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Employees Violating Computer Misuse Policy

In July, the Fourth Circuit weighed in on the scope of the Computer Fraud and Abuse Act (CFAA) in WEC Carolina Energy Solutions, LLC v. Miller and found that the CFAA is not broad enough to impose liability on an employee who has lawful access to his employer's electronic information but later misuses that information - such as by stealing the employer's electronic trade secrets. In taking this narrow approach to the CFAA and siding with the Second and Ninth Circuits, the Fourth Circuit has widened the circuit split over whether the CFAA applies to disloyal employees who violate the computer use policies of their employer. In this Legal Alert, Audra Dial and John Moye discuss the Fourth Circuit's recent ruling and its impact for employers drafting computer use policies as well as companies pursuing trade secret claims through the CFAA.

See kilpatrickstockton.com

New Cyber Data Laws

See Cyber Data Law story.

"NEW laws will allow authorities to collect and monitor Australians' internet records, including their web-browsing history, social media activity and emails. But the laws, which will specifically target suspected cyber criminals, do not go as far as separate proposed laws designed to retain every Australian internet user's internet history for two years in the name of national security. Under the laws passed yesterday, Australian state and federal police will have the power to compel telcos and internet service providers to retain the internet records of people suspected of cyber-based crimes, including fraud and child pornography. Only those records made after the request will be retained, but law enforcement agencies will be prevented from seeing the information until they have secured a warrant."

Publicity Monster

An interesting story about a company that promised to improve your Google rankings.
See Publicity Monster Investigated.

Apple beats Samsung in Court - First Reactions

Apple won one of the largest patent damages awards against Samsung.  First reactions.  News Report.  Will this impact the Australian court cases?

Copyright and the Digital Economy Issues Paper


The Australian Law Reform Commission (ALRC) released the Issues Paper for its current inquiry into Copyright and the Digital Economy.

Headed by Professor Jill McKeough (Dean of Law at the University of Technology, Sydney), the review is focusing on the suitability of current exceptions and statutory licences in the evolving digital marketplace.

See Note here.

Paypal Over Zealous and Uncaring?

From The New York Times:
Some PayPal Users Criticize Antifraud Measures

Some of the payment service’s users say the company needlessly freezes their accounts when large transactions are involved.

http://nyti.ms/QuD0EC

Smirnoff Responsible for Comments of Users on Facebook

The Board considered that the Facebook site of an advertiser is a marketing communication tool over which the advertiser has a reasonable degree of control and could be considered to draw the attention of a segment of the public to a product in a manner calculated to promote or oppose directly or indirectly that product. The Board determined that the provisions of the Code apply to an advertiser’s Facebook page. As a Facebook page can be used to engage with customers, the Board further considered that the Code applies to the content generated by the advertisers as well as material or comments posted by users or friends.”


See Diageo Australia 

Computer Patent - Patentable Subject Matter

A system claim which includes as a limitation a computer to perform steps in a method is ineligible for patent protection under 35 U.S.C. §101 as a claim to an abstract idea because the computer functions solely as an obvious mechanism to solve a problem quickly, the Federal Circuit held July 26, 2012. Bancorp Services, L.L.C. v. Sun Life Assurance Company of Canada (U.S.), Fed. Cir., No. 2011-1467, 7/26/12.

The asserted patents are directed to systems and methods for administering and tracking the value of life insurance policies in separate accounts. The Federal Circuit affirmed a district court summary judgment that the patents are ineligible for patent protection because the claimed computer components are no more than objects that facilitate the operation of claimed methods directed to an abstract idea. It held that a machine, system, medium, or the like may in some cases be equivalent to an abstract mental process for purposes of patent ineligibility.

To read the Court's opinion in this case, click here.

Online Auctions - Terms Unfair

See Malam v Graysonline, Rumbles Removals and Storage (General) [2012] NSWCTTT 197
  1. The CCAAC then went on to recommend that “online transactions (including online auctions such as eBay) should be covered by the national statutory consumer guarantees in the same way as in-store transactions” (Recommendation 10.1, page 111).
  2. In the light of this recommendation, and the clear intention of the Australian Consumer Law to provide wide ranging protection for consumers, I consider that the purpose of provision will best be met by limiting auctions to physical auctions where the consumer does have the opportunity to inspect the goods before purchasing, analogous to in-store transactions.
  3. In the circumstances, I am not satisfied this arrangement was a sale by auction and therefore s. 54 and 55 of the Australian Consumer Law apply.

Google's Top Lawyer: Some Apple Inventions are Commercially Essential, Should Be Made Into Standards

Apple CEO Tim Cook has said that he wants other companies to "invent their own stuff", and that Apple shouldn't be "inventor for the world". 

Google General Counsel Kent Walker disagrees, and this month wrote a letter to the US Senate Judiciary Committee arguing that commercial inventions that impact "consumer welfare" should be just as important as technical patents.

