Wednesday, July 29, 2009 ILR Home Page

Weekly Alert  
 
July 29, 2009 
 

Latest News
· 
Intellectual Property
· 
Internet Commerce
· 
Freedom of Speech
· 
Telecommunications
· 
Privacy & Security
· 
Taxation
·  Jurisdiction & Procedure
Latest Cases
Latest Pleadings, Motions, & Briefs
Latest Research from Pike & Fischer 
Events & Conferences
· 
Here Be Dragons: Bringing Broadband to the Unserved - New Webinar!
·  Trademark-Based Keyword Advertising - Order a Recording
Internet Law Attorney Directory
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Latest News 
 
INTELLECTUAL PROPERTY
 
Use of Website Photo on Critical 'Wanted' Postcard, Blog Was Transformative Fair Use

An individual who incorporated copyrighted photographs of insurance company executives—which were posted online—into postcards and critical blog posts could not be held liable for infringement because his use was a fair use, the U.S. District Court for the Northern District of California held July 17.  Sedgwick Claims Management Services, Inc. v. Delsman, 2009 ILRWeb (P&F) 2273.  Subscribers read more ...

Other Intellectual Property news: 
 
·  Maintaining Domain Name with Competitor's Trademark Did Not Constitute ACPA Violation
·  Federal Circuit Rules All Claims Not Valid in Patent for Online Learning System
·  Chief Judge Michel Says Commentary Reading Too Much Into Bilski Opinion
·  EU Seeks Comment on How Google Book Settlement Will Affect Rights Holders
·  Mary Kay Asserts Yahoo! E-Mail 'Shortcut' Ad-Link Feature Likely to Confuse Consumers
·  New Zealand Government Announces New Strategy to Address Repeat Online Infringers
·  Public Knowledge: Filtering of Copyrighted Works Ineffective, Harmful
·  Court Affirms Ruling That 'Hotels.com' Is Generic Term for Hotel Information, Services
·  Discussion Highlights Continuing Dispute Over Significance of Keyword Advertising

 
Subscribers may search ILR's Intellectual Property database

INTERNET COMMERCE 
 
EU Regulator Hails Major Concessions from Microsoft in Browser Antitrust Case

In a major development in the European Union antitrust regulator's case against Microsoft and its alleged illegal tying of Internet Explorer in the Windows operating system, the European Commission said July 24 it "welcomed" major concessions offered by the world's largest software developer designed to give equal footing to browser software competitors.  Subscribers read more ...

Other Internet Commerce news: 
 
·  FTC Rewrite of Product Endorsement Rules Could Be Finalized by Year End, Official Says
·  State Banking Official Permissibly Extended Usury Statute to Cover Web Loans Via Notice
·  Lifestyle Lift Cosmetic Surgery Company Settles 'Astroturfing' Charges in New York
·  Hacker Can Be Inside Trader Without Fiduciary Duty

 
Subscribers may search ILR's Internet Commerce database

FREEDOM OF SPEECH
 
South Carolina AG Argues CDA Does Not Shield Craigslist from Prostitution Probe

The Communications Decency Act does not shield the craigslist online classified service from prosecution for aiding and abetting prostitution, South Carolina Attorney General Henry D. McMaster asserted in a motion to dismiss filed July 21 in the U.S. District Court for the District of South Carolina.  craigslist, Inc. v. McMaster (Defendants' Motion to Dismiss), 2009 ILRWeb (P&F) 2214.  Subscribers read more ...

Other Freedom of Speech news: 
 
·  Net Postings on Porn Software Data Breach Not Covered by New Jersey Media Shield Law
 
Subscribers may search ILR's Freedom of Speech database
 

TELECOMMUNICATIONS 
 
Genachowski: FCC Needs 'Real Data' to Develop National Broadband Plan

Federal Communications Commission Chairman Julius Genachowski declined to characterize the hundreds of pages of public broadband policy related comments that continued to pour into the agency the week of July 20, saying only that the agency needs "real data" to do its work.  Subscribers read more ...

Other Telecommunications news: 
 
·  Senate Confirms Clyburn, Baker to Serve as FCC Commissioners
·  FCC Reports at Least 12 States Use 911 Fees for Other Purposes
·  Senate Approves Adelstein to Head Rural Utilities Service
·  EU Votes Frequency Legislation to Boost High-Speed Cell Phone Internet Network

 
Subscribers may search ILR's Telecommunications database

PRIVACY & SECURITY 
 
Opened, Web-Based E-Mail Held by ISP Is Not 'Backup' Subject to SCA Warrant Rule

Opened e-mails held by web-based e-mail services, which are not downloaded by recipients, do not qualify as "backup copies" and are not protected by the Stored Communications Act warrant rule, the U.S. District Court for the Central District of Illinois held July 15.  United States v. Weaver, 2009 ILRWeb (P&F) 2269.  Subscribers read more ...

