Reddit's move to charge for API access has prompted moderators of high-profile subreddits to go private or take action to block ad revenue in protest. However, a recent dismissal of a lawsuit against the platform is a stark reminder of the limits of those who run Reddit's communities.
If the name Jaime Rogozinski doesn't ring a bell, you might recall the subreddit he started in 2012. WallStreetBets helped launch the meme stock phenomenon during the height of the pandemic, and in March 2020, Rogozinski applied to trademark "WallStreetBets" when the community reached 1 million subscribers. The next month, Reddit ousted him as moderator as he sought to consolidate his hold on what he saw as a growing, profitable brand he created.
Rogozinski sued Reddit seeking damages of at least $1 million, but his case was dismissed on Tuesday by US District Court Judge Maxine Chesney, Reuters reports.
Rogozinski's efforts on the WallStreetBets subreddit doesn't mean much in a legal sense, the judge says. To own a trademark, you have to be "the first to actually use the mark in the sale of goods or services." But of all the things Rogozinkski did to grow subreddit, "none constitutes a use in commerce," the ruling says.
Judge Chesney says Rogozinski could try to amend his complaint by Aug. 11, although it remains unclear if Rogozinski will do so. "While we are disappointed with today's ruling, Mr. Rogozinski remains confident and committed to vindicating his rights," Rogozinski's lawyer said in a statement provided to Reuters.
Reddit, meanwhile, called the trademark effort a "transparent attempt [by Rogozinkski] to enrich himself," according to Reuters, which said Reddit fought back to "prevent consumer confusion, preserve goodwill, and let people in the r/WallStreetBets subreddit decide who should guide it."
Reddit arguing in favor of community control appears ironic in light of its recent troubles. In a bid to keep site scraping under control in the age of large language models, Reddit recently announced plans to charge for third-party access to its API.
API access allows developers to create Reddit clients with unique interfaces and additional features of their choice, using the Reddit API to populate them with subreddit information, posts, comments, and user profiles. But Reddit handles a lot of data, and the fees it was proposing for API access were exorbitant. The developer behind Apollo, for example, said it would cost him $20 million per year. The company has made exceptions to the API fees for accessibility and critical apps, including Pushshift, but Apollo's developer decided to shut down the app.
The community backlash was significant, with mass subreddit blackouts and Reddit removing moderators who refuse to cooperate. Among the subreddits that went dark for a time waas r/WallStreetBets.