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Censorship Your Rights Online

Criticize Online, Get Fined 470

maxpublic writes "Yet another outspoken critic of corporate America has been SLAPP'ed - only this time, Dan Whatley didn't even know he'd been sued until he was presented with a $450,000 judgement. For those who don't know, SLAPP stands for 'Strategic Lawsuits Against Public Participation' and is used to silence people who openly criticize thin-skinned corporations." In this case the company doing to suing is Xybernaut, the makers of wearable computers mentioned here many times in the past. This article is a must read. And now Xybernaut has joined Amazon and others on my list of Must-Avoid companies. This is a creepy run around the 1st Ammendment, and you should be aware.
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Criticize Online, Get Fined

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  • harry potter (Score:4, Interesting)

    by Anonymous Coward on Sunday March 03, 2002 @11:11AM (#3101104)
    You know, I haven't seen Slashdot come to the aid of the thousands of teens and pre-teens who have harry-potter oriented sites and have been recieving cease-and-desist orders left and right by JK Rowling and WB and whoever else.

    I guess it's only important when the law is coming after adults. Screw helping the 12 year olds.
  • by WEFUNK ( 471506 ) on Sunday March 03, 2002 @11:14AM (#3101110) Homepage
    He claims not to have received the registered letter. The judge then made a default judgement against him since the court only heard one side of the case.

    Although I'm not exactly sure about the legal implications, I hope that he is telling the truth that he did not receive the notice (rather than just ignoring it). I would imagine (and hope!) there would be some really good recourse to appeal in this case.

    If not (if there is little recourse, or if he lied and should have responded), and the judgement is not overturned, I hope that it can't be used a a precedent (since it was won by default, not on the facts). Any lawyers in the room (I'm obviously not one)?
  • Criticize? (Score:5, Interesting)

    by Ivan Raikov ( 521143 ) on Sunday March 03, 2002 @11:20AM (#3101129) Homepage
    Well, the article said that the guy who got the $450,000 fine claimed that one of the company's senior executives (and brother of the CEO), "if [...] was not a relative his job would consist of ... 'Would you like fries with that?'" He also called them liars.

    Normally, I'm all for the little guy, but in this case, seems like the poster was a troll, not an "outspoken critic of corporate America."

    Now, if he had provided a deep insight into the company's workings, and if he had some facts to prove that the company management is incompetent, that would've been a questionable case. On top of that, he claimed he never received a certified letter, when it's very, very easy to have USPS check whether such letter was delivered or not. I don't think we're getting the whole story here.
  • Legal Options? (Score:3, Interesting)

    by Alien54 ( 180860 ) on Sunday March 03, 2002 @11:33AM (#3101160) Journal
    I wonder what the legal recourse is no something like this. There are a number of cases where someone won by default, such as the coed vs the wild party girls tape folks [austin360.com]. Since it is not a criminal case, as such, what are the legal options.

    Obviously, IANAL

  • for a non usa-ian (Score:2, Interesting)

    by richmultijoy ( 558695 ) <slash AT multijoy DOT co DOT uk> on Sunday March 03, 2002 @11:33AM (#3101162) Homepage
    How would this affect someone outside of the US? If I were to write a scathing, bile filled statement of hatred for [insert favourite ceo here] below this post would I find myself subject to UK law or US law? If the US, how could they enforce it?
  • Libel and slashdot (Score:5, Interesting)

    by image ( 13487 ) on Sunday March 03, 2002 @11:39AM (#3101182) Homepage
    [Apologies for the slightly off-topic nature of this post. But it appears highly relevant because of the thread.]

    How long before Taco or one of the other Slashdot editors is accused of and sued for libel by one of the individuals or corporations that is commented on (and perhaps defamed) on the site?

    By the Lectric Law Library's definition [lectlaw.com], libel is:

    Published material meeting three conditions: The material is defamatory either on its face or indirectly; The defamatory statement is about someone who is identifiable to one or more persons; and, The material must be distributed to someone other than the offended party; i.e. published; distinguished from slander. [The 'Lectric Law Library]

    By the CyberLibel definition [cyberlibel.com]:

    A publication without justification or lawful excuse which is calculated to injure the reputation of another by exposing him to hatred, contempt or ridicule. [CyberLibel]

    I tried out the Libel Checklist [utsystem.edu] over at UTexas, and found that a good number of posts by slashdot editor's could at least be considered suspect of libel claims. However, I am anything but a lawyer, and would love to hear a lawyer comment on this.

