Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 1 of 17 1 2 3 4 5 6 7 8 XAVIER BECERRA Attorney General of California STEPAN A. HAYTAYAN Supervising Deputy Attorney General ANTHONY R. HAKL Deputy Attorney General State Bar No. 197335 1300 I Street, Suite 125 P.O. Box 944255 Sacramento, CA 94244-2550 Telephone: (916) 210-6065 Fax: (916) 324-8835 E-mail: Anthony.Hakl@doj.ca.gov Attorneys for Defendant Attorney General Xavier Becerra 9 IN THE UNITED STATES DISTRICT COURT 10 FOR THE NORTHERN DISTRICT OF CALIFORNIA 11 12 13 IMDB.COM, INC., a Delaware corporation, 3:16-cv-06535 14 15 v. Plaintiff, DEFENDANT’S OPPOSITION/OPENING BRIEF ON CROSS-MOTIONS FOR SUMMARY JUDGMENT 16 18 XAVIER BECERRA, in his official capacity as Attorney General of the State of California, 19 Defendant, 17 Date: Time: Dept.: Judge: Action Filed: October 26, 2017 10:00 a.m. No. 4 – 17th Floor Honorable Vince Chhabria November 10, 2016 20 21 SCREEN ACTOR’S GUILD-AMERICAN FEDERATION OF TELEVISION AND RADIO ARTISTS, 22 Defendant-Intervenor. 23 24 25 26 27 28 Defendant’s Opposition/Opening Brief on Cross Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 2 of 17 1 TABLE OF CONTENTS 2 Page 3 Introduction ..................................................................................................................................... 1 Background ..................................................................................................................................... 1 I. Section 1798.83.5 (AB 1687).................................................................................. 1 II. The Parties ............................................................................................................... 2 III. Plaintiff’s First Amendment Claim and Preliminary Injunction ............................. 3 Applicable Legal Standards ............................................................................................................ 3 Argument ........................................................................................................................................ 4 I. Section 1798.83.5 Is a Valid Regulation of Voluntary Commercial Contracts, and Any Incidental Effect on Speech Does Not Implicate the First Amendment. .................................................................................................... 4 II. Even If Section 1798.83.5 Concerns Speech, It Is a Permissible Regulation of Commercial Speech. ........................................................................................... 8 Conclusion .................................................................................................................................... 11 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 i Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 3 of 17 1 TABLE OF AUTHORITIES 2 Page 3 CASES 4 Allied Structural Steel Co. v. Spannaus 438 U.S. 234 (1978) ....................................................................................................................7 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Anderson v. Holder 673 F.3d 1089 (9th Cir. 2012)...................................................................................................10 Anderson v. Liberty Lobby 477 U.S. 242 (1986) ....................................................................................................................3 Board of Trs. v. Fox 492 U.S. 469 (1989) ....................................................................................................................9 Celotex Corp. v. Catrett 477 U.S. 317 (1986) ....................................................................................................................3 Central Hudson Gas & Elec. Corp. v. Public Serv. Comm. of New York 447 U.S. 557 (1980) ................................................................................................................8, 9 Cincinnati v. Discovery Network, Inc. 507 U.S. 410 (1993) ....................................................................................................................8 City of Richmond v. J.A. Croson Co. 488 U.S. 469 (1989) ....................................................................................................................9 Clark v. Cmty. for Creative Non–Violence 468 U.S. 288 (1984) ....................................................................................................................4 Cohen v. Cowles Media Co. 501 U.S. 663 (1991) ........................................................................................................4, 5, 6, 7 20 21 22 23 24 Connecticut Bar