Wednesday, March 19, 2008 ILR Home Page

Weekly Alert  
 
March 19, 2008 
 

Latest News
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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
· 
Broadband Policy Summit IV - FCC Commissioner Copps Keynote Added
·  Best Web 2.0 Business Practices - CD Recordings Available
Internet Law Attorney Directory
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Latest News 
 
INTELLECTUAL PROPERTY
 
Turnitin.com Lawsuit Yields Rulings on Click-, Browse-Wrap Contracts, Copyright Fair Use 
 
The unauthorized copying of student-written papers, for inclusion in a database used to detect plagiarism, is a lawful fair use of the students' work, the U.S. District Court for the Eastern District of Virginia held March 11.  The court's discussion of copyright fair use, which drew heavily from the Ninth Circuit's discussion of Google thumbnail images in Perfect 10, Inc. v. Amazon.com, Inc. stressed that Turnitin.com's use of the student papers was a highly transformative one that did not impair the market value of the papers.  The court also enforced a clickwrap agreement assented to with an "I agree" button, and declined to enforce terms of use that were viewable by clicking on a hyperlink at the bottom of each web page. A.V. v. iParadigms, 2008 ILRWeb (P&F) 1431.  Subscribers read more ...

Other Intellectual Property news:
 
·  Practitioners Share New Strategies for Protecting Digital Assets Online
·  DMCA Claim Alleging Circumvention Without Infringement Evidence Fails
·  Employee's Post-Termination Control of Corporate Web Site Held to Violate ACPA
·  Punitive Damages Allegation Barred in Viacom-YouTube Copyright Dispute

 
Subscribers may search ILR's Intellectual Property database

INTERNET COMMERCE 
 
Employee's Copying of Ordinarily Accessible Corporate Data Not 'Unauthorized' for CFAA 
 
An employee's act of electronically copying important corporate documents to his personal e-mail account may have wronged the company, but was not an "unauthorized" use of the employer's computer for purposes of the Computer Fraud and Abuse Act if the employee was permitted to access the documents in the first place, the U.S. District Court for the District of Arizona held Feb. 20.  Shamrock Foods Co. v. Gast, 2008 ILRWeb (P&F) 1299.  Subscribers read more ...

 
Other Internet Commerce news: 
 
·  Spain Begins Enforcing Electronic Money Transfer Regulations, Restrictions
·  Missouri Considers Anti-Spam Legislation; Florida Spyware Companion Measure Filed
·  FTC Gains Default Judgment in Spyware Case
·  Advertiser to Pay Record $2.9 Million Penalty; FTC Charged Spam, Data Security, Deception

 
Subscribers may search ILR's Internet Commerce database

FREEDOM OF SPEECH
 
Online Classified Site Enjoys CDA Immunity to Suit Over Discriminatory Advertisements 
 
Online classified advertiser Craigslist, Inc. is entitled to immunity, under Section 230 of the Communications Decency Act, for publishing discriminatory housings ads submitted by its users, the U.S. Court of Appeals for the Seventh Circuit held March 14.  The court, speaking through Chief Judge Frank Easterbrook, ruled that Craigslist could claim immunity under Section 230(c)(1), which provides that "[n]o provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider."  Chicago Lawyers' Committee for Civil Rights Under Law, Inc. v. Craigslist, Inc., 2008 ILRWeb (P&F) 1419.  Subscribers read more ...

 
Other Freedom of Speech news: 
 
·  Refusal to Remove Third Party Content Does Not Destroy CDA §230 Immunity
·  Absent Compelling Evidence of Harm, Mature Video Game Minor Sales Ban Unconstitutional
·  CDA §230 Immunity Held Inapplicable to E-Mail Forwarder Who Added Commentary

 
Subscribers may search ILR's Freedom of Speech database
 

TELECOMMUNICATIONS 
 
FCC Auction Nets $19.6 Billion but Public Safety Spectrum Unsold 
 
The Federal Communications Commission March 18 completed its auction of spectrum in the 700 MHz band, raising more than $19.59 billion in winning bids, but failing to attract a winner for the D Block of spectrum that had special public safety obligations attached.  The total was almost twice what the commission had hoped to bring in and is sure to please lawmakers, who have already spent the first $10 billion on deficit reduction and other priorities.  Subscribers read more ...

