Weekly
Alert
June 6, 2007
Last Chance
to Register for Broadband Policy
Summit!
Latest News
· Intellectual Property
· Internet Commerce
·
Freedom of
Speech
· Telecommunications
· Privacy & Security
·
Taxation
· Jurisdiction & Procedure
·
Criminal
Liability
Latest
Cases
Latest Pleadings,
Motions, & Briefs
Latest Research from Pike
& Fischer
Events &
Conferences
Subscription Information
Last
Chance to Register for Broadband Policy Summit!
Broadband Policy
Summit III - Begins
tomorrow!
June 7-8,
2007 - The Ritz-Carlton Pentagon City - Arlington, VA
Learn firsthand from top industry experts and regulators what's hot on
the legislative and regulatory agendas, how this affects broadband
business practices, and what you need to do to position your organization
for strategic success. Hear from top policy-makers and industry
leaders from Congress, the FCC, NTIA, state commissions, cable operators,
telcos and law firms.
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Latest News
INTELLECTUAL
PROPERTY
CDA §230 Preempts State Intellectual
Property Laws, Ninth Circuit Reiterates
Section 230 of the
Communications Decency Act preempts causes of action based on state
intellectual property laws, the U.S. Court of Appeals for the Ninth
Circuit clarified May 31 in an amendment to a March 29 ruling. CDA
Section 230 does not immunize interactive computer services from
"intellectual property" claims; however, the court said, Congress was
referring only to intellectual property claims rooted in federal
law. The court also denied en banc rehearing of the case.
Perfect 10, Inc. v. CCBill LLC (Amended Opinion), 2007 ILRWeb
(P&F) 1873. Read
more ...
Other
Intellectual Property news:
· Roundtable
Set for June 15 to Assess Section 115 Licensing of Digital Music
· Technical
Correction Made to Webcast Royalties
· Copyright
Registration Is Agency Decision, Not Constitutional Right
·
Webcasters,
NPR Seek Stay Pending Appeal of Webcasting Royalty Rate Determination
· OECD
Estimates Global IP Piracy at Minimum $200 Billion
Annually
Search ILR's Intellectual
Property database

INTERNET COMMERCE
E-Mail Harvesting from Social Network
Likely Actionable, but Not Under Spam Laws
Though it likely does not
fall within the prohibitions of illegal spam, e-mail harvesting from a
competitor may violate California's penal code and be actionable as
misappropriation, the U.S. District Court for the Northern District of
California held May 21. Plaintiff Facebook, Inc., a popular social
networking site, brought this action against competitor ConnectU LLC after
ConnectU gained access to hundreds of Facebook users' e-mail addresses,
and began sending them messages encouraging them to switch to
ConnectU. The court allowed Facebook's arguments under the
California Penal Code and allowed its common law misappropriation claim,
but dismissed its claims that ConnectU had violated state and federal spam
regulations. Facebook, Inc. v. ConnectU LLC, 2007 ILRWeb
(P&F) 1861. Read
more ...
Other Internet
Commerce news:
· JEC
Republicans Expect to Release Virtual Economies Report by August
Recess
· Online
Marketers Settle FTC Allegations of CAN-SPAM, Web Privacy Policy
Violations
· Hong
Kong's New Anti-Spam Law Sets Fines, Prison Term Sanctions
·
'Spam
King' Indicted, Arrested on Electronic Mail Fraud Charges
·
Unsolicited
MySpace E-Messages from Bogus Accounts Violated Federal, State Spam
Laws
· Disability
Rights Group Sues Hotels.com Over Lack of Guaranteed Accessible
Rooms
Search ILR's Internet
Commerce database

FREEDOM OF
SPEECH
Free Speech, Privacy Don't Bar Use of
Private Reading Material to Prove Guilt
The full U.S. Court of
Appeals for the Ninth Circuit May 24 said that free speech and privacy
considerations do not bar prosecutors' use of evidence of an accused's
possession of certain reading material to prove criminal activity.
Accordingly, the court held that some evidence of a defendant's possession
of child-sex fiction was admissible to prove his intent when he showed up
for an sexual liaison he had arranged on the Internet with someone who
identified herself as a 14-year-old girl but who was, in fact, a police
detective. United States v. Curtin, 2007 ILRWeb (P&F)
1881. Read
more ...
Search ILR's Freedom of
Speech database

