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Zvelo, Inc. v. Akamai Techs., Inc.

United States District Court for the District of Colorado

September 30, 2019, Decided; September 30, 2019, Filed

Civil Action No. 19-cv-00097-PAB-SKC

Opinion

ORDER

This matter is before the Court on Defendant Akamai Technologies, Inc.'s Motion to Dismiss [Docket No. 28]. The Court has jurisdiction under 28 U.S.C. §§ 1331 and 1367.

I. BACKGROUND

Plaintiff zvelo, Inc. is a technology company that offers a database of categorized website addresses, or Uniform Resource Locators ("URLs"), for purposes of domain name filtering, content filtering, parental controls, content categorization, and other purposes. Docket No. 1 at 3, ¶ 12. This type of technology allows companies to filter or block access to certain websites on the companies' computers. Id. at 2, ¶ 7. Because websites differ so widely, filtering websites based on form or content can be difficult. Id., ¶ 8. Thus, plaintiff's database assigns categories [*2]  to each unique URL, such as "news" or "malicious software," so that users can filter or block websites based on category. Id. at 2-3, ¶¶ 8-9. Plaintiff also compiles data about URLs that are actively visited to keep its database up-to-date on active and inactive websites. Id. at 3-4, ¶ 14. Plaintiff calls its knowledge of active websites the "zvelo Active Web," which, along with the categorizations of the URLs, make up plaintiff's database — the "zveloDB." Id. at 4, ¶ 15. Plaintiff contends its database is unique and valuable intellectual property that would be challenging for another company to recreate. Id. at 3-4, ¶ 14.

Defendant Akamai Technologies, Inc. is a company that offers products and services that provide URL filtering functionality. Id. at 8, ¶ 41. Plaintiff alleges that defendant's products and services that provide this URL filtering functionality utilize plaintiff's database and the proprietary information contained therein. Id. at 8-9, ¶¶ 42-43. This allegation is based upon "information made available to the public by [defendant] as well as security measures that [plaintiff] has incorporated" into its database. Id. at 8, ¶ 42.

Plaintiff filed this lawsuit on January 10, 2019, raising claims of (1) trade secret misappropriation under [*3]  the Defend Trade Secrets Act ("DTSA"), 18 U.S.C. § 1836 et seq., (2) trade secret misappropriation under the Colorado Uniform Trade Secrets Act ("CUTSA"), Colo. Rev. Stat. § 7-74-101, et seq., and (3) unjust enrichment. Docket No. 1 at 9-13. Plaintiff also seeks injunctive relief. Id. at 14. On February 8, 2019, defendant filed a motion to dismiss for failure to state a claim under Rule 12(b)(6) of the Federal Rules of Civil Procedure. Docket No. 28. Plaintiff filed a response, Docket No. 38, to which defendant replied. Docket No. 46.

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2019 U.S. Dist. LEXIS 168552 *; 2019 WL 4751809

ZVELO, INC., Plaintiff, v. AKAMAI TECHNOLOGIES, INC., Defendant.

Subsequent History: Motion granted by, in part, Motion denied by, in part Zvelo, Inc. v. Akamai Techs., Inc., 2019 U.S. Dist. LEXIS 187135 (D. Colo., Oct. 29, 2019)

CORE TERMS

trade secret, database, misappropriation, alleges, unjust enrichment, preempted, filtering, websites, argues, secret, injunctive relief, categorized, constitutes, security measures, motion to dismiss, reasonable belief, cause of action, leave to amend, Technologies, invested, purposes, marks