ISP Lacks Standing to Sue Commercial Emailers Where it Exists Primarily to Bring Claims Against Them

In Beyond Systems, Inc. v. Kraft Foods, Inc., et al., Civil No. 08-409 (U.S. District Court, D. Maryland, order entered August 12, 2013), the U.S. District Court for the District of Maryland held that an Internet Service Provider (“ISP”) whose main objective was to sue commercial emailers under Maryland and California anti-spam laws did not have standing to bring such claims. The court stated the ISP was not “bona fide” because it did not function primarily and substantially as an ISP.  It also stated an injury a party brings upon itself is insufficient to create standing to sue.  Finally, the ISP lacked standing because it could not show an injury-in-fact, even though the law provided for statutory damages.

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