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ElcomSoft Lawyer Says Internet Outside U.S. Law

NetRanger writes: "ElcomSoft, the company that employed Dmitry Sklyarov, has fired its opening shot, asking the court to dismiss the charges. Their argument: since the Russian company is based on the Internet, it is outside the jurisdiction of the DMCA. This is rather interesting if it holds up, because it would set a precedent which would allow other countries to tell the DMCA to just go away. If not, ElcomSoft could be out $2.25 million dollars, and the USA could find itself cold-shouldered by a lot of countries with less draconian copyright laws." Wired has another story.

20 of 270 comments (clear)

  1. Hopefully... by anonicon · · Score: 5, Insightful

    This case will be decided for Elcomsoft. If they lose, it means that being on the Internet holds you liable to *any* countries' commercial laws (this is a commercial case) if one of their residents buys one of your businesses' products.

    I wonder if U.S. businesses would enjoy being constrained to French, Chinese or Uzbekistani commercial law if a resident there buys their product.

    1. Re:Hopefully... by CaptainAlbert · · Score: 4, Informative

      > I wonder if U.S. businesses would enjoy being
      > constrained to French, Chinese or Uzbekistani
      > commercial law if a resident there buys their
      > product

      See This page which explains the negotiation of the Hague convention on jurisdiction and foreign judgments in civil and commercial matters.

      I wonder if U.S. citizens would enjoy being constrained to French, Chinese or Uzbekistani civil law if a U.S. business takes a dislike to them.

      Now start writing to politicians. :-((

      --
      These sigs are more interesting tha
    2. Re:Hopefully... by warlock · · Score: 4, Insightful

      Er, no, your logic is at fault. If the case is decided against Elcomsoft, it would only mean that those operating outside the US and offering goods and/or services to US citizens would have to take into account US law on top of whatever local (to the company) laws apply, or they may get into legal trouble.

      This will be a serious problem for many companies selling their goods/services online, since it will be a tough choice between ignoring the US market (which IMHO would be the prudent thing to do) or attempting to comply with the laws of say, both the EU and US (which are oh so often incompatible). The problem is tougher when it comes to services and not shipping tangible stuff, since the customer has no incentive to provide real information. Suppose that elcomsoft puts up a site where you can post your eBook and it is processed for a fee. How are they supposed to discriminate against US residents and not allow them to use that service? Would a simple "I acknowledge that performing this action is not against any local laws" checkbox suffice? I really doubt it, because if it was that simple they could put a similar notice on their software, basically saying "you might have bought this software, but by installing it on your computer it becomes a copyright circumventing, DMCA violating tool, which you wouldn't want to do if you happen to be anywhere near, or plan to visit the US".

      I wonder what's next if Elcomsoft looses, and ceases sales to the US. Let's say that someone takes a short trip to Europe and buys the DMCA-violating software off the shelf and imports it to the US. Since the case decided that it doesn't matter where the transaction takes place, would Elcomsoft be held liable because a US citizen imported software that violates US law? What if my cousin (US citizen) requested that I (EU citizen) buy this and FedEx it to him? Would I risk being prosecuted in the US for trafficking illegal software next time I visit him?

      It should be up to the person purchasing the goods/services to determine if he has the right to import such material, but a decision like that would be unacceptable for the big US corporations I guess.

  2. DO YOU KNOW WHERE YOUR HOSTING SERVICE IS? by kir · · Score: 5, Interesting

    You know, this is pretty interesting. As we know, ElcomSoft had all or some (I can't remember) of their website hosted in America. They may have known that, but will everyone? If a Russian (or French or Japanese or whatever) registered company is providing web hosting services from Russia but colocating in the states, how is a customer to know where their data physically resides (aside from tracking down the IP's physical location)?

    The internet, in a lot of ways, is a huge mesh. I live in Tokorozawa, Japan, but my domain is hosted in the states (I'm not even sure where - Florida I think). Does my content fall under the DMCA even if I setup through a Japanese company, pay in yen, and admin through a .jp URL?

    --
    3cx.org - A truly bad website.
    1. Re:DO YOU KNOW WHERE YOUR HOSTING SERVICE IS? by Novus · · Score: 5, Informative
      Anyone know what's a good country to use for web & email hosting? Some desirable traits:
      • Not have anything like DMCA or WIPO treaty (sorry, USA)
      • Strong crypto is legal (sorry, France)
      • Not have pro-censorship laws (sorry, Germany, Australia, USA)
      • Not have weird libel laws (sorry, UK)
      • Searches and siezures only done with a warrant (sorry, USA)
      • Not take Scientologists and their kind seriously (sorry, USA)
      • etc
      ...Yet still be fairly well-connected. Is there any such place?

