IntellectualProperty Law

in

CyberspaceSecond Edition

G. Peter Albert, Jr.and

AmericanIntellectual Property Law

Association

AmericanIntellectual Property Law

AssociationArlington, VA

BNA Books, A Division ofBNA, Arlington, VA

DETAILED TABLE OF CONTENTS

Foreword v

Preface vii

About the Authors ix

Summary Table of Contents xvii

PART IINTELLECTUAL PROPERTY IMPLICATIONS OF USING

ONLINE NAVIGATING TOOLS

Chapter 1. Search Engines 3

I. Search Engines Implicate Trademark and OtherIntellectual Property Issues 4A. How Search Engines Work 4B. How Keywords Can Manipulate Search Engines 6

II. Implications of Using Another's Mark as a Metatag or Keyword 7A. Are Metatags and Keywords "Used in Commerce"? 8

1. Governing Opinions Regarding Trademark Use inCommerce 8

2. Dissension in the Second Circuit 123. The Rescuecom Case: Aligning the Circuits 14

B. Can Metatags and Keywords Create Consumer Confusion? 161. Early Cases: Use of a Competitor's Trademark as Metatag

or Keyword Does Create a Likelihood of Confusion 162. Initial Interest Confusion Revisited 173. A Circuit-by-Circuit Perspective 23

a. Ninth Circuit 24b. Tenth Circuit 28c. Sixth Circuit 30d. Fourth Circuit 31e. Third Circuit 32f. Seventh Circuit 34g. Eleventh Circuit 36

xix

xx IP LAW IN CYBERSPACE

h. European Court of Justice 38C. The Fair Use Defense in the Search Engine Context 39

1. Introduction 392. Fair Use of Metatags and Keywords 393. When Fair Use Trumps Initial Interest Confusion 434. Instance of Trademark Use That Are Not Fair, and

Could Result in Consumer Confusion 49III. The Case of "Pop-up" Advertising 52

Chapter 2. Links and Frames 59

I. Introduction 60II. Trademark Implications of Linking 61

A. Early Allegations of Wrongdoing 62B. Linking in a Commercial Context 64

1. Links to Trademark Holders' Sites 652. Links Away From Trademark Holders' Sites 69

C. First Amendment Protections of Linking: Parody andCritique Sites 73

1. The Line Between Commercial Sites and Parody andCritique Sites 75

III. Copyright Implications of Linking and Framing 81A. Direct or Indirect Liability for Linking? 82

1. Can Links Create Derivative Works? 842. Other Copyright Rights Implicated 85

B. Indirect Copyright Liability for In-line Linking 90IV. Conclusion: Tips for Both Ends of a Link 96

Chapter 3. Web Crawlers 99

I. Introduction 99II. Trespass to Chattels Claims 101

A. Applying the Trespass Tort in the Electronic World 101B. Computer Fraud and Abuse Act 106

III. Terms of Use 113A. Web Crawlers and "Browse Wrap" Agreements 114

PART II

POSTING AND USING MATERIALS ONLINE

Chapter 4. Using and Protecting Copyrighted Workson the Internet 125

I. The "Virtual" Copyright 127A. Statutory Definition of a Copyright and the Constitutional

Purpose Underlying Copyright Protection 127B. Statutory Requirements for Copyright Protection 129

DETAILED TABLE OF CONTENTS xxi

1. Originality 1292. Works of Authorship 1303. Fixation 1324. What Is NOT Protectable as a Copyright 133

a. Ideas Versus Expression 133b. Forms and Instructions 134c. The Case of Computer Programs 136

C. The Extent and Limitations of Copyright Holders'Exclusive Rights 138

1. Statutory Rights 1382. Derivative Works 1393. Compilations and Collections 140

a. Compilations 140i. Compilations and Database Protection 140ii. Compilations and Statutory Damages 144

b. Collective Works 1464. Limitation: The First Sale Doctrine and Constraints on

Right to Reproduce 1475. Limitation: Works Made for Hire 148

II. Copyright Infringement: How Are Copyrights EnforcedOnline? 149A. Meaning of Online Copyright Infringement 149

1. Elements 1492. Ownership 1503. Copying 150

a. Proof of Access 151b. Determining Substantial Similarity 152

i. Comprehensive Nonliteral Similarity 153(1) Total Concept and Feel Test 153(2) Abstraction-Filtration-Comparison Test 154

ii. Fragmented Literal Similarity 155iii. Two-Part Extrinsic-Intrinsic Test 156

c. Establishing Copying Online 1574. Use of Copies in Violation of One of Section 106's

