Best Practices for Private Fund Advisers to Manage the Risks of Big Data and Web Scraping

On April 13, 2017, craigslist obtained a judgment against RadPad, a third party that collected data through automated means from its site. The $60.5‑million judgment was based on various claims relating to RadPad’s use of sophisticated techniques to evade detection and harvest content from craigslist’s site, as well as distribution of unsolicited commercial emails to craigslist users to market RadPad’s own apartment rental listing service. The case highlights some of the issues faced by persons, such as hedge fund managers, who collect – or engage others to collect – data through automated means for commercial purposes. In a guest article, Proskauer partners Robert G. Leonard, Jeffrey D. Neuburger and Joshua M. Newville provide an overview of big data and web scraping; outline potential sources of liability to hedge fund managers that collect big data; and describe best practices for navigating several areas of potential liability. See also “Tips and Warnings for Navigating the Big Data Minefield” (Jul. 13, 2017).

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