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Stealing Limelight from Hollywood, California Shines the Light on Privacy

California’s Shine the Light Act, California Civil Code 1798.83, responded to the perceived need for transparency and provides consumers certain rights in connection with how businesses share information about California residents for purposes related to direct marketing. The regulatory team at Rimon has prepared a Rimon Shine the Light Act Reference Guide; and while the Act doesn’t apply to every business, if it does apply, liability may be as high as $3,000 per violation. You can view the entire blog posting on our sister GRE Law Blog.

As always, if you need guidance from lawyers who have experience and resources aligned to deal with these issues, call me, Joseph I. (“Joe”) Rosenbaum; any of the lawyers highlighted in the posting; or, of course, the Rimon lawyer with whom you regularly work.

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Online Gambling. Time to Change Legal Bytes to Legal Bets?

On December 23, 2011 the U.S. Department of Justice reversed its decade long position on the applicability of the U.S. Wire Act to online gambling that does not involve sports betting. In previous years, prosecutions were brought against any form of online gambling based on their interpretation of the Wire Act. This opinion, reverses the long standing position and may well clear the way for States to become more aggressive in legislatively enabling intra-State online gaming and who knows, perhaps the Federal government will consider licensing and regulation permitted online gambling. This is not simply big news within the United States. Gaming and gambling operators around the world who may already be working with governments on their lottery initiatives and many other companies who have no presence in the United States may now be looking to establish a foothold and ultimately a major presence in the U.S. Similarly, U.S. casino and gaming operators already licensed, may sense the opportunity for foreign investment and the injection of new capital, new expertise and a more global platform.

Rimon and its interdisciplinary team of experienced gaming transactional, e-Commerce, payment, privacy, technology and marketing lawyers have their eye on this new development that has the potential to energize the data-intensive, multi-billion dollar online gambling industry in the U.S. market. Joe Rosenbaum, Ramsey Hanna and Joshua Marker have authored a Client Alert which you can read here:  U.S. Federal Government Reverses its Stance on Online Gaming.

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When Online Games, Health & Life Sciences and Crowd Sourcing Combine

This time, the law of unintended consequences is bringing scientists and online gamers together in a crowd sourcing manner hitherto unimaginable.

An article in this month’s edition of the journal Nature Structural & Molecular Biology has announced (citing both research scientists and online gamers as co-authors of the article) that through a 2008 purpose-oriented video game developed at the University of Washington in 2008 – Foldit – the structure of an enzyme, one used in complicated customizing of retroviruses, was accurately modeled. 

Who cares and how does this affect us? Well, as a former biochemist wannabe, if you can model the structure of these proteins, you can better understand how diseases are caused and correspondingly develop drugs to block or stymie the progress of those diseases.

Amazingly, gamers were able to produce an accurate model of an enzyme whose structure had eluded scientists for a very long time in only three weeks and the report notes, referring specifically to medication against the human immunodeficiency virus (HIV) for which an understanding and design of antiretroviral drugs is absolutely critical. Seth Cooper, one of the creators of Foldit noted that "Games provide a framework for bringing together the strengths of computers and humans. The results in this week’s paper show that gaming, science and computation can be combined to make advances that were not possible before."

If you thought the intellectual property, licensing, user generated content, crowd sourcing, cloud sourcing, social media legal issues were already enough arising from scientific research, online gaming and crowd sourcing alone were enough to make your head spin, conjure up the implications when the term ‘convergence’ is applied to any two or three of these disciplines. Isn’t it time you had legal counsel and representation who can seamlessly help navigate them while your teams are busy solving the health care and medical problems of the world?

If you want to know more about how lawyers who understand can help your business, feel free to contact me, Joe Rosenbaum, or any of the Rimon attorneys with whom you regularly work.

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“Mom, is it OK for them to follow me?” FTC Targets Ads That Target Kids

Many of us remember when kids were actually worried about being caught misbehaving. Back in those days, parent’s concern over children’s behavior dealt with whether the kids were ‘fresh’ or ‘mischievous’ or talked too much in school. I was perennially the subject of “he would do so much better in class if he just stopped horsing around and paid attention.” Dear Mrs. Frohman, Mrs. Handel, Mrs. Flynn and Mrs. Bernstein – thanks! It took me several decades, but I finally got the message. Today, however, when we hear the terms children and behavior – well, at least according to the FTC, it ain’t the children that are misbehaving.

In a proposed amendment to rules that have been in effect since 2000, the Federal Trade Commission (“FTC”) is proposing amendments to COPPA (the Children’s Online Privacy Protection Act”) that “would require parental notification and consent prior to the collection of persistent identifiers where they are used for purposes such as amassing data on a child’s online activities or behaviorally targeting advertising to the child.” In describing the proposed changes (the proposed  Amendment runs 122 pages long), the FTC notes that these new rules would apply to any identifying or tracking technology (cookies) that would link a child’s browsing behavior across multiple web pages and services – ostensibly including advertising networks and metric/measurement/analytical service providers who routinely have access to such information.

