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-
- *******************************************************
- * PHILE 4: SYSOPS' LIABILITY *
- *******************************************************
-
- ** PIRATE reprints the following that arrived over the BITNET
- lines. Following with our policy, it is printed exactly as
- received. Only the date of the conference was removed. **
-
- /*/ SYSLAW: THE SYSOPS LEGAL MANUAL CONFERENCE /*/
- ==================================================
- Editors' Note: The following conference took place on GEnie.
- The only changes we have made to any of this text is the format
- and spelling errors. An additional note, I just finished
- reading the book. It is interesting and I encourage all BBS
- operators to purchase it. If you are interested contact: LLM
- PRESS, 150 Broadway (Suite 607), New York, NY 10038. (212)
- 766-3785)
-
- FORMAL CONFERENCE
-
- <[Holly] HS> Welcome to our formal conference with Jonathon
- Wallace,
-
- <JON.WALLACE> Thanks very much for inviting me....
-
- <[Holly] HS> Can you tell us a little about yourself and your
- book before we start?
-
- <JON.WALLACE> I am a lawyer in private practice in New York City
- specializing in computer related matters including BBS law. I
- am the co-author with Rees Morrison, of SYSLAW: The Sysop's
- Legal Manual, and editor of The Computer Law Letter, a bimonthly
- newsletter.
-
- <[Mel] NIGHTDIVER> Jon, would you talk a bit about where free
- speech stops and libel begins. We obviously want to be able to
- criticize a product freely but I guess we have to stop at
- calling the developer names or spreading rumors that he is going
- bankrupt. Where does libel start? and what is the sysops
- liability for allowing such messages to stand?
-
- <JON.WALLACE> Libel varies from state to state. In many places
- its a knowingly false statement. In others it may even be a
- negligently false statement. The responsibility of a sysop is,
- in my opinion about equivalent to the liability of a newspaper
- publisher for a comment someone else makes in his paper.
- Constitutional law says that a public figure can only recover
- against a newspaper for a libel done with "actual malice".
-
-
- <[Mel] NIGHTDIVER> For our purposes who would you say is a
- public figure a developer pushing his product? A publisher of
- an online magazine? The sysop?
-
- <JON.WALLACE> There is no precise definition. Any of those
- might be held to be a public figure, as would your town
- councilman, but not your next door neighbor.
-
- <[Mel] NIGHTDIVER> I've heard the sysop's liability in libel
- compared to a news stand's liability but that boggles my mind
- because I never heard of a newsstand claiming a compilation
- copyright. Would you comment on the sysop's position?
-
- <JON.WALLACE> Ever since there have been BBS's, people have
- debated whether a sysop is a publisher, a newsstand, a common
- carrier, a bartender, etc. A sysop is NOT a common carrier
- (obligated to carry all messages, can't control content) Nor is
- a sysop a newsstand (too passive). I think a sysop is
- essentially a sort of publisher. She has the right to edit and
- control the contents of the BBS.
-
- <DAVESMALL> I've got a few questions, but I'll try not to hog
- things for others. Awhile ago, I ran into a particularly nasty
- "anarchy" BBS in New York. It offered files on everything from
- literally how to poison people to "kitchen improvised plastic
- explosives". Is offering info like this legal? Is there any
- legal precedent?
-
- <JON.WALLACE> Dave, the law says that "information doesn't kill
- people.. people kill people." However distasteful, describing
- how to make poisons is constitutionally protected speech.
-
- <[Ralph] ST.REPORT> Evening Counselor, nice to see that
- information is information and not murderous non-sense. My
- question is, what recourse, if any does an individual have when
- they find that certain information has been labeled "overly
- informative" and has been censored as a result?
-
- <JON.WALLACE> Ralph, if you mean censored by the sysop the user
- really has no recourse. As I said, a sysop has the right to
- edit, modify and delete the BBS's contents.
-
- <[Ralph] ST.REPORT> I see, well a sysop was not the cause in
- this situation....in fact the sysop was quite fair about the
- entire matter... much more so than the individual.....I mean as
- individual to individual.
-
- <JON.WALLACE> Who censored the message, then?
-
- <[Ralph] ST.REPORT> The message was deleted as a result of the
- ensuing hulabaloo <-? voluntarily by me.
