Wednesday, November 8, 2006		ILR Home Page

Weekly Alert November 8, 2006 Latest News Intellectual Property Internet Commerce Freedom of Speech Telecommunications Privacy & Security Taxation Jurisdiction & Procedure Criminal Liability Latest Cases Latest Pleadings, Motions, & Briefs CD Recording of Web Accessibility Audio Conference Now Available Subscription Information

Latest News INTELLECTUAL PROPERTY Transfer of Domain Equals 'Registration' for Purposes of Establishing ACPA Claim A vendor's alteration of domain name registration records to transfer ownership of the domain from a former client to the vendor amounts to "registration" of the domain for purposes of bringing a cybersquatting claim, the U.S. District Court for the Western District of Washington held Nov. 1. The vendor's alteration of the domain name records to reflect a new owner achieves the same result as if the vendor had registered the domain names in its own name, said the court. Christensen Firm v. Chameleon Data Corp., 2006 ILRWeb (P&F) 3007. Read more...

Other Intellectual Property news: Limited Display of Software at Trade Show No Bar to Trade Secret Protection EFF: Web Site, Motivational Workshops Misuse Digital Millennium Copyright Act Panelists Discuss Possible Solutions to Fix 'Poorly Defined' Software Patent System Use of Marks on Gripe Site Supports Discovery of Anonymous Posters' Identities Search ILR's Intellectual Property database

INTERNET COMMERCE As Consumers Become Creators, Regulating Online Interactions Warrants New Approach The idea of the digital consumer is changing as fast as technology progresses, and our understanding—both of consumer rights and emerging virtual relationships—must keep up with the times, panelists at the Federal Trade Commission's Tech-ade hearings agreed Nov. 6. In an effort to explore the ways in which convergence and the globalization of commerce impact consumer protection, the FTC organized the three-day Tech-ade conference as a venue for dialogue among business, technology, and government representatives. Read more...

Other Internet Commerce news: Forum Urges Universality for Internet Via Language, Rights, Security Realms Advocacy Groups Call on FTC to Investigate Internet Advertising Spam Firm, Director Fined $4.3 Million in First Australian Spam Act Prosecution Sprawling Net Governance Event Produces Single Conclusion: More Talks Through 2010 Major Adware Distributor Zango Agrees to Pay $3 Million, Settle FTC Accusations Marketer Settles Charges of CAN-SPAM Act Violations CFAA Authorization Ends When Employee Misuses Computer, Violates Duty of Loyalty Search ILR's Internet Commerce database

FREEDOM OF SPEECH Utah's E-Mail Registry Law Does Not Violate Marketers' First Amendment Rights, Says DOJ The free speech rights of online marketers are not violated by a state law prohibiting the transmission of sexually-oriented e-mails to registered addresses accessible by minors, according to a statement of interest the U.S. Department of Justice filed Nov. 3 in a lawsuit challenging Utah's child registry law. To hold otherwise, DOJ warned, "would unjustifiably favor the dubious 'right' to send unsolicited sexually-oriented material directly and indiscriminately to personal e-mail addresses, heedless of whether they belong to adults or children, and regardless of the expressed wishes of the owner of the addresses," DOJ's statement said. Free Speech Coalition, Inc. v. Shurtleff (Statement of Interest of the United States), 2006 ILRWeb (P&F) 3004. Read more... Search ILR's Freedom of Speech database

TELECOMMUNICATIONS Broadband over Power Line Internet Access Is Information Service, FCC Says The Federal Communications Commission Nov. 3 adopted an order classifying broadband over power line (BPL)-enabled Internet access service as an information service. The order places BPL-enabled Internet access service on an equal regulatory footing with other broadband services, such as cable modem service and DSL Internet access service, the commission said. "With today's order the commission takes another important step to promote the deployment of broadband infrastructure," said FCC Chairman Kevin Martin. Read more...

