`
`Eugene Y. Mar (State Bar No. 227071)
` emar@fbm.com
`Alex Reese (State Bar No. 280530)
` areese@fbm.com
`Winston Liaw (State Bar No. 273899)
` wliaw@fbm.com
`
`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`Telephone: (415) 954-4400
`Facsimile: (415) 954-4480
`
`Attorneys for Adobe Inc.
`
`UNITED STATES DISTRICT COURT
`
`NORTHERN DISTRICT OF CALIFORNIA, SAN JOSE DIVISION
`
`ADOBE INC.,
`
` Case No.
`
`Plaintiff,
`
`vs.
`
`COMPLAINT FOR (1) COPYRIGHT
`INFRINGEMENT AND (2) BREACH OF
`CONTRACT
`
`SILK ROAD TECHNOLOGY, INC.,
`
`DEMAND FOR JURY TRIAL
`
`Defendant.
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`38521\13118717.3
`
`
`
`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 2 of 13
`
`Plaintiff Adobe Inc. (Adobe) alleges:
`
`INTRODUCTION
`
`1.
`
`This case arises because defendant Silk Road Technology, Inc. (Silk Road) has
`
`breached its software licensing agreement with Adobe relating to an Adobe product called
`
`ColdFusion. Silk Road has also infringed Adobe’s copyrights that protect several versions of
`
`ColdFusion.
`
`2.
`
`Adobe provides some of the most popular and widely used software in the world.
`
`Using Adobe products, individuals can express their creativity with professional digital imaging,
`
`drawing, illustration, and photo and video editing software; developers can build and maintain
`
`cutting edge websites and online tools; and businesses can provide a comprehensive digital
`
`experience for their customers with website development, database management, marketing, and
`
`customer relationship management software. Adobe licenses its software products to individuals
`
`and enterprises using a variety of licensing programs.
`
`3.
`
`ColdFusion is Adobe software that provides a platform for users to build and
`
`deploy websites and mobile applications. Unless a licensee obtains a custom license, Adobe’s
`
`license for ColdFusion permits licensees to use ColdFusion only for internal use. For example,
`
`ColdFusion licensees use the product to create websites internal to their companies where their
`
`employees can submit expense reports or track inventory.
`
`4.
`
`Adobe’s ColdFusion license prohibits licensees from using ColdFusion to build
`
`websites or applications for or to be used by third parties. The license prohibits licensees, for
`
`example, from offering ColdFusion-based websites or applications to third parties under a
`
`“software as a service” arrangement or from using ColdFusion to build websites or applications
`
`for third parties to use. Licensees who wish to use ColdFusion to build products for third parties
`
`must negotiate custom “hosting” licenses with Adobe to account for the fact that multiple parties,
`
`not just the licensee, will benefit from and use ColdFusion technology.
`
`5.
`
`Silk Road purchased version 10 of ColdFusion in October 2012. As part of its
`
`purchase, Silk Road agreed to the license agreement attached as Exhibit 1 (the “ColdFusion
`
`License”). In executing this agreement, Silk Road promised it would not use ColdFusion “on
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`2
`
`38521\13118717.3
`
`
`
`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 3 of 13
`
`behalf of third parties” or use “the Software in a computer service business” or as “part of a hosted
`
`service.”
`
`6.
`
`Silk Road has broken all these promises. Among other things, Silk Road offers
`
`third parties a recruiting and human resources software product called OpenHire that was built
`
`using ColdFusion and runs on ColdFusion code. By using ColdFusion in connection with its
`
`OpenHire product in this way, Silk Road is breaching the ColdFusion License.
`
`7.
`
`Silk Road’s OpenHire product also infringes Adobe’s copyrights in ColdFusion
`
`because it is a derivative work for which Silk Road has no license.
`
`8.
`
`Adobe informed Silk Road that its use of ColdFusion violated the ColdFusion
`
`License and Adobe’s copyrights, but Silk Road has refused to negotiate a proper license or stop its
`
`numerous breaches of the ColdFusion License, including offering its infringing product and
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`services.
`
`9.
`
`As a result, Adobe is left with no choice but to seek judicial relief. Silk Road’s past
`
`and continuing use and copying of ColdFusion infringes Adobe’s copyrights and deprives Adobe
`
`of licensing revenue, while exposing Silk Road’s customers to potential security risks through the
`
`use of a version of the software no longer supported by Adobe. Accordingly, Adobe brings this
`
`suit for federal copyright infringement and breach of contract, as explained in more detail below.
