Michiel Willems

Europe pushes for integration of card, online and m-payments

2012-02-13T17:45:00.000Z

The European Commission (EC) has published its long-awaited Green Paper on how the European Union (EU) should overcome difficulties in creating an integrated market for card, internet and mobile payments.

"The Green Paper demonstrates that in 2012 the integration of the Euro payments market will enter a new and decisive phase", said Gerard Hartsink, Chairman of the European Payments Council.

The EC expects that an integrated market will benefit consumers, merchants and providers since "such a market would result in increased competition, greater transparency, more innovation and better security", said Ben Regnard-Weinrabe, a Partner at Hogan Lovells, who welcomed the document. Internal Market and Services Commissioner Michel Barnier said legislative changes are needed since "we will not be able to reach this goal with the current level of market fragmentation".

With the Green Paper, the EC aims to create 'a payments market through electronic and mobile payments'. But John Worthy, Partner at Field Fisher Waterhouse, wonders what the value of this statement is: "The level of attention in the Green Paper to existing card based payments leaves open the question how far the Commission is giving equal weight to electronic and mobile payments". Hartsink also warned that "promoting EU integration is not for the faint hearted and requires focus on the long-term objectives".

The main issues the Green Paper addresses are market access (for existing and new payment providers), security and data protection concerns, interoperability issues and transparency of payment service prices.

A number of big players

"A key challenge is how to involve a wide community of stakeholders in the formulation of policy, and in standardisation initiatives, without creating paralysis", said Regnard-Weinrabe. "The holy grail is to achieve access to different systems, and interoperability between them, so that it becomes quicker and cheaper to push money around Europe. We can expect a degree of resistance from card schemes."

Worthy also thinks full market integration will be a challenge since "many existing and aspiring players in e-payments and m-payments markets come from different ecosystems from traditional payments providers".

Double interview: Peter Fleming and Steve Arundale

2012-02-10T10:13:00.003Z

Many businesses, consultants and law firms are facing new challenges in the wake of the UK Legal Services Act, which came into force in October 2011. Michiel Willems spoke to Peter Fleming, Business Director Legal Services at Huthwaite International, and Steve Arundale, Head of Professional Sectors and Financial Institutions at the Royal Bank of Scotland, to have their views on the growth of 'e-lawyering' and the likely changes to the landscape in the provision of high street legal services.

The introduction of the UK Government's Legal Services Act 2007 ('LSA') is spearheading significant changes in the way legal services are delivered. Described as a 'Big Bang' moment for the legal profession, the upheaval caused by the LSA could be nothing short of seismic with industry experts such as Professor Stephen Mayson predicting that as many as 3,000 high street law firms, or 35% of the total, may have to disappear in the subsequent upheaval. What can you say about this? Do you think many small high street firms - who do not have a sophisticated website - will be affected by this new development?
Steve Arundale: The LSA will clearly have a significant impact. Yet, to blame the projected changes on the legislation would be wrong, as the market for legal services in the high street was always going to change anyway. The reason is clear: in a tough economic environment and a fragmented market with too many providers, the level of client service simply has not kept pace with that of other providers of goods and services.

The fact that many firms lack an effective interactive website provides a powerful example of this shortfall. Nearly three quarters of businesses recognise the importance of technology in communicating more effectively with clients who are now more computer literate and buying more goods and services online every year. Yet, only one in four law firms have positively addressed this issue.

The emerging legal landscape poses serious challenges for traditional providers, but also presents a wealth of opportunities for those firms who are willing to make the most of the changes. The impact of the reforms and the implementation of legal technology will allow forward-thinking firms to carve out an increasing share of the market as others succumb to increased market pressures. What can you say about this?

Peter Flemming

Peter Fleming and Steve Arundale: Firms must get closer to and become more interactive with their clients. What is certain is that large new entrants will be leveraging their own client base in this way - they have the budgets and the know-how to do this and it forms part of their everyday way of working. Many law firms by contrast do not have a good enough grasp of who their clients are, their buying patterns and where they are in the buying cycle.

Having said this, there is a great opportunity for those who get it right. Even though the buying landscape may change, the overall market for quality legal services will continue to grow, in the face of increasing legislation and a generally more litigious society. Wherever you look, from commercial to employment to family, the ways in which we interact are becoming more complex, with an associated need for sound legal advice to help both consumers and businesses.

The LSA has now come into force. This means many well-known names, such as Tesco, Sainsbury's and ASDA, can start offering legal services. Do you think many consumers would buy their legal aid online if that would be the best offer?
Peter Fleming and Steve Arundale: There are two questions here: how much would you trust a new entrant and how much would you trust a new way of purchasing legal services?

The answer to both may be the same. Many purchasers may trust the new provider's brand and make regular online purchases, yet are still likely to be cautious in making high-value and complex personal or family decisions via a highly impersonal route to the market. Such consumers are unlikely to be early adopters, having greater confidence in the more traditional, consultative face-to-face approach. However, 'Generation Y' (those born from the late 1970s to late 1990s) purchasers are less likely to be inhibited in this way and more willing to try new providers and new routes to market.

There are two other issues for high street lawyers who charge out on a universal hourly rate for their services to consider here. First, consumers willing to pay the rate for good quality professional advice will be far less willing to pay the same for form-filling and other administrative work. Once again therefore, a blended approach combining online and face-to-face is likely to be more cost-effective and competitive in giving the consumer what they want.

In addition, the new generation of consumers is now much more sophisticated and better-informed as a result of the internet (though this doesn't necessarily make them better buyers). This puts more pressure on the lawyer, as value depends on providing rather more specialist input and advice than the client could find out on Google.

What impact will the LSA have on your clients and your business activities?
Peter Fleming and Steve Arundale: In a more liberalised and competitive market, law firms need to concentrate as much on running the business as providing legal advice. Issues such as getting the right business model, profitability and developing a forward-looking strategy are all about the business and nothing to do with the law.

Do you think it is possible to make a proper analysis of a legal case if information is only provided over the internet?

Steve Arundale

Peter Fleming and Steve Arundale: To a large degree this is already happening. In a standard conveyancing transaction, for example, 99% of the process is automated and can be completed in just 12 minutes, with a short period of review by an approved person.

Some other areas have a large process element which can be automated, yet in most cases there will continue be a small but essential degree of specialist personal involvement where there is some complexity to be managed. This will be due to the inherent nature of the legal issue to be resolved therefore rather than the desire of the client.

By allowing non-lawyers to own law firms, the LSA exposes high street firms to competition from all-comers, especially those with well-established brands, superior media exposure, and existing retail muscle. What should existing law firms do to keep up - or to keep ahead of this new competition? What do your clients say about this and what would you say to newcomers?
Peter Fleming and Steve Arundale: Research has shown that, though 90% of firms recognise that the market will change over the next five years, only 30% have yet done anything to address or respond to this. If they are to survive - let alone thrive - in the face of large newcomers with strong branded presence, an existing high street infrastructure and well-researched offerings, law firms can no longer afford to sit on their hands: standing still is not an option.

There will be opportunities for newcomers into what might be described as the 'traditional' high street legal service provision. These are most likely to be in niche areas, where the provider can evidence a strong specialist expertise and quality service for which clients are prepared to pay a premium. To succeed, they will need to be commercially aware and adopt a more aggressive marketing strategy.

Many in the industry expect 'e-lawyering' to become the new standard. Many solicitors, for example, offer their services online when buying a home. Surveys have confirmed this view. What can you say about this?
Peter Fleming and Steve Arundale: 'E-lawyering' is already starting to become established as the de facto standard in dealing with many legal issues. This has a clear parallel with the medical profession that is embracing technology to deal with the administrative side of patient relationships, as this is both cheaper and what the public wants. Today, patients can book GP appointments online, confirm them via text message and also get repeat prescriptions via the web. The only thing that requires face-to-face intervention with the doctor is the diagnosis of the patient's ailment - the equivalent of the value-added expertise required in providing legal advice to unravel a complex legal problem.

Is there anything else you would like to address, say, add, share?
Peter Fleming and Steve Arundale: Law firms have traditionally been good at recognising and learning from what the best legal practices are doing. Now is the time to look beyond the immediate competition and see what world class looks like in other sectors. This is especially pressing in the area of customer service provision, as newcomers enter the legal services market post-LSA. It is also time to take a step back from the business, review costs and efficiencies and take a fresh look at what they do best in the context of the changing market. In other words, take time away from working in the business to work on the business.

Many thanks.

Change in view on scope of US Wire Act

2012-02-07T17:35:00.001Z

The US Department of Justice has concluded that the 1961 Wire Act is 'not to be implicated by online wagering on activities other than sports'. The DoJ made public the Opinion of the Office of Legal Counsel (OLC), who concluded that the Wire Act should only be applied to sports betting activities.

Before its announcement, the DoJ applied the Wire Act to all forms of online interstate gambling, but Assistant Attorney General Virginia Seitz said that "interstate transmissions of wire communications that do not relate to a 'sporting event or contest' fall outside the reach of the Wire Act".

"The news is big for US states and has spawned much speculation on how states and Congress will respond", said Linda Shorey, Partner at K&L Gates. While some industry experts claim the new approach by the DoJ paves the way for a regulation - and legalisation - of online gambling activities Shorey remains doubtful. "What the change means is the subject of much discussion. No consensus has emerged, yet."

Practical considerations

2012-02-07T17:26:00.001Z

On 5 January, Deloitte published a study that claimed that the number of people who bet on unregulated websites will increase if the UK Government goes ahead with its planned regulation of offshore operators.

The Report, which Deloitte had carried out for (and which was paid by) betting giant William Hill, concluded that if the UK changes its remote licensing regime (by taxing betting operators on the basis of where bets are placed), online gamblers are likely to turn to unregulated, untaxed markets. 'Placing a 10% 'point of consumption' (POC) tax rate on remote gambling could result in up to 27% of online consumer bets being placed in unregulated markets unless effective enforcement measures are found that restrict the growth of that market', the Report read. It also claimed that if the POC tax level is set at 15% (the current tax rate for UK-based online operators), 'as many as 40% of punters could turn to unregulated markets'. Finally, the Report warned, this could result in 'the UK online betting market getting smaller because it would likely lead to smaller companies exiting the market and others cutting back on their marketing expenditure'.

Although the Report was commissioned by William Hill and its final conclusions clearly expose a political agenda, the study does highlight some reasonable issues. Under the current Gambling Act 2005, non-UK based businesses have to be licensed in so-called 'white-listed' jurisdictions in order to offer online gambling services to UK customers. 'White listed' jurisdictions are licensing regimes recognised by the Gambling Commission.

However, since John Penrose, the Minister responsible for gambling activities in the UK, announced in July 2011 his plans to introduce a licensing regime for offshore operators, and Justine Greening, Economic Secretary to the Treasury, proclaimed she would introduce a POC tax on remote gambling transactions, they have not made any mention of how they were planning to keep unlicensed offshore operators out of the British market. However, if the current UK Government does give the green light for such a new offshore licensing regime, one that includes a POC tax, it will undoubtedly encourage UK players to try their luck on unlicensed websites. Therefore, it is about time Penrose and Greening addressed some important practical issues. Both Ministers have, so far, not spoken of any enforcement mechanisms in order to limit the ability of non-licensed offshore operators to target the British market. Other countries, such as France and Spain, have introduced effective enforcement measures, such as website blocking, prohibiting banks processing certain offshore payments, bringing criminal charges against directors of unlicensed operators and banning advertising activities. None of these measures have even been mentioned by British lawmakers.

