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FatWallet Strikes Back Using DMCA

J. F. Miller writes "A recent Slashdot article reported how FatWallet had been the victim of a DMCA attack by several retail chains. After initially stating that they would not appeal, FatWallet was forced to take legal action when Wal-Mart further subpoenaed the name of a person who posted price information. They are accusing the stores frivolous copyright assertions and demanding payment under Section 512(f) of the DMCA"

24 of 350 comments (clear)

  1. Take a stand by SteakJerky.com · · Score: 5, Insightful

    I'm a member of fatwallet, and I'm glad Tim is taking a stand. Copyrighting prices is the dumbest thing I've ever heard. These stores should have been glad for all of the free advertising, or at least accept that good information will not stay hidden long. I just feel bad that he is having to cough up so much dough to fight something so ridiculus.

    1. Re:Take a stand by nathanm · · Score: 5, Interesting
      Copyrighting prices is the dumbest thing I've ever heard.
      No kidding, since it isn't possible to copyright factual information.

      The phone companies tried to stop third party telephone directories from being published, but got shot down in court. The courts ruled that the information in the directories is not copyrightable.

      I just feel bad that he is having to cough up so much dough to fight something so ridiculus.
      If everything turns out well he'll get reimbursed by WalMart.
    2. Re:Take a stand by Sloppy · · Score: 5, Funny
      Copyrighting prices is the dumbest thing I've ever heard.
      But without copyright, what incentive does Wal-Mart have to .. uh .. have prices?
      --
      As copyright owner of this comment, I authorize everyone to defeat any technological measure which limits access to it.
    3. Re:Take a stand by Fastolfe · · Score: 5, Informative

      A collection of facts is copyrightable, but if you go through this collection and pick and choose data from it and post it in another form, you are not violating copyright. It would suck to be a dictionary company or someone looking up and posting a phone number out of the phone book if it were.

      The only possible way I could see these companies having a case is if the price data was not yet public. If it's not announced, and the prices are not yet current, then it's not factual data yet. It's a statement of intent (and something similar to a trade secret) at that point, in the form of a price. I can see how someone might consider that to be copyrightable.

    4. Re:Take a stand by Fastolfe · · Score: 5, Insightful

      revealing trade secrets is illegal or at least against contract

      Illegal, no, but presumably those who have access to trade secrets are bound by countract/NDA not to reveal it, so against contract: yes.

      But trade secrets can still be copyrighted. Look at the Church of Scientology.

      They can't enforce their NDA until they know who released the information, and they're using copyright law to figure that out.

      Note that I'm not trying to sit on the side of WalMart or any of the other companies here, I'm just pointing out how they might have a case. Slashdot frequently needs a devil's advocate.

  2. whoohooo! go FatWallet by digitalmuse · · Score: 5, Insightful

    I can only hope that this case gets enough media attention to make Wal-Mart lovin' Joe Sixpack stand up and take notice that this whole DMCA thing affects him as well. I would also like to think that this will be a good case to showcase how over-reaching and prone to abuse laws like this are.
    If anyone finds any more links about how FatWallet.com is persuing this case/counter-suit please post 'em here!.
    So far all I found was this http://www.ascribe.org/cgi-bin/spew4th.pl?ascribei d=20021202.112004&time=11%2043%20PST&year=2002&pub lic=1 at ascribe.org.

    --
    "If I wanted your input on my pet project, I'd stick my hand up your ass and use you like a sock-puppet." - Muse
  3. Corporate Fuzzy Logic by mat+catastrophe · · Score: 5, Insightful

    Unless I am missing something here, which is just about as likely as snow falling outside right now (oh, crap, it *is*), why would corporations be uptight about their sales info getting pushed out to a wider audience? Isn't this exactly what their advertisements are supposed to do?

    I think maybe this shows that the people who run/are our economy here in the States are just deranged. Now, if the site took straight files from websites, that might constitute a violation (albeit a very minor and sketchy one at best). And, if they posted this information well before the company's in question had officially released the info, that might also be serious. But I can't tell from either FatWallet post when these ads were published or, to be honest, what all the whoo-ha is in this brouhaha.

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    sig not found
    1. Re:Corporate Fuzzy Logic by UCRowerG · · Score: 5, Insightful

      I believe they wanted to keep a lid on their prices until Nov. 29th so that their competitors wouldn't be able to undercut their prices at the last minute, and so pull potential customers away.