Ass’n v. United States 620 F.3d 81 (2d Cir. 2010) ..........................................................................................................8 DVD Copy Control Ass’n, Inc. v. Bunner 31 Cal. 4th 864 (2003) ................................................................................................................7 E.E.O.C. v. Townley Eng’g & Mfg. Co. 859 F.2d 610 (9th Cir. 1988).......................................................................................................9 25 26 27 28 Greater New Orleans Broad. Ass’n v. U.S. 527 U.S. 173 (1999) ....................................................................................................................9 Louie v. McCormick & Schmick Restaurant Corp. 460 F. Supp. 2d 1153 (C.D. Cal. 2006).....................................................................................10 ii Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 4 of 17 1 TABLE OF AUTHORITIES (continued) 2 3 4 5 6 7 8 9 10 11 12 13 Page Miracle Auto Center v. Superior Court 68 Cal.App.4th 818 (1998)..........................................................................................................7 Mut. Life Ins. Co. of New York v. Phinney 178 U.S. 327 (1900) ....................................................................................................................7 Outdoor Sys. Inc. v. City of Mesa 997 F.2d 604 (9th Cir. 1993).......................................................................................................9 Reed v. Town of Gilbert, Ariz. 135 S. Ct. 2218 (2015) ................................................................................................................7 Robi v. Five Platters, Inc. 918 F.2d 1439 (9th Cir. 1990).....................................................................................................4 Snepp v. United States 444 U.S. 507 (1980) ...................................................................................................................6 Southern California Gas Co. v. Santa Ana 336 F.3d 885 (9th Cir. 2003)...................................................................................................3, 4 14 15 16 17 18 Swenson v. File 3 Cal.3d 389 (1970) ....................................................................................................................7 True the Vote v. Hosemann 43 F. Supp. 3d 693 (S.D. Miss. 2014) .........................................................................................6 U.S. Trust Co. of N.Y. v. New Jersey 431 U.S. 1 (1977) ........................................................................................................................7 19 20 Wang Laboratories, Inc. v. Mitsubishi Electronics, America, Inc. 860 F. Supp. 1448 (C.D. Cal. 1993) ...........................................................................................4 21 STATUTES 22 23 24 15 United States Code §§ 6501-6506................................................................................................6 18 United States Code § 2710 ...........................................................................................................6 20 United States Code 1232g ............................................................................................................6 25 47 United States Code § 551 .............................................................................................................6 26 27 28 iii Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 5 of 17 1 TABLE OF AUTHORITIES (continued) 2 3 Page 6 California Civil Code § 1798.83.5 ........................................................................................................................ passim § 1798.83.5(a) .............................................................................................................................2 § 1798.83.5(b) .........................................................................................................................2, 7 § 1798.83.5(d)(1) ........................................................................................................................1 § 1798.83.5(d)(4) ....................................................................................................................1, 7 7 Communications Decency Act § 230(c)(1).......................................................................................3 8 COURT RULES 9 Federal Rules of Civil Procedure Rule 5.2(a)(2) .............................................................................................................................6 Rule 