summary of this Order pursuant to this Section.

VI. ACKNOWLEDGMENT OF RECEIPT OF ORDER BY DEFENDANT

IT IS FURTHER ORDERED that Defendant, within five (5) business days of receipt of

this Order as entered by the Court, must submit to the Commission a truthful sworn statement

acknowledging receipt of this Order. 
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 12 of 14

VII. FEES AND COSTS

IT IS FURTHER ORDERED that each party to this Order hereby agrees to bear

its own costs and attorneys’ fees incurred in connection with this action.

VIII. SEVERABILITY

IT IS FURTHER ORDERED that the provisions of this Order are separate and severable

from one another. If any provision is stayed or determined to be invalid, the remaining

provisions shall remain in full force and effect.

IX. RETENTION OF JURISDICTION

IT IS FURTHER ORDERED that a Magistrate Judge of this Court shall retain

jurisdiction for all purposes authorized by law, including construction, modification, and

enforcement of this Order, and contempt proceedings to the extent authorized by 28 U.S.C. §

636.

JUDGMENT IS THEREFORE ENTERED in favor of Plaintiff and against Defendant,

pursuant to all the terms and conditions recited above.

Dated this 19th day of July, 2006.

 

_________________________

United States District Judge
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 13 of 14

The parties, by their respective counsel, hereby consent to the terms and conditions of

this Stipulated Order as set forth above and consent to the entry thereof.

FOR THE PLAINTIFF

FOR THE UNITED STATES OF AMERICA

PETER D. KEISLER

Assistant Attorney General

Civil Division

U.S. DEPARTMENT OF JUSTICE

EUGENE THIROLF

Director

Office of Consumer Litigation

 /S/ 

ELIZABETH STEIN, Trial Attorney

Office of Consumer Litigation

Civil Division

U.S. Department of Justice

950 Pennsylvania Ave., NW

Washington, DC 20530

PHONE: 202-307-0066

FAX: 202-514-8742
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

Page 14 of 14

For the Federal Trade Commission

OF COUNSEL:

 /S/ 

LOIS C. GREISMAN 

Associate Director for

Marketing Practices

 /S/ 

PETER LAMBERTON

Staff Attorney

Federal Trade Commission

Washington, D.C. 20580

PHONE: (202) 326-3274

FAX: (202) 326-3395

For the Defendant

Kodak Imaging Network, Inc.

 /S/ 

LEE KIRKPATRICK

Kodak Imaging Network

1480 64th St., Suite 300

Emeryville, CA 94608

 /S/ 

J. BECKWITH BURR

Wilmer Cutler Pickering Hale and Dorr LLP

2445 M Street, N.W.

Washington, DC 20037

PHONE: (202) 663-6695

FAX: (202) 663-6363