    2. Re:Corporate Fuzzy Logic by Mr+Guy · · Score: 5, Insightful

      Exactly, as discussed to death before when the original threats were made. They really weren't copywrited, they were trade secrets. Of course in the end you still have Wal*marts Lawyers against Fat Wallet, and despite the name I bet I can guess who has the most change to toss around.

      The real goal is to make a big enough stink for newspapers to smell it and start reporting on this sort of crap. Then he'll win in settlement, they'll have to drop their stupid claims, and companies may think twice before their legal departments get too seperated from their public relations.

    3. Re:Corporate Fuzzy Logic by mat+catastrophe · · Score: 5, Insightful

      OK, so now it makes a little more sense. But, here's the thing. I just don't buy that at all.

      If you've ever looked at the ads in a Sunday paper, and maybe this is not the case everywhere - and maybe I'm just straining at gnats to come to this conclusion - then you will notice that a lot of companies who are supposedly in "competition" seem to be acting in a coordinated fashion.

      It seems to be that Best Buy and Circuit City run the exact same sales on alternating weeks. One week, hard drives go down at BB while CC runs a sale on monitors. The next week, it's reversed. And the prices are almost always exactly the same. Of course, I don't have a whole lot of empirical data to back this up, just recollections of reading these ad circulars pretty religiously for several months.

      The same is seemingly true of Wal-Marts/K-Marts/Targets of the world. They run pretty much the same deals at the same times (or within a week or two). That's not really competition, that's more like price fixing in my mind. Can we file a class-action suit against these companies or at least a complaint with one of the Federal agencies and force an investigation into sales practices? Or, would this idea also get lost in 21st Century America's more-or-less apathy and/or ignorance?

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      sig not found
  4. DIE, DIE DIE! ...oh please, why wont you just die? by Shadukar · · Score: 5, Funny

    This legislation has been abused like a village bicycle!

    Why the heck does it still exist? You know its bad, I know its bad, if you explain it to a regular joe, he will know it is bad.

    Whats happening? Anyone who wants someone else on the internet to shut up, uses DMCA.

    Is it too broad? Heck yeah! Are lawyers using it whenever they can? Sure, /. is full of stories like that. Needless to say fatwallet is an interesting concept that deservers a fighting chance. I am happy that they decided to show spine. Real spine like that is seriously lacking these days.

    I really hope that fatwallet has a clued-in lawyer for this. I hope that the judge will be half as clued-in as the above mentioned lawyer. I hope fatwallet wins fat damages.

    I mean, Fat damages, damages so fat, next time greedy_company_01 comes to their lawyers crying, the lawyers instead of saying "yes sir, straight away sir, we will use DMCA sir" will say "erm, you have absolutely no case whatsoever, if you want to continue legal action, this will cost you way more than its costing you now"

    Lawyers aint cheap and when court orders someone to pay for the damages/legal costs, it aint cheap.
    Thus, one of the great ways to defeat DMCA absue in the future is to make it costly for those idiots who pull out DMCA whenever they think they are loosing a few cents to competition/someone smarter.

    So, in conclusion of my long-winded post, OG OG fatwallet's lawyer! DIE DMCA, DIE! ;)

  5. I know who posted the Wal-Mart info by jmcwork · · Score: 5, Funny

    It was that little 'Smiley' guy that is always cutting the prices. He was ticked off about being overworked and underpaid.

  6. The DMCA - Rorsach Blot of Law by Badgerman · · Score: 5, Interesting

    This gave me a chuckle. The DMCA is basically being used on itself. I guess it's sort of a mix of silly putty and a swiss army knife, apparently - shape it to anything, do anything you want!

    More power to FatWallet. Let's hope this not only saves them, but deters future DMCA stupidity and helps point out how dumb the DMCA was in the first place.

    --
    "The Sage treasures Unity and measures all things by it" - Lao Tzu
  7. I hope the USA gets into loads of trouble by Basje · · Score: 5, Interesting

    because of bad laws about (electronic) intellectual property. That's the only way the politicians here in Europa will have their eyes opened before we have similar laws.

    So therefor I support any lawsuit based on the DMCA. Not because I am in favor, but because I oppose it.