Exclusive Rights 160B. Use of Copies in Violation of Section 106: Liability for

Online Service Providers 1611. Right of Reproduction 1622. Right of Distribution or Display 165

a. Rights of Distribution and Display Implicated byElectronic Bulletin Board Services 166

b. Rights of Distribution and Display Implicated bySearch Engines 169

C. Indirect Infringement 1721. Contributory Liability 172

a. Knowledge of User's Infringement 173b. Induced, Caused, or Materially Contributed to

User's Infringement 1762. Vicarious Liability 183

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a. Right and Ability to Control Infringing Activity 184b. Direct Financial Interest in Infringing Activities 187c. Examples 188

D. The Fair Use Defense 1901. The Boundaries of Fair Use 190

a. Purpose and Character of Use 190b. Nature of the Copyrighted Work 197c. Amount and Substantiality of Copying 198d. Effect on the Potential Market 199e. Good Faith 201f. File-sharing and the Fair Use Defense 201

Chapter 5. The Digital Millennium Copyright Act andIts Effect on Copyright Owners andService Providers Online 205

I. The DMCA: Both a Sword and a Shield 206II. Impact of the DMCA in Protecting Copyright Owners'

Rights Online 207A. Circumvention of Copyright Protection 207

1. The Scope of Section 1201 2072. The Extent of Section 1201: Case Law Interpretation 209

a. What Constitutes "Circumvention of a TechnologicalCopyright Protection Measure"? 209i. Statutory Definitions Revisited 209ii. Decryption 210iii. Other Copyright Circumvention Techniques 213iv. What Does NOT Constitute Circumvention of

Technological Copyright Protection Measures 216b. Fair Use 218c. Exemptions 220

B. Falsification of Copyright Management Information 2221. Statutory Meaning 2222. What is "Copyright Management Information"?:

Disagreement Among Circuits 2233. Proving Intent 226

C. Civil Remedies and Criminal Penalties Under the DMCA 227III. Copying Incident to Maintenance or Repair 229IV. Internet Service Provider Liability 230

A. Safe Harbors Provided by the DMCA: Service ProviderLiability and Limits Thereof 230

B. Types of Actions on Part of an ISP Subject toLimited Liability 231

1. Transmitting, Routing or Providing Connections forInfringing Material 231

2. Temporary Storage 2333. Information Stored at the Direction of the User 234

DETAILED TABLE OF CONTENTS xxiii

4. Information Location Tools 243V. Remedial Steps Available to Copyright Owners, Alleged

Infringers, and ISPs 245A. Subpoena 245B. Takedown Procedures and Counter-notification 245

1. Steps Against Abuse of Takedown Procedures 246

Chapter 6. What May Be Protected by Copyright:Unique and Specific Applications ofCopyright Law Online 249

I. Text 251A. Text Originally Created for Physical Distribution 251

1. Disputes Between Authors and Publishers 2512. Disputes Between Copyright Owners and Third-Party

Online Companies 253B. Text Created for Initial Dissemination on the Internet:

Twitter and Similar Text-based Web Sites 2541. Do Tweets and Status Updates Involve a Copyrightable

Subject Matter? 2552. Do Tweets and Status Updates Involve Sufficient

Creativity to Constitute an "Original Work of Authorship"? 256II. Images 257

A. Images Originally Created for and Displayed in a PhysicalForm: Photographers Versus Publishers 257

B. Third-Party Display of Images Online: Thumbnail Images,Framing, and Linking 258

1. The Server Test 2602. Fair Use Defense 261

C. Special Protection Mechanism: Digital Watermarking 263III. Software 265

A. Reverse Engineering 266B. Abstract-Filtration-Comparison Test 268C. Protection Afforded by User License Agreements 272

IV. Music 272A. Duplication, Distribution, and Public Performance:

Digital Downloads 2731. Napster, Lime Wire, and Other File-sharing Programs 2732. Public Performance Right for Digital Downloads? 2763. Fair Use Defense and Digital Downloads 2774. "The Cloud" 2785. Special Damages Considerations 280

