Wednesday, February 14, 2007		ILR Home Page

Weekly Alert February 14, 2007 Latest News Intellectual Property Internet Commerce Freedom of Speech Telecommunications Privacy & Security Taxation Jurisdiction & Procedure Criminal Liability Latest Cases Latest Pleadings, Motions, & Briefs Accepting Early Bird Registrations for UGC Audio Conference Keynotes Confirmed for Broadband Policy Summit Subscription Information

Latest News INTELLECTUAL PROPERTY Mother Cleared of Liability for Daughter's Downloading Is Eligible for Attorneys' Fees A mother who was cleared of secondary copyright infringement liability for the downloading of music by her daughter is eligible as a prevailing party for recovery of her attorneys' fees, the U.S. District Court for the Western District of Oklahoma held Feb. 6. While declining to call the record label's infringement action against the mother frivolous or objectively unreasonable, the court called the secondary infringement claims "untested and marginal." The defendant's only alternative to litigation was "to capitulate to a settlement for a violation she insists she did not commit," the court said, adding, "Such capitulation would not advance the aims of the Copyright Act as the plaintiffs' untested theory would remain untested." Capitol Records, Inc. v. Foster, 2007 ILRWeb (P&F) 1207. Read more...

Other Intellectual Property news: Group Says Digital Watermarks Will Identify Copyright Owners and Curb Infringers German Trial Court Rules That 'Framing' Web Content Is Infringement Online Access That Exceeded License Terms Supports Infringement Claim, CFAA Violation YouTube at a Competitive Deficit Because of Piracy Issue Search ILR's Intellectual Property database

INTERNET COMMERCE Lawmakers, Interest Groups Try to Control Internet Sales of Drugs, Online Pharmacies The current legal framework for regulating the Internet sale of prescription drugs and online physician services is "a patchwork" of federal and state laws, according to a report prepared by the Congressional Research Service for lawmakers. The report, CRS Report for Congress: Legal Issues Related to Prescription Drug Sales on the Internet, dated Jan. 29, said the growing use of the Internet for health care matters, including the purchase of controlled substances, prescription drugs, online pharmacies, and medical consultations with patients, has opened "gaps" in the current system, which, among other problems, has allowed sales of "potentially dangerous quantities of highly addictive prescription drugs." Read more...

Other Internet Commerce news: D.C. Anti-Spam Bill Seeks Civil, Criminal Penalties for Deceptive or Fraudulent E-Mail Messages Search ILR's Internet Commerce database

FREEDOM OF SPEECH Lawmakers Seek to Strengthen Reporting Rules for Child Porn House and Senate lawmakers announced legislation Feb. 7 that would crack down on child pornography online by beefing up industry reporting requirements. During a news conference, proponents of the bill, known as the SAFE Act (S. 519), said they were seeking to expand the range of companies obligated to report child pornography beyond Internet service providers, clarify exactly what information companies need to report, and beef up penalties for violators. Read more... Search ILR's Freedom of Speech database

TELECOMMUNICATIONS Verizon's Tauke Suggests Broadband, USF Reform, Public Safety Policy Goals In stark contrast to a year ago, when Verizon was pushing a major communications bill, the company's legislative agenda this year includes some wide policy areas such as broadband access, universal service fund reforms, and interoperability for public safety agencies, a top official said Feb. 12. Tom Tauke, executive vice president for public affairs, policy, and communications at Verizon, told reporters that broadband deployment was at the top of the company's agenda as well as many lawmakers' lists. The company had invested close to $45 billion in capital expenditures through 2006 on deploying fiber optic lines for its FiOS service. Read more...

Other Telecommunications news: FCC Responds to Reps. Dingell, Markey in Advance of Feb. 15 Oversight Hearing Senate Committee Approves Bills to Improve Interoperability, 911 Service FCC Investigation of NSA Program 'Not Possible,' Chairman Martin Says Search ILR's Telecommunications database

PRIVACY & SECURITY Washington Attorney General Files Complaint Alleging Spyware Act Violations Three Internet advertisers and their companies violated the Washington Computer Spyware Act by modifying computer settings of users and misrepresenting the discovery of errors on computers, Washington Attorney General Rob McKenna (R) alleged Feb. 7. The attorney general Feb. 7 filed a lawsuit in Washington Superior Court, King County, charging that the individuals and their companies, based in California, also illegally barred users from declining software installation, McKenna's office said in a statement. State of Washington v. SecureLink Networks LLC (Complaint), 2007 ILRWeb (P&F) 1202. Read more...

