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E L E C T R O N I C   C O M M E R C E :   V E R S I O N  2.0

Congratulations to the Fall 2001 class for an excellent semester. eCommerce will return next year.

 

New Property, New Violations?
The Law of Linking, Framing, and 'Bots

 

 

R E A D I N G S

 

With the move of information online, accessible by hyperlink, disputes have arisen over the propriety of linking or accessing others' web sites. In this section we'll consider the law of linking and framing, and discuss the various legal theories that have been used to try to control unwanted linking behavior on the 'net.

 

The Origins and Scope of the Controversies

The Cases

 

The Commentary

In June 2000, 28 "high tech" law professors submitted a brief in favor of Bidder's Edge to the 9th Circuit, which was then hearing the appeal of the eBay v Bidder's Edge case (the case later settled). In relevant part, the professors noted:

We submit this brief out of concern that the district court’s decision represents an unwarranted and dangerous extension of the ancient doctrine of trespass to chattels to control the flow of information on the Internet.  The doctrine of trespass to chattels is not designed to and should not be extended to give one company ownership of information about the price of a commercial product sold on the open market, as the district court’s decision would effectively do.  The public interest in this case weighs overwhelmingly against the grant of an injunction.  We argue first that the district court’s ruling threatens the efficient exchange of price information on the Internet, and also that the court’s rationale sweeps so broadly as to endanger many of the most fundamental activities on which the Internet and electronic commerce are based.    Second, we argue that the district court erroneously substituted speculation about possible future harm for the evidence of actual harm that trespass to chattel law requires.

In particular, the professors noted the following concerns:

1. Allowing the trespass claim will reduce competition. That is, the ability for web server operators to prevent the use and spread of their information (specifically pricing information) will reduce the competition for goods online, thereby reaising costs to eCommerce participants.

2. Allowing the trespass claim will make search engines and linking illegal. If web sites operators can choose who can (and cannot) link to them, search engines may likely be destroyed. Additionally, this ability to block links will affect free expression, as site operators can choose to stop links from those with messages they dislike.

3. Allowing the trespass claim grants a quasi-IP right. The information that eBay was trying to protect is not copyrightable, but the decision nonetheless offers legal protection. This new IP right is ill-considered and lacks the balance inherent in statutory IP rights.

 

The Excercise

Again, the class will break into six groups:

Group A: contains members of Groups 1, 2

Group B: contains member of Groups 3, 4

Group C: contains members of Groups 5, 6

Group D: contains members of Groups 7, 8

Group E: contains members of Groups 9, 10

Group F: contains members of Groups 11, 12

The groups will have time during class to meet and consider the following problem:

A major client of your firm is Yahoo!, which is -- as you know -- one of the largest providers of web services. As such, the company has thosands of servers located throughout the world. The General Counsel at Yahoo! forwards you the following news article, asking you to provide him with a plan of action to address this:

In particular, the general counsel wants answers to the following questions:

1. Is there a legal cause of action that Yahoo! could use to prevent this?

2. What theory would this support this claim? (i.e., contract, copyright, trademark, trespass, etc.)

3. What arguments would you make?

4. Is Yahoo! likely to win?

5. As a policy matter, should Yahoo! lobby the Federal Government for a federal anti-cybertresspass statute? What should it look like?

 

Come to class ready to discuss and debate these questions (and the larger topic) in detail.

 

 

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C O P Y R I G H T   ©   2001   R.   P O L K   W A G N E R.