Wednesday, August 30, 2006 ILR Home Page
Weekly Alert
August 30, 2006
21st Annual Intellectual Assets and Technology Law Institute
Latest News
  • Intellectual Property
  • Internet Commerce
  • Freedom of Speech
  • Telecommunications
  • Privacy & Security
  • Taxation
  • Criminal Liability
    Latest Cases
    Latest Pleadings, Motions, & Briefs
    Submissions Welcome
    Subscription Information
    • 21st Annual Intellectual Assets and Technology Law Institute
    ILR Advisory Board member Ray Nimmer will be speaking at the 21st Annual Intellectual Assets and Technology Law Institute, to be held October 5 - 6, in Irving, Texas. Contact the Texas Institute of Continuing Legal Education for details.

    Latest News
    INTELLECTUAL PROPERTY
    Method for Verifying Digital Wallet User Not Infringed by Web Access Technology
    A method patent for checking the identity of a credit card user against online records to verify access privileges does not reach authentication protocols used by web sites to verify account access, the U.S. District Court for the Southern District of Texas ruled Aug. 4. The court cleared Hewlett-Packard Corp. and Microsoft Corp. of patent infringement in a case involving a method patent for digital wallet technology (U.S. Patent No. 5,276,311). E-Pass Technologies, Inc. v. Microsoft Corp., 2006 ILRWeb (P&F) 2453. Read more...
    Other Intellectual Property news:
  • Microsoft Cybersquatting Actions Take Aim at Persons Chasing Web Traffic, Ad Dollars
  • PTO Seeks Public Comment on Five-Year Strategic Plan
  • Barney the Dinosaur Accused of Copyright Bullying
    • Search ILR's Intellectual Property database

    INTERNET COMMERCE
    Fed Issues Final Rule on Payroll Cards, Interim Rule on Electronic Fund Transfers
    The Federal Reserve Board Aug. 24 issued a final rule establishing that payroll card accounts fall under the agency's consumer protection rule on electronic fund transfers, but also giving banks leeway in how they handle transaction reports to card users. The final rule amends Regulation E, which implements the Electronic Fund Transfer Act (EFTA), and the official staff commentary to the rule. The rule will take effect July 1, 2007. The Fed also asked for comment on an interim final rule designed to clarify Regulation E's requirements governing merchants' electronic collection of insufficient funds fees. Read more...
    Other Internet Commerce news:
  • 'Money Now, Terms Later' EULA Cases Distinguished in Cell Phone Warranty Dispute
  • Hong Kong Moves Forward with Draft Anti-Spam Measure
  • Proposed FAR Change Mandates Purchase of IPv6 Capable IT Products
  • E-Signature First, Contents Later Deemed Valid
    • Search ILR's Internet Commerce database

    FREEDOM OF SPEECH
    Assertion That Web Site Did Not 'Author' Libel Held Insufficient to Gain CDA Immunity
    Defamation defendants' contentions that they did not "author" the web site postings underlying a defamation claim were insufficient to permit the lower court to summarily conclude that the defendants were entitled to immunity under Section 230 of the Communications Decency Act, the U.S. Court of Appeals for the Eleventh Circuit held Aug. 1 in an opinion designated as unpublished. Whitney Information Network, Inc. v. Xcentric Ventures, LLC, 2006 ILRWeb (P&F) 2411. Read more...
    Search ILR's Freedom of Speech database

    TELECOMMUNICATIONS
    FCC to Question Verizon, BellSouth on New Surcharges for Broadband Service
    The Federal Communications Commission intended to issue notices of inquiry to Verizon and BellSouth asking about a new surcharge on their digital subscriber line (DSL) service that is virtually the same as the current universal service fee, sources said Aug. 25. But late Aug. 25, BellSouth announced that it was eliminating the fee on its DSL service, effective immediately. The new surcharge was slated to go into effect just as the carriers no longer are required to assess a universal service fee on their DSL service. In August 2005, the commission voted to classify DSL service an "information service," similar to cable modem service, thereby exempting it from universal service obligations. Read more...
    Search ILR's Telecommunications database

    PRIVACY & SECURITY
    AOL Software Labeled 'Badware' in Report Issued by Watchdog Group
    A watchdog group has identified a software program released by America Online, Inc. as "badware" because it installs a number of applications on a computer without telling the user. The group said that "AOL 9.0," which is free, is bundled with a number of additional applications, including "RealPlayer," "QuickTime," and "Viewpoint Media Player." "During the installation process, the user is never clearly notified that AOL will be installing these programs," said StopBadware.org, a software watchdog group, in a preliminary report released Aug. 28. Read more...
    Other Privacy & Security news:
  • Group Says Judge Who Halted NSA Program May Have Had Conflict from ACLU Donation
  • Damages Under Stored Communications Act Should be Computed on 'Per Violation' Basis
  • FTC Urges Lawmakers to Use Caution in Creating Privacy, Security Legislation
  • AT&T Services Sues 25 'John Doe' Pretexters for Accessing 2,500 Customers' Bill Records
  • NIST Issues Draft Windows XP Security Guide
  • World Privacy Forum Seeks FTC Investigation of AOL
  • More Than 50% of Businesses Had Spyware Attack in First Quarter, Survey Says
  • Firms Better at Breach Detection Than Prevention; Tech Costs Still Barrier
  • FBI Loses FOIA Spat for Failure to 'Google'
  • California Lawmakers OK Bill to Warn Consumers to Protect Wireless Computer Networks
  • German Report Asks if EU Data Retention Plan Clashes with National Data Privacy Law
    • Search ILR's Privacy & Security database

