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  • 8/13/2019 Cyber Report 02314

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    Cyber Report: Privacy and Big Data on Early To-Do Lists

    From: Bennet([email protected])

    Sent: Mon 2/03/14 9:21 AM

    To: [email protected]

    February 3, 2014

    Four Chaplains Day

    TOP STORYChanges in Law, Technology Mean its Time for A

    CheckUp

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    Last fall, California Governor Brown signed the Do

    Not Track disclosure bill and the Privacy Rights for

    Minors in a Digital World Act, along with a bill

    amending the state data breach law. If you sell on

    the web in California, these apply to you.

    The Privacy Rights for Minors in a Digital World Act

    does not go into effect until 2015, but the Do Not

    Track provisions went into effect January 1 and

    require that websites disclose how they respond to

    Web browser do not track requests and other

    parties collect personally identifiable information

    about a user over time and across different websites.

    The amendments to the state data breach law change the notification requirements to expand

    expand the scope of personal information" to include a user name or email address

    acquired in combination with a password or security question and answer that permits

    access to an online account.

    You should check over your privacy and other policies to see if they are up to date. While the

    Denver Broncos may have won a trip to the Super Bowl on Sunday, they are also one of three

    NFL teams to win a consent decree with the Federal Trade Commission since their policies

    were outdated and falsely stated that they were compliant with the EU Safe Harbor. Don't let

    this happen to you (the FTC, not the Super Bowl part).

    In addition, with the increasing importance of social media and increase in BYOD workenvironments, you should ensure that your policies and procedures reflect your current

    activities.

    We did a short PowerPoint on what are some things to think about in doing your yearly

    assessment.

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    NSA and Big Data Are TopWashington Stories

    The NSA scandal is having a major impact ontech businesses, especially those dealing in the

    cloud. The impact of the NSA scandal was

    evident in Ciscos latest earning report. Cisco,which had been projected to report 6 percent

    IN THIS ISSUE

    Big Data Steps Into Spotlight

    White House Appoints Big DataWorking GroupFTC Lifeguard is Watching Big Data,Report Expected This YearNew Jersey Consent DecreeBBB Issues Enforcement Warning onOnline Behavioral AdvertisingPrinciplesDMA Releases Value of Data Study

    FTC Watch

    2014 Priorities

    Enforcement UpdateBattle Over Cyber Security

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    BIG DATA

    Steps into the Spotlight

    In 2014 we will create 72 times more data thanwe had throughout all human history up to2010.

    White House Big Data Work Group

    President Obama has tasked John Podesta,

    President Clinton's former Chief of Staff, to leada working group to conduct a 90day review ofBig Data which may be a launching point forprivacy legislation or regulation.

    We are undergoing a revolution in the way thatinformation about our purchases, ourconversations, our social networks, ourmovements, and even our physical identities

    are collected, stored, analyzed and used. Theimmense volume, diversity and potential valueof data will have profound implications for

    Yelp LitigationCrystal Cox AppealCourtney Love WinsUnwelcome Internet

    In The Courts

    Amazon TaxOverstock $6MM HitSelf Inflicted Wounds

    Ted's Tubes

    Click FraudTRUSTe StudyBroadband SpeedLA a Gig City?Top Domain AuctionsDynamic Dolphins Demise

    Canada

    Flexing Muscles on Google, Spamand ICANNCanadian Government Spied on WiFi

    International

    See Blog for Details

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    privacy, the economy, and public policy. Theworking group will consider all those issues, andspecifically how the present and future state ofthese technologies might motivate changes inour policies across a range of sectors. (ReadMore)

    FTC Watching Big Data

    In a summer 2013 address to the AspenInstitute, FTC Chair Edith Ramirez stated:

    Addressing the privacy challenges of big data isfirst and foremost the responsibility of thosecollecting and using consumer information. The

    time has >come for businesses to move theirdata collection and use practices out of theshadows and into the sunlight . . . With bigdata, the FTC's job is to get out of the way ofinnovation while making sure that consumerprivacy is respected.

    The FTC will be releasing a report on data brokers

    later this year.

    BBB/DMA Issue Warning on Compliance with

    Online Behavioral Advertising Principles

    The BBB which monitors compliance with the Online

    Behavioral Advertising Principles, is warning the

    industry that they need to do a better job in terms of

    disclosing not just their own behavioral targeting

    practices but of that of third parties that collect

    information on the site. (Read More)

    ABOUT US

    TheInternet Law Centeris a law firmdedicated to helping businesses navigatethe evolving legal standards for today'sdigital economy.

