“Wow!”-Venkat Balasubramani, internet tech lawyer

“…the court is ordering the full transfer not just of websites, but of any funds being sent to a website.”-Eric Goldman, associate professor of law at Santa Clara University

The proposed Stop Online Piracy Act, or SOPA, has a lot of web users concerned, but what about what’s already taking place in U.S. Federal and State courts?  It can be called ‘rogue website/domain lawsuits’ and does not involve any true due process for those accused.  They can seize your domain name/website and any funds they claim is associated with it!

In most cases only the attorney’s for the accuser show up in court: “Nobody has showed up in any of these cases to contest his motions in court.”-Eric Goldman, associate professor of law at Santa Clara University

Attorney Eric Goldman has been following the big three cases, involving Chanel, True Religion clothing and Philip Morris.  They all claim that thousands of websites/domains are ripping them off by offering “counterfeit” products or services.  The problem is that the courts are hearing the cases without any response from those accused.

Something else that Goldman noticed is that in cases brought by Chanel and Philip Morris, only one attorney is being used; Stephen Gaffigan from Fort Lauderdale, Florida.

It appears True Religion is using a law firm called Greenberg Traurig.

In one Philip Morris case their only proof was a written statement from a private investigator saying he bought fake Philip Morris cigarettes off a such ‘n such website.

Many cases involve courts sealing documents, meaning the accused, or the public, can never see what’s in them: “For example; in the True Religion case, the entire action was sealed for a couple of weeks. Even without the seal, I don’t know how to find these ex parte rightsowner enforcement cases against foreign rogue websites other than laboriously reviewing every federal filing, having readers tip us off or serendipity.”-Eric Goldman, associate professor of law at Santa Clara University

The courts are ordering websites removed from Google and Yahoo, only to be ‘given’ to GoDaddy.  They also ordered Western Union to redirect customer payments to three individuals.  PayPal has also been forced to freeze at least 84 accounts.

These cases involve hundreds of websites/domains, and some of the cases specifically name Chinese individuals.  While they might have merit, the problem is that the courts have established the practice of rendering judgment without the accused having their day in court, or even allowing an appeal.

For more visit Eric Goldman’s Technology and Marketing Law Blog