See Here

e-book pricing

On Friday, the Department of Justice responded to the over 800 comments filed in its settlement with a group of publishers over e-book pricing. The Department responded as part of the Tunney Act proceeding for the settlement, while it is in the midst of litigating the same Complaint against Apple and publishers that did not settle.
The response can be found here: http://www.justice.gov/atr/cases/f285300/285315.pdf.
The comments are posted online and can be found here: http://www.justice.gov/atr/cases/apple/index.html

Apple v. Samsung

The Apple v. Samsung patent case restarted in Federal Court of Australia today.  See Sydney Morning Herald

U.S. Federal Circuit Responds to Supreme Court on Patent Eligibility

Reversing a summary judgment of patent ineligibility under 35 U.S.C.§101, the Federal Circuit in a 2-1 decision responded to the Supreme Court’s recent decision in Prometheus v. Mayo with the caution that patent eligibility must be decided by examining claims for specific, concrete applications of the ideas behind an invention.  CLS Bank v. Alice Corp., Fed. Cir., No. 11-1301, 9 July 2012.  Alice Corporation Pty Ltd is an Australian corporation.

According to the Court, if, after taking all of the claim recitations into consideration, it is not “manifestly evident” that a claim is directed to a patent ineligible abstract idea, that claim must not be deemed for that reason to be inadequate under Section 101.


Judge Prost dissented, writing that the majority failed to follow the Supreme Court’s Prometheus ruling by not inquiring whether the claims include an “inventive concept” and by devising its own patentable subject matter test.

The challenged patents in this case are directed to a computerized trading platform for exchanging obligations in which a trusted third party settles obligations between a first and second party so as to eliminate “settlement risk.”  The district court granted a summary judgment motion that the claims were not patent eligible because they are directed to an abstract idea.  On appeal the Federal Circuit reversed, concluding that the system, method, and media claims are directed to practical applications of an invention falling within the categories of patent eligible subject matter defined by Section 101.

The “abstract ideas” test for patent eligibility has become a serious problem because of its “abstractness,” Judge Linn observed.  He noted that several Supreme Court decisions have discussed the concept of “preemption” to elucidate the “abstract idea” exception to patent eligibility.

However, he added that Diamond v. Diehr, 450 U.S. 188 (1981), addressed claims containing a mathematical equation, and held that they only foreclosed the general use of the equation in conjunction with all of the other steps in the claimed process.  Thus, the essential concern, according to the Court, is not preemption per se, but the extent to which preemption results in the foreclosure of innovation.

With respect to implementing inventions in computer hardware or software, the court stated that the “mere implementation” on a computer of an otherwise ineligible abstract idea will not render the invention patent eligible, citing Fort Props. Inc. v. Am. Master Lease LLC, 671 F.3d 1317 (Fed. Cir. 2011).

However, Judge Linn wrote that a machine limitation can render a method patent eligible where the machine imposes a meaningful limit on the scope of the claim and where it plays a significant part in permitting the claimed method to be performed, citing SiRF Tech., Inc. v. Int’l Trade Comm’n, 601 F.3d 1319 (Fed. Cir. 2010).  A machine is insufficient, he added, if it functions solely as an obvious mechanism for permitting a solution to be achieved more quickly, i.e., through the utilization of a computer for performing calculations.  A claim that is drawn to a specific way of doing something with a computer is likely to be patent eligible, Judge Linn explained, whereas a claim to nothing more than the idea of doing that thing on a computer may not. He added the following:
While the use of a machine in these limitations is less substantial or limiting than the industrial uses examined in Diehr (curing rubber) or Alappat (a rasterizer), the presence of these limitations prevents us from finding it manifestly evident that the claims are patent ineligible under § 101. … In such circumstances, we must leave the question of validity to the other provisions of Title 35.

To read the Court’s opinion and the dissenting opinion, click here.

New gTLDs by Australian Companies

Here is my list of new gTLDs applied for by Australian companies, Universities and governments.  There were a number of Victorian Universities who applied, plus the NSW Government and the Victorian Government.  Commonwealth Bank made three applications, as did iSelect.  A number will be contested (as marked in bold) below.

  • AFL
  • AMP
  • ANZ
  • AUSPOST
  • BEST
  • BOND
  • BOOK
  • CANCERRESEARCH
  • CBA
  • CEO
  • COMMBANK
  • NETBANK
  • COURSES
  • FILM
  • GLOBALX
  • IINET
  • KRED
  • LATROBE
  • COMPARE
  • SELECT
  • ISELECT
  • CPA
  • MELBOURNE
  • MONASH
  • NAB
  • UBANK
  • PHYSIO
  • RMIT
  • SALON
  • SBS
  • TAB
  • TENNIS
  • SEEK
  • SELECT
  • SEVEN
  • STUDY
  • SYDNEY
  • WEBJET
  • WOODSIDE
  • YELLOWPAGES
There are a number of multiple applications for the one gTLD, such as ART, AUCTION, BOOK, BET, BABY, HOTEL, HOT, GROUP, GREEN, GAME, CLOUD, CLUB, AUDIO, AUTO, SECURITY, FREE, RIP, MOBILE, MUSIC, NEWS, NOW, ONLINE, PIZZA, PLAY, POKER, PROPERTY, RACING, RADIO, RESTAURANT, RUGBY, SALE, SCHOOL, SEARCH, SHOP, SITE, VIP and SUCKS.  There was one PORN application and two SEX applications (and one SEXY application).