    Today the firm serves a diverse clientbase that includes startups and publ iccompanies both online and offline acrossfour continents on issues ranging fromonline marketing, ecommerce, privacy,domain names to cyber harassment, aswell as entertainment, generaltransactional and litigation matters.

    The firm was founded by Bennet Kelley,the past cochair of the California BarCyberspace Committee and host of CyberLaw and Business Report.

    Cyber Report is for information purposesonly and is not meant to express any legalopinion or advice nor is it anadvertisement for any legal services (noteven if read backwards). The occasionallysnarky views expressed herein donot necessarily reflect the views of the

    firm nor any ILC client.

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    DMA Releases Value of Data Study

    The Data-Driven Marketing Institute (DDMI), an

    initiative of the Direct Marketing Association(DMA),

    released a ground-breaking study quantifying the

    value of the Data-Driven Marketing Economy

    (DDME).

    Key findings include:

    The DDME added $156 bill ion in revenue to

    the U.S. economy and fueled more than

    675,000 jobs in 2012.

    In California alone, the DDME fueled more

    than 90,000 jobs and provided more than $21billion in revenue to the states economy in

    2012.

    (Read More)

    RECENT CLBRs and

    PRESENTATIONS

    Online Advertising 2014

    Beverly Hills Bar Association

    Presentation on Internet Law

    at Cal Bar IP Institute

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    TARGET DATA BREACH

    Renewed Debate Over DisclosureRequirements

    Target Data Breach Triggers Debate AboutDisclosure Requirements; SEC Steps UpEmphasis on Cyber Security

    While Target disclosed the potentialconsequences of a theoretical data breach intheir past filings, they will not be filing an SECreport on the actual ramifications of their

    massive data breach until March. SenateCommerce Committee Chairman Jay Rockefeller(DWV) was "puzzled" by this decision given thatthe breach involves 110 million records andbelieves Target's position is inconsistent withSEC disclosure rules.

    This comes at a t ime when the SEC has said thatCyber Security would be a priority in 2014.

    UPCOMING SHOWS

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    Target Data Breach Highlights Importance ofCyber Security and Data Breach Planning

    Targets data breach highlights the

    danger that data breaches pose to

    businesses, especially small

    businesses since a large

    percentage of small businesses

    close within six months of an

    announced data breach.

    If have not done a recent security review or donot have a data breach plan, you should contactyour lawyer and security consultant. Fortysixstates have data breach laws, in fact Californiajust updated theirs effective January 1 to

    expand the class of information covered.

    If you are subject to the FTC's Red Flags Rulesyou are required to adopt an identity theftprogram. In addition, since Bring Your OwnDevice (BYOD) offices are listed as one of themajor vulnerabilities of 2014, you may want toensure you have a policy that addresses BYOD.Of course, if you prefer taking your chances,you want to try this handy fashion accessory.

    2013 Worst Passwords

    Top 20 of the most common passwords used:

    15: 123456; password; 12345678; qwerty; abc123

    610:123456789; 111111; 1234567; iloveyou;

    adobe123

    1115:123123; admin; 1234567890; letmein;

    photoshop

    THIS WED AT 10AM PACIFIC TOMNORA, THE START UP CEO

    When Tom Nora, the StartUp CEO,answered a question on Quora that "almost

    everything startup leaders say is either aguess, untrue or conjecture, hope or madeup on the spot" he created quite a buzz inSilicon Beach. He'll share his insights fromworking with startups and others thatmake up the new Silicon Beach culture.

    PAST SHOWS OF NOTE

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    1620: 1234; monkey; shadow; sunshine; 12345

    Using passwords like these are inexcusable and

    an invitation to hackers and merit the fashion

    accessory above. If you want to check how

    secure your password, try a site like

    passwordmeter.com or

    howsecureismypassword.net.

    2014 Threats

    In terms of what to expect for 2014,

    ZDNets Charles McLellan does a great job

    summarizing what the major security firms are

    prediction for 2014 here. Some of the scariest

    predictions are below.

