Course Description

This course is a broad survey of the rapidly emerging field of eCommerce law.  It is not a law school course and does not attempt to teach legal advocacy or other forensic skills.  Its goal is to familiarize the student with legal issues in a wide variety of eCommerce topics.

Instructor

Michael I. Shamos is Distinguished Career Professor in the School of Computer Science at CMU, Director of the Universal Library and Co-Director of the Master of Science in Electronic Commerce degree program, a joint venture of the School of Computer Science and the Tepper School of Business.  He is a member of the Pennsylvania Bar and the Bar of the United States Patent and Trademark Office.

Office: 4515 Newell Simon Hall. Telephone: 412-268-8193.

Email: shamos@cs.cmu.edu

Mondays and Thursdays, 10:30 - 12:20.  Location for all classes except Monday, May 17: Posner 146, Tepper School of Business

Hiller & Cohen, Internet Law and Policy.  Prentice Hall (2002).  ISBN 0130334286 (Hardcover).  Check BestBookBuys.com.  Get a used copy.  The price for new copies is insane but the words in used copies are the same as those in new ones.  The course will follow the book fairly closely.

For intellectual property topics we will be using the brand-new book Legal Protection of Digital Information, by Lee Hollaar of the University of Utah.  This is fortunately available in an on-line edition at http://digital-law-online.info/.

Everyone can benefit from reading the U.S. Constitution regularly.  There's a lot more in there than you remember.

Readings

Assigned readings for a particular lecture are to be completed before the corresponding lecture.

The textbook does not contain complete opinions for the court cases it discusses.  To the extent possible, the full text of cases cited in the book and discussed in class will be available through links on this page.

Course Format

12 lectures, readings, two homeworks, final exam. The basis for the course is the lectures. The reading assignments provide important background information. You should also make frequent reference to the LIST OF LINKS, which contains numerous links for every topic in the course.  All homework assignments will be linked to this web page and thus can be obtained on-line.  Paper copies will not be handed out in class.

Grading

There are two homeworks and a final.  The homeworks and the final each count for 30% of the final grade. Class participation counts for 10% of the final grade.  There will be no midterm examination.

Submitting Work

All homeworks and the exam must be submitted electronically by emailing them as Microsoft Word attachments to shamos@cs.cmu.edu.  Handwritten work is not acceptable.

The MSEC program encourages teamwork.  However, we must evaluate each student's progress individually.  Therefore, you may work together on homework assignments provided that (1) each person's written submission is his or hers alone; and (2) you identify on the homework each person with whom you worked in connection with that assignment.  For example, you may work in pairs or groups to research, discuss and debate the homework, but then each person must go off and write their own paper.   Violations of these rules will be dealt with harshly to the fullest extent of University policy.

Feedback

If you are having any problems with this course or the MSEC program in general, please see the instructor during after class, during office hours or make an appointment. We are all committed to a successful program. If problems are not addressed quickly you may find the course at an end before any remedial action can be taken.

Detailed Syllabus

Lecture 1 - LEGAL ISSUES IN ELECTRONIC COMMERCE (Monday, May 17, 2004.  NOTE: CLASS MEETS IN MELLON AUDITORIUM) – Judicial systems of the United States and the world.  Courts and parties.  Judgments and enforcement.  Regulatory powers.  View SLIDES.

Readings: Hiller Chapter 1.
Cases: National A-1 Advertising, Inc. v. Network Solutions, Inc.
American Library Association v. Pataki
Zippo Mfg. Co. v. Zippo Dot Com
People v. Bugaiski
New York Times, Inc. v. Tasini

Lecture 2 - JURISDICTION (Thursday, May 20, 2004) – The central issue in ecommerce law: when and over whom may a court exercise its powers?  Jurisdiction and territoriality.  Constitutional questions.  International jurisdiction: iCraveTV, the Yahoo! Nazi memorabilia case.  Homework 1 available.  View SLIDES.

Readings: Hiller Chapter 2.
Links: A Webliography on the Yahoo! case, by Daniel Arthur Lapres
Cases: Maritz, Inc. v. Cybergold, Inc.
Intercon, Inc. v. Bell Atlantic Internet Solutions, Inc.
Williams v. America Online, Inc.
Butler v. Beer Across America, Inc.
U.S. v. Thomas
Soma Medical International v. Standard Chartered Bank'
Yahoo!, Inc. v. LICRA
AT&T Corp. v. City of Portland
Bernstein v. U.S Dept. of Justice

Lecture 3 - ELECTRONIC SPEECH (Monday, May 24, 2004) – The First Amendment.  Internet censorship.  Defamation, commentary, criticism.  Computer programs as speech.  View SLIDES.

Readings: Hiller Chapter 3.

Cases: Reno v. ACLU
ACLU v. Ashcroft
Zeran v. America Online, Inc.
Bally Total Fitness Holding Corp. v. Faber
Junger v. Daley
Universal City Studios v. Reimerdes

NO CLASS THURSDAY, MAY 27

NO CLASS MONDAY, MAY 31, MEMORIAL DAY HOLIDAY

Readings: Hiller pages 74-102.
Statutes: Privacy Act of 1974, 5 U.S.C. 552a
Electronic Communications Privacy Act
Children's Online Privacy Protection Act of 1998
EU Data Protection Directive
Personal Information and Electronic Documents Act (Canada)
Financial Services Modernization Act (Gramm-Leach-Bliley) 15 U.S.C. 6801-6809 (Disclosure of Nonpublic Personal Information); 15 U.S.C. 6821-6827 (Fraudulent Access to Financial Information)
Health Insurance Portability and Accountability Act (HIPAA)
Workplace Privacy -- An Oxymoron, by Stephen D. Lichtenstein
Cases: Reno v. Condon
U.S. West Inc. v. FCC
Smyth v. Pillsbury Co.
McLaren v. Microsoft

NO CLASS THURSDAY, JUNE 3

Lecture 5 - COPYRIGHT I (Monday, June 7, 2004) – The nature of copyright. Infringement.  Remedies and enforcement. Fair use, public performance, compulsory licensing.  Tasini v. New York Times. View SLIDES.