-
- <JON.WALLACE> Ralph---The sysop is the final arbiter in such
- cases. It is only censorship when the government intervenes to
- prevent speech.
-
- <[Ralph] ST.REPORT> I agree, in effect I censored myself to
- avoid more controversy, I was looking for your opinion and I
- thank you for your time.
-
- <BOB.PUFF> Yes I was wondering if you could comment on
- self-maintaining BBSs that automatically validate uploaded
- files. Is this illegal in itself, or could the sysop be in
- trouble if a copyrighted file is up for a bit of time till he
- realizes it?
-
- <JON.WALLACE> Bob, there are no precise rules in this area yet.
- My best guess is that the sysop has an obligation to exercise
- due care. For that reason I would try and set things up so that
- a pirated file would be discovered in under a couple of days.
- Therefore, the idea of a self-validating BBS makes me nervous.
-
- <BOB.PUFF> I see. right - but its that couple of days that the
- file might be up. ok something to think about. thanks.
-
- <WP.DAVE> Jon, do you consider your SYSLAW book to apply much to
- information service sysops, or is it 95% for the private BBS
- operator?
-
- <JON.WALLACE> The book was written for the BBS sysop, but much
- of what's in it applies equally to service sysops...e.g., the
- discussion of copyright, libel, etc.
-
- <DAVESMALL> Hi again. As I understand it, the libel law says
- (basically) that to commit libel, you have to say something
- false, know it's false, and do it with malice intended. First,
- am I right? (*grin*) Second, does that apply different to public
- figures vs. mere mortals?
-
- <JON.WALLACE> Dave, the rules you stated are correct for a media
- defendant (newspaper, etc.) libelling a public figure. If the
- "libeller" is a private citizen, the states are free to hold you
- to a mere negligence standard.
-
- <DAVESMALL> Can you expand on "negligence"?
-
- <JON.WALLACE> Yes a careless false statement, e.g. something you
- didn't bother to verify.
-
- <CRAIG.S.THOM> Along the lines of the self-validating
- files...what if users upload copyrighted text into the message
- bases? Song lyrics, documentation, that type of thing?
- Messages are never held for validation.
-
- <JON.WALLACE> I believe a sysop should arrange to read every new
- message every 24 hours or so. If its a big message base, get
- some assistant sysops to help. Of course, copyrighted text may
- not be easy to recognize, but if you do recognize copyrighted
- material it should be deleted unless its a fair use (e.g., brief
- quote from a book or song, etc.)
-
- <[John] JWEAVERJR> Can you comment on the differences between
- the legal standards for libel and slander? And, in particular,
- which category does this RTC (as a "printed record" of a live
- conversation) fall?
-
- <JON.WALLACE> Slander is spoken libel is written I am fairly
- sure that all online speech will be classified as libel, not
- slander. Frankly, I am more familiar with the libel standards,
- which we have been discussing than with slander, where they
- differ.
-
- <DAVESMALL> I did come in a bit late, if this has already been
- answered; where might I find your book, and what's it retail at?
-
- <JON.WALLACE> The book is $19 plus $2 p&h from LLM Press 150
- Broadway, Suite 610, NY NY 10038.
-
- <DAVESMALL> Okay back to libel. Are editors of magazines in
- general held responsible for the content of their magazine, or
- is the writer of a given article deemed libellous that's held
- responsible? Or both?
-
- <JON.WALLACE> Potentially both.
-
- <DAVESMALL> The standards would depend on if the libeller
- (sounds like a referee! grin) was a public figure or private
- person, also? e.g., negligence vs. malice?
-
- <JON.WALLACE> The US Constitution imposes the standards we
- discussed for media defendants, and leaves the states free to
- make their own laws in all other cases.
-
- <DAVESMALL> Since networks are interstate, which states' laws
- applies?
-
- <JON.WALLACE> Dave, thats something the courts will have to
- settle. Magazines have been successfully sued in states where
- they sold only a few copies.
-
- <[Mel] NIGHTDIVER> I understand there have been some cases
- regarding private messages in a BB as opposed to public
- messages. Does that mean that if someone sends me Email here on
- GEnie and I forward it to someone else, that I could be in
- trouble?
