February 2007 Cyber Crime Newsletter
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JANUARY - FEBRUARY 2007 CYBER CRIME NEWSLETTER Issue 23 News Highlights in This Issue: Table of Contents Features Survey: Over Half of Teens Social Network 11 High Court Hears Software Patent Case 2 Agenda Sessions Set for Cyber Crime 101 16 Michigan Enacts Data Breach Law 14 AGs Fighting Cyber Crimes 3 AG King Speaks at Internet Safety Program Arizona AG Gives Internet Safety Talk Prosecutors’ Guide to Digital Evidence Released 15 AG Suthers Gives Safe Surfing Statistics Florida AG: Internet Predator Sentenced Arkansas Court Can Try Computer Fraud Case 10 AG Morrison: Sex Offender Bills Introduced Kentucky AG’s Bureau Gets Eight Predators AG Foti’s Agents Arrest Online Predator Survey Doubts Internet Users Protect Privacy 13 Michigan AG’s Team Arrests Child Predator AG Nixon Gets Injunction for Internet Fraud Nebraska AG Unveils Cyberstalking Bill Personal Information Given to ISP is Private 9 AG King Says Internet Predator Sentenced New York AG Settles Adware Case Almost Half of Teens Use Instant Messaging 11 AG Cooper Presents Bills to Stop Predators Pennsylvania AG’s Unit Arrests Predator AG Lynch Files CID for Security Breach Supreme Court Hears Microsoft-AT&T Case 2 South Carolina AG: Predator Arrested AG Abbott’s Unit Gets Pornographer Plea Utah AG Announces Predator Convicted FTC Says Age Falsification is Risk 7 AG McDonnell Presents Anti-Predator Bills Washington AG Releases Top Net Complaints Fees Denied in CAN-SPAM Decision 10 AG McGraw Honors Nigerian Scam Victim In the Courts 7 ICANN Revives Plan for .xxx Domain 12 Forensics Software Testifier is Expert No Employer Liability Under CDA No Right of Privacy in Social Security Number Agenda Courses Set for Cyber Crime 101 Course 15 Right of Privacy Found in Data Given to ISP Defamation Claim Requires Finding of Malice Investigating Electronic Crime Report Released 15 No Award of Fees in CAN-SPAM Case Injunction Against Missouri PSC Denied Arkansas Court Can Hear Computer Fraud Case Most Web Sites Inaccessible to Disabled 11 News You Can Use 11 Over Half of Teens Use Social Networks Injunction Against Missouri PSC Denied 10 Most Web Sites Inaccessible to Disabled Almost Half of Teens Use Messaging ICANN Wants to Delete Unused Domains No Right of Privacy in Social Security Number 8 ICANN Wants to Revive .xxx Domain Indiana U. Puts Content on iTunes Forensics Software Testifier is Expert Witness 7 Survey Finds ID Theft Declining More Internet Journalists Being Jailed Survey Doubts Users Protect Privacy Wi-Fi Group Simplifies Network Security 13 Wi-Fi Group Simplifies Network Security FTC Says Age Falsification is Risk Study Finds More Internet Journalists Jailed 13 Legislation Update 14 Michigan Enacts Security Breach Law ISP Not Liable for User’s Pornography 8 Tools You Can Use 15 Investigating Electronic Crime Report Prosecutors’ Guide to Digital Evidence The Cyber Crime Newsletter is developed under the Cyber Crime Training Partnership between the National Association of Attorneys General (NAAG) and the National Center for Justice and the Rule of Law (NCJRL) at the University of Mississippi School of Law. It is written and edited by Hedda Litwin, Cyber Crime Counsel ([email protected], 202-326-6022). This project was supported by Grant No. 2000-DD-VX-0032 awarded by the Bureau of Justice Assistance. The Bureau of Justice Assistance is a component of the Office of Justice Programs, which includes the Bureau of Justice Statistics, the National Institute of Justice, the Office of Juvenile Justice and Delinquency Prevention, and the Office of Victims of Crime. Points of view or opinions in this document are those of the authors and do not represent the official position of the United States Department of Justice. The views and opinions of authors expressed in this newsletter do not necessarily state or reflect those of the National Association of Attorneys General (NAAG). This newsletter does not provide any legal advice and is not a substitute for the procurement of such services from a legal professional. NAAG does not endorse or recommend any commercial products, processes, or services. Any use and/or copies of the publication in whole or part must include the customary bibliographic citation. NAAG retains copyright and all other intellectual property rights in the material presented in the publications. In the interest of making this newsletter as useful a tool as possible for you, we ask that you keep us informed of your efforts. Additionally, we would like to feature articles written by you. Please contact us with information, proposed articles and comments about this newsletter. Thank you. BATTLE OF THE GIANTS: Microsoft stipulated that it induced SUPREME COURT TO RULE ON infringement of AT&T’s patent when it supplied SOFTWARE PATENTS the Windows disks to U.S., but not foreign, computer manufacturers. However, the court By Hedda Litwin1 