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Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 1 of 13 PageID #:380
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`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
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`20 C 577
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`MEMORANDUM OPINION
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`
`STEVEN VANCE and TIM JANECYK, for
`themselves and others similarly situated,
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`Plaintiffs,
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`INTERNATIONAL BUSINESS
`MACHINES CORPORATION, a New York
`corporation,
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`v.
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`Defendant.
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`CHARLES P. KOCORAS, District Judge:
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`Before the Court is Defendant International Business Machines Corporation’s
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`(“IBM”) motion to dismiss Plaintiffs Steven Vance (“Vance”) and Tim Janecyk’s
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`(“Janecyk”) (collectively, “Plaintiffs”) Second Amended Class Action Complaint
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`(“SAC”) under Federal Rule of Civil Procedure 12(b)(6). For the following reasons,
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`the Court will grant the motion in part.
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`BACKGROUND
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`For purposes of this motion, the Court accepts as true the following facts from
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`the complaint. Alam v. Miller Brewing Co., 709 F.3d 662, 665–66 (7th Cir. 2013). All
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`reasonable inferences are drawn in Plaintiffs’ favor. League of Women Voters of
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`Chicago v. City of Chicago, 757 F.3d 722, 724 (7th Cir. 2014).
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 2 of 13 PageID #:381
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`Plaintiffs Vance and Janecyk are both Illinois residents. Defendant IBM is a
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`multinational technology corporation organized under the laws of the State of New
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`York with a corporate headquarters in Armonk, New York.
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`Vance has had an account with Flickr, a photo sharing service, since 2006. In
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`2008, Vance uploaded a photo of himself and two family members to Flickr from his
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`computer in Illinois. Similarly, Janecyk has had a Flickr account since 2008 and
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`uploaded a photo of himself to Flickr in 2011. Yahoo!, Flickr’s parent company at the
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`time, subsequently made Vance’s photo available to IBM in 2014 when it released over
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`99 million photos in a single, downloadable dataset called YFCC100M (“Flickr
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`Dataset”).
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`Plaintiffs allege that IBM used the Flickr Dataset to create its own dataset (the
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`“IBM Dataset”). The IBM Dataset was allegedly comprised of over one million front-
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`facing images of human faces. In each image, IBM allegedly extracted 68 key-points
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`and at least ten facial coding schemes, such as craniofacial distances, craniofacial areas,
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`craniofacial ratios, facial symmetry, facial regions contrast, skin color, age prediction,
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`gender prediction, subjective annotation, and pose and resolution.
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`Plaintiffs allege that IBM subsequently disseminated a dataset created from
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`information extracted from the IBM Dataset. IBM called this dataset “Diversity in
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`Faces” (“DIF Dataset”). Each image in the DIF Dataset could allegedly be traced back
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`to the individual Flickr account to which it was originally uploaded.
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`2
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 3 of 13 PageID #:382
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`Based on these facts, Plaintiffs filed the instant class action complaint on March
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`12, 2020. Plaintiffs allege that IBM did not establish a publicly available retention
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`schedule and guidelines for destroying biometric information in violation of Section
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`15(a) of the Illinois Biometric Information Privacy Act, 740 ILCS § 14/1 et seq.
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`(“BIPA”) (Count One); IBM collected, captured, or otherwise obtained Plaintiffs’
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`biometric information without written informed consent in violation of BIPA Section
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`15(b) (Count Two); IBM sold Plaintiffs’ biometric information in violation of BIPA
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`Section 15(c) (Count Three); IBM disclosed or otherwise disseminated Plaintiffs’
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`biometric information without Plaintiffs’ consent or required by law in violation of
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`BIPA Section 15(d) (Count Four); IBM failed to use reasonable care to protect
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`Plaintiffs’ biometric information from disclosure and did not store Plaintiffs’ biometric
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`information in a matter the same as IBM would store other confidential information in
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`violation of BIPA Section 15(e) (Count Five); a state law unjust enrichment claim
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`(Count Six); and a state law injunctive relief claim (Count Seven).1
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`Plaintiffs seek statutory damages of $5,000 for each willful and reckless violation
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`and $1,000 for each negligent violation of BIPA. IBM moved to dismiss the complaint
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`under Rule 12(b)(6) on April 16, 2020.
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`1 Count Seven was improperly labeled as Count Six.
