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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