If the UK government wants to make a serious attempt to regulate offshore players, they should start thinking about the practical considerations. Those challenges should not be taken too lightly. The extent to which a grey market emerges depends on the effectiveness of the enforcement regime. And, so far, we have not seen any proposals that deal with these issues.

Japan to meet international mobile phone standards

2012-02-03T09:50:00.010Z

NTT Docomo, Japan's largest telecom operator, has announced the formation of a consortium of telecoms and banks that will coordinate the adoption of international standards for near field communication (NFC) technologies in the Japanese market.

Alongside the domestic mobile carriers Softbank Mobile and KDDI, NTT released a statement which describes how the new conglomerate aims 'to work with mobile industry groups in Japan, including service suppliers and handset manufacturers, to incorporate compatibility...[with overseas]...standards in the Japanese mobile ecosystem.'

in Tokyo

Mobile operators in Japan, which is the world's second largest economy, have been offering mobile payment and other related phone services for years, but they use non-NFC standards, so-called Osaifu-Keitai technology. NFC technology, however, incorporates a variety of existing ISO standards. Therefore, the newly formed consortium aims to ensure compatibility with so-called Type A and B mobile standards, which are mostly being used in Europe, Australia, Africa and the USA.

Industry experts expect Japan will benefit from the NFC technology since it will create international acceptance of Japanese mobile phones and should encourage cross-border mobile payments. Following NTT, Softbank and KDDI's move, Japan Airlines announced on 2 February it will introduce NFC-based boarding passes for all its Japanese and international passengers in August.

Nigeria kicks off its 'cashless Lagos' project

2012-02-02T11:46:00.000Z

The Central Bank of Nigeria (CBN) has kicked off its much-talked about Cashless Lagos project, introducing limits on how much paper money can be withdrawn and imposing deposit restrictions in a bid to encourage the use of electronic and mobile payments.

"[Cashless Lagos] is to leverage and augment a seamless cashless regime convenient for all classes, and to reduce corruption, increase foreign investors' confidence and to sustain a capital base", said Ben Ndedde, Partner at law firm Justice Forte in Lagos.

In a statement, the Central Bank of Nigeria said "it wants to drive development and modernization of our payment system in line with Nigeria's vision of being amongst the top 20 economies by the year 2020".

Ndedde thinks this should be possible: "Nigeria is very well exposed to internet services." However, he does foresee a number of issues: "Illiteracy levels are still quite high and fraudsters on the internet may pose a hacking threat by intercepting and wiring funds, as is the case globally. We are also saddled with incompetent security agencies incapable of tracking fraudulent transfers."

Interview with Alfredo Della Monica (American Express)

2012-01-30T13:14:00.002Z

Following the success of the Data Protection in the Financial Services Sector conference, last October in central London, Michiel Willems spoke to one of the key speakers, Alfredo Della Monica, Counsel at American Express and responsible for the company's data protection issues in Europe, Africa and the Middle East.

Alfredo, what are the biggest challenges financial institutions are facing at the moment?

The transfer of transaction data is certainly the key issue. For example, the SWIFT case a few years ago raised the attention of all the relevant stakeholders. More broadly, the economic backdrop in many markets makes for a particularly challenging operating environment.

Financial services firms operate, increasingly, across borders and jurisdictions. Is it still possible to control which data flows where and which laws govern what information?

Certainly, it is quite difficult, but it is possible to establish appropriate controls. In my view, if you really want to manage data protection in your firm, you have to think 'what, where, how' about your data every single day.

What are the main practical issues the industry is facing at the moment in relation to data transfers?

The length of the binding corporate rules (BCRs) process, as well as the impracticality of the standard contractual clauses.

Can you tell us a bit more about model contracts and BCRs? What is their importance - from a data protection point of view - for the industry?

Model contracts would be the preferred solution but they are unmanageable, as you need one model contract for each transfer and one model contract for each controller/processor. That would mean millions of model contracts if you are a global company. The BCRs are therefore the only real solution, but it would be helpful if the authorities could speed up the approval process. This may encourage firms to go for this option.

When financial services business operate internationally, or globally, how should they manage the different regulatory requirements?

I believe that a strong compliance program would be enough to monitor the different regulatory requirements in all the relevant jurisdictions. And, most importantly, I would suggest setting a baseline of standard requirements, having in mind the provisions of the EU Directive as many countries in the world adopt those as standards.

Why are banks and other financial institutions regularly in the news regarding data breaches and issues with data management?

This is an issue which affects all companies entrusted with customer data, particularly in today's digital economy. That is why the proposals being drawn up by the European Commission are so important, and why the industry must work together with regulators to achieve a framework which helps consumers while also being workable for businesses.

Do you think cloud computing has added an interesting dimension to the data protection debate?

It could, but in practice it is still too early to comprehensively evaluate the implications of cloud computing.

Do you believe that the sanctions for mismanagement of data are strict enough?

The responsible management of customer data should be good business practice for all companies. Regardless of how a sanctions regime is structured, it should not be a primary motivator for organisations to act as responsible data custodians.

Many thanks for your time, Alfredo.

Thanks for the opportunity.

US Court: domain registrar not liable if domains merely 'forward'

2012-01-28T18:26:00.001Z

A District Court in California ruled on 10 January that a domain name registrar is not liable for 'cyber squatting' if it redirects web users from a squatted website to another site.

Two domain names, registered by Go Daddy (GD) and bearing the name of the oil company Petronas, redirected visitors to a pornographic website through GD's servers. The District Judge ruled that "the forwarding of the disputed domains does not amount to 'use' of the domain names".

Simon Bennett, Partner at Fox Williams, believes the "decision was the right one, since [GD] does not exercise editorial control over sites hosted under domain names for which it acts as registrar".

Gillian Anderson, an Associate at Pinsent Masons, also called the ruling "the correct decision", while referring to the 2011 case Microsoft Corp v Shah Civil Action. In that case a claim of 'contributory cyber squatting' was upheld. "In contrast, Petronas' claim failed because the court decided that the registrar had not directly contributed to the infringement", Anderson explains. "It remains to be seen how the Petronas decision will be applied in future cases given the opposing outcomes from Petronas and Microsoft."

Cyber squatting - the practice of registering a domain name with the intent to profit from the goodwill of a trademark belonging to someone else - is illegal under the Anti-cyber squatting Consumer Protection Act (ACPA) if it happens in bad faith and with the intent to profit.

Radio broadcasts

2012-01-27T07:24:00.002Z

Two recent items I recently did for Radio 1 in the Netherlands - in Dutch

The European premiere of the movie The Iron Lady, click HERE

Dutch Prime Minister Rutte's visit to Downing Street, click HERE

www.radio1.nl

FTC settles over use of flash cookies

2012-01-27T07:09:00.001Z

The US Federal Trade Commission (FTC) has reached a settlement with advertising network ScanScout Inc. over the online advertising network's use of Flash cookies which consumers' web browser settings could not opt out of, contrary to the company's privacy policy.

ScanScout - which was acquired by Tremor Media during the process - used Flash cookies to collect consumer data for the period between April 2007 and September 2009.

Although its privacy policy stated that consumers could block the cookies by changing their browser settings, the FTC found that the Flash cookies were unaffected by users' browser settings since they were not controlled through a computer's browser, unlike HTTP cookies.

Consequently, the FTC found the practice constituted 'deceptive acts or practices in or affecting commerce' and in violation of the Federal Trade Commission Act.

"The failure to properly disclose the use of Flash cookies can result in FTC enforcement", said Dana Rosenfeld, Partner at Kelley Drye & Warren LLP.

The UIGEA, at last?

2012-01-27T06:57:00.003Z

It sent shock waves through the industry. On 7 December, a jury in the US District Court of Boston found Todd Lyons guilty of illegal gambling offences under the Unlawful Internet Gambling Enforcement Act (UIGEA).

The jury was convinced Lyons ran the illegal gambling business Sports Offshore together with a number of co-defendants. Although Sports Offshore is based in Antigua, it was not licensed there and the business actively targeted and recruited customers throughout the US. Since Lyons acted as an 'on-the-ground agent' collecting losses from US sports betters and shipping the proceeds back to Antigua he was found guilty of 'acceptance of financial instruments for unlawful internet gambling', specifically stated under terms set out in the UIGEA. He was also convicted for racketeering under the Racketeer Influenced and Corruption Organisations Act (RICO) as well as violations of the Wire Act.

And so it was official. The first conviction under the UIGEA ever was a fact. A historic moment? For the industry it certainly was. The conviction was hailed as a huge victory for those who oppose online gambling and the US Attorney for Massachusetts, Carmen M. Ortiz, said in a statement that the conviction of Lyons 'should serve as a message to those involved in illegal gambling schemes'. Really? This is a strong message from a government that has never convicted someone before under the UIGEA, even though the law has been in effect for more than five years.

Lawyers and industry experts wonder what to make of this UIGEA verdict, and where to go from here. Before Lyons conviction, the Wire Act and RICO were as good as the only legal tools available to prosecute and convict persons involved in illegal gambling.

So does this case mean a change of course? The answer is most likely no. The UIGEA conviction was merely possible because Lyons was physically collecting gambling proceeds within the United States, while practically all gambling businesses that even dare to offer their services to US customers stay well away from such practices. Money is transferred out of the country and collected in offshore jurisdictions far away, such as Barbados or Panama.

So can we expect another UIGEA conviction soon? Probably not. Although since Black Friday it is clear that cracking down on online gambling activities in the US has become a priority for the US Department of Justice, the UIGEA's own terms limit the possibilities for prosecutors to crack down on online gambling businesses that attempt to take advantage of America's millions of poker players.

In all likelihood, this conviction should be seen as a one-off event and prosecutors ought to celebrate the existence of the Wire Act and RICO if they wish to continue cracking down on online gambling in 2012.

Japan: 9 months after Fukushima

2012-01-27T06:50:00.001Z

Please find below some pictures I took while on a recent visit to Japan. Although tourism is still at an all-time low, the country is slowly recovering from the earthquake, tsunami and nuclear crisis that hit the north of Japan on 11 March 2011. It was a truly impressive journey full of sushi, sake, sumo, Sony, and samurai.

Michiel Willems 2011 (C)

Review: My Week With Marilyn

2012-01-12T10:00:00.000Z

Set in the summer of 1956, the young graduate Colin Flark dreams of finding a job in the film industry so he decides to leave the safety of his parents’ home to embark on an adventurous journey to London, not knowing where destiny is going to take him.

Against the odds, he lands himself a job at a production house in the heart of Britain’s film industry – the Warner Bros. studios in Leavesden - and before Flark properly realises what is happening he finds himself in the presence of the legendary Sir Laurence Olivier and becomes a witness of the tense interaction between Olivier and the absolute superstar of the late ‘50s, Marilyn Monroe, during the production of the comedy ‘The Prince and the Showgirl’.