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`3
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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 4 of 13 PageID #:383
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`LEGAL STANDARD
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`A motion to dismiss under Federal Rule of Civil Procedure 12(b)(6) “tests the
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`sufficiency of the complaint, not the merits of the case.” McReynolds v. Merrill Lynch
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`& Co., 694 F.3d 873, 878 (7th Cir. 2012). The allegations in the complaint must set
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`forth a “short and plain statement of the claim showing that the pleader is entitled to
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`relief.” Fed. R. Civ. P. 8(a)(2). A plaintiff need not provide detailed factual allegations,
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`but it must provide enough factual support to raise its right to relief above a speculative
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`level. Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 555 (2007).
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`
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`A claim must be facially plausible, meaning that the pleadings must “allow . . .
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`the court to draw the reasonable inference that the defendant is liable for the misconduct
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`alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). The claim must be described
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`“in sufficient detail to give the defendant ‘fair notice of what the . . . claim is and the
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`grounds upon which it rests.’” E.E.O.C. v. Concentra Health Servs., Inc., 496 F.3d 773,
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`776 (7th Cir. 2007) (quoting Twombly, 550 U.S. at 555). “[T]hreadbare recitals of the
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`elements of a cause of action, supported by mere conclusory statements,” are
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`insufficient to withstand a 12(b)(6) motion to dismiss. Iqbal, 556 U.S. at 678.
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`DISCUSSION
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`As a preliminary matter, we note that the Seventh Circuit’s recent decision in
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`Bryant v. Compass Group USA Inc., brings into question our subject-matter jurisdiction
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`over Plaintiffs’ claims under BIPA Section 15(a). 958 F.3d 617 (7th Cir. 2020). In
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`Bryant, the Seventh Circuit resolved an important issue that has divided courts in our
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`4
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 5 of 13 PageID #:384
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`District for the past three years: what BIPA violations are sufficiently substantive to
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`qualify as an injury for purposes of standing under Article III of the U.S. Constitution
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`(“Article III”).
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`Applying Justice Thomas’s rubric from his concurrence in Spokeo Inc., v.
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`Robbins, 136 S. Ct. 1540, 1551 (2016), the Bryant Court distinguished between the duty
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`owed under BIPA Section 15(b)—requiring that private entities obtain informed
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`consent to collect biometric information—and that owed under Section 15(a), requiring
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`private entities to make publicly available a data retention schedule and guidelines for
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`permanently destroying collected biometric identifiers and information. 958 F.3d at
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`624.
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`The Bryant Court found that the obligations under the former are owed to private
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`individuals, and therefore, a violation of BIPA Section 15(b) invades a plaintiff’s
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`personal privacy right to consider the terms under which her biometric information is
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`collected and used. Id. In contrast, the obligations under BIPA Section 15(a) are owed
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`to the public generally. Id. at 626. Therefore, a violation of that Section does not invade
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`a plaintiff’s personal privacy rights in a concrete manner. Id. Accordingly, the Bryant
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`Court held that a violation of Section BIPA Section 15(b) is a substantive violation that
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`creates a concrete and particularized Article III injury, whereas a violation of BIPA
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`Section 15(a) is procedural and does not create such an injury. Id.
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`Applying the Bryant Court’s holding, we conclude that we lack subject-matter
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`jurisdiction over Plaintiffs’ Section 15(a) claims. In their complaint, Plaintiffs allege
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`5
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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 6 of 13 PageID #:385
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`that IBM failed to maintain a publicly available retention and destruction schedule in
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`violation of BIPA Section 15(a). But such a violation does not create a concrete injury
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`as required under Article III. Therefore, we find that Plaintiffs lack standing to bring
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`this claim in federal court. The Court accordingly dismisses the claims under Section
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`15(a) for lack of subject-matter jurisdiction. See Wernsing v. Thompson, 423 F.3d 732,
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`743 (7th Cir. 2005) (“[N]ot only may the federal courts police subject matter
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`jurisdiction sua sponte, they must.”) (internal citation omitted); Wingerter v. Chester
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`Quarry Co., 185 F.3d 657, 660 (7th Cir. 1998) (holding that a court “has an obligation
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`to examine its jurisdiction sua sponte, even if the parties fail to raise a jurisdictional
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`issue.”).
