Vogel Internet, Information Technology and e-Discovery Blog : Texas Internet, Information Technology, eCommerce & E-Discovery Lawyer & Attorney Peter S. Vogel : Gardere Wynne Sewell Law Firm : Dallas TX

A new report shows that customers are not that happy with Facebook and MySpace also showed that social media was ranked lower than property & casualty insurance. Also not a surprise that airlines were lower in customer satisfaction than social media. The 2010 American Customer Satisfaction Index (ACSI) was produced in partnership with ForeSee Results is described in the Annual E-Business Report. ACSI scores for Wikipedia topped the Social Media score with a 77, followed by YouTube (Google) 73, Facebook 64, and MySpace 63. IRS scored a 65. Not a surprise that the primary reasons for low rankings for Facebook were: “privacy and security concerns, the technology that controls the news feeds, advertising, the constant and unpredictable interface changes, spam, navigation troubles, annoying applications with constant notifications, and functionality, to name a few.” Interesting customer results at a time with Facebook announced that it had 500 million users and Mark Zuckerberg is sued over an ownership claim!

Facebook a Utility?

In a recent interview on National Public Radio (NPR) Facebook CEO and founder Mark Zuckerberg described his company as a utility for its subscribers “….When I say utility, I mean we are trying to provide people with utility,...Our goal was never to build something cool. It was to build something useful." As part of this interview it was pointed out that Facebook has the largest private database of personal information in the world. When pressed about why Facebook wouldn’t disclose the contents of the database, Zuckberg responded that people would no longer trust Facebook if the database was disclosed. So if Facebook is a utility used by 500 million people, why is it not regulated?
 

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A Judge ruled that Facebook wall postings and MySpace comments may not be subpoenaed based on the 1986 Stored Communications Act which is the same statute before the US Supreme Court in Quon v. Arch Wireless. US District Judge Margaret Morrow’s May 26, 2010 37 page Order in Buckley H. Crispin v. Christian Audigier, Inc. et al reversed a ruling from an US Magistrate Judge that defendants in a copyright infringement case could not subpoena private message on Facebook MySpace. This ruling is particularly interesting since the April 7, 2010 White House Order that all postings on blogs and social media sites are public meetings under federal law. Clearly courts will be vexed by these complex issues as social media continues to grow and change communications. It is any wonder that the 1986 Stored Communications Act may need to be updated or totally replaced since clearly the courts and the White are not in synch?

Yahoo! Plans its Social Media

With 280 million email users it’s no wonder that Yahoo! will launch its social media services to allow exchange of comments, pictures, and the like. Given all the current issues with Facebook privacy and Google’s Buzz it’s no wonder that Yahoo! head of privacy claimed that “ We’ve been watching and trying to be thoughtful about our approach.” Clearly we will all be watching to see the impact of Yahoo! entry into social media, particularly as Yahoo! search engine decline in popularity in the US. Will email traffic overcome the lack of search engine traffic?

More Google Wi-Fi Woes – Now Canada

Recent reports now indicate that the Privacy Commissioner of Canada started an investigation about Google collection of Wi-Fi network data. Since Germany, France, Italy, and the Czech Republic are investigating Canada’s entry into the fray is no surprise. Google’s defense that other companies including Skyhook and organizations like the German Fraunhofer Institute does not seem to be much help at this juncture. The outcome of the Wi-Fi privacy issues may also impact Google maps which are tied together.

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For purposes of dealing with web 2.0 the White House Memo released on April 7, 2010 about social media specifically states that “interactive meeting tools—including but not limited to public conference calls, webinars, blogs, discussion boards, forums, message boards, chat sessions, social networks, and online communities—to be equivalent to in-person public meetings.” The White House Memo is a follow-up to President Obama’s January 21, 2009 (day after the President was sworn-in) “calling for the establishment of ‘a system of transparency, public participation, and collaboration.’” Fascinating development that blogs, Facebook, LinkedIn, Twitter, MySpace, Yelp, and the like are public meetings which means that one should expect little privacy from use of these online services.