Monroe, who is joined by her then new husband Arthur Miller, has her moments of insecurity, depression and behaviour that borders insanity, resulting in continuous production delays which deeply frustrate the ambitious Olivier.

When Miller leaves England, Monroe's loneliness and desperate need for attention are filled by the funny, energetic Clark, who introduces Marilyn to some of the pleasures of English life. A heavenly, surreal week, in which he makes Monroe escape from the Hollywood sycophants and the pressures of being a superstar, is to follow. An affair which is encouraged by some on set, but loathed by others who secretly desire the attention of Marilyn themselves. It is the story of a genuine summer love which is bound to go wrong, without anyone really getting hurt.

Director Simon Curtis delivers an excellent performance with a sexy, appealing Michelle Williams as Monroe. Kenneth Branagh (Olivier) keeps the whole lot together, while Judi Dench acts as the moral conscience of the crew and Harry Potter’s Emma Watson is casted as a motivating extra who anxiously fancies Flark. But it is Eddie Redmayne - portraying the young, naive and slightly insecure Flark - who is amazingly strong and carries the story throughout. The convincing story, in combination with the 1950s vibe and fashion, as well as the compelling music of the time, turn this all-round production into a success. The genuine on-screen chemistry between Williams and Flark make this movie a must-see for anyone who still dares to say yes to love. - Michiel Willems

My Week With Marilyn (UK, 99 mins, drama, first released on 25 November in London)

http://myweekwithmarilynmovie.com/

picture: IMDB.com

Controversy over Google Wallet's data security

2012-01-10T10:40:00.001Z

Google's Mobile Wallet does not store personal data securely, research firm ViaForensics (VF) has said.

The security firm tested the application on a rooted handset - a mobile phone with a modified operating system in order to change the (privacy) settings - and it discovered that sensitive data is stored in SQLite databases, a serverless engine which stores data unencrypted. This includes credit card balances, limits, expiration dates, names, locations and transaction dates.

Google responded by releasing a statement: 'This report focuses on data accessed on a rooted phone, but even in this case, the secure element still protects the payment instruments, including credit card and CVV numbers.'

VF agreed Google does a 'decent job' by securely storing full credit card numbers and that a PIN is needed to authorise payments. However, VF's Report came only days after Verizon, the largest telecom provider in the US, demanded on 7 December that Google disables its Mobile Wallet application in the forthcoming edition of the latest Galaxy Nexus smartphone. Verizon cited 'security concerns' as the main reason.

Published previously in E-Finance & Payments Law & Policy, December issue. CPP. Copyrights apply. Picture: infotech.bplaced.net

Germany enters a 'historical year' as SH refuses to sign new Treaty

2012-01-10T10:34:00.000Z

BERLIN - Schleswig-Holstein (SH), the German Federal State that adopted a law liberalising online gambling last September, has refused to sign the new Interstate Treaty on Gambling (ITG), approved by all the other Lander on 15 December.

Since SH's gambling law will come into effect on 1 January it is "very likely the new year will turn out to be a historical year in German gambling legislation, because the online market for sports betting, and casino games insofar as SchleswigHolstein is concerned, will be opened for the first time for private operators", said Matthias Spitzer, Attorney at Melchers Law. Much to the annoyance of the other states, SH will continue to pursue its own gambling policy "for the time being", said Barbara Ploeckl, Associate at Freshfields Bruckhaus Deringer. Spitzer adds: "There is no evidence that SH would turn back, quite the contrary." It is expected that SH will start issuing licences in January or February.

Germany's 15 other Federal States did sign the new ITG, which retains public monopolies by existing state companies. But when the new ITG will become actual law is difficult to say since the "[15] states agreed to only pass the law onto the parliaments of their states for ratification once the European Commission (EC) has given a positive comment", said Ploeckl.

It is not likely the EC will approve this ITG. The previous draft text which hardly differs from the latest version was fiercely rejected by the EC in July. Back then, the EC called the proposed regime 'anti-competitive' and even recommended SH's liberal law as a model for a future ITG.

Published previously in the December issue of World Online Gambling Law Report, CPP. Copyrights apply.

Happy New Year

2012-01-03T14:59:00.001Z

Goodbye riots, Amy and the Royal Wedding. Bring on the London 2012 Olympics and the Queen's Diamond Jubilee Party in Twenty Twelve. Happy New Year.

Picture: Getty Images, Dailymail.co.uk

Too many lobbyists in Brussels?

2011-12-05T16:49:00.001Z

BRUSSELS - The European Payments Council (EPC) has fiercely criticised the influence of lobbyists in Brussels, who, according to EPC Chairman Gerard Hartsink, are 'fabricating issues'.

Hartsink cited figures that suggest there are up to 30,000 lobbyists in Brussels and added: "Anyone who feels that the EU decision-making process is at fault is certainly free to challenge the EU institutions on the matter, however, they should refrain from fabricating a 'SEPA governance issue'." Hartsink stressed that the SEPA inititative is shaped in accordance with EU law and policies and that "it is not driven exclusively by the banking industry".

EPC Board Member Javier Santamaria said: "There is no 'SEPA governance issue'. On the contrary, the debate regarding this particular initiative has been extensive and open to all interest groups at every juncture of the process."

Following a complaint, the European Commission started an anti-trust investigation in September into whether the EPC has abused its standard-setting role in the European payments and banking industry to block new entrants to the payments market.

Published previously in E-Finance & Payments Law & Policy, CPP (c) London 2011. Copyrights apply. Picture: EU

UK Govt to work with leading businesses on data sharing

2011-12-01T13:10:00.000Z

The UK Government announced on 3 November it is teaming up with 26 banks and businesses to create a new personal identity system for making transactions and payments on the internet.

The 'Midata' initiative is hailed as 'an online replacement' of the abandoned UK national ID card scheme. The organisations involved - including Google, RBS, Lloyds, British Gas, Visa, MasterCard and the UK Cards Association - are all 'endorsing the key principle that data should be released back to consumers', according to a statement by the Department for Business, Innovation and Skills on 3 November. Regulators OFCOM, the Office of Fair Trading and the Information Commissioner's Office are also on board.

Consumer Affairs Minister Edward Davey said on 3 November that "[Midata] is the way the world is going and the UK is currently leading the charge". He also claimed that the US and the EU "are showing real interest in the programme" and Midata will deliver "economic benefits".

Others, however, are more skeptical. "It sounds great to be able to ring up my bank and ask them for a spreadsheet containing all of my transactions for the last seven years, but in practice if you think about what would have to happen to pull together the data, format it, validate the relevant security issues and then deliver it, it won't happen overnight", said Dave Birch, Consultant at Hyperion. "I'm more interested in the bank providing an open application programming interface so that my data can be 'mashed up' by other applications with my permission."

Published previously in E-Finance & Payments Law & Policy, CPP 2011 (c) London. Copyrights apply.

Radio reports

2011-11-30T17:06:00.000Z

Some affairs and events I covered in recent weeks for Radio 1 in the Netherlands.

Bin Surfing - also known as dumpster diving or bin raiding - is an upcoming phenomenon in the UK. Click HERE for my item - Starts at 00:57:04 - in Dutch

Ever heard of the London Smog Disaster, December 1952? Click HERE for my radio report about a foggy month in history - Starts at 00:38:08 - in Dutch

Click HERE for my update on the Leveson Inquiry into phonehacking and unethical journalism - Starts at 01:02:25 - in Dutch

Make up your mind

2011-11-24T12:52:00.002Z

Ever since the US Department of Justice cracked down on a number of gambling operators back in April, it seems clear what should happen with businesses that attempt to offer online gambling services to US citizens: arrest and prosecution.

However, a few months down the line, the US landscape seems more fragmented than ever. While the Irish operator PaddyPower is in the final stages of obtaining a licence to start offering gaming services to mobile phone users in the State of Nevada, on the other side of the country one-time Australian internet gambling high-flyer Daniel Tzvetkoff is still in the FBI's witness protection programme in order to testify against the indicted operators. Further south, in Florida to be precise, there are plans to introduce an online gambling Bill as pro-gambling lawmakers felt hugely encouraged after an appeals court in the Sunny State ruled on 5 October that lawmakers can authorise slot machines anywhere in Florida, a decision that, many experts think, could open the door for a further liberalisation of gambling activities - online as well as offline - in Florida.

There is a similar initiative in Illinois, and with the financial climate in the back of their minds, many legislators are more than willing to explore any possibility for new sources of income. And over in New York, entrepreneur and billionaire Donald Trump, who briefly considered running for the 2012 Presidency only a few months ago, said he would launch a poker room in partnership with hedge fund manager Marc Lasry if the US decides to regulate.

So, with pro-gambling initiatives taking place all over the country and the debate on regulation far from over, many feel the three indicted operators are receiving a harsh treatment. Many lawmakers as well as lawyers, feel uncomfortable with the 'Black Friday' arrests and current proceedings.

For an outsider, it is almost impossible to get a clear picture of what the American gambling market currently entails, or in fact, what it does not. It seems the US can not seem to make up its mind. Therefore, the current situation is far from stable: although there is a federal ban on online gambling activities, many Americans continue to gamble online and individual states are aggressively pursuing their own policies.

The full article was published previously in World Online Gambling Law Report, CPP, London 2011. Copyrights apply.

2011-11-21T15:24:00.001Z

Two Radio 1 reports from last week - in Dutch

Laura Merts, or Laura van Egmond? A Dutch 'unarmed combat' spy in the UK is exposed.
Click HERE - starts at 00:06:14.

The latest developments in the phone hacking scandal: the James Murdoch Commons' Hearing.
Click HERE - starts at 01:01:11

www.radio1.nl

Hollow Words

2011-11-14T15:31:00.004Z

The USA, Australia, Canada, Japan, South Korea, Morocco, New Zealand and Singapore recently signed the Anti-Counterfeiting Trade Agreement (ACTA). The agreement should be 'a major tool in the battle against infringements of IP rights', the representatives of the signing countries explained, in particular against counterfeiting practices around the world. It contains mechanisms to improve cooperation in the enforcement of IP rights, including on how to combat infringements in a digital environment and how these measures should be enforced.

Shortly after the signing ceremony, on 3 October, the US Chamber of Commerce released a statement applauding ACTA as 'a big victory for the American business community'. Although ACTA should undoubtedly be considered as (another) step in the right direction by creating a more concrete and efficient level of IP enforcement, and is based on the standards of the World Trade Organisation Agreement on Trade-Related Aspects of Intellectual Property Rights, it does make you wonder: 'a big victory for the American business community'? Really? This statement seems to lack any substance.

Firstly, representatives from the EU, Mexico and Switzerland did attend the ceremony and confirmed their 'continuing strong support' but they did not sign. Why not sign if you support the agreement? Secondly, the agreement was not discussed with the World Intellectual Property Organisation, public interest groups or the tech industry, and was not subject to a public debate.

ACTA also no longer supports elements of the US Digital Millennium Copyright Act, which came into force in 1998 and made it a crime to unlock a DVD to copy it. ACTA contains a loosely worded ban on tools used to unlock 'digital rights management' (DRM) technologies, and, in a footnote, the signing countries agreed that manufacturers and developers won't be required to ship products with DRM restrictions.