Other Privacy & Security news: State Legislative Trends, Judicial Outcomes Said to Shape New Federal Data Breach Law Leahy, Specter Again Offer Broad Measure to Safeguard Personal Data CERT Blocks Coordinated Attack Striking Three Internet Root Servers Tech Industry Lobbyists Want Data Breach Notice Law Written by 'Educated' Congress Dingell Promises Action on Bills to Protect Consumers' Personal Data Rep. Smith Bill Would Give DOJ Broad Power to Require ISP Data Retention, Critics Argue Internet Security Answers More Elusive as Fraud Becomes Increasingly Complex Missing Laptop Problems Continue at FBI, Agency Not Reporting Losses, IG Report Says Search ILR's Privacy & Security database

TAXATION Rhode Island Implements SSUTA Rules The Rhode Island Division of Taxation has adopted rule amendments (Regs. SU 00-58 to 96-95 (nonconsecutive) ) that implement streamlined sales tax legislation (H.B. 7120) enacted June 30. Rhode Island became a full member state of the Streamlined Sales and Use Tax Agreement effective Jan. 1. Read more... Search ILR's Taxation database

JURISDICTION & PROCEDURE Web Site's 'Demo' Feature Does Not Support Finding of 'Continuous Contacts' with Forum A feature on an investment web site that permitted users to demo the defendant's services over the Internet is not the sort of interactivity that supports a finding of general personal jurisdiction, the U.S. District Court for the District of Columbia held Feb. 6. "The demo may be more than 'passive,' but it nevertheless is 'merely informational,' " concluded Judge Paul L. Friedman in dismissing the lawsuit for lack of personal jurisdiction. FC Investment Group LC v. IFX Markets, Ltd., 2007 ILRWeb (P&F) 1205. Read more... Search ILR's Jurisdiction & Procedure database

CRIMINAL LIABILITY As Interconnections Deepen, Opportunities Increase for Criminals, Security Experts Say The increasing interconnectedness of global systems combined with the evolving nature of cyber threats is brewing a potentially toxic stew of problems, security experts said Feb. 8. In the next decade, a single advanced integrated network will handle the majority of the world's communication needs across 1 billion connected devices, said Greg Garcia, the first assistant secretary for cyber security and telecommunications within the Department of Homeland Security. Read more...

Other Criminal Liability news: Public-Private Cooperation, Data Sharing Still Lacking in Cybercrime Fight, DOJ Says Duracell Employee Pleads Guilty to Stealing, Downloading Trade Secrets from Workplace German Police Reconsider Use of Computer Searches Search ILR's Criminal Liability database

