Attorneys Handling Internet Law Cases For Clients Worldwide

Our attorneys understand the Internet and technology. In fact, we represent some of the largest players in the Internet space concerning legal issues arising in the on-line world. Because we are a niche law firm, we know how to move the ball down the field in an efficient, cost-effective manner.

Founding Attorney Enrico Schaefer:  "Attorneys who specialize Internet law and back-end technology.  If you are a technology company, affiliate marketing player, e-commerce company, software developer or web site manager, give us a call toll free (866) 936-7447."

Traverse Legal attorneys can help your company, in-house counsel or trusted out-side firm navigate the challenging issues presented by an increasingly complex on-line world. From end user agreements, privacy agreements and e-commerce/affiliate contracts, we have you covered.

Our attorneys  handle a variety of complex litigation and cyber-law issues in the following niche areas, including:

Technology & Web Services Contracts  -  Uniform Domain Name Dispute Resolution Policy
On-Line Retailer Representation  -  Internet Defamation, Censorship & Free Speech
E-Commerce Negotiation & Disputes  -  Web Site & Blog Copyright & Fair Use
Affiliate, Reseller and Retail Agreements -  Domain Portfolio Analysis & Monetization
ISP, Host and Content Provider Contracts -  Gripe Site & Cybersquatting Issues
Web site, End-User and IP Licensing Contracts -  Internet Business Formation & Financing
Trademark Registration, Monitoring & Enforcement -  Piracy and Brand Counterfeiting
Internet Content Licensing & Copyrights - Hacking, Spam & Phishing Attacks
Anti-Cybersquatting Protection Act - Data Privacy and Security
Digital Millennium Copyright Act -  User Generated Content (UGC)

FTC Issues New Endorsements Guidelines Under 16 CFR Part 255 - "Word of Mouth Marketing"

16 C.F.R. Part 255: Guides Concerning the Use of Endorsements and Testimonials in Advertising: Notice Announcing Adoption of Revised Guides.

Current Regulations - 16 C.F.R. Part 255

Our experienced internet attorneys can help you achieve compliance with Part 255. If you have a question about the application of Part 255 to your business, blog or product, contact us today, or call toll free 866.936.7447.

The Federal Trade Commission (“FTC” or “Commission”) is adopting revised Guides Concerning the Use of Endorsements and Testimonials in Advertising with an effective date of December 1, 2009.

A requirement that “bloggers who make an endorsement must disclose the material connections they share with the seller of the product or service.” Fines for violating the new rule will run up to $11,000 per post.

Under the revised Guides, advertisements that feature a consumer and convey his or her experience with a product or service will be required to clearly disclose the results that consumers can generally expect.  The revised Guides also add new examples to illustrate that “material connections” (sometimes payments or free products) between advertisers and endorsers – connections that consumers would not expect – must be disclosed. 

Thus, bloggers who make an endorsement may have to disclose the material connections they share with the seller of the product or service. Paid endorsements – like any other advertisements – are considered deceptive if it makes false or misleading claims.

Clickwrap Arbitration Clause Found Enforceable

Thanks to Evan Brown over at the Internet Cases blog for pointing out the recent case Via Viente Taiwan, L.P. v. United Parcel Service, Inc., 2009 WL 398729 (E.D. Tex. February 17, 2009) in his article titled “Clickwrap binding despite claim of no opportunity to read terms”, which discusses how that the clickwrap agreement between the United Parcel Service and one of its customers was in fact binding.  The court rejected all of the defendant’s arguments that it never had an opportunity to review the clickwrap agreement before the software was downloaded, although the primary point seems to be that the defendant was a very large and sophisticated company who should have been aware of the clickwrap agreement and certainly retained the benefits of the software.

Affiliate Marketing Client Sells Website For $15 Million

A Traverse Legal client www.bankaholic.com and Blackshore Properties, Inc. recently sold its website and related intellectual property to Bankrate, Inc.  for $15 Million.  Traverse Legal trademark and domain name dispute attorneys assisted Blackshore Properties in securing and protecting its online brands over the last 18 months.

Bankaholic.com offers consumers advice and information concerning bank rates and bank promotions through its blog and social networking features.  We would like to congratulate our client Johns Wu, founder of bankaholic.com, on this tremendous accomplishment.

E-Commerce Compliance as it Relates to Licensing – Auditing is a Must for Companies

Do you know what the licensing agreements your organization has signed say and mean?  If not, you are at risk for large fines and possibly even larger legal fees.  Organizations have been formed to identify companies that are not complying with licensing agreements, with software vendors for example. 