B. Digital Performance of Music: Audio Streaming 2811. Interactive Services 2842. Non-Interactive Services 2853. Arista Records, LLCv. Launch Media, Inc 2854. Licensing Structure for Non-Interactive Services 287

xxiv IP LAW IN CYBERSPACE

C. Sale Versus License to Digital Distributors 291V. Broadcast Signals 291

A. Live Audio Broadcasts: Streaming Terrestrial RadioBroadcasts Online 291

B. Live Audiovisual Broadcasts: Using Internet to PostInformation and Stream Television Broadcasts Online 292

C. Video 294D. Copying of Motion Pictures: Protection Against

Circumvention of Safeguards to Prevent Copying ofAudiovisual Content 294

E. Video Content Service Providers 297

PART IIIPROTECTING THE KEY ELEMENTS OF A WEB SITE

Chapter 7. Unique Online Trademark Issues 305

I. The Elements of a Trademark Claim 308A. Is It a Two-Prong or Three-Prong Test to Establish

Infringement? 308B. The Confusion Prong of the Infringement Test 314

II. Confusion Online 317A. Types of Confusion on the Internet 319

1. Point-of-Sale Confusion 3192. Post-Sale Confusion 3203. Initial Interest Confusion 321

a. Historic Underpinnings 322b. Cases Finding initial Interest Confusion Actionable 324c. Cases Rejecting the Doctrine of Initial Interest

Confusion 325d. Cases Setting Standards for Initial Interest Confusion 329

B. Does the Internet Make Confusion More Likely? 3321. Cases Finding that the Internet Exacerbates Confusion 3322. Cases Finding that the Internet Makes Confusion

Less Likely 333C. Litigating Confusion: The Plaintiff's Perspective 334D. Litigating Confusion: The Defendant's Perspective 335

III. Trademark Owners' Duty to Enforce on the Internet 336A. The Duty to Police Generally 336B. The Duty to Police as Applied to the Internet 338C. Creating a Rational Policing Policy 339

IV. Domain Names as Trademarks Generally 341A. Vanity Telephone Number Cases 341

1. Dial-A-Mattress Franchise Corp. v. Page 3422. Dranoff-Perlstein Associates v. Sklar 3433. In re Dial-A-Mattress Operating Corp 344

B. Domain Case Names 345

DETAILED TABLE OF CONTENTS XXV

1. Generic and Descriptive Domain Names 3452. Secondary Meaning 348

C. U.S. Patent and Trademark Office's View 3501. Identifying Goods or Services 3502. Using a Domain Name as a Trademark 3513. Generic Second Level Domain Names 3524. Top-Level Domains 355

V. Use of Trademarks on the Internet to Support Registration 356A. Service Marks 357B. Trademarks for Goods 359

1. The Dell Decision and Various Responses 3592. Dell's Application 361

a. TTAB Decisions Regarding the Picture Requirement 362b. TTAB Decisions on the Requirement for

Information to Order the Goods 362c. TTAB Decisions Discussing Prominence of a

Mark on a Website 364VI. Domain Names in Trademark Infringement 364

A. Use in Commerce 3641. Cases Generally Finding Use in Commerce 3652. Cases Generally Not Finding Use in Commerce 367

B. Likelihood of Confusion 3691. Cases Generally Finding Likelihood of Confusion 3692. Cases Generally Not Finding Likelihood of Confusion 371

C. Potential Defenses and Responses: Laches, Acquiescence,and Progressive Encroachment 371

VII. Overview of Different Types of Domain Name TrademarkDisputes 373

VIII. Trademark Dilution Online 376A. Famousness 377B. Blurring 378C. Tarnishment 380

IX. Trademarks in Search Engines and Internet Advertising 381A. Use of Trademarks as Metatags 381

1. Bad Faith Usage 3822. Permissible Use 383

B. Pop-Up Adds as Trademark Use 3841. Use of Pop-Ups Impermissible 3842. Non-Infringing Use of Pop-Up Advertisements 385

C. Search Engine Advertising and Trademarks 3861. Purchase of Marks as Keywords as "Use in

Commerce" 3862. Likelihood of Confusion 3903. Application of the Initial Interest Confusion Doctrine

to the Search Engine Context 3914. Liability for "Broad Match" Ads 392

X. Nominative Fair Use and the Internet 394A. Introduction 394

xxvi IP LAW IN CYBERSPACE

B. Early Cases 395C. Classic Fair Use 396D. Advertising Practices Prior to 1971 Made Nominative

Use Unusual 399E. "The New Kid on the Block" 401F. Other Ninth Circuit Cases 403G. What Other Circuits Say 407