 
Other Telecommunications news: 
 
·  Wiretap Documents Fail to Justify Telecom Immunity, House Democrats Say
·  Bush Vows to Veto House 'Compromise' on FISA as Democrats Allow Secret Session
·  House Backs 'Compromise' FISA Measure Without Immunity Language Sought by Bush

 
Subscribers may search ILR's Telecommunications database

PRIVACY & SECURITY 
 
House Panel Examines Privacy Protection for Commercial Data Used by Government 
 
A House panel March 11 probed the ability of federal privacy laws to effectively protect personal data that is used by the federal government but is collected, maintained, and sold by commercial data brokers.  The hearing before the House Oversight and Government Reform Subcommittee on Information Policy, Census and National Archives focused on the Federal Agency Data Protection Act (H.R. 4791), which was introduced by Subcommittee Chairman William Lacy Clay (D-Mo.) in December 2007.  Subscribers read more ...

 
Other Privacy & Security news: 
 
·  CDT Releases Principles Addressing Behavioral Advertising of Online Customers
·  Could Employee Use of Public Wireless Networks Jeopardize Data Security?
·  Senate Republicans Seek Details on Efforts to Secure Sensitive Data
·  Iowa Retail Breach Liability Provision Axed; Alaska, Mississippi Houses Pass Notice Bills
·  Data Breach Notification Measures Pass in South Carolina, Virginia, West Virginia

 
Subscribers may search ILR's Privacy & Security database 

TAXATION
 
Iowa Implements New Sales Tax Exemption for Purchases by Web Search Portal Firms 
 
The Iowa Department of Revenue has adopted a new rule that implements a sales and use tax exemption for equipment purchased by a qualifying web search portal business.  Under Regulations Section 701-230.10(423), published in the Feb. 27 issues of the Iowa Administrative Bulletin, several criteria must be met to qualify for the exemption.  Subscribers read more ...

Subscribers may search ILR's Taxation database 

JURISDICTION & PROCEDURE 
 
Allegations of Browser Manipulation Dismissed on Jurisdictional Grounds 
 
Absent evidence of actual contact with North Carolina, out-of-state businesses advertising on passive Internet sites and operating independent webpages cannot be haled into North Carolina court for harms allegedly connected to those sites, a North Carolina Superior Court held Feb. 26.  The court dismissed allegations of malicious Internet advertising on jurisdictional grounds.  Allegations that certain websites were forced on a North Carolina user, absent more, were not enough to satisfy jurisdiction, and the challenged websites, which were largely passive, did not independently qualify as North Carolina contacts.  Burgess v. Vitola, 2008 ILRWeb (P&F) 1305.  Subscribers read more ...

 
Other Jurisdiction & Procedure news: 
 
·  General Jurisdiction May Attach to Publisher Selling Arguably Defamatory Novel Nationwide
·  Internet Sales to Forum Residents Provide Necessary Contacts for Personal Jurisdiction
·  Purposeful, Unauthorized Trademark Use Targets Forum Where Registrant Resides

 
Subscribers may search ILR's Jurisdiction & Procedure database

CRIMINAL LIABILITY 
 
Supervised Release Computer Ban for Credit Card Skimming Conviction Is Overbroad 
 
A district court committed plain error when it imposed upon a defendant convicted for his part in a credit card fraud scheme a condition of supervised release that prohibited him from "access[ing] or possess[ing] any computer or computer-related devices in any manner," the U.S. Court of Appeals for the Ninth Circuit held Feb. 28.  Under 18 USC §3583(d), conditions of supervised release must be "reasonably related" to the purposes of punishment set forth in 18 USC §3553(a)(1) and "involve[ ] no greater deprivation of liberty than is reasonably necessary" to deter future criminal conduct, protect the public from further crimes, and promote rehabilitation of the defendant.  United States v. Barsumyan, 2008 ILRWeb (P&F) 1303.  Subscribers read more ...

