[1] During the 1990s, plaintiff Regas Christou founded several nightclubs in the Denver area, comprising the South of Colfax Nightlife District (known as “SOCO”).
Christou filed a complaint to the District Court of Colorado seeking damages, suing Beatport for nine claims including unlawful tying in, attempted monopolization, and theft of a trade secret—the MySpace profile credentials used for connecting his SOCO clubs to DJs.
[1] To determine whether plaintiff’s MySpace profile was in fact a trade secret, the court consulted the analysis presented in Colorado Supply Co. v. Stewart, 797 P.2d 1303, 1306-07 (Colo. App.
[1] Moreover, because Roulier was aware of the password protection of the profile and did not reconstruct his own MySpace friend list to promote DJs, the court ruled that Beatport (Roulier) had knowingly misappropriated the trade secret when it used plaintiffs’ MySpace account to promote his competing nightclub as well as Beatport, citing the analysis used in Gates Rubber Co. v. Bando Chemical Indus.
The court also considered the public use of the trade secret, as Beatport had promoted itself using the plaintiff's MySpace profile, as grounds for Roulier's knowing of improper acquisition.
[1] The court also ruled in favor of the plaintiff's claim that Beatport could be charged with attempted monopoly in the market for A-list DJ live performances.
At the time of the ruling, Roulier and his club Beta controlled over half of the Denver metro area market for live performance by A-list DJs, and showed specific intent to monopolize and further such a monopoly in using anticompetitive and predatory conduct.
[7] The commentary surrounding this case has been careful to avoid the affirmative declaration that Christou's friends list was a trade secret.
The list envisioned that businesses would soon come to terms with the increasing importance of corporate social media account ownership policies, and that there would be fewer such disputes.