Technology Law Update

Difficulty Of Reverse Engineering Online Procurement System Limits Requirement For Patent Infringement Pre-Filing Investigation

An award of sanctions under Federal Rule 11 for failure to conduct an adequate pre-filing investigation of patent infringement claims is not warranted where the infringement analysis of the defendant's online procurement system involved "somewhat intangible intellectual concepts and business methods and processes." De Technologies, Inc. v. Dell, Inc., No. 7:04cv000628, 2006 U.S. Dist. LEXIS 7553 (W.D. Va. Feb. 28, 2006) (opinion of magistrate) (unpublished).

Search Engine Image Thumbnails Infringe Copyright Owner's Right Of Display, But Inline Links To Full Images Does Not

The creation and display of image thumbnails by a search engine is a direct infringement of the image owner's right of public display. Perfect 10 v. Google, Inc., No. 2:04-cv-09484 (C.D. Cal. Feb. 17, 2006).

Summary Judgment On License Enforceability Warranted Upon Showing That Installation Of Software Was Impossible Without Clickwrap Assent

Uncontradicted evidence showing that a user could not install downloaded software without clicking "Yes" upon the presentation of clickwrap license terms supports the entry of summary judgment on the licensor's claim that the defendant, who admitted to using the software, assented to the terms of the license. Recursion Software, Inc. v. Interactive Intelligence, Inc., No. 3:03-cv-271, 2006 U.S. Dist. LEXIS 7314 (N.D. Tex. Feb. 27, 2006).

Seven Lawsuits Filed By Motion Picture Studios Against Newsgroups And Indexing Sites

Suits were filed against Web sites that maintain lists of files available for downloading, including isohunt.com, bthub.com torrentbox.com, as well as several USENET newsgroups.

News Coverage: http://news.zdnet.com/2100-9588_22-6042739.html

CardSystems Settles FTC Data Breach Charges With Agreement To Implement Security

Card payment processing services company CardSystems Solutions, Inc., has settled Federal Trade Commission charges stemming from a breach in the security of its computer systems that resulted in millions of dollars of unauthorized charges to consumer credit and debit cards. In re CardSystems Solutions, Inc., File No. 052 3148 (FTC Feb. 23, 2006).

British Telecom Regulators Turn Attention To VoIP

The Consultation document sets forth a number of proposals, including requirements for number portability and regulation of network reliability and emergency call capability.

Consultation Documents: http://www.ofcom.org.uk/consult/condocs/voipregulation/

Data Thief Gets Eight-Year Federal Sentence

According to the Justice Department, Scott Levine, the controlling owner of an e-mail advertising company, was convicted of gaining repeated unauthorized access to the computer system of Acxiom Corporation, a large repository for personal, financial and company data, and stealing more than one billion records, some of which were resold for use in an advertising campaign.

Press Release: http://littlerock.fbi.gov/dojpressrel/pressrel06/datatheft022206.htm

EU Approves Directive Requiring ISPs To Retain Two Years Of Customer Data

EU member nations will have 18 months to implement the Directive with legislation that requires Internet service providers and fixed-line and mobile operators to retain certain non-content information on their customers' communications for up to two years, and make the information available to law enforcement authorities.

News coverage: http://news.com.com/EU+data+retention+directive+gets+final+nod/2100-7348_3-6042032.html

Forum Selection Clause In End User License Agreement Held Valid Against Purchaser Of Software

A buyer’s signature acknowledging the express language of a purchase order that incorporates an End User Licensing Agreement (EULA) expresses the parties’ intent to be bound by the EULA and its exclusive forum selection clause.  Salco Distributors, LLC v. Icode, Inc., No. 8:05-CV-642-T-27TGW, 2006 U.S. Dist. LEXIS 9483 (M.D. Fla. Feb. 22, 2006).<br>

Forum Selection Clause In End User License Agreement Held Valid Against Purchaser Of Software

A buyer’s signature acknowledging the express language of a purchase order that incorporates an End User Licensing Agreement (EULA) expresses the parties’ intent to be bound by the EULA and its exclusive forum selection clause.  Salco Distributors, LLC v. Icode, Inc., No. 8:05-CV-642-T-27TGW, 2006 U.S. Dist. LEXIS 9483 (M.D. Fla. Feb. 22, 2006).<br>