following:
The FBI is launching "cyber-swat" teams in San Francisco, Washington =
D.C., and New York to investigate hacking, industrial espionage, =
pirating, and other computer crimes. Says Tom Fuentes, head of the =
operation, "The security of the country is at stake."
San Francisco Chronicle, 8/30/95, B1.
A southern California retired police detective, Robert Muldrew, and =
two private investigators, Steven Kudler and David Westland, were =
charged with unauthorized access of police and other computers, =
conspiracy, and fraudulent telecommunications access, as
well as selling confidential information. San Jose Mercury News, =
8/10/95, 10B.
Seven subscribers to a Cincinnati electronic bulletin board system =
filed a class action lawsuit over a June raid on the offices of the =
Cincinnati Computer Connection BBS. The Hamilton County Computer Crimes =
Task Force seized the entire computer system,
including all the private electronic mail of the subscribers, in the =
course of seeking 45 computer image files. The lawsuit claims violation =
of the First Amendment, the Fourth Amendment, the federal Electronic =
Communications Privacy Act of 1986, and Ohio common
law privacy rights.
The publisher of Multimedia Wire (MMWIRE) sued Walt Disney Co. for =
copyright infringement. The suit claims Disney "systematically" produced =
multiple copies of MMWIRE's copyrighted newsletter (an electronic daily =
delivered overnight by fax and electronic
mail to executives at entertainment, media, technology, and =
telecommunications companies) and distributed copies through Disney's =
offices in LA, and elsewhere in the U.S. and Canada.
Carnegie Mellon University ordered an investigation into whether a =
researcher, Martin Rimm, committed scientific misconduct in his =
nationally publicized study of dissemination of pornography on the =
Internet and private computer bulletin board services. The study
reached the cover of Time magazine, but has come under harsh attack. =
San Jose Mercury News, 8/9/95, 1F.
Damien Doligez, with the National Institute for Research in Computer =
Science and Control in France, networked 120 computers, including 2 =
supercomputers, to read a supposedly secure message sent using Netscape =
Communications Inc.'s Navigator software.
Experts say the problem is a predictable consequence of U.S. export =
laws, which prohibit U.S. companies from exporting powerful encryption =
software. The international version of the Netscape Navigator uses a =
40-bit key in compliance with U.S. export restrictions,
while the U.S. version uses a 128-bit key. Netscape previously said it =
would take a top-of-the-line desktop computer 6 months non-stop to crack =
a message encrypted with its 40-bit key. San Jose Mercury News, 8/17/95, =
1A.
A 24-year-old mathematics graduate, Vladimir Levin, allegedly used a =
computer in his office in St. Petersburg, Russia, to hack into Citibank =
New York and remove $2.8 million. U.S. authorities are seeking his =
extradition from Britain. Authorities also arrested two
people in the United States, one in Israel, and two in the Netherlands.
The Securities and Exchange Commission filed a civil complaint in =
Rhode Island against a 19-year old San Jose man, Daniel Odulo, charging =
him with posting a false and misleading securities solicitation on the =
Internet. Odulo had sought to sell $1,000 bonds
that would pay 20%, saying they had a "very low risk," so he could fund =
a $500,000 venture to raise cultured eels. Odula gave the impression his =
company was an ongoing business, when it is in fact a proposed venture, =
and included endorsements from fictitious
financial advisers. San Jose Mercury News, 8/8/95, 1C.
Capital Cities/ABC Inc. reportedly dismissed the manager of on-line =
services at ABC News, Mitch Davis, for transmitting a sexually-explicit =
photograph over the company's computer network. ABC has reportedly =
referred the matter to the FBI. New York Times,
8/11/95, C5.
U.S. Marshalls seized the computer of a former employee of the Church =
of Scientology, Arnaldo P. Lerma, who allegedly posted the 134-page text =
of a Scientology document setting out its secret scriptures. Lerma was =
told the computer would be returned after
Scientology documents had been deleted. New York Times, 8/14/95, A7.
Network Solutions Inc., the company that assigns Internet domain =
names, announced a new policy requiring companies that register a domain =
name to indemnify Network Solutions in any legal action and cover its =
legal fees, and also requiring companies
disputing and Internet address to prove it holds a trademark =
certificate for the name from the U.S. Patent & Trademark Office. New =
York Times, 8/14/95, C5.