`
`JURISDICTION, VENUE, AND INTRADISTRICT ASSIGNMENT
`This action arises under the United States Copyright Act, 17 U.S.C. § 101, et seq.
`
`10.
`
`This Court has subject matter jurisdiction over this action under 28 U.S.C. §§ 1331 and 1338
`
`because Adobe asserts a claim based on federal copyright law.
`
`11.
`
`This Court has supplemental jurisdiction under 28 U.S.C. § 1367 over Adobe’s
`
`claim for breach of contract because that claim is so related to Adobe’s claim under federal law
`
`that it forms part of the same case or controversy.
`
`12.
`
`This Court has personal jurisdiction over Silk Road because Silk Road agreed in
`
`the ColdFusion License to be subject to the jurisdiction of the state and federal courts in Santa
`
`Clara County, California for all disputes relating to the agreement.
`
`13.
`
`In addition, this Court has personal jurisdiction over Silk Road because it has
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`3
`
`38521\13118717.3
`
`
`
`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 4 of 13
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`substantial, continuous and systematic contacts with this district, including by regularly
`
`transacting business within the district. Silk Road has purposefully directed its activities toward,
`
`and entered into contracts within, this forum and has purposefully availed itself of the privilege of
`
`conducting activities in this forum, thereby invoking the benefits and protections of its laws. The
`
`wrongful acts alleged in this complaint arise out of and relate to Silk Road’s activities within this
`
`forum, which makes this Court’s exercise of jurisdiction over Silk Road reasonable.
`
`14.
`
`Venue is proper in this jurisdiction under 28 U.S.C. §§ 1391(b) because a
`
`substantial part of the events that give rise to Adobe’s claims occurred in this district, and Adobe
`
`has suffered substantial harm in this district. Additionally, venue is proper under 28 U.S.C.
`
`§ 1400(a) because Silk Road maintains offices in Oakland, California.
`
`15.
`
`This is an intellectual property action subject to district-wide assignment under
`
`Civil L.R. 3-2(c) and General Order No. 44.
`
`PARTIES
`
`16.
`
`Adobe is a Delaware corporation with its principal place of business in San Jose,
`
`California. Adobe develops and provides some of the most widely used and popular software in
`
`the world. Adobe offers a line of products and services used by creative professionals, marketers,
`
`knowledge workers, application developers, enterprises and consumers for creating, managing,
`
`delivering, measuring, optimizing and engaging with compelling content and experiences across
`
`multiple operating systems, devices and media. Its products run on personal and server-based
`
`computers, as well as on smartphones, tablets and other devices.
`
`17.
`
`Silk Road is a Delaware corporation with a principal place of business in Chicago,
`
`Illinois. Silk Road maintains several other offices, including one in Oakland, California.
`
`18.
`
`Silk Road offers consulting services and a suite of software products for human
`
`resources and employee management. Its clients include national and international corporations,
`
`prestigious universities, and governmental entities.
`
`FACTUAL ALLEGATIONS
`
`I.
`
`ADOBE COLDFUSION
`
`19.
`
`Adobe has spent years investing in and developing ColdFusion. ColdFusion
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`4
`
`38521\13118717.3
`
`
`
`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 5 of 13
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`software provides developers with a platform and software language for quickly developing
`
`websites and applications. Today, ColdFusion is a highly popular and widely used program with
`
`thousands of customers.
`
`20.
`
`ColdFusion’s industry leading security features are just one aspect of the software
`
`that make it a popular platform for website development. Adobe continuously works to improve
`
`and upgrade ColdFusion’s security features. Over the years, Adobe has released numerous new
`
`versions of ColdFusion and software patches to provide new and better functionality and enhance
`
`the software’s security features.
`
`21.
`
`Adobe offers a standard license to ColdFusion that restricts licensees to using the
`
`software to develop websites and applications for the licensee’s own internal uses only. In
`
`particular, the standard ColdFusion license prohibits licensees from offering ColdFusion to be
`
`“accessed from another individual’s or entity’s Computer.” Licensees are also prohibited from
`
`“using the Software on behalf of third parties,” from granting any other “rights in the Software” on
`
`a “membership or subscription basis,” and from providing use of ColdFusion software “in a
`
`computer service business” or “as part of a hosted service,” among other things. Licensees also
`
`may not use “any component, library, or other technology included in the Software other than
`
`solely in connection with its use of the Software.”