If this was not enough, ACTA does not require countries to hold an ISP responsible for copyright infringements committed by its users. Perhaps that explains why some EU countries, like the UK where the Digital Economy Act proposes such a regime, did not sign.

But the real flaw of the ACTA is the fact the main actors are not on board. It might be a bold attempt to create a global copyright system, but without the world's main infringers being involved, such as China, India, Russia and Brazil, it makes you wonder what the real value of ACTA is: just hollow words and political show seems the appropriate answer.

Published previously in the October issue of E-Commerce Law & Policy magazine © 2011 Cecile Park Publishing Ltd, London, UK. Copyrights apply at all times. Pics: thefashionrow.com and spotcounterfeiting.com

'Frustrated' EC launches anti-trust enquiry into EPC

2011-11-09T19:37:00.012Z

The announcement by the European Commission (EC) to open an anti-trust investigation into whether the European Payments Council (EPC) has been blocking new, mostly non-bank, players from entering the European online payments market has not taken the industry by surprise.

"The fact the Commission has opened an investigation indicates that there is reasonable evidence to suggest that the standards may be distorting competition in the market", said Louisa Penny, Senior Associate at Taylor Wessing.

Suzanne McDonald, Partner at TLT, said she understands some of the concerns because "while delivering many benefits, any standardisation process involves competition risks. One common concern is that where industry standards are developed by a limited group of powerful market players, the results may not be suited to everyone in that market and may subsequently hinder their ability to compete".

The EC announced on 26 September that, following a complaint, it is going to investigate whether the EPC has developed such a standardisation process for the online payments industry in Europe that it has become very difficult, if not impossible, for new players to enter the market. The EC said in a statement its investigation is to make sure 'competition is not unduly restricted, for example through the exclusion of new entrants and payment providers who are not controlled by a bank'. The EC believes such restrictions would lead to higher prices for merchants and consumers.

Radio 1 reports

2011-11-08T11:58:00.008Z

Some recent reports I did for Radio 1 in the Netherlands:

·      New charges brought against Vincent Tabak, click HERE

·      Vincent Tabak convicted to 20 years in Bristol, click HERE

·      The iconic Travel Bookshop in Notting Hill to close, click HERE

·      Funderal of the riots' hero, click HERE

www.radio1.nl

www.bnntoday.nl

Online banking fraud losses in UK fall again

2011-11-03T10:06:00.000Z

LONDON - Online banking fraud losses have fallen for the second year in a row, according to new figures by the UK Cards Association. Total fraud losses on UK cards fell to £169.8 million between January and June 2011, 9% less compared with losses in the first six months of 2010.

Although card fraud and online banking fraud both fell, cheque fraud and phone fraud losses are on the rise. Fraudsters increasingly turn to low-tech scams 'as [high-tech] initiatives continue to drive down fraud', the UK Cards Association said. However, the number of phishing websites targeting UK users has increased.

"While these numbers look encouraging it is important to recognise the price customers have to pay for safe online banking", said William Beer, a Director at Pricewaterhouse Coopers. "Two-factor authentication has now become common, with customers having to carry a keyfob or other device in order to log into their bank accounts. While this has lessened the risk of fraud, it has introduced an element of inflexibility into the system and should not be seen as a silver bullet."

Published previously in E-Finance & Payments Law & Policy, October issue, London, 2011. Copyrights apply at all times.

Destination Wales: Aber Falls

2011-10-25T16:42:00.006+01:00

Last weekend some friends, my other half and I headed over to the north-west corner of the Welsh country. On Sunday, with energy in our legs and some sunshine in the air, our destination was one of the most majestic sights of the Welsh mountains, Aber Falls, or Rhaedr Fawr, as they are called in Welsh. These imposing works of Mother Nature can be found in the foothills of the mountain range Caerneddau.

The closest town is a tiny Welsh village with a name impossible to pronounce, Abergwyngregyn, some 90 miles (145 km) from the English-Welsh border and around 260 miles (420 km) from London.

Once we entered the Coedvdd Aber Nature Reserve, we parked our car and embarked on an uphill hike to the Falls. When you commence at the car park, at Bont Newydd, simply follow a narrow path through a small area of woodland. Emerging from the forest, you follow a clear trail through a charming, green valley. At some point the course splits, offering a choice of routes. Either you continue the path through the valley, or a higher trail through a conifer-cultivated area can be taken. Either way, both end up at the Aber Falls. Along the way you run into ponies and beautiful plants such as wild angelica and lady’s mantle, which are predominantly present in the rock crevices around the cascade because of the continuous moisture.

Once you have reached the waterfall and the massive waterworks lie in front of you, you cannot avoid being impressed by the streaming masses of the Afon Goch waterway, the actual river, which drops down around 125 feet (40 meters) onto the rocks below.

Apart from the fact that I was impressed and the place gasps tranquility and serenity, it made you feel far away from the chaotic London crowds and crazy south English traffic. While descending the hill and making our way back to the car, I could not help detecting a feeling of cheerfulness and satisfaction; we had made a memory.

Facebook criticised over post-logout cookies & data sharing

2011-10-19T15:35:00.001+01:00

The social networking website Facebook is under attack in the US over allegedly tracking users' online behaviour after they have logged out and a practice known as 'frictionless sharing'.

On 28 September, Chicago-based law firm Perrin Aikens Davis filed a lawsuit against Facebook, asking a California court to end the use of 'post-logout cookies' on the grounds of alleged violations of federal wiretapping and computer fraud. Facebook has admitted it uses cookies that remain active even after logging out, but said 'it does not store or use [that] cookie data for tracking'. A statement industry experts find hard to believe.

Nik Cubrilovic, the Australian technologist who exposed Facebook's use of 'post-logout cookies', said: "With my browser logged out of Facebook, whenever I visit any page with a Facebook like or share button, or any other widget, the information is still being sent to Facebook." Some members of the US Congress have urged the US Federal Trade Commission (FTC) to investigate Facebook's use of these cookies.

In the same week, on 29 September, a collection of advocacy groups asked the FTC to outlaw 'frictionless sharing', a practice in which apps from services and publishers can publish users' activity to their wall, without asking for permission for every post. Mark Rotenberg, Director of the Electronic Privacy Information Centre, called the practice a 'massive invasion of privacy'.

Published previously in the October issue of E-Commerce Law & Policy, London 2011. Copyrights apply at all times.

Domestic dining in suburban Tokyo

2011-10-06T13:12:00.010+01:00

During a recent visit to Japan I was invited by the Suzuki family to share a meal with them at their home in Musashi-Kosugi, a suburb of Tokyo in the prefecture of Kanagawa, around 50 mins by train from Shibuya station.

I expected sushi and noodles to dominate the menu, just like it does in most Japanese restaurants overseas, but that could not be further from the truth. The Suzuki's did prepare an extensive range of dishes and snacks, unworthy of the word 'meal' and which classified more as proper 'dining'.

Apart from the fact that everything was freshly prepared and home-cooked, prepared just hours if not minutes before we arrived, there was a number of dishes I had never heard of, prepared with ingredients unknown to me, which resulted in trying a few flavors I'd never tasted before. Among other dishes, the meal included fresh sliced raw fish, sashimi, fermented soybeans, natto, Japanese home-cooked staple and pork cutlets.

Yankee Marley, from California, Alex (a Taiwanese-Canadian) and I could not keep our fingers of the endless range of dishes, bowl after bowl, plate after plate. The Suzuki's hyperactive kids could not stop (nor they were made to) running around the kitchen and constantly jumped up and down the couch, while an enormous television played a surreal gameshow in the background.

While chewing my natto, I came to realise that the Japanese are not only extremely friendly and polite, they simply know how to give you a good time. When I headed back to Central Tokyo later on that night, with tickled tastebuds and a smile on my face, I could only come to one conclusion: Jummy Japanese, you taste like more.

AT&T’s plans to become biggest WiFi player in US put in question

2011-09-30T11:32:00.000+01:00

WASHINGTON - The US Department of Justice (DoJ) has announced it has filed an antitrust lawsuit against AT&T, the second largest US mobile phone operator, to block its intention of merging with T-Mobile. The DoJ fears the combination will dominate the market too heavily, resulting in ‘higher prices, fewer choices, and lower quality,’ sending AT&T’s plans to become the country’s biggest WiFi player into turmoil.

Experts in the industry believe the main drive behind the merger, considered by many to be a takeover of T-Mobile, is AT&T’s desire to expand its wireless internet capabilities.

Although AT&T bought the WiFi operator Wayport in 2008 and is the biggest WiFi hotspot provider in the US - in places such as Starbucks and McDonalds - it does not yet offer WiFi calling capacities. By acquiring T-Mobile’s WiFi calling services, it could also reach those customers who make WiFi calls from home - approximately 40% of all WiFi users. The merger would also make AT&T the biggest phone operator in the US, since it would control over a third of all wireless subscriptions in the US.

The Federal Communications Commission (FCC), which has been investigating the merger for several months now, has not released its finding as of yet. “The [DoJ] has done its job. Now the FCC should do its job, follow the law, and reject the takeover of T-Mobile,” said Harold Feld, the Legal Director of Public Knowledge, a US public interest advocacy organisation.

Published previously in the September issue of E-Commerce Law & Policy, London 2011, copyrights apply at all times. Picture: Mobile.huddler.com

Gambling Commission and IOC to exchange data on match fixing

2011-09-19T20:26:00.000+01:00

LONDON - The UK Gambling Commission has plans to start sharing information with the International Olympic Committee (IOC) on suspicious betting activities and match fixing, the Department for Culture, Media and Sports (DCMS) has announced. The legislative changes needed are ‘to come in ahead of the 2012 Olympic’, the DCMS said in a statement on 17 August.

Under the current regime, the Gambling Commission (GC) can only share information if the governing body is specifically listed in the Gambling Act 2005. The DCMS’ statement read that ‘it is planning to amend [the Gambling Act] in order to add the IOC [to the list] and we are also consulting on whether any additional sports bodies should also be included’.

John Cloke, an Associate at DLA Piper, remarks that “the existing list has a domestic focus but DCMS has recognised that it would also be appropriate to include international bodies, in particular the IOC, given the 2012 Olympics in London”.

However, Andrew Danson, Senior Associate at K&L Gates in London, said that “it is curious that the consultation presents the proposed changes as updating an outdated list. I don’t think that explanation stacks up - the governing bodies originally in the Act are all UK-based whereas the proposals to extend the list all relate to international governing bodies based overseas. It’s not an update, it’s a change of approach”. Danson also stressed that “data protection law is an obvious issue, particularly as the GC may now pass personal data overseas”.

The DCMS consultation closes on 9 November.

Published previously in the August issue of World Online Gambling Law Report, CPP, copyrights apply at all times, London 2011. Picture: liberalfair.com

PayPal joins battle against copyright pirates

2011-09-07T16:02:00.001+01:00

LONDON - PayPal has announced it has agreed a partnership with the City of London Police (CoLP) and the International Federation of the Phonographic Industry (IFPI), the trade body that represents the music industry, to cut funding to websites deemed ‘illegal’ by the IFPI and CoLP.

