CyberLaw Text and Cases

by Ferrera, Gerald R.; Lichtenstein, Stephen D.; Reder, Margo E. K.; Bird, Robert; Schiano, William T.

• ISBN13: 9780324164886
• ISBN10: 0324164882
• Edition: 2nd
• Format: Hardcover
• Copyright: 2003-07-07
• Publisher: South-Western College/West

Summary

This exciting text assists aspiring business managers in recognizing the legal issues relevant to maintaining and doing business in an e-commerce world. It covers relevant legal issues, applicable court decisions, federal and state statutes, administrative rulings, legal literature, and ethical considerations relating to Internet law.

Table of Contents

Preface	xviii
List of Cases	xxiv
Part 1 Introduction to Cyberlaw
Technology and Cyberlaw	3	(12)
Introduction	3	(1)
History of the Internet	4	(1)
History of the World Wide Web	4	(1)
How the Internet Works	5	(2)
Internet Addresses	5	(1)
The Language of the Internet	6	(1)
Accessing a Web Site	6	(1)
Transmitting Information	6	(1)
Netiquette	7	(1)
Regulation of Cyberspace	7	(4)
Business and Individual Users	9	(1)
Information Security	10	(1)
Ping of Death	11	(1)
Business Uses of Internet Technologies	11	(1)
Globalization	12	(1)
Law and Cyberspace	12	(1)
Summary	13	(1)
Key Terms	13	(1)
Manager's Checklist	14	(1)
Jurisdiction	15	(32)
Introduction	16	(1)
Categories of Jurisdiction	17	(3)
Traditional Principles of Jurisdiction	20	(3)
State Long-Arm Statutes and Personal Jurisdiction over a Nonresident Defendant	20	(1)
Application of the Due Process Clause over a Nonresident Defendant	21	(2)
Motion to Dismiss for Lack of Personal Jurisdiction over a Nonresident Defendant	23	(1)
Judicial History of Personal Jurisdiction	23	(2)
Constitutional Framework for Due Process under the International Shoe Company Case	23	(1)
Two-Pronged Analysis for Finding Personal Jurisdiction in the International Shoe Company Case	24	(1)
Personal Jurisdiction in the Online Environment	25	(1)
Passive Web Sites versus Interactive Web Sites	25	(1)
``Effects'' Test of Jurisdiction	26	(1)
Pavlovich v. The Superior Court of Santa Clara County and DVD Copy Control Assn., Inc.	26	(3)
General Jurisdiction	28	(1)
Specific Jurisdiction	28	(1)
Verizon Online Services, Inc. v. Ralsky	29	(4)
Sliding Scale Analysis of Personal Jurisdiction over a Nonresident E-Business	31	(1)
Forum Selection and Choice of Law Clause	32	(1)
Am. Online, Inc. v. Superior Court (Mendoza)	33	(2)
International Jurisdiction in Cyberspace	35	(1)
Who Governs the Online World?	35	(1)
Principles of National Enforcement	36	(1)
Yahoo!, Inc. v. La Ligue Contre Le Racisme et L'Antisemitisme	37	(3)
Summary	40	(1)
Key Terms	41	(1)
Manager's Checklist	41	(1)
Case Problems	42	(2)
Additional Readings	44	(3)
Part 2 Intellectual Property Issues in Cyberspace
Trademarks	47	(36)
Introduction	47	(1)
Intellectual Property	48	(1)
Trademarks	48	(4)
Service Marks	50	(1)
Trade Dress as a Trademark	50	(1)
Registering a Trademark, Trade Dress, or Service Mark with the USPTO	51	(1)
Duration of a Trademark	51	(1)
Trademarks as Distinctive: Either Inherently or Through a Secondary Meaning	52	(2)
Julia Fiona Roberts v. Russell Boyd	54	(4)
Trademark Infringement and Dilution	58	(1)
Trademark Infringement	58	(1)
Checkpoint Systems, Inc. v. Check Point Software Technologies, Inc.	59	(5)
Trademark Dilution	63	(1)
A.B.C. Carpet Co., Inc., et al. v. Naeini	64	(3)
Trademarks in Cyberspace: Cyberpiracy and Internet Technology	67	(1)
Anticybersquatting Consumer Protection Act (ACPA)	67	(1)
E & J Gallo Winery v. Spider Webs Ltd.	68	(5)
Internet Technology and Trademark Infringement	70	(3)
Playboy Enterprises Inc. v. Welles	73	(1)
International Regulation and Enforcement of Trademark Law	74	(5)
Key International Trademark Treaties	75	(1)
International Trademark Disputes of Internet Domain Names	76	(2)
