WEIL, GOTSHAL & MANGES LLP JARED B. BOBROW (State Bar. No. 133712) 2882 Sand Hill Road, Suite 280 Menlo Park, California 94025 Telephone: (650) 926-6200 Facsimile: (650) 854-3713 OF COUNSEL: WEIL, GOTSHAL & MANGES LLP ROBERT G. SUGARMAN** Pro hac vice applications being submitt= ed to the Court. JEFFREY L. KESSLER* 767 Fifth Avenue New York, New York 10153 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 Attorneys for Plaintiff DVD Copy Control Association, Inc. Additional Counsel Listed On The Signature Page SUPERIOR COURT OF THE STATE OF CALIFORNIA COUNTY OF SANTA CLARA |------------------------------------------> | | | DVD COPY CONTROL ASSOCIATION, INC., a | | not-for-profit trade association, | | | | | | Plaintiff, | | | | | | v. | | | | | | ANDREW THOMAS MCLAUGHLIN, an individual; | | ANDREW BUNNER, an individual; JOHN V. | | KEW, an individual; SCOTT KARLINS, an | | individual; GLENN ROSENBLATT, an | | individual; DALE EMMONS, an individual, | | EMMANUEL GOLDSTEIN, an individual; | | DOUGLAS R. WINSLOW, an individual; | | JONATHAN BLANK, an individual; ROGER | | KUMAR, an individual; ROBERT JONES, an | | individual; EN HONG, an individual; | | MATTHEW ROBERT PAVOLICH, an individual; | | IAN A. GULLIVER, an individual; JON | | HANSON, an individual; DAVID M. CHAN, an | | individual; CAMERON SIMPSON, an | | individual; TOM VOGT, an individual; | | CYRIL AMSELLEM, an individual; THORSTEN | | FENK, an individual; ADRIAN BAUGH, an | | individual and DOES 1-500, inclusive. | | | | | | Defendants. | | | |------------------------------------------> >---------------------------------------| | | | Case No. | | | | | | | | COMPLAINT FOR | | INJUNCTIVE RELIEF FOR | | MISAPPROPRIATION OF | | TRADE SECRETS | | | | | | | | | | | | | | | | | | | >---------------------------------------| Plaintiff, the DVD Copy Control Association, Inc. = (?DVD CCA?), by its attorneys, Weil, Gotshal & Manges LLP, for its Compl= aint, alleges as follows: INTRODUCTION 1. Plaintiff, DVD CCA, a trade association and the sole licensi= ng entity for Digital Video Disc (?DVD?) technology, brings this action to e= njoin defendant web site owners (?Defendants?) from their continued misappropriation of trade secrets licensed by DVD CCA. DVD CCA is= informed and believes, and based thereon alleges that Defendants have discl= osed, and continue knowingly and willfully to disclose, proprietary informat= ion on their Internet web sites as part of a scheme to defeat DVD encrypt= ion software which thus enables users to illegally pirate copies of DV= D videos. 2. The named defendants, and certain Doe defendants, continue t= heir unauthorized posting of proprietary information -- which they eith= er obtained by improper means or knew or should have known was obtain= ed by others by improper means -- despite the fact that cease and desist= letters were sent to their web sites demanding that such proprietary infor= mation be taken down from their sites. After receiving such notice, many su= ch web sites voluntarily removed the proprietary information at issue fro= m their sites. Certain defendants have not received any notice to date be= cause their existence has only recently come to the attention of DVD CCA= . 3. Defendants? posting of the proprietary information licensed = by DVD CCA on their web sites has caused the illegal pirating of the moti= on picture industry?s copyrighted content contained on DVDs. Defenda= nts? actions threaten the financial stability of this new digital video= format for viewing movies and other images -- which has thus far been wel= l received by the consuming public. Additionally, Defendants? actio= ns threaten the very existence of DVD CCA and the hundreds of compani= es involved in the DVD industry, including 73 companies in California= of which there are 42 in this county and an additional 17 in other Bay area= locations. Moreover, if Defendants are not restrained and enjoine= d, their unchecked illegal activities will chill future technological innov= ation in the motion picture, consumer electronics and computer industries a= nd discourage other industries from making their content available to= the public (as the motion picture industry has done here) in new forma= ts. PARTIES The Plaintiff 4. Plaintiff, DVD CCA, is a not-for-profit trade association or= ganized under the laws of the State of Delaware and has its principal plac= e of business at 225 B Cochrane Circle, Morgan Hill, California. DVD C= CA is the sole licensor of a proprietary system for the encryption and decry= ption of data contained on DVDs known as the Content Scramble System (or ?C= SS?). The Defendants 5. DVD CCA is informed and believes, and based thereon alleges,= that defendant Andrew Thomas McLaughlin (?McLaughlin?) is a citizen of = the State of California, and operates an Internet web= site addressed as mclaughlin.orange.ca.us/~andrew. 6. DVD CCA is informed and believes, and based thereon alleges,= that defendant Andrew Bunner (?Bunner?) is a citizen of the State of Ca= lifornia, and operates an Internet web site addressed as www.sharedlib.org/d= ecss.zip. 7. DVD CCA is informed and believes, and based thereon alleges,= that defendant John V. Kew (?Kew?) is a citizen of the State of Califor= nia, and operates an Internet web site addressed as www.logorrhea.com/deCSS= .html. 8. DVD CCA is informed and believes, and based thereon alleges,= that defendant Scott Karlins (?Karlins?) is a citizen of the State of G= eorgia, and operates an Internet web site addressed as www.theresistance.net/files.html. 9. DVD CCA is informed and believes, and based thereon alleges,= that defendant Glenn Rosenblatt (?Rosenblatt?) is a citizen of the Stat= e of New York, and operates an Internet web site addressed as www.pzcommunications.com/decss/main.html. 10. DVD CCA is informed and believes, and based thereon alleges,= that defendant Dale Emmons (?Emmons?) is a citizen of the State of Wisc= onsin, and operates an Internet web site addressed as www.frozenlinux.com/civ/decss. 