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`
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`Turning to the merits of IBM’s motion, IBM urges the Court to dismiss
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`Plaintiffs’ BIPA claims, unjust enrichment claim, and injunctive relief claim. We
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`address each in turn.
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`I.
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`
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`BIPA
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`IBM urges the Court to dismiss Plaintiffs’ BIPA claims for three reasons: (1)
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`application of BIPA in this case would violate Illinois’s extraterritoriality doctrine; (2)
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`BIPA violates the U.S. Constitution’s Dormant Commerce Clause; and (3) BIPA
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`expressly exempts photographs. We address each argument in turn.
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`
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`a.
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`Illinois’s Extraterritoriality Doctrine
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`IBM first argues that Illinois’ extraterritoriality doctrine prohibits the litigation
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`of Plaintiffs’ claims because Plaintiffs do not allege that that the acts occurred primarily
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`6
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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 7 of 13 PageID #:386
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`and substantially in Illinois. Plaintiffs argue that this is not an issue to be decided at the
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`motion to dismiss stage. We agree with Plaintiffs.
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`
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`The Illinois Supreme Court has held that “a statute is without extraterritorial
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`effect unless a clear intent in this respect appears from the express provisions of the
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`statute.” Avery v. State Farm Mutual. Auto Ins. Co., 216 Ill. 2d 100, 184–85 (2005).
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`However, an Illinois law can be applied if “the circumstances that relate to the disputed
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`transaction occur[red] primarily and substantially in Illinois.” Id. at 187. “[T]here is
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`no single formula or bright-line test for determining whether a transaction occurs within
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`[Illinois]” and “each case must be decided on its own facts.” Id.
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`
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`The parties agree that BIPA cannot be applied extraterritorially. Thus, the
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`question is whether the events giving rise to this suit occurred primarily and
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`substantially in Illinois. However, this is a highly fact-based analysis that is generally
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`inappropriate for the motion to dismiss stage. Monroy v. Shutterfly, Inc., 2017 WL
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`4099846, *6 (N.D. Ill. 2017) (holding that the extraterritoriality doctrine is better
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`addressed on a motion for summary judgment); Rivera v. Google, Inc., 238 F. Supp. 3d
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`1088, 1101–02 (N.D. Ill. 2017) (same).
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`
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`While IBM is headquartered in New York, discovery is needed in order to
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`determine to what extent IBM’s alleged acts occurred in Illinois. For example, more
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`facts will need to be known regarding where IBM performed the face scans and where
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`the DIF Dataset was created. Without this information, the Court cannot determine
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`whether BIPA is being applied extraterritorially under Avery.
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`7
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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 8 of 13 PageID #:387
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`b.
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`Dormant Commerce Clause
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`IBM next argues that BIPA violates the Dormant Commerce Clause as applied
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`in this case. Specifically, IBM argues that because New York, IBM’s home state, has
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`repeatedly failed to pass laws similar to BIPA, Illinois’s BIPA “would displace the
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`inconsistent policies of New York” and thus violate the Dormant Commerce Clause.
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`Plaintiffs again argue that this is an issue more properly addressed on a motion for
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`summary judgment. We agree with Plaintiffs.
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`
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`The U.S. Constitution's Commerce Clause grants Congress the authority to
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`“regulate Commerce . . . among the several States.” U.S. Const. Art I, § 8, cl. 3. “Th[e]
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`‘negative’ aspect of the Commerce Clause is often referred to as the ‘Dormant
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`Commerce Clause’ and is invoked to invalidate overreaching provisions of state
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`regulation of commerce.” Alliant Energy Corp. v. Bie, 330 F.3d 904, 911 (7th
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`Cir.2003); see also Am. Trucking Assn's, Inc. v. Mich. Pub. Serv. Comm'n, 545 U.S.
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`429, 433 (2005).
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` The Dormant Commerce Clause
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`limits
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`the permissible
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`“extraterritorial effects of state economic regulation.” Healy v. Beer Institute, 491 U.S.
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`324, 336 (1989). Additionally, the “Dormant Commerce Clause . . . precludes the
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`application of a state statute to commerce that takes place wholly outside of the State's
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`borders, whether or not the commerce has effects within the State.” Id. at 336 (quoting
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`Edgar v. MITE Corp., 457 U.S. 624, 642–43 (1982)).
