The Business Law Briefsm (March 20, 2003)

1. With All Eyes on Iraq....
   US Heightens Cybersecurity Monitoring: The US Department of Homeland Security increased its monitoring efforts to seek out cyberterrorists and hackers, and asked the public to report any unusual activities. As reported by washingtonpost.com (free subscription may be required) Airlines Cut Back Because of War: The airline industry, both in the US and abroad, already devastated by the weak economy and the aftermath of 9-11, suspended and eliminated flights, and warned employees to expect emergency cutbacks of wages. Online Sources on Status of War: List of web sites offering information about Iraq, terrorism, military news and more, created by Technology Systems Editor for the Pittsburgh Post-Gazette. Blog from Iraq with photos, news by CNN journalist. Librarian's Index to the Internet (lii.org's) War and Peace links; and see PoynnterOnline's site, including reports from embedded journalists.
2. Net Tax I: Massachusetts Passes Net Sales Tax Law.
   Massachusetts has joined that list of states approving net sales tax legislation based upon the Streamlined Sales Tax Project entered into by more than 38 states, to be able to collect sales tax on internet sales.
3. Net Tax II: Study Casts Doubt on Amount To Be Recovered by Net Sales Tax.
   An often quoted study by two University of Tennessee professors has projected that $45 billion would be collected in sales tax on internet sales by the year 2006 if net sales tax were instituted. Now, a study conducted by the Direct Marketing Association reports the amount of uncollected taxes on e-commerce would be only $3.2 billion by 2006, far lower than the $45 billion projected. The Direct Marketing Association report comes as at least 38 states are taking steps to simplify their sales tax systems in the hope that Congress will make tax collection mandatory on all Internet sales.The Direct Marketing Association represents catalog retailers, who are subject to the same rules as online retailers. As reported by washingtonpost.com
4. US Supreme Court: "Victor's Little Secret" Did Not Dilute Trademark "Victoria's Secret."
   In a surprise unanimous ruling, the US Supreme Court has ruled that the women's lingerie clothier, Victoria's Secret, did not prove dilution of its well-known trademark by "Victor's Little Secret," an adult shop. Writing for the Court, Justice John Paul Stevens said the Federal Trademark Dilution Act of 1995 required Victoria's Secret to show "actual dilution," not the mere likelihood of harm. Stevens also said that mere "mental association" in the mind of consumers between two marks did not amount to dilution. But the Court also said trademark holders do not have to go so far as to prove they actually lost sales or profit. Coverage at news.com. Case: Moseley v. V Secret Catalogue Inc, No. 01-1015, USSC, March 4, 2003.
5. Georgia Supreme Court Bars Lawyer Occupational Tax.
   By unanimous decision, the Georgia Supreme Court has ruled that the city of Atlanta's $400 annual occupational tax charged upon attorneys is a precondition to the practice of law, and therefore unconstitutional. The tax was required to be paid before the beginning of the new year if the attorney wanted to practice law, and those who did not pay the tax were subject to being jailed. A major problem for the city is that the tax has been collected since 1996, at the rate of about $2 million per year, and that all of the money must be returned, causing further budget difficulty in the face of already diminished revenues. In its decision, the Court pointed out that Atlanta had ignored the rulings in a 1997 case striking down a similar occupational tax passed by the city of Jonesboro, Georgia. As reported in law.com Cases at City of Atlanta v. Barnes, No. S02A1338 and City of Atlanta v. Salo, No. S02A1478 (Sup. Ct. Ga. March 10, 2003). (Note: Click on the hyperlink for March 10, 2003.
6. Clickwrap Agreement Enforceable Even Though User Did Not Read Agreement.
   The terms of a clickwrap agreement are enforceable in spite of the protests of the user that he did not read the agreement, the US District Court for the Northern District of Illinois has ruled. DeJohn v. TV Corporation International, N.D. Ill., No. 02 C 4497, 1/16/03). As reported by BNA's Electronic & Commerce Law Report
7. Delay in Bringing Harassment Suit Not Fatal if Based on Fear of Job Loss.
   An employee's failure to report alleged sexual harassment by her supervisor because she feared loss of her job was not fatal to her cause of action under Title VII, a federal district judge has ruled. The case raises several legal questions about the Farragut/Ellereth affirmative defenses which can be asserted by accused employers, who can show that they instituted policies and programs to deal with sexual harassment, but that the employee failed to take advantage of such programs. As reported by law.com
8. Does Lie By One Lawyer on Firm Malpractice Insurance Policy Void Coverage for All?
   The New Jersey Supreme Court will be answering this question: Should one lawyer's lie on the firm's malpractice insurance application leave the entire firm without coverage? If the answer is yes, expect insurers to revoke or rescind any policy they believe has been issued based upon material misrepresentations, leaving injured clients of bankrupt firms without a remedy. If the answer is no, lawyers may breathe easier, but insurers are sure to call foul. As reported by law.com
9. Internet Messaging (IM) Chat: "ianalb fwiw this ts."
   As we recently reported, internet messaging (IM) is coming to the corporate workplace. But as IM, popular with frequent internet users, has developed a language all its own, you may need this new www.techdictionary.com/chat.html Don't forget, however, that IM communications may be monitored. As for the message above, it means, "I am not a lawyer, but for what it's worth, this totally stinks."
10. Keep Your PC Safe.
    PC World offers advice on how to keep your PC safe from viruses, worms and spyware. It provides a run-down of the most important Windows security fixes and other necessary patches. Unlike other articles on PC security, this one links directly to the patches. With thanks to Genie Tyburski's Virtual Chase, www.virtualchase.com
    

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