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Developments of Note
FTC Settles Charges e-Comm
Provider Rented Customer Data
The Federal Trade Commission (FTC) settled the charges against an online shopping-cart software provider that rented personal information about its merchants' customers to third parties, in violation of the merchants' privacy policies. In re Vision I Properties, LLC, No. 042 3068 (FTC Mar. 10, 2005). The FTC complaint alleged that the provider's actions constituted an unfair practice in interstate commerce. The settlement bars disclosure of previously collected personal information, requires the company to remit the profit it made from selling the information, and bars future misrepresentations by the provider about the collection, use or disclosure of personally identifiable information. The press release is available at www.ftc.gov/opa/2005/03/cartmanager.htm.
Utah Enacts Revised
Anti-Spyware Law
The bill revamping the Utah Spyware Control Act was signed into law on March 17, with an effective date of May 2. H.B. 104 defines “spyware” as software on the computer of a Utah resident that “collects information about an Internet website at the time the Internet website is being viewed” in Utah, and uses that information “contemporaneously to display pop-up advertising on the computer.” The definition is further refined to exclude various functionalities, including diagnostic and security software and cookies, among other things. The new legislation revises the Spyware Control Act that became effective last year. The enforcement of the act was enjoined last year in WhenU.com v Utah (Utah 3d Judicial Dist. Ct. June 22, 2004), on the grounds that WhenU had shown a likelihood of prevailing on its claim that the legislation violated the Commerce Clause of the U.S. Constitution. The text of the legislation is available at www.le.state.ut.us/~2005/bills/hbillint/hb0104s01.pdf.
Texas Says Vonage VoIP Didn't Inform
Consumers Of 911 Service Access
The Texas Attorney General has filed suit against Voice over Internet Protocol (VoIP) service provider Vonage, alleging that the company violated Texas consumer laws when it failed to adequately inform subscribers of the service's limited access to emergency 911 calling features. State v. Vonage Holdings Corp., No. GV 500657 (Tex. Dist. Ct. Travis Cty Mar. 22, 2005). The complaint alleges that Vonage advertises its service as a replacement for traditional telephone service, but that the representation is false and misleading because, unlike 911 service provided by traditional telephone providers, Vonage emergency 911 service must be specifically requested, does not automatically inform a 911 call recipient of the caller's location and may, in some instances, give incorrect location information. The service also, the suit alleges among other things, may not be functional during electrical outages. The attorney general's press release, including a link to the complaint, is available at www.oag.state.tx.us/oagnews/release.php?id=850&PHPSESSID=q9h60u5ud7bcsfb90iq94sscg4.
Julian S. Millstein Edward A. Pisacreta Jeffrey D. Neuburger
FTC Settles Charges e-Comm
Provider Rented Customer Data
The Federal Trade Commission (FTC) settled the charges against an online shopping-cart software provider that rented personal information about its merchants' customers to third parties, in violation of the merchants' privacy policies. In re Vision I Properties, LLC, No. 042 3068 (FTC Mar. 10, 2005). The FTC complaint alleged that the provider's actions constituted an unfair practice in interstate commerce. The settlement bars disclosure of previously collected personal information, requires the company to remit the profit it made from selling the information, and bars future misrepresentations by the provider about the collection, use or disclosure of personally identifiable information. The press release is available at www.ftc.gov/opa/2005/03/cartmanager.htm.
Utah Enacts Revised
Anti-Spyware Law
The bill revamping the Utah Spyware Control Act was signed into law on March 17, with an effective date of May 2. H.B. 104 defines “spyware” as software on the computer of a Utah resident that “collects information about an Internet website at the time the Internet website is being viewed” in Utah, and uses that information “contemporaneously to display pop-up advertising on the computer.” The definition is further refined to exclude various functionalities, including diagnostic and security software and cookies, among other things. The new legislation revises the Spyware Control Act that became effective last year. The enforcement of the act was enjoined last year in WhenU.com v Utah (Utah 3d Judicial Dist. Ct. June 22, 2004), on the grounds that WhenU had shown a likelihood of prevailing on its claim that the legislation violated the Commerce Clause of the U.S. Constitution. The text of the legislation is available at www.le.state.ut.us/~2005/bills/hbillint/hb0104s01.pdf.
Texas Says Vonage VoIP Didn't Inform
Consumers Of 911 Service Access
The Texas Attorney General has filed suit against Voice over Internet Protocol (VoIP) service provider Vonage, alleging that the company violated Texas consumer laws when it failed to adequately inform subscribers of the service's limited access to emergency 911 calling features. State v. Vonage Holdings Corp., No. GV 500657 (Tex. Dist. Ct. Travis Cty Mar. 22, 2005). The complaint alleges that Vonage advertises its service as a replacement for traditional telephone service, but that the representation is false and misleading because, unlike 911 service provided by traditional telephone providers, Vonage emergency 911 service must be specifically requested, does not automatically inform a 911 call recipient of the caller's location and may, in some instances, give incorrect location information. The service also, the suit alleges among other things, may not be functional during electrical outages. The attorney general's press release, including a link to the complaint, is available at www.oag.state.tx.us/oagnews/release.php?id=850&PHPSESSID=q9h60u5ud7bcsfb90iq94sscg4.
Julian S. Millstein Edward A. Pisacreta Jeffrey D. Neuburger
Major Differences In UK, U.S. Copyright Laws
This article highlights how copyright law in the United Kingdom differs from U.S. copyright law, and points out differences that may be crucial to entertainment and media businesses familiar with U.S law that are interested in operating in the United Kingdom or under UK law. The article also briefly addresses contrasts in UK and U.S. trademark law.
The Article 8 Opt In
The Article 8 opt-in election adds an additional layer of complexity to the already labyrinthine rules governing perfection of security interests under the UCC. A lender that is unaware of the nuances created by the opt in (may find its security interest vulnerable to being primed by another party that has taken steps to perfect in a superior manner under the circumstances.
Strategy vs. Tactics: Two Sides of a Difficult Coin
With each successive large-scale cyber attack, it is slowly becoming clear that ransomware attacks are targeting the critical infrastructure of the most powerful country on the planet. Understanding the strategy, and tactics of our opponents, as well as the strategy and the tactics we implement as a response are vital to victory.
Legal Possession: What Does It Mean?
Possession of real property is a matter of physical fact. Having the right or legal entitlement to possession is not "possession," possession is "the fact of having or holding property in one's power." That power means having physical dominion and control over the property.
The Stranger to the Deed Rule
In 1987, a unanimous Court of Appeals reaffirmed the vitality of the "stranger to the deed" rule, which holds that if a grantor executes a deed to a grantee purporting to create an easement in a third party, the easement is invalid. Daniello v. Wagner, decided by the Second Department on November 29th, makes it clear that not all grantors (or their lawyers) have received the Court of Appeals' message, suggesting that the rule needs re-examination.