`
`22.
`
`Adobe owns all rights to the ColdFusion software and user documentation for it,
`
`which Adobe has registered with the United States Copyright Office. The U.S. Registration
`
`Number relevant to this lawsuit is TX 7-555-186 (Adobe ColdFusion 10), attached as Exhibit 2.
`
`II.
`
`SILK ROAD’S ACCESS TO COLDFUSION AND THE COLDFUSION LICENSE
`
`23.
`
`Silk Road contacted Adobe through a ColdFusion distributor in 2012 seeking a
`
`ColdFusion license. Adobe informed Silk Road that, because it offered its ColdFusion-based
`
`products to third parties, Silk Road would need a custom hosting agreement.
`
`24.
`
`Silk Road ignored Adobe’s guidance. In October 2012, it purchased ColdFusion
`
`version 10 and obtained an internal use license to use 15 instances of ColdFusion.
`
`25.
`
`Adobe maintains licensing histories for each of its customers on internal tracking
`
`systems. The system shows that the 2012 license number Silk Road obtained is 1185-5009-4654-
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`5
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`38521\13118717.3
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`
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 6 of 13
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`4337-6355-6215, and the Adobe order number associated with Silk Road’s purchase is
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`136933214.
`
`26.
`
`Silk Road agreed to the ColdFusion License in connection with its 2012 purchase
`
`of ColdFusion.
`
`27.
`
`The internal use ColdFusion License allowed Silk Road to install and use
`
`ColdFusion on Silk Road’s internal network, on licensed platforms and configurations, and as
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`otherwise set forth in the ColdFusion License. As a result of executing the ColdFusion License,
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`Silk Road was provided with copies of the copyrighted ColdFusion executable software and
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`documentation.
`
`28.
`
`The ColdFusion License defines “Authorized Users” as “employees or individual
`
`contractors (e.g., temporary employees) of Licensee.” See Ex. 1 at § 1.3.
`
`29.
`
`The ColdFusion License defines “Internal Network” as “Licensee’s private,
`
`proprietary network resource accessible only by Authorized Users” and “specifically excludes the
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`Internet or any other network community open to the public, including membership or
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`subscription driven groups, associations, or similar organizations.” See Ex. 1 at § 1.11.
`
`30.
`
`Section 2 of the ColdFusion License limits installation and use of ColdFusion to a
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`Licensee’s “Internal Network,” subject to the other restrictions in the ColdFusion License. See
`
`Ex. 1 at § 2. As noted above, this “Internal Network” may only be accessed by “Authorized
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`Users.”
`
`31.
`
`Section 2.6 of the ColdFusion License also restricts the uses permitted under the
`
`license. Under the heading “Prohibited Use,” Section 2.6.4 restricts licensees from outsourcing or
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`making ColdFusion available to third-party users unless the licensee has obtained a custom
`
`hosting agreement:
`2.6.4 Prohibited Use. Except as expressly authorized through a
`separate custom hosting agreement, Licensee is prohibited from:
`(a) using the Software on behalf of third parties; (b) renting, leasing,
`lending, or granting other rights in the Software including rights on a
`membership or subscription basis; (c) providing use of the Software
`in a computer service business, third party outsourcing facility or
`service, service bureau arrangement, time sharing basis, or as part of
`a hosted service; or (d) using any component, library, or other
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`6
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`38521\13118717.3
`
`
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 7 of 13
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`technology included with the Software other than solely in
`connection with its use of the Software. For more information about
`how to obtain a custom hosting agreement, please see:
`http://www.adobe.com/go/ColdFusion_Hosting_Agreement.
`See Ex. 1 at § 2.6.4.
`
`32.
`
`Silk Road has not executed custom hosting agreements with Adobe that would
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`grant it the right to use ColdFusion beyond the scope delineated in the internal use ColdFusion
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`License.
`
`33.
`
`Section 5 of the ColdFusion License provides that the “Software and any copies
`
`that Licensee is authorized by Adobe to make are the intellectual property of and are owned by
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`Adobe Systems Incorporated and its suppliers. . . . The Software is protected by copyright,
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`including without limitation by United States Copyright Law . . . . Except as expressly stated
`
`herein, this Agreement does not grant Licensee any intellectual property rights in the Software,
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`and all rights not expressly granted are reserve by Adobe.” See Ex. 1 at § 5.
