Wednesday, August 29, 2007 ILR Home Page

Weekly Alert  
 
August 29, 2007 
 
Facebook Exec to Deliver Closing Remarks at Pike & Fischer Web 2.0 Event
Latest News
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Intellectual Property
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Internet Commerce
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Freedom of Speech
· 
Telecommunications
· 
Privacy & Security
· 
Taxation
· 
Jurisdiction & Procedure
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Criminal Liability
Latest Cases
Latest Pleadings, Motions, & Briefs
Latest Research from Pike & Fischer 
Events & Conferences
Internet Law Attorney Directory
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Facebook Exec to Deliver Closing Remarks at Pike & Fischer Web 2.0 Event

Chris Kelly, Vice President & Chief Privacy Officer at social-networking upstart Facebook, will deliver the closing remarks at Pike & Fischer's conference, Legal Risk Management in the Web 2.0 World, to be held Tuesday, Sept. 18 in Washington, D.C. Kelly will cap off a day of discussion on existing and potential Web 2.0 liabilities and how you can manage the risks of your organization and those of your clients. Other keynoters include Dan Glickman, Chairman & CEO, Motion Picture Association of America; and Jules Polonetsky, Chief Privacy Officer and Senior Vice President, Consumer Advocacy at AOL. Other companies represented at the conference include Google, NBC Universal, News Corp., Microsoft, Gannett, ShowTime and many more.

View the full program for a detailed rundown of all panels and participating faculty.  Group, government, non-profit, solo-practitioner, and academic rates are available.   Learn More  Register Now

Latest News 
 
INTELLECTUAL PROPERTY
 
SoundExchange Agrees to Separate Royalty Deals Between Large and Small Webcasters 
 
After months of contentious back-and-forth discussions between webcaster representative the Digital Media Association, and the performance royalty organization SoundExchange, both sides announced on Aug. 23 that they had reached an accord concerning the fees some large webcasters would be required to pay to play music over the Internet.  This follows an earlier offer made to certain "qualified small webcasters" by SoundExchange, wherein the collective agreed to accept royalty payments on the same percentage of royalty basis that had been in play under the Small Webcaster Settlement Act of 2002, Pub. L. No. 107-321.  Read more ...

Other Intellectual Property news:
 
·  Record Piracy Cost Pitted at $12.5 Billion, RIAA Launches New Offensive
·  SoundExchange Submits Formal Discounted Rate Offers to Small Webcasters
·  ICANN Seeks Data on 'Domain Tasting,' Later Outreach to Trademark Owners Planned

 
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INTERNET COMMERCE 
 
Web Contract May Be Unconscionable Even If Customers See, Understand All Terms 
 
A click-through contract of adhesion subject to a class action waiver can be void for substantive unconscionability notwithstanding clear notice of applicable terms and conditions, the U.S. District Court for the Northern District of California held Aug. 3.  The court said that notice of applicable terms and conditions eliminated the possibility that a party would be surprised, but it did not eliminate oppression.  The court found that an oppressive contract within an apparent scheme to defraud consumers was void for unconscionability even though customers had notice of the contract and its terms before purchase.  Brazil v. Dell, Inc., 2007 ILRWeb (P&F) 2435.  Read more ...

 
Other Internet Commerce news: 
 
·  Revenue Losses Held Compensable Under CFAA, Irrespective of Service Interruption
·  FTC Halts E-Mails, Product Claims for Weight-Loss, Anti-Aging Products
·  EC Charges Rambus with 'Patent Ambush' to Abuse Dominant Place in DRAM Market

 
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FREEDOM OF SPEECH
 
Single Publication Rule No Bar to Separate Print, Web Edition-Based Defamation Claims 
 
A newspaper's online edition is a separate publication from its print editions, giving rise to its own cause of action notwithstanding the "single publication rule," the New York Supreme Court for New York County held Aug. 2.  The court said that the single publication rule would not bar separate actions when a newspaper published alleged defamation in both print and web editions of its paper.  The court said that each edition was an independent publication.  Rivera v. NYP Holdings, Inc., 2007 ILRWeb (P&F) 2447.  Read more ...