11. DVD CCA is informed and believes, and based thereon alleges,= that defendant Emmanuel Goldstein (?Goldstein?) is a citizen of the Sta= te of New York, and operates an Internet web site addressed as www.2600.com/news/1999/1112.html. 12. DVD CCA is informed and believes, and based thereon alleges,= that defendant Douglas R. Winslow (?Winslow?) is a citizen of the State= of Maryland, and operates Internet web sites addressed as douglas.min.net/~drw/css-auth and Chatzone.org/~drw/css-auth. 13. DVD CCA is informed and believes, and based thereon alleges,= that defendant Jonathan Blank (?Blank?) is a citizen of the State of Ok= lahoma, and operates an Internet web site addressed as caspian.twu.net/dvd= . 14. DVD CCA is informed and believes, and based thereon alleges,= that defendant Roger Kumar (?Kumar?) is a citizen of the State of Penns= ylvania, and operates an Internet web site addressed as www.bigteam.org. 15. DVD CCA is informed and believes, and based thereon alleges,= that defendant Robert Jones (?Jones?) is a citizen of the State of Sout= h Carolina, and operates an Internet web site addressed as www.dev.zero.org/freecss.html. 16. DVD CCA is informed and believes, and based thereon alleges,= that defendant En Hong (?Hong?) is a citizen of the State of Georgia, a= nd operates an Internet web site addressed as www.dvd-digest.com. 17. DVD CCA is informed and believes, and based thereon alleges,= that defendant Matthew Robert Pavolich (?Pavolich?) is a citizen of the= State of Indiana, and operates an Internet web site addressed as www.livid.on.openprojects.net. 18. DVD CCA is informed and believes, and based thereon alleges,= that defendant Ian A. Gulliver (?Gulliver?) is a citizen of the State o= f New York, and operates an Internet web site addressed as www.gullii.stu.rpi.edu/dvd. 19. DVD CCA is informed and believes, and based thereon alleges,= that defendant Jon Hanson (?Hanson?) is a citizen of the State of Kansa= s, and operates an Internet web site addressed as www.jonhanson.com/dvd. 20. DVD CCA is informed and believes, and based thereon alleges,= that defendant David M. Chan (?Chan?) is a citizen of the State of Minn= esota, and operates an Internet web site addressed as www.dumn.edu/~dchan= /css. 21. DVD CCA is informed and believes, and based thereon alleges,= that defendant Cameron Simpson (?Simpson?) resides in Dundas Valley, Au= stralia, and operates an Internet web site addressed as www.zip.com.au/~cs.= 22. DVD CCA is informed and believes, and based thereon alleges,= that defendant Tom Vogt (?Vogt?) resides in Wedel, Denmark, and operate= s an Internet web site addressed as www.lemuria.org/DeCSS. 23. DVD CCA is informed and believes, and based thereon alleges,= that defendant Cyril Amsellem (?Amsellem?) resides in Val de Marne, Fra= nce, and operates an Internet web site addressed as www.dvd-area.com. 24. DVD CCA is informed and believes, and based thereon alleges,= that defendant Thorsten Fenk (?Fenk?) resides in the country of Germany= , and operates an Internet web site addressed as tasam.com/~fenkt/dvd. 25. DVD CCA is informed and believes, and based thereon alleges,= that defendant Adrian Baugh (?Baugh?) resides in Oxford, England, and o= perates an Internet web site addressed as merlin.kebble.ox.ac.uk/~adrian/css/mirrors.html. 26. DVD CCA is unaware of the true names and/or capacities of th= e defendants sued herein under the fictitious names Does 1-500, purs= uant to Code of Civil Procedure Section 474, who each were responsible in = some way for the acts and omissions complained of herein. DVD CCA will see= k leave of court to amend the complaint to allege such names and capacitie= s at such time as they are ascertained. 27. DVD CCA is informed and believes, and based thereon alleges,= that each of the Doe defendants 1 through 26 operate Internet web sites= , at the below addresses, which disseminate confidential proprietary CSS in= formation and also provide ?links? to other web sites which disseminate such= information: |-----------------+-------------------------------------------------= --------| | | = | | Doe | Web Site = | | Defendant | = | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 1. | www.free-dvd.org.lu = | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 2. | josefine.ben.tuwien.ac.at/~david/dvd = | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 3. | rockme.virtualave.net/ = | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 4. | amor.rz.hu-berlin.de/~h0444t2v = | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 5. | www.homestead.com/_ksi0701961562917005/avoid?