Majority of Government Agencies Use Social Networks

This report states that a majority of government agencies now use social networks is hardly a news flash, but put in context of the White House’s Memo that use of social networks are public meetings may change the public view of how they communicate. Of the 400+ million Facebook members of an estimated 70% are outside the US, and one may wonder how communications across international borders impacts the declaration that social media is public meetings.

Yelp and the Business of Extortion 2.0

This recently filed class action suit accuses Yelp of extortion to get bad comments removed from Yelp and lower rankings by reviewers. It remains to be seen whether this case will succeed, but if Yelp is considered a public meeting by the White House it makes one wonder how extortion fits in. Not to mention that the 50 million a day of tweets on Twitter are considered public meetings, even though at least 14,000 are followers of a Doonesbury’s cartoon character Roland Hedley! Web 2.0 is definitely taking us in interesting directions!

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The Robert S. Mueller III's (FBI Director) warning is not a surprise but how the IT community deals with these threats impact us all. Homeland Security Secretary Janet Napolitano “admitted there is an urgent need to step up efforts to protect Americans from cyber attacks.” Also Ms. Napolitano’s predecessor Michael Chertoff, former DHS secretary, under President George W Bush, agreed. "We are seeing in the intervening time the adversaries, whether they be criminals or nation states or terrorists, are not taking time off. So with each passing year, the need to move faster becomes greater." So far new the Cyber Czar as been low profile, but based on these presentations at the recent RSA Conference that low profile cannot continue.

Cyber Crime: A Clear and Present Danger

Deloitte’s recent white paper is the result of the 2010 CSO (Chief Security Officer) CyberSecurity Watch Survey in conjunction with the CSO Magazine, the US Secret Service, and the CERT Coordination Center at Carnegie Mellon. The white paper concludes that:

Data is more valuable than money. Once spent, money is gone, but data can be used and reused to produce more money. The ability to reuse data to access on-line banking applications, authorize and activate credit cards, or access organization networks has enable cyber criminals to create an extensive archive of data for ongoing illicit activities.

There is a clear message about how vulnerable businesses are and how every business must be vigilant or risk great damages.

Tweet this: Social Network Security is Risky Business

With the recent report of 50 million tweets a day it’s no wonder that a panel at the RSA Conference devoted a great deal of discussion to how vulnerable social networks are. Cybercrime is so easy because users of Facebook, Twitter, and MySpace are easy marks since the feel at ease communicating with their “friends.” However cybercriminals can more easily Web 2.0 commit cyber crime because most “…users are willing to click if they think, 'It's my friend. I'm OK, because I'm inside my network and that's Fred. Only it's not Fred, it's Fred's hijacked account." So all in all, things are becoming more dangerous and apparently businesses and web 2.0 social networkers are still not getting the scope of their risk!
 

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Google added two new links for “My social circle” and “My social content” that permit Social Networking searches! This blending of the most popular search engine in the US with social networking is getting more interesting since “Google is striking real-time deals with both Facebook and MySpace. Updates from public pages on Facebook will appear in Google real-time search, as will any publicly posted comments on MySpace.” In the future hundreds of millions of friends on Facebook and MySpace will use Google to search.

Google “Show Options”

Many people may not have noticed that when you do a Google Search the results displays “Show options” which includes the following:

So whenever you do a Google search you can click on “>Any time, Latest” and you will find information that just happened seconds before. This service now permits real time searching rather than purely historical.

Twitter on Google and Bing

To make things a little more interesting Google just announced that it will add live results from Twitter searches. However Bing already has an early version http://www.bing.com/twitter. With the tremendous growth of Social Networking now blending into search engines seems logical and inevitable. Even though Google gives pointers on how to protect oneself with these new social network searches, Google still keeps searches for 18 months. It makes one wonder how private everyone’s information really is on Social Networks or Google.
 

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In a 5-4 ruling the Ohio Supreme Court now requires a search warrant to search cell phone content which the American Civil Liberties Union of Ohio calls a landmark decision as this appears to be a case of first impression. The defendant’s cell phone was searched without a warrant after he was arrested on drug charges based on a police sting operation. At trial the defendant claimed a violation of the 4th Amendment that although the police had the right to take his cell, the police did not have the right to search the contents of the cell. A decision to appeal to the US Supreme Court is pending.

