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Developments of Note

By Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger
August 22, 2003

Major League Baseball Launches Webcasts

Seeking to broaden its viewing audience without alienating traditional broadcast partners, Major League Baseball is offering live, streamed Webcasts of games to high-speed Internet users via geolocation technology to prevent users from watching home teams play. The games, which account for about 40% of the overall baseball schedule, can be ordered for $14.95 a month or $79.95 for the season. Most teams will be blacked out in their local markets with a geolocation technology that reads a user's Internet protocol address and matches it with geographical data, although the technology is said to be susceptible to IP-spoofing and other glitches.


Recording Industry Aims At University File-Swappers

In the United States and Britain, the recording industry bolstered its efforts to reduce music file-sharing at universities, where half or more of network bandwidth is estimated to be used by students uploading or downloading music and other digital files.

On March 28, the British Phonographic Industry sent letters to every university in Britain warning administrators of the legal risks associated with copyright theft and urging them to crack down on illegal file-sharing. Several days later, the Recording Industry Association of America filed suit against four college students at three universities, alleging each student operated search engines that scoured their schools' local area networks for files to trade.


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Net Gambling Controversy Swirls Around Payments Systems

Twin bills that would regulate Internet gambling by banning use of credit cards, wire transfers and other payment services are gaining momentum, fueling controversy in the United States and abroad.

On March 13, the House Financial Services Committee approved H.R. 21, the Unlawful Internet Gambling Funding Prohibition Act: On March 18, the Senate Banking Committee heard testimony on S. 627, a Senate bill with the same working title. Both bills are aimed at cutting off U.S. customers' ability to wager at offshore gambling sites that are often beyond the reach of U.S. regulators.

At the same time, Rep. John Conyers Jr. (D-Mich) introduced opposing legislation to study how the states might regulate ' but not prohibit ' Internet gambling.

Many credit card issuers and online payment companies, including PayPal, voluntarily block online gambling transactions, sometimes under pressure from state regulators. PayPal, however, is under renewed pressure regarding these transactions, this time from a U.S. Attorney's office in Missouri that contends PayPal violated the USA Patriot Act between October 2001 and July 2002 by transmitting funds known to have come from a criminal offense. According to eBay, PayPal's parent company, prosecutors are seeking a settlement based on PayPal's earnings derived from transactions with gambling merchants.

The controversy has spread beyond U.S. borders. Concerned that proposed U.S. legislation would jeopardize revenue generated by its more than 100 licensed Internet casinos, the nation of Antigua and Barbuda contends the legislation would breach international trade protocols, and may challenge it at the World Trade Organization.


Developments of Note is written by Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger, partners in the New York office of Brown Raysman Millstein Felder & Steiner.

On March 28, the British Phonographic Industry sent letters to every university in Britain warning administrators of the legal risks associated with copyright theft and urging them to crack down on illegal file-sharing. Several days later, the Recording Industry Association of America filed suit against four college students at three universities, alleging each student operated search engines that scoured their schools' local area networks for files to trade.Twin bills that would regulate Internet gambling by banning use of credit cards, wire transfers and other payment services are gaining momentum, fueling controversy in the United States and abroad.

On March 13, the House Financial Services Committee approved H.R. 21, the Unlawful Internet Gambling Funding Prohibition Act: On March 18, the Senate Banking Committee heard testimony on S. 627, a Senate bill with the same working title. Both bills are aimed at cutting off U.S. customers' ability to wager at offshore gambling sites that are often beyond the reach of U.S. regulators.

At the same time, Rep. John Conyers Jr. (D-Mich) introduced opposing legislation to study how the states might regulate ' but not prohibit ' Internet gambling.

Many credit card issuers and online payment companies, including PayPal, voluntarily block online gambling transactions, sometimes under pressure from state regulators. PayPal, however, is under renewed pressure regarding these transactions, this time from a U.S. Attorney's office in Missouri that contends PayPal violated the USA Patriot Act between October 2001 and July 2002 by transmitting funds known to have come from a criminal offense. According to eBay, PayPal's parent company, prosecutors are seeking a settlement based on PayPal's earnings derived from transactions with gambling merchants.

The controversy has spread beyond U.S. borders. Concerned that proposed U.S. legislation would jeopardize revenue generated by its more than 100 licensed Internet casinos, the nation of Antigua and Barbuda contends the legislation would breach international trade protocols, and may challenge it at the World Trade Organization.


Developments of Note is written by Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger, partners in the New York office of Brown Raysman Millstein Felder & Steiner.