/in= dex.htm | | | = | |-----------------+-------------------------------------------------= --------| | | = | | 6. | www.anglefire.com/jazz/avoiderman/ = | | | = | = --0__=5wtQQgNO1nGD1W1bKJTIvgv4RDT7A5q8KRprXqRgDeHXqMhMPqqD0L2W Content-type: text/plain; charset=us-ascii Content-Disposition: inline |-----------------+---------------------------------------------------------| | | | | 7. | www.intelcities.com/Main_Street/Avoiderman/ | | | | |-----------------+---------------------------------------------------------| | | | | 8. | www.members.theglobe.com/avoiderman/dvd.htm | | | | |-----------------+---------------------------------------------------------| | | | | 9. | members.zoom.com/_XMCM/lkjhgfdsa2/index.html | | | | |-----------------+---------------------------------------------------------| | | | | 10. | www.vexed.net/CSS/ | | | | |-----------------+---------------------------------------------------------| | | | | 11. | www.unitycode.org/ | | | | |-----------------+---------------------------------------------------------| | | | | 12. | batman.jytol.fi/~vuori/dvd/ | | | | |-----------------+---------------------------------------------------------| | | | | 13. | www.zpok.demon.co.uk/ | | | | |-----------------+---------------------------------------------------------| | | | | 14. | www.dvdlinks.co.uk/css/ | | | | |-----------------+---------------------------------------------------------| | | | | 15. | www.twistedlogic.com/archive/dvd | | | | |-----------------+---------------------------------------------------------| | | | | 16. | www.capital.net/~wooly/ | | | | |-----------------+---------------------------------------------------------| | | | | 17. | geocities.com/ResearchTriangle/Campus/8877/index.html | | | geocities.com/ResearchTriangle/Campus/8877/index.html | | | | |-----------------+---------------------------------------------------------| | | | | 18. | www.angelfire.com/mt/popefelix/ | | | | |-----------------+---------------------------------------------------------| | | | | 19. | members.tripod.lycos.nl/jvz/ | | | | |-----------------+---------------------------------------------------------| | | | | 20. | tv.acmecity.com/parody/356/index.html | | | | |-----------------+---------------------------------------------------------| | | | | 21. | cryptome.org/dvd-free.htm | | | | |-----------------+---------------------------------------------------------| | | | | 22. | altern.org/bettina/0a0a.html | | | | |-----------------+---------------------------------------------------------| | | | | 23. | www.crosswinds.net/~valo/DeCSS/ | | | | |-----------------+---------------------------------------------------------| | | | | 24. | info.astercity.net/~nicodem/ | | | | |-----------------+---------------------------------------------------------| | | | | 25. | 134.100.185.221/decss/ | | | | |-----------------+---------------------------------------------------------| | | | | 26. | www.dvdripper.videopage.de/ | | | | |-----------------+---------------------------------------------------------| 28. DVD CCA is informed and believes, and based thereon alleges, that each of the Doe defendants 27 through 54 operate Internet web sites, at the below addresses, which disseminate confidential proprietary CSS information: |-----------------> | | | Doe | | Defendant | | | |-----------------> >-----------------------------------------------------------------------| | | | Web Site | | | >-----------------------------------------------------------------------| |-----------------> | | | 27. | | | |-----------------> >-----------------------------------------------------------------------| | | | Crypto.gq.nu | | | >-----------------------------------------------------------------------| |-----------------> | | | 28. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.humpin.org/decss | | | >-----------------------------------------------------------------------| |-----------------> | | | 29. | | | |-----------------> >-----------------------------------------------------------------------| | | | 209.132.25.138/~inkk/DVD/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 30. | | | |-----------------> >-----------------------------------------------------------------------| | | | members.brabant.chello.nl/~j.vreeken/main.html | | | >-----------------------------------------------------------------------| |-----------------> | | | 31. | | | |-----------------> >-----------------------------------------------------------------------| | | | dirtass.beyatch.net/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 32. | | | |-----------------> >-----------------------------------------------------------------------| | | | therapy.endorphin.org/DVD/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 33. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.angelfire.com/in2/mirror/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 34. | | | |-----------------> >-----------------------------------------------------------------------| | | | sent.freeserve.co.uk/DeCSS | | | >-----------------------------------------------------------------------| |-----------------> | | | 35. | | | |-----------------> >-----------------------------------------------------------------------| | | | members.tripod.co.uk/bap/css/css.html | | | >-----------------------------------------------------------------------| |-----------------> | | | 36. | | | |-----------------> >-----------------------------------------------------------------------| | | | angelfire.com/myband/decss/top.html | | angelfire.com/myband/decss/top.html | | | >-----------------------------------------------------------------------| |-----------------> | | | 37. