BUS LAW Ch 9 - Internet Law, Social Media, and Privacy (Key Terms)

(Ch 9) Social Media

Forms of communication through which users create and share information, ideas, messages, and other content via the Internet. • Provide a means by which people can create, share, and exchange ideas and comments via the Internet.

(Ch 9) The Federal CAN-SPAM act

In 2003, Congress enacted the Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPAM) Act. • The legislation applies to any "commercial electronic mail messages" that are sent to promote a commercial product or service. • Significantly, the statute preempts state antispam laws except those provisions in state laws that prohibit false and deceptive e-mailing practices.

(Ch 9) State regulation of spam

In an attempt to combat spam, thirty-seven states have enacted laws that prohibit or regulate its use. • Many state laws that regulate spam require the senders of e-mail ads to instruct the recipients on how they can "opt out" of further e-mail ads from the same sources.

(Ch 9) Protection of Social Media Passwords

In recent years, employees and applicants for jobs or colleges have sometimes been asked to divulge their social media passwords. • By 2016, about half of the states had enacted legislation to protect individuals from having to disclose their social media passwords.

(Ch 9) Domain name dirtubution system

The Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit corporation, oversees the distribution of domain names and operates an online arbitration system. • Due to numerous complaints, ICANN recently overhauled (repair) the domain name distribution system.

(Ch 9) CASE: Yelp v. Hadeed Carpet Cleaning inc

Yelp, Inc., operates a social networking Web site that allows users to post and read reviews on local businesses. The site, which has more than 100 million visitors per month, features about 40 million local reviews. Yelp records and stores the Internet protocol address from which each posting is made. • Seven Yelp users posted negative reviews of Hadeed Carpet Cleaning, Inc., of Alexandria, Virginia. Hadeed brought an action in a Virginia state court against the anonymous posters, claiming defamation. • Hadeed alleged that the reviewers were not actual customers. Their statements that Hadeed had provided them with shoddy service were therefore false and defamatory. • When Yelp failed to comply with a subpoena seeking the users' identities, the court held the site in contempt. Yelp appealed, arguing that the subpoena violated the users' First Amendment rights.

(Ch 9) The ACPA makes cybersquatting illegal when both the following are true:

1. The domain name is identical or confusingly similar to the trademark of another. 2. The one registering, trafficking in, or using the domain name has a "bad faith intent" to profit from that trademark.

(Ch 9) Methods of File-Sharing

1) Peer-to-peer (P2P) networking → The sharing of resources (such as files, hard drives, and processing styles) among multiple computers without the requirement of a central network server. 2) Distributed network → A network that can be used by persons located (distributed) around the country or the globe to share computer files. 3) Cloud computing → The delivery to users of on-demand services from third-party servers over a network.

(Ch 9) Internet Service Providers (ISPs)

A business or organization that offers users access to the Internet and related services. • The Safe Web Act also provides a "safe harbor" for Internet service providers (ISPs). • The safe harbor gives ISPs immunity from liability for supplying information to the FTC concerning possible unfair or deceptive conduct in foreign jurisdictions.

(Ch 9) Internet law

A number of laws specifically address issues that arise only on the Internet. These issues include unsolicited e-mail, domain names, cybersquatting, and meta tags, as we discuss here.

(Ch 9) Typosquatting

A relatively new form of cybersquatting is typosquatting, or registering a name that is a misspelling of a popular brand name, such as googl.com or appple.com.

(Ch 9) Trademark dilution in the online world

As previously explained, trademark dilution occurs when a trademark is used, without authorization, in a way that diminishes the distinctive quality of the mark. • Unlike trademark infringement, a claim of dilution does not require proof that consumers are likely to be confused by a connection between the unauthorized use and the mark. • CASE EX. Candyland v. Internet Entertainment Group

(Ch 9) Spam

Businesses and individuals alike are targets of spam • Spam is the unsolicited "junk e-mail" that floods virtual mailboxes with advertisements, solicitations, and similar communications.

(Ch 9) ** Trademarks Dilution

Case ex. Hasbro, Inc (candyland) v. Internet Entertainment Group, Ltd. (1996)

(Ch 9) ** Patents

Patents: Temporary Comercial Monoply on designs and inventions Utility Patents: Most common type of patent - HOW SOMETHING WORKD Design Patens: How something is design Plant Patent: Patent available for new plant species Patent process What is Patentable? • Novel, useful and not obvious Patent search Claim and application to the US patent and trademark office (USPTO) • Claim-statement of what is new about the invention • Application includes: o Specification o Drawing o Oath/declaration Search and examination fee and application...