    --
    the pun is mightier than the sword
  8. Let protect these much abused retailers by yuri · · Score: 5, Funny

    These tiny davids like Walmart must be helped to stand up against the Evil Goliaths like FatWallet. As soon as you let people find out about a special, they are going to buy the product, causing massive cost overruns as the stores have to RESTOCK the shelves with new product. The cost of the actual wholesale merchandise is a large part, maybe 25% of the cost that the consumer in the end pays. Many people forget about this and only concentrate on the 5% that goes to salaries, 5% rent, 20% marketing and 45% profit. Somebody has to pay this 25%, and you can be sure it's not going to be FatWallet.

    I say retailers should fight back, by introducing a copyright friendly pricing structure. Tickle me Barbies only 48 DoodlyDishus Dollars, Ninety N-N-N-N-Nine cents. Surely that creative effort can be copyrighted.

  9. super sekret prices? by geoff+lane · · Score: 5, Insightful
    As someone already pointed out, the price information is actually a trade secret. Walmart's problem is that the secret has to be distributed to 1000's of stores, PR and advertising companies, newspapers and magazines before the start of the sales.

    It's the responsibility of the owner of the trade secret to protect the information. By giving it to so many people outside Walmarts direct control, they have demonstrated that they are not protecting the trade secret.

    Walmart loses!

  10. You can't copyright mere facts by Quila · · Score: 5, Informative

    And a list of prices is a collection of facts. Had the prices been printed on a nice ad with formatting and pretty designs, the whole can be copyrighted, but the mere facts presented on the page are free to redistribute.

    Read the DMCA response letter by FatWallet's lawyers to get the appropriate Supreme Court rulings.

  11. Hmm by teamhasnoi · · Score: 5, Interesting
    Is this copyright infringement? It is not, because copyright only protects the expression of an idea, and not the idea itself. Consequently, a retransmission of the ideas, facts, or even conjectures (which are not themselves copyrightable elements) in the retransmitter's own words does not constitute a copyright infringement, and is itself as protected by copyright as the original posting. From a legal standpoint, this is the preferred method for information to propagate across the net. quoted from here

    I'm not sure that you could even put a price 'in your own words'. Perhaps a script to change the 'offending' price into words, such as, "Thirteen dollars and twenty-seven cents". But that is plain dumb.

    A price can't be copyrighted, any more than I could copyright "ABCDEFGHIJKLMNOPQRSTUVWXYZ1234567890". If this weren't true, I could have just copyrighted all the letters in the Alphabet, and Walmart and Best Buy would be fighting over who owns the copyright on '$9.95'.

    I'm not sure where the DMCA comes in to the original complaint, as reading a price or marketing blurb is hardly 'reverse engineering' or 'breaking copy protection'. If these companies encrypted their prices prior to publication, it would be easier to track who has access to them, and we would then be talking DMCA.

    If anything is wrong here, it's the fact that there are leaks in the companies. Perhaps if they were paid to keep their mouths shut, the employees wouldn't talk. Or still would. There is something to messing with your company, especially when you're just a cogwheel out of zillions and can be replaced or removed without notice. Maybe a rush of power comes over these people, or they have just watched 'Office Space' 32 times. But I digress.

    There was a issue similar to this going on here in Minnesota, when big grocery store chains got into a sue-fight over the 'theft' of prices that had yet to be released.

    To sum all this up, as long as fatwallet is 'reviewing' prices and service, I can't see how they can be liable.

  12. but the DMCA is great for Hollywood and Lawyers!!! by JohnDenver · · Score: 5, Informative

    Why the heck does it still exist?

    Because Hollywood/TV/Music industry gave $21,480,772 in soft money during 2002 to keep it there...

    Lawyers aint cheap and when the court orders someone to pay for the damages/legal costs, it aint cheap.

    Lawyers gave $12,074,762 in soft money during 2002 to make sure these disputes can't be settled without them...

    This public service announcement was brought to you by Open Secrets

    People who truely believe in free market economies would never let the government regulate technology like this, or sanction a virtual monopoly to the Baby Bells, or give the FCC the powers it has to stifle communications.

