online advertising year of living dangerously

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Presentation providing overview of developments in Online Advertising.in 2008

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Page 1: Online Advertising Year Of Living Dangerously
Page 2: Online Advertising Year Of Living Dangerously

What about it?

Page 3: Online Advertising Year Of Living Dangerously

TV

36.8%

NEWSPAPERS

25.1%

MAGAZINES

12.8%

Surpass in 11Surpass in 11Surpass in 11Surpass in 11

Surpass in 10Surpass in 10Surpass in 10Surpass in 10 12.8%

ONLINE

10.9%

RADIO

10.2%

OUTDOOR

3.8%

CINEMA

Surpassed in 97Surpassed in 97Surpassed in 97Surpassed in 97

Surpassed in 06Surpassed in 06Surpassed in 06Surpassed in 06

Surpassed in 07Surpassed in 07Surpassed in 07Surpassed in 07

Surpass in 10Surpass in 10Surpass in 10Surpass in 10

Page 4: Online Advertising Year Of Living Dangerously

Who AdvertisesOnline

Page 5: Online Advertising Year Of Living Dangerously

Who AdvertisesOffline

Page 6: Online Advertising Year Of Living Dangerously

$20.2 Billion (2007)

$25.9 Billion (2008)

$62.4 Billion (2012)

Online ad revenue

$62.4 Billion (2012)

$147 Billion (2012) (global)

Page 7: Online Advertising Year Of Living Dangerously

And Who Doesn’t

•Political Ad Revenue Up 155% from 2004Revenue Up 155% from 2004

•But only 2.5% of $3 billion market

Page 8: Online Advertising Year Of Living Dangerously

Uncertain Times

• Barclay’s– US ad revenue to fall approx

9% over next two years9% over next two years– Online ad revenue will

continue to grow at a slower double digit pace

• IAB– Q2 Report - $11.5B revenue

(up 15.2%)

Page 9: Online Advertising Year Of Living Dangerously

• Behavioral

Targeting

• Key Word

Search

• CAN-SPAM

UpdateUpdate

• FTC and State

Enforcement

Page 10: Online Advertising Year Of Living Dangerously

PAGE TWO

34343434SEATTLE’S SOGGY SODS

TELESCOPE SALES

BOOM IN ALASKAANCHORAGE. Alaska telescope retailers have reported a huge spike in telescope sales in September. According to

store owner Joe Monegan, local foreign policy experts are

buying the telescopes to watch Russia in light of its recent

invasion of Georgia. (More on Page 4)

Seattle Beacon October 14, 2008

CITY BREAKS RECORD FOR

CONSECUTIVE RAINY DAYS

SEATTLE. Forget Spain, the rain falls mainly in

Seattle as the Emerald City “enjoyed” its 34th

consecutive day of rain breaking the 1953

record. Sonny Smith, President of the Visitors

and Convention Bureau was quick to point out

that even with the record, the city still gets far

less total rain than cities such as Miami. In fact,

Seattle is not even among the top 101 cities for

total rainfall. So remember, it could be worse –

you could be in Miami.

Got Sun?

We got plenty in Palm Springswww.sunsunsun.com

Page 11: Online Advertising Year Of Living Dangerously

PAGE TWO

34343434SEATTLE’S SOGGY SODS

TELESCOPE SALES

BOOM IN ALASKAANCHORAGE. Alaska telescope retailers have reported a huge spike in telescope sales in September. According to

store owner Joe Monegan, local foreign policy experts are

buying the telescopes to watch Russia in light of its recent

invasion of Georgia. (More on Page 4)

Seattle Beacon October 14, 2008

CITY BREAKS RECORD FOR

CONSECUTIVE RAINY DAYS

SEATTLE. Forget Spain, the rain falls mainly in

Seattle as the Emerald City “enjoyed” its 34th

consecutive day of rain breaking the 1953

record. Sonny Smith, President of the Visitors

and Convention Bureau was quick to point out

that even with the record, the city still gets far

less total rain than cities such as Miami. In fact,

Seattle is not even among the top 101 cities for

total rainfall. So remember, it could be worse –

you could be in Miami.

Got CLE?