Although PayPal has always banned the use of its services for items that infringe or violate any copyright under its Acceptable Use Policy, the partnership is expected to bring an end to thousands of illegal websites - many operating from Russia and the Ukraine - that sell music illegally on the net.

The partnership follows the announcement, in March, that payment processors Visa and MasterCard also agreed to withdraw their services from copyright infringing websites. “We knew that when illegal services could no longer take payments from credit cards they would try to work around the restriction”, said Frances Moore, Chief executive of IFPI. “That is why we and the CoLP approached PayPal.”

The partnership is an indication the payments industry is moving further against pirate websites by cracking down on the way they are funded. Brett Rowland, Counsel at Sidley Austin, called the agreement “a significant development”, while Rohan Massey, Partner at McDermott Will & Emery UK LLP, thinks PayPal’s move is “a step in the right direction”.

Dawn Osborne, Partner at Palmer Biggs Legal, said PayPal’s decision is “in line with the trend that intermediaries are expected to help against all forms of illegality”. Massey also recognises the “trend to try and limit unlawful behaviour by applying pressure to payment providers”.

However, Consult Hyperion’s Director Dave Birch thinks PayPal’s decision “is a dangerous precedent. I assume PayPal will now stop Saudi consumers from buying alcohol and French shoppers from buying fake Chanel perfume.”

Forcing payment processors, auction websites and online retailers to follow PayPal’s example by law would be “wrong”, said Birch. “How is eBay supposed to know whether my Rolex is real or fake? How is PayPal supposed to know whether I'm actually in the US or not?”

Therefore, Osborne said “it is refreshing to see Paypal volunteer rather than be brought to the table kicking and screaming. Presumably, they would prefer to negotiate the terms on which they will help rather than be forced to accept terms imposed by the authorities.”

Published previously in the August issue of E-Finance & Payments Law Policy, CPP, copyrights apply at all times, London 2011. Picture: PayPal.

FOX first major US network to charge for catch up content online

2011-09-04T14:41:00.002+01:00

NEW YORK - Fox is to become the first major broadcast network in the US to put its content behind a paywall. Fox Networks and Fox Broadcasting – owned by News Corp – have announced that from early September new episodes of Fox shows – such as the hugely popular ‘Glee’ and ‘Family Guy’ – can no longer be watched for free on the broadcaster’s website.

Viewers will have to wait eight days after the show has been aired to continue to watch the content for free or they should subscribe to a participating cable or satellite service if they wish to see shows the day after they have been aired. ‘It will be interesting to see how consumers in the US respond to Fox's proposal and whether it really drives subscriptions to the partner pay-TV services”, says Helen Anderson, a Senior Associate at SNR Denton in London, in a response to Fox’ announcement. “The move may end up fuelling the illegal piracy that the media companies are so keen to prevent.”

Martin Kratz, a Calgary-based Partner at Benett Jones, thinks “it remains to be seen if the 8 day delay is sufficient frustration for the internet savvy viewer to encourage them to seek out the immediate pirate version”. He thinks Fox made a brave decision because “once customers get used to free content on the internet how can you get them comfortable with paying for it?” Kratz believes that in this case Fox has sought a “compromise position” by making the programs available for free after 8 days, and “for those viewers who absolutely cannot wait, the program would be available immediately, on a subscription based service”.

Fox’ move is closely watched by other major broadcasters in the US, such as ABC, NBC and CBS. Erecting a paywall is considered to create many new commercial opportunities, but is also seen as possibly undermining the companies’ traditional advertising and subscription revenues. Fox’ decision “reflects a move away from pure advertising towards a hybrid advertising/subscription revenue model”, explains James Johnston, Partner at Davis & Gilbert LLP in New York City. “Fox complained the pure ad model was not generating sufficient revenue. The advertising/subscription hybrid one creates two potential revenue streams”.

Kratz, believes Fox’ “move may also be seen as a way to drive traffic to the television show itself as the free internet versions can affect the ratings which affect rates for advertising”.

Although other US broadcasters are expected to follow if the Fox format turns out to be successful, Anderson does not think “it is likely [the Fox model will] translate to the UK catch up services” because of a difference in approach. “Fox sees the commercial opportunity to be the ‘first-view’ window immediately after broadcast and then allow longer free access, the UK sees the commercial opportunity to be more a free taster window followed by pay services.”

Copyrights apply at all times. Published previously in E-Commerce Law & Policy, August issue, CPP, copyrights apply at all times, London 2011. Picture: castofthousands.com.

Editorial comment: German fixture lists

2011-09-04T14:34:00.000+01:00

BERLIN - Drafting the new Interstate Treaty on Gambling (ITG) in Germany has - so far - not been a smooth process. Only last month the European Commission rejected the draft text of a new ITG, stating it was not compatible with EU law. This was followed by a decision of the leaders of the German Federal States to postpone a final decision on the new legislation until October, which means that it becomes even more unlikely a new regulatory framework will be in place before the current ITG expires on 31 December.

On top of that, the federal states still have to deal with enfant terrible Schleswig-Holstein. Germany’s most northern state is still campaigning for its own, much more liberal online gambling regime, a scenario that is out of the question for most other states. The State, however, did announce on 22 August its intention to postpone its draft legislation. If that is not enough, the process of market regulation is being further frustrated - and probably further delayed - by the emergence of a new player.

The Bundesliga, the German federal sports body for football, has joined the gambling debate by threatening to charge betting operators for the use of their fixtures lists - the lists with competition times and places, which are subject to copyright, according to the Bundesliga. This way, operators will be prevented from using the Bundesliga’s fixtures lists free of charge, making sports betting impossible without transferring large sums of money to the sports body.

However, if the Federal States agree to open up their sports betting markets to more competition, the sport body will drop its intellectual property demands - it is, therefore, a blatant attempt to influence the current legislative process. And the Bundesliga’s copyright claims did not fall on deaf ears within Germany’s sports community. A new, potentially lucrative, revenue stream was instantly recognised, so it did not come as a surprise that the national handball, basketball and tennis federations have announced they will follow the Bundesliga’s lead.

Germany’s football federation’s unexpected move has raised legal questions. Firstly, sports organisations as such are not part of the ITG. The fact that they can use fixture lists is automatically presumed and not explicitly mentioned. Secondly, does a copyright claim on fixture lists actually exist? German lawyers seem unable to agree but the sports organisations certainly think so. Luckily, as it seems, legal experts still have some time to answer this question.

Published previously in the August issue of World Online Gambling Law Report, CPP, copyrights apply at all times, London 2011. Picture: globalfirepower.com.

London riots radio reporting

2011-08-26T11:20:00.003+01:00

Please find below some of the radio reports and commentaries I did for Radio 1 in the Netherlands during the London riots, an impression of the events that took place in the British capital and which sent shock waves through the nation. - in Dutch.

Riots have broken out and youths are looting in north, east and south London, click HERE

The first arrests are being made but the situation is still not under control, click HERE

Arrests and prosecutions are in full swing and order has been restored on the streets of London, click HERE

The riots are followed by a fierce political debate and the judiciary is working overtime, click HERE

A week after the riots: No mercy for the arrested looters, are the sentences too stiff? Click HERE

www.radio1.nl

Severe weather warning for London

2011-08-23T10:52:00.005+01:00

LONDON – You would think the hordes of noisy summer tourists and the many delayed tube lines - due to summer engineering works - are enough reasons to stay around the house, but if you are planning to spend Tuesday at home, you could not have picked a better day.

On top of the crowded West End streets and the transport saga, the Met Office has issued a severe weather warning for the London area. The UK's national weather service announced this morning that it expects ‘torrential rain’ and said ‘there is a risk of localised flooding’.

A Spokeswoman of the Meteorological Office told the BBC: "A yellow alert has been issued to highlight the risk of localised surface-water flooding".

Jim Knighton, of the London Fire Brigade, advises everyone to stay indoors as much as possible, and assured me that the Fire Brigade is "ready and waiting to help people who might be hit by flooding”. He added that “keeping people safe is our top priority but flooding can also devastate people's properties and possessions, so wherever possible we use sandbags to keep water out of people's homes". Clearly, London is on standby and ready to be drenched.

With street vendors at every corner trying to talk you into a cheap umbrella and the black cabbies doing great business today, another advantage of this typical English weather is, in light of recent events, hard to ignore: surely there won't be any looters out today.

Please find the Met Office's weather forecast HERE

Picture: dailymail.co.uk

Read if you dare

2011-08-21T11:17:00.007+01:00

LONDON - The UK Court of Appeals ruled on 26 July that users of news clippings' services must obtain a license from publishers if they wish to click legally on links that take them to the newspaper websites in question. If not, they might be infringing the publisher's copyright.

Most publishers have no objection if an article is looked at for non-commercial purposes, but when it comes down to 'clippings' services, it is entirely a different issue.

The Court of Appeal upheld a High Court decision that clients of a news clippings service, Meltwater - relating to marketing and PR firms - must be in possession of a license in order to look at articles on newspapers' websites, through Meltwater. The Court held that only those who look at these sites for nonprofessional purposes are not breaching any rights, which means that professionals who browse through articles at work - and with their clients in mind - are likely to break the law.

The Court of Appeal did not specify what ' commercial /non-commercial use' is, but perhaps should have done so: when are you looking at a newspaper article 'as part of your job'? Publishers' terms and conditions usually contain a paragraph that states that an article can only be accessed for 'personal and non-commercial' use: does this mean that only someone who reads certain articles at home for his own interest, is not breaking the law? What if that information later on goes to be used in the course of work, one way or another?

Some websites, including those of the Financial Times and the free business daily City AM, are nearly exclusively visited by professionals who want to keep themselves up-to-date with developments in the industry. Not because they want to, but because their job requires them to do so. So it is hard to implement the Court's decision: in many ways, every day, millions of people are possibly breaching publishers' copyrights on a daily basis.

As a result, the Court has - probably unwillingly - put the online publishing industry into turmoil. Surely, newspapers would not want to forbid people from reading their free online editions? Their advertisers would get nervous and the value of the site as a whole would go down. And certain pages could be scrapped if professionals are not allowed to pay them a visit. Undoubtedly, the Court wanted to protect publishers' copyrights and highlight the issue of unique content protection, but if a news service is offered freely and openly to all, you should be able to read its content without having to fear you are breaking the law.

Picture: www.123rf.com

Madeleine McCann India 'sighting'

2011-08-16T10:38:00.003+01:00

INDIA - The ongoing search for the missing British girl Madeleine McCann - who disappeared in May 2007 during a family holiday in Portugal - took a surprising twist last week after a young girl matching Madeleine's description was spotted at a market in northern India. A British tourist noticed a girl 'bearing a remarkable likeness to Madeleine' in the Indian city of Leh. Madeleine, who vanished just before her fourth birthday, would now be eight years old. I reported this incident for Radio 1 in the Netherlands. To listen to the broadcast, click HERE - in Dutch

Picture: www.telegraph.co.uk

Visa is losing grip on the Asian market

2011-08-15T12:53:00.003+01:00

SEOUL/BEJING - South Korea’s largest credit card firm, BC Card, is considering legal action against payment processor Visa, the Chinese press agency Xinhua has reported. “BC Card plans to file a complaint against Visa with the Fair Trade Commission (FTC) over its unfair transaction activities”, an official at BC Card told Xinhua.