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.fortunecity.com/tinpan/tylerbridge/679/dvd.html | | fortunecity.com/tinpan/tylerbridge/679/dvdcss.html | | | >-----------------------------------------------------------------------| |-----------------> | | | 38. | | | |-----------------> >-----------------------------------------------------------------------| | | | munitions.vipul.net/software/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 39. | | | |-----------------> >-----------------------------------------------------------------------| | | | munitions.polkaroo.net/software/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 40. | | | |-----------------> >-----------------------------------------------------------------------| | | | munitions.dyn.org/software/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 41. | | | |-----------------> >-----------------------------------------------------------------------| | | | munitions.cifs.org/software/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 42. | | | |-----------------> >-----------------------------------------------------------------------| | | | uk1.munitions.net/software/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 43. | | | |-----------------> >-----------------------------------------------------------------------| | | | munitions.firenze.linux.it/algorithms/streamciphers/decss.tar.gz | | | >-----------------------------------------------------------------------| |-----------------> | | | 44. | | | |-----------------> >-----------------------------------------------------------------------| | | | perso.libertysurf.fr/ortal98/dvd_rip/decss_12b.zip | | | >-----------------------------------------------------------------------| |-----------------> | | | 45. | | | |-----------------> >-----------------------------------------------------------------------| | | | users.drak.net/bemann/software/css/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 46. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.geocities.com/SiliconValley/Port/3224/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 47. | | | |-----------------> >-----------------------------------------------------------------------| | | | ftp://alma.dhs.org/pub/DVD/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 48. | | | |-----------------> >-----------------------------------------------------------------------| | | | decss.tripod.com/index.html | | | >-----------------------------------------------------------------------| |-----------------> | | | 49. | | | |-----------------> >-----------------------------------------------------------------------| | | | discordia.de/decss/DeCss.zip | | | >-----------------------------------------------------------------------| |-----------------> | | | 50. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.dvd-copy.com/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 51. | | | |-----------------> >-----------------------------------------------------------------------| | | | dvdtidbits.com/dvd.shtml | | | >-----------------------------------------------------------------------| |-----------------> | | | 52. | | | |-----------------> >-----------------------------------------------------------------------| | | | www.neophile.net/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 53. | | | |-----------------> >-----------------------------------------------------------------------| | | | perso.club-internet.fr/ches/dl/rippers/ | | | >-----------------------------------------------------------------------| |-----------------> | | | 54. | | | |-----------------> >-----------------------------------------------------------------------| | | | plato.nebulanet.net:88/css/ | | | >-----------------------------------------------------------------------| 29. DVD CCA is informed and believes, and based thereon alleges, that each of the Doe defendants 55 through 72 operate Internet web sites, at the below addresses, which provide --0__=5wtQQgNO1nGD1W1bKJTIvgv4RDT7A5q8KRprXqRgDeHXqMhMPqqD0L2W Content-type: text/plain; charset=iso-8859-1 Content-Disposition: inline Content-transfer-encoding: quoted-printable ?links? to other web sites which disseminate confidential proprietary CSS information: |-----------------+------------------------------------------------= --------| | | = | | Doe | Web Site = | | Defendant | = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 55. | quintessenzs.at/q/mirrors.html = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 56. | www.ceraton.com/decss/ = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 57. | slashdot.org/articles/99/11/09/1342207.shtml = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 58. | cryptome.org/dvd-css.htm = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 59. | ftp://dvd:dvd@206.98.63.136/ = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 60. | www.deja.com/getdoc.xp?AN=3D547600297 = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 61. | www.brakton.freeservers.com/#downloads = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 62. | www.remco.xgov.net/dvd/ = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 63. | www.dvdcracked.tvheaven.com/index.html = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 64. | dvdsite.homepage.com/ = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 65. | www.geocities.com/Hollywood/Derby/2659 = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 66. | get.to/dvdsite = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 67. | home.worldonline.dk/~andersa/download/index.htm= | | | = | |-----------------+------------------------------------------------= --------| | | = | | 