    For example, if an editor posts a comment in response to an article saying something to the effect of "so-and-so's marketing practices are highly suspect and should be avoided by all good slashdotters." If the statement is not provably true, is not a fair report of an official and public record, is not a matter of public concern, is not merely abusive, is not consentual, and is not clearly an opinion, then such statements could, I believe, be intrepreted as libel.

    Furthermore, could the users of Slashdot also be sued for libel due to their comments?

    Or worse, could I be sued for libel for raising this very question about Rob and Slashdot? Uh-oh. Nevermind...
  • by modipodio ( 556587 ) on Sunday March 03, 2002 @11:44AM (#3101195)
    Wait and see if it is recorded that he signed for the letter ,(informing him of the slapp),before jumping on the corperate hate band wagon.No one here has posted the specifics of the case yet,as in if there was evidence or not that he recieved the letter.

    ""The postings (in question) are full of hyperbole, invective, short-hand phrases and language not generally found in fact-based documents, such as corporate press releases or SEC filings," Judge David O. Carter wrote.

    That's a pretty good description of the postings Xybernaut sued Dan Whatley over, according to a copy of the suit. The suit lists posts in which Whatley berates Xybernaut chairman and CEO Edward Newman and his brother Steve Newman, who is the vice-chairman. "

    Having said all that , what they seem to be suing the guy over seems to be ridiculus, basicly saying the managment of the company was incompetent and accusing the company of lying on a message board which every one knows are havens of 'truth and 'facts'.
  • Certified Mail... (Score:3, Interesting)

    by TraceProgram ( 171114 ) on Sunday March 03, 2002 @11:52AM (#3101220) Homepage
    It is entirely possible that Mr. Whatley did not recieve the certified mail. In a case like this it is up to the courts to serve the defendant with the notice of hearing. This is done with certified mail. The prosecution can only assume that the person receieved the letter. I have a friend who was doing much the same, except in his case he was suing a business. In his case the business did not show up and he won by forfeit. The company then came to the court claiming that the letter was not receieved. That was when the records were checked and found that indeed they had not recieved the letter. Of course it is also possible to refuse certified mail and by doing so make it appear as though you have not recieved it. Certified mail is no guarantee that a party will recieve a letter.

    This is all speculation though, since there is a lot of information we do not know. We can only hope that this is resolved properly, on the side of justice. Besides, $450,000 is an extremely large judgement, and an appeal is still possible.
  • Re:for a non usa-ian (Score:1, Interesting)

    by Anonymous Coward on Sunday March 03, 2002 @11:52AM (#3101221)
    I fear I may find out soon... I'm in the UK and have quoted certain comments about a particular big US tech corporation, the lawyers have only hounded me via e-mail so far, requesting for the offending quotations to be removed.
  • Re:Certified Mail... (Score:3, Interesting)

    by Knobby ( 71829 ) on Sunday March 03, 2002 @12:01PM (#3101237)

    I thought the idea behind certified mail, was that the letter must be signed for upon delivery. That means, if he sign for it, then the US Postal Service still has the letter, and probably a receipt for it, somewhere.

  • by Reziac ( 43301 ) on Sunday March 03, 2002 @12:02PM (#3101241) Homepage Journal
    As to whether or not this guy received the notice of suit:

    In Montana, and doubtless in some other states, notice of suit is considered to be LEGALLY ACCEPTED BY YOU when it is recorded as having been mailed by the court clerk. Whether it was actually mailed or not is irrelevant -- and since there is no requirement that notice be done by trackable mail, there is no way to determine if it was ever actually mailed or not. If you don't show up because someone slipped the clerk a few bucks to "lose" the letter, too damned bad. (And yes, this IS the voice of firsthand experience.)

    Sounds to me like both sides here are full of a variety of crap, but be aware that failure to receive notice can and does happen, and is (literally) no defense in a lawsuit.

    Even so, no way in hell would I buy products from any company that files lawsuits over message board flames. That's the equivalent of jailing a 5 year old for a "hate crime" because the kid yelled "I hate you and I'm going to kill you!"

  • Re:First Amendment (Score:3, Interesting)

    by j7953 ( 457666 ) on Sunday March 03, 2002 @12:23PM (#3101315)
    The First Amendment is a restriction on government, not on you, your neighbor or a business.

    Uh, I read the first amendment like this: "Congress shall make no law [...] [making it possible for anyone to abridge someone else's] freedom of speech, or the press [...]"

    If a law enables companies to suppress free speech by allowing those companies to file SLAPP lawsuits, isn't that a law abridging the freedom of speech, even if only indirectly?

