Court Grants CAN-SPAM Defendant's Request for Bond


I've blogged previously about CAN-SPAM's bond requirement (here and here).  To my knowledge, no one has been successful in requesting bond.  Last week a court granted a defendant's request for bond.  The only catch is that it rejected Defendant's request for a $200,000 bond, and instead it set bond at $7,500.  Access the court's order here [pdf].

The court's order is well worth a read and covers a few interesting issues, among them whether Plaintiff (Asis Internet) has standing to bring its claims under CAN-SPAM.  The court comes to what seems like a creative solution on the issue and decides to bifurcate standing and decide the issue up front.  The court's order also contains discussion of the standards for when CAN-SPAM defendants should be awarded fees.  As the court notes, there are a few possible approaches here.

The court doesn't seem as skeptical of Asis's chances as Defendant hoped.  Defendant put up a good fight on this one, but it's tough to tell whether the court's $7,500 bond requirement will stop the lawsuit in its tracks.  I guess the bifurcation ruling alone is probably a victory for Defendant.  (NB: Magistrate Judge Chen's order constitutes his recommendation, and I think is subject to extremely limited review by the district court judge.)
 
 
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