56(c) ...................................................................................................................................3 4 5 10 11 12 Federal Rules of Evidence, Rule 201 ....................................................................................................................................10 13 OTHER AUTHORITIES 14 Joel Kane, 27 No. 3 Cal. Emp. L. Letter 1 (Nov. 7, 2016) ...............................................................5 15 Eugene Volokh, Freedom of Speech and Information Privacy: The Troubling Implications of A Right to Stop People from Speaking About You, 52 Stan. L. Rev. 1049, 1057 (2000)...............................................................................................................6 16 17 18 Neil M. Richards, Reconciling Data Privacy and the First Amendment, 52 UCLA L. Rev. 1194-96 (2005) ...............................................................................................................6 19 20 21 22 23 24 25 26 27 28 iv Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 6 of 17 1 INTRODUCTION Under section 1798.83.5 of the California Civil Code, 1 Plaintiff IMDb.com, Inc. (“IMDb”) 2 3 is free to publish date of birth and age information as a general matter. The provision is only 4 triggered if IMDb, as a commercial online entertainment employment service provider, 5 voluntarily contracts with a paying subscriber for employment services and that subscriber 6 requests that such information not be published. Applying only in these narrow circumstances, 7 the provision is a contract-based nondisclosure rule and the Court should uphold it as valid 8 regulation of voluntary commercial contracts. Any incidental effect on speech does not implicate 9 a First Amendment right. If the First Amendment is implicated, section 1798.83.5 is a valid 10 regulation of commercial speech. For these reasons, and as explained below, the Court should 11 grant Defendant Attorney General Xavier Becerra’s motion for summary judgment and deny 12 IMDb’s motion. 13 14 15 BACKGROUND I. SECTION 1798.83.5 (AB 1687) Effective January 1, 2017, AB 1687 added section 1798.83.5 to the California Civil Code. 16 The provision governs “contractual agreements” between “commercial online entertainment 17 employment service providers” and their paying subscribers. § 1798.83.5. As defined by the 18 law, a “commercial online entertainment employment service provider” is “a person or business 19 that owns, licenses, or otherwise possesses computerized information, including, but not limited 20 to, age and date of birth information, about individuals employed in the entertainment industry, 21 including television, films, and video games, and that makes the information available to the 22 public or potential employers.” § 1798.83.5(d)(1). A “subscriber” is “a natural person who 23 enters into a contractual agreement with a commercial online entertainment employment service 24 provider to receive employment services in return for a subscription payment.” 25 § 1798.83.5(d)(4). 26 27 28 1 All further statutory references are to the California Civil Code unless otherwise indicated. 1 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 7 of 17 1 The express purpose of the law is “to ensure that information obtained on an Internet Web 2 site regarding an individual’s age will not be used in furtherance of employment or age 3 discrimination.” § 1798.83.5(a). To that end, the statute, provides: 4 A commercial online entertainment employment service provider that enters into a contractual agreement to provide employment services to an individual for a subscription payment shall not, upon request by the subscriber, do either of the following: 5 6 7 (1) Publish or make public the subscriber’s date of birth or age information in an online profile of the subscriber. 8 (2) Share the subscriber’s date of birth or age information with any Internet Web sites for the purpose of publication. 9 10 11 § 1798.83.5(b). Under the statute, a commercial online entertainment employment service provider subject 12 13 to the above requirement “shall, within five days, remove from public view in an online profile of 14 the subscriber the subscriber’s date of birth and age information on any companion Internet Web 15 sites under its control upon specific request by the subscriber naming the Internet Web sites.” 