Page 12: Online Advertising Year Of Living Dangerously

PAGE TWO

34343434SEATTLE’S SOGGY SODS

TELESCOPE SALES

BOOM IN ALASKAANCHORAGE. Alaska telescope retailers have reported a huge spike in telescope sales in September. According to

store owner Joe Monegan, local foreign policy experts are

buying the telescopes to watch Russia in light of its recent

invasion of Georgia. (More on Page 4)

Seattle Beacon October 14, 2008

CITY BREAKS RECORD FOR

CONSECUTIVE RAINY DAYS

SEATTLE. Forget Spain, the rain falls mainly in

Seattle as the Emerald City “enjoyed” its 34th

consecutive day of rain breaking the 1953

record. Sonny Smith, President of the Visitors

and Convention Bureau was quick to point out

that even with the record, the city still gets far

less total rain than cities such as Miami. In fact,

Seattle is not even among the top 101 cities for

total rainfall. So remember, it could be worse –

you could be in Miami.

Got Elvis?

20TH ANNUAL CRUSHED VELVET

ELVIS ART SHOW

Who needs Picasso when you can have the King?.

TICKETS ON SALE NOW

Page 13: Online Advertising Year Of Living Dangerously

BT 1.0User Tracked by

• Website

BT 2.0• Website

• Adware Program

• Ad Network BT 2.0User Tracked by ISP

(“Deep Packet Inspection”)

Page 14: Online Advertising Year Of Living Dangerously

Response Response Response Response

• 40% to 111% increased response due to BT (Boston.com)

RevenueRevenueRevenueRevenue

BT 1.0BT 1.0BT 1.0BT 1.0

RevenueRevenueRevenueRevenue

• 2008: $775 MM (3% of online ad spending)

• 2012: $4.4 BB (8.6% of online ad spending)

Page 15: Online Advertising Year Of Living Dangerously

2007: A Year in the Limelight

Merger Mania

Other NewsOther NewsOther NewsOther News• AOL Accidental Release of User Search Histories

(2006)• Google Reveals Search History Kept Indefinitely• Facebook’s Beacon program• FTC Workshop on Behavioral Targeting• Consumer Groups Call for “Do Not Track” Registry

Page 16: Online Advertising Year Of Living Dangerously

Washington Responds

FTC Proposed SelfFTC Proposed SelfFTC Proposed SelfFTC Proposed Self----Regulatory PrinciplesRegulatory PrinciplesRegulatory PrinciplesRegulatory Principles

• Notice: A consumer-friendly and prominent notice that data is used for BT

• Choice: Give consumers the ability to opt-out

• Security: Must provide reasonable security and retain only as long as needed

• Sensitive Data: Express consent for use in BT

Congressional InvestigationsCongressional InvestigationsCongressional InvestigationsCongressional Investigations

• Privacy Implications of Google-DoubleClick Merger

• Potential Microsoft-Yahoo deal

Page 17: Online Advertising Year Of Living Dangerously
Page 18: Online Advertising Year Of Living Dangerously

BT 2.0

Is it legal? Probably. Do I think it's a good idea and it makes sense? No. I don't think it passes the creepy factor, and this market isn't ready for stuff that doesn't pass the creepy factor. We are isn't ready for stuff that doesn't pass the creepy factor. We are not in a place where we can do dumb things and stupid things like that, even if they're effective.

-- Dave MorganTacoda Founder and former CEO

Page 19: Online Advertising Year Of Living Dangerously

Congress Responds

• Incredible leap into the breaching of the privacy of Americans – Rep. Markeyprivacy of Americans – Rep. Markey

• Isn't that just wiretapping – Sen. Dorgan• Contemptible – Rep. Greene

• Senior House members send letters to over 30 ISPs: has your company at any time tailored . . . Internet advertising based on consumers’ Internet search, surfing, or other uses?

Page 20: Online Advertising Year Of Living Dangerously

• ISP Response–Cancel NebuAd tests

–Will provide opt-out mechanism

• NebuAd• NebuAd–Shelves BT 2.0–Other 2.0 companies may not survive

Page 21: Online Advertising Year Of Living Dangerously

But aren’t we But aren’t we But aren’t we But aren’t we forgetting forgetting forgetting forgetting forgetting forgetting forgetting forgetting something?something?something?something?