US Supreme Court Agrees to Consider Text Messages

This week the Supreme Court agreed to consider the privacy claims of police officers text messages in City of Ontario v. Quon. The question before the Supreme Court is whether the city employees are entitled to privacy of the text messages stored at Arch Wireless’ servers since the city provided the text services to the officers as part of their jobs. Each officer received 25,000 characters a month as an allowance and the officers paid for any overages. The city paid no attention to the text messages until it discovered that officer Jeff Quon (who paid for characters above the allowance) had sent sexually explicit messages that were clearly personal and not business related. The question in this case is also a claim of violation of the 4th Amendment.

Web 2.0 Communications

Given what people post on social networking sites like Facebook, MySpace, and LinkedIn it is a wonder that many folks expect much privacy today. Courts will continue to be confronted with perplexing issues regarding the use of the Internet and this will never be less complex, but as I  blogged this week Judges in Florida should not be social network friends with lawyers who appear before them in cases even though lawyers may contribute to their election campaigns. As web 2.0 expands one easily images that the courts will have to reconsider how the 1789 written Constitution applies.

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Social networking remains headline news as Facebook got a $200 million infusion from a Russian based company while at the same time Iran changed its blocking policy and unblocked Facebook in the midst of a heated June 12th election. Both of these reports demonstrate important messages about social networking in spite of the fact that Facebook, Myspace, and YouTube are not generating the revenue expected given their size and evolution. But at the same time reports of phishers harvesting Facebook passwords for profit should be a sobering reminder that social network users are very vulnerable since they trust their friends, who may be taking personal identities and passwords.

$200 Million = 1.96% Equity

When you do the math and see that Digital Sky Technologies (DST) paid $200 million for 1.96% of equity of Facebook that translates to a $10 billion valuation, which is a third less than Microsoft’s October 2007 $240 million invest for 1.6%. These numbers can make anyone dizzy, notwithstanding that Facebook doubled in size between August 2008 and April 2009 to 200 million friends. Since Facebook reports that more than 70% of its users are outside the US it makes lots of sense for DST as it invests mostly in Internet companies in Russia and Eastern Europe.

A World Message

DST’s Eastern Europe reach reinforces social networking’s power, but Iran’s concern about Facebook influencing an election is an even bigger message. Since the Facebook ban in Iran lasted only a few days the social pressure forced the change. Surely Iran will not be the only country to limit access to social networks which was worried that anti-government groups could band together on Facebook to impact the June 12th election.

You would have to live on Mars to not be aware that President Obama maximized the use of social networks to raise funds, support, and ultimately election. No wonder the White House has a YouTube page. We should all keep an eye on political uses of social networks as we watch the evolution of the Internet.
 

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A report that Roman Catholic bishops in Italy are urging Italian Catholics to give up texting for lent sends a very interesting message. This suggestion is more than a no-meat Fridays, to stop communicating with texts for 5 weeks. However there’s more at play than it seems. Most Millennials communicate by text rather than phone or email, so one might wonder if this message was directed at trying to get Millennials more involved with their religion.

Political & Social Issue

All cell phone and many other chips rely on Coltan, short for columbite tantalite, and 80% comes from the Democratic Republic of Congo. So the political side of the no texting for lent is to highlight the years of conflict in the Congo where apparently farmers and children have been enslaved to dig for Coltan and the monies have been used against the citizens.  As well many of the wildlife preserves are being destroyed. There is even a “No blood on my cell phone” campaign as part of a requested embargo against the use of Coltan.

Web 2.0 Issue

Without question the Web 2.0 world has changed the way in which we communicate, and hundreds of millions of individuals regularly spend time texting, sending emails, and posting information on FaceBook, MySpace, LinkedIn, and/or Twitter. So giving up texting for lent does not seem like a very pragmatic proposal since such a proposal is not much different than giving up talking to for lent. Actually FaceBook just announced that it was expanding the amount of information about each friend and instead of a 5,000 friend limit, there will be no limit. So clearly Web 2.0 will only expand and giving up any Web 2.0 for lent seems impractical.
 