    Increased in Ransonware infections (i.e.,

    infections designed to render a computer or its

    files unusable until the computer user pays the

    demanded amount of money to the attacker)

    More crimeware will destroy the operating

    systems (OSs) of targeted systems as a last step

    of an attack

    A foreign power or organized cybercrime group will

    have breached a midsized or municipal utility for a

    long period

    The Internet of Things becomes the Internet of

    Vulnerabilities

    A major datadestruction attack will happen

    Attackers will increasingly lure executives and

    Is The Clock Ticking on theEssociates Affiliate Marketing Patent

    (With Ben Davidson of Davidson Law Group)

    YearEnd Special Edition

    (With Ian Ballon Greenberg Traurig andEvan Brown TWIL)

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    compromise organizations via professional social

    networks

    BYOD Represents the Weakest Link.

    Making Los Angeles a Gig City;Giganomics and the State of the GigUnion

    (With Steve Reneker City of Los Angeles,David Sandel Sandel & Associates)

    FTC WATCH

    2014 Priorities, Enforcement Update and the Battle over CyberSecurity

    When FTC Chair Ramirez tapped Jessica Rich to head the Consumer Protection Bureau, AdWeek noted

    that her appointment signals that the agency likely will be "aggressive in shaping privacy policy and

    bringing enforcement actions." Rich told Ad Week that her 2014 priorities include native advertising and

    mobile privacy and security.

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    Recent FTC enforcement actions include

    (i) a $32.5 million ding to Apple for violating COPPA with its mobile apps;

    (ii) Operation Failed Resolution tagged several companies for making false weight loss claims; and

    (iii) a settlement with 12 businesses including 3 NFL teams (including Super Bowl bound Denver) for falselyclaiming compliance with the E.U. Safe Harbor framework.

    Finally, the legal battle over whether the FTC has the authority to regulate cyber security continues asthe judge in the Wydham Hotels case appears near a decision. The judge, however, has asked the partiesto brief recent statement before Congress by one of the Commissioners that may have inadvertentlyhelped Wydham''s challenge.

    (Read More)

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    WASHINGTON WATCH

    Net Neutrality, Crowd Funding,Tech Lobbying and Farewell to a

    Tiny Giant

    Court of Appeals Invalidates FCC Net Neutrality Regs

    The D.C. Circuit Court of Appeals' decision reversing the Federal CommunicationsCommission's Open Internet Order is more about how the rules were adopted than thesubstance of the rules.

    In a nutshell, under President Bush, the FCC decided to classify broadband services asinformation services that were not subject to common carrier obligations under theCommunications Act. The Open Internet Order punted on the question of whetherbroadband services should be reclassified and instead sought to justify the order based onthe FCC's general authority. The DC Circuit rejected this approach.

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    Given that the Commission has chosen to classify broadband providers in a manner thatexempts them from treatment as common carriers, the Communications Act expresslyprohibits the Commission from nonetheless regulating them as such.

    Net neutrality advocates were disheartened but not surprised by the decision (myselfincluded) and criticized former FCC Chairman Genochowski for not getting it right ("NetNeutrality lost this week not because of the strength of the FCC's arguments, but rather

    because of the weakness of their stomach"). One analyst expressed concern that:

    This decision if it remains unchallenged raises the possibility that large internet serviceproviders could charge certain companies extra for delivering their content to subscribers,and give preference to the content coming from those who are willing pay them a fee, orhave cut some other kind of deal. In effect, the democratized nature of the internet wouldbe replaced by a feudal system in which the ability to reach a consumer would be auctionedoff to the highest bidder.

    For a sampling of other views on this decision, click here.

    Tech Industry Washington Spending Up 16 Percent with Google Leading the Pack

    An industry that once viewed Washington with great skepticism is now investing beaucoup bucks in

    getting results. Google, which has been among the top 10 total spenders in Washington the past two

    years according to OpenSecret.org leads the way with $14.06 million in spending, but Apple andFacebook have major major adjustments increasing spending 71.7 and 61.2 percent respectively.

    SEC Issues Crowdfunding Regs

    When President Obama signed the JOBS Act into law on April 5, 2012, it included the Capital Raising

    Online While Deterring Fraud and Unethical Non-Disclosure Act of 2012 (CROWDFUND Act) which

    would permit companies to raise up to $1 million in equity via crowd-funding. The Act directed the

    Securities and Exchange Commission (SEC) to issue implementing regulations within 270 days of

    passage or December 31, 2012.

