Case 1:13-cv-01708-CL

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Michael A. Gehret (OSB # 125496) Snell & Wilmer L.L.P. 15 West South Temple Street Suite 1200 Salt Lake City, Utah 84101 Telephone: (801) 257-1530 Facsimile: (801) 257-1800 Email: mgehret@swlaw.com Sid Leach Snell & Wilmer L.L.P. One Arizona Center 400 East Van Buren Phoenix, Arizona 85004-2202 Telephone: (602) 382-6372 Facsimile: (602) 382-6070 Email: sleach@swlaw.com Attorneys for Plaintiff Vortx, Inc.

UNITED STATES DISTRICT DISTRICT OF OREGON MEDFORD DIVISION

VORTX, INC., an Oregon corporation, Plaintiff, v. CHANNELADVISOR CORPORATION, a Delaware corporation, Defendant.

Case No.: 1:13-cv-01708 COMPLAINT FOR CIRCUMVENTION OF COPYRIGHT PROTECTION SYSTEM (17 U.S.C. 1203(a))

Plaintiff Vortx, Inc., complains of Defendant ChannelAdvisor Corporation as follows: 1. Plaintiff Vortx, Inc. (Vortx) is an Oregon corporation, with its principal place

of business at 2245 Ashland Street, Ashland, Oregon 97520. 2. Defendant ChannelAdvisor Corporation (ChannelAdvisor) is a Delaware

corporation with its principal place of business at 2701 Aerial Center Parkway, Morrisville,

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North Carolina 27560. 3. This Court has subject matter jurisdiction of this action pursuant to 28 U.S.C.

1331 and 28 U.S.C. 1338(a). This civil action is authorized by 17 U.S.C. 1203(a). 4. Venue is proper in this district pursuant to 28 U.S.C. 1391(b) and 28 U.S.C.

1400(a). Defendant ChannelAdvisor resides in this district within the meaning of the venue statutes because ChannelAdvisor was subject to personal jurisdiction in this district at the time this action was commenced. In addition, venue is proper in this district pursuant to 28 U.S.C. 1391(b) because a substantial part of the events or omissions giving rise to the claim occurred in this district and/or a substantial part of the property that is the subject of this action is situated in this district. 5. Plaintiff Vortx, Inc., is the owner of the copyright in and to computer software

known as aspdotnetstorefront. Plaintiff is the owner of Certificate of Registration No. TX 7265-277 for the copyrighted aspdotnetstorefront software. The Certificate of Registration No. TX 7-265-277 originally issued to Discovery Productions, Inc., with an effective date of registration of June 4, 2010. On or about August 5, 2010, the Certificate of Registration No. TX 7-265-277 was duly assigned to Plaintiff Vortx, Inc., through an instrument of conveyance, or a note or memorandum of the transfer, which complied with the requirements of 17 U.S.C. 204(a). 6. Plaintiff Vortxs copyrighted aspdotnetstorefront software included a

technological measure that effectively controlled access to the copyrighted software. Plaintiff Vortx provided a licensing mechanism for the copyrighted aspdotnetstorefront software that, in the ordinary course of its operation, prevented, restricted, and otherwise limited the exercise of rights of Plaintiff Vortx in the copyrighted aspdotnetstorefront software.

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7.

Defendant ChannelAdvisor obtained possession of one or more copies of

Plaintiffs copyrighted aspdotnetstorefront software. 8. Defendant ChannelAdvisor, acting through software programmers working for

ChannelAdvisor, created software computer code that circumvented Plaintiffs technological measure without the authority of Plaintiff Vortx. Defendant ChannelAdvisor, acting through software programmers working for ChannelAdvisor, created software computer code for the purpose of avoiding, bypassing, deactivating, or impairing Plaintiff Vortxs licensing mechanism that controlled access to the copyrighted aspdotnetstorefront software, and did so without the authority of Plaintiff Vortx. 9. The software computer code created by Defendant ChannelAdvisor to

circumvent Plaintiffs technological measure included a file containing executable code named ASPDNSFApplication.dll. 10. Defendant ChannelAdvisor circumvented Plaintiffs technological measure in

order to provide access to Plaintiff Vortxs copyrighted aspdotnetstorefront software to users who paid Defendant ChannelAdvisor fees for such access. 11. Defendant ChannelAdvisor circumvented Plaintiffs technological measure for

Defendants own commercial gain and profit. 12. Defendant ChannelAdvisor was aware that it was circumventing Plaintiffs

licensing mechanism, and the software code written by Defendants software programmers was intentionally created for the purpose of circumventing Plaintiffs licensing mechanism. 13. The sole purpose for Defendant ChannelAdvisor creating the software code

contained in the file named ASPDNSFApplication.dll was to circumvent Plaintiffs technological measure and/or to circumvent Plaintiffs licensing mechanism.