``Metatagging'' and Misuse of Another's Trademark	78	(1)
Summary	79	(1)
Key Terms	80	(1)
Manager's Checklist	80	(1)
Case Problems	81	(1)
Additional Readings	82	(1)
Copyrights	83	(28)
Introduction	83	(3)
Copyright Act of 1976	86	(2)
Subject Matter of Copyrights	87	(1)
Requirements for Registration in the Copyright Office	88	(1)
Duration of Copyright	88	(1)
Constitutional Challenge to the Sonny Bono Copyright Term Extension Act	88	(1)
Eldred v. Ashcroft	89	(2)
Exclusive Statutory Rights of a Copyright Owner	91	(3)
Right to Reproduce the Work	91	(1)
Right of Distribution: Selling, Renting, or Leasing Copies	92	(1)
Right to Prepare Derivative Works	93	(1)
Right to Perform and Display Publicly a Copyright Work	94	(1)
Theories of Liability for Copyright Infringement	94	(1)
Direct Infringement	94	(1)
Contributory Infringement	95	(1)
Vicarious Infringement	95	(1)
Religious Technology Center v. Netcom On-Line Communication Services, Inc.	95	(3)
Limitations on Copyright Owners' Exclusive Rights	98	(2)
Fair Use Doctrine	98	(1)
First Sale Doctrine	99	(1)
Public Domain	99	(1)
Other Statutory Exemptions on Copyright Owners' Exclusive Rights	99	(1)
Remedies for Copyright Infringement	100	(1)
The Digital Millennium Copyright Act (DMCA)	101	(1)
Anti-Circumvention of ``Digital Locks,''	101	(1)
Copyright and Management Systems	101	(1)
Trafficking in Circumvention Tools	102	(1)
Safe Harbor for Online Service Providers Under the DMCA	102	(1)
Online Service Providers (OSPs)	102	(1)
Section 512 of the Digital Millennium Copyright Act (DMCA) and the Napster Case	103	(1)
International Regulation and Enforcement of Copyright Law	104	(3)
Key International Copyright Initiatives	104	(2)
Extraterritorial Enforcement of Domestic Copyrights	106	(1)
Summary	107	(1)
Key Terms	108	(1)
Manager's Checklist	108	(1)
Case Problems	109	(1)
Additional Readings	110	(1)
Business Methods Patents and Trade Secrets	111	(40)
Introduction	111	(1)
Business Methods Patents	112	(2)
Legal Framework of Patents	112	(2)
Agency Enforcement of Patent Laws	114	(1)
Patent Law as It Relates to Business Practices	114	(4)
Patentable Subject Matter	114	(3)
Types of Patents	117	(1)
What Claims Are Covered	117	(1)
First to Invent versus First to File a Patent	117	(1)
The Patentability of Software and Business Methods Patents	118	(2)
Software Patents	118	(1)
Business Methods Patents	119	(1)
State Street Bank & Trust Co. v. Signature Financial Group, Inc.	120	(3)
What May Be Done with the Patent	122	(1)
Marketel International, Inc. v. Priceline.com	123	(3)
Enforcing Patent Rights: Plaintiff's Case	126	(1)
Literal Infringement	126	(1)
Amazon.com, Inc. v. Barnesandnoble.com, Inc.	126	(3)
The Doctrine of Equivalents	128	(1)
Defendant's Case	129	(1)
Noninfringement	129	(1)
Invalidity	129	(1)
Remedies	130	(1)
The Future of Business Methods Patents: The Problems/Vulnerabilities in the Present System	130	(2)
Prior Art	130	(1)
Valuation Issues	131	(1)
Lock-Up on Information	131	(1)
The Patent Office	132	(1)
International Recognition and Enforcement of Business Methods Patents	132	(2)
Patent Cooperation Treaty	132	(1)
European Union (EU)	132	(1)
World Intellectual Property Organization (WIPO)	133	(1)
Japan	133	(1)
Extraterritorial Enforcement of Business Methods Patents	134	(1)
Trade Secrets: An Alternative Strategy to Patenting	134	(4)
Legal Framework of Trade Secrets	134	(2)
Trade Secret Law as It Relates to Business Practices	136	(1)
Trade Secret Litigation: Plaintiff's Case	137	(1)
Trade Secret Litigation Continued: Defendant's Case	138	(1)
DVD Copy Control Association v. Bunner	138	(5)
International Recognition and Enforcement of Trade Secret Laws	141	(2)
Summary	143	(1)
Key Terms	144	(1)
Manager's Checklist	144	(1)
Case Problems	145	(2)