Interactive Gift Express Inc. announced it filed a patent =
infringement suit against 18 computer and publishing companies for =
alleged infringement of a patent granted in 1985 and licensed by =
Interactive in 1994, allegedly covering a system and method "whereby
digital information is sold and downloaded from a catalogue that comes =
from a host computer to a point-of-sale terminal," such as a home =
computer, The companies named in the suit include Adobe Systems, Inc., =
Broderbund Software Inc., CompuServe, Intuit Inc.,
McGraw-Hill Cos. Inc., Waldenbooks, and Ziff Communications Co. New =
York Times, 8/28/95, C2; San Francisco Chronicle, 8/28/95, B2.
Three writers' groups, the Authors Guild, the American Society of =
Journalists and Authors, and the National Writers Union, criticized a =
new policy by the New York Times requiring outside writers to relinquish =
all rights, including electronic rights, to materials
published in The Times. The policy does not cover writers for the =
newspaper's Op-Ed page or the New York Times magazine. New York Times, =
8/9/95, C5; San Jose Mercury News, 8/9/95, 3F.
The Federal Trade Commission issued new national standards for =
telephone sales, effective January 1, 1996, require telemarketers to say =
at the outset that it is a sales call and explain the product or service =
offered. Total cost must be disclosed prior to asking for
payment. The FTC also imposed stiff fines on "credit card laundering," =
in which money is collected through a credit card even if companies like =
Mastercard and Visa have refused to authorize the transfer. This is done =
by a company not authorized to receive money
electronically persuading an authorized company to collect the money =
for it by running the credit card through the legitimate company's =
card-swipe machine. New York Times, 8/17/95, C3; San Jose Mercury News, =
8/17/95, 1F.
In the midst of trial, a San Francisco court dismissed a repetitive =
stress injury case brought by a San Francisco graphic designer against =
Apple Computer, Inc. The plaintiff, Carolyn Brust claimed injury in her =
right hand was caused by her Apple mouse and
keyboard. The dismissal came after Judge James Warren disallowed =
testimony by an occupational health professor, because it did not meet =
the California legal standard for admissibility. The San Francisco =
Recorder, 8/4/95, p.1.
The Justice Department extended its investigation of Microsoft Corp. =
into the bundling of Internet browsing software. The Justice Department =
also announced it would not take antitrust action against Microsoft =
Corp. before the August 24, 1995, introduction of the
Microsoft network, but that its investigation will continue. San Jose =
Mercury News, 8/1/95, 1F; New York Times, 8/9/95, C1.
The Computer & Communications Industry Association asked U.S. =
District Court Judge Thomas Penfield Jackson to broaden the government's =
antitrust settlement with Microsoft Corp. to extend to Windows NT the =
same restrictions the settlement places on
licensing and marketing practices involving DOS and Windows operating =
system software. San Jose Mercury News, 8/17/95, 1F.
The Securities and Exchange Commission will maintain free Internet =
access to its library of corporate records. Although private companies =
have offered to take over the Edgar on-line service that allows the =
reading of corporate filings made with the agency, SEC
Chairman Athur Levitt Jr. said taxpayers and shareholders have already =
paid to compile this information and should not have to pay again, =
"[a]nd a library that charges people by the page, or by the minute, is =
no longer a library." The cost for the SEC to take on
Edgar would be "quite modest," said Levitt. New York Times, 8/28/95, =
C2.
The House of Representatives approved a telecommunications bill that =
vastly reduces regulation on everything from cable television to local =
and long-distance phone service. The bill would eliminate limits on =
cable rates, allow long-distance carriers, cable
companies and others to compete with local phone companies, allow Bell =
companies to offer long-distance service if there are local competitors =
offering business and residential service, and require new television =
sets to contain a feature (the v-chip) that would allow
parents to block violent materials, among other things. New York Times, =
8/5/95, p.1. =
CyberLex (tm) is published solely as an educational service. The author, =
a California attorney, is Executive Editor of LEXIS COUNSEL CONNECT =
CALIFORNIA. He may be contacted at cyberlaw.us@counsel.com or =
cyberlaw@cyberlaw.com. Questions and comments
may be posted on America Online (go to keyword "CYBERLAW") or CyberLaw =
World Wide (http://www.portal.com/~cyberlaw/), made possible with =
support from Portal Communications Co. CyberLex is a trademark of =
Jonathan Rosenoer. Copyright =A9 1995 Jonathan
Rosenoer; All Rights Reserved.