-
- <JON.WALLACE> Mel, we are getting into a whole new area here.
- The Electronic Communications Privacy Act (ECPA) which protects
- the privacy of email. In the case you described. There would
- be no liability under ECPA, because the recipient of the message
- has the right to make it public.
-
- <[Holly] HS> I have a related question, Jonathon...are you
- familiar with Thompson v. Predaina? (The case that never was...
- *grin*)
-
- <JON.WALLACE> Yes, I read the pleadings, and have talked to and
- been flamed by, Linda Thompson <grin>.
-
- <[Holly] HS> Can you summarize the case a bit for the rest of us
- and give us your opinion? (I happen to personally know both
- parties... Linda was a friend of mine. Bob is a friend of mine.
- Key word: "was") Everyone's been flamed by Linda Thompson.
- *grin* Linda sued Bob under the ECPA claiming that he had
- disclosed private messages and files of hers to the public. He
- was not the recipient of the files or messages and, if the facts
- as stated in the complaint are true, it seems as if there was a
- technical ECPA violation. The case never went any further
- because (I am told). Predaina declared bankruptcy (since you
- know him, you can clarify if this turns out not to be the case).
-
- <[Holly] HS> Bob did declare bankruptcy, which was a wise move.
- I didn't read the complaint, however, I also know that when
- Linda (and Al) had a BBS, they were "guilty" of exactly what I
- understood Bob did. (Allegedly)
-
- <JON.WALLACE> I've often thought it was a too drastic move on
- his part. Based on the information I had, I doubted the case
- would have resulted in drastic damages, even if there was a
- technical violation.
-
- The moral of the story: Don't disclose private mail of which you
- are not the sender or recipient.
-
- <[Holly] HS> I think it was very precautionary on Bob's part.
- And, if I understand what happened, the case was dropped because
- Linda was suing partially on the grounds of character defamation
- which allowed Bob to dredge up some of Linda's rather tawdry
- past, allegedly. (I don't think I'm spelling that right. It
- looks wrong. :-) Thanks, Jonathon... I have a few more for
- later... :-)
-
- <DEB> Hi Jon, this is deb! Christensen, I take care of the
- Commodore and Amiga areas here on GEnie. My question is an
- unresolved one about copyrights and music. Are there any 'fair
- use' guidelines which affect musical arrangements to computer
- transcriptions which people upload and distribute for their
- electronic friends?
-
- <JON.WALLACE> Deb....The upload of a copyrighted song or image
- in electronic form is a copyright violation. I have never yet
- heard of a case of a court finding such an upload to be a "fair
- use" mainly because courts haven't really yet dealt with the
- issue of uploads at all. However, I think the argument for a
- fair use is slim, considering that the standards of fair use
- include whether the use....is commercial, and how much of the
- work is copied. An upload to a commercial service of an entire
- song or image, for download by people paying connect charges,
- seems like a pretty clear copyright infringement.
-
- <DEB> So, a musician does not have a right to arrange music and
- perform it for his friends? Is it the uploading that is a
- violation or the computer arrangement for the performance?
-
- <JON.WALLACE> A private performance is not a copyright violation
- but there is nothing private about an upload to a commercial
- service with more than 100,000 users.
-
- <DEB> And to a public BBS?
-
- <JON.WALLACE> Public BBS: I would say its the same thing, even
- though not quite as commercial.
-
- <DEB> Aha, so it isn't anything to do with cost involved. It is
- the actual transcription which is the problem? I *know*
- digitized music is a problem but had always presumed we had the
- same right to make an arrangement on a computer as we did on
- paper. :-(
-
- <JON.WALLACE> Deb, I would say you do have the same right to
- make an arrangement, just not to distribute it to other people.
-
- <BOB.PUFF> What are the legalities of telephone companies
- charging business rates for BBS telephone lines? I understand
- they have either proposed it, or tried it in some places. Your
- comments?
-
- <JON.WALLACE> It has happened a lot, but I understand in several
- places concerted efforts to communicate with the telco got them
- to back down. Not aware if anyone ever mounted a legal
- challenge, though.
-
- <BOB.PUFF> I see. I don't see how a bbs constitutes the charge,
- but I guess there is a large grey area there.
