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Spam King Sentenced to 4 Years in the Slammer

Paul Lilly — Tue, 24 Nov 2009 13:55:07 -0600

The feds have dethroned another "spam king," who, like the ones before him, will spend a little bit of time behind bars. Alan Ralsky, 63, pleaded guilty to commit wire fraud, mail fraud, and to violating the federal CAN-SPAM Act.

What landed Ralsky in hot water was allegedly sending out unsolicited email to jack up the price of penny stock in Chinese companies to artificially high prices, and then selling it. Ralksy's Internet stock scheme netted him $2.7 million, as well as the attention of the feds and ultimately a 4-year prison sentence.

"With today's sentence of the self-proclaimed 'Godfather of Spam,' Alan Ralsky, and three others who played central roles in a complicated stock spam pump and dump scheme, the court has made it clear that advancing fraud through abuse of the Internet will lead to several years in prison," said U.S. Attorney Terrence Berg. "I commend the FBI, the Postal Inspection Service, and the IRS Criminal Investigative Division for their determined and careful investigation in this case which led to today's result."

Ralsky, who pleaded guilty back in June of this year, may have gotten off a little light, as he faced up to 7 years in prison.

Man Arrested for Failing to Tweet

Paul Lilly — Mon, 23 Nov 2009 14:30:18 -0600

We know exactly how popular Twitter has grown, but never did we consider that anyone could be arrested for not using the microblogging service. Apparently that's a real possibility, as teenager singer Justin Bieber and his entourage found out.

Bieber was supposed to appear at the Roosevelt Field mall on Friday, but decided to keep his distance because the crowd was getting a bit too rowdy. When the police showed up, they asked James A. Roppo, a record label exec, to help clear out the crowd by sending a Twitter message, and then arrested him after claiming he didn't cooperate, Newsday reports.

"We asked for his help in getting the crowd to go away by sending out a Twitter message," said Kevin Smith, Nassau County Police Det. Lt. "By not cooperating with us we feel he put lives in danger and the public at risk."

In a radio interview, Bieber said the scene was "so crazy" that he couldn't make his way into the building, adding that the authorities had threatened to put in him handcuffs and haul him off to jail.

Roppo could face charges that include criminal nuisance, endangering the welfare of a minor, and obstructing government administration, Smith said.

Image Credit: thenextweb.com

Angry Xbox Modders Join Together in Class Action Lawsuit

Paul Lilly — Fri, 20 Nov 2009 10:45:44 -0600

Up to 1 million Xbox modders were pretty pissed to find that they had been banned from Xbox Live following the release of Call of Duty: Modern Warfare 2, the biggest launch in entertainment history. The mass ban was intended to prevent pirated copies of the highly anticipated game from spreading, a notion Microsoft will now have to defend in a class action lawsuit filed against the company.

"Although modification of Xbox consoles is arguably against he terms of use for Xbox/Xbox Live, Microsoft 'conveniently' timed the Xbox console ban to coincide with the release of the new Call of Duty: Modern Warfar 2 game and less than two months after the release of the very popular Halo 3: ODST game," says AbingtonIP, the Texas-based law firm who filed th suit.

According to the lawsuit, the timing of Microsoft's widespread ban may have resulted in more Xbox Live subscription sales than if the bans had taken place before the release of Halo 3: ODST and CoDMW2. The lawsuit also claims that some of the bans locked out users who had modded their consoles for reasons other piracy.

Goodnight, Sweet Prince. The Pirate Bay Tracker Goes Offline

Paul Lilly — Tue, 17 Nov 2009 13:15:56 -0600

It's been a wild and crazy six year run for the The Pirate Bay, the world's most popular torrent tracking site, but by all accounts, it looks as though TPB's founders are finally ready to quit sailing through legal waters and have decided to bring the torrent tracker to port.

"Now that the decentralized system for finding peers is so well developed, TPB has decided that there is no need to run a tracker anymore, so it will remain down! It's the end of an era, but the era is no longer up2date. We have put a server in a museum already, and now the tracking can be put there as well," the ever-defiant Pirate Bay bandits wrote in a blog entry.

At its peak, TPB helped coordinate the downloads of more than 25 million peers, but it's no secret that many of those were illicit downloads for everything from pirated movies and television shows, to cracked videogames and closed-source operating systems, particularly Windows. Earlier this year, TPB's legal troubles culminated in a high profile court case in which a Swedish judge ultimately sentenced the torrent tracking site's four founders to a year in jail and ordered them to pay 30 million krono ($3.6 million) to a handful of entertainment companies.

But this might not be the last time Pirate Bay's founders make the headlines. According to TorrentFreak.com, the site's operators are talking with a handful of other BitTorrent site owners to encourage them to hang their hats on the torrent scene and instead switch to magent links and a decentralized system of handling tracking through Peer exchange (PEX).