  • by consumer ( 9588 ) on Sunday March 03, 2002 @12:31PM (#3101347)
    I've also wondered about this, since a large number of the postings in the "Your Rights Online" section seem calculated to incite anger, boycotts, and worse. Businesses are assumed to be liars and ingenuine in all of their statements. There is rarely any consideration given to the fact that the actions being criticized in many cases could be the fault of a single lawyer and do not reflect a general evil on the part of all amazon.com employees, or whoever today's target may be. Sooner or later, this may all come back around.
  • by bobert3000 ( 545091 ) on Sunday March 03, 2002 @12:49PM (#3101411) Homepage
    You've got to be served by a constable or other officer of the court. You can't just file a suit, mail it out and collect a judgement when the defendant fails to show up. That being said, if you are sued, even if you are completely innocent of everything, it'll most likely cost 10-15k to prove that - and it's 50-50 whether you'll get that money back. That's only if you never go to trial. If you got to trial it'll be more like 50k. If it's inter-state more like 100k. That's why so many suits are settled and why the little guy generally loses unless he's got a brother who is an attorney.
  • He was a short (Score:2, Interesting)

    by Anonymous Coward on Sunday March 03, 2002 @01:03PM (#3101452)
    The article says that his online handle was dan7, which was a name that I remember quite well from the Raging Bull [lycos.com] boards. Dan7 was a short, plain and simple. His whole purpose for posting was to cause the stock to go down so that he could make money. In my opinion, he got what was coming to him. Do a search for his postings and see for yourself.
  • Re:Here We Go (Score:5, Interesting)

    by NearlyHeadless ( 110901 ) on Sunday March 03, 2002 @01:03PM (#3101453)
    Yet another symptom of the corporatizing of America. If you have money, you win.
    Ummm...no. He lost because he didn't show up. That's true in any civil trial, no matter who has money.

    Instead of just whining about "corporate America", we could talk about reforms that might make a difference. For example, if it's true that he didn't know about the lawsuit, we could require that a process server deliver the notice in person, or that the notice be sent by the clerk of the court with a return receipt required.


    Or, in general, we could look at reforms that discourage meritless lawsuits. Most other countries have limits on judgments, rules where the loser pays the legal costs, or other rules. Of course, millionaire lawyers like Ralph Nader are against these rules. We won't mention how much money the trial lawyers give to the Democratic Party, because they're not big corporations, so they must be okay.


    This is not a new problem. In ancient Athens, there would be a large jury for a trial. If the plaintiff got over half the votes, he won. But, if he didn't get at least 10% (I think that was the percent) of the votes, he would have to pay the defendant.


    But, go on, whine about "corporatizing of America", whatever that means.

  • by Skapare ( 16644 ) on Sunday March 03, 2002 @01:57PM (#3101661) Homepage

    According to this story [wired.com] at Wired, Xybernaut's Mobile Assistant® V [xybernaut.com] product will be used [key3media.com] at COMDEX Chicago [key3media.com] by the event staff to reduce queues. I could envision two different ways that slashdotters could protest. If they are actually going to attend, they could wear something that states their position about the company and its practices. If they are not going to attend, but live in or near Chicago [cityofchicago.org] (big place [census.gov], should be a few around somewhere), they could do the usual protest thing on public property at the border of the convention (I'm sure the COMDEX people would never allow them in the convention area).

  • Re:First Amendment (Score:2, Interesting)

    by cgray4 ( 39638 ) on Sunday March 03, 2002 @02:14PM (#3101725)
    a = b
    a^2 = ab
    a^2 - b^2 = ab - b^2
    (a - b)(a + b) = b(a - b)
    a + b = b
    2b = b
    2 = 1

    There's a flawed assumption in the above argument, just as there is in yours. With a flawed assumption, nearly any conclusion can be reached. In your argument, it is that "rights can't be signed away." This hasn't been true since contracts came into the picture. What would have happened if some early contractor had said "hmm... I've got a right to not work on the colliseum and it can't be signed away." Hopefully he would have gone to the lions.

    Basically, a contract is the signing away of some rights by both parties. The right not to work on the colliseum is nearly as important as the right to freedom of speech.
  • This is fishy... (Score:1, Interesting)

    by Anonymous Coward on Sunday March 03, 2002 @02:19PM (#3101747)
    IANAL, but I have sued lots of people in my lifetime so I have firsthand knowledge of the process...

    First off, sending notice of a lawsuit - called "Serving Process" isn't generally done by certified mail. It can be, but isn't because a) Certified letters, are letters, and are occasionally lost by the fine folks at the USPS. When they're lost, you haven't served process on someone and they don't have to show up because they never knew... b) If you selected "return receipt requested" (and you always should), then you're supposed to get back that little green postcard as proof of delivery - sometimes you don't get the postcard back (it gets lost) and with that loss goes your proof of delivery... c) There's no disinterested third party to testify to the contents of the envelope. So all you can guarantee with certified mail is that you sent a certified envelope. There's no way to prove that ANYTHING was inside it. Even if the other side stipulates to there being SOMETHING in the envelope, there's no way to prove that it was the item which you say you sent.