1. Fifth Circuit 4072. Sixth Circuit 4093. First Circuit 410

H. The Third Circuit's Effort to Clarify the Issue 410I. Yost-Century 21 Nominative Fair Use Developments 414

1. Congress Muddies the Waters 4142. The Second Circuit Refuses to Adopt Either the

Third or Ninth Circuit Analysis 4143. The Latest from the Ninth Circuit 415

J. The Future: Nominative Fair Use and the Internet 417XI. Free Speech and Parody Issues 417

A. Free Speech and the Lanham Act 417B. Gripe Sites 418C. Parody 422

XII. Use of Disclaimers Online 423A. Disclaimers as Insufficient to Dispel Confusion 423B. Effective Disclaimers 425

XIII. Trade Dress and the Internet 426XIV. Social Media and Trademarks 427

A. Use and Misuse of Trademarks in Social Media 427B. Trademark Policies of Popular Social Media Sites 429

1. Social Media Sites' Efforts to Address Trademark Issues 4292. Using Trademark Related Comments From Social

Media Sites to Publicize a Brand 4323. Twitter Copyright Case 434

XV. Counterfeiting and the Internet 436A. Civil Litigation 436

1. Personal Jurisdiction 436a. Interactive Websites Selling Goods in the Forum 437b. Providing Services to Interactive Website Selling

Counterfeit Goods in the Forum 437c. Injury to Mark Holder in Forum 438

2. Post-Sale Confusion 4393. Ex Parte Injunctive Relief 440

a. Asset Freeze 441b. Expedited Discovery 442c. Alternative Service of Process 443

4. Defenses to Trademark Counterfeiting 443a. The Mark Is Not Identical 443b. Parody 444

5. Statutory Damages 444

DETAILED TABLE OF CONTENTS xxvii

B. Government Enforcement 445C. International Agreements 446

XVI. Secondary Trademark Liability 447A. Origins of Secondary Liability for Trademark Infringement 447

1. Inwood and Its Progeny 447a. The Inwood Decision 447b. Inwood Applied to Brick and Mortar Service Providers 448

B. Secondary Liability in the Online Context 4491. Online Auction Sites 4502. Credit Card Processors 451

a. Perfect 10 v. VisaInt'lServ. Assoc 452b. Gucci America, Inc. v. Frontline Processing Corp 453

3. Internet Service Providers ("ISPs") 454a. Lockheed Martin Corp. v. Network Solutions 454b. Louis Vuitton Malletier, S.A. v. Akanoc Solutions, Inc 455c. Roger Cleveland Golf Co. v. Prince 456

4. Virtual World Infringement 457

Chapter 8. Domain Name Registration, Maintenance, andProtection 459

I. The Birth and Structure of the Internet 461A. The "Wild West" or the First Step Towards the

Federation of Earth? 461B. The Birth and Early History of the Internet 462C. The Emerging Structure of the Internet: Domain Names as

Addresses 4631. Purpose 4632. Top-Level Domains 464

D. Administering the Domain Name System 4641. A Simple Task Prior to 1993 4642. Network Solutions 4653. Whois Database 4664. The Birth of ICANN 4665. Expansion of Top Level Domains 467

II. Registrar Immunity 468A. Is a Registrar Responsible for Registering Domain Names to

Cybersquatters? 4681. Lockheed Martin Corp.v. Network Solutions, Inc 4692. Academy of Motion Picture Arts & Sciences v.

Network Solutions, Inc 470B. The Inclusion of Registrar Immunity in ACPA 471C. The Theory of Registrar Immunity Takes Shape:

Post-ACPA Case Law 4721. Trademark Infringement and Trademark Dilution 4722. Contributory Trademark Infringement 4743. Conclusion 476

xxviii IP LAW IN CYBERSPACE

III. The Uniform Dispute Resolution Policy 476A. NSI's Dispute Policies 476B. ICANN and the UDRP 477C. The Relationship Between ICANN, Registrars, and

Registrants 477D. The Administration oflCANN's UDRP Proceedings 479

1. Authority of UDRP Panels 4802. Review of UDRP Panel Decisions 4813. Precedent in the UDRP System 482

E. Litigating a UDRP Proceeding 4821. Filing a Complaint 4822. The Complainant's Burden in ICANN UDRP

Proceedings 483a. The Identical or Confusingly Similar Prong 483b. The Rights or Legitimate Interests Prong 485c. The Bad Faith Prong 487

