Internet Disclosures Can Cost Your Company
March 29, 2006
As the Internet opens pathways to doing business that could scarcely be imagined a decade ago, it also presents increasing dangers to public companies in the form of new liability risks. The instantaneous nature of the Internet can be both boon and bane to companies seeking to harness it to provide information to, and create goodwill with, shareholders. Not only can information be disseminated over the Net in a fraction of a second for worldwide viewing, but it has become a predominant source of investment news. Financial updates, product developments, information tidbits, even rumors ' all are now posted 24/7 on the Web for consumption by anyone, including investors who are poised to take advantage of the latest intelligence.
The Company's Right To Know v. The Anonymous Critic's Right To Remain Unknown
March 28, 2006
This question is becoming increasingly important with the proliferation of blogs and Web postings for corporate criticism ' from wakeupwal mart.com to www.googlereallysucks.blogspot.com. And whether companies and their in-house counsel pursue actions against bloggers in these cases involves more than the usual assessment of opportunity costs and the pure business interests of the company. There are limits to the rights of companies to compel an Internet Service Provider (ISP) to reveal the name of its customer, particularly when the ISP customer wishes to remain anonymous. This article explores what the courts are requiring companies to show before they will call for an ISP to divulge a blogger's identity and provides some guidelines in evaluating whether to pursue such a strategy.
Lawmakers Propose to Put Cell Phone Records Off-Limits
March 21, 2006
Selling or obtaining another person's cell phone records would become a crime in Georgia under a proposal that is moving through the Georgia Legislature. Cell phone records are being sold over the Internet, with attorneys among the top customers, according to some reports.
The Expanding Scope of Corporate Information Security Obligations
March 21, 2006
Protecting the security of corporate information and computer systems is becoming a major legal requirement for businesses. Driven by several recent highly publicized security breaches involving personal information, strong pressures are building for enhanced corporate obligations to implement appropriate information security measures to protect personal data and the people it describes.
USA PATRIOT Act Impasse: E-mail Interception Rules Need Congressional Attention, Too
March 21, 2006
When, if ever, can your Internet Service Provider ('ISP') legally intercept and then read your e-mail? Nearly anytime, according to almost every federal court that has tackled the issue. Due to outdated statutory language, courts have been inconsistent and tentative in applying the federal Wiretap Act to e-mail interception. In recent years, two circuits have flip-flopped on this crucial issue.
Implementing Best Practices Before and After a Security Breach Can Mitigate Corporate Risk
March 20, 2006
Victims of personal data security breaches are showing their displeasure by terminating relationships with the companies that maintained their data. A 'National Survey on Data Security Breach Notification,' released Sept. 26, 2005 by privacy think tank Ponemon Institute and sponsored by White & Case, indicates that 19% of Americans who have received notification that their personal data had been compromised due to a breach have terminated or plan to terminate their relationship with the company where the security breach occurred. Another 40% say that they are considering whether to take their business elsewhere as a result of the breach, and a whopping 58% say that the incident has decreased their trust and confidence in the company. Percentages set forth in this article are based on the total number of survey respondents who reported receiving a breach notification.
The Dismantling of the DMCA's Anti-Circumvention Provisions
March 01, 2006
According to a recent decision in the U.S. District Court for the District of Columbia, the use of an illicitly obtained password and username to enter an otherwise secure Web site does not violate the anti-circumvention provisions of the Digital Millennium Copyright Act ("DMCA"). In <i>Egilman v. Keller & Heckman LLP</i>, 2005 U.S. Dist. LEXIS 28245 (D.D.C. Nov. 10, 2005), the court held that the law firm Keller & Heckman and others working in concert with it who entered Dr. Egilman's Web site through the use of a username and password that they were not authorized to use had not violated the DMCA, regardless of how the username and password were obtained. This surprising decision runs counter to other decisions interpreting the DMCA and would appear to create a significant loophole to the DMCA's anti-circumvention provisions.
Downloading Copyrighted Songs on File-Sharing Network Is Not 'Fair Use'
March 01, 2006
In an important decision interpreting the fair use provision of the Copyright Act (17 U.S.C. §107), the U.S. Court of Appeals for the Seventh Circuit recently held that downloading full copies of copyrighted material without compensation to authors cannot be deemed "fair use." In <i>BMG Music v. Gonzalez</i>, 430 F.3d 888 (7th Cir. 2005), Judge Frank H. Easterbrook, writing for a unanimous three-judge panel, rejected the defendant's argument that she was immune from liability because she was merely sampling songs that she had downloaded from the KaZaA file-sharing network on a "try-before-you-buy basis."
Two Paths To Solid Online Research
March 01, 2006
In the world of e-commerce advising, the Internet is a powerful research tool for lawyers, and there's more than one route to conducting on-point, effective online research.