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14.

As a result of Defendants circumvention of Plaintiffs technological measure,

Defendant ChannelAdvisor was able to run at least 328 copies of Plaintiff Vortxs copyrighted aspdotnetstorefront software for Defendants customers on ChannelAdvisors servers. 15. Defendant ChannelAdvisor realized financial gain in the form of compensation

and fees paid by Defendants customers for the copies of Plaintiff Vortxs copyrighted aspdotnetstorefront software that ran on ChannelAdvisors servers as a result of Defendants acts of circumvention. 16. The number of acts of circumvention committed by Defendant ChannelAdvisor

is equal to the number of times that a user logged into Defendant ChannelAdvisors servers to obtain access to Plaintiff Vortxs copyrighted aspdotnetstorefront software. 17. On information and belief, hundreds of user logins were made in connection with

each copy of Plaintiff Vortxs copyrighted aspdotnetstorefront software that Defendant ran on ChannelAdvisors servers. 18. In accordance with the provisions of 17 U.S.C. 1203(c)(3), Plaintiff Vortx

seeks to recover actual damages suffered as a result of Defendants violations and any of Defendants profits attributable to the violation and which are not taken into account in computing the actual damages if Plaintiff elects such damages as provided by statute, or alternatively, statutory damages for each act of circumvention in the sum of not less than $200 or more than $2,500 per act of circumvention if Plaintiff elects statutory damages as provided by statute. WHEREFORE, Plaintiff Vortx respectfully prays for: A. A judgment entered in favor of Plaintiff Vortx and against Defendant ChannelAdvisor, finding that ChannelAdvisors conduct violated 17 U.S.C.

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1201; B. A temporary and permanent injunction against ChannelAdvisor on such terms as the court deems reasonable to prevent and restrain further violations as permitted by 17 U.S.C. 1203(b)(1); C. An order impounding, on such terms as the court deems reasonable, of all copies of Plaintiff Vortxs copyrighted aspdotnetstorefront software that is in the custody or control of ChannelAdvisor and that the court has reasonable cause to believe was involved in a violation as permitted by 17 U.S.C. 1203(b)(2); D. An order impounding, on such terms as the court deems reasonable, of all copies of the software code created by ChannelAdvisor for the purpose of circumventing Plaintiff Vortxs technicological measure, including all software code contained in the file named ASPDNSFApplication.dll, as permitted by 17 U.S.C. 1203(b)(2); E. F. G. An award of damages as permitted by 17 U.S.C. 1203(b)(3); An award of Plaintiffs costs as permitted by 17 U.S.C. 1203(b)(4); An award of Plaintiffs reasonable attorneys fees as permitted by 17 U.S.C. 1203(b)(5); H. An order for the remedial destruction of all software created or used to circumvent Plaintiffs technological measure; and, I. In accordance with Rule 54(c) of the Federal Rules of Civil Procedure, the court is requested to grant the relief to which Plaintiff may be entitled, even if Plaintiff has not demanded that relief in its pleadings.

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DATED this 25th day of September, 2013. Respectfully submitted,

/s/ Michael A. Gehret Michael A. Gehret SNELL & WILMER L.L.P. 15 West South Temple Street Suite 1200 Salt Lake City, Utah 84101 Telephone: (801) 257-1530 Facsimile: (801) 257-1800 Email: mgehret@swlaw.com Sid Leach SNELL & WILMER L.L.P. One Arizona Center 400 E. Van Buren Street Phoenix, Arizona 85004-2202 Telephone: (602) 382-6372 Facsimile: (602) 382-6070 Email: sleach@swlaw.com

ATTORNEYS FOR PLAINTIFF VORTX, INC.

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