So what can you do?  The first thing you should have done is an audit.
An audit is the first step and has been recommended by others dealing with software licensing matters.  Depending upon what the audit reveals, proper action can be taken to ensure compliance. 

How To Hide Your Web Site Content As Part of An Emergency Management Plan

LOS ANGELES / Chatsworth, California: Metrolink is a commuter train agency in Los Angeles California which recently had the the unfortunate experience of having one if its engineers crash killing 25 victims and injuring over 100 other people.  Their spokesperson admitted that the train wreck was caused by human error. She later resigned, or was asked to resign, while Metrolink withdrew its admission of responsibility for the deadly train accident.  Within a short period of time, Metrolink had pulled its web site, replacing it and redirecting all pages to a single page "Emergency Alert" with a well crafted and terse message about the accident and train scheduling issues.  A search of archive.org reveals that Metrolink was shrewd enough to preclude archive indexing. It is impossible to see what information they 'had' on their web site about who they are, what they do and other biographical information. DomainTools keeps an image archive of the site, which is available here. Wouldn't you just love to know what information is contained in their "Safety" section which appears on their top navigation tabs?

Google Will Delete IP Information From Search Log After 9 Months

Official Google Blog: Another step to protect user privacy

Another step to protect user privacy

Today, we're announcing a new logs retention policy: we'll anonymize IP addresses on our server logs after 9 months. Back in March 2007, Google became the first leading search engine to announce
a policy to anonymize our search server logs in the interests of
privacy. And many others in the industry quickly followed our lead.
Although that was good for privacy, it was a difficult decision because
the routine server log data we collect has always been a critical
ingredient of innovation. We have published a series of blog posts explaining how we use logs data for the benefit of our users: to make improvements to search quality, improve security, fight fraud and reduce spam.

No Olympic knockoffs

CNN's Eunice Yoon reports on how China is cracking down on counterfeiters for the Olympic games.

China.  It’s often referred to as the factory of the world.  An economy built on the back of manufacturers. Just a 45-minute journey from Hong Kong, the port city of Shenzhen is a center for business and shopping.  It’s also a hub of illegal trade.

A lot of tourists know, just across the border from Hong Kong into China is a nexis point or a place to go to by counterfeits.

For years, luxury goods makers have hired private investigators like Ted Kavowras to try to end the production and sale of these bogus goods.  But the fight against fakes here has been a grueling uphill battle.  For the Beijing Olympics, we had heard Chinese authorities were cracking down on counterfeiters, carrying out more raids like this one.  So, we crossed the border to Shenzhen to see the situation for ourselves.  At first, it seemed, not much had changed.

This place is famous for its fakes, and it’s right across from the train station.  We had only been here for about 30 seconds before people started coming up to us to try to sell some of their bags.

But quickly, we found sellers had altered their tactics.  Instead of taking us to the mall, we were led to a nearby hotel, and inside one of the rooms, bags concealed and sold illegally in an effort to evade the police.  Later at the mall, we found other operators selling counterfeits, but storing them in secret chambers.  This vendor agreed to speak with us if we didn’t use his real name.  He told us to call him “Dee.”  Business is a bit harder now, he says, but we have hired people to follow the inspectors and tell us when they are coming.

So this is what we got.  This is a fake Prada bag.  This is a fake Louis Vuitton bag. This is actually supposed to be from the summer 2008 collection.  Take a look at the quality of it and the workmanship.  This Prada bag actually even comes with its own certificate of authenticity.

Catalogs like this one are in hand at stores like Dee’s, so buyers can order their own branded bags.  This issue is targeted at Olympic shoppers.  Buying fakes is not against the law here, but selling them is.  Dee says he is still willing to take the risk.  I have to make a living, he explains.  Protecting jobs and social stability have been priorities for the Chinese government.  That’s why some people argue authorities here have been slow to shut down illegal manufacturing by factories like the one shown in this video shot by private investigators.  Some international companies say Beijing should be doing more, and not just to save face in front of overseas guests.  Kavowras says he’ll take whatever help he can get:  “It’s a worldwide issue.  Customers from overseas, everywhere in the world are driving it.”

But perhaps not as many customers during the Olympics.

EBay ordered to pay $63M over counterfeit luxury goods

EBay ordered to pay $63M over counterfeit luxury goods sold on its site - Austin Business Journal:

Online marketplace eBay Inc. says it plans to appeal a French ruling that the company must pay $63 million because counterfeit goods were sold through its site.

San Jose-based eBay (Nasdaq:EBAY) says it takes down counterfeits "swiftly" and added that the ruling by the Tribunal de Commerce in Paris, France, "is not about our fight against counterfeit; today's ruling is about an attempt by (the manufacturer) to protect uncompetitive commercial practices at the expense of consumer choice and the livelihood of law-abiding sellers that eBay empowers every day."

