JOLT Digest

By Sharona Hakimi

EU Court Advisor Supports Google Keyword Searches in Trademark Suit

On September 22, Reuters reported that an advocate general to the European Court of Justice, the EU’s highest court, stated that Google did not infringe trademark rights of luxury goods maker Louis Vuitton (LVMH). Google sells keywords that use the company’s trademarks, but Advocate General Poiares Maduro concluded that trademark protections do not extend to search advertising keywords because they are not considered a product sold to the public. ZDNet’s Richard Koman argues that this decision does not account for brand confusion arising from keyword searches, and demonstrates the court’s “misunderstanding of the Web as something tangential to ‘real’ commerce.” Although the Luxembourg-based court follows the opinions of its advocates general in most cases, the judges will give their final judgment at a later date.

Facebook Shuts Down Beacon Ad Software as Part of Lawsuit Settlement

Ars Technica reports that on September 18, Facebook announced it will shut down its controversial Beacon ad software as part of a settlement for a class-action privacy suit. The Beacon software, launched in November 2007, allowed off-Facebook activities to be published in users’ news feeds without their explicit consent. After over a year of legal disputes regarding the software, Facebook decided to settle with complaining users, agreeing to discontinue Beacon and offering $9.5 million to create a foundation that would “fund projects and initiatives that promote the cause of online privacy, safety, and security.” Facebook’s director of policy communications said that the company has “learned a great deal from the experience.” The settlement proposal still awaits a district court judge’s approval.

FCC Proposes Net Neutrality Rules for Internet Service Providers

The New York Times reports that on September 12, the chairman of the Federal Communications Commission proposed new regulations regarding net neutrality for Internet service providers. The proposal would bar providers from blocking or slowing Internet traffic on the basis of content. Consumer advocates of the policy say networks should not be able to deter users from accessing lawful Internet content or applications by restricting bandwidth. Wired’s Dylan Tweeny warns that the proposed rules may be difficult to enforce, stifle overall service due to capacity limitations, and decrease innovation in a market that has flourished without government intervention. The rules will formally be proposed in an open FCC meeting in October.

By Ian B. Brooks

Paris Hilton Obtains Small Victory in Ninth Circuit

WSJ Blogs reports that the Ninth Circuit gave Paris Hilton the green light on August 31 to proceed in her lawsuit against Hallmark for its use of her image and the phrase “That’s Hot” in a birthday greeting card. The court made note of the similarities between the card and Hilton’s appearance on the television show “The Simple Life.” In support of Hilton, the court stated that she “has at least some probability of prevailing on the merits before a trier of fact.” The case name is Hilton v. Hallmark Cards.

Cable Companies No Longer Capped at 30% Market Share

The Washington Post reports that on August 28, the Court of Appeals for the D.C. Circuit in Comcast v. FCC invalidated an FCC rule that capped the market share of cable companies at 30%. The FCC supported the rule because it believed that cable companies with market share larger than 30% would harm consumers. The court rejected the FCC’s rule in part because it failed to show how consumers would be harmed by the large cable companies in the current market, given the competition between cable, satellite, and fiber optic providers.

Texas Links DNA to Criminal Records

WSJ Blogs reports that on September 1, a new law took effect in Texas will link DNA evidence to sexual assault suspects’ criminal records. The link will be maintained regardless of whether the statute of limitations has passed or the suspect has been tried. The law’s supporters want to ensure harsher penalties to these suspects should they face legal troubles in the future, as the record would be available to parole boards and prosecutors. Critics of the law, including the ACLU, fear the potential abuse of due process rights.

Florida Bar Wants Access to Certain Applicant Facebook Profiles

The Florida Board of Bar Examiners will now be requesting access to the Facebook profiles of certain applicants on a case-by-case basis. The Board has identified a number of categories of applicants that it will require access from, including persons with a history of certain types of legal experience or substance abuse. The Citizen Media Law Project notes many of the privacy concerns related to the Bar’s decision.

By Andrew Jacobs

Marine Corps Bans Social Networking Sites

In a directive issued Monday, the U.S. Marine Corps banned the use of social networking sites on its Marine Corps Enterprise Network, Wired and InformationWeek report. Characterizing these sites — including Facebook, MySpace, and Twitter — as “a proven haven for malicious actors and content,” the Corps hopes the ban will protect the network from cyberattacks and keep adversaries from acquiring user-generated information leaks. The directive does not limit Marines’ access to social networking sites on non-military networks, and a follow-up press statement encouraged the use of social media by Marines on their own ISPs.