 
Other Criminal Liability news: 
 
·  'Spam King' Enters Guilty Plea, Faces Up to 25 Years in Prison, Fines
 
Subscribers may search ILR's Criminal Liability database
 

Latest Cases 
 
·  Ace Mortgage Funding, Inc. v. Bradford, 2008 ILRWeb (P&F) 1429 [SD Ind] (Employee's post-termination control of corporate web site held to violate ACPA)
·  A.V. v. iParadigms, 2008 ILRWeb (P&F) 1431 [ED Va] (Turnitin.com lawsuit yields rulings on click-, browse-wrap contracts, copyright fair use)
·  Burgess v. Vitola, 2008 ILRWeb (P&F) 1305 [NC Super Ct] (Allegations of browser manipulation dismissed on jurisdictional grounds)
·  Chicago Lawyers' Committee for Civil Rights Under Law, Inc. v. Craigslist, Inc., 2008 ILRWeb (P&F) 1419 [7th Cir] (CDA bars Fair Housing Act suit against Craigslist based on alleged discriminatory ads posted by third parties)
·  Disney Enterprises, Inc. v. Welch, 2008 ILRWeb (P&F) 1301 [NAF] (Disney fails to meet its burden of establishing that domain name "tinkerbell.com" was used in bad faith; Disney's 10-year delay in filing the present complaint is evidence that it did not believe its claims to be warranted under the UDRP)
·  Entertainment Software Association v. Swanson, 2008 ILRWeb (P&F) 1423 [8th Cir] (State fails to establish causal relationship between violent video games and psychological dysfunction in minors)
·  Federal Trade Commission v. ERG Ventures, LLC (Final Order for Permanent Injunction), 2008 ILRWeb (P&F) 1115 [D Nev] (FTC gains default judgment in spyware case)
·  Global Royalties, Ltd. v. Xcentric Ventures, LLC, 2008 ILRWeb (P&F) 1293 [D Ariz] (Refusal to remove third party content does not destroy CDA §230 immunity)
·  Hershey Co. v. Cerreta Candy Co., 2008 ILRWeb (P&F) 1307 [MD Pa] (Internet sales to forum residents provide necessary contacts for personal jurisdiction)
·  John Doe Anti-Terrorism Officer v. City of New York, 2008 ILRWeb (P&F) 1229 [SD NY] (CDA §230 immunity held inapplicable to e-mail forwarder who added commentary)
·  Nordstrom Consulting, Inc. v. M&S Technologies, Inc., 2008 ILRWeb (P&F) 1413 [ND Ill] (DMCA claim alleging circumvention without infringement evidence fails)
·  Porter v. Bowen (Denial of Rehearing En Banc), 2008 ILRWeb (P&F) 1421 [9th Cir] (Rehearing denied in case challenging constitutionality of vote-swapping sites)
·  Shamrock Foods Co. v. Gast, 2008 ILRWeb (P&F) 1299 [D Ariz] (Employee's copying of ordinarily accessible corporate data not 'unauthorized' for CFAA)
·  Steinbuch v. Cutler, 2008 ILRWeb (P&F) 1407 [8th Cir] (General jurisdiction may attach to publisher selling arguably defamatory novel nationwide)
·  United States v. Barsumyan, 2008 ILRWeb (P&F) 1303 [9th Cir] (Supervised release computer ban for credit card skimming conviction is overbroad)
·  United States v. Carter, 2008 ILRWeb (P&F) 1417 [D Nev] (Affidavit supporting search warrant of defendant's residence need not mention possibility of wireless access or IP address spoofing)
·  United States v. Perrine, 2008 ILRWeb (P&F) 1415 [10th Cir] (No basis for suppressing evidence of child porn shared in chat room; no reasonable expectation of privacy in subscriber information)
·  United States v. ValueClick, Inc. (Stipulated Final Judgment), 2008 ILRWeb (P&F) 1425 [CD Cal] (Online advertiser will pay record-setting $2.9 million civil penalty to settle FTC allegations of CAN-SPAM violations)
·  Viacom International, Inc. v. YouTube, Inc., 2008 ILRWeb (P&F) 1411 [SD NY] (Punitive damages cannot be recovered under the Copyright Act)
·  Williams-Sonoma, Inc. v. Online Marketing Services, Ltd., 2008 ILRWeb (P&F) 1427 [ND Cal] (Purposeful, unauthorized trademark use targets forum where registrant resides)