    In October 2013, the SEC released its 585-page proposed regsfor a publ ic comment period of 90-

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    days, with drafting of the final rule to follow thereafter. Some

    speculate that the final rules will not be in place until late

    2014.

    In July, the SEC lifted the ban on general solicitation of non-

    public offerings so long as all purchasers are accredited

    investors and the issuing company takes steps to verify this

    status. An accredited investor includes a natural personwho earned income that exceeded $200,000 (or $300,000.

    Henry Waxman: The Dean of the SoCal Congressional Delegation to Retire

    Congressman Henry Waxman (D-CA) is one of six members

    of the House of Representatives whose service predates

    Jimmy Carter. Yesterday he announced he would be

    retiring after 20 terms in Congress. While he is primarily

    known for his work on the environment and health care, hewas a very good friend to the entertainment community and

    I found him to be very responsive to the needs of the tech

    community. The 5 foot-5 inch Waxman was a giant when it

    came to using the subpoena power of Congress for

    oversight and this iconic photo of big tobacco swearing under oath en masse that nicotine was not

    addictive was one of those hearings. Waxman's announcement comes after similar announcements

    by two other California representatives - George Miller (20 terms) and Buck McKeon (11 terms) -

    raising concerns that California's clout in Washington is on the decline.

    SACRAMENTO WATCH

    AG, Legislature Move Forward

    on Privacy and Data Security

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    Attorney General Harris Preparing Compliance Guidance Statement for New Privacy Laws

    Last fall California passed two amendments to its privacy laws one concerning how awebsite treats Do Not Track Requests and the other providing a "right to be forgotten" tominors. See Browns Signs 1 Data Breach and 2 Privacy Bills Into Law, along with an updateexpanding the reach of the state's data breach disclosure bill. The laws go into effect onJanuary 1, 2014 except for the "right to be forgotten" legislation which goes into effect in

    2015.

    Privacy is a priority issue for California Attorney General Kamala Harris, who created a specialprivacy enforcement unit in 2012. Harris is preparing a compliance guide which is expectedto be released shortly.

    Attorney General Harris Sues Kaiser For Delayed Data Breach

    California's data breach law requires that disclosure to the consumer be made "in the most

    expedient time possible". Although the law does not define "most expedient time possibleand without unreasonable delay, Californias Office of Privacy Protection recommendsthatnotice be provided within ten (10) business days of an organizations determination thatpersonal information was, or is reasonably believed to have been, acquired by anunauthorized person. Kaiser Health learned in September 2011 that an external hard drivewith personal information had been inadvertently released to the public, it retrieved thehard drive in December 2011, inventoried it through February 2012 and provided notice inMarch 2012. The Attorney General has filed suit alleging that should have begun providingnotice on a rolling basis while it was still completing its analysis of the hard drive rather thanwaiting several months to complete. Kaiser faces a civil penalty of up to $2,500 per record or$51.3 million. (Read More)

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    California Senate Seeks to Reverse Apple Credit Card Privacy Decision

    Last February, in Apple Inc. v. Superior Court, 56 Cal. 4th 128 (2013), the California SupremeCourt interpreted the privacy provisions of the Song Beverly Credit Card Act as not applyingto online transactions for downloadable products. Last week, the California Senate passed abill (SB 383) to reverse this holding and provide that an online merchant may only requireaddress, zip code or other personal information in connection with a credit card transactionfor a downloadable product to the extent needed for fraud prevention and then it may only

    hold such information for as long as it is needed for this purpose and may not use it formarketing.

    Yelp, Crystal Cox, Love, Revenge and an Unwelcome Internet

    Virginia Court Orders Revealing Yelp Reviewers

    A Virginia appeals court ordered Yelp to reveal the identity

    of a reviewer of an Alexandria carpet cleaner where the

    business presented evidence to cast doubt that the

    reviewer was ever a customer. Yelp plans to appeal to the

    Supreme Court.

    The case came down just as a contractor's claim for

    $750,000 for a 1star Yelp rating went to trial in Fairfax County, Virgina. (Read More))

    Ninth Circuit Cox Ruling, Gives Blogger a Pass on Defamation By Dissing It

    In Obsidian Finance Group v Cox, blogger Crystal Cox appealed a defamation verdict against her after

    accusing the plaintiff of engaging in illegal activity, including corruption, fraud, deceit on thegovernment, money laundering, defamation, harassment, tax crimes, fraud against the

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    government, having paid off media and politicians and hiring a hit man to kill the defendant. In

    what has been hailed as a victory for bloggers, theNinth Circuit reversed noting that the blogs

    extreme language and wild accusations immunize it from liability since it dispel[s] any reasonable

    expectation that the statements assert facts. The Berkman Center, however, does not see this as a

    victory for bloggers.