-
- <JON.WALLACE> The telco's argument was that the BBS was
- providing a quasi-commercial service. If you look at any BBS
- list, you will see a proportion of company sponsored BBS's that
- confuse the issue.
-
- <DOUG.W> Jon, earlier you stated that the recipient of EMail was
- free to distribute that mail. Is there any way to ensure
- privacy in EMail? Would a Copyright notice on each message
- prevent further distribution?
-
- <JON.WALLACE> I assume you are asking if there is a way to keep
- the recipient of a message from making it public.
-
- <DOUG.W> Yes.
-
- <JON.WALLACE> The answer is not really. Putting a copyright
- notice on might give many people pause, but suppose someone
- violated that copyright, what are the damages?
-
- <DAVESMALL> Got two for you. First, with BBS's and networks
- being so (relatively) new, are there a large number of libel
- cases of stuff going over the nets, as opposed to say magazine
- cases? E.g., is it a growing practice? *grin*
-
- <JON.WALLACE> I am only aware of one case of online libel, the
- one discussed in my book, the Dun & Bradstreet case (and I guess
- Thompson v. Predaina also included that element).
-
- <DAVESMALL> Second, do you find that judges and juries in such
- cases (jury assuming a jury trial, of course) have a great deal
- of "learning curve" to go through about networks? Most people I
- know outside computers don't know a genie from a compuserve from
- a hole in the wall. they can't imagine what the BBS world is
- like. Does this make such a case tougher/easier on an attorney?
-
- <JON.WALLACE> I frequently will try a computer case to the
- judge, waiving the jury demand less education to do but I
- wouldn't necessarily do that if I were the defendant in a libel
- case. Depends what part of the country you're in; in Manhattan,
- you could probably get a jury that knew what a modem was.
-
- <DAVESMALL> And if not, it would probably be prudent to try to
- educate one vs. six ? Fair enough.. okay I'm done
-
- <JON.WALLACE> It really depends on the circumstances..deciding
- when to go for a jury also has to do with how much you need, and
- can exploit, a sympathy factor.
-
- <[Holly] HS> I have one last question myself before we wrap
- up.... (which is not intended as a pun with regard to my
- question... *grin*) Shrink wrap licenses, are they enforceable?
- Legal?
-
- <JON.WALLACE> There has been some disagreement on this but my
- personal opinion is that the average shrink wrap license would
- not stand up. It was never negotiated, never really agreed to
- and can't convert what is obviously a sale into something else
- any more than calling a car a plane will change it into one.
-
- <[Holly] HS> However, if it is visible before the buyer actually
- buys then can a presumption be made that they have read and
- agreed?
-
- <JON.WALLACE> There are still other problems. The buyer hasn't
- dealt with the publisher, but with a retailer. There is no
- "privity" of contract.
-
- <[Holly] HS> "privity" meaning... ?
-
- <JON.WALLACE> No direct contractual relationship between
- publisher and purchaser, despite the fiction that the license
- purpotts to create.
-
- <[Holly] HS> Then a company who insists that this disk and this
- software still belongs to them, you don't feel it is
- enforceable?
-
- <JON.WALLACE> It would depend on the circumstances, but if you
- buy an off the shelf product at Software to Go, in my opinion,
- you have purchased the copy even if there is a shrink wrap
- license that says you have only licensed it.
-
- <[Holly] HS> Interesting... another point of licensing... have
- you read the Apple licensing agreement?
-
- <JON.WALLACE> I read it some time ago, when the case started.
-
- <[Holly] HS> It states that Mac ROMs can only be used in an
- Apple machine. Although there is contention that the ROMs are
- the heart of the machine, so whether they goest, so goest the
- machine.
-
- <JON.WALLACE> Sorry, I thought you meant the Apple/Microsoft
- license.
-
- <[Holly] HS> For those of us who use an emulator, like Spectre
- or Magic Sac, it could be an important point.
-
- <JON.WALLACE> The question is a very tricky one. On the whole,
- it would be....difficult to prevent a legitimate purchaser of a
- ROM from doing anything he wanted with it, including sticking it
- in another machine. But I haven't seen the license you refer
- to.
-
- ========================================================================
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