    To get around all that, you use PROCESS SERVERS. The Sheriff, the Police, a certified Process Server, etc... The gist being, that you hand the Notice to Appear in court to a third party who has no interest whatsoever in the case (a disinterested third party). You give them $30-$50, and they find the person in question and deliver the notice in person. They then call the lawyer or you and say "I delivered the notice to so and so...", they'll fax you, or even fax the clerk of the court. The court accepts the word of this third person without any other discussion or investigation because they have no reason to lie - it's called Prime Facia evidence. If it comes down to it, they'll appear in court and testify to the veracity of the document that you say they delivered to the person... Again, it's prime facia...

    If the process server can't find the person they're to serve, they notify the client. The client then appears in Court and when the court asks if process has been served, the client says "No your honor, we've been unable to find the defendant, and want to apply for an alias summons...". The court then authorizes that, and the client has to get a process server to serve the original person, or someone with his name, or someone in his household that knows him, etc. The person who is served is then responsible for appearing in court - or at least telling the original defendant and appearing with him.

    If the defendant can't be found after an alias summons, then the client can go to court and demand a default judgment which they'll usually get. Sometimes the court may also ask for a certified mailing to be sent (just for kicks) - but it's rare. More often, one sends a certified letter to the defendant, and when it gets returned as refused, or not picked up, then the client brings that to the Court - UNOPENED - and allows the judge to open it. The judge then can see for himself that you also tried the certified thing as well and usually accepts that as Prima Facie evidence as well...

    All in all, this guy seems to be fucked. He's going to have to do some investigation into this and then appear before the court and motion to have the judgement set aside because of:

    1) Process wasn't served...

    2) Alias summons weren't served

    3) The certified mailing wasn't received. If it was sent, then the records from the USPS detailing the audit trail must be requested to see if it even ever showed up at his local post office, and if so, when.

    4) That the judgement is wholly unreasonable and not representative of actual damages, real or perceived, of the company. A company without any revenue whatsoever.

    If he wasn't served, he ought to sue the company for wrongful and malicious prosecution. Add in perjury if they lied to the court about the process being served when it wasn't, or if a certified letter wasn't sent when they said it was.

    If they did forge a certified letter receipt - he ought to call the postal inspectors, they'll be glad to check into it.... If it's perjury, he should contact his local state's attorney. If no process was actually served, and the judge was lied to, then it means that the Judge didn't actually see any documents from the process server and didn't request them - judicial misconduct - file a complaint with the judicial review board. File complaints with the state attorney review and disciplinary commission because the company's lawyers are slime (if they even had a lawyer for it).

    Yes, he's going to have to work for it, but the moral, is POST ANONYMOUSLY!
  • by Anonymous Coward on Sunday March 03, 2002 @03:05PM (#3101888)
    Wow, you're totally off there. Look up the legal definition of what a publication is. It consists primarily of setting information into a redistributatble fixed form and sending it to others. I would certainly think a web page would be considered a publication. By the way, considering web pages not a publication would have a chilling impact on people that actually publish true information. You get a lot of legal protections on the basis of making a publication.
  • by jessohyes ( 175502 ) on Sunday March 03, 2002 @03:35PM (#3101994)
    I was wondering if a properly written clause would protect me from anti defamation lawsuits?
    For example, a statement that says everything I said was just my personal opinion? I think I've seen these before but I would like to know how much legal weight they carry?

    Something Like:The views and opinions, if any, expressed (or implied) by any, all, or part of are strictly opinions and not stating fact. You cannot sue me now ha ha ha.

    Or something like that.

    Jess
  • by Anonymous Coward on Sunday March 03, 2002 @10:42PM (#3103625)
    I'm a Xybernaut shareholder and I've seen this guy post on the XYBR message board on Raging Bull (as Dan7) for the past two years. He uses arrogant inuendo, hyperbole, and non-sequetors to bash the company. He pieces unrelated finacial data together, calls them facts, and arrives at a conclusion; usually that the company's cash burn rate is faster than actually and that they will fold in a matter of days. He also starts rumors about SEC Form 4 filings (which insiders must file before selling stock). Some accuse him of being a paid basher, but I don't know how much money there is in it.

    He's been threatening a class action suit against Xybernaut for securities violations. The notice of suit never arrived? He's a liar. But that's just my opinion.

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