Global Settlement Agreement Template
Global Settlement Agreement Template
Global Settlement Agreement Template
This Settlement Agreement (the “Agreement”) is made and entered into effective as of
June 24, 2015 (the “Effective Date”), between craigslist, Inc. (“craigslist”), on the one hand, and
3taps, Inc., Hard Yaka, Inc., and Robert G. Kidd (“3taps Defendants”) and PadMapper, Inc.
(“PadMapper” and, with the 3taps Defendants, the “Settling Defendants”), on the other hand.
craigslist and the Settling Defendants are referred to collectively as the “Parties.”
Recitals
A. craigslist has filed a lawsuit in the U.S. District Court for the Northern District of
California, entitled craigslist, Inc. v. 3Taps, Inc., et al., Case No. CV12-03816 CRB (the
“Action”), asserting claims for, among other things, breach of contract, trespass,
misappropriation, copyright infringement, trademark infringement, violations of the Computer
Fraud and Abuse Act and the California Comprehensive Computer Data Access and Fraud Act,
violations of the CAN-SPAM Act, and violations of the California Restrictions on
Unsolicited Commercial Email Advertisers.
B. The Settling Defendants have denied all allegations and have asserted
counterclaims including violations of Section 1 and Section 2 of the Sherman Act; Unfair
Competition in Violation of California Business & Professions Code §§ 17200 et seq; and
interference with 3taps’ economic advantage (the “Counterclaims”).
Agreement
SF\5989236.1
(i) $100,000.00 within five (5) days after entry of the 3taps
Judgment/Injunction. In the event the 3taps Defendants are unable to pay the $100,000.00 in this
timeframe, interest will begin to accrue at that time at the statutory legal rate of 10% per annum
under Cal. Code Civ. Proc. § 685.010, et seq.
(ii) The remaining $900,000.00 within ninety (90) days after entry of the 3taps
Judgment/Injunction. In the event the 3taps Defendants are unable to pay the $900,000.00 in this
timeframe, interest will begin to accrue at that time at the statutory legal rate of 10% per annum
under Cal. Code Civ. Proc. § 685.010, et seq.
Upon full payment of the $1,000,000.00 to craigslist, the 3taps Defendants will pay
$500,000.00 to PadMapper on terms mutually agreeable to 3taps and PadMapper.
3. Transfer of Domain Names. The 3taps Defendants warrant and represent that one
or more of them has full and clear title in and to the craiggers.com domain name referenced in
the 3taps Judgment/Injunction (the “Domain Name”). As of the Effective Date, the 3taps
Defendants hereby assign and otherwise transfer to craigslist all rights, title (including
ownership), interest in and to the Domain Name, together with any and all goodwill associated
therewith and appurtenant thereto, including without limitation the right to sue and collect
damages and/or profits for any and all past, present and future infringement and other
unauthorized use of the Domain Name by any person or entity not a party to this Agreement.
The 3taps Defendants further agree that, within five (5) days after the Effective Date, the 3taps
Defendants shall provide craigslist with the necessary authorization code(s) and any additional
information necessary to allow craigslist to transfer registration of the Domain Name from the
3taps Defendants to craigslist.
4. No Challenge.
(a) The Settling Defendants will never, at any time after the Effective Date and
through the end of time, whether acting alone or with or through other persons or entities, and
regardless of whether acting on their own behalf or on the behalf of others, oppose, seek
cancellation of, object to, challenge the strength or validity of, or otherwise attack any of
craigslist’s registered trademarks, copyrights or domain names (“Intellectual Property”) that exist
on or before the Effective Date.
(b) The Settling Defendants waive their right to appeal the Judgments/Injunctions and
agree that they will never attack, challenge or contest its enforceability or validity, or the
enforceability or validity of any of its terms, in any subsequent proceeding; provided, however,
that they retain the right in a subsequent proceeding to argue that certain conduct does not fall
within the scope of activity covered by the Judgments/Injunctions.
(c) The Parties are each free to disclose the terms and conditions of this Agreement.
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5. Scope of Agreement. This Agreement applies on a worldwide basis.