 
Other Freedom of Speech news: 
 
·  California Violent Video Game Restrictions Deemed Unconstitutional
 
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TELECOMMUNICATIONS 
 
Google 'Highly Likely' to Bid in 2008's 700 MHz Action, CEO Says 
 
Google will probably participate in the upcoming Federal Communications Commission auction of spectrum in the 700 MHz range, company chief executive Eric Schmidt said Aug. 21.  Schmidt said although the company did not see all four conditions it was seeking in the July 31 FCC decision on the spectrum auction, "we felt we got the spirit of what we were asking for."  Google pledged to bid at least $4.6 billion in the auction if the FCC adopted four conditions, one of which concerned critical wholesale requirements.  The FCC adopted only two of the four conditions Google was seeking.  Read more ...

 
Other Telecommunications news: 
 
·  Order Circulating at FCC to Decide Fate of Spectrum
·  Last Minute Request for Data by FCC Called Violation of Administrative Procedures

 
Search ILR's Telecommunications database

PRIVACY & SECURITY 
 
Seventh Circuit Dismisses Breach Class Suit Over Hack of Bank's Online Marketing Site 
 
Present and future identity theft monitoring costs are not compensable damages, the U.S. Court of Appeals for the Seventh Circuit ruled Aug. 23, affirming the dismissal of a class claim against a bank for allegedly failing to protect personal information collected on its online marketing web site from a 2005 hacking incident.  The appeals court said the plaintiffs failed to present evidence of damages sufficient to support their negligence and implied breach of contract claims against Old National Bancorp.  Pisciotta v. Old National Bancorp, 2007 ILRWeb (P&F) 2443.  Read more ...

 
Other Privacy & Security news: 
 
·  Symantec Warns Job Seekers of E-Mail Fraud Using Stolen Monster.com Personal Data
·  'Opt-Out' Problems Could Be Key Issue at Fall FTC Online Ad Meeting, Experts Say
·  Coordinated Enforcement Envisioned in Plan by DOJ to Fight Identity Theft
·  Off-Network Data at Risk, Ponemon Survey Finds
·  Online Ad Group Issues Data Transfer Best Practices
·  Overcoming Academic Resistance Called Key to Meeting Privacy Threats at Universities

 
Search ILR's Privacy & Security database 

TAXATION
 
SBOE Moves Ahead with Plan to Seek Seller Information from Online Marketplaces 
 
A proposal to ask California-based online marketplaces such as eBay, Inc. and craigslist.org to turn over data on those who sell goods on their portals to determine if they are complying with sales and use tax laws was approved Aug. 14 by the State Board of Equalization.  The proposal is one of eight SBOE proposals for closing the sales and use tax gap. The board agreed to seek state funding for the eight new administrative tax gap efforts, which would cost a total of $60.2 million over three years, add 270.5 new staff positions, and bring in $207.7 million in revenue.  Read more ...

Other Taxation news: 
 
·  Federal Court in New York Dismisses Suit Against Online Travel Companies
·  Lines Purchased by ISP Constitute 'Local Telephone Service' within Meaning of Tax Code
·  SSUTA Sourcing Changes Explained in Washington Revenue Department's Draft Rule
·  Task Force Adopts Destination Sourcing Rule with Optional Provision for Incoming States

 
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JURISDICTION & PROCEDURE 
 
Using Web Site to Promote Harm in Forum Supports Jurisdiction, Even If Site Is Passive 
 
A web site that advertises California trade-show appearances and that operates with a domain name known to potentially infringe a California trademark will support jurisdiction there even if it facilitates no sales, the U.S. District Court for the Northern District of California held Aug. 2.  The court said that a web operator who knew that its domain potentially infringed a California trademark intentionally directed harm there by continuing to use the mark.  Hubb Systems, LLC v. microDATA GIS, Inc., 2007 ILRWeb (P&F) 2451.  Read more ...

