Carreon v. Inman et al

Filing 22

RESPONSE (re 20 Ex Parte Application For Temporary Restraining Order and Order to Shaw Cause Re Preliminary Injunction ) filed byIndiegogo, Inc.. (Attachments: # 1 Declaration of Ragesh K. Tangri, # 2 Exhibit A to Tangri declaration, # 3 Exhibit B to Tangri declaration, # 4 Exhibit C to Tangri declaration, # 5 Exhibit D to Tangri declaration, # 6 Exhibit E to Tangri declaration, # 7 Exhibit F to Tangri declaration, # 8 Exhibit G to Tangri declaration, # 9 Exhibit H to Tangri declaration, # 10 Declaration of Slava Rubin, # 11 Exhibit A to Rubin declaration)(Novikov, Eugene) (Filed on 7/1/2012)

DocuSign Envelope ID: C977D34B-EA91-4761-A8B2-7C0EA2860D08

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DURIE TANGRI LLP
RAGESH K. TANGRI (SBN 159477)
[e-mail]
MARK A. LEMLEY (SBN 155830)
[e-mail]
EUGENE NOVIKOV (SBN 251316)
[e-mail]
217 Leidesdorff Street
San Francisco, CA 94111
Telephone: [phone]
Facsimile: 415-236-6300
Attorneys for Defendant
INDIEGOGO, INC.

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IN THE UNITED STATES DISTRICT COURT

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FOR THE NORTHERN DISTRICT OF CALIFORNIA

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CHARLES CARREON,

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SAN FRANCISCO DIVISION
Case No. 3:12-cv-03112-EMC
Plaintiff,

DECLARATION OF SLAVA RUBIN

v.
MATTHEW INMAN; INDIEGOGO, INC.;
NATIONAL WILDLIFE FEDERATION;
AMERICAN CANCER SOCIETY; AND DOES
1-100,
Defendants.

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DEFCLARATION OF SLAVA RUBIN / CASE NO. 3:12-CV-03112-EMC

DocuSign Envelope ID: C977D34B-EA91-4761-A8B2-7C0EA2860D08

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I, Slava Rubin, declare as follows:
1.

I am the founder and Chief Executive Officer of Indiegogo.com (“Indiegogo”).

2.

Indiegogo operates a “crowdfunding” website that allows users to raise money for projects

of their choosing by soliciting contributions from other Indiegogo users. Typical projects seeking
funding are independent films, small businesses needing money for an expansion or improvement, and
individuals in need (such as people with large medical bills).
3.

A user who wishes to create a contribution campaign may submit a campaign description,

set a campaign end date, and define a funding goal. In order create a campaign, the user must agree to
the Indiegogo terms and conditions, which are publicly available at
http://www.indiegogo.com/about/terms. A true and correct copy of the terms and conditions is attached
to this declaration as Exhibit A.
4.

Contributions to an Indiegogo campaign may be made in two ways. Users may contribute

on the Indiegogo website using a credit card. In this case, Indiegogo collects the money and disburses it
to the user after the completion of the campaign. Alternatively, users may contribute through a thirdparty payment processor called PayPal. In the latter case, PayPal transfers the money directly to the
user’s PayPal account.
5.

Under the terms and conditions, contributions to a campaign run by an individual

Indiegogo user who is not a registered § 501(c)(3) are subject to an Indiegogo platform fee of 9% of the
total contributed amount, with a 5% rebate if the project hits its funding goal. For contributions made by
credit card, a 3% payment processing fee is also charged. Paypal charges its own payment processing fee
for transactions through its service, which Indiegogo believes to also be around 3%. Paypal transfers the
Indiegogo platform fee portion of contributions made through its service to Indiegogo at the time of the
transaction.
6.

Pursuant to the terms and conditions, the money contributed using a credit card is

disbursed to the user within five business days of the campaign end date, less Indiegogo’s platform fee
and the processing fee, plus the 5% platform fee rebate (from both credit card and Paypal transactions), if
applicable.
7.

The campaign-specific content of an Indiegogo fundraising campaign, including the
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DECLARATION OF SLAVA RUBIN / CASE NO. 3:12-CV-03112-EMC

DocuSign Envelope ID: C977D34B-EA91-4761-A8B2-7C0EA2860D08

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content on the “project description” page, is generated by the user who initiates the campaign. The user
uploads or enters the content into the Indiegogo website, and presses a button to publish the campaign on
the website. Indiegogo does not approve the content before it appears on the website and does not review
it unless specifically requested by the user who initiates the campaign.
8.

The “BearLove Good. Cancer Bad.” Indiegogo campaign was created by a user with the

user name “oatmeal.” I understand that the “oatmeal” account belongs to Matthew Inman.
9.

The campaign end date selected by Inman for “BearLove Good. Cancer Bad.” was

Monday, June 25, 2012. Accordingly, contributions from users ceased to be accepted at 11:59 pm
Pacific Standard Time on June 25.
10.

When the “BearLove” campaign ended on June 25, 2012, it had raised a total of $220,024.

Of that amount, $123,803 was contributed through PayPal. Inman’s share of that money – believed to be
roughly $108,946.64, depending on the exact amount of PayPal’s payment processing fee – is not and
has never been in Indiegogo’s possession. The remaining $96,221.00 was contributed by credit card.
Inman’s share of that money is $84,674.48. To that amount, Indiegogo will add the 5% fee rebate for
reaching the project’s funding goal, which amounts to $11,001.20. The sum of Inman’s share of the
credit card contributions and the fee rebate is $95,675.68. At Mr. Inman’s request, on June 29, 2012, half
of that amount is being sent by check to the American Cancer Society, and half of that amount is being
sent by check to the National Wildlife Fund. Indiegogo will retain a total of $8,800.96 in platform fees.
11.

Pursuant to its ordinary practice, Indiegogo has maintained records of which Indiegogo

users donated to the “BearLove” campaign, and how much was donated by each user.
I declare under penalty of perjury under the laws of the United States that the foregoing is true
and correct. Signed on June 29, 2012, in New York, New York.

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__________________________________________
Slava Rubin

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DEFENDANT INDIEGOGO, INC.’S MOTION TO EXTEND TIME TO ANSWER PLAINTIFF’S FIRST
AMENDED COMPLAINT FOR INJUNCTIVE RELIEF TO IMPOSE CONSTRUCTIVE CHARITABL /
CASE NO. CASENUMBER