JOLT Digest

By Jyoti Uppuluri

Nokia Sues Apple for Patent Infringement Related to iPhone

On October 22, Nokia filed a suit against Apple in Delaware federal court, alleging that the iPhone infringes patents held by Nokia. The New York Times reports that the specific patents deal with the GSM and UMTS wireless standards utilized by the iPhone for voice and data communication, both of which were developed in part by Nokia. The Wall Street Journal notes that the suit might be a strategic response to the iPhone’s increasing momentum in Europe and Asia. Nokia could gain a two-percent royalty on each iPhone sold if the suit succeeds.

Tennessee Couple Is Entitled to Unmask Anonymous Blogger

On October 8, a Tennessee state court held in Swartz v. Does that a couple is entitled to know the identity of the individual who posted critical statements about them in an online blog. Ars Technica notes that the blogger’s claim to protection under Section 230 of the Communications Decency Act likely failed because the blog induced readers to spy on the Swartzes and report back on the blog. The Citizen Media Law Project points out that the legal standard used by the judge in this case was “highly protective of anonymous online speech,” but that the Swartzes provided “sufficient evidence in support of their claims of wrongdoing to outweigh the anonymous blogger’s right to anonymity.”

By Andrew Jacobs

Cyberattack on U.S. and South Korean Governments Stymies Investigators

Law enforcement officials are still investigating the cyberattacks that hobbled some U.S. and South Korean government websites for five days beginning July 4, the New York Times reports. The distributed denial of service attack caused 50,000 to 65,000 infected computers to jam websites of government agencies such as the Federal Trade Commission and the Secret Service with an extraordinary amount of traffic. Although independent and government investigations have led to computers in Miami, Florida, and the U.K., some experts think finding the ultimate source of the “amateurish” attack may prove to be impossible.

Microsoft Convinces Court IP Addresses Are Not Personally Identifiable Information

MediaPost News reports that in a recent class action case against Microsoft, a federal district court in Seattle held that IP addresses do not count as “personally identifiable information” (PII), a term regularly used in user agreements and online privacy policies. The June 23 opinion granted Microsoft’s motion for summary judgment on charges that it had violated its user agreement by collecting IP addresses during automatic software updates. Judge Richard Jones held that in order to be PII, a piece of data must directly identify “a person,” rather than “a computer,” as an IP address does. The decision is in tension with recent E.U. regulatory findings and a 2008 opinion from the New Jersey Supreme Court, according to MediaPost.

New Zealand Takes Second Swing at “Three Strikes”

On July 14, New Zealand’s Ministry of Economic Development introduced a revised version of its “three strikes” copyright provision aimed at curbing online infringement, Ars Technica and Billboard report. The original bill, which provided for the termination of internet service provider subscribers’ accounts as a penalty for repeat copyright infringement, was scrapped in March after public outcry and industry disagreement. The new version addresses due process concerns by allowing alleged infringers to respond to notices of infringement and to have their cases mediated before trial. Termination of infringers’ internet accounts remains a possible penalty under the revised law.

By Caity Ross

British Web Tracking Tool Violates European Union Privacy Laws

This Tuesday, the European Union issued a legal warning against Britain for not applying EU data privacy rules to Phorm, a new advertising technology that tracks the Web movements of internet users. BT, Britain’s largest service provider, used Phorm without its customers’ consent during 2006 and 2007. As reported in the New York Times, the European telecommunications commissioner stated that the “European privacy rules are crystal clear: a person’s information can only be used with their prior consent.” The Associated Press describes further actions the European Commission may take if Britain does not adequately enforce European privacy laws.

Proposed Bill Would Remove Sales Tax “Loophole” for Online Purchases

CNET News reports that a congressional bill expected to be introduced early next week “would rewrite the ground rules for mail order and Internet sales.” Under existing law, consumers are responsible for reporting and paying the amount owed for online and mail order purchases under their home state’s sales tax. According to CNET, “California’s Board of Equalization estimates the state lost $1.34 billion in 2003 because residents aren’t paying use taxes–and attributes $208 million of that to online purchases.” The proposed bill could incorporate the Streamlined Sales Tax Agreement, which encourages states to simplify their sales tax codes in order to help online retailers collect sales taxes more easily.

Swedish Anti-File Sharing Law Decreases Traffic, Increases Legal Downloads

Enforcement of Sweden’s Intellectual Property Rights Enforcement Directive (IPRED) law began on April 1, 2009. The Local notes that the law resulted in a 30% decrease in online traffic, as well as a doubling of legal music downloads. T3 reports that the in response to the IPRED enforcement, The Pirate Bay plans to offer a Virtual Private Network service that will make internet users more anonymous.

Maryland’s Highest Court Adopts Dendrite Standard for Unmasking Anonymous Forum Posters in Defamation Actions
By Evan Kubota –- Edited by Miriam Weiler

Independent Newspapers, Inc. v. Brodie
Court of Appeals of Maryland, February 27, 2009, No. 63
Opinion

On February 27th, the Court of Appeals of Maryland reversed a lower court’s order compelling discovery of the identities of five anonymous Internet forum posters in a defamation action. The court had granted certiorari on its own initiative.  While the court’s holding required it to consider only a pleading issue, it went on to offer guidance to lower courts in future cases involving anonymous Internet speakers in a defamation action.  In doing so, the court adopted the standard from Dendrite International, Inc. v. John Doe No. 3, 775 A.2d 756 (N.J. Super. Ct. App. Div. 2001).

Nixon Peabody’s Digital Media/Internet Law Blog offers analysis of the opinion, concluding that the Dendrite test is “emerging as the leading test across jurisdictions in anonymous Internet speaker cases.”  Ars Technica compares this case to other unsuccessful attempts to uncover the identities of anonymous Internet posters. The Washington Post quotes Paul Alan Levy, a lawyer for the consumer advocacy group that argued the case for Independent Newspapers, who characterizes the opinion as reaffirming the First Amendment right to speak anonymously.

Citizens for Greater Centreville links to the oral arguments and appellate brief in the case.

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