6. Mutual Releases.
(a) Except for the rights and obligations contained in this Agreement and in the
Judgments/Injunctions, craigslist releases and forever discharges the Settling Defendants and
their employees, officers, directors, and attorneys from any and all manner of causes of actions,
suits, proceedings, debts, contracts, judgments, damages, costs, claims and demands of any kind
(“Claims”), whether in law, equity or otherwise, which they have ever had, now have or may
have in the future, arising on or before the Effective Date from the conduct at issue in the Action
or other conduct known to craigslist as of the Effective Date, including all claims and
counterclaims alleged in the Action. For the avoidance of doubt, this release does not encompass
Defendant Brian Niessen or any contractors or other third party individuals or entities from
whom the Settling Defendants have sourced, acquired, or received content from craigslist’s
website or computer systems.
(b) The Settling Defendants hereby release and forever discharge craigslist and its
employees, officers, directors, and attorneys from any and all Claims, whether in law, equity or
otherwise, which they ever had, now have or may have in the future, arising on or before the
Effective Date from the conduct at issue in the Action or other conduct known to the Settling
Defendants as of the Effective Date, including all claims and counterclaims alleged in the
Action.
(c) For the avoidance of doubt, the Parties do not release claims for breach of this
Agreement or the enforcement of the Judgments/Injunctions.
(d) It is the intention of the Parties that this Agreement shall be effective as a full and
final release of all of the Claims released in sections 6(a) and 6(b) above, subject to the terms of
this Agreement, whether the full facts and circumstances relating to the Claims are known or
unknown. In furtherance thereof, the Parties, for themselves and their respective predecessors,
successors and assigns and all persons acting by, through, under, or in concert with any of them,
acknowledge that they have been advised by legal counsel of their own choosing concerning this
Agreement, and are familiar with, the provisions of California Civil Code Section 1542, which
provides:
A general release does not extend to claims which the creditor does not know or
suspect to exist in his or her favor at the time of executing the release which if
known by him or her must have materially affected his or her settlement with the
debtor.
Each of the Parties hereby expressly waives and relinquishes any and all rights and
benefits vis-à-vis the Parties released hereunder, which he, she or it has or may have under
section 1542 of the Civil Code, with respect to the Claims released in sections 6(a) and 6(b)
above. Each of the Parties acknowledges that he, she or it is aware that he, she or it or his, her or
its attorneys may hereafter discover facts different from or in addition to those which the Parties
or their respective attorneys now know or believe to be true with respect to the claims, demands,
debts, liabilities, accounts, obligations, and causes of action of every kind flowing from the
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foregoing released Claims, and they each agree that the release so given shall be and remain in
effect as a full and complete release of the Parties released thereby notwithstanding any such
different or additional facts, subject to the terms of this Agreement.
7. Costs and Attorneys’ Fees. The Parties shall each be responsible for their own
attorneys’ fees, costs, and expenses incurred by them prior to the Effective Date in connection
with the Action, including the preparation, negotiation and drafting of this Agreement, and waive
any and all claims against the other Parties for the recovery of the same.
8. Inurement. The Parties agree that this Agreement shall inure to the benefit of, and
be binding upon, each of the Parties and their respective affiliates, predecessors, successors and
assigns, and the agents and other authorized representatives, shareholders, officers, directors,
employees, insurers, heirs, executors, trustees, partners, and joint venturers of any of the
foregoing. As used herein, “affiliates” means any person or entity, who/which directly, or
indirectly through one or more intermediaries, controls, is controlled by, or is under the common
control with, either of the Parties hereto.
9. Governing Law and Venue; Future Disputes. This Agreement shall be deemed
executed and delivered in the State of California, and, unless and except to the extent governed
by the Federal laws of the United States, shall be construed and governed solely by the internal
laws of the State of California, without regard to California’s conflict of laws provisions. The
Parties submit to the personal jurisdiction and venue of the Federal and State courts of San
Francisco County, California, for resolution of any dispute arising out of or related to this
Agreement. In the event that any action is instituted that arises out of or relates to this
Agreement, the Parties are permitted to use all materials from the Action that they are otherwise
permitted to maintain in their files pursuant to the Stipulated Protective Order Governing
Confidentiality (including discovery and deposition materials) in that later-filed action, and the
prevailing Party will be entitled, in addition to any other available remedies, to recover
reasonable attorneys’ fees and costs, expenses and pre- and post-judgment interest.