3. The Registrant's Response 489a. Available Defenses 489b. Panel Reactions to Contrived Responses 490

F. Conclusion 491IV. The Anti-Cybersquatting Consumer Protection Act 492

A. Overview 492B. The ACPA and the UDRP Compared 498

1. Key Benefits of a Claim Under the ACPA 499a. Comprehensive Relief as Part of a Broader

Litigation Strategy 4992. Key Benefits of a Claim Under the UDRP 501

a. Expeditious and Less Costly Relief. 501C. In Personam and In Rem Jurisdiction Under the ACPA 502D. Disputes Under the ACPA 503

V. Truth in Domain Names Act 507VI. Domain Names as Property 507

A. The Tort of Conversion 5081. Execution in Satisfaction of Court Judgment 510

VII. Country Code Top-Level Domains 511A. ccTLD Managers 512B. ccTLDs as Commercial Entities 512C. ccTLDs as Property 513D. ccTLD Dispute Resolution Procedures 514

VIII. New Top Level Domains 514A. Who Should Consider Trying to Get New TLDs? 515B. Protecting Brand Owner Rights With Respect to

New TLDs 516C. Protecting Brand Owner Rights in Each TLD 517D. Conclusion 517

IX. Additional Federal and State Domain Name Laws 518A. Federal Law—15 U.S.C. §8131, "Cyberpiracy Protections

for Individuals" 518

DETAILED TABLE OF CONTENTS xxix

B. State Law 5191. California—Cal. Bus. & Prof. Code §§17525 et seq 5192. New York—N.Y. Gen. Bus. Law Article 9-C 5213. Louisiana—La. Rev. Stat. §§51:300.11 et seq.,

51:300.12 et seq 5224. Hawaii—Haw. Rev. Stat. §§481B-22 et seq 523

Chapter 9. Protection of Content in the Online Environment 525

I. The Enforceability of Online Agreements 527A. Introduction: Terminology 527B. Enforceability 527C. Manifestation of Assent 528D. Actions of the Parties 528E. Notice 530F. Browsewrap Agreements 530G. Clickwrap Agreements 531H. Browsewrap Cases 532I. Modified Terms 535J. Unconscionability 537K. Forum Selection Clauses 537L. Arbitration Clauses 539M. Warranty Disclaimers 540N. Attorneys'Fees 5410. Contractual Waiver of End-User Rights 541P. Best Practices 542

II. Trade Dress Protection of Websites 543A. Trade Dress Protection Under the Lanham Act 543B. Trade Dress Protection of a Website 544C. The Protectable "Look and Feel" of a Website 545D. Blue Nile, Inc. v. Ice.com, Inc 545L. Faegre & Benson LLP v. Purdy 546F. SG Services Inc. v. God's Girls, Inc 546G. Taylor Building Corp. of America v. Benfield. 548H. Conference Archives, Inc. v. Sound Images, Inc 5491. Sleep Science Partners v. Lieberman 554

III. Contracting for Cloud Services 555A. Overview 555

1. Some Definitions 5572. Cloud Computing Ecosystem 5583. Types of Cloud Services Agreements 559

B. The Cloud Services Agreement Is a Limited License 5611. General/Enforceability 5612. Potential Antitrust and Unfair Competition Issues in

Cloud Services Agreements 562C. Protecting Data in the Cloud 564

1. Overview 564

xxx IP LAW IN CYBERSPACE

2. Special Considerations for Integrations of a SaaSApplication With a User's On-Premises Data 567

3. Intellectual Property-Related Considerations 567a. Special Considerations for SaaS Applications

Developed on a PaaS Platform 569IV. Overview of Privacy Issues in Cloud Computing 569

A. Cross-Border Issues 569B. Sub-Contracting 570C. Privacy Protections in the United States 570D. U.S. Constitution 570E. Stored Communications Act 571F. Gramm-Leach-Bliley Act 572G. Health Insurance Portability and Accountability Act 573H. States Privacy Regulations 573I. European Union Privacy Regime 574J. Privacy Regulations Around the World 574

Chapter 10. Patents and the Internet 575

I. Patent Reform as It Applies to Non-Practicing EntityPatent Litigation 576A. Changes in Remedies and Damages 579

1. Injunctive Relief 5792. Injunctive Relief at the ITC 5803. Changes in Methods for Calculating Damages 5814. No Lost Profits for Patent Trolls 5825. Willful Infringement Standard 583