Page 22: Online Advertising Year Of Living Dangerously

What about the offline world?

Reported Data Breaches Q4-07

28%

14%

Brick & Mortar

E-Commerce

Government

Education

GENERIC FOODS

We got th

e goods

for you and on you

4%

28%

26%Education

Medical & Other

GENERIC FOODS

We got th

e goods

for you and on you

Average American has 4.3 loyalty cards

Page 23: Online Advertising Year Of Living Dangerously

Coming to a C-SPAN Near You in 2009

Page 24: Online Advertising Year Of Living Dangerously
Page 25: Online Advertising Year Of Living Dangerously

IAB/PWC 2007 Revenue Report

Search is the largest Search is the largest Search is the largest Search is the largest segment of online segment of online segment of online segment of online advertising . . . . advertising . . . . advertising . . . . advertising . . . .

because it produces because it produces because it produces because it produces results.results.results.results.

Case study: Provenance Hotels Case study: Provenance Hotels Case study: Provenance Hotels Case study: Provenance Hotels experienced an increase ROI of experienced an increase ROI of experienced an increase ROI of experienced an increase ROI of 2,700% through SEO and paid 2,700% through SEO and paid 2,700% through SEO and paid 2,700% through SEO and paid search.search.search.search.

Page 26: Online Advertising Year Of Living Dangerously
Page 27: Online Advertising Year Of Living Dangerously

Lanham Act

Section 43Any person who, on or in connection with any goods or services, or any container for goods, uses in commerceany word, term, name, symbol, or device, or any combination thereof . . . which

is likely to cause confusion . . . as to the affiliation . . . the origin, sponsorship . . .

Civil Liability

affiliation . . . the origin, sponsorship . . . of his or her goods . . . by another person

in commercial advertising . . . misrepresents the nature, characteristics, qualities, or geographic origin of [the] goods

is likely to cause dilution by blurring or . . . tarnishment of the famous mark, regardless of the presence or absence of actual or likely confusion

Page 28: Online Advertising Year Of Living Dangerously

[A] mark shall be deemed to bein use in commerce—

(1) on goods whenon goods whenon goods whenon goods when . . . . . . . . . . . . placed in any manner on the goods or their containers or the displays associated therewith or on the tags or labels affixed thereto, or if the nature of the goods makes such placement impracticable, then on documents associated with the goods or their sale…

(2) on serviceson serviceson serviceson services whenwhenwhenwhen it is used or displayed in the sale or advertising of services and the services are rendered in commerce…

ONE VIEW: Keyword bidding not use in commerce since it “is

strictly internal, and, because such use is not communicated to

the public, the use does not indicate source or origin of the mark”

Page 29: Online Advertising Year Of Living Dangerously

You Are Here

Use in Commerce

Only the Second Circuit has found that an $8.6 billion industry is not involved in commerce.commerce.

Page 30: Online Advertising Year Of Living Dangerously

Does Bidding on Competitor’s

Trademark Constitute

Infringement?

Likelihood of confusion Likelihood of confusion Likelihood of confusion Likelihood of confusion among judgesamong judgesamong judgesamong judgesamong judgesamong judgesamong judgesamong judges

Page 31: Online Advertising Year Of Living Dangerously

Initial Interest Confusion

Use of another trademark “in a manner calculated to capture initial consumer attention, even though no actual sale is though no actual sale is finally completed as a result of the confusion.”Brookfield Communications Inc. v. West Coast Entertainment Corp., 174 F.3d 1036 (9th Cir. 1999).

B Tal

Page 32: Online Advertising Year Of Living Dangerously

• Improperly Benefits From Goodwill of Trademark

• False Detour From Information Super-highway– Analogy to false detour sign directing

consumers to take wrong exit. “Unable to

Rationale

consumers to take wrong exit. “Unable to locate West Coast, but seeing the Blockbuster store right by the highway entrance, they may simply rent there..” Brookfield Communications, Inc. v. West Coast Entertainment Corp., 174 F.3d 1036, 1062 (9th Cir. 1999)

• Bait and Switch– “Initial interest confusion can be viewed

as a variation on the practice of ‘bait and switch.’” 3 J. Thomas McCarthy, McCarthy on

Trademarks & Unfair Competition § 23:26 (4th ed. 2003).