The official claims that Visa has recently imposed fines of up to $100.000 on BC Card for not processing international transactions through the VisaNet payment system, a requirement Visa has for local partners wishing to carry out international transactions. BC Card claims Visa has withdrawn $50.000 from its settlement account as BC Card used China UnionPay instead for international transfers. Another fine of $50.000 was because BC Card used Star Network – a US payments network – to process international transactions.

Experts have stressed these latest incidents are another sign Visa is losing grip on the region and China UnionPay’s influence is growing in Asia. China UnionPay is the sole bankcard processor in China and its overseas presence has grown significantly in recent years.

Picture: closingamericasgobjap.com

eBay liable for your fake Gucci or Prada

2011-08-04T16:53:00.000+01:00

Luxembourg - The Court of Justice of the European Union has ruled that eBay - and similar online marketplaces and auction sites - may be liable for trademark and copyright infringements if their users offer and sell counterfeit goods on their websites.

In a case brought by the French cosmetics giant L’Oréal, Europe's most important Court has ruled that online marketplaces should not be exempted from liability if they have indications that suggest that certain online sales are unlawful, and they do not remove such items or block the sale of these products on their websites. For years, it has been common practice that fake products have sold under luxury brand names such as Armani, Louis Vuitton, Gucci, Richemont and Burberry.

The Court of Justice for the EU also said that under European law operators of online marketplaces can be ordered by national courts to take measures to prevent counterfeit goods being sold on their sites. This means courts in the UK, Germany, France, Italy or other European Union countries can step in and obstruct the sale of fake bags, scarfs, clothes, shoes and other common luxury goods.

Online marketplaces are, however, not liable for copyright infringement if they merely allow customers to display signs of trade marks next to their goods, but there are no signs the actual goods are offered as such.

Kirsten Gilbert, a partner at the London law firm Marks & Clerk, said in a response: "EU trade mark law has been straining under the pressure of dealing with the internet age. The rise of online commerce has created a host of scenarios never envisaged when our laws were drafted. Today's ruling will give national courts guidance on how to approach just one of these scenarios”.

Published previously in a London based publication, August 2011. Copyrights apply. Picture: welfordmedia.co.uk

US accelerates crackdown on online gambling

2011-08-01T10:47:00.000+01:00

Washington/New York - Authorities in the US are stepping up efforts to enforce the country’s strict online gambling laws.

On 23 June, the US Immigration and Customs Enforcement seized ten dot.com domain names, among them doylesroom.com and bookmaker.com. Ann Marie Puig, of bookmaker.com, as well as Darren Wright and David Parchomchuk, of BetEd owner ThrillX Systems, have been indicted on counts of alleged money laundering and operating an illegal gambling business, the US Attorney’s Office for the District of Maryland announced.

On the same day payment processor Bradley Franzen, one of 11 people indicted on Black Friday, last April, admitted to helping PokerStars, Full Tilt and Absolute Poker to circumvent US laws that prohibit the processing of payments from online gambling websites.

Franzen pled guilty to criminal charges of conspiracy to commit bank fraud and conspiracy to commit money laundering. If convicted, he faces up to 30 years in prison, although he has entered a guilty plea deal that recommends leniency at his sentencing which is scheduled for 26 August.

Michiel Willems 2011, published previously in a London based publication. Copyrights apply at all times.

Radio 1 reports - in Dutch

2011-08-01T10:40:00.000+01:00

Some items I did for Radio 1 in the Netherlands in the last few weeks.

For my radio broadcast from the world premiere of the last Harry Potter movie click HERE

For my radio broadcast about former News International chief Rebekah Brooks click HERE

For my radio broadcast about the beginning of the British phone hacking scandal click HERE

www.radio1.nl

Australia addresses match-fixing in sports

2011-07-26T10:15:00.002+01:00

AUS - Sports Ministers in Australia have taken a united stand against corruption in sports by signing an agreement to address match fixing in sports betting.

New laws would make it compulsory for ‘sports organisations and betting companies to share information,’ and funding for sports organisations is going to be ‘contingent on sports implementing appropriate anti-match-fixing and anti-corruption practices,’ it was announced last week.

The laws will be implemented at state-level and a new watchdog, the National Integrity of Sport Unit, is set ‘to oversee the national arrangements’, Federal Sports Minister Mark Arbib said in a statement.

"This is an outstanding result for sport. I am pleased that all Australia’s governments are presenting a united front against the scourge of match-fixing," Senator Arbib explained. "Sport is vulnerable to organised crime, to launder money and conceal illegal activity. The most important thing for Australian sports lovers is to have confidence that our sports are played fairly and that all players are giving their best."

“[The deal] demonstrates a growing interest of the Federal Government to get involved in gambling,” concluded Bill Brown, partner at Landers & Rogers in Melbourne. And Cheng Lim, a partner at Mallesons Stephen Jaques, sees the agreement as “a positive first step in developing a national response,” which is needed since “the laws that regulate sports betting have not been able to keep apace with developments in the betting industry, particularly the growing popularity of online betting”, Lim said from his Melbourne office.

The agreement provides ‘sports with a right to veto bet types’, according to the Sports Minister's statement. Although no formal requirements are yet in place, “steps have already been taken to ban some ‘exotic’ in-play betting perceived to be prone to corruption within the sport,” said Jamie Nettleton, partner at the Sydney law firm Addisons.

Although the Interactive Gambling Act has banned most online gambling activities since 2001, online sports betting is legal in Australia, with many state-licensed betting companies in operation.

Michiel Willems, 2011. Published previously in a London based publication. Copyrights apply. Picture: Fridaymash.com

German deadlock

2011-07-25T14:22:00.002+01:00

Anti-gambling organisations in Germany are outraged with their politicians. This might come as a surprise, since the Interstate Treaty on Gambling (ITG) largely outlaws online gambling in Germany. The anti-gambling movement is furious because it is looking beyond tomorrow. Unintentionally, their valued e-gambling ban is at stake.

The current ITG expires at the end of this year, on 31 December at midnight, and in recent weeks it has become evident that German politicians will most likely not be able to have a new Treaty approved and implemented before New Year’s Day. Theoretically, this means the market would be fully open on 1 January.

Many gambling experts wonder how German lawmakers managed to get themselves in such an incredible position. Only last April, the Heads of the German Federal States - except for Schleswig-Holstein - agreed on a new Interstate Treaty (NIT), which was subsequently sent to the European Commission (EC) for approval. The EC has three months to raise any concerns (the so-called standstill period), which means that, by 10 July latest, the EC has to make public whether it has any objections to the draft NIT and whether it is convinced the text complies with EU legislation. So far, the timing was right and the German gambling monopolies seemed to be safeguarded after 31 December.

That was before 13 June, when Germany’s Federal Prime Ministers decided to delay their final decision on the NIT until October; they indicated they will need more time to come up with a legal framework that can be supported by all 16 states. Two issues, however, make the October deadline unrealistic. Firstly, the northern State of Schleswig-Holstein has proposed its own gambling Bill, which has more in common with Atlantic City than the restrictive, monopolistic approach of the 15 other states. Under Schleswig-Holstein’s draft Bill, which was approved by the EC on 9 May, there are no limits as to the number of licences that can be granted and all forms of casino games would be allowed. It will be a huge challenge to come to some sort of agreement that can carry the support of all 16 German Federal States.

Secondly, it is a safe bet to say the EC will reject the NIT in its current form. The NIT would allow online lotteries but solely those that are organised by the state lottery providers, and online sports bets for which a maximum of seven concessions shall be issued. In the past, the EC has made it clear it does not tolerate such monopolies and the Court of Justice of the European Union (CJEU) basically crushed the German framework in September 2010 when it said that ‘Germany’s state monopolies could not be justified under European law’. The NIT has failed to address these issues.

Approval in Brussels

But even if the other states manage to get Schleswig-Holstein on board and all of them will agree on a final text in October, the final Treaty still needs to be sent to the EC for approval. This means that another standstill period of three months will commence, so the EC’s endorsement could be given in early January at the earliest, after which the adoption and approval processes in all 16 federal parliaments still have to begin. Legislative processes that can easily take up to a year. And that is just the most positive scenario. More realistic is that the NIT will be rejected by the EC in July and Schleswig-Holstein will not give up so easily on its liberal draft Bill. Experts predict the NIT will never see the light of day, at least not in its current form, simply because it does not comply with EU legislation. It clearly needs to be amended for EC approval.

Pushing for a NIT that does not respect EU principles seems to be a refusal to acknowledge reality. It is becoming more and more likely the current ITG will expire without a new one replacing it in time, which means the market will be fully open, at least for some time. Conservative lawmakers being unable to regulate - for operators it must be a dream come true.

Michiel Willems, 2011. Published previously in a London based publication. Copyrights apply. Pictures: US State Department, state.gov.

New association to self-regulate Chinese payments

2011-07-19T12:41:00.000+01:00

The Chinese Government has launched the China Payment and Settlement Association (CPSA), a payment clearing association set up to develop China’s payments industry.

The Ministry of Civil Affairs and the People’s Bank of China (PBC) - the country’s central bank - have given the CPSA the powers to develop industry standards, and regulate the payments and settlement industry. The CPSA’s aim is to encourage industry self-regulation and the management of payment services as well as competition in the market.

The CPSA has also been given the authority to distribute licences to third parties, such as payment providers and processors, to operate on the Chinese market. No licences have been distributed as of yet, but experts expect that to happen soon.

Online payments are growing rapidly in China, but, to date, there has been little regulation of the industry. In June 2010, the PBC decided that non-financial institutions involved in payment services should obtain third party payment licences. Although 32 companies have applied so far, no third party has been granted a licence yet.

Michiel Willems, 2011. Published previously in a London based magazine. Picture: newsroom.sebgroup.com

UK Payments Council works on new mobile account-to-account scheme

2011-07-19T12:31:00.001+01:00

UK banks are developing a system that would allow British customers to transfer money between accounts from different banks by using their mobile phones.

The UK Payments Council (UKPC), which represents the UK banking industry, has started “to explore how a mobile can help customers make a payment from one account to another,” said Gary Hinock, Acting Chief Executive of the UKPC.

Whether British customers will embrace this system depends on “whether or not there is demand for mobile payments,” said Samee Zafar, Director at Edgar Dunn & Co. “I believe there is, but if you look at the history of consumer products there is hardly anything that can be compared to the growth in m-devices.”

“For industry wide adoption to work effectively, we need a unified solution on both the front and the back ends,” said David Divitt, Consultant at ACI. “Most issues with the adoption of new systems arise because they are not designed with the end user as the primary focus.”

Zafar added that “consumer acceptance is never achieved with great technology alone. It requires critical mass investments in raising awareness, marketing, consumer education, and incentives, and let us not forget merchants, who are equally important and will need to be fully on board.”

Hinock stressed that “security is a priority for us,” but predicts that, ultimately, “the wallet might drop off its top spot in the not too distant future”.

Michiel Willems, 2011. Published previously in a London based magazine. Pciture: Lloyds TSB.