Latest Cases Capitol Records, Inc. v. Foster, 2007 ILRWeb (P&F) 1207 [WD Okla] (Owner of Internet account, who prevailed in infringement action initiated by record companies, is entitled to award of attorneys fees) FC Investment Group LC v. IFX Markets, Ltd., 2007 ILRWeb (P&F) 1205 [D DC] (Web site's 'demo' feature does not support finding of 'continuous contacts' with forum) Ferron v. VC E-Commerce Solutions, Inc., 2007 ILRWeb (P&F) 1099 [SD Ohio] (Dispute of material fact as to whether e-mail marketer falls within scope of Ohio Consumer Sales Practices Act) German Police Searches of Computer Hard Drives Case [party names withheld by law], 2007 ILRWeb (P&F) 1093 [Bundesgerichtshof (Germany)] (German police reconsider use of computer searches) German Web Framing Decision, 2007 ILRWeb (P&F) 1091 [LG Munchen (Germany)] (German trial court rules that 'framing' web content is infringement) Just Enterprises, Inc. v. (888) Justice, Inc., 2007 ILRWeb (P&F) 1219 [WD Mo] (E-mail links render sites sufficiently interactive for purposes of exercising personal jurisdiction) Multi Technology Industrial, LLC v. Forchheim, 2007 ILRWeb (P&F) 1211 [D NH] ("Fairly general" web site that is not specifically directed at forum residents is insufficient to support exercise of personal jurisdiction) Shloss v. Sweeney, 2007 ILRWeb (P&F) 1215 [ND Cal] (English professor has a real and reasonable apprehension of copyright liability and may therefore proceed with declaratory judgment action against Estate of James Joyce to use copyrighted material on a web site) Steinbuch v. Cutler, 2007 ILRWeb (P&F) 1217 [ED Ark] (Defendant's contacts with Arkansas—which included the sale of a few items from her "Internet sex store" to Arkansas residents—are too attenuated to establish jurisdiction) SURCOUF v. Topsafelistbiz.com, 2007 ILRWeb (P&F) 1097 [WIPO] (A domain name that wholly incorporates a trademark may be confusingly similar to that trademark despite the addition of a pejorative term; respondent's use cannot be protected as a legitimate non-commercial gripe site) Therapeutic Research Faculty v. NBTY, Inc., 2007 ILRWeb (P&F) 1071 [ED Cal] (Online access that exceeded license terms supports infringement claim, CFAA violation) United States v. Horne, 2007 ILRWeb (P&F) 1209 [7th Cir] (Luring victims through use of eBay satisfies the interstate commerce element of Hobbs Act violation) United States v. Kilbride, 2007 ILRWeb (P&F) 1213 [D Ariz] (In CAN-SPAM prosecution, defendants fails to establish an ownership interest in computers lawfully seized by the government) Vanguard Group, Inc. v. Investors FastTrack, 2007 ILRWeb (P&F) 1095 [NAF] (Even though respondent's best-of-vanguard.com domain name incorporates the VANGUARD mark, the words "best-of" plainly show the term is purely nominative and is descriptive of the respondent's business, especially when respondent's web site contains an express disclaimer of any affiliation with complainant) Zyprexa Litigation, In re 2007 ILRWeb (P&F) 1221 [ED NY] (Judge rescinds injunction prohibiting web sites from publishing documents leaked from products liability lawsuit) Search ILR's Cases database

Latest Pleadings, Motions, & Briefs Elektra Entertainment Group, Inc. v. Santangelo (Answer & Counterclaim by Defendant Robert Santangelo, Jr.), 2007 ILRWeb (P&F) 1026 [SD NY] (Teenager pleads 32 affirmative defenses in P2P infringement suit, and counterclaims against recording industry for breach of "duty to warn" and copyright misuse) Urban v. Urban (Complaint), 2007 ILRWeb (P&F) 1206 [MD Tenn] (Country music star seeks transfer of keithurban.com from someone who shares his name) Washington, State of v. SecureLink Networks LLC (Complaint), 2007 ILRWeb (P&F) 1202 [Wash Super Ct] (Washington Attorney General files complaint against three Internet advertisers alleging Washington Computer Spyware Act violations) Zyprexa Litigation, In re (Nonparties and John Doe's Joint Memorandum in Opposition to Eli Lilly's Request to Extend the January 4, 2007 Temporary Mandatory Injunction), 2007 ILRWeb (P&F) 1204 [ED NY] (Brief asks court to dissolve injunction forbidding web sites from publishing or disseminating documents leaked from an ongoing product liability lawsuit against a pharmaceutical company) Search ILR's Pleadings database

Accepting Early Bird Registrations for UGC Audio Conference The New, New Media Revolution: User Generated Content March 29, 2007 2:00-3:30 p.m. ET Early bird registration ends Feb. 28th Last year marked the rapid emergence of offerings that radically altered the Internet content landscape. User Generated Content or "UGC" exploded on the scene along with new tools that greatly facilitated content collaboration, publication, and distribution. Coupled with widespread adoption and use of social networking sites, 2006 culminated in the $1.6B acquisition of YouTube by Google. These developments raise new legal challenges for rights holders and users — affecting intellectual property, privacy, defamation, consumer protection, negligence, and contract formation. Join Pike & Fischer's panel of experts as they address these and other issues surfacing on the new, new media horizon. Learn more

Keynotes Confirmed for Broadband Policy Summit June 7-8, 2007 - The Ritz Carlton, Arlington, VA Early bird registration ends April 17th Rep. Rick Boucher (D-VA), FCC Commissioner Robert M. McDowell and NTIA head John M.R. Kneuer are slated to keynote BPS III - the preeminent Washington forum where top-level executives, legislators, regulators, lobbyists, policy makers, investors and technologists discuss and debate the swirling forces of technology change, legislative leadership shifts, policy changes and evolving business models in the broadband space. View the summit agenda for a full list of confirmed speakers to date. Register Now - Early-Bird Discount ends April 17th

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