May 2003

Volume 4, Issue 5

 

Editors

Cherie W. Blackburn

Robert W. Pearce, Jr.

John C. McElwaine

 Nelson Mullins Riley & Scarborough, L.L.P.

1-800-237-2000

www.nmrs.com

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

neg@nmrs.com

  Lloyd Farr

lgf@nmrs.com

  Charleston Contacts

Cherie Blackburn

cwb@nmrs.com 

Robert Pearce

rwp@nmrs.com

John McElwaine

jcm@nmrs.com 

Charlotte Contact

Jason Sprenkle

jxs@nmrs.com 

Myrtle Beach Contact

Franklin Daniels

fgd@nmrs.com 

Columbia Contact

Mark Dukes

mcd@nmrs.com 

Greenville Contact

Marvin Quattlebaum

amq@nmrs.com 

William Herlong

wdh@nmrs.com 

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.

Smokers Light Up Online Cigarette Sales Numbers

            With a carton of Marlboros costing only $14.95, postage included, from an Internet site, as compared to an average cost of $37.00 in the United States, it is no surprise that online cigarette purchases are booming.  One research group estimates that sales of cigarettes over the Internet will total more than $5 billion in 2005, versus roughly $2.5 billion in 2003.  For state governments, Internet cigarette sales could mean the loss of $1.4 billion in tax revenue.  In response, several states have sued online cigarette vendors for loss of tax revenue and for alleged sales to minors.  Philip Morris, manufacturer of numerous cigarettes in the United States, says that of the approximately 500 online cigarette sales sites it surveyed, not one complied with tax reporting requirements or safeguards required to prevent sales to minors.  A spokesperson for Philip Morris termed growth of online sales“alarming.”  Source: Wired.com 

Buffalo Spammer” Hit With $16.4 Million Judgment

            EarthLink, the third largest Internet Service Provider in the United States, won a $16.4 million federal court judgment and injunction against Howard Carmack, the so-called “Buffalo Spammer.” EarthLink had alleged that Carmack sent out 825 million unsolicited commercial e-mails using the EarthLink network. EarthLink is one of many Internet Service Providers that has sought to deter spammers from using their networks through a combination of litigation, technical solutions, and legislation. EarthLink and other network operators are also seeking criminal sanctions against spammers for sending unsolicited commercial e-mail, under the provisions of the Computer Fraud and Abuse Act.  Source: C/NetNews.com.

University Students Settle Online Music Piracy Charges

            Following the filing of lawsuits by the Recording Industry Association of America (RIAA), four University students have agreed to pay fines for sharing copyrighted music from their own machines using file sharing software on university campuses. As part of the settlement with the RIAA, the students agreed to shut down their respective network search services which were connected to campus networks.   Source: News.com

US Navy Saves Millions through Internet Auctions

            Using so-called “reverse auctions” through the Internet, the Naval Supply Systems Command (NSSC) has successfully concluded more than 80 bid events and saved an average of 20 percent in acquisition costs. In a reverse auction, vendors submitted an initial offer and then progressively bid directly against one another by improving their terms or lowering their prices on items to be supplied to NSSC. By being online and transparent, the vendors compete for the contract by lowering their prices in response to seeing other offers posted for products and services.   Source: FCW.com

Online Sex Site to Result in Charges at Air Force Academy

            The U.S. Air Force Academy in Colorado was still recovering from tremendous publicity regarding sexual assault scandals, when it announced an investigation regarding a cadet’s having organized group sex sessions through the Internet. A spokesman for the Academy said the Website used by the student has been shut down, and an investigation is continuing.  Source: Thewashingtonpost.com

New Zealand Government Pays $1 Million for Domain Name “NewZealand.com”

            In a controversial decision, New Zealand’s Tourism Board recently paid $1 million to an unnamed seller for the domain name “NewZealand.com.” New Zealand’s Tourism Minister said that he believed the board obtained the domain name at a bargain price considering that the South African government had offered $10 million for “SouthAfrica.com” and that “Korea.com” was sold for $5 million. Certain members of parliament said that the deal was “crazy” and that there was no way the taxpayers would be getting value for their money. The tourism board said the domain name would be an invaluable Internet portal for those interested in New Zealand tourism, commerce, or industry.  Source: Stuff.co.nz