Law Commons^™

Cloud Computing, Clickwrap Agreements, And Limitation On Liability Clauses: A Perfect Storm?, Timothy J. Calloway

Duke Law & Technology Review

“To the cloud!” trumpets a commercial by Microsoft, whose aim is to herd customers, and their checkbooks, into the cloud computing fold. But Microsoft, and other cloud providers like Amazon and Google, might inadvertently be doing just the opposite. It is not for lack of security or even early adopter apprehension that potential customers might turn away. Nor is it a lack of fantastic, cost-saving applications of cloud technology.

Rather, the problem is buried deep within these tech giants’ clickwrap agreements—the ones that customers rarely read and to which they invariably click “I Agree.” Hidden in these agreements are limitation …

The Invisible Power Of Machines Revisiting The Proposed Flash Order Ban In The Wake Of The Flash Crash, Austin J. Sandler

Duke Law & Technology Review

Technological innovation continues to make trading and markets more efficient, generally benefitting market participants and the investing public. But flash trading, a practice that evolved from high-frequency trading, benefits only a select few sophisticated traders and institutions with the resources necessary to view and respond to flashed orders. This practice undermines the basic principles of fairness and transparency in securities regulation, exacerbates information asymmetries and harms investor confidence. This iBrief revisits the Securities and Exchange Commission's proposed ban on the controversial practice of "flash trading" and urges the Securities and Exchange Commission and the Commodity Futures Trading Commission to implement …

The Rise Of Computerized High Frequency Trading: Use And Controversy, Michael J. Mcgowan

Duke Law & Technology Review

Over the last decade, there has been a dramatic shift in how securities are traded in the capital markets. Utilizing supercomputers and complex algorithms that pick up on breaking news, company/stock/economic information and price and volume movements, many institutions now make trades in a matter of microseconds, through a practice known as high frequency trading. Today, high frequency traders have virtually phased out the "dinosaur" floor-traders and average investors of the past. With the recent attempted robbery of one of these high frequency trading platforms from Goldman Sachs this past summer, this "rise of the machines" has become front page …

Online Fantasy Sports Litigation And The Need For A Federal Right Of Publicity Statute, Risa J. Weaver

Duke Law & Technology Review

The right of publicity is currently a jumble of state common law and state statutes, but the online fantasy sports industry crosses state lines with ease. Having witnessed the great revenue potential of online fantasy sports, professional sports leagues are trying to strong-arm independent fantasy sports providers out of the business by using the right of publicity to assert property interests in the statistics generated by professional players, and used by fantasy sports providers to run their online games. The first such attempt--by Major League Baseball--failed. However, the state law nature of the right of publicity prevents any single court …

Internet Sales Taxes From Borders To Amazon: How Long Before All Of Your Purchases Are Taxed?, Walter J. Baudier

Duke Law & Technology Review

What so many internet consumers believe to be tax-free is actually subject to a state use tax. Faced with pressure from states that realize very little of the use tax owed, many online retailers, such as Wal-mart, "voluntarily" collect sales taxes from their customers. But a recent California Appeals Court decision, Borders Online v. State Board of Equalization, could mark a shift towards more prevalent, if not universal, taxation of internet retail.

Anti-Employer Blogging: Employee Breach Of The Duty Of Loyalty And The Procedure For Allowing Discovery Of A Blogger’S Identity Before Service Of Process Is Effected, Konrad Lee

Duke Law & Technology Review

The rapid rise in anonymous anti-employer internet blogs by disgruntled employees has created a tension between the liberty interests of employees in free speech and privacy and employers' rights to be free from defamation, disparagement and disclosure of confidential information by an employee. This iBrief argues that the anonymity of anti-employer bloggers should not shield employees from breach of the duty of loyalty claims under tort and contract law, and that Congress should enact rules to govern the disclosure of blogger identity.