Other Privacy & Security news: 
 
·  Missouri Enacts Data Breach Notice Law; Protected Information Includes Health Data
·  Leahy: Action on Data Security Will Be Top Legislative Priority
·  Alleged Use of Corporate Laptop to Access Offensive Websites Did Not Yield SCA Claim
·  Internet Security Experts to Advise White House on National Cyber Strategy
·  Public Interest Organization Offers Advice on Privacy Issues to Google in Book Search
·  OMB Seeks Comments on Proposed Changes to Tracking Cookie Ban for Federal Websites
·  All North Carolina Breaches Requiring Notice Must Be Reported to AG Under New Statute
·  Spanish DPA Announces Facebook Privacy Measures

 
Subscribers may search ILR's Privacy & Security database 

TAXATION
 
States Should Seriously Consider Enacting 'Amazon' Sales Tax Law, CBPP Report Says

The "Amazon Law" enacted by New York in 2008 to boost the collection of sales taxes legally due on purchases made over the Internet has already raised tens of millions of dollars for that state, and should be seriously considered in other states as well, the Center for Budget and Policy Priorities said July 23.  Subscribers read more ...

Other Taxation news: 
 
·  Early Findings of Swedish Investigation Show Major Tax Avoidance by Firms, Individuals
·  Rhode Island Tax Division Posts Definition of 'Retailer' for E-Commerce Tax Collection

 
Subscribers may search ILR's Taxation database 

JURISDICTION & PROCEDURE 
 
Offer to Sell Yacht in eBay Auction Did Not Yield Specific Jurisdiction in Bidder's State

A Massachusetts resident's offer to sell a yacht through the eBay online auction service did not create specific personal jurisdiction over the seller in Illinois where a bidder resided, the U.S. District Court for the Northern District of Illinois held July 9.  Foley v. Yacht Management Group, Inc., 2009 ILRWeb (P&F) 2265.  Subscribers read more ...

Other Jurisdiction & Procedure news: 
 
·  Hosting Website Ad for Florida Company Not Purposeful Availment of Florida Forum
 
Subscribers may search ILR's Jurisdiction & Procedure database

Latest Cases 
 
·  Biosafe-One, Inc. v. Hawks, 2009 ILRWeb (P&F) 2257 [SD NY] (Single e-mail from customer inquiring whether plaintiff's and defendant's websites were related is not enough to find actual confusion)
·  Blackboard, Inc. v. Desire2Learn, Inc., 2009 ILRWeb (P&F) 2279 [Fed Cir] (Federal Circuit rules all claims not valid in patent for online learning system)
·  Capitol Records, Inc. v. Alaujan (Electronic Order Granting Motion for Partial Summary Judgment on Defendant's Fair Use Defense), 2009 ILRWeb (P&F) 2277 [D Mass] (P2P user fails to meet burden of showing that his file-sharing was a fair use)
·  Cash America Net of Nevada, LLC v. Commonwealth of Pennsylvania, 2009 ILRWeb (P&F) 2247 [Pa Cmwlth Ct] (Pennsylvania's secretary of banking acted within the scope of his authority when he issued a notice that the state's payday lending law applies to out-of-state Internet lenders)
·  CE Resource, Inc. v. Magellan Group, LLC, 2009 ILRWeb (P&F) 2267 [ED Cal] (Maryland-based operator of interactive website subject to personal jurisdiction in California)
·  Family Watchdog, LLC v. Schweiss, 2009 ILRWeb (P&F) 2253 [MD Fla] (Placing a banner ad for a Florida corporation on an Indiana-based website is not itself a contact with Florida strong enough to support jurisdiction there)
·  Foley v. Yacht Management Group, Inc., 2009 ILRWeb (P&F) 2265 [ND Ill] (Seller of an item on eBay is not subject to specific personal jurisdiction in the state in which the eventual buyer resides without further ties to that jurisdiction)
·  Hotels.com, L.P., In re, 2009 ILRWeb (P&F) 2251 [Fed Cir] (Court affirms TTAB ruling that the term "hotels.com" is generic with respect to providing online information and reservation services)
·  Infopaq International A/S v. Danske Dagblades Forening, 2009 ILRWeb (P&F) 2275 [ECJ] (Reproduction of an 11-word extract from newspaper articles can infringe publishers' copyright)
·  Quinn v. Darr, 2009 ILRWeb (P&F) 2249 [NAF] (Since respondent's registration of "bradyquinn.com" predates complainant's common law rights, there is no possibility that respondent could have registered the domain name in bad faith)
·  Securities and Exchange Commission v. Dorozhko, 2009 ILRWeb (P&F) 2259 [2d Cir] (Computer hacking can constitute "deceptive" conduct under Section 10(b) of the Securities Exchange Act, even though the hacker did not breach a fiduciary duty in fraudulently obtaining material)
·  Sedgwick Claims Management Services, Inc. v. Delsman, 2009 ILRWeb (P&F) 2273 [ND Cal] (Blogger's use of photos for "wanted" poster was protected by fair use)
·  Southern Grouts & Mortars, Inc. v. 3M Co., 2009 ILRWeb (P&F) 2255 [11th Cir] (Failure to establish bad faith intent to profit dooms ACPA claim)
·  Thule Towing Systems, LLC v. McNallie, 2009 ILRWeb (P&F) 2245 [ED Mich] (Allegations that a former employee used a company-owned laptop to access inappropriate websites and misappropriate trade secrets did not support a claim under the SCA)
·  Too Much Media, LLC v. Hale, 27 ILR (P&F) 492 [NJ Super Ct] (Blogger who posted comments about a data breach allegedly caused by a company's software is not entitled to protection under New Jersey's media shield law)
·  United States v. Nestor, 2009 ILRWeb (P&F) 2271 [3d Cir] (A defendant who uses an adult intermediary, rather than direct contact with a child, to attempt to lure a child to engage in sexual activity can be held to violate 18 USC §2422(b))
·  United States v. Weaver, 2009 ILRWeb (P&F) 2269 [CD Ill] (A court can compel an ISP to comply with a trial subpoena and produce the contents of a subscriber's opened e-mails less than 181 days old; a warrant is not required)
·  Utah, State of v. Gallegos, 2009 ILRWeb (P&F) 2263 [Utah] (Utah's Internet Enticement Statute is not unconstitutionally vague)
·  Zaldivar v. T-Mobile USA, Inc., 2009 ILRWeb (P&F) 2261 [WD Wash] (Court lacks sufficient information to approve preliminary settlement of class action over text-messaging fees)