68. | www.ooze.org/dvd.html = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 69. | start.at/dvdsoft = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 70. | mmadb.no/hwplus/DeCSS/decss.html = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 71. | home.sol.no/~espen-b/dvd/css/decss.html = | | | = | |-----------------+------------------------------------------------= --------| | | = | | 72. | o2.uio.no/dvd = | | | = | |-----------------+------------------------------------------------= --------| ALLEGATIONS DVD Format and Need For Copy Protection 30. DVDs provide high quality images, such as motion pictures, d= igitally formatted on a convenient 5-inch disc that is resistant to wear an= d damage and allows for many attractive consumer features not presently ava= ilable in other video formats. DVD video discs containing data comprising m= otion pictures in encrypted form can be played either on special purpose= machines (?DVD Players?) or personal computers (?PCs?) equipped with DVD dr= ives. Encryption is necessary to prevent copying of the copyrighted mate= rial on the DVD. In order that the copyrighted motion picture can be play= ed, either form of player device requires implementation of the CSS al= gorithm and ?master keys? to carry out the decryption of the data stored o= n the disc. The implementation that provides this decryption function i= s developed by the licensees of DVD CCA using the detailed specifica= tions which is provided by DVD CCA to such licensees. 31. Before allowing their copyrighted motion pictures to be used= on the DVD format, the motion picture companies insisted on a viable copy= protection system to prevent users from making copies of the motio= n pictures. Such protection is necessary to prevent copying from di= scs that are rented or borrowed and, more importantly, to prevent broader s= cale piracy through widespread transmission of these motion pictures ov= er the Internet and widespread distribution of ?pirated? discs in competi= tion with the authorized prerecorded discs. 32. Without the motion picture companies? copyrighted content fo= r DVD video, there would be no viable market for computer DVD drives and= DVD players, as well as the related computer chips and software necess= ary to run these devices and, thus, there would be no DVD video industry.= 33. CSS is proprietary technology that was developed to provide = the protection demanded by the motion picture companies against unauth= orized copying of their copyrighted material. This proprietary technolog= y, including trade secrets, is currently being licensed by DVD CCA, a= s the sole duly authorized licensing entity for the CSS technology. Any= party desiring lawfully to use the CSS technology -- either to encrypt c= ontent or decrypt content -- must do so through a license from DVD CCA. The CSS Agreement as Mechanism to Protect DVD Encryption Soft= ware 34. Beginning on or about October 31, 1996, DVD CCA?s predecessor-in-interest began licensing CSS technology pursuant to= an agreement that later became the Amended and Restated CSS Interim L= icense Agreement, including the related CSS PROCEDURAL AND AMENDED AND RE= STATED TECHNICAL SPECIFICATIONS (collectively, the ?CSS Agreement?). Sin= ce that time hundreds of licensees have entered into the CSS Agreement. T= he CSS Agreement sets forth the terms and conditions under which the CSS = licensing entity (currently DVD CCA) would grant licenses to, among others, manufacturers of DVD players or DVD drives and related hardware an= d software. Licensees were granted the right to use the security sy= stem on DVD products and agreed to safeguard the CSS technology from publi= c disclosure. 35. The CSS Agreement gives the licensees the right to use the technology, and provides the necessary descrambling technology and= ?master keys? to do so. The proprietary technology is not accessible to u= nlicensed third parties because it is either incorporated in hardware device= s -- chips -- or made tamper resistant if distributed in the form of ac= tual software. Both forms of distribution are such that the proprietar= y technology cannot be viewed by non-licensees. Each licensee is as= signed a set of ?master keys? unique to each licensee. When the DVD system= was created, approximately 400 such ?master keys? were predesignated, = to be assigned to licensees over time, and each DVD disc contains, in a = part of the disc not normally read by the player device, a file containing= the 400 ?master keys.? The system will not operate unless the key contain= ed in the licensee?s decryption module (a chip or software program) matches = one of the ?master keys? stored on the DVD disc. 36. The CSS Agreement requires licensees to maintain the confide= ntiality = --0__=5wtQQgNO1nGD1W1bKJTIvgv4RDT7A5q8KRprXqRgDeHXqMhMPqqD0L2W Content-type: text/plain; charset=us-ascii Content-Disposition: inline of certain defined pieces of information, such as the algorithms and --0__=5wtQQgNO1nGD1W1bKJTIvgv4RDT7A5q8KRprXqRgDeHXqMhMPqqD0L2W Content-type: text/plain; charset=iso-8859-1 Content-Disposition: inline Content-transfer-encoding: quoted-printable ?master keys? and, as such, licensees are subject to a very stringent s= et of rules to ensure the maintenance of confidentiality within the g= roup of licensees. 