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`
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`Like the extraterritoriality doctrine, courts have repeatedly rejected the argument
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`that the Dormant Commerce Clause prevents BIPA’s application to out-of-state
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`8
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 9 of 13 PageID #:388
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`defendants at the motion to dismiss stage and held that the issue is more properly
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`addressed on a motion for summary judgment. Rivera., 238 F. Supp. 3d at 1104;
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`Monroy, 2017 WL 4099846, at **7–8; see In re Facebook Biometric Privacy Litig.,
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`2018 WL 2197546, *4 (N.D. Cal. 2018). In Rivera, for example, the Court held, “this
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`is not the stage at which to assess these arguments in detail. . . . Whether the Privacy
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`Act is nevertheless being summoned here to control commercial conduct wholly outside
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`Illinois is not possible to figure out without a better factual understanding of what is
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`happening in the [Defendant’s] face-scan process.” Rivera at 1104.
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`
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`We again believe that summary judgment is the more appropriate time to
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`determine whether the Dormant Commerce Clause bars Plaintiffs’ claims. We need
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`more detailed facts regarding IBM’s processes to know the extent to which IBM’s
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`actions occurred in Illinois and whether the Dormant Commerce Clause bars this suit.
`
`
`
`
`
`c.
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`BIPA’s Exclusion of Photographs
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`IBM next argues that BIPA expressly excludes photographs and biometric
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`information derived from photographs. Plaintiffs argue that courts have held that
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`conduct similar to IBM’s alleged conduct has been held to not be barred by BIPA’s
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`photograph exclusions. We agree with Plaintiffs.
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`
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`BIPA defines a “biometric identifier” as “a retina or iris scan, fingerprint,
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`voiceprint, or scan of hand or face geometry.” 740 ILCS 14/10. BIPA’s definition of
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`a biometric identifier expressly excludes photographs. Id. “Biometric information” is
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`“any information, regardless of how it is captured, converted, stored, or shared, based
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`9
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 10 of 13 PageID #:389
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`on an individual's biometric identifier used to identify an individual.” Id. However,
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`courts have held that biometric data obtained from photographs is a “biometric
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`identifier.” See, e.g., Rivera, 238 F. Supp 3d at 1095; In re Facebook Biometric Privacy
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`Litig., 185 F. Supp. 3d 1155, 1170–72 (N.D. Cal. 2016); Monroy, 2017 WL 4099846,
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`at **3-5.
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`
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`In Rivera, the court held that Google’s “face templates” derived from
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`photographs do not fall within BIPA’s exclusion of photographs. 238 F. Supp 3d at
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`1095. The court said that each template involved “creating a set of biology-based
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`measurements (‘biometric’) that is used to identify a person (‘identifier’).” Id.
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`Moreover, “a face template is one of the specified biometric identifiers in the Privacy
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`Act, namely, a ‘scan of ... face geometry.’” Id. The court found that nothing in BIPA
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`supported Google’s argument that the face scan had to be done in person and not from
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`a photograph because the statute does not specify how biometric information must be
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`captured. Id. “The bottom line is that a ‘biometric identifier’ is not the underlying
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`medium itself, or a way of taking measurements, but instead is a set of measurements
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`of a specified physical component (eye, finger, voice, hand, face) used to identify a
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`person.” Id. at 1096.
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`
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`Here, Plaintiffs allege that IBM extracted biometric information from
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`photographs to create their DIF Dataset. The DIF Dataset includes biometric
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`measurements that can be used to identify Plaintiffs. Thus, IBM’s alleged actions
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`implicate BIPA. While IBM argues that Rivera and other cases were wrongly decided,
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`10
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 11 of 13 PageID #:390
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`IBM has not offered any persuasive arguments to convince us. Indeed, as the Rivera
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`court warned, “Who knows how iris scans, retina scans, fingerprints, voiceprints, and
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`scans of faces and hands will be taken in the future? It is not the how that is important
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`to the Privacy Act; what's important is the potential intrusion on privacy posed by the
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`unrestricted gathering of biometric information.” Id. Accordingly, IBM’s motion to
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`dismiss Plaintiffs’ BIPA claims is denied.