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Notwithstanding all the .com failures over the past 15 years it’s unusual to see an Internet phenom change the waterfront so much as twitter. If you were otherwise not aware, twitter with a member base of about 4 million is a micro-blogging service which limits its messages to 140 characters and it just announced that it raised $35 million in third round of funding. However twitter has never had a marketing plan, and as a matter of fact twitter just hired its first director of business development. There was a lot of media attention on twitter when President Obama planned to use twitter to announce his running mate in 2008.

Is twitter on its way to being an Internet giant?
 

A recent article speculated that twitter is replacing Second Life as a business tool because of twitter’s ease of use on cell phones, takes little time to set up, and requires no software. On the other hand Second Life and other virtual worlds, require substantial time and resources to set up. Not to mention that one cannot conduct business in Second Life on your cell. Many B2B marketers are using twitter including BearingPoint, British Air, and McKinsey & Co. Dell Outlet sold hundreds of refurbished computers in a couple of hours by merely sending tweets (a twitter message).
 

Security Concerns for Social Networks
 

At a recent security conference researchers reported that apparently, without much surprise, individuals who use social networks are naïve and as a result have absolute trust in communications they receive from friends in twitter, FaceBook, MySpace, and LinkedIn. As we are all aware, with the growth of Web 2.0, millions of individuals around the world are spending vast amounts of time and energy with to these social networks. However, these security researchers demonstrated how imposters using these various Web 2.0 networks can steal identities and personal information with great ease. Given these warning of security issues we need to stay tuned for the continued evolution of twitter and the other social networks.
 

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Facebook claims to have more than 120 million active members and it is the 4th most trafficked site in the world. Of course there are many other popular social network sites including LinkedIn and MySpace to name a few, and only to make things more interesting a recent report indicates that more than half of MySpace visitors are 35 or older. Not much of a surprise that more mature individuals are getting into social networking as the Internet evolves.

What about the Content?

The terms of use vary between Facebook and other social network sites, but one common provision in the terms of use is that the users grant these sites a worldwide license to the user content that is irrevocable, perpetual, non-exclusive, transferrable, royalty free to use, copy, or just anything they want. Facebook also limits its liability to the amount of monies paid (if any) or $1000. Even users of Google Apps grant Google a license to their content.

Web Universal ID?

Facebook recently announced Facebook Connect which is an Universal ID that will allow its users to only logon once and then navigate to third party sites. Not much of a surprise that Google, Yahoo!, and MySpace are also developing similar technology. However, it seems that either few individuals don’t care or understand that they are providing Facebook, MySpace, Google, and the all the rest with licenses to their personal content. Regardless of what users understand the growth of the social networking websites will be based on increased data from their users’ content which will generate more online advertising revenues.
 

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What a sad story that an email sent by Josh Evans (who did not exist) led to the suicide of Morgan Meier (a 13 year old). Actually Josh Evans’ emails were sent by Lori Drew, the mother of a former friend of Morgan, who “cyberbullied” Megan with a make-belief identity. How tragic for Morgan’s family and after a trial, a federal court jury found that Lori Drew committed a crime, but it will not end here. In December the federal judge will consider motions to set aside the verdict. Depending on what the federal judge does, this may continue in the appellate courts for some time to come.

Will Failure to Read the Terms of Service be a Defense?

Lori Drew’s attorney has filed motions to set aside the verdict because she did not read the MySpace Terms of Service which obligates users to provide “truthful and accurate” registration information. Prosecutors alleged that Drew’s phony profile was unauthorized access and a violation of the Computer Fraud and Abuse Act of 1986. That law was created to protect violations of federal and bank computers, and has been expanded to include most computers and the Internet.

How do Courts View Terms of Service?

Generally most courts tend to accept the Terms of Service (or Terms of Use) for a website as a binding agreement even though few individuals ever read them. Terms of Service are most often found below the fold of the front page of most websites…Google does not even have a Terms of Service on its front page. But courts rely on the fact that users have a choice to use the website and so should realize they are bound to whatever the website says the Terms of Use are. As we all know many websites also require a “Browse-Wrap Agreement” which asks the user to “Click Agree.” Virtually everyone does “Click Agree” without reading a single word of the “Browse-Wrap Agreement.” So it will be interesting to see how Lori Drew’s failure to read MySpace’s Terms of Use will be any kind of defense.
 

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