May 2002 Volume 3, Issue 5
Editors Cherie W. Blackburn Robert W. Pearce, Jr. John C. McElwaine 1-800-237-2000 Nelson Mullins has more than 275 attorneys firm-wide, with over 25 attorneys having significant representation of e-commerce clients in areas including patent, copyright and trademark protection; business planning, securities and venture capital; and licensing, distribution and contract preparation. Atlanta Contacts Neil Grayson Cherie Blackburn Robert Pearce John McElwaine Charlotte Contact Jason Sprenkle Myrtle Beach Contact Franklin Daniels Columbia Contact Mark Dukes Greenville Contact Marvin Quattlebaum William Herlong Munich Contact Stefan Lode CyberWatch is an Internet Law Group news digest published as a service to Nelson Mullins’ clients and friends. The articles are summaries of particular developments in the law and are not intended to be a solicitation or to render legal advice. This publication can be considered advertising under applicable laws. CyberWatch is a trademark of Nelson Mullins Riley & Scarborough, L.L.P.
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Yahoo! Yodeler Cries Trademark Foul
The individual who used his stylized vocal arc to create the Yahoo! yodel has filed a $5 million lawsuit claiming he has not been paid by Yahoo! Wylie Gustafson, a singer in a country and western band, was hired in 1996 to create and record the signature yodel for Yahoo’s television commercials. Yahoo! has subsequently used his yodel in thousands of commercials for which he claims to have been not paid. A representative of the popular Internet portal declined to comment on the lawsuit. Credit: cnet.com
Cyberattacks on U.S. Seen Occurring
U.S. government officials warned that the Chinese military is searching for methods to disrupt key U.S. computer systems. In a recent classified report by the CIA that was leaked to the press, intelligence analysts have concluded that China is seeking to develop ways to attack and disrupt defense and civilian computer networks in the United States and Taiwan. The analysts have concluded that China has not yet developed the complete ability to create massive disruption. One analyst says that the Chinese military views cyberwarfare as a way to overcome America’s military superiority and to keep it from interfering in any conflict with Taiwan. Credit: washingtonpost.com
First Quarter Internet Sales Exceed Expectations
The pace of Internet sales accelerated in the first quarter of 2002, led by an improving economy, the increasing use of the Web by shoppers, and increased spending from prior Internet purchasers. Internet companies including amazon.com, 1-800flowers.com, bluenile.com, and bluefly.com, among others, provided evidence that online sales have been gaining new momentum. Bizrate.com estimated that this year’s first quarter Internet sales of new goods, not including travel, increased 41 percent to $11.6 billion. A separate report estimated online sales for travel of approximately $6 billion in the first quarter of 2002. The travel industry as a whole did particularly well with an 87 percent sales gain from a year ago. Credit: nando.net
California Attorney Guilty of Libel for Web Postings
The self-described dean of the California DUI defense bar was hit recently with a $1 million libel verdict in Los Angeles for defaming another drunken driving defense lawyer on a Web site. Edward “Fast Eddie” Kuwatch was hit with this verdict after a court found that he posted derogatory statements on his Web site about the ability and experience of the other DUI attorney, hurting that attorney’s professional reputation. Kuwatch wrote that the other attorney’s associates were inexperienced, poorly trained, and unwilling to take cases to trial. Kuwatch had previously said that he would only remove the message on his site if the complaining attorney could prove that he had bought Kuwatch’s book “California Drunk Driving Law.” The jury in Los Angeles reacted coolly to the defendant’s testimony and it is not yet known if Kuwatch will appeal this libel verdict. Credit: law.com
Instant Messaging May be Needed Fix for e-commerce
According to a recent report by the Gartner Group, the use of instant messaging (“IM”) has the potential to greatly increase e-commerce sales. The use of live, instant help could assist Internet sellers address the problem of online shoppers abandoning their purchase effort because immediate answers to simple questions are unavailable. E-mail has proven to be too slow and if a shopper has to log off the computer and use the phone to call with questions, the sale is delayed or usually lost altogether. Most Internet sites are not yet capable of handling a flood of IM messages but the use of artificial intelligence systems is expected to help with many of the questions being asked. Credit: Newsfactor.com
Google Search Engine May Remove Railroad Links
Germany’s National Railway Operator Deutsche Bahn AG recently sued the search engine Google over search results that allegedly link Web surfers to the legal articles. Deutsche Bahn filed the suit, arguing that Google assisted surfers in finding two online articles published by a German magazine which allegedly provided information on how to disable parts of the German railway system. Similar lawsuits are being prepared against Yahoo! and AltaVista, according to Deutsche Bahn. A spokesperson for Google said that they expected to have this problem resolved shortly. Credit: internetnews.com
Etch-A-Sketch Toy Maker Fined by Federal Regulators