Other Telecommunications news: FCC Douses Restrictions on Free Wi-Fi Service at Logan Airport FCC Commissioners Remain Divided Over Proposed AT&T-BellSouth Merger Search ILR's Telecommunications database

PRIVACY & SECURITY Privacy, Security Protection Will Remain Key Part of FTC's Agenda, Majoras Says Privacy and security are likely to remain a key part of the Federal Trade Commission's consumer protection mission for the foreseeable future, FTC Chairman Deborah Platt Majoras said Nov. 6 at the opening of a three-day commission conference on the projected impact of technological and business developments on consumers over the next decade. The conference is the first major FTC public hearings on consumer protection since 1995, Majoras said, and will be followed by a one-day, closed-door meeting at the FTC between agency officials and members of the law enforcement community. Read more...

Other Privacy & Security news: GAO Says Feds Need Better Coordination of Efforts on Funding of Cybersecurity R&D Search ILR's Privacy & Security database

TAXATION Software Industry Urges IRS to Tweak Tax Treatment of Maintenance Agreements A tax deduction applicable to revenue earned on software maintenance contracts is generally well-written but needs minor adjustments to put online software vendors on parity with those who distribute physical copies, according to comments the software industry filed with the Internal Revenue Service. Salesforce.com, Inc. and various software industry groups urged the IRS to rethink its position that online software providers are excluded from availing themselves of a deduction that applies to revenue earned from bundled first year maintenance contracts. Read more...

Other Taxation news: As Congress Considers Online Game Taxes, Linden Lab Contends Law Already Clear Software Firms Seek Provisions to Cover Any Congressional Passage of Tax Breaks SSUTA Board Seeks Bidders for Web Site, Publisher of Record Report Cites Unclear Benefits of New York Joining Streamlined Sales Tax Agreement IRS Exceeds 80 Percent for E-Signatures, Finds Most Satisfied with Current Method Company Providing Online Services Not Responsible for Sales Tax, Virginia Says Search ILR's Taxation database

JURISDICTION & PROCEDURE Custom Data on Passive Site Was Purposeful Contact A web site that displayed customized marketing content after a prospective customer identified itself by logging-in purposefully availed itself of the forum in which the prospect resided, the U.S. District Court for the District of Colorado held Oct. 18. The Colorado court concluded that this web site contact, along with other contacts such as e-mail messages and telephone conversations, amounted to minimum contacts sufficient to permit the constitutional exercise of jurisdiction over a New York-based defendant. EagleDirect Marketing Solutions, Inc. v. Engenus NA, 2006 ILRWeb (P&F) 2869. Read more...

Other Jurisdiction & Procedure news: Absent Proof of Sales in Forum, Interactive Web Site Alone Fails N.Y. Long-Arm Analysis Search ILR's Jurisdiction & Procedure database

CRIMINAL LIABILITY Fugitive Hacker Who Allegedly Ran Phishing Scheme Is Arrested by FBI The FBI in Los Angeles announced Nov. 1 that agents arrested a fugitive known as "The Hacker," who operated a phishing scheme that targeted thousands of America Online subscribers. Jeffrey B. Goodin was released on bond after he was indicted earlier this year for the scheme, but he failed to show up for a scheduled bail revocation hearing. A federal arrest warrant was issued for Goodin July 24, and a superceding indictment was handed down July 27, charging him with crimes he allegedly committed while a fugitive, including witness harassment, the FBI noted. Read more... Search ILR's Criminal Liability database

