As anticipated, the Federal Communications Commission voted 3-2 along party lines yesterday to repeal the Obama administration’s net neutrality rules, which were originally introduced to help protect an open Internet. FCC chair Ajit Pai and two other Republicans backed the change. Net neutrality rules were created as a means of regulating how broadband providers treat Internet traffic in an effort to avoid slowing content delivery or providing fast lanes for specific services. Dismantling the rules is seen as a win for cable and wireless providers and will likely result in lawsuits. Continue reading FCC Votes 3-2 to Roll Back 2015 Net Neutrality Regulations

At the Securities and Exchange Commission, chairman Jay Clayton made it clear that there is “very little distinction” between Bitcoin and traditional stocks, suggesting that the SEC believes Bitcoin is subject to securities laws and is willing to act against alleged fraud in an ICO, or initial coin offering. In fact, the SEC new cyber unit did just that for the first time, charging Canada-based cryptocurrency company PlexCorps with violating security laws by selling up to $15 million in an ICO. Clayton said future suits are possible. Continue reading New SEC Cyber Unit Takes on Cryptocurrency and ICO Fraud

Federal Communications Commission chairman Ajit Pai has proposed to end net neutrality, which was put in place by the Obama administration. With the repeal of net neutrality, Internet service providers would be able to block access, slow down or speed up access to websites as well as charge more for high quality streaming. Pai’s intent to repeal net neutrality is seen as a victory for telecom giants such as AT&T and Verizon and a loss for Internet titans such as Amazon and Google. The FCC also aims to prevent states from imposing their own net neutrality laws. Continue reading FCC Expected to Repeal Net Neutrality Rules in a Few Weeks

Equifax’s two cyber breaches, which exposed about 143 million Americans’ personal information, were the work of hackers who took advantage of a flaw in Apache Struts software. The nonprofit Apache Software Foundation and the U.S. Computer Emergency Readiness Team warned of the bug in early March, but Equifax only alerted its end users on September 7, almost five months later. IT experts say the event highlights the challenges in keeping software current and identifying all potentially vulnerable applications. Continue reading Equifax Breaches Spur Businesses to Prioritize Cybersecurity

Travis Kalanick stepped down from his chief exec position of ride-hailing service Uber yesterday. Kalanick helped found the company in 2009, but months of scrutiny regarding charges of harassment and discrimination, followed by a recent shareholder revolt resulted in his departure. “Five of Uber’s major investors demanded that [he] resign immediately,” according to The New York Times. “The investors included one of Uber’s biggest shareholders, the venture capital firm Benchmark, which has one of its partners, Bill Gurley, on Uber’s board.” The company will seek new leadership, although Kalanick will remain on Uber’s board of directors. Continue reading Uber CEO Considers Investor Concerns and Resigns Position

In a unanimous ruling, the U.S. Supreme Court tightened rules on where patent lawsuits may be filed. The consequences, say the experts, will make it much more difficult for patent trolls to seek out friendly courts that are likely to rule in their favor. Patent trolls are companies that buy patents solely to demand royalties and sue for damages. Currently, more than 40 percent of all patent lawsuits are filed in a federal court in East Texas, with a single judge there overseeing 25 percent of all nationwide patent cases. Continue reading Supreme Court Ruling Is Likely to Suppress Patent Troll Suits

Verizon and Yahoo announced yesterday plans to move forward with the sale of Yahoo’s core Internet businesses. In the wake of major data breaches at Yahoo, the purchase price has been lowered by $350 million for a new deal valued at $4.48 billion. The companies plan to split future costs related to the data breaches. “The revised agreement,” notes The New York Times, “paves the way for the deal to proceed to a shareholder vote as early as April, although securities regulators are still assessing how Yahoo disclosed information about the breaches to investors.” Verizon is looking to compete with Facebook and Google in digital advertising and, according to The Wall Street Journal, plans to fold Yahoo’s ad tech and websites “into AOL, which Verizon acquired in 2015.” Continue reading Verizon to Pay $350 Million Less for Yahoo Internet Businesses

