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 Sharona Hakimi

WTO Finds China’s Media Laws Violate International Trade Laws

On August 12, Ars Technica and the New York Times reported that the World Trade Organization ruled against China in a complaint by the United States regarding China’s limitation on imports of songs, movies, and books. The Chinese laws constituting trade violations require that many forms of imported media must be distributed by a single, state-owned company. The laws also limit foreign ownership of Chinese media companies and allow domestic companies to bypass trade censors. Ron Kirk, the US trade representative at the WTO conference in Geneva, said that the “decision promises to level the playing field for American companies working to distribute high-quality entertainment products in China so that legitimate American products can get to market and beat out the pirates.”

Hollywood Group Secures Preliminary Injunction against DVD Copying Software

On August 11, U.S. District Court Judge Marilyn Patel issued a preliminary injunction against RealNetworks, barring the company from selling its RealDVD copying software until a jury can decide the issue, CNET News reports. She stated that RealNetworks cannot use fair use as a defense under the Digital Millennium Copyright Act or the company’s license with the DVD Copy Control Association, but noted that “[i]t may well be fair use for an individual consumer to store a backup copy of a personally owned DVD on that individual’s computer.” While the decision is seen as a major victory for the Motion Picture Association of America, the Electronic Frontier Foundations views it as a setback for innovators and consumers.

David Kappos Sworn in as New Director of USPTO

Patently-O reports that on August 13, David Kappos was sworn as Director of the United States Patent and Trademark Office. Kappos addressed USPTO employees at the ceremony, pledging to work on “reducing the backlog of unexamined patent applications, cutting pendency dramatically, working off the mounting appeals backlog, [and] improving re-exam processing.” He also projected his goals to secure more stable financial backing or the USPTO, hoping there will be no need to utilize the Office’s new authority to use trademark funds to pay for patent operations. A video of Kappos’s swearing in ceremony is available on the blog Anticipate This!

By Sarah Sorscher

European Court of Justice Cracks Down on International News Search Engine

Slashdot reports that on July 16, Europe’s high court held in Infopaq International v. Danske Dagblades Forening that newspapers have a claim against a media monitoring service providing 11-word excerpts from newspaper articles. DDF, a group representing newspaper interests, has sued Infopaq, a service that searches newspaper articles for key words and then shares snippets with clients. The court ruled that the news articles were covered as copyrighted material by several directives of the European Parliament, and remanded the case to the national courts to determine whether the copyright laws in each state would be subject to the ruling.

By Sharona Hakimi

Amazon Threatened with Class Action for Remotely Deleting Orwell E-books on Kindles

On July 20, MediaPost News reported that the law firm KamberEdelson is readying a class action lawsuit on behalf of consumers against Amazon for removing George Orwell books on owners’ Kindles. Amazon remotely deleted the e-books from users after discovering that the company that added them to the online catalog did not have rights to the books. Amazon did issue refunds to the owners, but representatives of KamberEdelson argue that the action infringes on consumer’s property rights and violates Amazon’s user agreement. On Boing Boing, Cory Doctorow discusses the problems that remote deletion poses to Digital Rights Media as a whole.

British Judge Rules that Google is Not Liable for Defamatory Search Results

On July 20, the New York Times reported that a High Court judge in Britain ruled that Google cannot be held liable for defamatory material appearing in its search results. The case arose when Metropolitan International Schools, which runs Internet-based training courses, sued Google over negative comments posted on a third party web site that appeared as text blurbs in Google search results. The judge held that Google “has merely, by the provision of its search service, played the role of a facilitator.” While this decision is consistent with America and other European countries’ libel laws, this case is seen as a significant win for search engines because of England’s reputation as being sympathetic to libel claimants.

USPTO Places Its “Peer-to-Patent” Pilot Program on Hold

In 2007, the United States Patent and Trade Office partnered with New York Law School’s Center for Patent Innovation to create an online collaborative patent review program. After two years, the program has been suspended in order to evaluate its effectiveness, InformationWeek reports. The Center for Patent Innovation also cited the poor economy as a reason for the suspension. Hoping to decrease the backlog in the USPTO, the pilot program encouraged patent applicants to volunteer their submissions to undergo peer review. Peer-to-Patent issued its second anniversary report this July and announced it will stop accepting new applicants. Despite the hiatus, there is hope that the program will be re-launched in the future as David Kappos, Obama’s nominee for director of USPTO, has indicated his support of the program, calling it “the Patent Office of the 21st century.”

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.