Developments of Note

HHS adopts final HIPAA security rule

On Feb. 13, the Department of Health and Human Services announced adoption of final security standards for protecting individually identifiable health information when it is maintained or transmitted electronically. The standards implement some of the security requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The rule requires covered entities to implement 'administrative, physical and technical safeguards' to protect electronic protected health information in their care. The regulations take effect in April, but most covered entities have until April 2005 to comply. The Final Rule is available at www.cms.hhs.gov/regulations/hipaa/cms0003-5/0049f-econ-ofr-2-12-03.pdf. www.cms.hhs.gov/regulations/hipaa/cms0003-5/0049f-econ-ofr-2-12-03.pdf

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

Justice Department seizes Mod Chip site after DMCA guilty plea

On Feb. 26, the Justice Department assumed control of the Web site iSONEWS.com, whose former owner, David M. Rocci, pleaded guilty in federal court in December to conspiring to import, market and sell circumvention devices known as modification, or 'mod' chips, in violation of the Digital Millennium Copyright Act (DMCA). The government said mod chips are designed to circumvent copyright protections built into game consoles such as Microsoft's Xbox and Sony's Playstation 2, and allow users to play illegally copied games. Mod chip sellers have been the target of international anti-piracy efforts, but this case is reportedly the first mod chip prosecution under the DMCA. Rocci was scheduled to be sentenced this month in the Eastern District of Virginia.

FTC settles COPPA charges with Mrs. Fields Cookies, Hershey Foods

Mrs. Fields Cookies and Hershey Foods agreed to pay civil penalties of $100,000 and $85,000, respectively, to settle Federal Trade Commission charges that they violated the Children's Online Privacy Protection Act by collecting personally identifiable information from children without first obtaining parental consent. Each of the companies operated Web sites directed at children, and allegedly collected personal information from children under the age of 13, including full name, and home address and e-mail address. According to the FTC complaints, Mrs. Fields did so without obtaining any parental consent, while Hershey instructed children to have their parents fill out an online consent form without taking steps to ensure that the child's parent was providing the information.

HHS adopts final HIPAA security rule

On Feb. 13, the Department of Health and Human Services announced adoption of final security standards for protecting individually identifiable health information when it is maintained or transmitted electronically. The standards implement some of the security requirements of the Health Insurance Portability and Accountability Act of 1996 (HIPAA). The rule requires covered entities to implement 'administrative, physical and technical safeguards' to protect electronic protected health information in their care. The regulations take effect in April, but most covered entities have until April 2005 to comply. The Final Rule is available at www.cms.hhs.gov/regulations/hipaa/cms0003-5/0049f-econ-ofr-2-12-03.pdf. www.cms.hhs.gov/regulations/hipaa/cms0003-5/0049f-econ-ofr-2-12-03.pdf

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