    Revenge P*** Busts: Hunter Moore/IsAnyoneUp and Kevin Bollaert/YouGotPosted Indicted

    (Read More)

    Courtney Love Wins Twitter Defamation Case

    Courtney Love was sued by her former lawyer over a tweet in which she said she was

    [bleeping] devestated [sic] that [her laywer] was bought off @FairNewsSpears.

    Love had tried to make the legal argument that Twitter was in essence defamatory proof since the

    statements made there were inherently opinion but this was rejectedby the judge.

    The jury was asked to decide the factual issue of whether Love knew the message was false or

    doubted the truth of it and the jury answered no making Love the girl with the most cake.

    Amanda Hesss Important Why Women Arent Welcome onthe Internet

    Writing for Pacific Standard, Amanda Hess cites research that

    feminine usernames incurred an average of 100 sexually explicit or

    threatening messages a day. Masculine names received 3.7. Hess

    details hers and other prominent womens death threats via the

    internet and how they rarely are taking seriously. Her stalker has

    been with threatening her for four years even with a protective

    order. University of Maryland Law Professor Danielle Citron has argued that the lack of serious

    attention to cyber harassment is a form of gender discrimination. (Read More)

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    IN THE COURTS

    Amazon Punt, Overstock Dinged and the Law of SelfInflictedWounds

    Supreme Court Kicks Amazon Tax Over to Congress

    The U.S. Supreme Court has denied the petit ion of Amazon.com and Overstock.com to

    review the New York high courts decisionto uphold its Amazontax statute. The statute, the

    first of many in the nation, defined an instate retailer for purposes of collecting sales tax to

    include a retailer who paid over $10,000 to instate affiliates during the previous four

    quarters.

    Amazon and Overstock argued that the decision went beyond the brightline test established

    by the Supreme Court in Quill Corp. v. North Dakota, when it stated that under the Due

    Process and Commerce Clauses of the Constitution, a state can only require retailers with an

    instate presence to collect taxes.

    In denying the petition, the Supreme Court may be deferring to Congress authority to

    regulate interstate commerce particularly since it is currently considering legislation to

    address this issue. The Senate passed the Marketplace Fairness Act. The bill passed theSenate 6927 in May, but has received a chilly reception in the House of Representatives

    where conservative Republican opposition to the bill is growing.

    This is an issue that may resolve itself without court intervention and the court has

    historically been reluctant to intervene in an issue prematurely. Should Congress fail to act,

    there is no doubt it will receive petitions to review other state Amazon laws and it will have

    the opportunity to intervene then should it do so. (Read More)

    Overstock Hit With $6.42 Million Fine From California Court Over Boosted Comparison

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    Pricing

    Overstock was hit with a $6.42 million fine for overstating

    the differences in comparing prices with its competitors

    in violation of Californias unfair competition and false

    advertising laws. The suit, which goes back to 2010 was

    brought by the District Attorneys of six NorthernCalifornian counties and who had to force Overstock to

    turn over crucial documents. The district attorneys cite

    one example in which Overstock listed a patio set at $449.99 claiming a savings of over $500

    off list price when the item was actually available at $247.00 a markup of 82% rather than a

    55% savings. The court chided Overstock for its obstructionist tactics and found that they had

    consistently overstated the list price. (Read More)

    Facebook Rant Barred Terminated Employee From Recovering UI Benefits

    A hospital employee who was terminated as a result of a threatening rant in which she

    referred to her boss as an effed up spawn of satan that she wishes she could pound . . to

    unconsciousness was found to be not entitled to Unemployment Insurance since the rant

    violated company policy against threatening, intimidating, coercing, harassing, [and] using

    abusive language or behavior.

    Kleargear.coms Amazing SelfInflicted Wound

    In 2008, Jen Palmer ordered gifts online from KlearGear only to have the order cancelled

    when she called customer service. When Palmer posted a negative review online, KlearGer

    invoked a nondisparagement clause with a penalty of $3,500 from it terms and conditions

    and reported Palmer to credit reporting agencies when she did not pay the penalty. One

    minor detail they overlooked the term was not in place when Palmer made this order.