(Ch 9) General Rule

The Communications Decency Act (CDA) states that "[n]o provider or user of an interactive computer service shall be treated as the publisher or speaker of any information provided by another information content provider." • Exception: Although the courts generally have construed the CDA as providing a broad shield to protect ISPs from liability for third party content, some courts have started establishing limits to this immunity.

(Ch 9) Internet Companies Privacy Policies

The Federal Trade Commission (FTC) investigates consumer complaints of privacy violations. • The FTC has forced many companies, including Google, Facebook, Twitter, and MySpace, to enter an agreement consenting to give the FTC broad power to review their privacy and data practices. o It can then sue companies that violate the terms of the decree.

(Ch 9) Cybersquatting

The act of registering a domain name that is the same as, or confusingly similar to, the trademark of another and then offering to sell that domain name back to the trademark owner.

(Ch 9) Domain Names

The series of letters and symbols used to identify a site operator on the Internet; an Internet "address." • Such as"cengage.com"

(Ch 9) Protecting Consumer Privacy

To protect consumers' personal information, the Obama administration has proposed a consumer privacy bill of rights (see Exhibit 7-1). The goal is to ensure that personal information is safe online.

(Ch 9) ** Trademarks:

Trademark law protects a mark that indicates the source of goods • Service-mark - same concept, but for source of services • Trademarks/Service-marks - type of business property; must be used in commerce to have value • WHY? o Protect consumer... → Case ex. (1920( Coca-Cola CO v. The Koke Co. of America

(Ch 9) ** Statutory Protection of Trade-markers

a famous mark can be diluted by an identical mark or a similar mark. Applies to famous marks where the user of the mark by another is likely to weaken the consumer connection between famous mark and what it identifies. • Similar marks can dilute, especially when the marks provide related goods or compete in the same market o Starbucks v. Starbungs o Dumb Starbucks, what's the difference?

(Ch 9) The Electronic Communications Privacy Act (ECPA):

amended federal wiretapping law to cover electronic forms of communications. • The ECPA prohibits the intentional interception of any wire, oral, or electronic communication. • It also prohibits the intentional disclosure or use of the information obtained by the interception.

(Ch 9) Cookies

are invisible files that computers, smartphones, and other mobile devices create to track a user's Web browsing activities. • Cookies provide detailed information to marketers about an individual's behavior and preferences, which is then used to personalize online services.

(Ch 9) Meta tags

are key words that give Internet browsers specific information about a Web page. • Meta tags can be used to increase the likelihood that a site will be included in search engine results, even if the site has nothing to do with the key words.

(Ch 9) Cyber Torts

are torts that arise from online conduct. One of the most prevalent cyber torts is online defamation. • Recall that defamation is wrongfully hurting a person's reputation by communicating false statements about that person to others.

(Ch 9) CAN-SPAM act

prohibited false and deceptive e-mails originating in the United States. • After that, spamming from servers located in other nations increased. These cross-border spammers generally were able to escape detection and legal sanctions because the Federal Trade Commission (FTC) lacked the authority to investigate foreign spamming.

(Ch 9) ** Interllectual Property

the right to control how inventions and creations are used

(Ch 9) Goodwill (in business context)

the valuable reputation of a business viewed as an intangible asset.

(Ch 9) ** Original Work

• Creative effort applied • Need to be substantial effort o A scribble is copyrightable • Need to be particularly original o Books and movies with similar plots o Artwork with similar themes or styles • Must be created independently • "Spark" of creativity • Infringement: not uncommon

(Ch 9) Uses in Legal Process

• Impact on Litigation (the process of taking legal action): Social media posts now are routinely included in discovery in litigation. Such posts can provide damaging information that establishes a person's intent or what she or he knew at a particular time. o Like e-mail, posts on social networks can be the smoking gun that leads to liability. • Inpact on settlement agreements: Social media posts have been used to invalidate settlement agreements that contained confidentiality clauses. • Criminal Investigation: Law enforcement uses social media to detect and prosecute criminals. o A surprising number of criminals boast about their illegal activities on social media. o Police may also use social media to help them to locate a particular suspect or to determine the identity of other suspects within a criminal network. • Administrative Agencies: Federal regulators also use social media posts in their investigations into illegal activities.

(Ch 9) ** U.S Constitution, Article I, Section 8, Clause 8:

• to promote the progress of science nd useful arts, by securing for limited times to authors and inventors the exlusive right to their respective writings and discoveries;