Although a ‘safe harbor’ for compliance with self-regulatory programs is included within the FTC’s proposal, it did suggest that these programs (and individual company compliance with these programs) be more closely monitored and supervised – including mandatory audits every 18 months and reports detailing actions taken by the self-regulatory body against the companies that do not comply. Clearly, one of the FTC’s objectives is to not only ensure a mandatory review of compliance, even for those companies that have not been subject to proceedings, but also to create a record-keeping and reporting system that gives the FTC the ability to obtain detailed information about the proceedings and the compliance efforts of individual companies.

Comments, which are due by November 28, 2011, may be filed with the FTC using it’s COPPA Rule Review Form. If you are interested, concerned, want your voice heard, or otherwise need to be guided by experienced counsel in this area, please feel free to contact me, Joseph I. Rosenbaum, or the Rimon lawyer with whom you regularly work. We would be happy to help!

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The FTC vs. Google: Who Are You Going to Call?

Late this past June, the Federal Trade Commission indicated it was launching an investigation into Google’s search engine technology and whether it pushes consumers to Google’s other services in a manner that is unfair to competition.

That also means that the FTC will not only be asking Google for records and information about the way it conducts its business, but it will also be asking for information from Google’s competitors (presumably who would provide information gleefully, except that they best be careful about celebrating too prematurely when they hand over information to the government), AND – here it comes – lots of companies who do business with Google: The host of third parties that are advertising and marketing networks, publishers, services, sponsors and, yes, even advertisers and agencies themselves.

What should you do? Well we’ve prepared a handy reference guide – What Should You Do When the FTC Calls About Google? to explain what the FTC can ask, to explain a few of the basic legal principles that apply to the “asking” the FTC may engage in and, frankly, a warning that you should be calling your lawyers—lawyers knowledgeable in this process—and protecting your interests. For you in-house lawyers out there, if you aren’t familiar with handling these inquiries and third-party requests, perhaps you should consider engaging the services of outside lawyers who know how to help. So whether you know you need help, before or after receiving an inquiry from the FTC – formal or informal – or if you aren’t sure, you might just want to call Joseph I. Rosenbaum, Rachel A. Rubin or the Rimon lawyer with whom you regularly work. We would be happy to help!

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New Jersey Finds Media Companies Taxing

New Jersey recently announced an initiative that offers certain tax and penalty abatements to media companies that come forward voluntarily to bring themselves into compliance with the state’s tax laws. New Jersey’s policy is that any media company with New Jersey-based subscribers or that advertises in the state of New Jersey is subject to New Jersey state tax. But New Jersey officials believe that many media companies are not currently in compliance. So they are offering an abatement program, noting that any non-compliant company that does not come forward within the next 90 days will be treated much worse.

Rimon has one of the largest New Jersey state tax practices of any major firm, with extensive experience negotiating these types of tax agreements with New Jersey tax officials; and members of the practice always recommend that discussions with the New Jersey taxing authorities be done through qualified counsel to preserve taxpayer confidentiality. You can read our State Tax Alert on the subject, and if you are interested in learning more, contact David J. Gutowski or any of the Rimon lawyers with whom you regularly work. We would be happy to help.

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Who’s Right on Privacy? Rosenbaum on Legal Bisnow.

You’ll have to read the story to find out why Rimon’s own Joseph I. (“Joe”) Rosenbaum thinks that “Privacy is the elephant-sized rubber band ball in the room.” Joe was recently interviewed by Jeff Gamsey, managing editor of Legal Bisnow, and is featured in yesterday’s lead story on Legal Bisnow entitled, “Who’s Right on Privacy?”

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Transcending the Cloud – Health Care on Cloud 9? Are You Doing Fine?

If you are a music aficionado, you will remember that years ago, The Temptations sang “I’m Doing Fine on Cloud Nine.”

 

https://youtube.com/watch?v=6aiYCuOzmcs

 

If you are a health care provider paying attention to the buzz about cloud computing, you may be concerned about migrating your technology, your data and your applications to a cloud environment.  Or, let’s say you are just confused about the implications. You are not alone.

That’s precisely why our Cloud Computing initiative exists. To provide you with a guidance system – navigational tools to allow you to see sunshine, even on a cloudy day. So, as part of our ongoing commitment to keeping abreast of legal issues, concerns and considerations in the legal world of cloud computing, here, from Vicky G. Gormanly and Joseph I. Rosenbaum, is the next chapter in Rimon’s on-going series, “Transcending the Cloud: A Legal Guide to the Risks and Rewards of Cloud Computing,” entitled “Health Care in the Cloud – Think You Are Doing Fine on Cloud Nine? Hey, You! Think Again. Better Get Off of My Cloud.” This white paper examines the considerations and concerns that arise for the health care industry and the industry’s associated suppliers, vendors and providers in the wake of complex and evolving regulation and scrutiny – most notably, in the privacy and data protection of medical information – of electronic health records.