As part of the ruling eBay was ordered to pay damages to Louis Vuitton and Christian Dior for the sale of counterfeit products and was also ordered to pay perfumiers Christian Dior, Kenzo, Givenchy and Guerlain for infringing on a selective distribution network.

The court said eBay will be fined for every day that it doesn't stop advertising sales of the perfume brands.

Technorati Tags: counterfiet, ebay, Louis Vuitton, Christian Dior

ICANN's Anti Phishing Working Group Analyzes Top Level Domains and Subdomains for Phishing Scams

Phishing, as Wikipedia defines it, is the “criminally fraudulent process of attempting to acquire sensitive information such as usernames, passwords, and credit card details by masquerading as a trustworthy entity in an electronic communication.”  Phishing is a prevalent problem for e-commerce business owners because it strikes at the heart of a business’s goodwill, namely, consumer trust.  ICANN’s Anti Phishing Working Group (APWG) conducted a survey and analysis of the relationship between domain name registration and administration and phishing scams in 2007, which focused on a new and disturbing trend in registrar impersonation and other fraudulent domain name uses.

Terms of Service Agreements: Copying From Others Will Cost You in the Future

Starting a tech company can be a costly venture, but copying another’s Terms of Service or Terms of Use agreement can be even costlier.  Not only can a company be liable for copyright infringement for copying a Terms of Service or Terms of Use agreement, but using a standard form agreement can lead to extremely complex legal problems down the road.  Terms of Service and Terms of Use agreements are a company’s main line of defense against third-party liability for vicarious or contributory infringement of copyrights or trademarks, and for defining the general contractual relationship between service provider and user. 

EU to Revise E-Comemrce Consumer & Privacy Laws

A new set of consumer contract laws to harmonize the rules that govern online selling across the European Union (EU) will be proposed this autumn by the European Commission. The EU's consumer chief, European Consumer Commissioner Meglena Kuneva,  also promised fresh guidance on internet privacy issues.

Mr. Kuneva said that while e-commerce is succeeding at national level, cross-border e-commerce is failing to keep pace. The European Commission believes that simpler and better-harmonized consumer laws will boost the sector. For instance:

The main EU laws on e-commerce in force today are known as the E-commerce Directive and the Distance Selling Directive. However, each Directive gave member states some flexibility in their implementation so national laws are inconsistent. For example, the cancellation period for goods bought online is seven working days in the UK and 14 days in Denmark. In addition, each member state has national consumer laws that apply to all sales but vary widely. A court in France is unlikely to let a UK website deny a French consumer the protection of French consumer law.

The revised laws will certainly help US based companies selling their products and services on-line in the EU.  Read the entire speech below.

Will New York Online Sales Tax Legislation Kill E-Commerce?

eTail dTail Blog: Will New York Online Sales Tax Legislation Kill E-Commerce?

The headline for this entry may be drastic, but the bill that passed in the New York State legislature last week may have huge ramifications to e-commerce/mobile commerce, to how online retailers interact with their clients, and to how consumers shop online into the future.

The good news, if you are one who does not like online sales taxes, is that this recent move by the state of New York is not new. The Illinois legislature demanded onlines sales tax to be paid in 2003 and some larger retailers actually voluntarily paid these taxes to some states that demanded it. But, overall, there was no logical enforcement policy for all online merchants to pay the online sales tax, so people have simply ignored attempts by several states to enforce their laws and ensure that companies and consumers pay online sales taxes for purchases by residents in their respective state.

Furthermore, there is a lobbying organization representing 30 states that has tried to enforce an online sales tax code, but they started in 2000 and have had little success in passing legislation at the national level or enforcing laws at the state and local level.

Technorati Tags: e-commerce, sales tax, new york

New York Legislature Passes “Amazon Tax” Bill into Law: Online retailers must begin collecting sales tax on purchases shipped to New York

We recently posted about the so-called “Amazon Tax” in New York here.  Last night, the New York Legislature passed a Bill that requires online retailers to begin collecting sales taxes on purchases shipped to the state, even if they have no operations or employees working there.  New York Governor David Paterson is expected to sign the measure soon.

How to Avoid Email Blacklists, How to Be Removed If Your Email Ends up in the Blacklist Database

Email Blacklists “Kind Of A Crazy Thing”: How to avoid, how to be removed

What is an email blacklist?

Email blacklists are compiled by industry watchers who track down the originating servers for emails that have the earmarks of spam. The resulting lists of web hosts, domains or IP addresses are used by anti-spam software companies, Internet service providers and corporate IT departments to determine what emails get through.

