Free email service and Microsoft subsidiary Hotmail said today that a federal court has ruled in its favor against three companies it sued in January for using the Hotmail domain to launch spam.
Judge James Ware ruled in a US District Court in San Jose, California, that defendants LCGM, Palmer & Associates, and Financial Research Group broke federal and state laws, including trademark infringement laws and the Computer Fraud and Abuse Act. The companies were required to pay penalties of US$275,000 (LCGM), $55,000 (Palmer & Associates), and $7,500 (Financial Research Group) to Hotmail. Permanent injunctions prohibit them from using the Hotmail mark.
"This is a great win in our extensive efforts to make Hotmail a spam-free service," said a statement from Randy Delucchi, Hotmail's director of customer support. "We want the Internet community and our members to know that Hotmail has zero tolerance for spam, and that we will put everything we have behind this stance to assure the best possible experience for our users."
Hotmail's targeting of the forged email offenses was applauded as "a really good strategy" by Jason Catlett, president of the anti-spam activist group Junkbusters. Catlett said a significant number of spammers -- not savvy enough to create bogus, nonexistent return addresses -- resort to using the domains of services like Hotmail. The bad news, he noted, is that many spammers are able to create nonexistent addresses, an offense that is more difficult to prosecute.
Still, sneakier spammers may soon have something to fear, Catlett said, if the Federal Trade Commission follows through on hints that it may start to go after emailers who use bogus headers. "Instead of relying on an injured party -- such as Hotmail -- the FTC could bring suit based on false claims and deceptive practices," he said.
Until the FTC begins pursuing bogus emailers, "It's easier to get someone who claims to be someone else," Catlett said. He also saw significance in the suit because it was brought by such a large service.
"This doesn't represent a silver bullet against spammers, but I'm delighted by it."