`
`34.
`
`Section 12 of the ColdFusion License provides that “Adobe may…appoint an
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`independent third party of Adobe’s internal auditor to verify the usage and number of copies and
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`installations of the Software in use by the Licensee.” See Ex. 1 at § 12. Section 12 goes on to
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`state that “[i]f such verification shows that Licensee is using a greater number of copies of the
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`Software than that legitimately licensed, or is deploying or using the Software in any way not
`
`permitted under this Agreement and which would require additional license fees, Licensee shall
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`pay the applicable fees for such additional usage rights or copies within thirty (30) days of invoice
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`date, with such underpaid fees being the license fees as per Adobe’s then-current, country-specific,
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`license fee list.” Id. “If the underpaid fees are in excess of five percent (5%) of the value of the
`
`fees paid under this Agreement, then Licensee shall pay such underpaid fees and Adobe’s
`
`reasonable costs of conducting the verification.” Id.
`
`III.
`
`SILK ROAD’S PRODUCTS
`
`35.
`
`Silk Road claims to be the “global leader in strategic onboarding for organizations
`
`of all sizes and complexities faced with workforce transformation challenges.”
`
`36.
`
`According to Silk Road’s website, it has over 1,000 customers and offers a suite of
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`software products and consulting services to recruit, onboard, and track the performance of its
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`7
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`38521\13118717.3
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`
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 8 of 13
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`customers’ employees.
`
`37.
`
`One software product that Silk Road offers is called OpenHire, which is a tool for
`
`recruiting and managing the application process for new employees. Silk Road offers the
`
`OpenHire product under its “Recruiting” line of software products.
`
`38.
`
`OpenHire was built using the ColdFusion platform and runs on ColdFusion, and it
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`executes ColdFusion object code when Silk Road’s customers use Silk Road’s OpenHire product.
`
`39.
`
`Through the OpenHire product, Silk Road has also deployed ColdFusion as a
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`hosted service for third-party companies and consumers who are not Silk Road’s employees or
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`contractors. Silk Road has also offered OpenHire under a service bureau arrangement.
`
`40.
`
`Silk Road offers OpenHire as a software product that its third-party customers can
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`subscribe to and license. These customers are not employees or contractors of Silk Road.
`
`41.
`
`Silk Road also offers other human resources software products, including products
`
`that track employee performance, and others that train and educate employees. These products
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`also may have been built using ColdFusion.
`
`IV.
`
`SILK ROAD HAS VIOLATED ADOBE’S INTELLECTUAL PROPERTY RIGHTS AND
`MATERIAL TERMS OF THE INTERNAL USE COLDFUSION LICENSE.
`
`42.
`
`In May 2013, third party SupportObjective conducted an audit of Silk Road’s use
`
`of ColdFusion.
`
`43.
`
`SupportObjective concluded that Silk Road’s OpenHire product was in violation of
`
`the ColdFusion License because Silk Road offered the product to third parties. SupportObjective
`
`found that, to be in compliance, Silk Road would need to obtain a custom hosting agreement from
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`Adobe.
`
`44.
`
`Silk Road rejected SupportObjective’s conclusions and refused to agree to a custom
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`hosting license agreement with Adobe.
`
`45.
`
`SupportObjective further concluded that, since Silk Road was using an older and
`
`non-supported version of ColdFusion, its software would not receive critical security updates,
`
`which put both Silk Road’s customers and Adobe at risk.
`
`46.
`
`Silk Road continues to use, copy and deploy ColdFusion, both internally and on
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`28
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`8
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`38521\13118717.3
`
`
`
`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 9 of 13
`
`behalf of third parties in its OpenHire product, beyond the permitted uses set forth in the
`
`ColdFusion License.
`
`47.
`
`In addition, Silk Road offers OpenHire through third-party cloud computing
`
`companies, including Microsoft Azure and Salesforce. This violates Section 2 of the ColdFusion
`
`License.
`
`48.
`
`Silk Road has an estimated 1,800 customers for its OpenHire product. Based on
`
`that estimate, Silk Road’s misuse of ColdFusion deprived Adobe of about $12,600,000 in
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`licensing fees.
`
`49.
`
`Silk Road’s ongoing uses of ColdFusion, including of versions no longer supported
`
`by Adobe and containing known security risks remedied in subsequent releases, not only infringe
`
`Adobe’s intellectual property rights, but also risk jeopardizing the security of Silk Road’s clients’
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`data.