Coddling Spies: Why The Law Doesn’T Adequately Address Computer Spyware, Alan F. Blakley, Daniel B. Garrie, Matthew J. Armstrong

Duke Law & Technology Review

Consumers and businesses have attempted to use the common law of torts as well as federal statutes like the Computer Fraud and Abuse Act, the Stored Wire and Electronic Communications and Transactional Records Act, and the Wiretap Act to address the expanding problem of spyware. Spyware, which consists of software applications inserted into another's computer to report a user's activity to an outsider, is as innocuous as tracking purchases or as sinister as stealing trade secrets or an individual's identity. Existing law does not address spyware adequately because authorization language, buried in "click-through" boilerplate, renders much of current law useless. …

When Big Brother Privatizes: Commercial Surveillance, The Privacy Act Of 1974, And The Future Of Rfid, John M. Eden

Duke Law & Technology Review

RFID is a powerful new technology that has the potential to allow commercial retailers to undermine individual control over private information. Despite the potential of RFID to undermine personal control over such information, the federal government has not enacted a set of practicable standards to ensure that personal data does not become widely misused by commercial entities. Although some potential privacy abuses could be addressed by modifying RFID technology, this iBrief argues that it would be wise to amend the Privacy Act of 1974 so that corporations would have a statutory obligation to preserve individual anonymity and respect the privacy …

Stop The Abuse Of Gmail!, Grant Yang

Duke Law & Technology Review

Gmail, a highly anticipated webmail application made by Google, has been criticized by privacy advocates for breaching wiretapping laws, even before its release from beta testing. Gmail's large storage space and automated processes developed to scan the content of incoming messages and create advertisements based on the scanned terms have enraged privacy groups on an international level. This iBrief will compare Gmail's practices with its peers and conclude that its practices and procedures are consistent with the standards of the webmail industry. The iBrief will then propose additional measures Gmail could institute to further protect webmail users' and alleviate the …

Canning Spam: Consumer Protection Or A Lid On Free Speech?, Grant C. Yang

Duke Law & Technology Review

The United States Congress recently passed the first federal legislation to curb the influx of spam. However, the Controlling the Assault of Non-Solicited Pornography and Marketing Act ("CAN-SPAM Act") left some measures to be enacted by the Federal Trade Commission ("FTC"), and some consumers are calling for the Act to have a broader reach and for the creation of a Do-Not-E-Mail registry. Conversely, the FTC decided to delay the creation of a registry and opted to assist in the development of a new technological authentication system. This iBrief looks at the current state of spam and explains that it is …

1984 Is Still Fiction: Electronic Monitoring In The Workplace And U.S. Privacy Law, Christopher Pearson Fazekas

Duke Law & Technology Review

Electronic monitoring in the workplace has been the subject of relentless public criticism. Privacy advocates argue that technological advancements have given overbearing employers powerful tools to abuse employee dignity in the name of productivity and that new legislation should bolster workplace privacy rights. This iBrief contends that current U.S. legal doctrine governing electronic monitoring in the workplace is fair given the nature and purpose of the workplace, and potential employer liability for employee misconduct.

Privacy, Free Speech & The Garden Grove Cyber Café Experiment, Brett Stohs

Duke Law & Technology Review

In response to gang violence at local "cyber cafés," the City Council of Garden Grove, California, passed an ordinance requiring cyber cafés to install video surveillance systems. The constitutionality of the provision was subsequently challenged, and a California Court of Appeal determined that the video surveillance requirement did not violate free speech or privacy protections under either the federal or California Constitutions. This decision was immediately challenged, by commentators and a dissenting judge, as opening the door to Orwellian-type, government intrusions into individuals' personal lives. This iBrief analyzes the appellate court's decision and concludes that not only did the majority …

Virtual Shareholder Meetings, Elizabeth Boros

Duke Law & Technology Review

Electronic communication impacts how widely-held corporations conduct shareholder meetings. For example, technology has facilitated such options as electronic proxy voting, remote electronic voting, and "virtual meetings." This iBrief examines the idea of "virtual meetings" and argues that they should not entirely replace physical meetings unless an electronic solution can be devised which replicates the face-to-face accountability of management to retail shareholders.