Latest Cases Aerotel Ltd. v. Telco Holdings Ltd., 2006 ILRWeb (P&F) 2875 [UK Sup Ct Jud] (UK Court of Appeal restricts law on software and business method patentability) Australian Communications and Media Authority v. Clarity1 Pty Ltd, 2006 ILRWeb (P&F) 2863 [Fed Ct Aus] (Spam firm, director fined $4.3 million in first Australian Spam Act prosecution) Best Western International, Inc. v. Doe, 2006 ILRWeb (P&F) 2881 [D Ariz] (Use of marks on gripe site supports discovery of anonymous posters' identities) Christensen Firm v. Chameleon Data Corp., 2006 ILRWeb (P&F) 3007 [WD Wash] (Transfer of domain equals 'registration' for purposes of establishing ACPA claim) Continental Airlines (Petition for Declaratory Ruling Regarding the Over-the-Air Reception Devices (OTARD) Rules), 2006 ILRWeb (P&F) 3001 [FCC] (FCC douses restrictions on free Wi-Fi service at Logan Airport) Designation as a Preexisting Subscription Service (Final Order), 2006 ILRWeb (P&F) 3003 [Copyright Office] (Register of Copyrights transmitted a memorandum opinion to the Copyright Royalty Board confirming that only three music services qualify as a preexisting subscription service for purposes of performing a sound recording publicly by means of a subscription digital audio transmission pursuant to a statutory license) Forge Industrial Staffing, Inc. v. De La Fuente, 2006 ILRWeb (P&F) 2873 [ND Ill] (CFAA authorization ends when employee misuses computer, violates duty of loyalty) ISI Brands, Inc. v. KCC International, Inc., 2006 ILRWeb (P&F) 2867 [ED NY] (Absent proof of sales in forum, interactive web site alone fails N.Y. long-arm analysis) National Association of Home Inspectors v. National Association of Certified Home Inspectors, 2006 ILRWeb (P&F) 2877 [ED Mich] (Web site sufficiently interactive for purposes of exercising personal jurisdiction) Province of Brabant Wallon v. Domain Purchase, NOLDC, Inc., 2006 ILRWeb (P&F) 2879 [WIPO] (Geographic domain name not identical or confusingly similar to complainant's registered mark where figurative element is the most distinctive element of complainant's mark) QSRSoft, Inc. v. Restaurant Technology, Inc., 2006 ILRWeb (P&F) 2865 [ND Ill] (Limited display of software at trade show no bar to trade secret protection) United States v. Schuster, 2006 ILRWeb (P&F) 2861 [7th Cir] (District court did not err in calculating both the loss amount resulting from a CFAA violation and the amount of restitution) United States v. Yesmail, Inc. (Stipulated Final Order), 2006 ILRWeb (P&F) 2871 [ND Cal] (Marketer settles charges of CAN-SPAM Act violations) Zango, Inc. f/k/a 180solutions, Inc., In re (Agreement Containing Consent Order), 2006 ILRWeb (P&F) 3005 [FTC] (Major adware distributor Zango agrees to pay $3 million, settle FTC accusations) Search ILR's Cases database

Latest Pleadings, Motions, & Briefs Complaint and Request for Inquiry and Injunctive Relief Concerning Unfair and Deceptive Online Marketing Practices, 2006 ILRWeb (P&F) 3000 [FTC] (Advocacy groups call on FTC to investigate Internet advertising) Diehl v. Crook (Complaint), 2006 ILRWeb (P&F) 3002 [ND Cal] (Online journalist sues for defendant's alleged misuse of the DMCA to block an article critical of him) Free Speech Coalition, Inc. v. Shurtleff (Statement of Interest of the United States), 2006 ILRWeb (P&F) 3004 [D Utah] (Utah's e-mail registry law does not violate marketers' First Amendment rights, says DOJ) Universal Tube & Rollform Equipment Corp. v. YouTube, Inc. (Complaint), 2006 ILRWeb (P&F) 2814 [ND Ohio] (Owner of utube.com seeks preliminary and permanent injunctions and the transfer of the youtube.com domain pursuant to the Lanham Act and Ohio law) Search ILR's Pleadings database

CD Recording of Web Accessibility Audio Conference Now Available If you missed our audio conference on Accessibility in Cyberspace, you haven't missed out completely. CD-ROM recordings of the event are now available. Order one today!

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