Readings: Hiller pages 103-114.  Hollaar --  scan all of Ch. 1.  Click here to start, but you will have to follow subsequent links.
Cases: New York Times, Inc. v. Tasini

Lecture 6 - COPYRIGHT II (NOTE: Tuesday, June 8, 2004) – The Digital Millennium Copyright Act (DMCA).  Universal Studios v. Reimerdes.  Pollstar and Napster cases.  Copy protection devices, digital watermarking. MP3, video. Liability of ISPs.  View SLIDES.

Readings: Hiller pages 115-128.  Hollaar -- scan all of Chapters 2 and 3.
Cases: A&M Records, Inc. v. Napster, Inc.  Appeal.  Second appeal.
UMG Recordings, Inc. v. MP3.com, Inc.
Pollstar, Inc. v. Gigmania
Kelly v. Arriba Soft Corp.  Appeal.
Universal City Studios et al. v. Reimerdes.  Appeal.

Lecture 7 - INTERNET PATENTS (Thursday, June 10, 2004) – The nature of patent protection.   Business method patents.  Amazon.com v. Barnesandnoble.com (1Click).  Current cases.  Policy questions and international protection.  Homework 1 returned.  Homework 2 available. View SLIDES.

Readings: Hiller pages 129-133. Hollaar -- scan Chapters 4 and 5.

Lecture 8 - TRADEMARKS AND CONSUMER PROTECTION (Monday, June 14, 2004) – The nature and role of trademarks. The domain name registration system and dispute resolution. Warehousing and speculation in trademarks, the Anticybersquatting Act.  Metatagging, deep linking, typopiracy.  Role of the Federal Trade Commission. Comparative advertising, deceptive practices, banner ads.  GUEST MATERIAL ON SPAM BY ROBBIN STEIF.  View SLIDES.

Readings: Hiller pages 135-150, Hiller Ch. 9. 

NO CLASS THURSDAY, JUNE 17

NO CLASS MONDAY, JUNE 21 BUT HOMEWORK 2 IS DUE

Lecture 9 - ELECTRONIC CONTRACTS (NOTE: Tuesday, June 22, 2004) –  GUEST LECTURE BY CMU GENERAL COUNSEL MARY JO DIVELY.  Uniform Electronic Transactions Act (UETA).  Uniform Computer Information Transactions Act (UCITA), eSign.  Clickwrap and browsewrap agreements. View SLIDES.

Readings: Hiller Chapter 8.

Lecture 10 - ELECTRONIC PAYMENTS (NOTE: Wednesday, June 23, 2004) – Electronic Funds Transfer Act.  Electronic negotiable instruments.  Treasury Regulation E, online banking.  View SLIDES.

Readings: Hiller Chapter 10.
Cases and Materials: Office of the Attorney General of North Carolina
Kashanchi v. Texas Commerce Medical Bank
Kvalheim v. Checkfree Corp.
Uniform Money Services Act
Electronic Fund Transfer Act
Federal Reserve Regulation E (Money Transfers)
Federal Reserve Regulation Z (Credit Cards)
Uniform Electronic Transactions Act UETA)
Electronic Signatures in Global and National Commerce Act (e-Sign)
UCC Article 4A (Funds Transfers)
EU Electronic Money Directive

Lecture 11 - TAXATION AND ANTITRUST (NOTE: Monday, June 28, 2004, Posner 153, 10:30-12:20) – Sales, use, income and value-added taxes. Interstate taxation principles: sales, software and services. The Quill and National Bellas Hess cases. Internet Tax Freedom Act. Bit tax.  Antitrust principles: combinations, market power. The Sherman and Clayton Acts. Per se violations, price-fixing, tying. Remedies. U.S. v. Microsoft.  View SLIDES.

Readings: Hiller Chapter 11.
Cases and Materials:
National Bellas Hess, Inc. v. Illinois Dep't of Revenue
Quill v. North Dakota
Overview of Value-Added Tax
Antitrust Statutes
Sherman Antitrust Act, 15 U.S.C. § 1
Clayton Antitrust Act, 15 U.S.C. § 12
Antitrust Enforcement and the Consumer (U.S. Justice Department)
U.S. v. Microsoft materials, document filings

Lecture 12 - CRIME (NOTE: Monday, June 28, 2004, Posner 153, 1:30-3:20) – Jurisdictional principles. Strict construction of criminal statutes. Computer Fraud and Abuse Act. Council of Europe Convention on Cybercrime.  View SLIDES. 

Readings: Hiller Chapter 7.
Cases and Materials:
Commonwealth v. Lund (Va. 1977)
Computer Fraud and Abuse Act, 18 U.S.C. § 1030
Pennsylvania Unlawful Use of Computer Statute, 18 Pa. C.S. § 3933
America Online, Inc. v. LCGM, Inc.
No Electronic Theft Act, 17 U.S.C. §506
People ex rel. Vacco v. World Interactive Gaming Corp.
California Cyberstalking Statute, Cal. Penal Code § 646.9
California Threatening eMail Statute, Cal. Penal Code. § 653m
Federal Antipornography Statute, 18 U.S.C. § 2252
Council of Europe Convention on Cybercrime