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Spamhaus Fine Reduced From $11.7M To $27K

eldavojohn writes "In 2006, anti-spam crusader Spamhaus was sued for 'defamation, tortious interference with prospective economic advantage and interference with existing contracts' after blocking 'promotional e-mails' from e360. What with the case being in Illinois and Spamhaus being a British outfit, Spamhaus didn't bloody care. So, e360 was awarded $11.7 million in damages, which was later thrown out in an appeals court with a request for the lower court to come up with actual damage estimates instead of the ridiculous $11.7 million. (e360 had originally stated $135M, then $122M, and then $30M as sums of damages.) As a result, the actual damages were estimated to be just $27,002. While this is a massive reduction in the fine and a little bit more realistic, I think it is important to note that Spamhaus is a service that people proactively utilize. They don't force you to use their anti-spam identification system — it's totally opt-in. And now they're being fined what a foreign judge found to be 'one month of additional work on behalf of the customers' to a company they allegedly incorrectly identified as spam. Sad and scary precedent."

10 of 378 comments (clear)

  1. What's more outrageous... by Moryath · · Score: 4, Insightful

    is that e360 managed to judge-shop to find a judge so fucking stupid that he didn't simply and correctly say "fuck you, piss off and take your nuisance lawsuit with you, SPAMMER."

    1. Re:What's more outrageous... by Fringe · · Score: 5, Insightful

      He didn't have any alternative; SpamHaus didn't show. The judge isn't allowed to take sides or consider evidence that wasn't presented. If this wasn't the case, you would never be able to successfully sue for redress; the other side could simply fail to show up.

    2. Re:What's more outrageous... by Firethorn · · Score: 3, Insightful

      Which they were, since they were providing their service to people and businesses in Illinois.

      Internet breaks things sometimes, but in this case they weren't even 'conducting business in Il' any more than a mail order company would by mailing purchases there.

      No employees in the state, no physical premesis in the state.

      I think that even the reduced judgement is going to have the problem of how can you go about collecting from Spamhaus? 360 has likely spent far more on this than spamhaus. In order to collect, they'll have to go to Spamhaus, THEN they'll start with the obstructing using their native country's legal system.

      Since most countries won't extradite or hold penalties for stuff that isn't illegal in their home country, they'll essentially have to get Spamhaus retried in Britain.

      --
      I don't read AC A human right
  2. On the fence by Monkeedude1212 · · Score: 4, Insightful

    Well, I mean, the reason e360 got awarded anything is because Spamhaus "Didn't Bloody Care".

    So I mean, yeah, its scary that they lost a case where essentially they incorrectly identified spam (an easy mistake), for an opt in service no less. But its not that scary when you hear that they didn't do anything to defend themselves.

    If you are on a golf course, looking back at the tee-box, and someone yells, "FOOUR" at you - what do you do?

    1. Re:On the fence by Bigjeff5 · · Score: 4, Insightful

      Curiously, nowhere does e360 have to defend this action.

      It's not curious, Spamhaus didn't show up for court. The only evidence the court had to go by was e360's. It doesn't matter if a second grader could refute the evidence, there was nobody there to refute it.

      e360 basically won by default.

      --
      Security is mostly a superstition... Avoiding danger is no safer in the long run than outright exposure. - Helen Keller
    2. Re:On the fence by russotto · · Score: 3, Insightful

      All Spamhaus would have needed to do is pay for one hour of a lawyer's time to write a motion to dismiss, and let it stand with that as their sole defense. A decent judge would have then thrown it out. I'm sure the EFF or similar would have gladly supplied a free lawyer.

      Suppose I got ticked off over something you wrote on Slashdot, and sued you in a foreign jurisdiction. Would you pay for an hour of a foreign lawyer's time to show up and deny jurisdiction?

  3. Some justification to fining Spamhaus by Anonymous Coward · · Score: 5, Insightful

    While nobody likes spammers (except *maybe* their mothers) and Spamhaus is a great project and useful tool for fighting spam, there is still a problem here: As someone who is a mail admin for several companies, it's pretty outrageous when an RBL list marks you as a spammer (and we're not, of course). It can cost serious money when business emails aren't delivered, it can take serious time to resolve the problem, and it also causes embarrassment for the business.

    I don't know Spamhaus intimately, but for most RBL's there is no accountability or appeal. They get to publicly call you a bad name (intentionally damaging your reputation and encouraging others to act on it), and expect you to just take it. They act completely irresponsibly, and assert that, effectively, accountability doesn't scale -- they couldn't possibly review all the businesses they slander via their algorithm. That doesn't cut it.

    Imagine someone created an algorithm that claimed to detect people who are frauds via their online presence, and publicly posted its output. Imagine you were on that list and people stopped doing business with you. Is it permissible for the list's owners to say, 'well, false positives are too expensive to detect, so if you're a false positive on that list, too bad'?

    While RBLs are very helpful services, they must be accountable, just like everyone else in the world. Nobody else gets to say, 'it's just too expensive to be responsible for my actions'.

  4. Re:It isn't a fine. by ledow · · Score: 4, Insightful

    Excuse me... I'm British and I want to sue you in a British court for something that isn't illegal in the US. The fact that you've never set foot in Britain doesn't matter. Get your arse over here within the next three weeks or I'll award me some of your money (which I can't force you to hand over either, and which has never been held in Britain) in your absence.

    Does that make more sense to you with the positions reversed?

    If you want to sue someone, you have to prove that they are conducting business in an area, that within that area they are breaking the law, and that they know that and can attend your court case. Otherwise, you're just making an *international* arse of yourself. It's a British company, operating in solely British territory, doing something that is perfectly legal in Britain. Why you think they should even ever have responded to the case is beyond me. It's called "jurisdiction" and never has the word applied more.

    Otherwise every crankpot will sue every foreign company on trumped-up charges, the companies might never attend the court in question because they would have to travel and/or hire representation, that the offence they are charged with might not even be illegal in their jurisdiction and yet, in their absence, you think that the case should default in your favour.

    I hereby sue Microsoft (US) for failing to offer Windows XP N (The EU edition) in their jurisdiction, or the US Customs for breaching the EU data protection laws that they never agree to abide by. If they don't appear in court, I win by default? Pfft.

  5. Doesn't matter if users opt-in by kindbud · · Score: 4, Insightful

    I think it is important to note that Spamhaus is a service that people proactively utilize. They don't force you to use their anti-spam identification system -- it's totally opt-in.

    People proactively buy the newspaper too. Doesn't mean the newspaper publisher can't be held liable for libel and slander. Spamhaus publishes a news report in DNS about which IP addresses are trustworthy. If they get it wrong and that harms someone, there is ample cause for a tort.

    That people opt-in to Spamhaus is not relevant.

    --
    Edith Keeler Must Die
  6. and regarding your analogy ... by khasim · · Score: 5, Insightful

    And finally, what does the fact that other RBL's have behaved worse have to do with anything? "Yeah, Bob punched someone in the face, but Bill over here beat people with lead pipes! Why should we worry about Bob?"

    No. That's wrong. Because SpamHaus does not block anything.

    The more correct analogy would be if you ask SpamHaus what their opinion is of Bob and they say "I don't like Bob".

    Then when you don't do business with Bob, Bob gets mad and sues SpamHaus for damages.

    And you ask someone else and they say that they don't like Bob OR his family.

    Yes, that is what this is about. People asking other people what their opinion is of the people trying to send them email.