      Disclaimer: I am not a lawyer. This is based on my interpretation of Finnish law, based on published cases and sites like this.

      • Finnish copyright law is kind of nice; it has lots of free use provisions (e.g. the right to copy and convert copyrighted material that you have bought the right to use as necessary to use it (irrespective of license agreements)).
      • The EU in general seems not to recognise software patents, AFAIK.
      • Strong crypto is completely legal in Finland; I regularly use military-grade PGP at school to send in assignments.
      • Censorship in Finland is mostly limited to broadcast media (e.g. TV).
      The rest of your points I'm not too sure about, but I have not heard of any nasty cases regarding them.

      Finland is quite nicely connected, especially in urban areas (and university campuses). Consumer broadband is a bit on the expensive site but becoming widely available.

  3. Internet outside U.S. (and all) jurisdiction? by CaseStudy · · Score: 4, Insightful

    This argument is so spurious it doesn't deserve its own article. ElcomSoft and other Internet-based companies don't exist in some otherworldly realm; they exist in real-world people and goods, and do business with other real-world people and goods. If enough such business is done in the U.S., the company will be subject to U.S. law. Simple, and certainly nothing new.

    1. Re:Internet outside U.S. (and all) jurisdiction? by gorilla · · Score: 5, Insightful

      Doing something which is legal in virtually every country in the world except for the US isn't "finding loopholes in U.S. laws". As ElcomSoft have pointed out, under Russian law, making a copy is explictly required, and as eBook's aren't copyable, then in Russian law it's Adobe who are in the wrong.

  4. Outside France... by MosesJones · · Score: 5, Insightful


    If Yahoo aren't constrained by French laws then the obvious result is that US laws don't apply in Russia. Unless of course the judiciary are bigotted hypocrits who feel that their laws should apply to everyone.

    Personally I'm betting on the later as I don't have a great deal of faith in the US system being consistent as its record is that it protects US interests rather than rules according to law. You could say "well so they should" but the effect of that is to mean that US courts are biased, and to be contraversial.... racist, as they judge an applicant by their nationality.

    --
    An Eye for an Eye will make the whole world blind - Gandhi
  5. De Beers a classic example by tapiwa · · Score: 4, Informative

    The US cannot continue to try and impose its laws on the rest of the world. The De Beers example is a case in point.

    For years the directors of DeBeers have been unable to travel to the US due to outstanding anti-trust caes's against them.

    Still they continue to trade, and travel the rest of the world. This article tells how previous cases against the company have failed. Now, having realised how futile their attempts are, they are trying to play nice with the company.

    The US can declare jurisdiction over the entire internet, but unless they do a Noriega, and go in and kidnap a few people, the laws will not mean much unless people visit the US.

    --

    Live today. Tomorrow will cost a lot more!

    1. Re:De Beers a classic example by HuskyDog · · Score: 4, Insightful
      The US can declare jurisdiction over the entire internet, but unless they do a Noriega, and go in and kidnap a few people, the laws will not mean much unless people visit the US.

      This is precisely the "problem" which the Hague Convention on Jurisdiction and Foreign Judgments is designed to "solve". Once it is in force the USA can simply write to whichever country the De Beers directors happen to be residing in and that country HAS enforce the judgement of the US courts.

      I confidently predict that this will only work one way round. The first time that a court in somewhere like China tries to enforce a ruling on a US citizen they will claim protection under some clause of the US constitution and nothing will happen. Perhaps I'm just an old cynic.

  6. Ummm.. yeah... by macpeep · · Score: 4, Interesting

    Kiddy porn isn't illegal on "The Internet" so it's fine to do it there. Right? Of course not!

    Why do people think that the Internet is somehow a different place, outside of all nations. It's not. It's made up by servers and cables that are on the territories of real nations. It's used by people and companies who live in real nations. These people and companies are bound by normal laws. If I send kiddy porn from Finland to the USA over the Internet, why should it be any different than if I send it with normal mail and the pictures are physical?

    Same thing in this case! The defence is completely brain dead!

    1. Re:Ummm.. yeah... by Bartmoss · · Score: 5, Insightful

      IANAL. This is my opinion only.

      In your example, YOU send kiddy porn from finland to the US. This could be viewed as a deliberate act. It's illegal in both countries, so your example is not a good one. Let's tweak it. You have a photo of a nude woman on your web page. It's not even a hardcore pr0n photo. Just a nude woman. Someone in, say, a islamic country takes offense. The photo he just downloaded from your website violates his local law. On your next trip to eastern Africa, you are arrested and flogged in public.