Additional Readings	147	(4)
Part 3 Business and Financial Issues in Cyberspace
Online Contracting	151	(42)
Introduction	151	(4)
Why Is Online Contracting Law Important?	152	(1)
History and Development of Online Contracting	152	(1)
Terms of E-Commerce	153	(1)
E-Commerce Business Models	154	(1)
Benefits to Consumers	155	(1)
Fundamental Principles of Contract Law	155	(1)
The Requirements of a Contract	155	(6)
Mutual Assent	156	(2)
Consideration	158	(1)
Capacity	158	(1)
Legality	159	(1)
Form	160	(1)
Exceptions to the Statute of Frauds' Writing Requirement	160	(1)
Warranties, Disclaimers, and Terms of Use	161	(5)
Other Terms of Use: PayPal, Inc.'s User Agreement	163	(2)
Disputing the Terms of Use: Comb v. PayPal	165	(1)
The Developing Uniform E-Commerce Law: UCITA and UETA	166	(5)
History and Development	166	(1)
UCITA: A Controversial Measure	167	(1)
UCITA: Key Provisions	168	(2)
The UETA	170	(1)
Electronic Signatures	171	(2)
Current Electronic Signature Legislation: E-Sign	172	(1)
Software Licensing	173	(3)
Key Terms/Components of a Software Licensing Agreement	174	(2)
Click-Wrap, Shrink-Wrap, and Browse-Wrap Agreements	176	(1)
ProCD, Inc. v. Zeidenberg	177	(2)
Specht v. Netscape Communications Corp.	179	(3)
E-Commerce and Insurance: Insuring Online Contracting Risk	182	(1)
State Auto Property & Casualty Insurance Company v. Midwest Computers & More	183	(1)
American Guarantee & Liability Insurance Company v. Ingram Micro, Inc.	184	(3)
International Aspects of Electronic Contracting	187	(1)
UN Convention on Contracts for the International Sale of Goods	187	(1)
UNCITRAL Model Law on E-Commerce	187	(1)
EU Directive Concerning E-Commerce	188	(1)
Summary	188	(1)
Key Terms	189	(1)
Manager's Checklist	189	(1)
Case Problems	190	(2)
Additional Readings	192	(1)
Sales Tax in E-Commerce	193	(26)
Introduction	194	(4)
Taxation in Cyberspace	195	(1)
State Tax Jurisdiction Under the U.S. Constitution	195	(1)
Mail-Order Transactions	196	(2)
National Bellas Hess, Inc. v. Dept. of Rev. of the State of Illinois	198	(3)
Quill Corp. v. North Dakota	201	(6)
Physical Presence Nexus Test for E-Commerce	204	(2)
Internet Tax Freedom Act of 1998	206	(1)
Sales Tax and the Dormant Commerce Clause	207	(1)
A New Sales Tax System: The Streamline Sales Tax Project (SSTP)	207	(4)
Sales Tax Simplification Under the SSTP	209	(2)
Streamline Sales Tax Pilot: Sales Tax Compliance by an Outside Certified Service Provider (CSP)	211	(1)
Internet Tax Moratorium and Equity Act	211	(1)
International Internet Taxation	211	(4)
Organization of Economic Cooperation and Development Initiatives	211	(2)
National Initiatives Defining Permanent Establishment	213	(1)
European Union Value-Added Tax on Internet Sales	214	(1)
Summary	215	(1)
Key Terms	215	(1)
Manager's Checklist	215	(1)
Case Problems	216	(2)
Additional Readings	218	(1)
Online Securities Offerings and Transactions	219	(38)
Introduction	219	(1)
Raising Capital: Online Securities Offerings	220	(2)
What Is a Security?	220	(2)
Securities and Exchange Commission v. SG Ltd.	222	(4)
The Securities Laws: Governing the Issuance, Administration, and Transactions in Securities	224	(2)
Securities and Exchange Commission v. Abacus International Holdings Corp.	226	(2)
Haack v. Max Internet Communications, Inc.	228	(9)
Exemptions from These Laws: Small Business/Small Offering Exemption from Registration and Reporting Requirements	231	(1)
The Process of Conducting a Securities Offering	232	(5)
Hart v. Internet Wire, Inc. & Bloomberg L.P.	237	(2)
Online Transactions in Securities	239	(3)
Security Vulnerabilities	239	(1)
Quality Vulnerabilities	240	(1)
Enforcement Issues	241	(1)
International Aspects of Online Securities Offerings	242	(2)
Regulation of the International Movement of Capital	242	(1)