`
`CLAIM ONE
`(COPYRIGHT INFRINGEMENT)
`
`50.
`
`Adobe realleges and incorporates by reference the allegations contained in
`
`paragraphs 1 through 49 of this Complaint.
`
`51.
`
`The ColdFusion software and documentation (“Copyrighted Software”) are original
`
`works of authorship and constitute copyrightable subject matter under the copyright laws of the
`
`United States, 17 U.S.C. § 101 et seq.
`
`52.
`
`The Copyrighted Software has been registered with the Copyright Office. The U.S.
`
`Registration Number relevant to this lawsuit is TX 7-555-186 (Adobe ColdFusion 10), attached as
`
`Exhibit 2. Adobe is the owner of all right, title and interest to the copyright registrations for the
`
`Copyrighted Software and has complied in all respects with the laws governing copyright.
`
`53.
`
`As owner of the Copyrighted Software, Adobe enjoys the exclusive right to, among
`
`other things, reproduce the Copyrighted Software, prepare derivative works and distribute copies
`
`of the Copyrighted Software. 17 U.S.C. §§ 101, 106.
`
`54.
`
`Silk Road had access to the Copyrighted Software and copied it in connection with
`
`developing and deploying at least the OpenHire product, and in providing OpenHire to third
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`28
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`9
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`38521\13118717.3
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 10 of 13
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`parties and end-users, including both large financial institutions and customers of those
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`institutions.
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`55.
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`Silk Road has without authorization created, reproduced and distributed derivative
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`works, including Silk Road’s products described above, based upon the Copyrighted Software.
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`56.
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`Silk Road has directly infringed, and will continue to infringe, Adobe’s copyrights
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`in the Copyrighted Software at least by creating, reproducing and distributing the OpenHire
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`product.
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`57.
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`Silk Road’s infringement was deliberate, willful and in disregard of Adobe’s rights,
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`and it was committed for the purpose of commercial gain.
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`58.
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`Silk Road’s infringement of Adobe’s copyrights has harmed and will continue to
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`irreparably harm Adobe unless restrained by this Court. Adobe’s remedy at law is not adequate,
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`by itself, to compensate for the harm inflicted and threatened by Silk Road. Thus, in addition to
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`all other remedies to which it is entitled, Adobe is entitled to injunctive relief restraining Silk
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`Road, its officers, agents, employees, and all persons acting in concert with it or them from
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`engaging in further acts of copyright infringement.
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`59.
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`As a direct and proximate result of Silk Road’s copyright infringement, Adobe has
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`suffered, and will continue to suffer, monetary loss to its business reputation and goodwill. Adobe
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`is also entitled to recover from Silk Road all damages it has suffered and will continue to suffer as
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`a result of Silk Road’s infringement in actual amounts to be proven at trial as well as any and all
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`gains, profits, and advantages Silk Road has obtained as a result of its infringement. In the
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`alternative, Adobe is entitled to statutory damages pursuant to 17 U.S.C. § 504(c).
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`60.
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`Adobe is also entitled to recover its attorneys’ fees and costs of suit under 17
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`U.S.C. § 505.
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`CLAIM TWO
`(BREACH OF CONTRACT)
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`61.
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`Adobe realleges and incorporates by reference the allegations contained in
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`paragraphs 1 through 49 of this Complaint.
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`62.
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`Adobe and Silk Road are parties to the internal use ColdFusion License, a valid
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
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`10
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`38521\13118717.3
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 11 of 13
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`contract.
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`63.
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`Adobe performed all conditions, covenants and promises required on its part to be
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`performed in accordance with the internal use ColdFusion License’s terms and conditions, and any
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`and all other conditions required by the ColdFusion License for Silk Road’s performance
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`occurred.
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`64.
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`Silk Road breached its obligations under the internal use ColdFusion License by
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`using the ColdFusion software and documentation for purposes other than those specifically
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`permitted under the agreement, including: the unauthorized copying and use of the ColdFusion
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`software and documentation and the unauthorized creation of derivative works based on the
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`ColdFusion software and documentation.
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`65.
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`Silk Road has also breached its obligations under the internal use ColdFusion
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`License by installing and using the software on networks other than an “Internal Network,” as
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`defined in the internal use ColdFusion License, in violation of Section 2 of the ColdFusion
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`License.
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`66.
