Surveillance Law Applies to Cruise Line, Judge Says in Ruling for US Justice Dept.
Miami-based Royal Caribbean, Judge Beryl Howell in Washington wrote, "provides passengers the ability to access the internet in order to, among other things, effectuate money transfers, thus making the company a provider" of electronic communication services.
March 21, 2018 at 02:14 PM
4 minute read
Royal Caribbean Cruises Ltd. can be classified as an internet service provider that must disclose to prosecutors certain subscriber and transactional records, a federal judge in Washington ruled this month, reviving the U.S. Justice Department's effort to acquire the web data.
U.S. District Judge Beryl Howell's ruling, dated March 8, overturned a federal magistrate decision that had rejected the government's application for the records. Court papers in the case in U.S. District Court for the District of Columbia do not reveal the nature of the criminal investigation. Portions of Howell's ruling were redacted.
A team from Wilmer Cutler Pickering Hale and Dorr represented Royal Caribbean as an interested party. Wilmer partner Jonathan Cedarbaum, a cyber and privacy specialist who represented the cruise line, wasn't immediately reached for comment Wednesday.
Prosecutors in July first sought an order forcing Royal Caribbean to disclose “subscriber and transactional records” tied to web-based money transfers over the span three days on a Florida-based voyage. The requested information included subscriber and usernames, email addresses, credit card and bank numbers and records of web session times.
Royal Caribbean contracts with an internet service provider that provides satellite connectivity to passengers on the vessel. An internal communication network on the ship connects a passenger's mobile device to the web through an antenna on the ship. A private IP address is assigned communication between a device and the ship's internal network. Royal Caribbean charges passengers to access the web.
The case confronted the definition of an “electronic communication service” under the Stored Communications Act, which Congress adopted in 1986 as part of the Electronic Communications Privacy Act. Prosecutors use the law to compel a service provider to turn over customer records and contents of electronic communication.
Magistrate Judge Deborah Robinson in Washington, ruling against the government last year, concluded Royal Caribbean is neither a “provider of electronic communication service” nor a “provider of remote computing service.” Howell overturned that finding, and she granted the government's application for subscriber records.
Miami-based Royal Caribbean, Howell wrote, “provides passengers the ability to access the internet in order to, among other things, effectuate money transfers, thus making the company a provider” of electronic communication services.
Justice Department lawyers, in their objection to Robinson's order, had argued that a company can be considered a “provider” of electronic communication services” regardless of the company's primary business or function.”
Howell said Royal Caribbean, and not a financial service provider, “likely is the only entity” from which the government could obtain the requested records. Any government demand for information from a financial services provider “could identify at most the particular ship from the [redacted] acted, not the particular persons who executed the funds transfers in question,” Howell wrote.
Royal Caribbean, according to court records, did not oppose the Justice Department's position that the company was an electronic communication services provider under the Stored Communications Act. The company's lawyers at Wilmer Hale noted the stored communications law contains a “broad definition” of electronic communication services.
The cruise line's attorneys said in a footnote that the company was not taking a position on whether the Stored Communications Act would “would reach records that pertain to a non-U.S.-based guest on a voyage that never entered U.S. territory, including U.S. territorial waters.”
The U.S. Supreme Court this term is exploring the international reach of the Stored Communications Act in the case United States v. Microsoft. A team from Orrick, Herrington & Sutcliffe is arguing against a U.S. warrant targeting records stored on a server in Ireland.
A ruling that Royal Caribbean was not an electronic communication services provider could have compelled prosecutors to obtain subscriber information “as ordinary business records simply using a grand jury subpoena.”
“This is a focused request that does not seek all the records pertaining to any [Royal Caribbean] passenger's use of the Target IP address over the duration of a cruise,” Howell wrote.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllAm Law 100 Lateral Partner Hiring Rose in 2024: Report
Trending Stories
- 1The Lawyers Waging the Legal Fight Against the Trump Administration
- 2McDermott's Onetime London Leader Headed to Pillsbury
- 3A&O Shearman To Lose Another Five Lawyers to EY
- 4Pearl Cohen Enters San Francisco Market Via Combination With IP Boutique
- 5'Incredibly Complicated'? Antitrust Litigators Identify Pros and Cons of Proposed One Agency Act
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250