Editing NXIVM Corp. v. Ross Institute (section)

==Facts and procedural history==
NXIVM was a sex trafficking organization that posed as a [[multi-level marketing]] company that offered a life-improvement seminar called the "Executive Success" program (ESP). ESP claimed to train participants in a method NXIVM claimed would improve communication and decision-making.<ref name="Casenotes2007"/><ref name=Parlato15>{{citation|author=Parlato, Frank|date=27 Nov 2015|title=The Bronfman/Raniere Cult Demands Investigation|newspaper=Niagara Falls Reporter|url=http://niagarafallsreporter.com/Stories/2015/NOV27/bron.html}}</ref> As part of the ESP seminar, NXIVM provided a training manual to paying participants who signed non-disclosure agreements that they would not discuss or release the manual to non-participants.<ref name=justia/><ref name="Casenotes2007"/>

As executive director of the nonprofit organization the Ross Institute, [[Rick Alan Ross|Rick Ross]] maintained two websites to provide information to the public about [[cults]] and other controversial groups that had complaints made against them for allegedly using deception and undue influence to manipulate participants.<ref name=Pankaj>{{citation|author=Pankaj, S|year=2005|title=E-commerce|publisher=APH Publishing|isbn=8176488054|pages=207–208|url=https://books.google.com/books?id=-V4ot1Rbt9gC&q=%22rick%20ross%22&pg=PA207}}</ref> Ross received the NXIVM manual through a former ESP participant and commissioned reports from two mental health professionals who analyzed and critiqued the manual, quoting sections of it to support their analysis.<ref>{{citation|last1=Odato|first1=James M.|last2=Gish|first2=Jennifer|date=February 24, 2012|title=Secrets of NXIVM|newspaper=Times Union|url=http://www.timesunion.com/local/article/Secrets-of-NXIVM-2880885.php}}</ref> The reports, which referred to the program as "expensive brainwashing",<ref name="Maclean's">{{citation|title=How to lose $100 million|last=Köhler|first=Nicholas|year=2010|magazine=Maclean's|volume=123|issue=35|page=58|url=http://www.macleans.ca/economy/business/how-to-lose-100-million/|access-date=June 5, 2016|archive-date=May 1, 2018|archive-url=https://web.archive.org/web/20180501045624/http://www.macleans.ca/economy/business/how-to-lose-100-million/|url-status=dead}}</ref><ref name=Parlato15/> were made available to the public on Ross’s websites.<ref name=Berkeley>{{citation|title=NXIVM Corp v. Ross Institute|date=January 2005|journal=Berkeley Technology Law Journal|volume=20|issue=1, 67|page=735|doi=10.15779/Z38K40D|url=http://scholarship.law.berkeley.edu/cgi/viewcontent.cgi?article=1556&context=btlj|author1=[[Berkeley Technology Law Journal]]}}</ref><ref name=Hochman>{{citation|title=A Forensic Psychiatrist Evaluates ESP|date=February 2003|publisher=Cult Education Institute|url=https://culteducation.com/group/907-nxivm/6047-a-forensic-psychiatrist-evaluates-esp.html}}</ref> About 17 of 500 pages were republished on Ross's websites in the context of the critiques.<ref name="CrewsButtler2006">{{cite book|author1=Kenneth D. Crews|author2=Dwayne K. Buttler|title=Copyright law for librarians and educators: creative strategies and practical solutions|url=https://books.google.com/books?id=_s_e_YhjQsQC&pg=PA58|year=2006|publisher=ALA Editions|isbn=978-0-8389-0906-5|page=58}}</ref><ref name=Martin1>{{citation|title=A Critical Analysis of the Executive Success Programs Inc.|date=February 2003|publisher=Cult Education Institute|url=https://culteducation.com/group/907-nxivm/5969-a-critical-analysis-of-the-executive-success-programs-inc.html}}</ref><ref name=Martin2>{{citation|title=Robert Jay Lifton's eight criteria of thought reform as applied to the Executive Success Programs |date=February 2003|publisher=Cult Education Institute|url=https://culteducation.com/group/907-nxivm/5980-robert-jay-liftons-eight-criteria-of-thought-reform-as-applied-to-the-executive-success-programs.html}}</ref>

In 2003, NXIVM filed a federal trade-secrets lawsuit against the Ross Institute, Rick Ross, the authors of the reports, and the former ESP participant who provided the manual to them, alleging copyright infringement for their use of quotations from NXIVM's "secret" manual in the online critical reports of the manual and training program, arguing that the [[fair use doctrine]] should not apply since the manual had been obtained through the violation of a nondisclosure agreement, constituting [[bad faith]].<ref name=Parlato15/>

Finding that the reports were likely protected by the fair use doctrine, the district court denied NXIVM's motion seeking a preliminary [[injunction]] directing Ross to remove the material from his websites. NXIVM appealed the decision to the [[United States Court of Appeals for the Second Circuit]].<ref name=Berkeley/>