    TAXATION
    Software Group Supports Online Fee Break, Seeks Deduction for Maintenance Contracts
    A national group of software executives Aug. 21 said manufacturing tax relief for some online software use fees is welcome, but asked that online software maintenance contracts be granted the deduction as well. In an Aug. 21 letter to the Internal Revenue Service, the Software Finance & Tax Executives Council said it believes IRS took the right approach to the difficult question of whether fees for the online use of software are eligible for a domestic manufacturing deduction under new tax code Section 199. Read more...
    Other Taxation news:
  • SSUTA Panel Approves, Forwards Ruling on Multiple Points of Use
  • Company Seeks Interpretation in SSUTA on How Amnesty Applies to Predecessors
  • Maine Tax Reimbursement on Equipment, Communications Firm Tax Changes, Now Effective
  • Florida DOR Advises Telephone Switching Device Not Taxable Embedded Software
    • Search ILR's Taxation database

    CRIMINAL LIABILITY
    Hacker Gets Three Years for Using 'Botnet' to Damage Hospital, Government Computers
    The U.S. District Court for the Western District of Washington on Aug. 18 sentenced a California man to 37 months in prison followed by three years of supervised release for his role in a scheme to commit computer fraud by hijacking hospital, Defense Department, and school system computers to download malicious code and send adware to other computers. United States v. Maxwell (Government's Sentencing Memorandum), 2006 ILRWeb (P&F) 2428. Read more...
    Other Criminal Liability news:
  • Computer Hacker Charged with Deleting Files of Patients from Clinic in California
    • Search ILR's Criminal Liability database

    Latest Cases
  • Arista Records, L.L.C. v. Tschirhart, 2006 ILRWeb (P&F) 2459 [WD Tex] (Use of "wiping" software to remove data from computer's hard drive—and then attempting to delete that software—warrants sanctions)
  • Broadband Over Power Line Systems (Final Rule), 2006 ILRWeb (P&F) 2447 [FCC] (Commission amends Part 15 of its rules regarding the unlicensed operation of Access Broadband over Power Line systems)
  • Davis v. Department of Justice, 2006 ILRWeb (P&F) 2461 [DC Cir] (In FOIA dispute, judge chastises DOJ for failing to use Google to determine whether speakers recorded on an audiotape during an FBI investigation have since died)
  • E-Pass Technologies, Inc. v. Microsoft Corp., 2006 ILRWeb (P&F) 2453 [SD Tex] (Method for verifying digital wallet user not infringed by web access technology)
  • Hawaiian Airlines, Inc., In re, 2006 ILRWeb (P&F) 2451 [D Haw] (Damages under Stored Communications Act should be computed on 'per violation' basis)
  • Netflix, Inc. v. Blockbuster, Inc., 2006 ILRWeb (P&F) 2449 [ND Cal] (Antitrust counterclaims against online movie rental company may proceed)
  • New York, People of v. Corletta, 2006 ILRWeb (P&F) 1689 [NY Just Ct] (E-signature first, contents later deemed valid)
  • Quon v. Arch Wireless Operating Company, Inc., 2006 ILRWeb (P&F) 2457 [CD Cal] (No liability under Stored Communications Act for disclosure of employee's text messages)
  • Schacter v. Circuit City Stores, Inc., 2006 ILRWeb (P&F) 1909 [D Mass] ('Money now, terms later' EULA cases distinguished in cell phone warranty dispute)
  • United States v. Steiger, 2006 ILRWeb (P&F) 2463 [MD Ala] (No basis to conclude that computer hacker was acting as government informant so as to allow for discovery as to whether the FBI concealed information)
  • Whitney Information Network, Inc. v. Xcentric Ventures, LLC, 2006 ILRWeb (P&F) 2411 [11th Cir] (Assertion that web site did not 'author' libel held insufficient to gain CDA immunity)
  • z4 Technologies, Inc. v. Microsoft Corp., 2006 ILRWeb (P&F) 2455 [ED Tex] (Court in patent dispute orders $25 million in enhanced willfulness damages and $2.3 million in costs and attorneys' fees against Microsoft)
    • Search ILR's Cases database

    Latest Pleadings, Motions, & Briefs
  • America Online, LLC (Complaint and Request for Investigation, Injunction, and Other Relief), In re, 2006 ILRWeb (P&F) 2426 [FTC] (World Privacy Forum files a complaint with the FTC regarding AOL's release of portions of its users' search query histories)
  • AT&T Services, Inc. v. Does (Complaint), 2006 ILRWeb (P&F) 2424 [WD Tex] (AT&T services sues 25 'John Doe' pretexters for accessing 2,500 customers' bill records)
  • Frankel v. Lyons Partnership L.P. (Complaint), 2006 ILRWeb (P&F) 2430 [SD NY] (Web publisher of Barney parody seeks declaratory relief against owners of the copyrighted children's character)
  • United States v. Maxwell (Government's Sentencing Memorandum), 2006 ILRWeb (P&F) 2428 [WD Wash] (Hacker gets three years for using 'botnet' to damage hospital, government computers)
    • Search ILR's Pleadings database

    Submissions Welcome
    Have you got a case or a pleading you'd like to see highlighted? Are you interested in submitting an article for inclusion in ILR's "Analysis & Perspective" section? Please send submissions to Mark Smith, Managing Editor, Pike & Fischer Internet Law & Regulation, 1010 Wayne Ave., Suite 1400, Silver Spring, MD 20910-5600; tel. 800-255-8131 x265, fax 301-562-1521, or e-mail msmith@pf.com.

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