16 § 1798.83.5(b). Any such service provider “that permits members of the public to upload or 17 modify Internet content on its own Internet Web site or any Internet Web site under its control 18 without prior review by that provider shall not be deemed in violation of this section unless first 19 requested by the subscriber to remove age information.” Id. 20 II. 21 THE PARTIES Plaintiff IMDb operates http://www.imdb.com/ (“IMDb.com”), a publically-accessible 22 online information database regarding films, television shows, and professionals in the 23 entertainment industry. Compl. at 2. The information available on IMDb.com is provided by 24 IMDb itself along with users of the site, although IMDb routinely updates and verifies 25 information provided by users. Id. 26 IMDb also operates IMDbPro, a paid subscription service that allows industry professionals 27 to create their own profile pages, including a résumé, for example, and to access job listings, 28 company information, and information regarding other industry professionals. Compl. at 2-3. 2 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 8 of 17 1 Defendant Attorney General Xavier Becerra is sued in his official capacity as Attorney 2 General of the State of California. See Compl. at 5 & n.1, supra. As the chief law officer for 3 California, he is authorized to enforce state law, including section 1798.83.5. 4 Defendant-Intervenor Screen Actor’s Guild-American Federation of Television and Radio 5 Artists (“SAG-AFTRA”) is a large entertainment industry union, representing over 160,000 6 media professionals. See Doc. No. 9 at 3 (SAG-AFTRA’s motion to intervene). The Court 7 granted SAG-AFTRA’s unopposed motion to intervene to defend the constitutionality of 8 section 1798.83.5 based on the organization’s involvement in the entertainment industry and its 9 role as the sponsor of AB 1687. See id. & Doc. no. 38 (Order Granting Mot. to Intervene). 10 11 III. PLAINTIFF’S FIRST AMENDMENT CLAIM AND PRELIMINARY INJUNCTION IMDb’s motion for summary judgment is limited to its claim that section 1798.83.5 is a 12 content-based regulation of speech that violates the First Amendment because it is not narrowly 13 drawn to serve a compelling state interest. See Compl. at 10-11. This is the claim upon which 14 the Court preliminarily enjoined the operation of the statute. 2 See Doc. No. 54 (Order Granting 15 Mot. for Prelim. Inj.). 16 17 APPLICABLE LEGAL STANDARDS Summary judgment is appropriate if the record demonstrates no genuine issue of material 18 fact and that the moving party is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 19 477 U.S. 317, 322 (1986); see also Fed. R. Civ. P. 56(c). Material facts are those necessary to the 20 proof or defense of a claim, and are determined by reference to the substantive law. See 21 Anderson v. Liberty Lobby, 477 U.S. 242, 248 (1986). The party with the burden of persuasion at 22 trial “must establish ‘beyond controversy every essential element of its . . . claim.” Southern 23 California Gas Co. v. Santa Ana, 336 F.3d 885, 887 (9th Cir. 2003). 24 25 2 26 27 28 The second claim alleged in the complaint, but currently not at issue, is that the law violates the Commerce Clause because it is not limited “to conduct in and related to California.” Compl. at 13. The third claim is that section 230(c)(1) of the Communications Decency Act preempts section 1798.83.5, which IMDb argues impermissibly imposes liability on it for content created by a third party. 3 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 9 of 17 1 At the summary judgment stage the question before the court is whether there are genuine 2 issues for trial, or whether the matter can be decided as a matter of law. Southern California Gas, 3 336 F.3d at 887. Upon a showing that there is no genuine issue of material fact as to a particular 4 claim, the court may grant summary judgment in the party’s favor, “upon all or any part thereof.” 5 Wang Laboratories, Inc. v. Mitsubishi Electronics, America, Inc., 860 F. Supp. 1448, 1450 6 (C.D. Cal. 1993); Robi v. Five Platters, Inc., 918 F.2d 1439, 1441 (9th Cir. 1990). 7 8 ARGUMENT 9 SECTION 1798.83.5 IS A VALID REGULATION OF VOLUNTARY COMMERCIAL CONTRACTS, AND ANY INCIDENTAL EFFECT ON SPEECH DOES NOT IMPLICATE THE FIRST AMENDMENT. 10 Because section 1798.83.5 regulates economic contractual relationships, not protected 11 speech, IMDb cannot meet its burden to show that the First Amendment applies to the conduct at 12 issue. See, e.g., Clark v. Cmty. for Creative Non–Violence, 468 U.S. 288, 293 n.5 (1984) 13 (“Although it is common to place the burden upon the Government to justify impingements on 14 First Amendment interests, it is the obligation of the person desiring to engage in assertedly 15 expressive conduct to demonstrate that the First Amendment even applies.”). 16 I. The First Amendment is not a source of “limitless” protection, not even for the publication 17 of truthful information acquired lawfully. 