B. Changes in Patent Validity 5831. Facilitating Obviousness 5832. Changes in Written Description and Enablement

Requirement 5843. Seeking Judicial Review 585

C. Jurisdiction and Venue 5861. Improved Case Law for Delaying Patent Troll Suits 588

D. Patent Exhaustion 589E. Contracting the Doctrine of Equivalents 590F. Conclusion and Application of Recent Decisions to the

Role of the Jury 591II. Patentability Under Section 101, The Test for Patent Eligible

Subject Matter 592A. The PTO Guidelines and Bilski 593B. Beyond Bilski and the PTO Guidelines 595

1. Research Corporation Technologies, Inc. v.Microsoft Corp 595

2. Prometheus Laboratories, Inc. v. Mayo CollaborativeServices 595

DETAILED TABLE OF CONTENTS xxxi

3. Association for Molecular Pathology v. U.S. Patent &Trademark Office 596

4. Cybersource Corp. v. Retail Decisions, Inc 5975. Classen Immunotherapies, Inc. v. Biogen IDEC 599

III. The Leahy-Smith America Invents Act (Patent ReformAct of 2011) 600A. Business Method Patent Transitional Review 600B. Fast Track Patents, Priority Examination of Important

Technologies 602C. Tax Strategy Patents and the America Invents Act 603D. Heightened Requirements for Multi-defendant Litigation 604

PART IVISSUES ARISING FROM CONDUCTING BUSINESS ONLINE

Chapter 11. Trade Secrets Online 607

I. Introduction 608II. Protecting Trade Secrets Online 609

A. Protection Afforded by the Uniform Trade Secrets Act andCommon Law 609

1. Definition of a Trade Secret 6102. Secrecy Requirement 6113. Reasonable Efforts to Preserve Secrecy 6134. "Readily Ascertainable" in the Internet Age 614

B. Contractual Protection of Trade Secrets 616C. Maintaining Trade Secret Protection on the Internet Through

Password Protection and Encryption 617D. Monitoring Employee E-Mail, and the Protections Provided

by the Electronic Communications Privacy Act (ECPA) 619E. Protection Provided by the Economic Espionage Act 620

1. Mechanics of the Economic Espionage Act 621a. Definition of Trade Secret and Trade Secret

Conversion 622b. Criminal Forfeiture of Equipment 623c. Protective Orders to Prevent Further Disclosures 623d. Injunctive Relief 625e. Economic Espionage Act Does Not Preempt

Other Remedies 6252. The Benefits and Disadvantages of Parallel Criminal and

Civil Trade Secret Cases 625F. Protection Provided by the Computer Fraud and

Abuse Act 6271. Civil Actions 6282. Disagreement Among the Courts Concerning

"Authorization" 629

xxxii IP LAW IN CYBERSPACE

3. CFAA May Not Impose Liability for ExcessiveInternet Usage 630

4. Pure Trade Secret Misappropriation May Not BeActionable Under the CFAA 631

5. Criminal Actions 632G. Protection Provided by the Stored Communications Act 633

1. Conflicts Between the SCA's Protection of OnlineJournalists and Trade Secret Law 635

2. SCA Preemption of Trade Secret Claims 638H. Protection by Discovery Rules and Statutes 640

III. Losing Trade Secrets Online 643A. Website and Electronic Bulletin Board Postings 644B. Online Magazines and Journals 648C. Inadvertent Postings on the Internet 650D. Deliberate Postings on the Internet 653E. Loss of Trade Secrets Through Email 657F. First Amendment Implications of Posting Trade Secrets

on the Internet 659

Chapter 12. PersonaUurisdiction and the Internet 661

I. Introduction 662II. Personal Jurisdiction Generally 662

III. Personal Jurisdiction Through Internet Activity in the United States ... 664A. The Zippo "Sliding Scale" 665

1. Passive Web Sites 6672. Interactive Web Sites 6693. Active Web Sites 674

IV. Adoption of the Zippo Test 678A. First Circuit 678B. Second Circuit 679C. Third Circuit 680D. Fourth Circuit 681E. Fifth Circuit 681F. Sixth Circuit 682G. Seventh Circuit 682H. Eighth Circuit 683I. Ninth Circuit 683J. Tenth Circuit 684K. Eleventh Circuit 685L. D.C. Circuit 687M. Federal Circuit 688