TELECOMMUNICATIONS
Court Upholds FCC Authority to Require
VoIP USF Contributions
The U.S. Court of Appeals for the
District of Columbia Circuit ruled June 1 that the Federal Communications
Commission has the authority to require Voice over Internet Protocol
providers to pay into the universal service fund. The court also
upheld the comparison of VoIP to wireline long-distance service for the
purpose of establishing the revenue base on which universal service fund
contributions are assessed. However, the court struck down two parts
of the commission's order, one requiring preapproval of traffic studies
and the other suspending the "carrier's carrier" rule.
Vonage Holdings Corp. v. Federal Communications Commission, 2007
ILRWeb (P&F) 2001. Read
more ...
Other
Telecommunications news:
· FCC
Seeks Tougher E-911 Rules, Tackles Alert System, Katrina Report
· FCC
Orders VoIP Providers to Comply with Disability Rules
Search ILR's
Telecommunications database

PRIVACY & SECURITY
Bill Creating Security Standards,
Merchant Liability for Data Losses Passes
Committee
A bill that would hold merchants responsible for the cost
of providing notice to consumers when a security breach compromises their
personal information, and make several other changes that would tighten
California's landmark data breach notification law, passed the state's
Assembly Appropriations Committee May 31. A.B. 779 by Assemblyman
Dave Jones (D) would change state law in response to the massive TJX
Companies, Inc. data breach that was disclosed in recent months. It
would allow a business required to notify individuals of a data breach to
seek reimbursement of the costs for that notice from a third party that is
responsible for the breach. Read
more ...
Other Privacy
& Security news:
· ChoicePoint
Agrees to Protect Consumer Information in Settlement with 44 States
· Senate
Intelligence Committee Refuses to Go Forward with Telecom Liability
Protection Bill
· Industry
Groups Issue New Attacks on 'Spyware' Bill as House Vote
Approaches
Search ILR's Privacy
& Security database

TAXATION
New Jersey Bill to Give Tax Credits for
Digital Media Production Companies Advances in
Senate
Legislation (S. 2526) that would offer digital media
production companies tax incentives to locate in New Jersey is in position
for a Senate floor vote after being reported May 24 by the Senate Budget
and Appropriations Committee. The measure would extend to digital
media production companies the corporation business tax credit New Jersey
lawmakers authorized in 2005 to attract film production companies to the
state. Read
more ...
Other
Taxation news:
·
Amnesty
Provision Comes to Close for Firms to Register with SSUTA
· Minnesota
Governor Vetoes Tax Legislation with SSUTA Compliance
Provisions
Search ILR's Taxation
database

JURISDICTION & PROCEDURE
Jurisdiction Claimed Over Web Site
Executive; Court Declines to Enforce Arbitration
Clause
An arbitration clause contained in a web site terms of
service was declared unconscionable May 30 by the U.S. District Court for
the Eastern District of Pennsylvania. The court also turned back a
claim by the site's chief executive officer, a California resident, that
the Pennsylvania court lacked jurisdiction over him. Judge Eduardo
C. Robreno found that the executive's involvement in promoting the Second
Life virtual world, particularly promoting the claim that Second Life
users owned their virtual property, created sufficient minimum contacts
with Pennsylvania to support the constitutional assertion of specific
personal jurisdiction over him. Bragg v. Linden Research,
Inc., 2007 ILRWeb (P&F) 1869. Read
more ...
Other
Jurisdiction & Procedure news:
· Web
Site Linking to National Distributors, Referencing Sales Not Purposeful
Availment
Search ILR's Jurisdiction
& Procedure database

CRIMINAL LIABILITY
Germany Moves to Tighten Anti-Hacking
Law, Add Long Prison Terms for Corporate Attacks
German legislation seeking
to establish increased penalties for computer hacking, including steep
prison time for hacking resulting in damage to corporate files, has
created some concerns that law-abiding computer users might get caught up
in its web. The measure, (Bill No. 16/3656), was approved by the
Bundestag May 24. It must now be approved by the Bundesrat, the
branch of Parliament whose members directly represent the governments of
Germany's 16 states, before heading to the president's desk for a
signature. The legislation, which would impose penalties for
illegally accessing others' electronic data, would bring Germany in line
with prevailing anti-hacking standards in Europe. Read
more ...
Search ILR's Criminal
Liability database