3 Cohen v. Cowles Media Co., 501 U.S. 663, 671 18 (1991). In Cohen, the Supreme Court held that the First Amendment did not prohibit a plaintiff 19 from recovering damages, under a state promissory estoppel law, for a newspaper’s breach of a 20 promise of confidentiality given to the plaintiff in exchange for information. Id. at 665. The 21 Court reasoned, in part, that the law was one of general applicability that had “incidental effects” 22 on the newspaper’s ability to gather and report the news. Id. at 669. Moreover, the Court was 23 persuaded by the fact that the agreement between the plaintiff and the newspaper was in the form 24 of a contract. As the Court put it: “The parties themselves . . . determine the scope of their legal 25 3 26 27 28 Defendant assumes for the purposes of this motion that the age and date of birth information published by Plaintiff is “truthful,” although there is reason to believe that is not always the case. Plaintiff admits that IMDb.com contains at least some inaccuracies. See Compl. at 2 (“IMDb routinely and gladly updates information on IMDb.com in order to correct verified inaccuracies.”). 4 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 10 of 17 1 obligations, and any restrictions that may be placed on the publication of truthful information are 2 self-imposed.” Id. at 671. 3 While section 1798.83.5 may not be a generally applicable law, the key point is that it has 4 only “incidental effects,” if any, on IMDb’s ability to publish factual information. Cohen, 5 501 U.S. at 669. Section 1798.83.5 is hardly sweeping in its scope. On the contrary, it narrowly 6 proscribes the disclosure of a discreet category of information in an online profile of the 7 subscriber. See Joel Kane, 27 No. 3 Cal. Emp. L. Letter 1 (Nov. 7, 2016) (“This law has a fairly 8 narrow scope, and it won't directly apply to the majority of employers. However, it emphasizes 9 the importance that California places on protecting against age discrimination, including by the 10 entertainment industry and providers of Internet services.”). And the only reason the proscription 11 extends to the publicly-accessible IMDb.com (as opposed to only IMDbPro), is a result of the 12 decision by IMDb to effectively join its free Web publication to a fee-for-service product. Such 13 an arrangement cannot be used to insulate IMDb from a legitimate business regulation. After all, 14 a subscriber pays a fee to IMDbPro, effectively “hiring” the service to host his or her online 15 profile, assist with business connections, access and facilitate employment opportunities, and so 16 on. It is undisputed that IMDbPro allows a paying subscriber to omit any mention of date of birth 17 or age information from his or her profile. Thus, there is a basic unfairness to allowing IMDb to 18 turn around and publish that same information on another site it owns and controls, not to 19 mention makes freely available, just because it happens to be outside the subscription. Section 20 1798.83.5 guards against that unfairness by requiring IMDb – the company that entered into a 21 voluntary contract with a paying subscriber to provide employment services – to remove date of 22 birth or age information across all of the sites it controls, if that is what a paying subscriber 23 chooses to do. 24 25 26 27 28 In addition to narrowly proscribing a discreet category of information, section 1798.83.5 regulates the disclosure of private, sensitive information, i.e., age and birth date. 4 In a variety of 4 Plaintiff tacitly concede the private nature of the information at stake. In its complaint, Plaintiff characterized date of birth or age information as “public information.” Compl. ¶8. Plaintiff used the same phrase at the preliminary injunction stage. See Pl.’s Mot. for Prelim Inj. at 2 & 10. But Plaintiff’s motion for summary judgment is conspicuously devoid of the phrase. 5 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 11 of 17 1 contexts, the law deems such information as private and not subject to disclosure. See, e.g., True 2 the Vote v. Hosemann, 43 F. Supp. 3d 693, 736–37 (S.D. Miss. 2014) (“various courts have 3 recognized in the context of FOIA litigation that birthdates are sensitive information and have 4 construed FOIA’s “Exemption 6” to protect the disclosure of birthdates”); Fed. R. Civ. P. 5 5.2(a)(2) (requiring certain age information be redacted from court filings for privacy reasons). 