International Cooperation and Securities Law Enforcement	243	(1)
International Securities Fraud	244	(1)
Securities and Exchange Commission v. Gold-Ventures Club	244	(5)
Investments in Offshore Securities and the Internet: Regulation S	247	(1)
International Internet Securities Offerings and ``Blue Sky'' Laws	248	(1)
Summary	249	(1)
Key Terms	249	(1)
Manager's Checklist	249	(1)
Case Problems	250	(2)
Additional Readings	252	(5)
Part 4 Special Issues in Cyberspace
Privacy	257	(54)
Introduction	257	(1)
Sources of the Right to Privacy	258	(2)
U.S. Constitution	258	(2)
State Constitutions	260	(1)
Attorney-Client Privilege and the Use of E-Mail	260	(1)
Common Law Torts for Invasion of Privacy	260	(1)
Intrusion upon Seclusion	261	(1)
Katz v. United States	261	(6)
Privacy in the Use of Cellular Phones	265	(1)
Public Disclosure of Private Facts Causing Injury to Reputation	265	(1)
Publicity Placing Another in a False Light	266	(1)
Misappropriation of a Person's Name or Likeness Causing Injury to Reputation	266	(1)
Federal Privacy Laws	267	(3)
Privacy Protection Act (PPA)	268	(1)
Privacy Act of 1974	268	(1)
Cable Communications Protection Act (CCPA)	269	(1)
Video Privacy Protection Act (VPPA)	270	(1)
Telephone Consumer Protection Act (TCPA)	270	(1)
Federal Legislation: Credit and Financial Records	270	(1)
The Fair Credit Reporting Act (FCRA) of 1970	270	(1)
The Computer Fraud and Abuse Act (CFFA) of 1986	271	(1)
Federal Legislation: Privacy in Personal Financial Information	271	(3)
Gramm-Leach-Bliley Act of 1999	272	(1)
Notice and Consent Requirements: Nonaffiliates	273	(1)
Identity Theft	273	(1)
Pretexting	274	(1)
Federal Legislation: Privacy in Health and Medical Records	274	(1)
Health Insurance Portability and Accountability Act (HIPAA) of 1996	274	(1)
Privacy Protection for Children from the Collection of Online Personal Information	275	(6)
The Children's Online Privacy Protection Act of 1998 (COPPA)	275	(1)
COPPA: Safe Harbor	276	(1)
The Electronic Communications Privacy Act (ECPA) of 1986	276	(4)
Carnivore	280	(1)
In Re DoubleClick Inc., Privacy Litigation	281	(3)
Title III: The Pen Register Act	284	(1)
Privacy and Spam (``Unsolicited Commercial E-Mail'')	284	(4)
Is Self-Regulation Working?	286	(2)
Cyber Promotions, Inc., v. America Online, Inc.	288	(2)
CompuServe, Inc., v. Cyber Promotions	290	(2)
Workplace Privacy	292	(2)
How Common Is the Problem of Employee Inappropriate Computer Use?	293	(1)
Michael A. Smyth v. Pillsbury Company	294	(3)
Impact of the ECPA on Workplace Privacy	297	(1)
Robert Konop v. Hawaiian Airlines	297	(2)
Conclusion	299	(2)
Global Issues of Privacy in Cyberspace	301	(5)
European Union Directive on Privacy Protection	301	(1)
The United States/European Union Safe Harbor Agreement	302	(2)
Other National Efforts at Regulating Internet Data Privacy	304	(2)
Summary	306	(1)
Key Terms	306	(1)
Manager's Checklist	307	(1)
Case Problems	307	(2)
Additional Readings	309	(2)
Obscenity	311	(32)
Introduction	311	(1)
First Amendment Protection: Freedom of Expression	312	(1)
The Test for Obscenity	313	(1)
Miller v. California	313	(3)
Applying the Three-Prong Miller Test to Material Transmitted Online (Cyberporn)	315	(1)
United States v. Thomas	316	(3)
Proving the Case	319	(1)
Government Regulation of Cyberporn	319	(3)
Allowable Defenses	320	(1)
The CDA Under Constitutional Attack	321	(1)
U.S. v. Playboy Entertainment Group, Inc.	322	(2)
Child Pornography	324	(4)
Federal Regulation of Child Pornography	324	(4)
Ashcroft v. American Civil Liberties Union	328	(4)
Children's Internet Protection Act (CIPA) of 2000	331	(1)
State Regulation	331	(1)
The Consenting Adults Defense in Child Pornography	332	(1)
Osborne v. Ohio	332	(1)
Employees' Access to Adult-Oriented Web Sites	333	(1)
Urosky et al. v. Gilmore	334	(2)