    Palmer has since sued the site for $75,000,

    Kleargears overreach has become a lesson in how to ruin your online reputation in the age of

    social media. As reported by Popehat: From this point forward, due to nothing but its ownarrogance, vanity, pettiness and manifest corporate stupidity, KlearGear is synonymous with

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    douchebaggery.

    (Read More)

    PATENT TROLLS FEELING THE HEAT:Washington and State AGs On the Attack

    Wikipedia defines a patent troll as a person or company "who enforces patent rights againstaccused infringers in an attempt to collect licensing fees, but does not manufacturerproducts or supply services based upon the patents in question." The posterchild for patent

    trolldom is an entity known as MPHJ Technology Investments, which has sent thousands ofdemand letters to small businesses seeking $1,000 per employee for their claimed patent on

    the process for scanning documents into an email. Addressing the problem of patent t rolls

    has been a priority for the tech community and a number of recent developments are makingpatent trolls a potentially endangered species.

    AGs on the Attack

    State Attorney Generals in Minnesota, Nebraska, New York and Vermont have gone after

    patent trolls and, in some cases, even succeeded in gett ing consent decrees in which theyagree not to troll in their state going forward.

    Patent Reform Passes the House

    In Congress, the House passed patent reform legislation that would rein in patent trolls andrequire that judges award attorneys fees to their victims. The bill is now before the Senateand passage is likely.

    The FTC Targets MPHJ

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    The FTC launched an investigation into MPHJ. Fearing an action by the FTC, MPHJ took

    the unusual step of suing the FTC, Commissioners Ramirez, Brill and Ohlhausen as well as

    Jessica Rich, the Director of the Bureau of Consumer Protection first.

    Potential Clarity from the Supreme Court

    Finally while these are promising developments for Silicon Valley, patent experts claim that

    while the patent reform bill addresses certain bottom feeder practices, there remains the

    problem of very broad low-quality patents used by patent trolls. The Supreme Court recently

    announced that it will review Nautilus v. Biosig Instruments to consider the Patent Acts

    requirement that patent claims must be clear and distinct which would prevent patent trolls

    from exploiting broad, vague patents.

    (Read More)

    TED'S TUBES

    US BROADBAND'S SLOW RIDE, LA ENTRY INTO GIGABYTE CONTENTION,

    MILLION DOLLAR DOMAINS AND DAY OF THE DOLPHIN

    IAB - Click Fraud Costs Nearly $12B

    This year, click fraud is on track to cost marketers $11.6 billion in advertising up 22% from 2013

    according to survey findings released earlier this week by Solve Media. To combat click fraud, the

    IAB has released its final version of best practices which is available here.

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    TRUSTe - Consumer Privacy Confidence Declining - and its Not All NSA

    =TRUSTe released its latest U.S. Consumer Confidence Index, which shows that a high proportion of

    U.S. adults aged 18 and older are worried about their privacy online, online trust is declining and the

    potential impact on business remains high. 74 percent of U.S. internet users are more concerned

    about privacy than a year ago

    US Broadband Users - Paying More for Less

    The World Economic Forum ranked the U.S. 35th out of 148 countries worldwide in terms of

    Broadband Capacity, while a a new study by Speedtest.net ranks the US 31st in download speed.

    NASDQ reports that the U.S. is falling behind countries like Estonia, Hungary, and Uruguay.

    PolicyMic finds this pathetic from the country that invented the internet. How bad is it? Well, the

    New York Times makes a fun comparison to demonstrate just how far behind the U.S. is falling. The

    Times takes a lookat internet speeds in San Antonio, Texas the seventh largest city in the U.S. with

    a population of 1.4 million and measures it against internet speeds in Riga, Latvia a city with

    700,000 people. And what did they find? Rigas average internet speed is at least twoandahalf

    times that of San Antonios while the cost of Rigas service is about onefourth that of San

    Antonio. So people in San Antonio pay four times as much for internet at least half as fast.

    Why is this the case, Susan Crawford, a law professor and author of Captive Audience: The Telecom

    Industry and Monopoly Power in the New Gilded Age, blames big telecom for this failure since due to

    consolidation more than 80 percent of Americans have only one choice for broadband. In Seoul, when

    you move into an apartment, you have a choice of three or four providers selling you symmetric fiber

    access for $30 per month, and installation happens in one day. Thats unthinkable in the United

    States.