As we do each time, we have also updated the entire work, so that in addition to the single ‘Health Care in the Cloud’ white paper, you can access and download a PDF of the entire “Transcending the Cloud: A Legal Guide to the Risks and Rewards of Cloud Computing” compendium, up to date and including all the previous chapters in one document.  After reading the article, instead of doing fine, you just may want to take the advice of The Rolling Stones and “Get Off of My Cloud” until you consult your legal advisors.

 

 

Of course, feel free to contact Vicky Gormanly or Joe Rosenbaum directly if you have any questions or require legal counsel or assistance related to this white paper. Make sure you subscribe via email or get the Legal Bytes RSS feed so you are always in touch with our latest information. Of course, if you ever have questions, you can always contact any Rimon attorney with whom you regularly work.

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ANA Voices Opposition to ICANN’s Proposed New gTLD Program

If you have been reading LegalBytes, you already know that the International Corporation for Assigned Names and Numbers (ICANN) approved a plan to allow the proliferation of new generic top-level Internet domain names (Nightmare on Brand Street: ICANN Adopts Unlimited gTLDs). We hope you also know that a brief, executive-level presentation was made available entitled "The New gTLDs: What Does It Mean for Brand Owners?" that you can still download from "ICANN. You Can. We All Can: Own Your Own gTLD, Of Course!"

Well since then, all has not been quiet on the Western, Eastern, Northern or Southern Fronts, and today, in a letter to ICANN, the Association of National Advertisers ("ANA") detailed major flaws in the proposed ICANN program. You can read the ANA press release, as well as comments regarding ICANN’s administration of the root server system for the Internet that the ANA filed with the National Telecommunications & Information Administration (U.S. Department of Commerce).

Full disclosure: Rimon is representing the ANA in this initiative, with the support of other associations and organizations, to put ICANN on notice that the program will be economically disastrous and is unjustified by reports and experts relied upon by ICANN. The starting point for inquiring minds is the simple question: What problem or concern is this new program intended to address? The next question might be: At US$185,000 per application, plus additional annual fees, hosting or domain administration costs; dispute resolution expenses; and the added staff and monitoring (not to mention that companies will not simply abandon their existing domains (e.g., the dot com world); how can the Department of Commerce explain to small- to medium-sized businesses or start-up and emerging-growth companies that this additional cost is well worth it?

If you ask me, there is no shortage of questions, but an apparent paucity of answers. While there may be an emerging chorus of opposition, companies are already being forced to spend money hiring consultants, conducting analyses, commissioning internal task forces—all to study the impact, and determine if they should fight, apply or pursue any number of alternatives, in response to a program of questionable need and more questionable value. But then, that’s just my humble and slightly biased opinion.

So if you are stimulated to act or just to ask, you can contact any member of Rimon’s TLD Task Force: Doug Wood at +1 212-549-0377 or dwood@rimonlaw.com; Judy Harris at +1 202 414 9276 or jharris@rimonlaw.com; John Hines at +1 312 207 3876 or jhines@rimonlaw.com; Alex Klett (Germany) at +49 89 20304 179 or aklett@rimonlaw.com; Amy Mushahwar at +1 202 414 9295 or amushahwar@rimonlaw.com; Brad Newberg at +1 703 641 4272 or bnewberg@rimonlaw.com; Bo Phillips at +1 213 457 8311 or rphillips@rimonlaw.com; or Joe Rosenbaum at +1 212 702 1303 or joseph.rosenbaum@rimonlaw.com. 

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The State of Cloud Computing Can Be Taxing – Want to Understand Why?

Back in June 2010 – more than a year ago – we announced the launch of a new Rimon initiative focusing on Cloud Computing (see ‘Transcending the Cloud’ – Rimon Announces White Paper Series & Legal Initiative on Cloud Computing),showcased with a series of individual and topical white papers, in time being compiled into a comprehensive work entitled, “Transcending the Cloud: A Legal Guide to the Risks and Rewards of Cloud Computing.” As most of you know, this brave new world, with new providers, new economic models, new access plans, and broadened capabilities, has grown, and over the past year we have released nine individual white papers, with more on the horizon and updates to existing papers as the legal and technology environments evolve. One of the first in our series was a paper on the state tax implications of cloud computing entitled: “Pennies From Heaven.”

Just letting you know our State Tax Practice is hosting a Rimon teleseminar on recent developments in state taxation on the subject, and you can view the invitation and sign up through the registration link on the invitation. Just head to: “Clouds, Codes and Crunching Numbers: An Update on Current State Multi-State Tax Development and Trends in the Taxation of Electronic Goods and Services” and sign up today!

Of course, make sure you subscribe via email or get the Legal Bytes RSS Feed so you are always in touch with our latest information; and if you have any questions about our Cloud Computing initiative or need help, feel free to contact me, Joe Rosenbaum, or the Rimon attorney with whom you regularly work. We are happy to help.