 
Subscribers may search ILR's Cases database

Latest Pleadings, Motions, & Briefs 

·  Andersen v. Atlantic Recording Corp. (Nationwide Class Action Allegation; Plaintiff's Second Amended Complaint), 2008 ILRWeb (P&F) 1410 [D Ore] (Class action against the RIAA and the " Big 4" record companies on behalf of individuals who were subject to allegedly illegal and flawed investigations, were named in sham lawsuits or were threatened with suit for file-sharing, downloading or other similar activities, who have not engaged in violation of copyright laws.)

·  Mayfield v. United States (Brief of Amici Curiae American Civil Liberties Union of Oregon, et al. Supporting Plaintiffs-Appellees Urging Affirmance), 2008 ILRWeb (P&F) 1408 [9th Cir] (Civil liberties groups file amicus brief asking court to strike down a provision of the Patriot Act as unconstitutional)

 
Subscribers may search ILR's Pleadings database 

Latest Research from Pike & Fischer

The iTunes Movie Rental Service - Can it Enliven Apple TV? - New!
Apple's introduction of an online movie rental service through iTunes will enable consumers to view Web-based video on their televisions. The service uses the Apple TV set-top box, which the company hopes will heat up what so far have been lackluster sales of the device. In this competitor profile, we assess the opportunities and risks that Apple faces with the new iTunes venture -- especially its chances of competing against growing libraries of video-on-demand services from multichannel video providers.

Broadband Competition Outlook 2008 
This report offers up Pike & Fischer's projections for the coming year on competitive developments in the broadband services market. It includes forecasts on subscriber growth for various services and qualitative analysis of the impact that new applications such as mobile broadband applications, high-definition TV and VoIP will have on the marketplace. Eight bar and pie charts are included.

View all Market Research Reports & Briefs

Events & Conferences 
 
Broadband Policy Summit IV - Navigating the Digital Revolution

The Westin Embassy Row, Washington, D.C., June 12 -13, 2008
Reserve your seat today at Washington's preeminent annual policy forum.  BPS IV will once again play host to the nation's top federal, state, and private sector players who will discuss and debate the critical issues facing the broadband industry, including the pending 700 MHz spectrum auction, wireless broadband, network management/net neutrality, broadband deployment and more.  Confirmed keynotes include FCC Commissioner Michael J. Copps,  FTC Commissioner J. Thomas Rosch and Ambassador David Gross.  View the
Summit program and register by May 1st to secure early bird rates.  Group, academic and gov't rates available.  Interested in sponsoring?  Contact Todd Dale. 


Best Practices for Businesses Exploring, Exploiting, and Expanding in Web 2.0
Best-selling audio conference CD now available!
Don't miss out on this opportunity to gain practical guidance from industry professionals on how best to harness the power of Web 2.0 while mitigating legal risks. The recording of our Jan. 15 program, on CD, is now available--to revisit on your own, or share with colleagues. Your purchase includes the original presentation handout--PLUS the Q&A with our speakers. 
Order now.

View all Events & Conferences

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