found Microsoft liable for all foreign sales of computers using Windows under 35 U.S.C. On February 21, 2007, the U.S. Supreme §271(f) which makes it an infringement to ship a Court heard oral arguments in Microsoft Corp. v. patented product’s components to another country AT&T Corp., No. 05-1058, a case that addresses for assembly. the issue of whether it is a violation of U.S. patent law for a company to send software contained on On appeal, the Federal Circuit affirmed, a master disk overseas for copying and holding that (1) software can be a "component" of installation. a patented invention within the meaning of Patent Act Section 271(f), and (2) liability attaches to the AT&T owns a patent for a digital speech copies made abroad because those copies were coder, a device which compresses a digital speech "supplied" from the United States. signal for easier transmission and storage. Most cell phones and personal computers use the This case brings two questions before the device. AT&T sued Microsoft in the U.S. District court. The first is whether software object code Court for the Southern District of New York for can be a component of a patented invention. patent infringement of its coder, which was Microsoft argues that the software code is just a embedded in the Windows operating system. set of instructions and cannot be a component of Microsoft stated at trial that when Windows is an invention; only software contained in some installed on a computer, that computer, but not the form of media can be a component. Thus, Windows software itself, infringes AT&T’s Microsoft maintains that it is the Windows code patent. Microsoft said it supplies Windows to contained on a disk and installed on a computer – U.S. and foreign computer manufacturers on what not the Windows code in the abstract – that is a they call “golden master disks,” and the component of AT&T’s invention. AT&T counters manufacturer then uses these disks to make copies that there is no distinction between the software of Windows software to install on the computers code and the product, and that the computer it sells. loaded with Windows software is the infringer. 2 If software object code can be a Microsoft, and Seth Waxman, the 41st United component of a patented invention, the second States Solicitor General, argued for AT&T. Daryl question is whether copies of software object Joseffer, Assistant to the Solicitor General, argued code, made in a foreign country from a United on behalf of the United States as amicus in States-supplied master disk, are considered support of Microsoft. Many of the largest components supplied from the United States. technology-based companies, such as Yahoo and Microsoft argues that the software installed on the Amazon, as well as computer industry trade computers was copied in foreign countries from groups such as the Business Software Alliance, golden master disks shipped from the United have filed amicus briefs in support of Microsoft. States. Microsoft contends that they would be They allege that an AT&T win puts U.S. liable only if the golden master disk had been companies at a competitive disadvantage. They installed on a computer, which was not the case. say that U.S. software companies will have to do Conversely, AT&T alleges that because the very their manufacturing overseas so that they will not same “zeroes and ones” Microsoft created in the be liable for supplying components from the United States are installed on the foreign United States. Those amici supporting AT&T, computers, Microsoft supplies the software from such as the Wisconsin Alumni Research the United States on those computers. Foundation, argue that Congress, not the Supreme Court, should decide whether the risk to software The case has garnered a great deal of companies requires a change in patent law. attention – not only for the well-known attorneys who argued the case, but for the many amicus briefs filed by third parties. Ted Olson, the 42nd United States Solicitor General, argued for AGS FIGHTING CYBER CRIMES ALABAMA ARIZONA Attorney General Troy King gave opening Attorney General Terry Goddard made remarks at a free conference designed to help an Internet safety presentation for sixth through parents keep their children safe on the Internet. The eighth graders at a school in Ahwatukee. Joined by conference, “Lost in Cyberspace,” was sponsored Phoenix Councilman Greg Stanton, Attorney by Attorney General King’s office, Frazer General Goddard emphasized precautions young Methodist Church, the Alabama Bureau of people should take on social networking sites and Investigation, Troy University, the Department of included experiences of teens who had been victims Child Abuse and Neglect Prevention, the Alabama of Internet exploitation. PTA and the Department of Children’s Affairs. During the program, Internet safety experts COLORADO discussed current trends in Internet crimes and talked about social networking sites.