Feds Show Their Cards On Online Poker: Freeze Funds

from the whoops dept

For years, the federal government has insisted that online poker in the US is illegal, and reinforced it by tacking on punishment for payment processors who process gambling payments onto a totally unrelated bill about harbor safety. Poker players, on the other hand, have insisted for years that there are no laws against online poker -- in part because the laws are all against games of chance, whereas poker is a game of skill. This position received a small boost recently when a judge agreed that poker was a game of skill rather than chance. On top of this, there's been an ongoing effort underway (led by Barney Frank) to specifically make it clear that online poker is legal. However, until that bill goes anywhere, the feds apparently still believe it's very much illegal and have now started going after the payment processors, freezing the funds of payment processors who work with a variety of online poker sites. Expect quite a legal battle to follow.

Filed Under: feds, frozen, funds, legality, online poker

Another Court Ruling In Spain Finds Personal File Sharing To Be Legal

from the no-profit-motive dept

While the entertainment industry has been working over time to try to stop file sharing in Spain, court ruling after court ruling has found that personal file sharing is perfectly reasonable and legal -- and that sites that merely link to content rather than host it (i.e., search engines and trackers) aren't breaking copyright law either. In the latest such case, a judge found that a guy who downloaded and shared over 3,000 movies wasn't violating copyright law, because it was all for personal use with no intent to profit.

Filed Under: file sharing, legality, personal use, spain

Principal Installs Cellphone Jammer But Forgets To Check If It's Legal

from the whoops,-forgot-about-that-law-thing dept

Many educators are having trouble figuring out how to handle electronic devices in the classroom. Some have been educating students on the negative effects, encouraging them to regulate their own use. Others have even highlighted possible applications for mobile devices in the classroom. Though, many just try to ban everything. A principal in British Columbia took his school's ban to a new level by setting up a cellphone jammer. There was just one problem -- the device is illegal in Canada. The principal had ordered the Chinese device online, but some angry students were quick to find out and inform him that he was breaking the law. So much for that idea. Now, he's left looking pretty bad while cellphone use in school now seems like some kind of civil rights issue to some students.

It seems like this is less about the cellphone ban and more about maintaining authority in the school. On that front... this completely backfired. Plenty of schools have effective cellphone bans without resorting to technological blocks (I attended such a high school). Maybe the principal should explain to students and teachers why cellphones are a problem, set some reasonable guidelines for use and some reasonable consequences for violations of the policy. That would probably go a lot further to establish the principal's authority and gain his students' respect than installing an illegal device and being forced to backtrack ever could.

Filed Under: jammer, legality, mobile phones, schools

T-Mobile Takes Out Some Handset Unlockers

from the the-only-confused-people-here-are-us dept

T-Mobile has won damages and an injunction (via Phone Scoop) against several companies that were taking bulk quantities of its prepaid handsets, unlocking them, and then reselling them. The company calls such activity "prepaid phone trafficking," when it's really just exploiting a poor business model. As in other suits filed by other operators, it sounds like T-Mobile based this one on copyright or trademark claims, saying "Consumers are harmed and may be misled about the source and origin of their mobile phones... Because the phones may still carry T-Mobile's brand, consumers may believe they are purchasing handsets manufactured for T-Mobile and covered by original warranties." That's slightly counter-intuitive: T-Mobile says the unlockers made their money by buying handsets locked to the operator, then unlocking them so they could charge a higher price when they were resold. According to T-Mobile, the phones carried a higher price, weren't sold in original packaging and didn't come with manuals. They were also, presumably, accompanied by advertising playing up the fact that they could be used on any operator's network. All of this combined would seem to make it pretty clear to buyers that they weren't buying an original, "official" T-Mobile product. So where's the basis for the confusion claims?

Filed Under: legality, mobile phones, prepaid wireless, unlocking
Companies: t-mobile

IFPI Says 95% of Music Downloads Are Illegal

from the but-then-they-would,-wouldn't-they dept

The IFPI, the international equivalent of the RIAA, has put out new stats claiming that only 5 percent of all music downloads in 2008 were legal. The group estimated that 40 billion tracks were shared illegally last year, or an average of almost 30 songs for every internet user worldwide. The IFPI says it arrived at that estimate by "collating separate studies in 16 countries over a three-year period," so it's not really clear just how accurate it is -- and of course, the higher the figure, the better, as far as the IFPI's efforts to get governments to be their copyright police are concerned. The IFPI says that global music revenues fell by 7% last year, blaming the drop on falling CD sales, which a 25% increase in digital sales couldn't overcome. The IFPI says piracy is the biggest challenge it faces; given the stats, the real challenge seems to be record labels' inability to move past its legacy business model and adapt to consumers' changing desires.

It's hard to give much credence to the IFPI report, given the way it plays with statistics. For instance, in the press release for the report, the IFPI tries to pin the blame on piracy for a downturn in the "local music sectors" of France and Spain. It backs this up by saying that new French and Spanish artists accounted for a smaller percentage of album releases in 2008 than they had before. What about established French and Spanish artists? And does a lack of new local artists have more to do with downloading, or problems with labels in how they do business, and find and promote new talent? Furthermore, when the album is declining in popularity compared to singles, and new artists more likely to take advantage of this by targeting the singles market, is this even a legitimate metric for this purpose? These IFPI stats should be taken with a large grain of salt, and their intended purpose -- to further the group's goal to get governments and ISPs to prop up record labels' outmoded business models -- should be considered.