37. Among the safeguards taken is the requirement that only thos= e licensees that absolutely need to know a particular algorithm and/= or key are provided with such information. For example, a manufacturer o= f semiconductor chips for descrambling CSS content in stand-alone DV= D players is provided with information necessary for manufacturing such chip= s but not with information concerning the scrambling process itself or the authentication between DVD drives and the descrambling module used= for computer-based implementations. Companies that merely assemble pa= rts and components produced by others may be required to be licensees in o= rder to purchase such parts and components, but these companies are not pr= ovided with the proprietary CSS information at issue. 38. The CSS Agreement mandates that licensees provide the propri= etary CSS technology at issue only to the strictest minimum number of licens= ee's employees who require access to the information, beginning with on= ly three employees and expanding beyond three only upon notification to the= licensor of the names of the additional employees. Licensees who violate t= hese requirements are subject to liquidated damages in the amount of $1= million per violation (with a cap based on profits made from the sale of l= icensed products). 39. Additionally, licensees implementing authentication and desc= rambling functions in the software are required to do so only in a manner t= hat obscures the proprietary CSS technology at issue, so as effectivel= y to frustrate anyone seeking to obtain such proprietary information. = Specific means of accomplishing this protection requirement are provided to= licensees to illustrate the types of measures to be taken and the = level of technical skill that must be employed to defeat any such measures.= Failure to abide by these operating restrictions can subject the licensee = to injunctions prohibiting the sale of the product in which the failu= re occurs, through actions brought either by the licensor or by third= party beneficiary content owners. Creation of DVD CCA 40. DVD CCA?s predecessor-in-interest began the process of licen= sing companies to use the technology pursuant to copy protection rules = contained in the ?procedural specifications? associated with the CSS Agreeme= nt. The companies in the DVD video business (motion picture, computer, and= consumer electronics companies) recognized that the licensing of CSS techno= logy, which is and was critical to the adoption of the DVD video format,= ought to be controlled and administered by the companies in the three indus= tries together and that the costs associated with such critical intellec= tual property protection should be borne by the hundreds of companies i= nvolved in the DVD video business. 41. The DVD industry agreed that the best solution would be the = creation of a licensing entity owned and controlled by the licensees of the= technology, pursuant to governance rules that balanced the interes= ts of the three industries involved. 42. The DVD Copy Control Association, Inc. was, therefore, forme= d in December 1998 as a Delaware not-for-profit trade association. 43. The transition to have DVD CCA become this tri-industry lice= nsing administrator began some time ago. In September 1999, DVD CCA hir= ed its first staff and occupied offices in Morgan Hill, California. Foll= owing staff training and working with personnel of DVD CCA?s predecessors-in-interest, who have administered the CSS Agreement,= in early December 1999, DVD CCA and its predecessor signed an agreement, wh= ereby DVD CCA began itself to handle the day-to-day licensing tasks pursuant= to the CSS Agreement. 44. In mid-December 1999, DVD CCA?s predecessor-in-interest assi= gned its licensing interests under the CSS Agreement making DVD CCA the sol= e licensing entity which grants licenses to the CSS technology in th= e DVD video format. Additionally, DVD CCA was given direct rights to en= force the CSS Agreement. The ?Hack? of the CSS Technology 45. As early as October 25, 1999, the source code of a program n= amed DeCSS was posted on the Internet by Jon Johansen, an individual re= siding in Norway, on the web site mmadb.no/hwplus/Software/DeCSS/decss.html.= The DeCSS program which appeared on this web site embodies, uses, and/= or is a substantial derivation of confidential proprietary information whi= ch DVD CCA licenses pursuant to the CSS Agreement. The DeCSS program and= links to other sites with the DeCSS program were removed from the web site = on or around November 8, 1999. The program was removed by Mr. Johansen = after a demand to remove the infringing information was sent to him by an = attorney from Simsonsen & Mus=E6us, a Norwegian law firm. A link to the De= CSS program reappeared on the site on December 11, 1999. It is not clear who = is responsible for posting the link. The web site operator is named = as Doe defendant 70 in this Complaint. 46. On information and belief, the DeCSS program first appeared = in the United States, as early as October 25, 1999, on a web site operate= d by defendant Pavolich addressed as www.livid.on.openprojects.net. 47. On information and belief, this proprietary information was = obtained by willfully ?hacking? and/or improperly reverse engineering softw= are created by CSS licensee Xing Technology Corporation (?Xing?). Xin= g?s software is and was licensed to users under a license agreement wh= ich specifically prohibits reverse engineering. 