Restoring A Public Interest Vision Of Law In The Age Of The Internet, Marc Rotenberg

Duke Law & Technology Review

In November 2003, Mr. Marc Rotenberg, Executive Director of the Electronic Privacy Information Center, lectured at Duke Law School on the importance of protecting individual privacy. In his remarks, Mr. Rotenberg recounted the successful campaign against the government's Clipper Chip proposal. He argued that successful public interest advocacy in the Internet age requires the participation of experts from many fields, public engagement, and a willingness to avoid a simple "balancing" analysis. He further concluded that privacy may be one of the defining issues of a free society in the twenty-first century.

Online Defamation: Bringing The Communications Decency Act Of 1996 In Line With Sound Public Policy, Ryan W. King

Duke Law & Technology Review

According to the Communications Decency Act of 1996, a provider of an interactive computer service cannot be held liable for publishing a defamatory statement made by another party. In addition, the service provider cannot be held liable for refusing to remove the statement from its service. This article postulates that such immunity from producer and distributor liability is a suspect public policy, and argues that the statute should be amended to include a broad definition of "development" and a "take-down and put-back" provision.

The Pending Determination Of The Legality Of Internet Gambling In The United States, Gregory Manter

Duke Law & Technology Review

Internet gambling has been targeted on many fronts in the United States, including Congress, the courts, the Bush Administration and credit card agencies. This iBrief details recent trends in the regulation of online gaming, and concludes that while absolute prohibitions may be ineffective, the combined resistance of these institutions will prevent the industry from expanding its customer base.

Can The Internet Kill? Holding Web Investigators Liable For Their Criminal Customers, Mark Sweet

Duke Law & Technology Review

As the wealth of online information grows, private investigation websites are becoming more powerful and popular. Their client lists include attorneys, insurance agencies, banks, neighbors, employers, and, oh yes, stalkers and identity thieves. When a stalker used information from a web investigator to track down and kill his victim, the New Hampshire Supreme Court held the investigator liable for its customer's criminal acts. This iBrief considers how far liability should extend for a web investigator, distinguishes web investigators from handgun and bullet retailers, and explains how this decision realizes a policy against privacy invasions.

The E-Government Act: Promoting E-Quality Or Exaggerating The Digital Divide?, Jaime Klima

Duke Law & Technology Review

In passing the E-Government Act of 2002, Congress has promised to improve the technological savvy of federal agencies and make more public forms and records available online. However, the question is whether doing so will alienate those Americans who do not have Internet access. Will the Act exaggerate the gap between the Internet haves and have-nots that is known as the digital divide? This iBrief identifies the e-quality issues arising from the E-Government Act and argues that implementation of the Act, however well intentioned, may exaggerate the digital divide.

The Pros And Cons Of Online Dispute Resolution: An Assessment Of Cyber-Mediation Websites, Joseph W. Goodman

Duke Law & Technology Review

Due to increasing use of the Internet worldwide, the number of disputes arising from Internet commerce is on the rise. Numerous websites have been established to help resolve these Internet disputes, as well as to facilitate the resolution of disputes that occur offline. This iBrief examines and evaluates these websites. It argues that cyber-mediation is in its early stages of development and that it will likely become an increasingly effective mechanism for resolving disputes as technology advances.

Mom & Pop V. Dot-Com: A Disparity In Taxation Based On How You Shop?, Jaime Klima

Duke Law & Technology Review

With the extension of the Internet Tax Freedom Act, concern has resurfaced over whether and when shoppers will be forced to pay state sales taxes on purchases made over the Internet. In fact, consumers should be paying sales tax on all Internet purchases, though few actually do. This iBrief explores the current law on taxation of e-commerce purchases and argues that small modifications by state tax administrators will align the tax treatment of mom & pop stores and e-retailers.

Online Brokers And The Sec: Still Working Out The Glitches, Philip J. Bezanson

Duke Law & Technology Review

Common sense dictates that some customers of an on-line brokerage service are bound to have some of the same difficulties in conducting business but that does not mean all customers or even many customers had the same problems. In addition, as to customers who may have had problems executing buy and/or sell orders, there are many variables regarding the circumstances and conditions for each customer's transaction. Variables such as, but not limited to, account status, time of order, i.e., time of day and day of the week, and the customer's computer modem capabilities and internet service provider. Plaintiffs fail to …

The Internet Opens Its Doors For .Biz-Ness, Corey Ciocchetti

Duke Law & Technology Review

Starting on October 1, 2001, .BIZ will become active as the Internet's newest top-level domain; its space reserved solely for businesses engaging in "bona fide" commercial activities. This space has the potential to reinvigorate, at least partly, the immense economic potential of the Internet by stimulating a multitude of e-commerce transactions so common only a few years ago. This iBreif explores the history of how and why this new top-level domain came into being. Following this history lies a discussion of the current .BIZ registration process as well as an analysis of the corresponding Intellectual Property Claims system.