Less porn and violence for most Australians

2011-07-14T11:09:00.000+01:00

Australian ISPs to block more than 500 sites

Two of Australia’s largest internet service providers (ISPs) have agreed to block over 500 websites, it was announced. Telstra and Optus - by far the largest ISPs in Australia - as well as smaller ISPs itExtreme and Webshield, have decided to block all websites listed on the Australian Communications and Media Authority’s ‘Refused Classification’ (RC) list of offending websites.

Websites that are put on the RC list contain material that is banned for ‘sale, hire or public exhibition,’ because the content contains ‘matters of sex, drugs misuse or addiction, crime, cruelty, violence or revolting or abhorrent phenomena in such a way that they offend against the standard of morality, decency and propriety generally accepted by reasonable adults’.

The Australian Government has made a number of failed attempts to introduce internet filters in order to fight child pornography, extreme violence and illegal gambling. This latest move by Australia’s largest ISPs means that ‘most Australian internet users will have their web access censored,’ the Australian news website news.com.au wrote.

2011-07-14T11:03:00.000+01:00

Some recent radio broadcasts for Radio 1 in the Netherlands - in Dutch. If you click on the links, my items start straight away.

http://player.omroep.nl/?aflID=12731989&start=01:00:45

http://player.omroep.nl/?aflID=12750828&start=00:59:03

www.radio1.nl
www.bnntoday.nl

Tickets for the London 2012 Olympics

2011-07-02T13:11:00.000+01:00

My radio 1 broadcast from last week, about the Olympic tickets uproar in the British capital - in Dutch.

My section starts straight away. Click HERE

www.radio1.nl

On the internet, everyone has got a name

2011-06-27T14:24:00.007+01:00

What’s in a name?

If you want to circumvent a so-called ‘super-injection’ - a UK gagging order to prevent certain information from becoming public - it seems the internet has become the place to be. Many legal experts, judges and lawmakers are struggling with this dilemma after a confusing month in which a former model and a well-known football player made the headlines for all the wrong reasons.

On 29 May, The Sunday Times reported that only six hours after football player Ryan Giggs had obtained a super injection - to prevent his extra-marital affair from becoming public - a bank worker named James Webley had tweeted ‘so if Ryan Giggs wanted to cover up a hypothetical affair with Big Brother’s Imogen Thomas would that be a super-injunction or a regular one’. Within hours, this was ‘re-tweeted’ by thousands and the footballer’s name was out.

Theoretically, Webley can be accused of contempt of court. He could be fined, his assets seized or even face jail time, but more than seven weeks after he tweeted his message, on 14 April, officers have still not knocked on his door and experts believe it is not likely that is going to happen. Thousands of Twitter users - among them famous names like journalist Piers Morgan and singer Boy George - have mentioned the footballer in their online messages and it would be an impossible task to prosecute them all. On top of that, Member of Parliament John Hemming mentioned Giggs in Parliament and it did not really come as a surprise when Prime Minister Cameron said he felt ‘uneasy’ about super-injunctions and believed judges were developing a privacy law without Parliament's say so.

But it works both ways. While hiding your dirty laundry might have become nearly impossible, remaining anonymous on the net is also increasingly difficult. The Superior Court of California recently forced Twitter to hand over the personal details of a number of its account holders who had allegedly posted libellous statements about South Tyneside Council. The UK Council went to the California Court - who has jurisdiction over US-based Twitter - to find out who was behind an account called ‘Mr Monkey’.

Apart from the question whether tax money should be spent on defending the reputation of a few local councillors, the ruling has paved the way for many from outside the US to identify anonymous bloggers. Experts believe this ruling can have huge implications for users of social networking sites and many wonder whether this verdict signals the end of anonymous blogging, because if it works with Twitter, why not with (US-based) Facebook, Blogspot, MySpace or any other website where people can publish public messages on a daily basis under a fake name. Experts fear many US lawyers will try to find out the names behind anonymous posts so they can sue the bloggers on a ‘no win, no fee’ basis.

When the internet emerged, many praised - and feared - the new medium for the fact that on the web ‘no one knows who or where you are’. This no longer seems to apply. Whether you are a famous ‘adulterous’ footballer or just a critical voter in a sleepy town, everyone’s got a name.

Michiel Willems, 2011. Published previously in the June issue of a London based magazine. Copyrights apply at all times. Image 1: blogs.lessthandot.com. Image 2: itsessential.ca

Modern Britain: fame-obsessed?

2011-06-20T14:41:00.003+01:00

In the UK, more people vote in TV talent shows than for their country's leaders, perhaps a symptom of Britain's growing obsession with fame and celebrity. In London's thriving creative industry, many of those so-called celebrities base their fame on little more than the ability to sing a jolly tune, look good in tight trousers or kick a ball, often not even in the right direction.

Has Modern Britain become a nation obsessed with celebrity and fame? How tacky and raunchy is the UK?

My radio 1 broadcast from last week - in Dutch. The item starts straight away.

http://player.omroep.nl/?aflID=12668370&start=01:06:00

www.radio1.nl

Pippa Middleton

2011-06-16T11:08:00.004+01:00

A recent item about Pippa Middleton, for Radio 1 in Holland. If you click on the link HERE my item starts straight away - in Dutch.

www.radio1.nl

California Court orders Twitter to hand over data to local UK council

2011-06-14T14:52:00.009+01:00

The UK Council of South Tyneside confirmed it has received personal data from the social networking website Twitter after the Superior Court of California ordered the website on 30 May to identify five of its users who had allegedly posted libelous statements about several South Tyneside Council Members.

Twitter has handed over names, IP and email addresses as well as phone numbers. Although “these proceedings have become routine in the US, this is the first time somebody from this country has actually gone to America to force Twitter to release the identities of individuals”, said Mark Stephens, Partner at Finers Stephens Innocent (left). “Given the outcome of this case I definitely expect others to follow.” Ashley Hurst, Senior Associate at Olswang, agreed with that: “[this case] may well encourage others to bring similar actions”.

The lawyers for Ryan Giggs, the footballer who was recently exposed on Twitter despite having taken out a court order to prevent an extra-marital affair from becoming public “could now go to the courts in California to get the identities of the persons behind the Twitter accounts that exposed him”, Stephens said. He does not think the (British) bloggers who exposed Giggs will be prosecuted in the UK since “no one has the stomach for it”. Stephens added that “anonymous blogging is still possible, but has certainly become much more difficult if you are not a web professional”. Hurst added: “This case demonstrates how anonymous internet users are not always as anonymous as they think.”

Michiel Willems, 2011. Published previously in a London based magazine. Copyrights apply at al times. Pictures: South Tyneside Council and BBC news website.

www.twitter.com/michielwil

Holland about to go 'net neutral'

2011-06-13T09:44:00.008+01:00

The Netherlands is about to pass a Bill that would guarantee its citizens net neutrality. On 24 May, the Dutch Minister for Economic Affairs, Agriculture and Innovation, Maxime Verhagen, announced in the Tweede Kamer, the Dutch House of Representatives, that he would amend the Dutch Telecoms Act, as proposed by a Member of Parliament a week earlier.

Under the new Telecoms Bill, internet service providers (ISPs) and mobile phone companies would be barred from limiting heavy-bandwith applications and would not be allowed to charge users extra to use online voice applications - such as Skype or Whatsupp - which has been common practice in Holland. The Bill would also prevent ISPs or mobile operators from selectively blocking or slowing certain applications.

If the legislation passes, which is considered a formality because of the Dutch coalition government structure, the Netherlands would become the first country in Europe - and the second in the world after Chile - to arrange net neutrality by law. The concept of net neutrality means that all internet traffic should be treated equally by ISPs and telecom operators. Although the final text is still being discussed, most lawmakers have already given their support for the new Bill.

“It might prove difficult to properly scope the proposed legal ban”, said Peter Eijsvoogel, Partner at Allen & Overy. “If we call the emergency services, we do not want our lines to be blocked by teenagers calling a game show.”

The proposals “may have a significant impact on the way in which mobile operators can deal with the effects of over-the-top apps like What's App and Skype, which have been eating away their core revenues substantially”, said Quinten Kroes, Partner at Brinkhof. “Indirectly, it may impact their ability and willingness to invest in new infrastructure, like 4G.”

Minister Verhagen is in talks with the European Commission (EC) to “ensure that the amendment does not interfere with EU regulations”, said Ministry Spokesman Edwin van Scherrenburg.

Matthijs van Bergen, a legal advisor at ICT Recht thinks “it really is a shame that [the EC] has not lived up to its task to adequately implement net neutrality into the regulatory framework and to effectively harmonise Member States' laws”. Van Bergen does, however, expect other European countries to follow soon: “Politicians in Belgium are also working on a law of their own”.

Michiel Willems, 2011. Published previously in a London based magazine. Copyrights apply at all times.

China tightens grip on the internet

2011-06-06T16:18:00.009+01:00

New agency to monitor the net

China has set up a new agency that is going to monitor and regulate the country’s internet traffic. State-controlled news agency Xinhua quoted on June 5 a government statement, saying that the powers of different ministries have been brought together to form the State Internet Information Office (SIIO), which ‘will direct, coordinate and supervise online content management and handle administrative approval of businesses related to online news reporting’.

Xinhua added that the SIIO will ‘direct the development’ of online gaming, online video and audio businesses and online publication industries. The SIIO will also actively promote state-approved news websites, and has been assigned powers to investigate and punish websites that violate Chinese internet and telecommunications laws. The SIIO will control internet service providers to ‘improve the management of registration of domain names, distribution of IP addresses, registration of websites and internet access’.

Fighting pornography

The Chinese Government has also introduced new requirements to set up a website. New registrations will only be successful if the website owners identify themselves and justify the content of the proposed website to regulators. According to the Ministry of Industry and Information Technology, the measures are designed to fight pornography, but many consider the move as the latest attempt to tighten control over China's online community, which, with its 380 million users, is the largest and fastest growing online market in the world. Since December, tens of thousands of websites have been shut down, while the registration of new websites has been suspended.

Under the new plans,

websites without government records

will be made inaccessible by the end of September. It is hard to believe this move is merely designed to tackle online pornography, unless the Chinese Government considers hundreds of thousands of consumer, informative and chat pages as too exciting for its people.

Online gambling

The Chinese Government has also announced it is planning another major crackdown on online gambling and gaming websites, hugely popular in the country."Legalisation of gambling in China will have a long way to go", said Natasha Xie, Partner at Jun He Law Offices in Hong Kong. "Some people hope to see the government's intention to speed up, by this type of crackdown, the legalisation process of gambling, but they would probably be disappointed."

One of the reasons why China is stepping up its efforts to close down online gambling operations is the vast amount of money flowing out of the country. With the development of the internet, the online gambling market has grown significantly in the last few years. "My opinion is that this law is focused on money, transporting illegal proceeds across the border," said a Xi'an based lawyer who wishes to remain anonymous.

Michiel Willems, 2011. Copyrights apply. Pictures mtholyoke.edu (1), myself (2), myself (3) and dailybuzz.com (4).

FBI crackdown on online poker: double pain, double gain

2011-05-23T11:52:00.004+01:00

On 15 April, the FBI launched the biggest crackdown on online poker in the US since the Unlawful Internet Gambling Enforcement Act (UIGEA) came into force in 2006. The targets were those operators who have continued to accept payments from US residents on their websites since the implementation of the UIGEA.