48. Since the October 25, 1999 appearance of DeCSS, proprietary = CSS information has been displayed on web sites (or by web sites ?link= ing? to other web sites which display the information) in at least 11 stat= es and 11 countries throughout the world. Extensive investigative efforts w= ere immediately undertaken by DVD CCA and the Motion Picture Associati= on?s (?MPA?) anti-piracy task force, to locate web sites which were pos= ting and/or ?linking? to other sites posting the proprietary informatio= n, and Internet service providers which were hosting such sites. The MPA= sent notices to 66 web sites and Internet service providers demanding t= hat this information be removed immediately. After receiving such notice, approximately 25 of these web sites and Internet service providers= voluntarily removed the proprietary information or ?links? to the information at issue. On information and belief, all named defend= ants (with the exception of defendant Hanson) and Does 1, 8, 10 through= 14, 16, 26, 28, 31, 32, 33, 35, 48 through 54, and 62 through 72 have rece= ived notice through the MPA and refused to remove the information at is= sue. Defendant Hanson and the other Doe defendants have not received an= y notice to date because their existence has only recently become known. 49. Defendants knew or should have known when they posted or pro= vided ?links? to the DeCSS program on their web sites that it was being = made available by virtue of the unauthorized use of proprietary informa= tion and that they were misusing proprietary confidential information gaine= d through improper means. This is because the DeCSS program has the capabil= ity to defeat DVD encryption software and, as a result, the DeCSS program= allows users to illegally pirate the copyrighted motion pictures containe= d on DVD videos - - activity which is fatal to the DVD video format and the= hundreds of computer and consumer electronics companies whose businesses re= ly on the viability of this digital format. Information posted on Defendants? web sites establishes = that they are fully aware that, in posting or ?linking? to the DeCSS program= , they are wrongfully appropriating proprietary trade secrets. For examp= le: (a) Defendant McLaughlin explains to visitors of his sit= e: "Mark of the scofflaw! Here's my local copy of the CSS decryp= tion software, enjoy[;]" (b) Defendant Baugh acknowledges that ?I may ver= y well be sued?.? (c) Doe defendant 14 challenges: ?I have the money= to go to court. Your call[;]? (d) in response to the MPA and DVD CCA?s anti-piracy= efforts, including cease and desist letters, defendants Vogt, B= lank, and Doe defendants 4, 9, 23 and 37 provide a ?Note to the la= wyers and other scum ? It was the DVD consortium that f***up, ?[;]= ? (e) similarly, defendant Jones explains ?Listen, law= yers, and those you represent: This is none of your concern. = The horse has been let out[;]? mocking the ?trained weasels= you call lawyers[;]? (f) Doe defendant 35 states: ?F[_ _ _] da feds! = ? ?[h]uh? Aren?t these files legal? Oh, well, I didn?t know that!= ? 50. DVD encryption technology was (and is) critical to the adopt= ion and utilization of the DVD format. Without such copy protection, the = motion = picture companies would not have allowed their copyrighted motion p= ictures to be available in this new digital video format. Without motion = picture content, there would be no viable market for computer DVD drives a= nd DVD players, as well as the related computer chips and software necess= ary to run these devices. Accordingly, the Defendants? continued misappr= opriation of proprietary CSS technology will have a devastating effect on DV= D CCA and many other California businesses in the motion picture, computer, = and consumer electronics industries, who have invested substantial amo= unts of money and resources in the development of the DVD video format. 51. The sole business purpose and reason for the existence of DV= D CCA, a trade association headquartered in Morgan Hill, California, is to = be the tri-industry licensing entity and administrator of the CSS technol= ogy. Defendants? continued misappropriation and dissemination of propri= etary CSS technology threatens the existence of the DVD format and, thus, th= e very existence of DVD CCA. If the proprietary nature of the CSS techno= logy is compromised, it will likely mean the end of this California busine= ss. 52. The effect of the unlawful activities of the Defendants on t= he motion picture industry, centered in California -- as well as on the nume= rous California computer and consumer electronics businesses, including= 73 companies in California of which there are 42 in Santa Clara Count= y and an additional 17 in other Bay area locations -- is immeasurable. Apa= rt from the substantial resources that these industries have invested in t= he adoption of the DVD format, the wholesale copying and distribution= of copyrighted motion pictures destroys the motion picture industry?s= ability to protect its intellectual property and destroys the market for t= he computer and consumer electronics industries? DVD-based products. 53. In addition to the immediate consequence that copyrighted mo= tion pictures have been pirated, the ?hack? and disclosure of the CSS proprietary information has already had a very serious adverse eff= ect on consumers, in California and elsewhere, in that the introduction o= f a related product -- DVD audio -- has been delayed. The major music= companies have indicated that they are not prepared to use a ?comp= romised? system to protect their content and have insisted on the creation = of a new technology and system. The launch of DVD audio products, planned = for December 1999, has, thus, been postponed for at least six months w= hile new copy protection technology is developed, agreed upon, and implemen= ted. FIRST CAUSE OF ACTION (Misappropriation of Trade Secrets) 54. DVD CCA repeats and realleges the allegations of paragraphs = 1 through 54 of this Complaint and incorporates them herein by reference. 