Are Domain Names Property? The Sex.Com Controversy, Christine Soares

Duke Law & Technology Review

Do domain names constitute tangible property? Since domain names may be purchased or transferred, the answer at first glance would appear to be "yes". Congress has also dictated that domain names corresponding closely to existing trademarks may be considered tangible property under certain circumstances. However, a recent case involving the lurid and lucrative domain name "sex.com" has determined otherwise. This iBrief examines the impact of characterizing domain names as tangible or intangible property on the causes of action available for domain name litigation.

Monitoring Employee E-Mail: Efficient Workplaces Vs. Employee Privacy, Corey A. Ciocchetti

Duke Law & Technology Review

Employer monitoring of electronic mail constitutes an emerging area of the law that is clearly unsettled at this point in time. This iBrief demonstrates that the privacy rights of non public-sector employees are relatively unprotected by the federal and state constitutions, broad judicial interpretations of enacted privacy legislation favor legitimate employer-monitoring practices, and many of the elements of common law claims are difficult for employees to prove.

The Complexities Of On-Line Mutual Fund Advertising: A Summary Of The Relevant Regulations, Corey Ciocchetti

Duke Law & Technology Review

As the investment marketplace advances with current technology, paper-based advertising has quickly been supplemented by on-line advertising. Interestingly, both the Securities Exchange Commission and the National Association of Securities Dealers are treating this new medium similarly to the old-fashioned paper-based medium. This iBrief discusses and summarizes the current regulations surrounding one emerging form of on-line advertising - that of mutual funds. This discussion is intended to form a solid foundation from which an interested party may delve further into this emerging area of e-commerce.

Software Disclosure And Liability Under The Securities Acts, Carl C. Carl

Duke Law & Technology Review

Can a software company be liable under the securities laws when it sells securities without disclosing that it will not give free updates on current software as new technology makes them obsolete? What exactly must be disclosed and how does one say it without subjecting the company's business practices to close scrutiny? The Eleventh Circuit recently applied the time-honored standard of meaningful cautionary language to software companies in finding that the disclosures of a software company were enough to avoid liability under the securities laws when the company provided meaningful cautionary language in their prospectus.

Ftc Vs. Toysmart, Daniel Bronski, Conway Chen, Matthew Rosenthal, Robert Pluscec

Duke Law & Technology Review

Last summer, Toysmart agreed to a settlement with the Federal Trade Commission concerning use of its customer information database. Under the terms of the settlement, the defunct Internet toy retailer was permitted to sell customer information without either providing its former customers notice or giving them an opportunity to block the sale or use of their personal information. This issue ignited a privacy-rights maelstrom, but ended anti-climatically for Toysmart; in January, Buena Vista Internet Group, a Disney subsidiary and 60% majority shareholder of Toysmart, agreed to compensate the company's creditors $50,000 for the privilege of destroying the database. U.S. Bankruptcy …

Are Online Business Transactions Executed By Electronic Signatures Legally Binding?, Carl Carl, Corey Ciocchetti, Wes Barton, Nathan Christensen

Duke Law & Technology Review

Most of us believe that we make contracts over the Internet all the time. We buy books and computers, arrange for hotels and planes, trade stocks, and apply for mortgages. But as recently as seven months ago that transaction was most likely not legally binding. This uncertainty led many practitioners, businesspeople, and consumers to question the efficacy of contracts executed by electronic signatures. Without a uniform standard, many jurisdictions ruled inconsistently, while other jurisdictions did not consider the issue. This disparate treatment threatened the legitimacy of online agreements and deprived both consumers and businesses of the certainty and predictability expected …