Net Neutrality

Net neutrality is the concept of preserving the system we have in place now: we pay a certain fee and obtain access, which is mostly unrestricted, to the internet. This principle is under question because of growing cell phone usage. Some internet providers want to discriminate between users and allow some traffic a higher priority than others.

In April, the DC Circuit Court of Appeals stated that the FCC didn't provide enough convincing evidence for its authority to enforce net neutrality. Several Congress members have tried to sponsor bills in favor of net neutrality as well, but none have succeeded. The FCC has also attempted to conduct meetings with big internet service providers in the interests of working out a solution, but the talks failed to reach a compromise.

Ultimately, this could affect online business and innovation as the internet would become more like cable television. Businesses would have to purchase agreements with internet providers to ensure that their content is easily downloadable. Smaller, growing websites could have issues with development since this policy would favor already established sites. Because it is an issue that has only surfaced recently, this is a new area of First Amendment rights that has yet to be decided upon.

For more information, visit: http://business2press.com/2010/09/16/how-internet-neutrality-affects-online-innovation-and-business/

Privacy Protection

A new survey conducted by Anonymizer suggests that individuals may not know how to protect their privacy online. Most respondents were nervous about identity theft, privacy, and computer viruses. 36 percent of respondents believed their identity was secure online. However, less (28 percent) believed their identity was secure on a mobile device.

Advertising played a role in the survey as well. 85 percent were aware they were being profiled by advertisers; 85 percent were aware that cybercriminals were tracking them without their knowledge. The biggest part, according to the article, is that a majority of respondents thought that a firewall would protect their privacy or anti-virus software would protect their identity. The best course to take is a healthy dose of skepticism, however. User education can prevent social engineering and phishing scams.

I thought that this article was applicable even though it references a survey of individuals. Many small businesses must be in similar states of understanding when it comes to online privacy. Information can be easily accessed online with the right situation, and I think that this survey helps to put that in perspective. Being aware of how data moves on the internet can be beneficial to any company.

The article is located at: PC World.

Weak Passwords

Despite predictions that the use of passwords will become less common and will be replaced by other methods of authentication such as fingerprint scanners, usernames and corresponding passwords are still prevalent. Many people rely on weak passwords to protect their information online, which is concerning, if not exactly shocking.

A recent study by Webroot delved into these poor password practices. The survey found that: 4 out of 10 respondents had shared passwords with at least one person in the last year, the same amount used the same password on multiple websites, half of all respondents didn't use special characters to encrypt their passwords, and 2 of 10 have used public information (such as dates and pet names) as their password.

The survey always outlined that people thought their passwords were more secure than they actually were and believed they were well protected. The article went on to cover some good tips to make passwords. Mainly, you should not make passwords that are easy to guess; avoid personal information and standard words. Definitely don't use the same password for multiple sites.

Because sensitive information can be found online, businesses have to be careful about passwords as well. If you look at a law firm, think of all of the wrong that could be done if an employee's work email was hacked into. All together, I thought that this email had some decent tips on how to deal with the issue.

For more information, visit: PC World.

National E-Discovery Trends

Because e-discovery is still such a fresh issue, recent court decisions have impacted how attorneys are dealing with it. The shift has resulted in broader guidelines in the Federal Rules of Evidence over the last few years, in addition to landmark cases. Some of the more current decisions stem from the Delaware Court of Chancery, which is one of the nation's most prominent business litigation courts.

These Delaware decisions stress attorney responsibility. Electronic discovery most often relates to e-mails and the process of ensuring that their corresponding data is not deleted. The Court emphasized that counsel must take appropriate measures to guarantee that clients do not destroy data. In addition, it stated that attorneys must be certain to conduct proper searches to collect e-discovery. Clients cannot be allowed to search their own e-mail systems, for example.

One of the biggest decisions concerning electronic data came from a ruling in California. The case (Qualcomm v. Broadcom) was a patent trial that resulted in allegations of discovery misconduct after Qualcomm lost. Initially, Qualcomm's counsel was reprimanded for not properly searching for documents, accepting a client's assurances that the search was sufficient, and ignoring warning signs that the search was inadequate. During additional litigation, it was found that the attorneys did not act in bad faith and initial sanctions were lifted. Despite this, the case served as a cautionary tale to firms to take courts seriously on the issue.

For more information, see the article at the ABA's business law newsletter.

Social Networking

Social networking businesses have unique challenges to face when protecting themselves from liability. For example, they need to create terms of use for their service, protect intellectual property, and maximize statutory immunities.

End-User License Agreements (EULA or Terms of Use) are a concept we've all grown familiar with. Courts have ruled that users can be found legally culpable for infringing upon these contracts. On the opposite hand, however, if the contract is too demanding or one-sided, courts can refuse to enforce it. Creating these types of agreements is a tricky balance as a result.

Copyright violations have also affected social networks in the past. Before the Digital Millennium Copyright Act in 1998, service providers could be held to criminal sanctions and civil liability for hosting an infringing work. Now, social networks are protected if: there isn't knowledge of the work being infringing, lack of financial benefit, and expeditious removal of the content once it has been discovered.

The internet is always creating new legal issues, especially so in the realms of contracts and intellectual property. It's good sense for businesses to be aware of these problems.

For more information visit: Business Law Today.