United States District Court, S.D. Florida
MEMORANDUM OPINION AND ORDER
L. ROSENBERG UNITED STATES DISTRICT JUDGE
CAUSE is before the Court on the Motion for Preliminary
Injunction and Memorandum of Law in Support [DE
filed by Plaintiff, Compulife Software, Inc.
(“Compulife”). The Court has carefully reviewed
Compulife's Motion and all pertinent portions of the
record. In addition, the Court held an evidentiary hearing on
March 30 and 31, 2017, and is otherwise fully advised in the
premises. The Court now issues this Memorandum Opinion and
Order setting forth its findings of fact and conclusions of
law. For the reasons set forth below, Compulife's Motion
an action for misappropriation of trade secrets and copyright
infringement. See DE 1; DE 24. In the Motion
presently before the Court, Compulife-a software company
whose products allow insurance agents and consumers to obtain
quotes for term life insurance-seeks preliminary injunctive
relief to prevent further misappropriation and infringement.
See DE 31.Having failed to establish that it will
suffer irreparable injury unless the injunction issues,
Compulife is not entitled to preliminary injunctive relief.
FINDINGS OF FACT
Court finds that the following facts have been established by
a preponderance of the evidence.
Compulife and Term4Sale
Barney is the president and majority shareholder of
Compulife. DE 70 ¶ 1; Hrg. Tr. Vol. 1 at 17:13-14.
Compulife is the creator and manufacturer of the Compulife
Quotation System, a software program that allows individuals
to compare term life insurance products and rates. DE 70
¶¶ 3-4; Hrg. Tr. Vol. 1 at 17:15-18. Compulife
itself does not sell insurance. DE 70 ¶ 4; Hrg. Tr. Vol.
1 at 17:19-20.
software includes both host-based software residing on a
server and web-based software consisting of HTML code. Hrg.
Tr. Vol. 1 at 17:21-18:13. The web-based HTML code allows an
individual to visit a website and enter certain
information-such as age, sex, and amount of insurance
desired-in order to request life insurance quotes. Hrg. Tr.
Vol. 1 at 18:4-25. The HTML code then submits that request to
the host-based software, which looks up the rates and product
information for various insurance companies, calculates
premiums, and produces quotes that are ultimately displayed
on the website. Hrg. Tr. Vol. 1 at 18:4-19:8.
purpose of the HTML code is to communicate with the
host-based software. Hrg. Tr. Vol. 1 at 27:2-6. To that end,
the HTML code contains specific variable names and variable
values created by Compulife, which are necessary to
communicate effectively with the host- based software in
order to generate quotes. Hrg. Tr. Vol. 1 at 20:23-22:13;
Hrg. Tr. Vol. 2 at 43:13-44:5.
server on which the host-based software resides also houses
Compulife's database of digital information about the
term life insurance market, products, and rates. Hrg. Tr.
Vol. 1 at 27:7-17, 28:4-25. Compulife obtains this
information, including rate tables, from insurance companies,
but does not own this information. Hrg. Tr. Vol. 1 at 74:2-9.
This information is public and is provided to other companies
offering software that competes with Compulife's. Hrg.
Tr. Vol. 1 at 74:5-11; Hrg. Tr. Vol. 2 at 6:13-18.
Compulife enters this information into its software using
confidential and proprietary technology. Hrg. Tr. Vol. 1 at
28:4-9. Compulife compiles this information into a database
in a confidential manner and encrypts the database to prevent
reverse engineering. Hrg. Tr. Vol. 1 at 28:17-25; Hrg. Tr.
Vol. 2 at 44:6-45:13. For that reason, Compulife considers
the way it stores its information to be a trade secret. Hrg.
Tr. Vol. 1 at 74:2-5. The host-based software calculates
premiums and generates quotes by accessing this database of
information residing on the server. Hrg. Tr. Vol. 1 at
27:7-13, 30:11-31:4. Mr. Barney believes that Compulife's
quotes are unique due to the manner in which Compulife stores
this information and the procedures Compulife uses to
calculate premiums. Hrg. Tr. Vol. 2 at 6:19-21.
insurance company changes its rates, Compulife updates the
rate tables and other information within its database. Hrg.
Tr. Vol. 1 at 28:13-16, 31:5-19. This information is
constantly updated to reflect changes in the term life
insurance market. Hrg. Tr. Vol. 1 at 40:8- 13, 75:21-24. If
information is not timely updated, or if Compulife produces
an inaccurate quote for any other reason, Compulife's
customers-most of whom are insurance agents who use
Compulife's products daily to generate quotes for
individual consumers-immediately contact Compulife to
complain. Hrg. Tr. Vol. 1 at 76:7-24; Hrg. Tr. Vol. 2 at
has registered its software with the United States Copyright
Office. DE 70 ¶ 10; DE 70-1; Hrg. Ex. 79.
Compulife's “2010 HTML Source Code” was
registered on May 29, 2015 and assigned registration number
TX 8-106-364. DE 70 ¶ 10; Hrg. Tr. Vol. 2 at 42:3-10;
Hrg. Ex. 2; Hrg. Ex. 79.
addition to licensing its software, Compulife maintains a
website at www.term4sale.com (“Term4Sale”). Hrg.
Tr. Vol. 1 at 19:9-14. Term4Sale is a public website that
allows visitors to obtain life insurance quotes at no cost.
Hrg. Tr. Vol. 1 at 19:14-15. Term4Sale also provides visitors
with a list of insurance agents, all of whom are Compulife
customers, to contact if the visitors are interested in
purchasing life insurance. Hrg. Tr. Vol. 1 at 19:16-20.
Term4Sale generates life insurance quotes using
Compulife's web-based HTML code, host-based software, and
database of information in the manner described above. Hrg.
Tr. Vol. 1 at 19:11-14.
competes with several companies that offer life insurance
quotes online, including Ninja Quote (which joined the market
in 2016) and Nerd Wallet. Hrg. Tr. Vol. 1 at 74:12-75:7. Like
Compulife, these companies obtain rate tables from life
insurance companies and use them to calculate premiums that
appear on their websites. Hrg. Tr. Vol. 1 at 75:8-20.