      Is this fair? Certainly not! Of course the internet is not a "palce" devoid of any laws. The tough nut is: Whose laws apply? The only sane solution is that the laws of each individual's location apply to this individual. The internet cannot make a user liable under the laws of all 200 something nations on this planet. That's just insane.

      So barring any international treaties (of which I am not aware), the DMCA has absolutely no effect on what goes on in Germany, Russia, or Republic of Madagascar. The US is free to make up their own laws, but please don't push them down the throats of everybody else.

    2. Re:Ummm.. yeah... by Rogerborg · · Score: 5, Insightful
      • Kiddy porn isn't illegal on "The Internet" so it's fine to do it there. Right? Of course not!

      Ah, if only the real world was so black and white. When you say "kiddie porn", you invite us to consider morally reprehensible images of pre-teens and agree with you by reflex.

      Now let's discuss a relevant example. You get sent a posed image of a nude 15 year old girl from Japan. Is that illegal?

      Well, it's not illegal in Japan. Age of consent is 13, with protections against exploitation. Argue the morality of that, but not the legality (unless you want to argue exploitation, but we'll assume a clued up 15 year old who's making money, it does happen). Where does the illegality start? When the packets cross US borders? When they enter equipment owned by a US company, even if that's in Japan? Is the act of sending the material outside of Japan illegal? Illegal in who's jurisdiction? Is it illegal for you to keep the images ("of course!" to quote you). Are you beholden to report the receipt to US law enforcement, and if so on what grounds? Should US law enforcement try to have the sender extradited? Should they try to prosecute the sender's associates in the USA?

      This case isn't black and white. If you want to discuss it, bring your wisdom to bear on the above example rather than setting up a strawman.

      --
      If you were blocking sigs, you wouldn't have to read this.
  7. lCD by cgenman · · Score: 5, Insightful

    If the courts find that the U.S. can hold foreign companies to US copyright law because they transact over the net, the ramifications go much father than just businesses. This means that China (under US interpretation of law) can hold the Founder of FaLun Gong guilty of breaking their intellectual property laws. The average person won't be able to buy controversial items (such as satanic verses, hitler's smoking jacket, DVD's of any kind) because of the expense involved in maintaining dozens of country / locality / product type blacklists as well as location verification. In short (and probably in redundant) this will dumb down the net to the LCD. Basic Yahoo vs. France stuff.

    Of course, it would be a shame if this were the case to set a prescedent, as many articles have pointed out that Elcomsoft ran a server out of Chicago, communicated with US customers in english, and was quite aware of the law. Yes, this is why their approach is so novel: they are arguing that the infrastructure of the net on the US soil is not under US law. Novelty is no substitute for intellectual prowess. They really haven't a snowball's chance with that line of legal reasoning any more than an indian tribe who asserts sovereginity and tries to grow hemp. It's that specific that makes it so sad that this case will be applied overly broadly to anything American corporations don't like. We own our net, so QED we own yours.

  8. Re:You missed the point by tkrotchko · · Score: 4, Insightful

    "Elcomsoft had a US presence "

    Presence means "physical presence". I don't believe that's true.

    Perhaps I'm wrong. Where are their US offices located?

    --
    You were mistaken. Which is odd, since memory shouldn't be a problem for you
  9. Re:More Likely by BadDoggie · · Score: 5, Interesting
    If I was a pick pocket who could reach from Britain to France to pick a Pocket, where does the crime take place?

    Great analogy, actually. Nice thought experiment. I had to go over it a couple times.

    The base crime -- theft of property -- occurs in France. There are UK laws and treaties which may cover your general participation in a crime. However, the central crime took place in France and, but for the EU, the UK police wouldn't give a rat's ass/arse... at least until France made an extradition request. If you don't agree, consider that without the pickpocketing, no other charges can or do exist, except perhaps Excessive Flexibility and Grievous and Malicious Reaching.

    At this point, your extradition trial should ideally take into consideration whether or not what you did in France is also illegal in France. However, the UK & France are both in the EU and would have to extradite. So let's try this a bit differently:

    Say you also stand in Norway and instead of dipping your hand in a Frog pocket, you go one country over and there, raise your right arm about 30-40 degrees above horizontal while yell the old mid-20th century chant. Germany has strict laws against this and would scream for extradition. Norway is not in the EU, so they are not bound to extradite, as would be the UK. This is certainly not illegal in Norway and Norway may well refuse to extradite you for the crime committed in Germany.