Page 33: Online Advertising Year Of Living Dangerously

“The initial interest confusion confusion doctrine is a mess."

Page 34: Online Advertising Year Of Living Dangerously

Counterpoint

• Not a Detour, Merely a Lane ChangeNot a Detour, Merely a Lane ChangeNot a Detour, Merely a Lane ChangeNot a Detour, Merely a Lane Change– Web surfers are accustomed to false starts

and are unlikely to be dissuaded when they end up at the wrong site. Chatam Int'l v. Bodum, Inc., 157 F.Supp.2d 549, 559 ED PA 2001).

• No different than supermarket placing No different than supermarket placing No different than supermarket placing No different than supermarket placing store brand next to branded productsstore brand next to branded productsstore brand next to branded productsstore brand next to branded products.store brand next to branded productsstore brand next to branded productsstore brand next to branded productsstore brand next to branded products.– FragranceNet.com, Inc. v. FragranceX.com,

et al. No. 06-CV-2225 (JFB)(ART)(E.D.N.Y., June 12, 2007)

• Legally Significant Confusion?Legally Significant Confusion?Legally Significant Confusion?Legally Significant Confusion?– “The [District] court’s refusal to enter the

‘initial interest confusion’ thicket is well taken given the unlikelihood of ‘legally significant’ confusion.” Hasbro Inc. v. Clue Computing, Inc., 232 F.3d 1, 2 (1st Cir. 2000).

Page 35: Online Advertising Year Of Living Dangerously

• No Liability If Trademark No Liability If Trademark No Liability If Trademark No Liability If Trademark Not DisplayedNot DisplayedNot DisplayedNot Displayed– Keyword advertising is a “use in commerce,” but cannot confuse consumers if the ultimate search results do not

Non-Doctrine Standard

consumers if the ultimate search results do not display plaintiff’s trademarks. J.G. Wentworth SSC Ltd v. Settlement Funding LLC, No. 06-0597 (E.D. Pa. Jan. 4, 2007).

Page 36: Online Advertising Year Of Living Dangerously

CAN-SPAM Act of 2003

CAN-SPAM IS . . .

• An anti-fraud and disclosure statute

• Applies to an email where the “primary purpose” is commercial advertisement or

CAN-SPAM DOES NOT . . .

• “Can Spam” – except for wireless spam

• Include a “Do Not Email Registry”

• Impose an “ADV” advertisement or promotion of a product or service

• Impose an “ADV” labeling requirement

• Create a general private right of action

• Have a volume requirement

Page 37: Online Advertising Year Of Living Dangerously

CAN-SPAM Principal Requirements

From line must

identify initiator

Subject line must not be deceptive.

Adult Messages must provide notice.

UCE must be

identified

as

Postal Address for AdvertiserRequires Working Opt-Out

Mechanism for Advertiser

as

“advertisement”

Page 38: Online Advertising Year Of Living Dangerously

Regulatory Timeline

2004: FTC Final Rule on Adult LabelingFCC CAN-SPAM Rules

2005: FTC (1) Final Rule on Primary Purpose

of Email; and (2) Proposed Discretionary Rules

2006:

2007:

2008: FTC Final Discretionary Rules

Page 39: Online Advertising Year Of Living Dangerously

Discretionary Regs

Definition of Valid Physical Address• Accurately registered P.O. Box allowed• Accurately registered P.O. Box allowed

Opt-Out Requests Conditions or Expiration• Cannot impose any conditions on opt-out requests

– (e.g, fee or provide information)• Abandons proposal to reduce processing time to 3 days• Rejects call for expiration period for opt-out requests

Page 40: Online Advertising Year Of Living Dangerously

Must Be a Sender Under CAN-SPAM

• Name must be in the “From” Line

Designated Sender Rule

CAN-SPAM

Cannot designate Non-Sender

Line

• Must be Responsible for CAN-SPAM compliance

• Dropped requirement that Designated Sender be in control of the content or the mailing list used

Page 41: Online Advertising Year Of Living Dangerously

“Sender” Liability• FTC unsuccessful in seeking strict liability

• Advertiser liable if “actual knowledge, or by consciously avoiding knowing” about affiliate knowing” about affiliate violations– Hypertouch v. Kennedy-Western UniversityStrict anti-spam policies and policing of affiliates defeated allegation of intent.