6 Indeed, acceptance of IMDb’s First Amendment theory here would imperil a host of similar 7 nondisclosure laws that apply in the context of voluntary consumer transactions. See, e.g., 8 18 U.S.C. § 2710 (limiting disclosure of personal information in video tape rental or sale 9 records); 47 U.S.C. § 551 (regulating collection, use, and disclosure by cable operators of 10 “personally identifiable” information regarding cable subscribers); 20 U.S.C. 1232g (concerning 11 “release of education records (or personally identifiable information therein . . . .”); 15 U.S.C. 12 §§ 6501-6506 (Children’s Online Privacy Protection Act requirements governing disclosure of 13 personal information). See also Neil M. Richards, Reconciling Data Privacy and the First 14 Amendment, 52 UCLA L. Rev. 1194-96 (2005) (commercial nondisclosure or confidentiality 15 rules generally have never been thought to fall within the scope of the First Amendment’s 16 protection). Under IMDb’s theory, any company could circumvent nondisclosure laws like these 17 if it happens to have, or starts, a separate media product line. 18 Next, while section 1798.83.5 subjects contracts between IMDb and its paying subscribers 19 to a particular kind of regulation, it cannot reasonably be questioned that those contracts are 20 voluntary. IMDb and its paying subscribers mutually agree to enter into contracts for 21 employment services, with each side remaining free not to enter into any contract in the first 22 place. Thus, the decision to contract is “self-imposed.” Cohen, 501 U.S. at 671; see Eugene 23 Volokh, Freedom of Speech and Information Privacy: The Troubling Implications of A Right to 24 Stop People from Speaking About You, 52 Stan. L. Rev. 1049, 1057 (2000) (“[O]ne sort of limited 25 information privacy law – contract law applied to promises not to reveal information – is 26 eminently defensible under existing free speech doctrine. The Supreme Court explicitly held in 27 Cohen v. Cowles Media that contracts not to speak are enforceable with no First Amendment 28 problems.”); see also Snepp v. United States, 444 U.S. 507, 510 n.1 (1980) (holding that 6 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 12 of 17 1 agreement by former government employee not to publish information about agency was 2 enforceable because employee accepted employment and voluntarily signed agreement). 5 3 To be sure, the plain language of section 1798.83.5 places it in the category of a regulation 4 of economic contracts between private parties. In relevant part, the law applies to any 5 commercial online entertainment service provider “that enters into a contractual agreement to 6 provide employment services.” §1798.83.5(b) (italics added). Similarly, it applies to any 7 “subscriber” to those services, who the law defines as “a natural person who enters into a 8 contractual agreement with a commercial online entertainment employment service provider to 9 receive employment services in return for a subscription payment.” § 1798.83.5(d)(4) (italics 10 added). For this reason as well, IMDb has no basis upon which to complain of a First 11 Amendment violation. See Cohen; 501 U.S. at 670-71; see also DVD Copy Control Ass’n, Inc. v. 12 Bunner, 31 Cal. 4th 864, 895 (2003) (“Both the United States Supreme Court and this court have 13 recognized that the First Amendment right to free expression may be legitimately circumscribed 14 by state law intellectual property rights.”). Certainly, as a general matter, states have 15 considerable leeway in regulating contracts between private parties. See, generally, Allied 16 Structural Steel Co. v. Spannaus, 438 U.S. 234, 241 (1978) (“It is the settled law of this court that 17 the interdiction of statutes impairing the obligation of contracts does not prevent the State from 18 exercising such powers as are vested in it for the promotion of the common weal, or are necessary 19 for the general good of the public[.]”); U.S. Trust Co. of N.Y. v. New Jersey, 431 U.S. 1, 22 20 (1977) (states have “broad power to adopt general regulatory measures without being concerned 21 that private contracts will be impaired, or even destroyed, as a result”). 6 22 23 24 25 26 27 5 Related to this point, the general rule is that when parties enter into contracts, they are presumed to know and understand the applicable law, and to have drafted the provisions accordingly. See Mut. Life Ins. Co. of New York v. Phinney, 178 U.S. 327, 341–42 (1900); Swenson v. File, 3 Cal.3d 389, 393 (1970); Miracle Auto Center v. Superior Court, 68 Cal.App.4th 818, 821 (1998). 6 Plaintiff’s reliance on Reed v. Town of Gilbert, Ariz., 135 S. Ct. 2218 (2015) is misplaced. Reed concerned restrictions on signs and billboards aimed at the general public. The case casts no doubt on Cohen, or these other commercial contract precedents. 