    This is where we already have precedents in the US, and specifically with these laws. Where Denmark was required by the EU to extradite Gary Lauck to Germany even though they (Denmark) have no anti-Nazi laws of their own, the US could and did not extradite Lauck. They wouldn't even run him for mail fraud because what he was sending (he was the central source of neo-Nazi propaganda) was perfectly legal to send in and from the USA. No extradition. There's also no shutting down of neo-Nazi sites hosted in the US depite Germany's repeated requests, so all the little bastards get cheap and legal US hosting. They can only then be tried in Germany if it can be proved that they, within German (or EU) borders, were responsible for the site. ISPs don't give out customer info, not in the US and not in Germany.

    Because this is the US' official position on this subject, they cannot claim that a Russian and/or his company can be held liable for doing something which is legal within their own country's borders , even if doing so violates the laws of the US, Q.E.D.

    woof.

    This took too long to write and no one's gonna see it. Bah.

  10. Re:DMCA Sucks by Stary · · Score: 4, Insightful

    If this DOESN'T hold up then China could pass whatever law they want and sue you for whatever (because one of your emails passed a chinese server for instance). Don't beleive it? I wouldn't beleive that you can't say "This product is dangerous to use, and here's why" in The Land Of The Free [tm]. And that, as you'd say, is absurd!

    --
    Tomorrow will be cancelled due to lack of interest
  11. Re:typical by Kintanon · · Score: 4, Insightful

    When the population begins to feel powerless within the system it means the system is breaking down. I'm advocating armed revolution and forced government restructuring. It's time the citizens of the US who actually CARE what happens get off of their asses and go do something about it.

    Kintanon

    --
    Check out JoshJitsu.info for Brazilian Ji
  12. Personal Jurisdiction on the Internet by Eppie · · Score: 4, Informative

    American civil procedure provides for jurisdiction over foreign companies that do business in America. The theory is that if you come to America and avail yourself of our markets, resources, society, labor, and laws, you are bound to obey our laws. This does not mean that you can be sued in New York if you offer goods for sale in China and some American happens to buy them while on vacation in Beijing. It does mean, though, that if you knowingly advertise in America, ship goods to America, or provide services to American clients, you can be sued in America for violating American law.

    On the Internet, this analysis is a little complicated because websites are accessed internationally, and it is difficult to detect what country people are really browsing from. Still, efforts can be made to exclude certain jurisdictions. For example, Lindows.com used to have a message on their website that refusing to do business in Washington state. This is because they were trying to avoid being dragged into court by MSFT in Washington state.

    There is plenty of caselaw on this emerging area of law:

    • A Blue Note jazz club in Missouri was sued by the Blue Note jazz club in New York. A NY court held that the Missouri club's website, though viewable from NY, did not create jurisdiction in NY because the club was a strictly local Missouri operation. (Bensuan Rest. Corp. v. King, 126 F.3d 25)
    • Likewise, Cybersell of Arizona sued Cybersell of Florida for trademark infringement and was denied jurisdiction because Cybersell of Florida was not really offering its services to Arizonans. (Cybersell, Inc. v. Cybersell, Inc., 130 F.3d 414)
    • OTOH, Zippo (the company that makes lighters) sued Zippo.com (a company that provided fast news updates) in Pennsylvania. Since Zippo offered its news service to netizens across the land, including PA, they were adjuged to be doing business in PA and thus were amenable to suit.

    As the cases make clear, there is a sliding scale that stretches from (1) passive website relating to local activities to (2) interactive website offering services to anybody across the land. Elcomsoft sounds a lot more like Zippo than it does the Blue Note jazz club in Missouri. If they are offering their services to Americans and offering downloads to Americans, they have to expect that they might be sued by Americans in America.

  13. DMCA vs. Fair Use ? by MyNameIsMok · · Score: 5, Insightful

    hi,
    so, let me get this straight.
    1) DMCA says you cant publish information which will allow someone to violate a copyright.
    2) Fair Use Act says you're allowed to copy copyrighted material for backup purposes. From what I understand, you are also allowed to copy the material to be used in another format. i.e. copy CD to MP3 (?), DVD to VHS (?), etc.
    3) If it's legal to copy something from one format to another, and the company providing the original content prevents you from exercising your rights under Fair Use, shouldnt there be a large contingent of class action suits against the content providers for actively and intentionally limiting your legal rights?
    4) perhaps there should be a suit against the media providers to force them to provide format exchangers as a courtesy to their customers? :)
    sTc

    --
    Most things worth doing are worth doing twice. -- me I think or was that my boss' methodology?