Opinion ID: 784889
Heading Depth: 3
Heading Rank: 5

Heading: Computer Fraud and Abuse Act Claims

Text: 206 Register.com also brought claims under the Computer Fraud and Abuse Act, 18 U.S.C. § 1030 et seq. (CFAA), arguing that both Verio's use of software robots to access Register.com's WHOIS database and its use of the information obtained with those robots for marketing purposes violated 18 U.S.C. §§ 1030(a)(2)(C) and (a)(5)(C). 61 As the district court properly stated: 207 Both §§ 1030(a)(2)(C) and (a)(5)(C) require that the plaintiff prove that the defendant's access to its computer system was unauthorized, or in the case of § 1030(a)(2)(C) that it was unauthorized or exceeded authorized access. However, although each section requires proof of some degree of unauthorized access, each addresses a different type of harm. Section 1030(a)(2)(C) requires Register.com to prove that Verio intentionally accessed its computers without authorization and thereby obtained information. Section 1030(a)(5)(C) requires Register.com to show that Verio intentionally accessed its computer without authorization and thereby caused damage. 208 126 F.Supp.2d at 251 (emphases removed). The district court concluded that Register.com was likely to succeed on the merits of both claims. We disagree. 209 Register.com has not shown that it is likely to satisfy the $5,000 injury threshold for maintaining a civil action under the CFAA. Specifically, to succeed on the merits of a CFAA claim, Register.com must prove damage or loss of at least $ 5,000 attributable to an alleged violation of the CFAA. See 18 U.S.C. § 1030(g)([A]ny person who suffers damage or loss ... may maintain a civil action ... for compensatory damages and injunctive relief or other equitable relief.); id. § 1030(e)(8) (defining damage as any impairment to the integrity or availability of data, a program, a system, or information that ... causes loss aggregating at least $5,000 in value during any 1-year period to one or more individuals....). We agree with the (near) unanimous view that any civil action under the CFAA involving damage or loss, id. § 1030(g), must satisfy the $ 5,000 threshold, id. § 1030(e)(8)(A). See In re DoubleClick Inc. Privacy Litig., 154 F.Supp.2d 497, 520-23 (S.D.N.Y.2001) (excellent statutory construction analysis and thorough exploration of legislative history) [notice of appeal filed 6/28/2002]; accord EF Cultural Travel BV v. Explorica, Inc., 274 F.3d 577, 585 (1st Cir.2001); Chance v. Ave. A, Inc., 165 F.Supp.2d 1153, 1159-60 (W.D.Wash.2001); see also United States v. Middleton, 231 F.3d 1207, 1211 (9th Cir.2000) (applying threshold); Christian v. Sony Corp. Of America, 152 F.Supp.2d 1184, 1187 (D.Minn.2001) (same); In re America Online, Inc., 168 F.Supp.2d 1359, 1374-75 (S.D.Fla.2001)) (same); Shurgard Storage Ctrs., Inc. v. Safeguard Self Storage, Inc., 119 F.Supp.2d 1121, 1126-27 (W.D.Wash.2000) (same); AOL v. LCGM, 46 F.Supp.2d 444, 450 (E.D.Va.1998) (same). But cf. In re Intuit Privacy Litigation, 138 F.Supp.2d 1272, 1280-81 (C.D.Cal.2001) (acknowledging that claims for economic damages must satisfy the $ 5,000 threshold but concluding that loss means irreparable injury and that non-economic damages may be recovered under 18 U.S.C. §§ 1030(c)(8)(B) and (C)). 210 The district court only addressed this threshold with respect to Register.com's 1030(a)(5)(C) claim. 62 The court noted that on the record before it, Register.com had demonstrated a slight diminishment in capacity, the possibility of a diminishment in response time to customers' queries, and the high probability that other entities not party to the suit would engage in similar conduct as Verio if such conduct were permitted. See 126 F.Supp.2d at 251-52. 63 The court then concluded: If the strain on Register.com's resources generated by robotic searches becomes large enough, it could cause Register.com's computer systems to malfunction or crash. Such a crash would satisfy § 1030(a)(5)(C)'s threshold requirement that a plaintiff demonstrate $5000 in economic damages. Id. at 252. 211 Taking the district court's assessment of the record as accurate, injunctive relief is nevertheless unavailable. To maintain a cause of action under the CFAA against Verio, Register.com must demonstrate the Verio violated the CFAA in a manner that has caused Register.com damages or losses of at least $5,000. There is nothing in the record to suggest that this has occurred. To obtain preliminary injunctive relief on the basis of a CFAA claim, Register.com must demonstrate that it will likely be able to make such a showing. Therefore, accepting the facts as found by the district court, we find it unlikely that Register.com will be successful in showing that it has suffered $ 5,000 in actual damages or losses as a result of an alleged CFAA violation by Verio.