28 7 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 13 of 17 1 II. EVEN IF SECTION 1798.83.5 CONCERNS SPEECH, IT IS A PERMISSIBLE REGULATION OF COMMERCIAL SPEECH. 2 3 In the event the Court concludes that this is a First Amendment case, section 1798.83.5 4 concerns commercial speech. Commercial speech is an “expression related solely to the 5 economic interests of the speaker and its audience,” or, alternatively, speech “proposing a 6 commercial transaction.” Central Hudson Gas & Elec. Corp. v. Public Serv. Comm. of New 7 York, 447 U.S. 557, 560 (1980). The Supreme Court has recognized that this definition is hardly 8 precise and it is often difficult to distinguish between commercial and noncommercial speech. 9 See Cincinnati v. Discovery Network, Inc., 507 U.S. 410, 419 (1993) (recognizing difficulty of 10 11 “drawing bright lines that will clearly cabin commercial speech in a distinct category”). IMDb has argued that this case concerns speech unconnected to a business transaction. On 12 the contrary, by its terms the statute regulates speech only in the context of contractual 13 agreements between entities like IMDb and its paying subscribers. Additionally, because such 14 contracts concern the provision of employment services by businesses like IMDb, and the receipt 15 of such services by paying subscribers, any speech in connection with those contracts concerns 16 the economic interests of the parties to those transactions. Thus, if section 1798.83.5 regulates 17 speech at all, it regulates commercial speech. See, generally, Connecticut Bar Ass’n v. United 18 States, 620 F.3d 81, 94 (2d Cir. 2010) (concluding that “the contract requirements of [a federal 19 statute] qualify as commercial speech”). 20 Accordingly, the strict scrutiny urged by IMDb does not apply. Rather, the less-than-strict 21 review under Central Hudson applies. In Central Hudson Gas & Elec. Corp. v. Public Service 22 Commission of New York, 447 U.S. 557, 566 (1980), the Supreme Court set out the four-part First 23 Amendment test applicable to a statute regulating commercial speech. As the Court explained: 24 25 26 27 At the outset, we must determine [1] whether the expression is protected by the First Amendment. For commercial speech to come within that provision, it at least must concern lawful activity and not be misleading. Next, we ask [2] whether the asserted governmental interest is substantial. If both inquiries yield positive answers, we must determine [3] whether the regulation directly advances the governmental interest asserted, and [4] whether it is not more extensive than is necessary to serve that interest. 28 8 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 14 of 17 1 2 Central Hudson, 447 U.S. at 566. Here, the first and second parts of the Central Hudson test are not at issue. Based on the 3 current record, it does not appear that the relevant date of birth or age information is either 4 misleading or related to unlawful activity as a general matter. Nor is there any dispute that 5 combatting age discrimination in employment is a substantial and compelling state interest. 6 See, e.g., City of Richmond v. J.A. Croson Co., 488 U.S. 469, 536 (1989) (remedying past 7 discrimination is compelling interest); E.E.O.C. v. Townley Eng’g & Mfg. Co., 859 F.2d 610, 8 620-621 (9th Cir. 1988) (same). Thus, any Central Hudson analysis turns on the third and fourth 9 parts of the applicable test. 10 With regard to the third part, that the regulation directly advances the government’s 11 interests, California is required to point to something more than “mere speculation or conjecture” 12 to “demonstrate that the harms it recites are real and that its restriction will in fact alleviate them 13 to a material degree.” Greater New Orleans Broad. Ass’n v. U.S., 527 U.S. 173, 188 (1999) 14 (citation omitted). Related, the fourth part of the test asks whether the speech restriction is more 15 extensive than necessary to serve the interests that support it. Id. This element does not require 16 that California adopt the least restrictive means for achieving its objectives. Board of Trs. v. Fox, 17 492 U.S. 469, 480, (1989); Outdoor Sys. Inc. v. City of Mesa, 997 F.2d 604, 610 (9th Cir. 1993). 18 Rather, there need only be a “reasonable fit” between the government’s ends and the means 19 chosen to accomplish those ends. Fox, 492 U.S. at 480; see Greater New Orleans Broad. Ass’n, 20 527 U.S. at 188 (requiring “a fit that is not necessarily perfect, but reasonable”). 