Facts

Be In Inc. sued Google Inc., YouTube LLC and Google UK Ltd. alleging misappropriation of trade secrets, copyright infringement, breach of contract, and breach of implied contract in connection with Google's release of "Hangouts" as part of its Google+ social network. Defendants sought to dismiss the lawsuit.

PLAINTIFF'S CONTENTIONS:
In 2007, Be In developed a software called CamUp, described as a "social entertainment consumption platform that allows a group of friends to simultaneously watch, listen, chat and collaborate around shared videos, music, and other media, such as educational content and documents, in a real-time, trusted environment." In March 2011, Be In publicly announced CamUp at the SXSW in Austin Texas where Google representatives were in attendance. The following month, Be In presented CamUp in Cannes where Google representatives were again present. In April or May 2011, Be In directly approached a Google UK employee to pitch CamUp, which eventually led to a meeting where the companies agreed to enter into a nondisclosure agreement. In that meeting, Be In disclosed its confidential strategies and shared its trade secrets. Neither Google UK nor any of the other defendants ultimately followed up on the meeting. Then, two months later Google released "Hangouts" as part of its Google+ social network. Be In contended that Hangouts was virtually identical to CamUp. Thus, Be In contended that defendants misappropriated its trade secrets learned in connection with its May 2011 meeting. Moreover, that defendants infringed on its copyright and breached its implied contract not to use Be In's confidential strategies without just compensation and breached CamUp's website's terms of service by copying, downloading, or exploiting portions of Be In's website for commercial purposes.

DEFENDANTS' CONTENTIONS:
Defendants denied all allegations and filed a motion to dismiss Be In's complaint for failure to state a claim. Defendant contended that plaintiff failed to plead sufficient facts for its claim for misappropriation. Moreover, defendant contended that plaintiff's implied contract claim conflicted with the express terms of the parties' NDA. Defendant also contended that the pleadings were insufficient to support a contract formation with regard to defendant's alleged assent to Be In's Terms of Services in its CamUp website.

Result

U.S. District Judge Lucy H. Koh granted defendants' motion to dismiss with leave to amend Be In's misappropriation of trade secrets and breach of contract claims. Judge Koh dismissed with prejudice Be In's claim for statutory copyright damages after Be In agreed not to seek damages on this claim. Defendants did not move to dismiss the copyright cause of action, and the claim for actual damages for copyright infringement remains.