Senate Hears Debate on Radio Performance Rights

The Senate Judiciary Committee heard debate Tuesday on the proposed Performance Rights Act, which would compel terrestrial radio stations to pay royalties recording artists, Ars Technica reports. Under current copyright law, webcasters and satellite radio stations pay royalties to both a song’s writer and its performer, while terrestrial stations are only obliged to pay songwriters. The debate pits two powerful interest groups, among others, against each other: the National Association of Broadcasters (NAB) staunchly opposes the bill, while the Recording Industry Association of America (RIAA) has voiced its strong support.

FTC Takes New View of Online Privacy

The Wall Street Journal and The New York Times report new FTC consumer protection head David Vladeck plans to shift the agency’s approach to online privacy protection. In a New York Times interview, Vladeck states he hopes to address the “notice and consent” framework that he considers “no longer sufficient” online, as it has resulted in privacy disclosures that are rarely read or understood. He also plans to consider not only economic harm, but also the “dignity interest” that arises in online information collection. Though no new rulemaking is yet planned, updated FTC privacy guidelines are expected next summer.

By Tyler Lacey

Law Enforcement Using Cell Phone Data During Investigations, Privacy Laws Yet to Catch Up

On July 5, The New York Times posted an analysis of the use of cell phone forensics by law enforcement. According to the article, major cell phone service providers receive hundreds of requests each month from law enforcement agencies for data that can be used to track a user’s cell phone. Many of these requests are not backed by search warrants that require a showing of probable cause that a crime has been committed. The article reported that since September 12, 2001, federal prosecutors in New Jersey alone have used cell phone data without search warrants in 98 investigations, resulting in 83 prosecutions. The article also reports that civil liberties groups such as the ACLU are concerned about the loss of privacy caused by modern cell phone technology in combination with the failure of federal privacy law to properly catch up and regulate cell phone tracking.

RIAA Seeks Order Requiring Harvard Professor to Remove “Unauthorized and Illegal” Recordings From Website

On July 6, Wired.com reported that the Recording Industry Association of America (RIAA) is seeking a court order requiring Harvard Law School Professor Charles Nesson to remove recordings of depositions and telephone conversations regarding an ongoing music piracy lawsuit from his blog. The RIAA argues that the recordings are “unauthorized and illegal,” but Professor Nesson insists that the privacy laws that allegedly prevent him from posting the recordings are “outrageously unconstitutional.” Professor Nesson had previously failed to obtain permission to broadcast a live webcast of the trial.

Network Management Company Tells Canadian Agency Net Neutrality Doesn’t Exist; Regulations Inevitable

On July 6, the CBC reported that the Canadian Radio-television and Telecommunications Commission held hearings during which representatives from industry and consumer advocacy groups offered their views on the proper way to regulate how internet service providers (ISPs) can manage network traffic. Sandvine, a company that sells traffic management technology to ISPs, said that network congestion disproportionately affects certain types of internet services, and that traffic management could potentially alleviate the inequality. Sandvine argued that net neutrality does not exist because of these inequalities in network traffic, and that network traffic should be managed by ISPs to prioritize certain types of packets. The Public Interest Advocacy Centre stated that packet inspection of the type made possible by Sandvine raises privacy concerns because it allows ISPs to identify the type of applications used by their customers in addition to other personal information. The group warned “there will be abuse” if such prioritization is allowed.

By Andrew Jacobs

FTC Ready to Regulate Blogs

On June 21, The Washington Post reported that revised FTC advertising guidelines, set to be approved late this summer, will explicitly include blogs within their scope. The guidelines make clear that bloggers must disclose any compensation they receive for product endorsements and that they may be held liable for false claims made in those endorsements. According to the Post, while some bloggers worry about potential chilling effects, others believe that the guidelines will lead to more trust within the blogosphere and increased advertiser comfort with blogs.

City Removes Requirement that Job Applicants Disclose Social Networking Passwords

On June 22, the City Commission of Bozeman, Montana, rescinded a requirement that city job applicants disclose their usernames and passwords for websites such as Facebook, YouTube, and MySpace, the Billings Gazette reports. The requirement was part of Bozeman’s background check consent and release form. The commission’s decision came less than a week after a Montana television station discovered and reported on the policy, which quickly provoked additional coverage and criticism from tech media and legal blogs.

Google’s Italian Court Date Set Back

The AP reports that on June 23, the Italian trial of four Google executives for defamation and privacy law violations was postponed until September due to the absence of an interpreter. Italian prosecutors brought the case seeking to hold Google liable for allowing a video of an autistic child being beaten by his classmates to be posted on YouTube. Though an E.U. law similar to the U.S.’s 47. U.S.C. §230 immunizes internet service providers from liability based on third-party content, the suit was brought under an Italian penal statute which holds content providers responsible for user-generated material, according to the Proskauer Privacy Law Blog. Alessandro del Ninno, an expert on Internet law, says the case is the first of its kind in Europe.