21 The Legislature passed AB 1687 to address age discrimination in the entertainment 22 industry, which “remains a problem” despite the state’s civil rights laws. Sen. Rules Com., 23 Analysis of Assem. Bill No. 1687 (2015-2016 Reg. Sess.) Aug. 3, 2016, at 3; see Sen. Com. on 24 Judiciary, Analysis of Assem. Bill No. 1687 (2015-2016 Reg. Sess.) June 14, 2016, at 1 (despite 25 laws like Fair Employment and Housing Act and Unruh Civil Rights “age discrimination remains 26 a problem in the entertainment industry”); Assem. Com. on Privacy & Consumer Protection, 27 Analysis of Assem. Bill No. 1687 (2015-2016 Reg. Sess.) May 3, 2016, at 2 (“age discrimination 28 9 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 15 of 17 1 continues to exist and is facilitated through public distribution of potential job applicant’s birth 2 and age information via commercial online employment service providers”). 7 3 Thus, IMDb’s argument that the State simply needs to enforce its current age discrimination 4 laws falls short. The Legislature determined that, in this particular industry, those laws have 5 proven insufficient to eliminate discrimination. As a further remedial measure, AB 1687 was 6 designed to limit the availability of age information of entertainment industry professionals. As 7 the author of the bill observed, “[i]n particular, actors are often cast in roles in which they portray 8 characters who are younger or older than their real biological age. . . . As actors age, they are very 9 concerned that they will be shut out from parts based on unlawful age bias.” Sen. Rules Com., 10 11 Analysis of Assem. Bill No. 1687 (2015-2016 Reg. Sess.) Aug. 3, 2016, at 4. The restriction also is no more extensive than necessary. It only applies to commercial 12 online entertainment employment service providers and subscribers who enter into contractual 13 agreements for employment services. Thus, if the law regulates speech, at most it comes into 14 play in the context where the remedy is needed, paid employment services specific to the 15 entertainment industry. Third parties to the contractual agreements (i.e., those outside of the 16 voluntary, mutually beneficial agreements like those between IMDb and its paying subscribers) 17 are not covered by the law. The provisions also limit access to age information only, a limited 18 category of information. 19 The text of section 1798.83.5 and its legislative history show that the Legislature 20 understood the problem of age discrimination in the entertainment industry to be real, adopted the 21 provision to aid in solving that problem, and matched the restriction to the problem to be 22 addressed. Thus, if section 1798.83.5 is to be considered a speech regulation, it is a valid 23 commercial speech regulation. 24 25 26 27 7 This legislative history is attached to the declaration of the undersigned filed in support of this brief. Under Rule 201 of the Federal Rules of Evidence, the Court may take judicial notice of the legislative history of state statutes. Anderson v. Holder, 673 F.3d 1089, 1094, n.1 (9th Cir. 2012); Louie v. McCormick & Schmick Restaurant Corp., 460 F. Supp. 2d 1153, 1155, n.4 (C.D. Cal. 2006). Defendant respectfully requests that this Court take judicial notice of the relevant legislative history here. 28 10 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 16 of 17 1 2 CONCLUSION For the reasons set forth above, the Court should grant the Attorney General’s motion for 3 summary judgment and deny IMDb’s motion. 4 Dated: August 24, 2017 Respectfully Submitted, 5 XAVIER BECERRA Attorney General of California STEPAN A. HAYTAYAN Supervising Deputy Attorney General 6 7 8 9 /s/ Anthony R. Hakl ANTHONY R. HAKL Deputy Attorney General Attorneys for Defendant 10 11 12 SA2016104639 12793704.doc 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 11 Defendant’s Opposition/Opening Brief on Cross-Motions for Summary Judgment (3:16-cv-06535) Case 3:16-cv-06535-VC Document 79 Filed 08/24/17 Page 17 of 17 CERTIFICATE OF SERVICE Case Name: IMDb.com, Inc. v. Xavier Becerra No. 3:16-cv-06535 I hereby certify that on August 24, 2017, I electronically filed the following documents with the Clerk of the Court by using the CM/ECF system: DEFENDANT’S OPPOSITION/OPENING BRIEF ON CROSS-MOTIONS FOR SUMMARY JUDGMENT I certify that all participants in the case are registered CM/ECF users and that service will be accomplished by the CM/ECF system. I declare under penalty of perjury under the laws of the State of California the foregoing is true and correct and that this declaration was executed on August 24, 2017, at Sacramento, California. Tracie L. Campbell Declarant SA2016104639 12795364.doc /s/ Tracie Campbell Signature