MARKET SCAMS

[SkeBallLarry]

An OT news story we all should watch...

Message board postings prompt successful legal challenge;
AOL may appeal.

Scarlet Pruitt, IDG News Service

Tuesday, November 05, 2002

The Virginia Supreme Court has ruled against America Online in its latest effort to protect the anonymity of one of its subscribers, in a case that could shape how free speech is perceived online.

The ruling against AOL came as part of a nearly two-year-old case filed by electronics design and manufacturing company Nam Tai Electronics, alleging that 51 unknown individuals had committed libel, trade libel, and violations of California's unfair business practices statutes by posting defamatory messages about the company's publicly traded stock on an Internet message board.

One of the message-posters was revealed to be an AOL subscriber, and Nam Tai acquired a subpoena requesting that the world's largest ISP hand over the person's identity.

AOL filed a motion to quash the subpoena, however, contending that the disclosure would "infringe upon the well-established First Amendment right to speak anonymously."
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The California court handling the case denied the motion, and AOL appealed the ruling to the Virginia Supreme Court.
The court's decision Friday to uphold the lower court's ruling is significant, in that the ISP's home state decided not to get involved in what could be a sticky free speech issue, experts say.

AOL is disappointed with the supreme court's decision, an AOL spokesperson said Tuesday.

"We feel very strongly that there are critical, important First Amendment issues at stake in this case," said Nicholas Graham, an AOL spokesperson.

David Sobel, general counsel at the Electronic Privacy Information Center (EPIC), said the Virginia Supreme Court had "punted on a very controversial issue" by upholding the California court's ruling.

If AOL is eventually forced to turn over the identity of its subscriber, Sobel said, the move could have a potential chilling effect in how users view free speech online.

AOL was given ten days to ask the Virginia Supreme Court to reconsider its opinion. If the request is denied, the case could be appealed to the U.S. Supreme Court.

The company is still "in the process of considering options," according to Graham.

The company has previously fought legal efforts to access members' personal information, and noted its promises in its privacy policies.



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