E-Commerce CLE: Protecting Your Brand in Cyberspace

Protecting Your Brand in Cyberspace - West LegalEdcenter

The Internet can be a scary place for intellectual property. Online content creators and owners are susceptible to theft, counterfeiting, and worse at the hands of skilled pirates who know the ins and outs of technology and the law. Only businesses and attorneys with the knowledge to protect their trademarks, and their online content will be able to preserve the quality of their brand name and their revenue stream.

Amazon Tax: Sales Tax Proposed for e-commerce Affiliate Sites in New York

InternetNews Realtime IT News – N.Y. Lawmakers Near Vote on 'Amazon Tax'

As New York lawmakers hash out the state's budget, one contentious issue may have a dramatic impact beyond the Empire State: A provision requiring many online retailers to collect sales tax on state residents' purchases.

The provision, now facing a coming vote as part of state legislators' 11th-hour efforts to pass a state budget, could require e-tailers to collect taxes even if they have no employees or offices within the state.

If signed into law with the budget, the so-called "Amazon tax" would apply to merchants offering commissions in exchange for customer referrals, a practice known among Internet retailers as an affiliate program.

Many online retailers, such as Amazon, Barnes & Noble and Buy.com, have programs that allow individuals or organizations to include a link to the e-commerce site on their own Web page. The affiliate receives a commission for sales generated through the referral.

Technorati Tags: e-commerce, affiliate, amazon

Clickwrap Contract Enforcement: Arbitration & Forum Selection Clauses

Recommended Reading: For lawyers seeking to understand the contest and enforceability of clickwrap agreements, we recommend the following article written by Rachel Cormier Anderson and published by the Shidler Journal of Law

Enforcement of Contractual Terms in Clickwrap Agreements >> Shidler Journal of Law, Commerce & Technology

In three recent cases, courts have invalidated portions of consumer clickwrap agreements containing either forum selection or binding arbitration clauses. In the first case, the Washington State Court of Appeals invalidated a forum selection clause found in a clickwrap agreement because the clause was contrary to state consumer protection policies. In the second case, the California Court of Appeals rejected a clickwrap agreement calling for binding arbitration in a specified forum when the plaintiff sought to bring a class action claim. Finally, the U.S. Court of Appeals for the Fifth Circuit recently declared a binding arbitration clause because it was unconscionable. Although these cases address a relatively new form of contracting known as "clickwrap agreements," the essential issue in each case was not new. These cases suggest that courts are willing to accept the validity of clickwrap agreements in general, but have invalidated specific clauses based on traditional contract doctrines such as unconscionability and public policy. This Article examines these recent cases in light of existing precedent concerning the enforceability of clickwrap agreements

Technorati Tags: clickwrap agreement

Clickwrap Contract Enforcement Often Depends on the Specific Facts and Jurisdiction

The legal status of shrink wrap contracts in the US is somewhat unclear. One line of cases follows ProCD v. Zeidenberg which held such contracts enforceable (see, e.g., Brower v. Gateway) and the other follows Klocek v. Gateway, Inc., which found the contracts at hand unenforceable (e.g., Specht v. Netscape Communications Corp.), but did not comment on shrink wrap contracts as a whole. These decisions are split on the question of consent, with the former holding that only objective manifestation of consent is required while the latter require at least the possibility of subjective consent.

E-Commerce Contract Litigation Presents Unique Challenges

Although issues raised by contracts formed on the Internet are affected by traditional contract principles, these contracts often present new and challenging issues. One such issues is the enforceability of "clickwrap" and, its closely related software counterpart, "shrinkwrap" agreements.

A clickwrap agreement (also known as a "clickthrough" agreement or clickwrap license) is a common type of agreement driven by technology and the Internet. The contracts present themselves as part of an "I Agree"check box on a web form, on-line software download, installation process of many software packages or in other circumstances where agreement is sought using electronic media. The name "clickwrap" came from the use of "shrink wrap contracts" in boxed software purchases, which "contain a notice that by tearing open the shrinkwrap, the user assents to the software terms enclosed within".

E-Commerce Legal Issues Continue to Evolve

Internet and Technology laws are a fast-growing area for policy makers, lawyers, business owners, and individual consumers. As technology changes at a rapid pace, consumer rights and business e-commerce rights may be challenged in new and unusual ways.

Cyber laws and related amendments can be leveraged by consumers and enforce regulations regarding privacy acts, internet crime, internet fraud, internet business practices, online gambling, freedom of expression, and more. Lawyers and law firms specializing in Internet and Technology laws can help with your questions and complaints.