NETWORK WORLD NEWSLETTER: GIBBS & BRADNER
10/28/04

Dear [EMAIL PROTECTED],

In this issue:

* Net Insider columnist Scott Bradner finds the lack of 
��understandable localization of authority on the Internet 
��troubling
* Links related to Gibbs & Bradner
* Featured reader resource
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Today's focus:  Knitting legal patchwork quilts

By Scott Bradner

One of the most difficult features to deal with on the Internet 
is the lack of any understandable localization of authority.

Once upon a time when a country or state within a country 
enacted a law regulating some aspect of human or corporate 
behavior, it was generally easy to figure out if the law applied 
to you. A Boston law against spitting on sidewalks or regulating 
the size of billboards could be safely ignored in Chicago. 
Chicago could have its own laws dealing with spitting or 
billboard size, and those laws would apply to people or 
businesses in Chicago. It's not so easy to similarly localize a 
law's area of application when the law applies to activity or 
content on the Internet.

With the Internet, a German law restricting the publication of 
Nazi propaganda or an Australian libel law can have effects in 
the U.S., as has been proven in the last few years. Within the 
U.S. we have been getting a spate of state laws that might or 
might not affect out-of-state companies providing services over 
the Internet or out-of-state Internet users.

California has been particularly good at passing such laws, but 
I wonder if California's aggressiveness will be rewarded by 
federal preemption.

I've already written about what has been referred to as the 
California Database Breach Disclosure Act. (See my column, 
<http://www.nwfusion.com/columnists/2004/0517bradner.html> and, 
for the text of the act, see 
<http://www.nwfusion.com/nlgibrad316> ) The act was passed two 
years ago and requires companies to tell customers about any 
break-ins. Until next Jan. 1 the only pain that the customer 
suffers is embarrassment.

After Jan. 1 the recipient of such a letter might be able to 
forward the disclosure letter to their lawyer who could start 
getting a lawsuit together.

California has just added teeth to the break-in disclosure act 
with a new law (see <http://www.nwfusion.com/nlgibrad769> ) 
approved by the governor last month that requires companies with 
unencrypted data described in the law to "implement and maintain 
reasonable security procedures and practices" to protect the 
data. The new law does not block private lawsuits, so you can 
expect that many disclosures will result in lawsuits - maybe you 
better figure out how to encrypt the data.

Another California law that went into effect on July 1 requires 
that Web sites that deal with individual consumers residing in 
California publish and abide by privacy statements (see 
<http://www.nwfusion.com/nlgibrad770> ). The law includes 
specific requirements about what the privacy statements have to 
include and how they have to be advertised on the Web site. This 
law also does not block private lawsuits.

Finally, another new law due to take effect on Jan. 1 requires 
any California company employing more than 20 people that 
collects a range of personal information about individuals to 
disclose, upon request, what information they share with which 
direct marketers ( <http://www.nwfusion.com/nlgibrad771> ). 
Depending on the definition of a "California company" this last 
bill might or might not affect companies outside of California, 
but because the law specifically permits awarding a penalty, I 
expect some lawyers will test the boundaries.

California is not alone. Other states are also passing these 
types of laws. The last time we had a lot of state-level laws 
being passed it was over spam. Bowing to business complaints of 
having to deal with a legal patchwork quilt, the U.S. Congress 
passed the permission-to-spam act ( 
<http://www.nwfusion.com/columnists/2004/0426bradner.html> ). I 
expect the same thing to happen with each new hot issue - 
Congress will pass legislation to preempt and gut the much 
stronger state initiatives.

Disclaimer: Harvard is not of one mind on legislation, the B 
school likes legislation that guts rules, the school of 
government likes any legislation, and the law school likes 
conflicting legislation, but I consulted none of them for this 
column.

Bradner is a consultant with Harvard University's University 
Information Systems. He can be reached at <mailto:[EMAIL PROTECTED]>.
_______________________________________________________________
To contact: Scott Bradner

Bradner is a consultant with Harvard University's University 
Information Systems. He can be reached at <mailto:[EMAIL PROTECTED]> 
_______________________________________________________________
This newsletter is sponsored by Nokia 
NW Special Report: Preparing an Infrastructure for Mobile 
Applications. 

Mobility, properly done, increases productivity and decreases 
operating costs. So get up to date information about building a 
mobile infrastructure, dealing with security issues, the latest 
networking options, connectivity alternatives and operational 
support enhancements.  
http://www.fattail.com/redir/redirect.asp?CID=85574
_______________________________________________________________
ARCHIVE LINKS

Gibbs archive:
http://www.nwfusion.com/columnists/gibbs.html

Bradner archive:
http://www.nwfusion.com/columnists/bradner.html
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