 
Other Jurisdiction & Procedure news: 
 
·  Domain Name Retailer Initiating Numerous Sales in Forum Subject to Jurisdiction There
 
Search ILR's Jurisdiction & Procedure database

CRIMINAL LIABILITY 
 
Illinois Governor Signs Anti-Phishing Bill with Stiffer Penalties, New Rights to Sue 
 
Illinois Gov. Rod Blagojevich (D) has signed legislation creating a series of new penalties for "phishing" leading to identity theft and fraud, including giving consumers, Internet service providers and misrepresented businesses the authority to file lawsuits.  On Aug. 23 Blagojevich signed S.B. 137, which creates the Illinois Anti-Phishing Act.  The new law (Public Act 95-350), "makes it unlawful for a person, by means of a web page, e-mail message, or otherwise through use of the Internet, to solicit, request, or take any action to induce another person to provide identifying information by representing oneself to be a business without the authority or approval of the business."  Read more ...

 
Search ILR's Criminal Liability database
 

Latest Cases 
 
·  BensBargains.net, LLC v. XPBargains.com, 2007 ILRWeb (P&F) 2453 [SD Cal] (Where the percentage of deals copied from plaintiff's web site exceed 70%, the evidence is sufficient to raise a triable issue as to infringement)
·  Brazil v. Dell, Inc., 2007 ILRWeb (P&F) 2435 [ND Cal] (Web contract may be unconscionable even if customers see, understand all terms)
·  CLRB Hanson Industries, LLC v. Google, Inc., 2007 ILRWeb (P&F) 2459 [ND Cal] (In dispute over charges stemming from an AdWords contract, triable issues of material fact preclude summary judgment on the breach of contract claims)
·  Cohn v. TrueBeginnings, LLC, 2007 ILRWeb (P&F) 2289 [Cal Ct App] (Plaintiff accepted forum selection clause in Terms of Use, accessible via hyperlink, by clicking "continue" button when registering for matchmaking site)
·  Columbia Pictures, Inc. v. Bunnell, 2007 ILRWeb (P&F) 2463 [CD Cal] (Data stored in RAM, however temporarily, is electronically stored information subject to discovery)
·  Comcation, Inc. v. United States, 2007 ILRWeb (P&F) 2455 [Fed Cl] (Lines purchased by ISP constitute 'local telephone service' within meaning of tax code)
·  County of Nassau, New York v. Hotels.com, LP, 2007 ILRWeb (P&F) 2431 [ED NY] (Federal court in New York dismisses suit against online travel companies)
·  Doe v. SexSearch.com, 2007 ILRWeb (P&F) 2461 [ND Ohio] (CDA immunizes "hook-up" site from tort and contract liability based on site's purported failure to prevent minor from misrepresenting her age)
·  Federal Trade Commission v. Sili Neutraceuticals, LLC (Temporary Restraining Order), 2007 ILRWeb (P&F) 2445 [ND Ill] (FTC halts e-mails, product claims for weight-loss, anti-aging products)
·  Frees, Inc. v. McMillian, 2007 ILRWeb (P&F) 2433 [WD La] (Revenue losses held compensable under CFAA, irrespective of service interruption)
·  Hubb Systems, LLC v. microDATA GIS, Inc., 2007 ILRWeb (P&F) 2451 [ND Cal] (Using web site to promote harm in forum supports jurisdiction, even if site is passive)
·  Lennar Pacific Properties Management, Inc. v. Dauben, Inc., 2007 ILRWeb (P&F) 2429 [ND Tex] (Temporary restraining order granted in dispute concerning unauthorized use of plaintiff's mark in domain name)
·  Marten v. Godwin, 2007 ILRWeb (P&F) 2439 [3d Cir] (Student expelled from Internet-based educational program fails to establish that nonresident defendants expressly aimed their conduct at forum)
·  Pennsylvania, Commonwealth of v. Diodoro, 2007 ILRWeb (P&F) 2457 [Pa Super Ct] (Defendant criminally liable for accessing and viewing child porn on the Internet)
·  Pisciotta v. Old National Bancorp, 2007 ILRWeb (P&F) 2443 [7th Cir] (Risk of future identity theft, stemming from data breach, not a compensable injury under Indiana law)
·  Rivera v. NYP Holdings, Inc., 2007 ILRWeb (P&F) 2447 [NY Sup Ct] (Single publication rule no bar to separate print, web edition-based defamation claims)
·  Shaw Industries Group, Inc. v. DomainsByProxy, Inc., 2007 ILRWeb (P&F) 2441 [WIPO] (Authorized dealer had legitimate rights in domain name that incorporated complainant's mark, even though dealer sold competitor's products as well)
·  Silverstein v. E360Insight, LLC, 2007 ILRWeb (P&F) 2449 [CD Cal] (Domain name retailer initiating numerous sales in forum subject to jurisdiction there)
·  Video Software Dealers Association v. Schwarzenegger, 2007 ILRWeb (P&F) 2437 [ND Cal] (California violent video game restrictions deemed unconstitutional)