Microsoft debuted Microsoft Azure IP Advantage, which provides payment for legal costs to customers using the open-source technology that is part of Azure services, including Hadoop data analysis. The rationale behind this new Advantage program is that, by offering Azure customers protection from intellectual property litigation, Microsoft removes an obstacle to the cloud computing service’s growth. This litigation protection service is already in place for Azure customers developing apps with Microsoft technology. Continue reading Microsoft Offers Lawsuit Protection for Azure Cloud Customers

Former rivals DraftKings and FanDuel announced they plan to merge their daily fantasy sports operations into one company, to be run by DraftKings CEO Jason Robins. FanDuel chief exec Nigel Eccles will become chairman. The board will include three directors each from DraftKings and FanDuel, plus an independent director, while headquarters will be divided between New York and Boston offices. The deal, which aims to increase innovation by freeing up money, is expected to close during the second half of next year. Continue reading Daily Fantasy Sports: FanDuel and DraftKings Agree to Merge

The Supreme Court yesterday sided with patent holders in a decision that would make it easier to award financial damages when inventions are copied without permission. “The high court, in a unanimous opinion by Chief Justice John Roberts, overturned a specialized appellate court that had adopted a hard-to-meet legal standard for winning punitive damages, even in cases where the defendant’s patent infringement was willful,” reports The Wall Street Journal. The decision provides leeway for judges regarding the amount of damages. While the Obama administration supported availability of punitive damages, tech companies such as Facebook and Google argued that strict limits on damage awards would protect innovation and curb unnecessary or abusive lawsuits. Continue reading Supreme Court Rules on Awarding Damages to Patent Holders

Digital platforms Facebook, Twitter, Google, Microsoft and Periscope are implementing new ways to fight some of the worst misdeeds of the Internet: hate speech, pornography, graphic and gratuitous violence, threats and trolling. To do so, they are relying on a new range of solutions mainly but not entirely fueled by artificial intelligence. In recent months, all these Internet companies have been the target of lawsuits and harsh criticism for their inability to remove such content in a timely fashion. Continue reading Tech Firms Test AI Solutions to Combat Inappropriate Content

In March, South Dakota passed a new law requiring many out-of-state online and catalog retailers to collect the state’s sales tax, a challenge to a 1992 U.S. Supreme Court ruling on Quill v. North Dakota prohibiting states from doing exactly this. The regulation has already resulted in several lawsuits. If the law is not overturned, other states are likely to follow suit, levying similar Internet sales tax rules. The implications would be enormous if numerous states adopt these rules, likely forcing audits and new tax rules in thousands of jurisdictions across the nation. Continue reading South Dakota’s New Internet Sales Tax Law Spurs Lawsuits

Riding-sharing app Uber has tussled with its drivers over how to define their status: independent contractors or full-time employees. Uber prefers to identify its drivers as independent contractors, which lets it off the hook for paying minimum wage, overtime and its share of Social Security. Recent settlements in class-action lawsuits in California and Massachusetts, which must be approved by a judge, allow Uber to continue this classification. The Teamsters union is busy organizing drivers who want representation. Continue reading Teamsters Organize Uber Drivers Classified Indie Contractors

Spotify and the National Music Publishers’ Association settled a long-standing licensing dispute, although neither will reveal details. Sources say Spotify will pay between $16 million to $25 million in royalties that are owed but unpaid, as well as a $5 million penalty. In exchange, the publishers will not file copyright infringement claims. The suit hinges on a rule governing mechanical licensing rights that dates back to player-piano rolls. In the digital world, the rule is just one that’s made legal licensing complex. Continue reading Spotify, Music Publishers Settle Mechanical Licensing Dispute

A number of top technology executives representing the Internet Association submitted a letter this week to leaders of the House of Representatives calling for quick passage of the Innovation Act of 2015. CEOs of Etsy, Gilt, Google, LinkedIn, Pinterest, Rackspace, TripAdvisor, Twitter, Yahoo and Yelp are among those urging politicians to pass the patent-reform bill this summer. The letter explains that these execs have “direct experience of the negative consequences of the patent troll business model on our economy.” Continue reading Tech Industry Presses Government to Address Patent Reform