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`Silk Road has also breached its obligations under the internal use ColdFusion
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`License by using the software on behalf of third parties, including, but not limited to, by creating
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`and offering the OpenHire product to third parties; by renting, leasing, lending, or granting other
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`rights in the ColdFusion software; by providing use of the ColdFusion software in a computer
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`service business, third party outsourcing facility or service, service bureau arrangement, time
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`sharing basis, or as part of a hosted service; and by using components, libraries, or other
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`technologies included with the ColdFusion software other than solely in connection with Silk
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`Road’s internal use of the software, in violation of Section 2.6.4 of the ColdFusion License.
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`67.
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`Silk Road has also breached its obligations under the internal use ColdFusion
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`License by refusing to pay the amounts determined by SupportObjective, in violation of Section
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`12 of the ColdFusion License.
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`68.
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`As a direct and proximate result of Silk Road’s breach, Adobe has been damaged in
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`an amount to be proven at trial. Through its breach, Silk Road not only deprived Adobe of the
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`license revenues Silk Road owes, but also inhibited Adobe’s ability to seek license revenues from
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`11
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`38521\13118717.3
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`
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 12 of 13
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`Silk Road’s customers and third parties who improperly used and received copies of or derivative
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`works based upon ColdFusion. As a result, Adobe has suffered and will continue to suffer
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`economic injury and monetary loss to its business.
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`69.
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`In addition, the unlicensed use of unsupported versions of ColdFusion by third
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`parties not in a contractual or support relationship with Adobe can create concerns regarding the
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`integrity of the product, potentially jeopardizing users’ data by exposing them to known security
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`risks that have been addressed in subsequent releases of ColdFusion.
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`70.
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`As a direct and proximate result of Silk Road’s breach, Adobe is also entitled to
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`injunctive relief. Silk Road’s material breach has caused Adobe irreparable harm that cannot be
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`compensated in monetary damages alone. Unless restrained and enjoined, Silk Road will continue
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`to harm Adobe’s intellectual property rights. Adobe’s remedy at law is not adequate to
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`compensate for these inflicted and threatened injuries, entitling Adobe to injunctive relief
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`requiring Silk Road to cease all use of the ColdFusion software and documentation.
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`PRAYER FOR RELIEF
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`Wherefore, Adobe requests that this Court award judgment in Adobe’s favor and against
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`Silk Road for:
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`a.
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`Injunctive relief under 17 U.S.C. § 502 enjoining Silk Road, its officers, agents,
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`servants, employees, successors, assigns and all persons acting in concert with it or
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`them, from directly or indirectly engaging in acts that infringe Adobe’s copyrights;
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`b.
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`An award of actual damages and any additional infringer’s profits under 17 U.S.C.
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`§ 504 together with pre-judgment and post-judgment interest on the damages
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`awarded; or if elected prior to final judgment, statutory damages, including those
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`for willful infringement, under 17 U.S.C. § 504(c);
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`An award of attorneys’ fees and costs under 17 U.S.C. § 505;
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`An award of actual damages sustained as a result of Silk Road’s breach of the
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`c.
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`d.
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`internal use ColdFusion License;
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`e.
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`An award of Adobe’s reasonable costs for performing the verification under
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`12
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`38521\13118717.3
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`
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`Case 4:20-cv-03049-DMR Document 1 Filed 05/04/20 Page 13 of 13
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`Section 12 of the ColdFusion License;
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`f.
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`Injunctive relief requiring Silk Road to cease all use and disclosure of any portion
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`of the Adobe software and documentation to which it no longer has a license and to
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`destroy all copies of Adobe’s software and documentation; and
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`g.
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`Any and all other legal or equitable relief that the Court deems just and proper.
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`May 4, 2020
`
`FARELLA BRAUN + MARTEL LLP
`
`By:
`
`/s/ Alex Reese
`Alex Reese
`
`Attorneys for Adobe Inc.
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`JURY DEMAND
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`Adobe demands a jury trial on all claims and issues that are so triable.
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`May 4, 2020
`
`FARELLA BRAUN + MARTEL LLP
`
`By:
`
`/s/ Alex Reese
`Alex Reese
`
`Attorneys for Adobe Inc.
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`Farella Braun + Martel LLP
`235 Montgomery Street, 17th Floor
`San Francisco, California 94104
`(415) 954-4400
`
`Complaint for (1) Copyright Infringement and (2)
`Breach of Contract
`
`13
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`38521\13118717.3
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`