 
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Latest Pleadings, Motions, & Briefs 
 
·  Virgin Records America, Inc. v. Does 1-33 (Memorandum in Support of Motion to Quash Subpoena), 2007 ILRWeb (P&F) 2410 [ED Tenn] (College student, accused of infringing copyrights via P2P network, seeks to quash subpoena to university on grounds that disclosure of his personal information would violate the Family Educational and Privacy Rights Act)
·  Warner Bros. Records, Inc. v. Cassin (Memorandum of Defendant in Support of Motion to Dismiss Complaint), 2007 ILRWeb (P&F) 2226 [SD NY] (Merely making copyrighted works available does not infringe distribution right)
·  Warner Bros. Records, Inc. v. Cassin (Plaintiffs' Opposition to Defendant's Motion to Dismiss Complaint), 2007 ILRWeb (P&F) 2412 [SD NY] (Making a work available for distribution falls within the exclusive right of distribution)
·  Xiaoning v. Yahoo! Inc. (Defendant Yahoo! Inc.'s Motion to Dismiss Plaintiffs' Second Amended Complaint), 2007 ILRWeb (P&F) 2414 [ND Cal] (Yahoo seeks dismissal of suit brought by jailed Chinese journalists)

 
Search ILR's Pleadings database 

Latest Research from Pike & Fischer

Competitive Analysis: U.S. Mobile Broadband Services Strategies 2007
A number of emerging mobile applications will be significant drivers of revenue growth in the wireless services market. Many of these applications – particularly those that rely on mobile broadband technology -- will redefine the competitive position and strength of key players in the market. This analysis discusses the content, services, and applications employed and planned by the key players in the U.S. wireless market, and assesses the strengths, weaknesses, and potential for success of each. The reort also includes predictions on the competitive dynamics that will result from the emergence of mobile broadband services. AT&T, Sprint Nextel, Verizon, T-Mobile, Alltel, and others are covered. 

Fiber Optic Telecommunications Networks: Construction Contracts
This second volume of James Booth's treatise on fiber optic telecommunications networks will assist owners and contractors in preparing clear and viable contracts for the construction of elements of telecommunications systems. The author discusses the important elements of a construction contract from both the owner's perspective and the contractor's perspective, and offers alternate clauses to suit the varying needs of individual owners and contractors. The key elements of fiber optic construction agreements--from achieving clarity in describing the work to be performed to providing fairness and security in the termination clause--are covered in clear, easy to adopt text and incisive explanatory comments. 

View all Market Research Reports & Briefs

Events & Conferences 
 
Net Neutrality: Still on the Front Burner - Summit Audio Recording Now Available
It's not too late to catch the debate that took center stage at Pike & Fischer's Broadband Policy Summit.  Purchase this 75-minute audio recording and listen in as our panel of experts engage in a lively debate of the pros and cons of net neutrality and whether or not legislation is likely to pass in the 110th Congress.   You'll hear the very latest insights and opinions from top organizations in the thick of the net neutrality debate -- including Jim Cicconi of AT&T; Gigi Sohn, President of Public Knowledge; Mike McCurry, Partner, Public Strategies and Paul E. Misener of Amazon.com.  
Learn More   Order Now

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