V. Internet Jurisdiction After ZIPPO 689A. Alternative Approaches 689

1. The Colder Effects Test for Tortious Conduct 6892. Geographic Targeting 6913. Online Auctions 692

DETAILED TABLE OF CONTENTS xxxiii

4. Forum Selection Clauses 693B. Virtual Worlds 695C. In Rem Jurisdiction and The Internet 698

VI. Conclusion 700

Chapter 13. Intellectual Property Issues Raised by Email 701

I. Introduction 703A. History of Electronic Messages 703B. Technical Overview 703C. Future of Electronic Communication 704

II. Issues Arising Out of Permissible Use of Email 704A. Privacy/Confidentiality 704

1. Work vs. Home 7062. Document Retention Policies 709

B. Discovery 7121. Attorney-Client Privilege 7122. Possession/Custody/Control 717

C. Cross-Border Issues 720III. Issues Arising Out of Impermissible Use of Email 722

A. Spam 7221. Legislative Efforts To Regulate Spam 7232. The CAN-SPAM Act 724

a. What is Covered 724i. "Exclusively Commercial" 724ii. "Transactional or Relationship Content" 724iii. "Hybrid" Messages 725iv. "Electronic Mail Messages" 726v. "Initiating Transmission" 727

b. Requirements of CAN-SPAM Act 728i. Requirements for All Categories of Email 728

a) Headers 728b) No False Header Information 730c) "Promotion" Liability 730

ii. Requirements for "Commercial" Email 731a) Deceptive Subject Lines 732b) Opt-Out Provisions 732

i) Opt-Out Must be Available for At Least30 Days 732

ii) No Transmission of Commercial EmailsAfter Opt-out 732

iii) No Sharing of Opted-Out Email Address 733iv) Subsequent Affirmative Consent 733

c) Sending Behavior 733i) Address Harvesting and Dictionary Attacks.... 733ii) Automatic Creation of Email Addresses 733iii) Open Relays/Proxies 734

xxxiv IP LAW IN CYBERSPACE

iv) Aggravated Violations 734iii. Sexually Explicit Email 734iv. Enforcement 735

a) Federal 735b) State 735c) Private Right of Action 736d) Backlash: Opportunistic Plaintiffs 737

3. State Statutes 738B. Phishing 740

1. Overview 7402. Technical Overview 7403. Impact on E-Commerce 7404. Legal Remedies 741

a. Lanham Act 741b. Anticybersquatting Consumer Protection Act 741c. Uniform Domain Name Dispute Resolution Policy 741d. Computer Fraud and Abuse Act 741e. CAN-SPAM Act 742f. State Causes of Action 742

C. Spoofing 7421. Overview 7422. Communication Protocol Spoofing 7433. Email Spoofing 7434. Website Spoofing 7445. Legal Remedies 744

a. Lanham Act 744b. Anticybersquatting Consumer Protection Act 744c. Uniform Domain Name Dispute Resolution Policy 745d. Computer Fraud and Abuse Act 746e. CAN-SPAM Act 746f. Telephone Consumer Protection Act 747

Chapter 14. The Law of Virtual Property 749

I. Introduction 750II. What Is Virtual Property? 751

A. Conceptualizing Virtual Property 7531. Simplified Discussion of Game Technology 7532. No Protection for the Integer as a Numeric Concept 7543. No Protection for the Database Containing the Integer 7544. Protection Should Be for the Particular Integer (Bits) as

Used in the Game (Context) 755III. Summary of the Linden Research Virtual Property Cases 756

A. Bragg v. Linden Research & Philip Rosedale 7561. Jurisdiction Over the CEO, Rosedale 7572. Motion to Compel Arbitration 758

a. Unconscionability of the Arbitration Clause 759

DETAILED TABLE OF CONTENTS XXXV

i. Procedural Unconscionability 759ii. Substantive Unconscionability 760

B. Evans v. Linden Research, Inc 761C. Summary 764

IV. The Uncertain Default Rules for Virtual Property 764A. Virtual Property and Agreed-To Terms 764B. Enforceability of Agreed-To Terms 768

1. Unconscionability of the End-User License Agreement 769a. Reasonable Expectations 772b. Implied Duty Related to Virtual Property 773

V. Types of Injuries to Virtual Property and Remedies 773A. Destruction and Devaluation of Virtual Property 773B. Destruction of Context 775C. Remedies 775

Table of Cases 777

Table of Laws and Acts 813

Index 819