Temporary Injunction Granted Over Utah Anti-Spyware Law

by Glen Shapiro, LawAndTax-News.com, New York

25 June 2004

Ruling in Utah's Third District Court this week, Judge Joseph C. Fratto Jr granted a temporary injunction blocking enforcement of the state's Spyware Control Act, passed earlier this year.

Under the anti-spyware legislation, it is illegal to create or install software which monitors the internet activity of users and sends them elsewhere without their consent. The Act also places stringent restrictions on the uses of pop-up advertisements in general, and can impose fines of up to $10,000 per violation.

However, WhenU.com, which provides free software bundled with a program which tracks internet use and matches surfing activity with particular advertisers in order to provide targeted pop-up ads, argues that the legislation does not, in fact, do much to protect the privacy of internet users.

Arguing that its software is only installed with permission, and therefore does not represent a violation of the privacy rights of internet users, WhenU filed a lawsuit in April urging the District Court to prevent the Spyware Control Act from coming into force in May.

Judge Fratto ruled on Tuesday that WhenU had proven that it would have sustained irreparable harm if the Utah law had come into force as planned.

"Spyware is a problem and we want to put an end to it. When U supports appropriate anti-spyware legislation at the federal level, but unfortunately Utah's Act also impairs legitimate Internet advertising" the firm's chief executive, Avi Naider was quoted by the Associated Press as commenting following delivery of the verdict.

A federal anti-spyware initiative, the Securely Protect Yourself Against Cyber Trespass (SPY) Act is also under debate, and was recently passed by the House Subcommittee on Commerce, Trade and Consumer Protection.

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