Paramount Pictures Corporation v. ReplayTV, Inc., Joint Stipulation ...

12345678910111213141516171819202122232425262728information is not presently saved by ReplayTV, it would cost approximately $600a day for Defendants to preserve the data. Id. at 28. 39/Nonetheless, in an effort to resolve this discovery dispute, Defendantsoffered to undertake to collect and preserve this data — for a reasonable period oftime on an anonymous basis. Plaintiffs flatly rejected this offer. Given theincompleteness of this data and the cost to collect it, Defendants believe that a jointtelephone survey of users, as Defendants describe below, would provide moreuseful information for the Court, while also protecting users’ privacy rights.5. The Information Plaintiffs Have Requested Would Invade Consumer’ sLegitimate Rights Of Privacy.Even assuming arguendo that the Court could enter an order compellingDefendants to write and issue new software to create new data, the order Plaintiffsrequest would be infirm as a violation of the privacy rights and expectations ofReplayTV’ s customers. Invasion of these rights without notice will not only harmconsumers, who are not before the Court, it may also generate a serious backlashand public relations problems for ReplayTV. This could directly affect its goodwillin the marketplace and ability to compete against Plaintiffs’ TiVo affiliate.Customer privacy rights in information delivered over the Internet is amatter of substantial and genuine public concern. In June 1998, the FederalTrade Commission reported to Congress its concerns and recommendations fordealing with privacy of consumer’ s information online. The FTC found thatstudies “ have recognized certain core principles of fair information practice” thatare “ widely accepted as essential to ensuring that collection, use, anddissemination of personal information are conducted fairly and in a mannerHowever, to process the data by sorting and cross-correlations of informationthat Plaintiffs have demanded would cost as much as $264,000 more fordevelopment. Pignon Decl. 27. Accordingly, Defendants have offered only tosave the raw data as it is presently received from the my.replay.com service.39/52