"We're talking to the other torrent admins on doing magnet links and DHT+PEX for all sites. Moving away from torrents and trackers totally - like pick a date and all agree 'from this date, we'll not support torrents anymore," a Pirate Bay insider supposedly told TorrentFreak.

Shareholders Slap 3Com with Class Action Lawsuit

Paul Lilly — Tue, 17 Nov 2009 07:05:34 -0600

3Com's board of directors and the company's shareholders appear to be at odds over a proposed $2.7 billion merger agreement with HP that was announced last week. Displeased with the potential merger, the shareholders have filed a class action lawsuit in hopes of preventing the deal.

The complaint names the entire company's board of directors and accuses the defendants of attempting to deceive 3Com shareholders by agreeing to a deal that undermines the true value of their investment in the company, TechCrunch reports.

Under terms of the agreement, HP would pay stockholders of 3Com $7.90 per share, but the bankruptcy lawyer who filed the case on behalf of the plaintiffs argues that 3Com's directors should have insisted on a higher price.

Mac Clone Maker Crushed in Court

Paul Lilly — Mon, 16 Nov 2009 07:30:32 -0600

Apple didn't just win its case against Psystar, it demolished the "open computer" vendor whose Mac clones triggered a legal battle over whether or not the hackintoshes violated Mac OS X's EULA. According to Judge William Alsup, it most certainly does. In fact, the judge ruled in Apple's favor on every count brought to the court's attention, although the biggest focus was on copyright.

"Psystar's use of Mac OS X has been in excess and has violated Apple's copyrights," the judge wrote at one point in his 16-page order.

According to Groklaw, there are still issues that remain for trial, including allegations of breach of contract, induced breach of contract, trademark infringement, trademark dilution, trade dress infringement, and state unfair competition under California Business and Professions. In other words, the best case scenario for Psystar at this point is that it will be held liable for damages on Apple's copyright claims, but with its primary defense now seemingly dismantled, the company appears to be in a world of hurt. Or as Groklaw puts it, "Psystar is toast."

Get all the gory details here.

How Does the Intel, AMD Settlement Affect the IT Industry?

Paul Lilly — Fri, 13 Nov 2009 07:14:07 -0600

There are a lot of winners in the $1.25 billion settlement between Intel and AMD. The most obvious one is AMD, who can use the money to pay off debt and put this longstanding legal dispute behind them. As part of the settlement, AMD also benefits from a new five-year cross licensing agreement.

In some respects, Intel can also be considered a winner, in that the chip maker could have ended up paying much more than $1.25 billion had this lawsuit gone the distance. And like AMD, Intel can put this episode behind them. And with both Intel and AMD no longer distracted by a costly court case, the two chip makers can put their full attention towards R&D.

"It's really good for the industry in general," said Roger Kay, an analyst with Endpoint Technologies Associates. "Both companies had devoted a lot of top management to the fight. It's pretty distracting. You really want top executives concentrating on the business at hand."

OEMs like HP and Dell also come out ahead by being able to choose whichever processors and platforms they want, rather than which ones they're being told to use. And that's good for consumers, too.

It's not often that a bitter legal dispute ends up having so many winners, but that's certainly the case here.

Image Credit: wallpaper-s.org

Facebook Status Update Gets Charges Against Man Dropped

Paul Lilly — Thu, 12 Nov 2009 13:30:35 -0600

Ten years ago, the phrase "Where's my pancakes" wouldn't be nearly enough to get a robbery suspect off the hook. Even 6 years ago it wouldn't have worked. But that's only because Facebook was no where to be see. What are we talking about?

Rodney Bradford, a 19-year-old resident of the Farragut Houses, was arrested on October 18th for a robbery that took place the day before. His alibi? A status update on Facebook on October 17, at 11:49AM, from a computer in his father's apartment in Harlem, asking about his pancakes.

"This is the first case that I'm aware of in which a Facebook update has been used as alibi evidence," said John Browning, a lawyer and member of the Dallas Bar Association who studies social networking and the law. "We are going to see more of that because of how prevalent social networking has become."

The charges against Bradford where dropped when Facebook verified that the update, which occurred during the time of the robbery, originated from his dad's PC. Of course, this begs the question of how anyone can be sure that it was Bradford who typed message, and not someone else.

"This implies a level of criminal genius that you would not expect from a young boy like this; he is not Dr. Evil," said defense lawyer Robert Reuland, adding that the Facebook entry was just "icing on the cake" since Bradford had other alibis.

But what about in other cases? With Facebook for the first time being used as an alibi, we wouldn't be surprised to see this type of defense being employed more often, including by those who really are guilty.

Where do you see this headed? Post your thoughts in the comments section below!