10. Severability. It is the belief of the Parties that this Agreement does not contain
any provision contrary to law. However, if any part of this Agreement shall be determined to be
illegal, invalid, or unenforceable: (a) that part shall nevertheless be enforced to the extent
permissible in order to effect the intent of the Parties; and (b) the remaining parts shall be
deemed valid and enforceable, so long as the remaining parts continue to fulfill the original
intent of the Parties.
11. No Waiver. No delay or failure by either Party to exercise its rights under this
Agreement shall be construed to be a waiver thereof, unless memorialized by written instrument
signed by both Parties. The agreed waiver of any covenant, condition, or agreement to be
performed hereunder shall not be construed to be a continuing waiver of the same covenant,
condition or agreement or the waiver of a different covenant, condition or agreement.
Furthermore, the agreed waiver of any breach of this Agreement shall not be considered to be the
agreed waiver of a different or subsequent such breach.
14. Duty of Cooperation. The Parties shall at all times fully cooperate with each
other and shall cause their respective agents and attorneys to cooperate in a prompt and timely
manner in connection with the performance of all obligations of the Parties under this
Agreement. The Parties shall execute and deliver such additional documents or certificates, and
take such further action, as may be necessary or otherwise reasonably requested of them to fully
perform the provisions of this Agreement.
15. Representations. The Parties each represent that: (a) this Agreement is freely and
voluntarily entered into, and that each of the Parties has had an opportunity to consult with
counsel with respect to the advisability of entering into this Agreement; (b) no promise,
inducement, or agreement not contained in this Agreement has been made on any subject in
connection with this Agreement; (c) each Party has made such investigation of the facts
pertaining to this Agreement and of all the matters pertaining thereto as it deems necessary;
(d) each Party’s signatory to this Agreement is fully authorized to execute this Agreement on its
behalf; (e) each Party has all necessary power and authority to enter into the releases contained
herein; (f) no Claim or cause of action that is herein released has been sold, assigned or
transferred; and (g) the Parties jointly participated in the drafting of this Agreement, with the
result that any ambiguity contained therein shall not be interpreted or construed against either
Party as the drafter thereof.
16. Notices and Service of Process. Any and all notices, demands or requests
required or permitted to be given under this Agreement shall be given in writing and sent by
registered or certified mail, return receipt requested, or by hand or overnight delivery, with a
copy sent via email, to the addresses below. The Parties agree that service of process and service
of a summons related to any disputes between the Parties can be served via these notice
provisions.
If to craigslist: If to 3taps:
Jim Buckmaster Greg Kidd
craigslist 66 Starbuck Drive
222 Sutter St. Muir Beach, CA 94965
San Francisco, CA 94108 [email protected]
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and
If to Hard Yaka:
Perry Viscounty Greg Kidd
Latham & Watkins LLP 66 Starbuck Drive
140 Scott Drive Muir Beach, CA 94965
Menlo Park, CA 94025 [email protected]
[email protected]
With a copy to:
Jack P. DiCanio
Skadden, Arps, Slate, Meagher & Flom LLP
525 University Avenue
If to PadMapper: Palo Alto, CA 94301-1908
Eric Dementhon [email protected]
1600 Villa St., #315
Mountain View, CA 94041 If to Greg Kidd:
[email protected] Greg Kidd
66 Starbuck Drive
Muir Beach, CA 94965
With a copy to: [email protected]
Venkat Balasubrumani
800 Fifth Ave, Suite 4100 With a copy to:
Seattle, WA 98104 Jack P. DiCanio
[email protected] Skadden, Arps, Slate, Meagher & Flom LLP
525 University Avenue
Palo Alto, CA 94301-1908
[email protected]
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EXHIBIT A
Form of Stipulated Final Judgment and Permanent Injunction Against 3taps Defendants
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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22 Plaintiff craigslist, Inc. (“craigslist”), on the one hand, and Defendants 3taps, Inc. (“3taps”), Hard
24 I. Final Judgment
25 Judgment is entered in favor of craigslist against Defendants, jointly and severally, in the
26 amount of $1,000,000.00.