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`II. Unjust Enrichment
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`
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`IBM argues that Plaintiffs’ unjust enrichment claims should be dismissed
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`because Plaintiffs do not allege they suffered a corresponding “economic expense” or
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`that they had a reasonable expectation of payment.2 In other words, IBM’s first
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`argument seems to be that Plaintiffs have not suffered damages. Plaintiffs argue that
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`they are not required to allege that they suffered an “economic expense” under Illinois
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`law or that they expected any payment. We agree with Plaintiffs.
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`
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`To plead a claim of unjust enrichment under Illinois law, “‘a plaintiff must allege
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`that the defendant has unjustly retained a benefit to the plaintiff's detriment, and that
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`defendant's retention of the benefit violates the fundamental principles of justice,
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`equity, and good conscience.’” Cleary v. Philip Morris Inc., 656 F.3d 511, 516 (7th
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`Cir. 2011) (quoting HPI Health Care Servs., Inc. v. Mt. Vernon Hosp., Inc., 131 Ill.2d
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`145, 160 (1989)).
`
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`2 IBM also argues that the unjust enrichment claims should be dismissed because they are based on the
`BIPA claims, and the underlying BIPA claims should be dismissed. As we are not dismissing the BIPA
`claims, we do not address this argument.
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`11
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 12 of 13 PageID #:391
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`
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`Plaintiffs have adequately plead an unjust enrichment claim. Plaintiffs allege
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`that IBM unlawfully acquired their biometric information and profited from the
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`dissemination of their biometric information. Plaintiffs allege that such alleged acts by
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`IBM violated Illinois public policy as expressed in BIPA. Moreover, Plaintiffs allege
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`that it would violate the principles of equity and good conscience to allow IBM to retain
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`and continue to profit from their biometric information. Plaintiffs allege that they
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`suffered damages because they are exposed to a heightened risk of privacy harm and
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`because they have been deprived of their control over their biometric data.
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`
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`The requirement that a plaintiff have a reasonable expectation of payment applies
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`when an unjust enrichment claim is predicated on a third party receiving the benefit of
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`a contract. Sunny Handicraft Ltd. v. Envision This!, LLC, 2015 WL 231108, *4 (N.D.
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`Ill. 2015) (applying Illinois law). This is because Illinois law ordinarily prohibits third
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`party quasi-contractual liability. Id.; see Goldstick v. ICM Realty, 788 F.2d 456, 468
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`(7th Cir. 1986) (“if you do work pursuant to a contract with X, you don't expect that Y,
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`a nonparty, will pay you if X defaults, merely because Y was benefited by your work”).
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`However, Plaintiffs claims are based on underlying statutory violations, not contract
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`law. Accordingly, IBM’s motion to dismiss Plaintiffs’ unjust enrichment claim is
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`denied.
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`III.
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`Injunctive Relief
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`IBM argues that Plaintiffs’ injunctive relief claim should be dismissed because
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`injunctive relief is a remedy and not a cause of action. Plaintiffs did not respond to this
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`12
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`

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`Case: 1:20-cv-00577 Document #: 48 Filed: 09/15/20 Page 13 of 13 PageID #:392
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`argument, thus waiving any argument. United States v. Holm, 326 F.3d 872 (7th Cir.
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`2003) (“It is not the obligation of this court to research and construct the legal arguments
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`open to parties,” and “perfunctory and undeveloped arguments” are waived.)
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`Nevertheless, the Court agrees that injunctive relief is not a cause of action. See, e.g.,
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`Noah v. Enesco Corp., 911 F. Supp. 305, 307 (N.D. Ill. 1995) (“An injunction is a
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`remedy, not a cause of action”); Independents Gas & Service Stations Associations, Inc.
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`v. City of Chicago, 112 F. Supp. 3d 749, 758 (N.D. Ill. 2015) (same); Missouri Pet
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`Breeders Assoc. v. County of Cook, 106 F. Supp. 3d 908, 927 (N.D. Ill 2015) (same).
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`Accordingly, Count Seven is dismissed.
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`CONCLUSION
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`
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`For the reasons mentioned above, the Court grants IBM’s motion to dismiss (Dkt.
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`# 35) as to Count Seven. Additionally, the Court dismisses Count One for lack of
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`subject matter jurisdiction. IBM’s motion is denied as to the remaining counts. Status
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`is set for 10/13/2020 at 10:40 a.m. It is so ordered.
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`Dated: 09/15/2020
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`________________________________
`Charles P. Kocoras
`United States District Judge
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`13
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`

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