– ASIS Internet Services v. Opt-In Global, Inc. No duty to investigate

Page 42: Online Advertising Year Of Living Dangerously

CAN-SPAM Plaintiffs

• FTC

• State AGs

• Internet Access Service Provider (IASP)Provider (IASP)– Adversely Effected by Violation

• No Consumer Private No Consumer Private No Consumer Private No Consumer Private Right of ActionRight of ActionRight of ActionRight of Action

Page 43: Online Advertising Year Of Living Dangerously

Is the IASP Remedy a Trojan Horse?

Hypertouch v. KennedyHypertouch v. KennedyHypertouch v. KennedyHypertouch v. Kennedy----Western Western Western Western UniversityUniversityUniversityUniversity

•Small, free service can qualify....

•Concern that Hypertouch is a professional plaintiff can only be professional plaintiff can only be addressed by Congress

•Opens door to litigation by anti-spam activists as faux-IASPs

Hypertouch and its principal have filed approx. 40 cases under CAN-SPAM and/or California law

Page 44: Online Advertising Year Of Living Dangerously

Is Gordon a Proper Plaintiff?

• Gordon v. VirtumundoGordon v. VirtumundoGordon v. VirtumundoGordon v. Virtumundo

– Continued to use other people's e-mail addresses to collect spam . . . for generating lawsuit-fueled revenue

– No harm related to

• Bandwidth

• Hardware

• Internet connectivity, network integrity

• Overhead, staffing or equipment costs

Page 45: Online Advertising Year Of Living Dangerously

No!

• Not Plaintiff Congress had in mind – must demonstrate substantial harm

Followed in Cal Followed in Cal Followed in Cal Followed in Cal Federal CourtFederal CourtFederal CourtFederal Court

ASIS Internet Services v. ASIS Internet Services v. ASIS Internet Services v. ASIS Internet Services v. substantial harm

• Awards Defendant Attorneys’ Fees – suit “ill-motivated, unreasonable, and frivolous”

ASIS Internet Services v. ASIS Internet Services v. ASIS Internet Services v. ASIS Internet Services v. OPTIN Global OPTIN Global OPTIN Global OPTIN Global (N.D. Cal. 2008)(N.D. Cal. 2008)(N.D. Cal. 2008)(N.D. Cal. 2008)

Page 46: Online Advertising Year Of Living Dangerously

CAN-SPAM PREEMPTS ALL STATE REGULATION OF EMAIL EXCEPTSTATE LAWS

• Regulating falsity or deception in email

• Not specific to email, including State trespass, contract, or tort law; or

• Other State laws to the extent that those laws relate to acts of fraud or computer crime

Page 47: Online Advertising Year Of Living Dangerously

• Misrepresentation must be material

• States cannot dictate form of from line – Cannot prohibit use of multiple domains.

– Not misleading to use non-corporate address where domain may be checked using “Who Is”

State Preemption

Case Law

• State regulation must be based on traditional notions of fraud

• First Amendment requires that it not impinge non-commercial email

Page 48: Online Advertising Year Of Living Dangerously

Preemption’s Back Door?

• Utah/Michigan Utah/Michigan Utah/Michigan Utah/Michigan Child Registry LawsChild Registry LawsChild Registry LawsChild Registry Laws– Makes sending prohibited email a “computer crime”

– Free Speech Coalition, Inc. v. Shurtleff,Utah Federal Court refused to enjoin law finding it fell within exception for finding it fell within exception for computer crime • DOJ filed brief supporting this position

• New Colorado Spam LawNew Colorado Spam LawNew Colorado Spam LawNew Colorado Spam Law– Makes violation of CAN-SPAM a violation of state deceptive practices and computer fraud laws

– Is this a backdoor to creating private right of action under CAN-SPAM?

