Chapter 9 Law

Online Defamation

Federal and state statutes apply to certain forms of cyber torts, or torts that occur in cyberspace, such as online defamation. Under the federal Communications Decency Act (CDA), Internet service providers generally are not liable for defamatory messages posted by their subscribers.

Cybersquatting

Disputes arise when a person registers a domain name that is the same as, or confusingly similar to, the trademark of another and then offers to sell the domain name back to the trademark owner. This is known as cybersquatting, and it is illegal if the one registering, trafficking in, or using the domain name has a "bad faith intent" to profit from that mark. Anticybersquatting legislation is aimed at combatting the problem, but it has had only limited success.

Spam

Unsolicited junk e-mail accounts for about three-quarters of all e-mails. Laws to combat spam have been enacted by thirty-seven states and the federal government, but the flow of spam continues.

File-sharing technology

When file sharing is used to download others' stored music files or illegally copy movies, copyright issues arise. Individuals who download the music or movies in violation of copyright laws are liable for infringement. Companies that distribute file-sharing software or provide such services have been held liable for the copyright infringement of their users if the software or technology involved promoted copyright infringement.

The U.S. Safe Web Act

allows U.S. authorities to cooperate and share information with foreign agencies in investigating and prosecuting those involved in spamming, spyware, and various Internet frauds and deceptions. The act includes a safe harbor for Internet service providers.

The Controlling the Assault of Non-Solicited Pornography and Marketing (CAN-SPA M) Act

prohibits false and deceptive e-mails originating in the United States.

Trademark dilution

Owners of trademark try to prevent people from using their trademark so it does not take away from the trademarks uniqueness.

Licensing

Many companies choose to permit others to use their trademarks and other intellectual property online under a license. Licensing agreements frequently include restrictions that prohibit licensees from sharing the file and using it to create similar software applications.

Company-wide social media networks

Many companies today form their own internal social media networks through which employees can exchange messages about topics related to their work.

Copyrighted works online

Much of the material on the Internet (including software and database information) is copyrighted, and in order to transfer that material online, it must be "copied." Generally, whenever a party downloads software or music without authorization, a copyright is infringed.

Privacy

Numerous Internet companies have been accused of violating users' privacy rights. To sue for invasion of privacy, though, a person must have a reasonable expectation of privacy in the particular situation. It is often difficult to determine how much privacy it is reasonable for a person to expect on the Internet. Whenever a consumer purchases items online from a retailer, the retailer collects information about the consumer through "cookies." Consequently, retailers have gathered large amounts of data about individuals' shopping habits. It is not clear, however, whether collecting such information violates a person's right to privacy. Many companies establish Internet privacy policies, which typically inform users what types of data they are gathering and for what purposes it will be used. People have a reasonable expectation that online companies will follow their own privacy policies.

Social media passwords

Private employers and schools have sometimes looked at an individual's Facebook or other social media account to see if it included controversial postings such as racially discriminatory remarks or photos of drug parties. A number of states have enacted legislation that protects individuals from having to divulge their social media passwords. Such laws may not be completely effective in preventing employers from rejecting applicants or terminating workers based on their social media postings.

Meta tags

Search engines compile their results by looking through a Web site's meta tags, or key words, inserted into the HTML code. Using another's trademark in a meta tag without the owner's permission normally constitutes trademark infringement.

The Electronic Communications Privacy Act (ECPA)

The ECPA prohibits the intentional interception or disclosure of any wire, oral, or electronic communication. The ECPA includes a "business-extension exception" that permits employers to monitor employees' electronic communications made in the ordinary course of business (but not personal communications). The Stored Communications Act is part of the ECPA and prohibits intentional unauthorized access to stored electronic communications (such as backup data stored by an employer).

Legal issues

The emergence of Facebook and other social networking sites has created a number of legal and ethical issues. Law enforcement and administrative agencies now routinely use social media to detect illegal activities and conduct investigations, as do many businesses.

Digital Millennium Copyright Act

To protect copyrights in digital information, Congress passed the Digital Millennium Copyright Act (DMCA). The DMCA establishes civil and criminal penalties for anyone who bypasses encryption software or other antipiracy technologies, but provides exceptions for certain educational and nonprofit uses. It also limits the liability of Internet service providers for infringement unless the ISP is aware of the user's infringement and fails to take action.

Domain names

Trademark owners often use their mark as part of a domain name (Internet address). The Internet Corporation for Assigned Names and Numbers (ICANN) oversees the distribution of domain names. ICANN recently expanded the available domain names to include new generic top-level domain names (gTLDs).