The U.S. Federal Trade Commission (FTC) recently issued a $35,000 fine to the Ohio Art Company, which makes the Etch-A-Sketch doodling toy, for illegally collecting information from children. The FTC fined the company for violating the Children’s Online Privacy Protection Rule for collecting information from children before obtaining parental or guardian consent. In announcing the settlement with the Ohio Art Company, the FTC said that it was also sending warning letters to more than 50 other Internet operators regarding violating children’s privacy online. Credit: cnet.com
Chinese Now Second in Home Internet Access
A recent study by Nielsen/NetRatings shows that over 5 percent of China’s more than 1 billion people now have home Internet access. The report said that China now has more than 56 million home Internet users, which is greater than the numbers of users in all other countries other than the United States. The rise in home Internet access for the Chinese pushed the country above Japan, Germany, and Britain in overall user numbers. Credit: nzherald.co.nz
Mexican Legislators Fear Microsoft-Mexico Agreement
Microsoft has recently agreed to support the e-Mexico project, an initiative by the Mexican government to bring Internet access to 9 of 10 Mexicans over the next five years. Several legislators in Mexico City have prepared an attack against this new agreement between Microsoft and the Mexican government by stating that this could drive millions of new Internet users into Microsoft’s waiting arms. Microsoft has agreed to provide millions of dollars of free or discount price software, training and support to set up and run hundreds of e-Mexico public computer centers. With approximately 50,000 free or discounted copies of Microsoft software being offered, legislators state that the country will not be able to afford to reject the software and this will create a de facto monopoly for Microsoft in Mexico. Only approximately 4 million of Mexico’s 100 million people now have Internet access but under President Fox’s initiative, the government is determined to bridge the Mexican “digital divide.” Credit: nytimes.com
Norwegian Man Convicted of Racism on the Internet
A Norwegian was sentenced to 75 days in prison with 45 days suspended and two years probation after he was found guilty on five of six counts of violating Norway’s anti-racism law. The Norwegian was held responsible for the contents of his home page, even though it was posted on a server that was based in the United States and out of Norway’s jurisdiction. The individual, Tore W. Tvedt, is the founder of the Vigrid right-wing extremist group which, on its Internet site, professes a doctrine that mixes neo-Nazism, racial hatred, and religion, claiming to worship Odin and other ancient Norse gods. Credit: law.com
Bait-and-Switch Internet Site Shut Down
The U.S. Federal Trade Commission (FTC) shut down an e-mail scam that promised free video-game consoles but instead created a connection for the Web surfer to a pornographic online site that charged $3.99 per minute. Web users would receive an e-mail message saying that they had won a contest sponsored by Yahoo! for a Sony PlayStation 2 console, and they were instructed to download a program that would allow them to claim the prize. Instead they were connected to a pornographic Internet site that charged users $3.99 per minute through a 1-900 telephone line. The FTC is seeking to recover approximately $11 million that the spam operation collected between May and December of 2001. Credit: wired.com
Pamela Anderson Gains Partial Internet Sex Video Victory
The 9th U.S. Circuit Court of Appeals recently ruled that actress Pamela Anderson and her former husband Tommy Lee could stop the distribution everywhere but on the Internet of their 1997 hard-core “honeymoon” video. The promise of clips from the video continues to be a major draw on the Internet, but the recent ruling against the Internet Entertainment Group (IEG) is intended to end the non-Internet broadcasting of this video. Anderson and former boyfriend Brett Michaels had previously scored a major victory in a battle with IEG over yet another private sex tape. The appeals court has given Anderson and Lee an opportunity to claim damages for the video’s offline distribution. Credit: newsbytes.com
Washington State Employees Fired for Racy E-mails
The State of Washington has fired six workers at its State Labor Department and at least 14 others are being investigated for excessive use of work computers for personal e-mail, with much of the use involving sexually explicit messages. The Labor Department’s spokesperson said that the Department has very clear policies against this type of behavior but the investigation reached a level of abuse that even the Department did not expect. At least two of the fired workers are appealing through their union, claiming that others committed worse e-mail violations without being disciplined at all. Credit: usatoday.com
Jerry Falwell Sues Websites
The Reverend Jerry Falwell has not been amused by two sites on the Internet depicting him as a liar and a jerk. The two sites, “jerryfalwell.com” and “jerryfallwell.com,” were used by an Illinois resident who was angered by Falwell’s tirade following the September 11 attacks in which he blamed the attacks on feminists, gays, and lesbians, among others. Falwell has filed an action to have the two Web sites transferred to him. Credit: wired.com
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