 
Subscribers may search ILR's Cases database

Latest Pleadings, Motions, & Briefs 
 
·  craigslist, Inc. v. McMaster (Defendants' Motion to Dismiss), 2009 ILRWeb (P&F) 2214 [D SC] (S.C. Attorney General argues that the CDA does not grant craigslist immunity from prosecution for aiding and abetting prostitution)
·  Estavillo v. Sony Computer Entertainment America (Complaint), 2009 ILRWeb (P&F) 2212 [ND Cal] (Plaintiff claims Sony violated his First Amendment rights by banning him from the PlayStation 3 Network)
·  Mary Kay, Inc. v. Yahoo! Inc. (Complaint), 2009 ILRWeb (P&F) 2210 [ND Tex] (Mary Kay alleges that Yahoo's new e-mail advertising system confusingly links e-mail text to advertisements in violation of the Lanham Act)
 
Subscribers may search ILR's Pleadings database 

Latest Research from Pike & Fischer

Cable Commercial Services Strategies: Analysis and Revenue Forecast, 2nd EditionNew!
Commercial services, especially those delivered to small- and medium-sized enterprises, are an increasingly critical imperative for U.S. cable operators. The revenue and margins delivered by these services will be the main growth engine for the industry over the next few years. In this report, we update our forecast of cable commercial services revenues. We also provide an overview of the commercial services strategies of the leading operators, and analyze their existing and emerging capabilities. Finally, we detail the critical success factors for the cable industry in targeting the SMB opportunity.  Learn More  Order Now

CenturyLink in the Broadband Big Leagues: Analysis and ForecastNew!
IPTV as a broad consumer solution is at a very early and arguably primitive stage in its development. Standards need to be developed, interoperability addressed and capital costs investigated. Dense urban areas or regions with an established fiber footprint will experience an earlier deployment--perhaps in the three-to-five-year range. In the meantime, a number of over-the-top video providers will latch onto available broadband networks with proprietary solutions that will promise to be "disruptive" to both legacy and IPTV offerings. However, P&F contends that proprietary solutions risk eventual obsolescence or buyout as fiber network and IPTV deployments manifest on a widespread scale. This report provides an outlook on the network buildouts, customer demand and opportunities in the IPTV-enabled world.  Learn More  Order Now

View all Market Research Reports & Briefs

Events & Conferences 
 

Here Be Dragons: Bringing Broadband to the Unserved – P&F Broadband Policy Summit Webinar Series
Wednesday, August 19, 2009 | 2:00 – 3:30 p.m. EDT

When navigators of the Age of Exploration mapped unexplored and unknown lands, they signified the limits of their reach with the notation, "Here Be Dragons." Today's broadband maps share this "end of the world" feeling; despite virtually universal acceptance of the concept that broadband connectivity is essential to full participation and success in the modern world, broadband service remains a phantom for tribal lands, rural communities, and inner-city neighborhoods. Join experts from the tribal, rural, and inner-city sectors to explore the potential benefits--for citizens, the telecommunications industry, and the nation--of full inclusion through broadband deployment to unserved areas, and the likely consequences of further inaction.  Learn More  Register Now



Trademark-Based Keyword Advertising: Potential Liability and Avenues for Relief – Order a Recording
The debate over the use of others' trademarks to trigger online advertisements is heating up. A recent ruling held that such use constitutes an actionable "use in commerce"; other cases are pending, including claims against advertisers and search engines, and even class action lawsuits. At the same time, Google is liberalizing its policy to permit use of third-party trademarks in some text ads. Order a recording of our interactive Webinar featuring legal experts from Google, Santa Clara Law School, Marriott International, and Wilson Sonsini Goodrich & Rosati.  Learn More  Order Now

Join the Broadband Policy Summit on LinkedIn
Participate in Summit conversations all year long and stay tuned about BPS VI by joining our new Group on LinkedIn.  Join now.

View all Events & Conferences

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