27 II. Injunction
28 Defendants and their respective current and future officers, agents, servants, employees,
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EXHIBIT B
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UNITED STATES DISTRICT COURT
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NORTHERN DISTRICT OF CALIFORNIA
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21 I. Final Judgment
23 II. Injunction
24 PadMapper and its current and future officers, agents, servants, employees, and other
25 persons who are in active concert or participation with it or individuals within its control
27 A. Effective immediately upon the entry of this Order, the Prohibited Parties shall
28 not display, frame, include, or post on any website owned or controlled by the
Case No. CV12-03816 CRB
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1 Prohibited Parties, including but not limited to padmapper.com (the “PadMapper
2 Websites”), any new “craigslist Content” (defined below) that was not displayed,
3 framed, included, or posted on the PadMapper Websites prior to the entry of this
4 Order.
5 B. Within fourteen (14) days of the entry of this Order, the Prohibited Parties will
6 forever cease access to and/or any use of, including but not limited to
7 reproducing, transmitting, displaying, framing, including, disseminating,
8 publishing, distributing, or giving away (“Access and Use”), any content,
9 including but not limited to user-generated postings, advertisements,
10 information, data, images, messages, or emails, that has been submitted to,
11 posted on, or transmitted via any craigslist website, service, or computer server,
12 including, but not limited to craigslist.org (“craigslist Content”). For the
13 avoidance of doubt, this prohibition includes, but is not limited to, craigslist
14 Content that a third party, including without limitation a third party located
15 outside U.S. jurisdiction, has obtained from (i) any craigslist website, service, or
16 computer server, or (ii) any other party, or series of parties, that itself or
17 themselves obtained craigslist Content from any craigslist website, service or
18 computer server.
19 C. The prohibition on Access and Use of craigslist Content includes: 1) direct
20 Access and Use by the Prohibited Parties; and 2) indirect Access and Use via a
21 third party, intermediary, or proxy, including but not limited to any search engine
22 or participant in crowd sourcing of craigslist Content. The prohibition covers all
23 Access and Use by the Prohibited Parties and provides no exceptions, including
24 but not limited to a claim of fair use or implied license.
25 D. The Prohibited Parties are also permanently prohibited from:
26 (1) directly or indirectly downloading, harvesting, obtaining, or copying
27 craigslist Content by any means whatsoever, including but not limited to
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1 robots, spiders, scrapers, or crawlers;
2 (2) directly or indirectly displaying, framing, including, disseminating,
3 publishing, distributing, selling, giving away, or otherwise presenting or
4 making available to any person or entity, or facilitating same, any
5 craigslist Content;
6 (3) representing, on their websites, in their mobile apps, or otherwise, that
7 they are in any way affiliated with craigslist, or that any of their products
8 or services contain or include any craigslist Content;
9 (4) directly or indirectly circumventing technological measures that control
10 access to any craigslist website or any portions thereof, including but not
11 limited to, measures that: monitor and/or block activity associated with
12 particular IP addresses or provide a set of instructions to any automated
13 technologies visiting the craigslist website that prohibit automated
14 programs (e.g., a robots.txt file), whether through use of multiple IP
15 addresses or any other means;
16 (5) directly or indirectly infringing any of craigslist’s copyrighted materials;
17 (6) sending or transmitting, or paying, directing, aiding, or conspiring with
18 others to send or transmit (i) any commercial electronic mail or electronic
19 communication to any craigslist email address, user, member or poster,
20 bearing any false, fraudulent, anonymous, inactive, deceptive, or invalid
21 return information, or otherwise using any other artifice, scheme or
22 method of transmission that would prevent the automatic return of
23 undeliverable electronic mail to its original and true point of origin or that
24 would cause the email return address to be that of anyone other than the
25 actual sender or by any other means in violation of the CAN-SPAM Act,
26 15 U.S.C. § 7701, et seq. or (ii) any commercial electronic mail message
27 to email addresses known to have been acquired or harvested from any
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1 craigslist website;
2 (7) engaging in the purchase, acquisition, collection, harvest, sale, transfer,
3 transmission, distribution, trade, or display of craigslist users’ postings,
4 names, locations, addresses, email addresses, phone numbers, contact
5 information, screen names or other user information, taken from any
6 craigslist website, service, or computer server, including, but not limited to
7 craigslist.org, or lists thereof; and
8 (8) directly or indirectly using, other than fair use, any craigslist trademark or
9 trade dress, or applying for, or registering any mark, trade name, trade
10 dress, company name, domain name, website username, or url that
11 contains any craigslist trademark or misspelling of any craigslist
12 trademark, or that is confusingly similar to any craigslist trademark; and
13 from using or acquiring any Twitter handle, email address, avatar, domain
14 name, social media user name, or other asset of any kind that contains or
15 suggests the words “craig,” “craigslist,” or anything similar.
