Federal Reserve and Treasury officials said they were struggling to craft rules to ban bank and credit card payments to illegal Internet gambling sites because federal law is unclear about what type of gambling is illegal online. "That is something we're really struggling with," Louise Roseman, the Fed's director of reserve bank operations and payment systems, told a House Financial Services subcommittee.
TJX to Pay Up to $24 Million for Data Breach
Discount retailer TJX Cos. said it will pay up to $24 million as part of a settlement with MasterCard over a security breach that put credit card data for tens of millions of shoppers at risk. The parent of the T.J. Maxx and Marshalls clothing chains said the pre-tax payout will go to MasterCard issuers worldwide that issued cards potentially affected by computer breaches.
Lost Money Website Sued for Violating Consumer Law
A Web site that says it will help people find money they didn't know they owned is misleading and violates Pennsylvania consumer law, state prosecutors said in a lawsuit. The catch was that free search provided only vague information, and the Web site charged $24.95 for a membership that would produce details, the office said.
Creative Commons Gets $4 Million Grant; Lessig Leaves
Creative Commons, the nonprofit dedicated to reforming copyright in the digital age, said it has received a $4 million grant from the William and Flora Hewlett Foundation. Meanwhile, Lawrence Lessig, the organization's founder, a Stanford law professor, and a "free culture" advocate, is stepping down from his role as CEO of Creative Commons.
Center for Democracy and Technology Walks Fine Line
In the 14 years since it was founded by former ACLU and Electronic Frontier Foundation attorney Jerry Berman, the Center for Democracy and Technology has evolved into a strange bird that defends the Internet's ideals of openness, equality and anonymity by working hand in hand with the commercial interests that often seem to threaten them.
ACLU Accuses Military of Using FBI for Surveillance
The military is using the FBI to skirt legal restrictions on domestic surveillance to obtain private records of Americans' Internet service providers, financial institutions and telephone companies, the ACLU said. The American Civil Liberties Union based its conclusion on a review of more than 1,000 documents turned over by the Defense Department after it sued the agency last year for documents related to national security letters.
FCC Chair Seeks to Dismiss Skype's Petition
Federal Communications Commission Chairman Kevin Martin said he was rewarding U.S. wireless operators for their efforts to open up their networks by not pushing for more regulation. During a keynote address at the CTIA tradeshow, Martin said he is going to circulate an order among the FCC commissioners to dismiss Skype's petition to apply Carterfone rules to the wireless industry.
IOC Wants China to Open Internet During Games
The Internet must be open during the Beijing Olympics. That was the message a top-ranking International Olympic Committee official delivered to Beijing organizers during the first of three days of meetings -- the last official sessions between IOC inspectors and the Chinese hosts before the games begin in just over four months.
Apple Sued for "Millions of Colors" iMac Claim
An iMac owner sued Apple claiming the 20-inch iMac desktop computers can't display the "millions of colors" Apple promises in promotional materials. The Cupertino-based company touts that ability on its website and other marketing material even though it knows iMac monitors can display only 262,144 true colors, according to the lawsuit, filed in U.S. District Court for the Northern District of California.
British Online Ad System Illegal, Lawyer Says
Trials of an online ad system carried out by BT involving more than 30,000 of its customers were potentially illegal, says a leading digital rights lawyer. BT has said it trialled a prototype of Phorm, which matches adverts to users' web habits, in 2006 and 2007.
ConsumerAffairs Sued for Publishing "Libelous" Complaints
ConsumerAffairs.com presents itself as a forum for consumers to air their gripes. There are some, however, who say the Los Angeles–based Web site is more interested in helping lawyers find leads than in serving consumers. Tom Nemet, owner of Nemet Motors in Queens, N.Y., filed a defamation suit against ConsumerAffairs.com in U.S. District Court for the Eastern District of Virginia, alleging that the Web site has been publishing "false, malicious and libelous" complaints about his business.
New Zealand Man Pleads Guilty to DoS Attack
Owen Thor Walker, an 18-year-old bot herder from Whitianga, New Zealand, plead guilty to six charges resulting from a botched botnet upgrade that led to a 2007 denial-of-service attack on the University of Pennsylvania. Walker plead guilty to two charges of accessing a computer for dishonest purposes; two charges of accessing computer systems without authorization; one of damaging or interfering with computer systems; and one of possessing software for committing a crime.
Music Labels Win Ruling on Kazaa "Shared Folders"
Major labels prevailed in a federal District Court in New York on a controversial legal question over unauthorized sharing of music files. In denying a motion to dismiss the labels' complaint, the court provided specific language for the labels to use when suing a file-sharer for simply making an unauthorized music file available in a Kazaa "shared folder."
Blackboard's Online-Learning System Patents Rejected
The U.S. Patent and Trademark Office has issued a preliminary decision that rejects all 44 claims Blackboard Inc. made regarding the controversial patent it was granted for an online-learning system. If upheld, the decision could have sweeping ramifications for Blackboard's competitors and universities that use course-management software.
Family Seeks to Revive Lawsuit Against MySpace
The family of a teenage girl who says she was sexually assaulted by a 19-year-old man she met on MySpace.com asked a federal appeals court to revive their lawsuit against the social networking Web site. A federal judge in Austin, Texas, dismissed the $30 million suit in February 2007, rejecting the family's claim that MySpace has a legal duty to protect its young users from sexual predators.
Chinese Law May Hinder Microsoft-Yahoo Deal
Microsoft's hostile-takeover attempt against Yahoo may encounter an unexpected hurdle in August after a Chinese antimonopoly law takes effect that will extend the nation’s economic influence far beyond its borders. The law, which goes into effect on Aug. 1, is intended to strengthen an existing set of antitrust regulations the Chinese originally established in 1993.
University Computer System Breached Three Times
A computer system at Antioch University that contained personal information on about 70,000 people was breached by an unauthorized intruder three times last year, the school said. The university said there is no conclusive evidence that any personal information was stolen, but law enforcement officials are investigating.
After 15 Years, Spam Still Continues to Grow
Spam continues to blight e-mail exactly 15 years after the term was first coined and almost 30 years since the first spam message was sent. More than 90% of all e-mail is spam, according to anti-spam body Spamhaus.
Legitimate Websites Charged with Virtual Voyeurism
Legitimate Web sites, stores and marketers are compiling detailed digital files on their customers by tracking their every move across the Internet. Meanwhile, the federal government, in an effort to catch terrorists, has cast a dragnet that is collecting and sifting through vast numbers of Internet searches and e-mail from ordinary citizens, according to published reports.
VeriSign Increasing Registration Fees for Domain Names
VeriSign has raised the registration fee for domain names ending in .com and .net for the second time since the company took control of the top-level domains in 2006. In justifying the increase, VeriSign said traffic volume continues to increase with the emergence of consumer-driven services, the soaring number of Web-connected wireless devices, and the proliferation of technologies and services using the Domain Name System.