Page 49: Online Advertising Year Of Living Dangerously

AB 2950

• Pushed by anti-spam activists who have filed over 100 suits

• Wish list

– Advertiser liability

– Prohibiting use of multiple domains

– Tactics to evade email filters

– Expand Plaintiffs to include District & City Attorneys

– Venue

– Restore Statute of Limitations to 3 Years

Page 50: Online Advertising Year Of Living Dangerously

AB 2950

• Pushed by anti-spam activists who have filed over 100 suits

• Wish list

– Advertiser liability

– Prohibiting use of multiple domains

– Tactics to evade email filters

– Expand Plaintiffs to include District & City Attorneys

– Venue

– Restore Statute of Limitations to 3 Years

Page 51: Online Advertising Year Of Living Dangerously

www ≠ Wild West West

Page 52: Online Advertising Year Of Living Dangerously

Increased State Enforcement

� The Majors� New York

Continues to be activist post-Spitzer

under Andrew Cuomo

� Texas

80 Arrests First Three Years

� Washington

Five spyware lawsuits since 2005

� New Kids on the Block� Florida

Established in 2007. Investigating 10 companies over “Free ” promotions

� Kansas

Launched in September 2007

Page 53: Online Advertising Year Of Living Dangerously

FTC & State Enforcement

•Deceptive Advertising– The High Cost of “Free”

•Unfair Practices•Unfair Practices– Data Security – will impose sanctions if security not adequate for type and volume of data collected

– Drive by Downloads

Page 54: Online Advertising Year Of Living Dangerously

FTC Consent Decrees

QUALIFICATIONS TO “FREE” OFFERS QUALIFICATIONS TO “FREE” OFFERS QUALIFICATIONS TO “FREE” OFFERS QUALIFICATIONS TO “FREE” OFFERS

MUST:MUST:MUST:MUST:

• Be in the same colorcolorcolorcolor,,,, font, and

size and within close proximity

• Disclose if purchase required• Disclose if purchase required

• Disclose all monetary and non-

monetary (e.g., credit card

application) obligations a consumer

is likely to incur to obtain the

advertised gift.

Page 55: Online Advertising Year Of Living Dangerously
Page 56: Online Advertising Year Of Living Dangerously

• All zones must be “above the fold” / visible to consumer w/o scrolling

• All font types must conform to Web Standard size equivalencies

Florida 3 Zone Standard

• W3C Color Contrast standard applies to all disclosures in all zones (125 min.)

• All disclosures must be visible at all times throughout the order path

Page 57: Online Advertising Year Of Living Dangerously
Page 58: Online Advertising Year Of Living Dangerously

Tallahassee Three Step

• Zone 1 Zone 1 Zone 1 Zone 1 –––– Price and Price and Price and Price and Term ($9.99 per Term ($9.99 per Term ($9.99 per Term ($9.99 per month) month) month) month)

• Must be disclosed entirely within 125 pixels in any direction from the cell submit field and the P.I.N. code submit field.

Zone 2Zone 2Zone 2Zone 2---- Types of Content Types of Content Types of Content Types of Content (Ringtones and Other Text (Ringtones and Other Text (Ringtones and Other Text (Ringtones and Other Text Services)Services)Services)Services)

• Must be disclosed no greater than 20 pixels from the Offer Description (Get 10 Bonus Ringtones)

code submit field.• 12pt. minimum font size• Must be disclosed in

numerical format 0-9 and include $ and without any other text except price/term

Ringtones)

• Other Text Services can be no smaller than 50% of the font size of the Offer

• Description (Get 10 Bonus Ringtones) Minimum font size is 20pt.

Zone 3 Zone 3 Zone 3 Zone 3 –––– Age / Other T’s and Age / Other T’s and Age / Other T’s and Age / Other T’s and C’sC’sC’sC’s

• Age description must be above T’s and C’s. Minimum 12pt. font size.

Page 59: Online Advertising Year Of Living Dangerously

Online Gambling

US: Online gambling/ads are illegal

• Google, Microsoft & Yahoo: $31.5 million settlement with DOJ (Dec. 2007)

• DotNet sites are illegal unless– There are no web links to an online – There are no web links to an online gambling site; and

– Home page has disclaimer stating the site is purely educational

Online Gambling Liberalization in Europe

• Still highly regulated

Page 60: Online Advertising Year Of Living Dangerously

Antigua v. United States

WTO Battle over Online Gambling

• WTO: To the extent online gambling was allowed within the U.S. (some states permit online gambling for horse racing), foreign companies were entitled to equal access to this market