    Instead for American consumers, their only choice will be a local cable monopoly with little incentive to

    fund nationwide fiber-optic upgrades. (Read More)

    HIZZONER 2.0: Mayor Garcetti Is Using Technology to Redefine His Office and the City

    Newly elected Los Angeles Mayor Eric Garcetti has stressed that one of his top priorities is to bring

    city government into the digital age. Garcetti has launched an mobile app for citizens to report pot

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    holes and other service needs and a Cyber Command Center to coordinate

    the computer networks for the city which, with the nations busiest port,

    largest municipal utility and one of its busiest airport, is a prime target for a

    terrorist strike..

    The Mayors biggest tech initiative, is to make Los Angeles a Gigabit City inwhatArs Technicacalls one of the most ambitious city-led broadband

    projects to date. The Mayor and City Council have agreed to move forward on a Request for

    Proposal to develop a citywide broadband network for residential and business use that would

    provide free broadband up to 5Mbp and then tiered pricing for higher speeds up to a Gigabit. If

    implemented, it would make Los Angeles equal to the ultra-broadband deployed in cities such as

    Chattanooga and Kansas City which are the fastest in the nation. As currently discussed, the cost of

    the build out would be borne by the vendor. (Read More)

    Domain Auctions - Four $1M+ Sales in 2013

    With Domain Journals final year end data in, there were four sales in excess of $1 million

    bringing the total to 12 for the decade. The million dollar domains were:

    IG.com ($4.7MM)

    KK.com ($2.4MM)

    114.com ($2.1MM)

    eBet.com ($1.35MM)

    Scott Richters Dynamic Dolphin Registrar Shut Down By ICANN

    Dynamic Dolphin, the rogue registrar owned by Scott Richters CPA Empire(a subsidiary of Media Breakaway) has been stripped of its registrar statusas of November 22, 2013 due to its failure to disclose Richters ownershipinterest and prior felony conviction for grand larceny. All domainsregistered with the onetime Spam King were transferred to BigRockSolutions Ltd. As reported in Performance Marketing Insider:

    Dynamic Dolphin had a serious issue in that more than 10 percent of the companys 45,000plus domains have false WHOIS data, and more than 17 percent of the domains registered

    2/3/2014 O l k P i M

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    through the company have been observed being advertised through spam. (Read More)

    CANADA FLEXES IT MUSCLES

    Acts on Privacy, Spam and Net Competition

    Canadian Privacy Commissioner Tags

    Google for Medical Behavioral Targeting

    In only her second month on the job, Interim Privacy Commissioner Chantal Bernier took on one of the

    giants of the Internet Google. Bernier cited Google for sending targeted ads for medical conditions

    based on consumer searches which violates Canadas Privacy and Online Behavioural Advertising

    Guidelines which prohibit targeting based on sensitive information. Google has agreed to take

    corrective action. FTC Consumer Protection Bureau Director Jessica Rich congratulated Bernier.

    Privacy issues are increasingly global. Working in partnership with other enforcement bodies is

    critical to protecting privacy rights domestically and around the world. (Read More)

    Canadian Spam Regs to Take Effect in July Kind Of

    Last month, the Canadian spam law celebrated its third anniversary, but there was little celebration

    since the regulations implementing the law will not come into effect until July 2014 due to heavy

    lobbying by Canadian businesses. Even then, the private right of action provision does not kick in

    until July 2017. (More)

    2/3/2014 O tl k P i t M

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    Snowden - Canada Spied on Visiting Airport WiFi Users

    The report indicates that the spy ing was part of a test and not a ongoing operation. (More)

    Canadas Competition Bureau Investigating ICANN and Google for Possible Antitrust

    Violations

    The Canadian Competition Bureau has confirmed that it is investigating whether the manner in whichGoogle operates its search engine and searchadvertising platforms amount to an abuse of a dominant

    position. It also is investigating the use of exclusive rights in ICANNs expansion of the gTLDs. (Read

    More)

    CONTACT US

    INTERNET LAW CENTER

    100 WILSHIRE BLVD, SUITE 940, SANTA MONICA, CA 90401

    www.Internet Law Center.net

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