International Regulation of Obscenity	336	(3)
The Act of State Doctrine and the Regulation of Obscene Transmissions	336	(1)
Obscenity as a Global Concept	337	(1)
Multilateral Treaties Regulating Obscenity	337	(1)
U.S. Views on the Importation and Exportation of Cyberporn	338	(1)
Other National Efforts to Regulate Internet Obscenity	338	(1)
Summary	339	(1)
Key Terms	339	(1)
Manager's Checklist	339	(1)
Case Problems	340	(1)
Additional Readings	341	(2)
Defamation	343	(24)
Introduction	343	(2)
The Tort of Defamation	345	(1)
Defamation in Cyberspace: Slander or Libel?	345	(3)
Elements of Proof Required for Defamation	345	(1)
Defenses to Defamation	346	(2)
Liability of Online and Internet Service Providers for Defamation	348	(1)
Immunity for Service Providers for Offensive Material	349	(1)
Zeran v. America Online, Inc.	350	(2)
Sidney Blumenthal v. Matt Drudge and America Online, Inc. (AOL)	352	(4)
Anonymous Speech and Defamation	356	(1)
SLAPP Suits	357	(1)
International Regulation of Online Defamation	358	(3)
International Efforts to Regulate Cyber-Defamation	358	(1)
Internet Service Providers and International Acts of Defamation	359	(1)
Defamation and the International Choice of Law	360	(1)
Ellis v. Time	361	(1)
Summary	362	(1)
Key Terms	363	(1)
Manager's Checklist	363	(1)
Case Problems	364	(2)
Additional Readings	366	(1)
Internet and Information Security	367	(38)
Introduction	367	(1)
The Challenges of Internet and Information Security	368	(1)
The Goals of Internet and Information Security	369	(9)
Methods and Legal Challenges to Ensuring Enterprise and Communications Security	371	(1)
Transactional Security Systems	372	(5)
First Amendment	377	(1)
Universal City Studios, Inc., Paramount Pictures, Metro-Goldwyn-Mayer, Tristar Pictures, Columbia Pictures, Time Warner Entertainment, Disney Enterprises, Twentieth Century Fox v. Corley	378	(4)
Regulating the Export of Cryptography Products	381	(1)
Junger v. Daley	382	(2)
Bernstein v. U.S. Department of Commerce	384	(3)
Judicial Opinion	385	(1)
Fourth Amendment	385	(2)
Kyllo v. United States	387	(5)
United States v. Scarfo	392	(3)
Fifth Amendment	395	(1)
Karn v. Department of State	395	(2)
International Aspects of Internet and Information Security	397	(4)
Global Network and Information Security	397	(1)
Encryption and Cryptography Systems	398	(3)
Summary	401	(1)
Key Terms	401	(1)
Manager's Checklist	402	(1)
Case Problems	402	(2)
Additional Readings	404	(1)
Internet and Computer Crime	405	(40)
Introduction	405	(1)
The Nature of Computer Crime	406	(4)
What Are Computer and Internet Crimes?	407	(1)
The Impact on Law Enforcement	408	(2)
The E-Commerce Risks	410	(1)
The Role of Computers in Crime: Crimes and Perpetrators	410	(1)
How Computers Are Used in the Commission of Crimes	410	(1)
Crimes Being Committed in Today's Networked Environment	411	(1)
Crimes Against Persons or Businesses	412	(1)
United States v. Sample	412	(5)
Ashcroft v. Free Speech Coalition	417	(5)
Crimes Against Property	421	(1)
United States v. Morris	422	(1)
United States v. Czubinski	423	(4)
Crimes Against Intellectual Property	426	(1)
United States v. Rothberg	427	(8)
Other Federal Laws Invoked in Internet and Computer Crime Prosecutions	431	(2)
Crimes Against Government or Government Functions	433	(2)
Corporate Forensics and the Impact of the Internet: Gathering and Preserving Evidence	435	(2)
International Aspects of Internet Crime	437	(4)
Council of Europe Convention on Cybercrime	438	(1)
European Commission Communication on Computer-Related Crime	439	(1)
Successful International Cooperation Combating Cybercrime: The Bloomberg Example	440	(1)
Summary	441	(1)
Key Terms	442	(1)
Manager's Checklist	442	(1)
Case Problems	443	(1)
Additional Readings	444	(1)
Appendices	445	(60)
Glossary	505	(8)
Index	513