There's been an interesting and ongoing saga occurring between two companies: Facebook, the world's largest social network, and Power.com, a social media aggregator that has significant traction overseas and launched its U.S. version late last year. Facebook threw a wrench into Power.com's gears when it filed a lawsuit claiming that it used Facebook data without authorization.
The result? A heated debate over data ownership that ended with Power.com removing access to Facebook. But the battle over user data isn't over, as Power.com has just filed a lawsuit in California court denying Facebook's allegations and counter-suing with claims of unfair competition.
Power.com, for those unfamiliar, allows you to log into all your social media accounts simultaneously via the Power.com interface. This means that you can use your MySpace, Twitter, LinkedIn, Orkut, and Hi5 accounts all at the same time. Facebook though, is noticeably absent from the list of supported accounts due to its December lawsuit with the social networking giant. Their big objection was the storage of user credentials on Power.com, and in turn they requested that the service use a solution involving Facebook Connect instead.
In today's twenty-three page lawsuit, Power.com lays out a case with several main points, the big one being that users own their own data and Facebook has no right to restrict that data from the user. The company also claims Facebook is participating in anti-competitive practices. From today's lawsuit:
"The bulk of the Facebook site is comprised of “User Content.” This “User Content” includes “photos, profiles, messages, notes, text, information, music, video, advertisements, listings, and other content that [users] upload, publish or display” on the Facebook site. This data is not owned by Facebook. It is owned by the user. Although users’ ownership of their own data seems self-evident, and it has been one of our core principles since Power was founded, Facebook historically has been criticized for not respecting its users’ rights to ownership of their own content – and that is the crux of the dispute. Facebook is attempting to prevent Power from providing tools to Internet users that allow those users to exercise ownership and control over their own data. Facebook is also attempting to stifle the development of Power’s innovative new technologies that will liberate Internet users from proprietary restrictions that prevent them from controlling access to their own data."
The rest of the lawsuit deals with two things: denying allegations that Facebook made in its December lawsuit and a series of demands, including that the court take action against what it calls "unlawful and anticompetitive" practices by Facebook. Here's Power.com's full list of demands:
1. That plaintiffs take nothing by the Complaint, and that judgment be entered against Plaintiffs and in favor of Power
2. That Power and Vachani be awarded costs of suit incurred in defending this action, including reasonable attorneys’ fees;
3. That Facebook be permanently enjoined from the unlawful and anticompetitive practices identified herein;
4. That Power and Vachani be awarded monetary damages for the injuries caused by Facebook’s unlawful and anticompetitive practices;
5. That such damages be tripled under 15 U.S.C. § 15(a);
6. That Power and Vachani be awarded reasonable attorneys’ fees, expenses and costs associated with prosecuting their claims; and
7. For such further relief as this Court deems necessary, just or proper.
Clearly, the move is important for Power.com - their service is far less useful without access to the biggest social network around. But how will Facebook respond? Will this be thrown out, settled in the boardroom, or go to court? And does Power.com really have a chance to win with its case?
We're going to analyze the entire lawsuit carefully and give you our assessment, but in the meantime, if you have a thought on this lawsuit, whether it's got merit, and how Facebook will respond, we'd love for you to voice your opinion in the comments. Here's the lawsuit in its entirety if you would like to read it: