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THE GRIPE LINE: ED FOSTER                       http://www.infoworld.com
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Tuesday, November 16, 2004

LATEST WEBLOG ENTRIES
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* Censorship Picture Comes Into Sharper Image
* Bank Transfers Kick in When PayPal Limit Reached
* Technology-Constraining Patents/Intellectual Property

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CENSORSHIP PICTURE COMES INTO SHARPER IMAGE
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Posted November 16, 1:33 AM PST Pacific Time

Be it a database server or an air purifier, do you have the legal right
to publicly criticize a product you've purchased? The good news is, yes,
you apparently still do. The bad news is that we can't be sure for how
much longer.


We owe the good news to Consumers Union's success (
http://newsletter.infoworld.com/t?ctl=9F7E6B:2B910B2 )
last week in getting a SLAPP (Strategic Lawsuits Against Public
Participation) lawsuit by Sharper Image thrown out of court. Sharper
Image had accused Consumers Union of product disparagement due to
reviews it published in Consumer Reports of the Ionic Breeze Quadra air
cleaner. Consumers Reports deemed the product "ineffective" and said it
produces "almost no measurable reduction in airborne particles." Sharper
Image argued that the reviews were flawed and unfair because Consumer
Reports failed to take into account how "vastly different" its
technology is from other air purifiers. Under California's anti-SLAPP
law, a federal judge ruled there was no reasonable probability of
Consumer Reports' statements being proved false and dismissed Sharper
Image's case. (For more background on the case and similar lawsuits
Consumers Union has had to fight off in the past, visit their
www.consumersrighttoknow.org ( 
http://newsletter.infoworld.com/t?ctl=9F7E67:2B910B2 )
website.)


Reading over Sharper Image's arguments, though, I was struck by how
similar what they were saying is to what we we've just been hearing from
those who defend censorship clauses in software license agreements. (For
a taste of the pros and cons on those, see the reader commentary on my
recent "Getting the Facts on Microsoft Benchmarks" story. (
http://newsletter.infoworld.com/t?ctl=9F7E5F:2B910B2 )) Like the
Microsofts and Oracles, Sharper Image was essentially claiming that only
they can judge how, where, and by whom their technology can be assessed.
Only we understand our technology, so anyone who criticizes our products
is unfairly disparaging us.


Now, as far as I know, Sharper Image doesn't have a EULA on its air
purifiers saying you have to get their permission to publish reviews or
benchmark performance results. And I don't know of any software
companies that do have such EULAs ever having gone so far as to actually
try to file a lawsuit against a customer for violating the censorship
clause. Still, I have to believe it's only a matter of time until we see
the combination -a SLAPP-type lawsuit based on violating a EULA
censorship clause. What I don't know is whether the first one will be
over middleware or a household item. More and more, SLAPP lawsuits are
standard operating procedure for any number of corporate giants that
care less about whether they win or lose the case than they do using
their legal muscle to harass critics however they can. And EULAs have
shown up on toner cartridges and woodworking tools, so why not air
purifiers?


The bad news is that such a lawsuit almost surely won't be filed against
Consumers Union or someone else with the ability to fight back. SLAPP
lawsuits and censorship are identical in the respect that they are at
their most effective in silencing those who don't have the legal means
to resist ...

For the full story:
http://newsletter.infoworld.com/t?ctl=9F7E62:2B910B2


BANK TRANSFERS KICK IN WHEN PAYPAL LIMIT REACHED
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Posted November 15, 8:53 AM PST Pacific Time

When I first wrote about PayPal's $2,000 spending limit (
http://newsletter.infoworld.com/t?ctl=9F7E5D:2B910B2 ), I must admit
I was a bit puzzled by the policy. Why would eBay's payment subsidiary
force long-time users to add bank account "verification" to their
accounts?  Unfortunately, the reasons are becoming all too clear as more
readers report what happens when their total PayPal credit card charges
reach $2,000.


"I've just experienced -- and become a victim of -- becoming a PayPal
Verified member," one reader wrote recently. "After dozens of PayPal
transactions now totaling their $2000 limit, my account was frozen with
two transactions pending. I had only one credit card account registered
with them, because I did not want to submit bank account information or
have one accessible for transactions."


To complete the pending transactions, the reader reluctantly provided
PayPal information for one of his bank accounts. "It seemed logical that
this would be limited to verifying my identity only," the reader wrote.
"But upon completing the two pending transactions, I later found that
PayPal attempted to draw money from this account. I had only a small
amount of money in the account for my protection against misuse. I had
no reason to believe my transaction would ...

For the full story:
http://newsletter.infoworld.com/t?ctl=9F7E60:2B910B2


TECHNOLOGY-CONSTRAINING PATENTS/INTELLECTUAL PROPERTY
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Posted November 13, 11:06 PM PST Pacific Time

If you're so old-fashioned as to think that TCP/IP stands for
Transmission Control Protocol/Internet Protocol, you might be a bit
irked by the title of this column. But, hey, that just shows you aren't
paying attention to what's going on. In the technology world these days,
IP stands for Intellectual Property, and the first and foremost protocol
on the Internet is to take out a patent on everything you do.


We've talked about dumb patents ( 
http://newsletter.infoworld.com/t?ctl=9F7E5E:2B910B2 ) before, but the examples 
just keep coming. For instance, last week a small company called ConnecTel 
announced ( http://newsletter.infoworld.com/t?ctl=9F7E5B:2B910B2 ) it is suing 
Cisco over alleged patent infringement of its intelligent routing technology. 
ConnecTel never actually released a product implementing its technology, which 
was originally developed to help deliver "faith-based inspirational faxes." 
After filing for the patent in 1996, the company says it subsequently offered a 
license to Cisco. Allegedly, Cisco declined the license but then incorporated 
the technology in many of its routers. Which is pretty remarkable when you 
consider the fact that Cisco already knew a thing or two about routers by 1996.


At least routers represent a form of technology that we can agree might
be patentable. Last week it was also learned that ...

For the full story:
http://newsletter.infoworld.com/t?ctl=9F7E61:2B910B2



Contact Ed Foster at [EMAIL PROTECTED] .

Ed Foster's "Reader Advocate" column,
http://newsletter.infoworld.com/t?ctl=9F7E63:2B910B2 , can be read exclusively
at his GripeLog Web site: http://newsletter.infoworld.com/t?ctl=9F7E6A:2B910B2


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