Filed Under: downloads, legality
Companies: ifpi

Should It Be Illegal To Sell A Keylogger? Or Just To Use It?

from the might-be-pushing-the-boundaries dept

A court has issued an injunction temporarily banning the sale of a keylogger product called RemoteSpy. The ruling probably makes sense under the current FTC law, but it does raise some questions about whether it really makes sense to ban the sale of such a program, versus just the use of one. I can certainly understand why you might want to ban the sale of such programs, because if they're sold, they're perhaps more likely to be used. However, it still seems wrong to make it illegal to sell some software because that software can be used for illegal activities. Shouldn't the liability belong to those who actually use the software for illegal purposes?

Filed Under: keylogger, legality, liability

Is Public Shame Enough To Keep ISPs From Doing Bad Stuff With Your Data?

from the not-if-no-one-knows-what's-going-on dept

While there has been a lot of attention paid recently to ISPs using clickstream tracking to provide targeted ads, it seems that many people are still focused on the activities of the ad companies, such as NebuAd, which garnered some attention from Congress for its offering. However, as we pointed out recently, many ISPs have been selling your clickstream data to others for years without people knowing about it. Now, with Congress threatening to put regulations in place, the various ISPs are scrambling to push back against that possibility.

For example, Broadband Reports points out that Verizon is claiming that the chance of a public shaming will keep the company honest. While it's certainly true that a public shaming is a risk, it's also true that the sale of clickstream data is usually kept entirely secret, which would preclude any sort of public shaming. Public shaming could work if the companies were upfront and honest with how they're using data. But, since they're not, it's difficult to see how that works as a self-regulating mechanism.

Filed Under: clickstream tracking, isps, legality, public shame, regulations
Companies: verizon

Is The Indictment Of The Palin Email Hacker Legally Correct?

from the truthiness dept

Stephen Colbert famously coined the term "truthiness" on the very first episode of The Colbert Report. The word is used to explain a person who knows something is true in his or her "gut" rather than via any facts (and, of course, continues to believe that it's true even if the facts contradict the claim). I'm beginning to wonder if there needs to be a similar world for the legal world, where you believe something must be illegal, in your gut, even if the law itself doesn't appear to cover it. That's what we see with folks who want to string up Lori Drew, the woman whose online conversations with a former friend of her daughter may have resulted in that girl's suicide, despite little evidence that Drew's actions broke any actual law. Yet, because of the quasi-lynch mob mentality of folks who felt in their gut that it must be illegal, prosecutors eventually twisted a law to charge her.

Now it's looking like the recent indictment of a teenager for breaking into Vice Presidential candidate Sarah Palin's email may be facing a similar situation. We had already noted that Justice Department's own definition of the law might make it difficult to prosecute the hacker. However, now a friend sent over an interesting analysis of the indictment itself, by Orrin Kerr, which suggests the entire indictment is legally flawed. Specifically, the statute used, claims that the intrusion is only a felony if used to further a criminal activity.

As Kerr notes, it's not clear what criminal activity was "furthered" by hacking into the email -- unless you read the whole thing recursively, such that the act itself is illegal, and thus doing it is furthering that illegal act. But, obviously, that's legally problematic. So once again, it looks like a situation where plenty of people believe that the act was illegal (very reasonably so, I might argue), but the feds are having trouble finding a law that actually makes it illegal. So, do we have any Colbertian suggestions for what this should be called? Illegalism? Illeginess? Illegfulness?

Filed Under: email, hacking, legality, sarah palin

Most People Don't Realize Their ISPs Are Already Spying On Them

from the wake-up... dept

We recently wrote about how you should probably be more nervous about the data your ISP is collecting rather than what Google is collecting, because your ISP has access to a lot more data, and the data it has isn't data that you chose to give, as in the case of Google. Plus, ISPs have a long history of selling that data. Now, a new study is showing that most people have no idea that their ISPs track and sell their data, with many believing that an ISP would need to first let them know if they were doing that. In fact, many people are quite concerned about how that data would be used, not realizing that it's already being sold. And, of course, it's not just being sold to ad companies like NebuAd and Phorm, but to website tracking firms like Compete and Hitwise. And, even if that data is sold solely for the purpose of creating trend data, there's no reason that uses can't change over time. For example, the Register is noting that a recent patent lawsuit suggests that trend-tracking research firm Hitwise (which was recently bought by credit giant Experian) may be working on an advertising product as well, that also uses your clickstream data.

Filed Under: clickstream tracking, isps, legality

UK Police Stop Phorm Investigation, As They Don't See Any Criminal Behavior

from the civil,-however.., dept

While American competitor NebuAd may be on the verge of shutting down, it appears that Phorm, the controversial clickstream tracking, behavioral ad company that focused mainly on the UK market, may be dodging a series of bullets. First, the government said that clickstream tracking could be legal if the situation was clearly explained to customers and there was an obvious mechanism for opting out. Now, UK police are dropping their own investigation of earlier trials with BT, which many believed were illegal because they were done with no notice to consumers at all, and no way to opt-out. That would seem to go against the government's earlier statements, but the police are saying that there's no evidence that this is a criminal matter -- which would leave this open to civil lawsuits from individuals who were impacted by the trials.

Filed Under: clickstream tracking, isps, legality, spyware, uk
Companies: phorm