Labyrinth of Laws Could Lead to a Net Loss

Article excerpt

Earlier this month, CompuServe, the online service provider, was forced by the threat of federal prosecution in Germany to withdraw access for all its subscribers to about 200 Internet news groups. The move illustrates the Internet's undefined legal status, which might prove to be a minefield of potential liabilities.

At the national level, the approach to the legal issues raised is fragmented and inconsistent. In the UK, Oftel and the Independent Television Commission are both claiming jurisdiction over services to be provided on the networks of the future. The ITC has an elaborate regulatory regime for the control of broadcast programmes, evolved over many years. Oftel, in contrast, has generally exhibited a much lighter regulatory touch in policing telephone services, which is more in keeping with the ethos of the Internet. The eventual outcome of this tussle will have a significant impact on the development of Internet services in the UK.

Another important issue is the liability of service providers for libellous statements posted by users. The Defamation Bill, published last July, attempts to deal with this by exempting service providers only if they have taken "all reasonable care" and had no reason to suspect that they were carrying a defamatory statement. Unfortunately, the definition of reasonable care appears to require service providers to identify potential troublemakers who are users and monitor their messages. This would impose an intolerable burden on service providers.

A further layer of complexity is emerging at the international level. The perceived wisdom has been that the law of the country where the computer is located is likely to be the governing law. But which computer - the client or the server? Either or both? There is no settled law to help to answer this question and the precedents that are emerging are not comforting. CompuServe has more than 4 million subscribers around the world and is widely regarded as a responsible company. …