Latest Cases
· Amburgey v. Atomic Ski USA, Inc., 2007
ILRWeb (P&F) 1871 [D Maine] (Web site linking to national
distributors, referencing sales not purposeful availment)
·
Bragg v. Linden Research, Inc., 2007
ILRWeb (P&F) 1869 [ED Pa] (Representations made to induce visits
to web site support specific personal jurisdiction)
·
Darden v. Peters, 2007
ILRWeb (P&F) 1847 [4th Cir] (Web map collection not copyrightable
either as stand-alone work or compilation)
· EPCO
Carbondioxide Products, Inc. v. Bank One, NA, 2007
ILRWeb (P&F) 1859 [WD La] (No evidence that parties had agreed to
transact business electronically, in accordance with Louisiana's UETA)
· Facebook, Inc. v. ConnectU LLC, 2007
ILRWeb (P&F) 1861 [ND Cal] (State and federal anti-spam claims
dismissed, but claims based on improper harvesting of e-mail addresses
survive)
· Federal Trade Commission v. Pacific Herbal
Sciences, Inc. (Stipulated Final Judgment and Order as to Lei Lu, et
al.), 2007
ILRWeb (P&F) 1697 [CD Cal] (Online marketers settle FTC
allegations of CAN-SPAM, web privacy policy violations)
·
Federal Trade Commission v. Pacific Herbal Sciences, Inc.
(Stipulated Final Judgment and Order as to Pacific Herbal Sciences, Inc.,
et al.), 2007
ILRWeb (P&F) 1695 [CD Cal] (Online marketers settle FTC
allegations of CAN-SPAM, web privacy policy violations)
·
Gordon v. Impulse Marketing, Inc., 2007
ILRWeb (P&F) 1867 [ED Wash] (Plaintiff may continue to pursue his
claims under Washington's Commercial Electronic Mail Act, Consumer
Protection Act, Deceptive Offers statute, Identity Crimes statute, and
Prize statute, and the federal CAN-SPAM Act)
· Illinois
Bell Telephone Co. v. Village of Itasca, Illinois, 2007
ILRWeb (P&F) 1883 [ND Ill] (Telecom provider, seeking to upgrade
its facilities for deployment of IP-based services, sufficiently alleges
causes of action under federal and state law against seven Illinois
municipalities that have allegedly deprived plaintiff of its rights to use
public rights-of-way)
· Kleffman v. Vonage Holdings
Corp., 2007
ILRWeb (P&F) 1863 [CD Cal] (Failure to send commercial e-mail from
single domain is not a misrepresentation under California anti-spam
statute; claim based on that statute is preempted in any event by
CAN-SPAM)
· MySpace, Inc. v. TheGlobe.com, Inc.
(Settlement), 2007
ILRWeb (P&F) 1303 [CD Cal] (Unsolicited MySpace e-messages from
bogus accounts violated federal, state spam laws)
·
Nazaruk v. eBay, Inc., 2007
ILRWeb (P&F) 1877 [10th Cir] (Judgment of dismissal upheld based
on forum selection clause in eBay User Agreement)
·
Perfect 10, Inc. v. CCBill LLC (Amended Opinion), 2007
ILRWeb (P&F) 1873 [9th Cir] (Ninth Circuit issues amended opinion
to clarify that CDA immunity applies to all state intellectual property
laws)
· Requa v. Kent School District No. 415,
2007
ILRWeb (P&F) 1865 [WD Wash] (School suspension not based on
off-campus conduct linking to YouTube video, but in-classroom filming of
teacher)
· Search of Yahoo, Inc., In re, 2007
ILRWeb (P&F) 1879 [D Ariz] (District court may properly issue a
search warrant ordering the search and production of electronic evidence
pursuant to 18 USC §2703(a) where the warrant is directed to an
out-of-district ISP located in California)
· United
States v. Curtin, 2007
ILRWeb (P&F) 1881 [9th Cir] (Free speech, privacy don't bar use of
private reading material to prove guilt)
· United States
v. Park, 2007
ILRWeb (P&F) 1875 [ND Cal] (Warrantless search of cell phone
violates Fourth Amendment)
· Vonage Holdings Corp. v.
Federal Communications Commission, 2007
ILRWeb (P&F) 2001 [DC Cir] (Court upholds VoIP USF contribution
requirement, rejects some process details)
Search ILR's Cases
database