There were two applications from New Zealand, KIWI and RIP.

Amazon made over 70 applications for words in English, and a bunch more in non-Roman text.  Google made about 100 applications, under the name Charleston Road Registry Inc..  Facebook did not make any applications.

Reveal Day



Tomorrow is gTLD Reveal Day


It is anticipated that 1,900 applications have been made for new gTLDs.  Information will be posted here tomorrow.

For background about the gTLD process and new gTLDs, see: B and T; and Mallesons.

What should you know for Reveal Day.  See "10 things" article. 

See also ICANN and here and WIPO LRO page.

Here's $10 off at Shoebuy.com

Save on shoes, accessories, handbags and apparel at Shoebuy.com. We've got something for everyone and for a limited time, you can save $10 on that special something. Valid on purchase of $50 or more.

Kim Dotcom on the offensive

http://www.nzherald.co.nz/nz/news/article.cfm?c_id=1&objectid=10809796 


Papers state the FBI allegations "turn a blind eye to laws ... that provide a safe harbour" for businesses which work to remove any material which infringes copyright. It stated there was no law which allowed cloud storage companies to face criminal charges over the actions of users.

Does MegaUpload have a DMCA defence?

Google Posts Data as to copyright takedown notices

Google has decided to share its insights on copyright abuse amid a loudening outcry for a crackdown against online piracy that media companies have claimed is collectively costing them billions of dollars each year. The backlash inspired a piece of get-tougher legislation SOPA, that had the backing of most major music and move studios. The proposal caused dismay among major internet companies who feared the law would stifle free speech and innovation. The bill was abandoned four months ago after fierce high-tech opposition that included a one-day blackout of popular websites such as Wikipedia and an online petition drive spearheaded by Google.

See Google Data and SMH article

Privacy Inquiries re Google

From The New York Times:
Google Privacy Inquiries Get Little Cooperation

All sorts of private Internet communications were casually scooped up as Google Street View cars photographed the world’s streets.

http://nyti.ms/Kx4aE2

Wrap up - current issues

John will be travelling interstate on Monday, so Carly will be taking his place for the last lecture.

This lecture will focus on current issues, using Facebook as a marketing case study.  Have a look at the following articles to start with:

IPO articles and here

marketing - 10 examples

marketing tips

facebook marketing bible

What are the risks of using social media as a marketing tool?

Online contracting, creating websites

e-commerce
How is contracting online different to other transactions?  
What special regulations are there / should there be to address these differences?
Consider:

Ensuring enforceability of online contracts
Consider the differences between shrink wrap, click wrap and browse wrap agreements.
Where do website terms of use fit it?  Consider some examples and the similarities / differences between them.
What is the impact of the unfair contracts legislation?


Establishing and operating websites
What do you need to be aware of (having regard to previous lectures)?
Australian Government's suggestions

Copyright lecture

In this lecture we will focus on a number of important copyright decisions in Australia.  However, you should also be familiar with:

Copyright Act, and amending legislation relevant to the Internet - Computer Programs, Digital Agenda, 2004 amendments

Law reform

Australian cases - Kazaa (piracy), MP3s4free (piracy), Fairfax (newspaper headlines), Ice TV (compilations/databases), Telstra (computer generated compilations), iiNet (ISP liability) and TV Now

US cases - Napster, Grokster 

Recent news items - NSW police/Micro Focus, 92 year old pirate

Copyright/licensing bodies - Electronic Frontiers Australia, Creative Commons

How to Muddy Your Tracks on the Internet

Legal and technology researchers estimate that it would take about a month for Internet users to read the privacy policies of all the Web sites they visit in a year. So in the interest of time, here is the deal: You know that dream where you suddenly realize you’re stark naked? You’re living it whenever you open your browser.
...
“Companies like Google are creating these enormous databases using your personal information,” said Paul Hill, senior consultant with SystemExperts, a network security company in Sudbury, Mass. “They may have the best of intentions now, but who knows what they will look like 20 years from now, and by then it will be too late to take it all back.”
See NY Times

info graphic - The Stop Online Piracy Act (SOPA)


A Technical Examination of SOPA and PIPA 
By Spencer Belkofer. LLRX.com, April 29, 2012 
SOPA is the Stop Online Piracy Act, and PIPA is the Protect IP Act.

How should damages be assessed for privacy and cybersecurity breaches

Listen to this podcast where I discuss how damages should be assessed in privacy and cybersecurity lawsuits. The Lawyers Weekly Show host J...