ACLU Joins Suit Over Mass. "Harmful" Internet Law

The American Civil Liberties Union of Massachusetts says it's joining a group of other organizations in a legal challenge to a new state law that was intended to ban distribution by the Internet of "matter harmful to minors." The plaintiffs said the law may have been intended to protect children from sexual predators on the Internet, but its effect was much broader, effectively banning from the Internet anything harmful to minors, including material that adults have a right to view.

Defense, State Departments Allow Social Networking

The U.S. Defense Department and State Department are allowing greater use of Facebook and Twitter, while warily noting that social media can be a boon for spies and "compromise operational security." The State Department released a manual saying that personal use of Facebook and Twitter is permitted on work computers, and the agency "will not arbitrarily ban access to or the use of social media."

Judge Issues TRO Against Facebook in Ownership Case

A New York judge has issued a temporary restraining order restricting the transfer of Facebook Inc.'s assets, following a suit by a New York man who claims to own an 84% stake in the social-networking company. Paul D. Ceglia filed a suit in the Supreme Court of New York's Allegany County on June 30, claiming that a 2003 contract he signed with Facebook founder and chief executive Mark Zuckerberg entitles him to ownership of the company and monetary damages.

European Court Says Keywords Don't Infringe

Europe's highest court confirmed an earlier ruling that companies using the names of their competitors as Internet advertising keywords are not infringing European trademark laws. The case involved temporary cabin maker Portakabin, which accused its competitor Primakabin of infringing its rights as trademark owner of the Portakabin name by using it as an ad keyword.

Judge Cuts File-Sharing Damages 90%

In a major setback for the recording industry, a Boston judge slashed by 90 percent a $675,000 damages award that a Boston University graduate student had been ordered to pay to four record labels for illegally downloading 30 songs and sharing them online. U.S. District Court Judge Nancy Gertner ruled that the amount a federal jury ordered Joel Tenenbaum to pay last July was "unconstitutionally excessive" in light of what she described as the modest harm caused to the record labels.

Phishing, Not Hacking, Blamed for Exposed iTunes Accounts

It's unlikely that consumers' iTunes accounts were hacked by a Vietnamese iPhone developer, a security researcher said. Instead, it's more probable that users' credit cards were obtained through standard phishing tactics or keyloggers that were secretly installed on people's machines, or that iTunes accounts were accessed because of poor password practices.

Law Firm Working on Class-Action Facebook Privacy Case

A Toronto-based law firm with a history of targeting litigation at corporations as varied as chocolate companies and silicone breast implant manufacturers has a new company in the crosshairs: Facebook. Merchant Law Group, which has offices in 10 Canadian cities, launched litigation seeking class action status against the massive social-networking site, alleging the mishandling of sensitive user data -- the latest development in a resurgence of action against the social network's privacy policies, after it looked for a while as if all the fuss had calmed down.

Europe Studying Competition Among Search Engines

The European Commission's top antitrust official said that he is closely examining allegations of anticompetitive behavior related to Internet search services. In a speech at an e-commerce antitrust conference in London, Joaquin Almunia, the commission's vice president for competition policy, did not specifically name Google, but the Internet search and advertising firm was the subject of antitrust complaints filed in February by three Internet competitors.