Latest Pleadings, Motions, & Briefs
·
Application of the Commonwealth for an Order for Disclosure of
Records of a Remote Computing Service, MySpace.com, In re (Request of
MySpace.com for an In Camera Submission in Response to Order), 2007
ILRWeb (P&F) 2000 [Pa Ct Com Pleas] (MySpace submits certain
e-mail records for in camera review to determine whether
disclosure would violate the Stored Communications Act)
· Digital Media Association v. Copyright
Royalty Board (Appellants' Motion for Stay Pending Appeal), 2007
ILRWeb (P&F) 1830 [DC Cir] (Webcasters request stay pending appeal
of CRB royalty rate determination)
· Smith v. Hotels.com
L.P. (Class Action Complaint), 2007
ILRWeb (P&F) 1826 [Cal Super Ct] (Disability rights group sues
Hotels.com over lack of guaranteed accessible rooms)
· United States v. Soloway
(Indictment), 2007
ILRWeb (P&F) 1828 [WD Wash] ('Spam king' indicted, arrested
on electronic mail fraud charges)
· Zango, Inc. v. Kaspersky Lab, Inc. (Plaintiff's
Motion for Temporary Restraining Order), 2007
ILRWeb (P&F) 1832 [WD Wash] (Online marketer seeks TRO against
anti-spyware company that allegedly disables plaintiff's
programs)
Search ILR's Pleadings
database

Latest Research from Pike
& Fischer
The
White Space Opportunity: Spectrum as a Public Asset and the Impact
on Incumbents
The FCC is in the final stages of deciding
if and how to authorize use of the TV broadcast "white space," which it
could make available by early 2009. In this first-of-its-kind
paradigm, we propose a detailed white space policy designed to maximize
the amount of spectrum made available for "community" broadband
networks. We highlight the federal government's historic opportunity
to directly and fully serve the public interest. And as a final
exercise, we consider the potential impact that our proposed free public
networks would have on incumbents' revenues.
Cable
Commercial-Services Strategies
The nation's top cable
operators are launching a long-anticipated push to develop and broadly
deploy a commercial services portfolio focused on the small and mid-sized
business (SMB) segment. In attacking this multibillion dollar opportunity,
the cable companies have fundamental decisions to make regarding
technology solutions, the types of customers to target, the channel
partners they will leverage in reaching those customers, and service
portfolios to market through those channels. This 30+ page report
provides an overview of the commercial services strategies of the leading
U.S. cable operators, analyzes their existing and emerging capabilities,
and details the critical success factors for the cable industry in
targeting the SMB opportunity.
View all Market Research Reports &
Briefs

Events & Conferences
Broadband Policy
Summit III - Last Chance to
Register!
June 7-8,
2007 - The Ritz-Carlton Pentagon City - Arlington, VA
Learn firsthand from top industry experts and regulators what's hot on
the legislative and regulatory agendas, how this affects broadband
business practices, and what you need to do to position your organization
for strategic success. Hear from top policy-makers and industry
leaders from Congress, the FCC, NTIA, state commissions, cable operators,
telcos and law firms.
Download
Brochure Register
Now
Legal Risk Management in the Web 2.0
World - Early Bird Registration Ends August 1
September
18, 2007 - AED Conference Center - Washington, D.C.
Gain the latest insights and guidance on dealing
with the growing array of legal risks associated with social networking,
user-generated content and other applications in the Web 2.0 world.
Prepare yourself by learning about existing and potential liabilities, and
how you can manage your risk. Join Pike & Fischer's team of
attorney-experts and Broadband Advisory Services analysts and your fellow
telecom and law colleagues for this unprecedented event. Take
advantage of our early bird rate and secure your registration today.
Learn More
Register Now
Anti-Counterfeiting
& Brand Protection: Combating the Escalating Danger of Global
Counterfeiting
September 17 - 19, 2007 – The
Westin New York at Times Square, New York, NY
IQPC's second
event on Anti-Counterfeiting and Brand Protection will address the huge
challenges associated with combating and preventing the manufacturing and
distributing of counterfeit goods. Find out how to generate more profit
and protect your company's brand. Our speakers and panelists will share
strategies for securing and enforcing Intellectual Property rights
strategically overseas, particularly in China as well as others (Malaysia,
Hong Kong, Taiwan, Russia, Pakistan, North and South Korea, Argentina,
Brazil, Paraguay, among others). This conference will provide you with all
the tools necessary to strengthen your organization's brand protection
strategy in order to ensure continuous growth and, most importantly,
success in an ever competitive global marketplace. Register now by calling
1-800-882-8684 or visiting us at: http://www.iqpc.com/us/anticounterfeit/ilr
View all Events & Conferences

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