Major League Baseball Launches Webcasts

Seeking to broaden its viewing audience without alienating traditional broadcast partners, Major League Baseball is offering live, streamed Webcasts of games to high-speed Internet users via geolocation technology to prevent users from watching home teams play. The games, which account for about 40% of the overall baseball schedule, can be ordered for $14.95 a month or $79.95 for the season. Most teams will be blacked out in their local markets with a geolocation technology that reads a user's Internet protocol address and matches it with geographical data, although the technology is said to be susceptible to IP-spoofing and other glitches.


Recording Industry Aims At University File-Swappers

In the United States and Britain, the recording industry bolstered its efforts to reduce music file-sharing at universities, where half or more of network bandwidth is estimated to be used by students uploading or downloading music and other digital files.

On March 28, the British Phonographic Industry sent letters to every university in Britain warning administrators of the legal risks associated with copyright theft and urging them to crack down on illegal file-sharing. Several days later, the Recording Industry Association of America filed suit against four college students at three universities, alleging each student operated search engines that scoured their schools' local area networks for files to trade.


|

Net Gambling Controversy Swirls Around Payments Systems

Twin bills that would regulate Internet gambling by banning use of credit cards, wire transfers and other payment services are gaining momentum, fueling controversy in the United States and abroad.

On March 13, the House Financial Services Committee approved H.R. 21, the Unlawful Internet Gambling Funding Prohibition Act: On March 18, the Senate Banking Committee heard testimony on S. 627, a Senate bill with the same working title. Both bills are aimed at cutting off U.S. customers' ability to wager at offshore gambling sites that are often beyond the reach of U.S. regulators.

At the same time, Rep. John Conyers Jr. (D-Mich) introduced opposing legislation to study how the states might regulate ' but not prohibit ' Internet gambling.

Many credit card issuers and online payment companies, including PayPal, voluntarily block online gambling transactions, sometimes under pressure from state regulators. PayPal, however, is under renewed pressure regarding these transactions, this time from a U.S. Attorney's office in Missouri that contends PayPal violated the USA Patriot Act between October 2001 and July 2002 by transmitting funds known to have come from a criminal offense. According to eBay, PayPal's parent company, prosecutors are seeking a settlement based on PayPal's earnings derived from transactions with gambling merchants.

The controversy has spread beyond U.S. borders. Concerned that proposed U.S. legislation would jeopardize revenue generated by its more than 100 licensed Internet casinos, the nation of Antigua and Barbuda contends the legislation would breach international trade protocols, and may challenge it at the World Trade Organization.


Developments of Note is written by Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger, partners in the New York office of Brown Raysman Millstein Felder & Steiner.

On March 28, the British Phonographic Industry sent letters to every university in Britain warning administrators of the legal risks associated with copyright theft and urging them to crack down on illegal file-sharing. Several days later, the Recording Industry Association of America filed suit against four college students at three universities, alleging each student operated search engines that scoured their schools' local area networks for files to trade.Twin bills that would regulate Internet gambling by banning use of credit cards, wire transfers and other payment services are gaining momentum, fueling controversy in the United States and abroad.

On March 13, the House Financial Services Committee approved H.R. 21, the Unlawful Internet Gambling Funding Prohibition Act: On March 18, the Senate Banking Committee heard testimony on S. 627, a Senate bill with the same working title. Both bills are aimed at cutting off U.S. customers' ability to wager at offshore gambling sites that are often beyond the reach of U.S. regulators.

At the same time, Rep. John Conyers Jr. (D-Mich) introduced opposing legislation to study how the states might regulate ' but not prohibit ' Internet gambling.

Many credit card issuers and online payment companies, including PayPal, voluntarily block online gambling transactions, sometimes under pressure from state regulators. PayPal, however, is under renewed pressure regarding these transactions, this time from a U.S. Attorney's office in Missouri that contends PayPal violated the USA Patriot Act between October 2001 and July 2002 by transmitting funds known to have come from a criminal offense. According to eBay, PayPal's parent company, prosecutors are seeking a settlement based on PayPal's earnings derived from transactions with gambling merchants.

The controversy has spread beyond U.S. borders. Concerned that proposed U.S. legislation would jeopardize revenue generated by its more than 100 licensed Internet casinos, the nation of Antigua and Barbuda contends the legislation would breach international trade protocols, and may challenge it at the World Trade Organization.


Developments of Note is written by Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger, partners in the New York office of Brown Raysman Millstein Felder & Steiner.

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