    --
    "Communism is like having one [local] phone company " - Lenny Bruce
  13. Re:Could someone clarify this? by Jaeger- · · Score: 5, Informative

    i am a member of FW, and the information that was posted was simply a long list of items + prices. there were no posted JPEGs or PDFs of the actual WalMart circular == just text.

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    E V E R Y T H I N G I W R I T E I S F A L S E
  14. FatWallet is making killing too... by nortcele · · Score: 5, Insightful
    All this publicity has given FatWallet more exposure than would be possible otherwise. I had never heard of it before this... went and checked out the site... and found it to quite useful and informative. Mr. Tim could come out of this smelling nicely indeed.

    I almost forgot to include the obligatory DMCA comment. The DMCA bites.

  15. FW doing the right thing by kagejishin · · Score: 5, Interesting

    I'm a longtime member of Fatwallet and I'd like to point out some facts to those people who claim that FW "finally got some balls". The reason the ads were taken down in the first place was that Tim (the mod) was not interested in fighting with the retail giants over information that he knew was easily accessible regardless. In the original response to retailers threats he mentioned that in order for the site to qualify for "safe harbor" status and avoid litigation the site was obliged to remove the information when he found it. However, given the nature of FW it was impossible to quash every post dealing w/ BF and the site allowed links to other sites (some hosted outside the US) which hosted the same information. The only reason litigation is being pursued now is that Wal-mart forced his hand by subpoenaing the personal information of one of FW's members. IMO, FW has done exactly what they should have. Avoided a pointless legal battle until forced into it and then protected the anonymity of it's members when threatened.

  16. No surprise -- it's all strategy by Didion+Sprague · · Score: 5, Interesting

    IANAL, of course, but I'm sure WalMart sees prices not as "prices" but as notices of "strategic intent."

    The prices themselves aren't copyrightable I suppose, but the fact that the prices -- in the case of Black Friday, in particular -- are part of a larger strategy.

    In other words, WalMart probably doesn't care that that XBOX is ten dollars off -- or whatever -- but they do care that the fact of discounting that specific item at that specific pricing level is, in fact, a strategic bid to gain an advantage over shoppers at a specific place and a specific time.

    Now, before you flame, I'm not saying that WalMart is justified in what it's doing, but I do think that the idea of "prices-as-strategy" -- or better yet, Black-Friday-as-the-core-of-our-strategy-to-gain-a dvantage-over-our-competitors -- is something that's not been discussed much.

    I suspect they view the overall prices as a kind of "war document" -- much like any war plans that cross the president's desk. There will be a multititude of plans, of course, but part of the tactical decision making process is to sign off on a particular set of a plans, at a specific time, based on specific intelligence.

    Retailers, I'm sure, view Black Friday in very much the same way.

  17. Re:The whole point of Black Friday... by stilwebm · · Score: 5, Insightful

    2) Prices are NOT protected under the DMCA. This is not what they are mad about. What they are mad about is the DIGITAL MEDIA that the prices were listed using were stolen and posted. To make this clear - Best Buy sends the sale prices on digital media to, say, the Washington Post for advertisement on Friday (the same day of the sale).

    I work for a publishing company that does the same type of work for clients.

    While this would be true if BestBuy had an ad on the inside of the the actual paper, say page three of the front section, this is not true for inserts. Inserts are the type of ad all of the companies who used the DMCA against fat wallet exclusivly used - multipage full color stand-alone sections.

    These are not ever sent in digital format to the paper. They are sent in digital format to a printer like Quad Graphics, who in turn prints the insert and then distributes it to many markets. This process starts well before the paper is distributed to newstands and homes - as much as two or three weeks in advance. With a full page or smaller (or a spread, two facing pages) ad, the digital media is sent to the paper or magazine around 24 hours before the publication goes to press.

    Large printing companies like Quad and Brown have very strict confidentiality agreements for their workers. They are compensated well, screened well, and have never been openly accused of sharing this type of information with outside workers - their reputations ride heavily on this Instead, it is highly probable that the theft originated with someone inside each of the companies who had access to the pricing as the inserts were being created.

    I confirmed this with our production manager who once worked for a national retailer that did Black Friday inserts - she also suspected people inside the companies were responsible for the initial leaks. She knows from firsthand experience that people rushing to prepare holiday ads are often disgruntled and/or overworked and more likely to make mistakes or blatent confidentiality breaches.