• Awarded $21MM/yr in damages which may be recouped by suspending IP protection for US goods– US-Antigua negotiations ongoing

• EU may bring similar claim– Damages in billions– Decision expected by end of the year

Page 61: Online Advertising Year Of Living Dangerously

Selected Cases I

Keyword AdvertisingKeyword AdvertisingKeyword AdvertisingKeyword AdvertisingUse In CommerceUse In CommerceUse In CommerceUse In Commerce

• NO: Rescuecom Corp. v. Google, Inc., 456 F.Supp.2d 393 (N.D.N.Y., September 28, 2006)

• YES: Playboy Enterprises, Inc. v. Netscape Communications Corp.. 354 F.3d 1020 (9th Cir., Jan. 14, 2004)14, 2004)

Initial Interest Confusion DoctrineInitial Interest Confusion DoctrineInitial Interest Confusion DoctrineInitial Interest Confusion Doctrine

• Brookfield Communications Inc. v. West Coast Entertainment Corp., 174 F.3d 1036 (9th Cir. 1999).

Questioned byQuestioned byQuestioned byQuestioned by• Chatam Int'l v. Bodum, Inc., 157 F.Supp.2d 549, 559 (ED PA 2001).• FragranceNet.com, Inc. v. FragranceX.com, et al. No. 06-CV-2225 (JFB)(ART)(E.D.N.Y.,

June 12, 2007)• Hasbro Inc. v. Clue Computing, Inc., 232 F.3d 1, 2 (1st Cir. 2000).

Page 62: Online Advertising Year Of Living Dangerously

Selected Cases II

CANCANCANCAN----SPAM ACTSPAM ACTSPAM ACTSPAM ACT

Preemption

• Omega World Travel, Inc. v. Mummagraphics, Inc., 469 F.3d 348 (4th Cir. 2006)

• Kleffman v. Vonage Holding Corp., Case No. CV 07-2406GAFJWJX (C.D. Cal. May 23, 2007)

• Gordon v. Virtumundo, Inc., Case No. 06-0204-JCC (W.D. Wash. May 15, 2007)

• Virginia v. Jaynes, No. 062388 (Va. September 12,2008)

IASP Standing• ASIS Internet Services, v. Optin Global, Inc., 2008 WL 1902217 (N.D. Cal. March 27, 2008 )

• Hypertouch v. Kennedy-Western University, 2006 WL 648688 (N.D. Cal. 2006)

No Strict Liability

• US v. Impulse Marketing, No. CV05-1285RSL (W.D. Wash. June 8, 2007)

• US v. Cyberheat, 2007 U.S. Dist. LEXIS 15448 (N.D. Ariz. 2007)

Page 63: Online Advertising Year Of Living Dangerously

Selected Cases III

Online Gambling

• United States – Measures Affecting The Cross-border Supply Of Gambling And Betting Services. Recourse to Article 21.5 of the DSU by Antigua and Barbuda, Report of the Panel, World Trade Organization, WT/DS285/RW (07-1209), March 30, 2007.

FTC GuidelinesFTC Guidelines

• Dot Com Disclosures: Information About Online Advertising

• Advertising and Marketing on the Internet: The Rules of the Road

• FTC Policy Statement Regarding Advertising Substantiation

• FTC Guides Against Deceptive Pricing

Page 64: Online Advertising Year Of Living Dangerously

Bennet KelleyBennet KelleyBennet KelleyBennet Kelley

Bennet Kelley is founder of the Internet Law Center in Santa

Monica where he helps clients navigate the challenges of the digital

economy. He has been active in many of the hottest Internet issues

over the past decade including cyber squatting, internet marketing

and promotions, online gambling, net neutrality, privacy and spam.

Bennet is the Vice-Chair of the California State Bar's Cyberspace

Committee and is a regular contributor to the Journal of Internet

Law. Bennet worked in-house with companies such as ETM Law. Bennet worked in-house with companies such as ETM

Entertainment Network, SpeedyClick.com and ValueClick prior to

launching the Internet Law Center.

The Internet Law Center’s newsletter, Monday Memo, recently was

named one of the top 100 Internet Law resources..

Contact: Internet Law Center 100 Wilshire Blvd, Suite 950Santa Monica, CA [email protected]

www.InternetLawCenter.net