16 E. The Prohibited Parties shall make their best efforts to permanently delete or
17 destroy any craigslist Content, regardless of whether obtained directly or
18 indirectly, whether stored in electronic form or otherwise, in their possession,
19 custody, or control within sixty (60) days of the entry of this Order. In any event,
20 such deletion and destruction shall be completed within ninety (90) days of the
21 entry of this Order. craigslist may, at its sole expense, retain a third party digital
22 forensics firm (“Forensics Firm”) to certify to the destruction of the craigslist
23 Content from PadMapper’s computer systems and files. The Forensics Firm
24 shall enter into a confidentiality agreement reasonably acceptable to PadMapper,
25 requiring the Forensics Firm to keep all information generated from an audit
26 strictly confidential, except facts solely related to PadMapper’s obligation to
27 delete or destroy under this paragraph E. PadMapper will provide the Forensics
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1 Firm with all necessary access for such a certification between 90 and 100 days
2 after the entry of this Order.
3 F. Notwithstanding the foregoing, any individuals who are Prohibited Parties are
4 permitted to make limited personal, non-commercial use of the craigslist website,
5 in full compliance with the craigslist Terms of Use in effect at that time, for the
6 purchase and sale of goods and services. This use is limited as follows:
7 (i) no more than ten (10) postings per month per individual; and
8 (ii) no more than twenty (20) visits to the website per month per individual,
9 with each visit not to exceed one (1) hour.
10 G. To the extent craigslist has reason to believe that any of the Prohibited Parties
11 have violated any provision herein, craigslist will provide such Prohibited Parties
12 notice and fifteen (15) days to cure before seeking to enforce this Injunction.
13 III. Monitoring Compliance
14 It is further ORDERED that the Prohibited Parties shall:
15 A. Take reasonable steps sufficient to monitor and ensure that all persons within their
16 control or employment (whether as independent contractors, employees, agents,
17 partners or in some other capacity) comply with this Order, including but not
18 limited to providing a copy of this Order to any person within their control or
19 employment and requesting that such person adhere to its terms; and
20 B. Take all reasonable corrective action with respect to any individual within their
21 control or employment whom any Prohibited Party determines is not in
22 compliance with the terms of this Order, which may include training, disciplining,
23 and/or terminating such individual, and notifying craigslist promptly in writing of
24 the underlying conduct.
25 IV. Dismissal of PadMapper’s Counterclaims With Prejudice
26 PadMapper’s counterclaims are dismissed with prejudice.
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1 V. Retention of Jurisdiction
2 It is further ORDERED that this Court shall retain jurisdiction of this matter in law and
3 equity for purposes of enforcing and/or adjudicating claims of violations of this Order or of
4 disputes arising in connection with the Settlement Agreement entered by the parties hereto. Any
5 such matters shall be raised by noticed motion. The Court finds that the above-referenced
6 stipulation of the Parties includes a waiver of the right to appeal the entry of this Order and a
7 waiver of the right to contest the validity of any clause, term, or provision herein in any
8 subsequent proceeding, and enters the Order on that basis; provided, however, that if for any
9 reason any clause, term, or provision herein is deemed unlawful or invalid, the remaining
10 clauses, terms and provisions shall remain in full force and effect.
11 IT IS SO ORDERED.
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Dated: __________________ ______________________________
13 Honorable Charles R. Breyer
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