55. DVD CCA and its predecessors-in-interest have adopted reason= able measures as described herein to maintain the secrecy of the CSS in= formation at issue. 56. DVD CCA and its predecessors-in-interest, as well as compani= es in the motion picture, computer, and consumer electronics industry have i= nvested substantial amounts of money and resources in the development of safeguards, such as the CSS licensing mechanism, to protect copyri= ghted material contained on DVD discs. The CSS license and, in particul= ar, how it protects the DVD technology, is of great commercial importance = to DVD CCA and the motion picture, computer, and consumer electronics ind= ustries. 57. The proprietary algorithms and/or ?master keys? of the CSS a= re valuable proprietary property and trade secrets currently licensed= by DVD CCA. 58. Defendants knew or should have known when they posted the De= CSS program on their web sites or provided ?links? to other sites post= ing this program, that such program was created through the unauthorized us= e of proprietary CSS information, which was illegally ?hacked.? 59. Defendants knew or should have known when they posted or ?li= nked? to the DeCSS program that they were misusing confidential, proprietar= y information belonging to DVD CCA or one of its predecessors-in-int= erest and/or that their activities were improper because such program wa= s designed specifically to enable users to defeat CSS encryption in = order to illegally pirate DVD videos and, thus, was specifically aimed at i= nfringing motion picture industry copyrights in the DVD contents. 60. Defendants? posting or ?linking? to the DeCSS program on the= ir web sites, with full knowledge of its unlawful purpose and despite not= ice of its infringing nature and demands to remove the same, constitutes = the willful misappropriation of the CSS trade secrets at issue. 61. As a result of Defendants? misappropriation of its trade sec= rets, DVD CCA has suffered and continues to suffer irreparable injury, for w= hich there is no adequate remedy at law. 62. Defendants? misappropriation of the CSS trade secrets was ca= rried out in a willful, wanton and reckless manner in disregard of the right= s of DVD CCA. 63. Unless enjoined by the Court, Defendants will continue their= misappropriation of the CSS trade secrets by continuing to post an= d ?link? to the proprietary information on their web sites and plaintiff wi= ll continue to suffer irreparable harm. PRAYER FOR RELIEF WHEREFORE, DVD CCA prays for judgment: 1. that Defendants have willfully misappropriate= d the CSS technology trade secrets; 2. entering a temporary restraining order and prelim= inary and permanent injunctions, enjoining and restraining Defendant= s, their officers, directors, principals, agents, servants, employees, a= ttorneys, successors and assigns, and all those acting in concert, combi= nation or participation with any of them either directly or indirectly, = singly or together, from making any further use or otherwise discl= osing or distributing, on their web sites or elsewhere, or ?linking? to = other web sites which disclose, distribute, or ?link? to any proprietary pr= operty or trade secrets relating to the CSS technology and specifically = enjoining Defendants, its officers, directors, principals, agents, = servants, employees, attorneys, successors and assigns, and all those = acting in concert, combination or participation with any of them either di= rectly or indirectly, singly or together, from copying, duplicating, l= icensing, selling, distributing, publishing, leasing, renting or otherwise = marketing the DeCSS computer program and all other products containing, usin= g, and/or substantially derived from CSS proprietary property or trade secre= ts; 3. awarding to DVD CCA the costs of this action, r= easonable attorneys fees, and such further and other relief as is found= just and proper. |-----------------------------------------> | | | Dated: December 28, 1999 | | | |-----------------------------------------> >-----------------------------------------| | | | WEIL, GOTSHAL & MANGES LLP | | | >-----------------------------------------| |-----------------------------------------> | | | | | | |-----------------------------------------> >-----------------------------------------| | | | | | | | | | By: | | JARED B. BOBROW | | (State Bar. No.133712) | | | | Attorneys for Plaintiff | | DVD Copy Control Association, Inc. | | | >-----------------------------------------| |-----------------------------------------> | | | | | | | | | | |-----------------------------------------> >-----------------------------------------| | | | | | OF COUNSEL: | | | >-----------------------------------------| WEIL, GOTSHAL & MANGES LLP ROBERT G. SUGARMAN** Pro hac vice applications being submitt= ed to the Court. JEFFREY L. KESSLER* EDWARD J. BURKE JONATHAN S. SHAPIRO* 767 Fifth Avenue New York, New York 10153 Telephone: (212) 310-8000 Facsimile: (212) 310-8007 = --0__=5wtQQgNO1nGD1W1bKJTIvgv4RDT7A5q8KRprXqRgDeHXqMhMPqqD0L2W--