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Developments of Note

By By Julian S. Millstein, Edward A. Pisacreta and Jeffrey D. Neuburger
August 23, 2003

Virginia Governor Signs 'Toughest in the Nation' Anti-Spam Bill

On April 29, Virginia Gov. Mark R. Warner signed first-of-its-kind legislation that makes high-volume spamming a felony in that state. House Bill 2290 and Senate Bill 1139 amend the Virginia Computer Crimes Act's anti-spam provisions to make it a Class 6 felony to falsify header or routing information and to attempt to send unsolicited bulk e-mail exceeding 10,000 messages a day, 100,000 messages a month or 1 million a year. Also covered are e-mailings that generate $1,000 revenue for a single mailing or $50,000 from total transmissions. According to the governor's press release, the underlying statute has survived constitutional challenges and is grounded on e-mail passing through Virginia-based Internet service providers and so allows Virginia prosecutors to pursue criminal charges against spammers in other states and jurisdictions.


University Students Settle Music Piracy Charges with RIAA

Four university students, sued separately by the Recording Industry Association of America (RIAA) for operating search engines that scoured their schools' local area networks for files to trade, settled music piracy charges with the RIAA. Without admitting any guilt, each of the students agreed to make payments to the RIAA of between $12,000 and $17,000, in annual installments until 2006, and to shut down their search engines. The RIAA's actions against these individual file traders were the first of their kind but, according to the RIAA, any future such actions could lead to 'stiffer settlement obligations.'


Financial Services Regulators Issue Weblinking Risk Guidance

Four financial services regulatory agencies issued joint guidance for financial institutions operating on the Internet, to help them understand the risks associated with linking to third-party Web sites. The bulletin details the particular risks to an institution's reputation if customers are confused as to the source of products or services offered on linked third-party sites, as well as compliance risks if the linked sites, for example, offer less security and privacy protection than the financial institution. Among other things, the regulators urge institutions to use clear and conspicuous disclaimers and disclosures explaining their limited role and responsibility with respect to products and services offered on linked third-party sites. The April 23, 2003, bulletin, 'Weblinking: Identifying Risks and Risk Management Techniques,' is available at www.ots.treas.gov/docs/84263.pdf.

www.ots.treas.gov/docs/84263.pdf

Virginia Governor Signs 'Toughest in the Nation' Anti-Spam Bill

On April 29, Virginia Gov. Mark R. Warner signed first-of-its-kind legislation that makes high-volume spamming a felony in that state. House Bill 2290 and Senate Bill 1139 amend the Virginia Computer Crimes Act's anti-spam provisions to make it a Class 6 felony to falsify header or routing information and to attempt to send unsolicited bulk e-mail exceeding 10,000 messages a day, 100,000 messages a month or 1 million a year. Also covered are e-mailings that generate $1,000 revenue for a single mailing or $50,000 from total transmissions. According to the governor's press release, the underlying statute has survived constitutional challenges and is grounded on e-mail passing through Virginia-based Internet service providers and so allows Virginia prosecutors to pursue criminal charges against spammers in other states and jurisdictions.


University Students Settle Music Piracy Charges with RIAA

Four university students, sued separately by the Recording Industry Association of America (RIAA) for operating search engines that scoured their schools' local area networks for files to trade, settled music piracy charges with the RIAA. Without admitting any guilt, each of the students agreed to make payments to the RIAA of between $12,000 and $17,000, in annual installments until 2006, and to shut down their search engines. The RIAA's actions against these individual file traders were the first of their kind but, according to the RIAA, any future such actions could lead to 'stiffer settlement obligations.'


Financial Services Regulators Issue Weblinking Risk Guidance

Four financial services regulatory agencies issued joint guidance for financial institutions operating on the Internet, to help them understand the risks associated with linking to third-party Web sites. The bulletin details the particular risks to an institution's reputation if customers are confused as to the source of products or services offered on linked third-party sites, as well as compliance risks if the linked sites, for example, offer less security and privacy protection than the financial institution. Among other things, the regulators urge institutions to use clear and conspicuous disclaimers and disclosures explaining their limited role and responsibility with respect to products and services offered on linked third-party sites. The April 23, 2003, bulletin, 'Weblinking: Identifying Risks and Risk Management Techniques,' is available at www.ots.treas.gov/docs/84263.pdf.

www.ots.treas.gov/docs/84263.pdf

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