PokerStars, Full Tilt Poker and Absolute Poker have been charged with alleged bank fraud, money laundering and illegal gambling. Eleven individuals are accused of manipulating banks into processing around $3 billion in illegal gambling revenue. ‘Black Friday’ has sent shockwaves through the online gambling industry and it was undoubtedly a dark day for online poker players in the US.

However, operators who do not focus on the US market could not believe their luck. Many European gambling businesses saw their shares soar, such as Bwin (up 30%), Playtech (8%) and 888 (19%), as investors bet on high-value players, processors and affiliates switching to safer sites that are currently not subject to criminal investigations.

The seizure and interruption of money streams have also made it harder for PokerStars, Full Tilt Poker and Absolute Poker to remain at their liquidity levels, which is again not very appealing for players and investors alike. The three operators in question are trying to assure customers that safety is not an issue. Non-US players, however, have become nervous and wonder if their money is still safe. Many players and investors do not want to take any risks after last week’s developments. They have come to realise their funds are only truly safe in a regulatory climate that does not define online gambling as a criminal activity. Although the jump in share prices might be short-lived - many experts believe the market will stabilise to normal standards within a few months - the non-US focused operators are expected to benefit in the long term as well.

Some experts believe the latest FBI action is a way of clearing out some of the difficult issues in order to make regulation of online poker in the US easier. Cleaning up the mess before the American online gambling landscape can be re-organised, since there is a strong feeling in many US quarters (including the DoJ, obviously) that the three accused businesses should not benefit from their illegal activities and any attempt on their part to continue to do business, or even to sell their assets, should be blocked, so if the US would allow a number of operators back in at some point, the three accused companies will not be on top of the list to qualify for a licence. The accused operators could have pulled out earlier by opting for a fine and a non-prosecution agreement, like Sportingbet did in the past. Its agreement with the DoJ in September 2010 specifically stated that the deal is no bar to Sportingbet entering the US market if and when such activities become legal.

The DoJ and a number of Senators have indicated in the past that operators who pulled out of the market in 2006 should be favourites to obtain a US licence, when the US Government allows such activities on its digital soil. It seems therefore that the three accused companies have not just lost today, but also tomorrow. It is not just one round that was lost, it’s game over, at least in the US.

Point of no return for Digital Economy Act

2011-05-18T09:48:00.004+01:00

London - UK internet service providers (ISPs) BT and TalkTalk have suffered a heavy blow in their battle against the implementation of the Digital Economy Act (DEA) in its current form, after the UK High Court ruled on 20 April that the most important elements of the DEA comply with EU law.

The controversial law, aimed at protecting the rights of copyright holders on the internet, does not conflict with any EU legislation or case law, Justice Kenneth Parker ruled.

BT and TalkTalk had challenged the DEA in court, because they detest a part of the DEA under which ISPs can be forced to disconnect users if intellectual property right holders believe their rights have been violated. The two large providers find it unreasonable that ISPs are being made responsible for the behaviour of individual users and could soon be forced to monitor their customers online.

BT and TalkTalk tried to convince the Court that the DEA breaches users’ right over the protection of personal data, but Judge Parker would not have it. He stated that information obtained from IP addresses - to locate and identify users - is personal data, but that it is acceptable for intellectual property right holders to use this information in case their rights are violated.

Justice Parker did rule that the DEA was unlawful in making ISPs responsible for certain implementation and enforcements costs; he decided ISPs will no longer have to pay for Ofcom - the UK media and internet regulator - to establish an appeals body, although the obligation to pay a share to help run the appeals system remains, as well as 25% of the costs of letters that are going to be sent to potential copyright infringers.

But this part of Parker’s ruling turned out to be insignificant when BT and TalkTalk’s main argument - that the DEA would mean a restriction of internet freedom - was wiped off the table. Parker ruled ‘Parliament has struck a balance’ between the protection of copyright and giving the public the right to access free content. He admitted ‘existing copyright legislation may strike that balance in a way that is controversial or open to criticism’ but he continued by saying that ‘in my view, Parliament, does strike a fair balance’. When BT and TalkTalk heard those words, they realised the game was up.

The 20 April ruling is a bitter disappointment for ISPs since it paves the way for the DEA to be implemented in its current form. Ofcom is in the process of writing a new code that will clarify the practical implementation of the obligation for ISPs to shut down users after they have received complaints from right holders, and after Parker’s ruling, there is nothing that can realistically stop Ofcom from doing so.

Some experts believe Justice Parker was getting a bit too political when he said ‘the DEA represents a more efficient, focused and fair system than the current arrangements’. BT and TalkTalk, like many other ISPs, obviously disagree, but there is not much they can do about it anymore. They have practically run out of options so it seems a new copyright regime with ISPs policing the web will soon be a reality.

TalkTalk, however, vowed not to give up and is considering taking the matter to the Court of Justice of the European Union. The ISP released a defiant statement: ‘We may have lost this particular battle, but we will continue fighting’.

Their statement came even before the House of Commons Culture, Media and Sport Committee announced on 3 May it will drop its investigation into the DEA. The Committee said that ‘in light of recent court action’ it will not longer investigate whether the DEA is the right mechanism to protect copyright on the internet.

Obviously, TalkTalk is done talking, when it becomes impossible to put your money where your mouth is.

Royal wedding reporting

2011-05-16T10:17:00.003+01:00

Some radio reports I did in the last few weeks for the Dutch station Radio 1 about 'the wedding of the century', Prince William and Kate Middleton tying the knot. When you click on a link, my sections (all in Dutch) start straight away:

A week before the wedding:
http://player.omroep.nl/?aflID=12442939&start=01:00:16

Wedding day:
http://player.omroep.nl/?aflID=12471262&start=01%3A18%3A40

The aftermath:
http://player.omroep.nl/?aflID=12510187&start=00:18:34

www.radio1.nl

If a link does not work, you can copy/paste it into your browser.

Fight against fraud drives global Chip and PIN uptake

2011-05-09T14:40:00.003+01:00

The use of Chip and PIN is on the rise. Europay, MasterCard and Visa (EMV)-enabled cards - cards that are embedded with a processor chip that contains data and require a PIN to complete a transaction - are to be introduced in Australia and China, while Canadian retailers are in the last stage of implementing EMV technology.

MasterCard Australia said in a 29 March statement that, from October 2011, ‘all new and re-issued MasterCard cards issued by Australian banks must be EMV capable and all point of sale terminals EMV compliant by April 2012’ and ‘all ATMs must be EMV enabled at the end of 2015’.

Matthew Kovac, Director of Wincor Nixdorf, welcomed MasterCard’s move: “Aussie banks are a little bit behind the times. There have been a lot of issues with skimming”. Oliver Barrett, Partner at Minter Ellison, was also positive: “This will change the Australian payment landscape for the better”.

Dr Raymond Choo, Senior Lecturer at the University of South Australia, stressed that “statistics have shown that Chip and PIN implementation has resulted in a decrease in card fraud” and predicts that “Chip and PIN in Australia might result in increased [fraud] displacement to neighbouring countries that had yet to implement the [EMV] technology”.

Chris Hamilton, CEO of the Australian Payments Clearing Association, also expects that “EMV will reduce the attractiveness of Australia to criminals,” but added that “it is not only a safety benefit. Chip offers greater functionality and flexibility than mag-stripe. Chip cards can be contactless and handle multiple applications.”

China and Canada
In China, Li Dongrong, Assistant Chairman of the People’s Bank - the country’s Central Bank - said on 4 April that Chinese banks should shift to EMV technology because “many fraudsters make use of the vulnerabilities of stripe cards, but we cannot come up [with] effective solutions to stop them”. Before June, most of China’s biggest banks - such as the Bank of China and the China Merchant Bank - are going to replace the magnetic strip equipment with cards containing the embedded chip.

In Canada, MasterCard and Visa will refuse liability from 31 March for fraudulent transactions carried out by retailers who have not implemented Chip and PIN technology - liability will shift to the merchant and consumer. Last September, the implementation was delayed by six months because of adoption issues.

Turn the page

2011-05-03T15:30:00.004+01:00

Google’s precious plans to create a ‘digital library’ with most of the world’s books available for all seems further away than ever after a New York City court ruled on 24 March it did not approve the Amended Settlement Agreement (ASA), a November 2009 agreement between Google, the Association of American Publishers and the Authors Guild.

Judge Denny Chin, of the US District Court for the Southern District of New York, said “the question presented [to the Court] is whether the ASA is fair, adequate, and reasonable. I conclude that it is not”.

The latest twist in the Google Book saga is a heavy blow for the internet giant, whose desire to digitalise most of the world’s books dates back to 2005, when it was first sued by a number of authors for copyright infringement after Google had started scanning the first books. Although the ASA was reached in 2009 - stating that authors’ consent to publish their books is presumed unless they explicitly object - a number of writers and publishers, as well as the US Department of Justice, kept rejecting the deal and said Google should operate on an ‘opt-in’ basis (consent should be given explicitly), rather than ASA’s opt-out regime. Following these objections, the ASA was subject to a ‘fairness hearing’ in February 2010 and Judge Chin ruled back then the deal could not be approved. Now, 13 months down the line, Chin has come to the same conclusion.

Once Google has swallowed the latest legal disappointment, it will realise it has become unlikely US courts are going to approve any settlement that continues to include an opt-out arrangement. In its current form, the courts simply won’t buy it. Judge Chin clearly stated that “many of the concerns raised in the objections would be ameliorated if the ASA were converted from an ‘opt-out’ settlement to an ‘opt-in’ settlement”. He ‘urged’ the parties “to consider revising the ASA accordingly”.

Undoubtedly, Google will do anything to prevent an ‘opt-in’ system. Under such a regime, it will take much longer to establish a ‘global online library’ - since Google will have to ask each and every author for their approval - it will be costlier (some authors will demand individual arrangements) and it will be impossible to include ‘orphan books’ - works that are still under copyright protection but whose right holders cannot be located.

What should have become a page turner, is slowly turning into a never ending story. Judge Chin has decided a ‘status conference’ will take place on 25 April, where Google can outline its next steps and everyone will get a taste of what the next chapter is going to be like.

Published previously in a London monthly magazine. Michiel Willems, March 2011. Copyights apply.

New EU consumer rights place ‘unfair burden on retailers’

2011-04-26T11:41:00.005+01:00

LONDON - Europe’s business community has responded negatively to a number of amendments to the Consumer Rights Directive (CRD), which were approved by the European Parliament (EP) on 24 March.

“[This is] a costly vote for businesses, and it shows that Members of the European Parliament (MEPs) have lost sight of one of the key objectives [of the CRD], which was to cut legal costs for businesses wishing to sell cross-border,” said Arnaldo Abruzzini, Secretary General of Eurochambers, representing around 1,200 European Chambers of Commerce.

Andrew McClelland, Director of Operations and Regulatory Affairs at the Interactive Media in Retail Group (IMRG), believes that “some of these amendments will have a terrible effect on the growth of e-commerce”.

Although a final vote has been postponed until an agreement with the Council of Ministers - representing the Member States (MS) - is reached, the amendments are ‘to protect online shoppers and boost consumer confidence in buying in other MS’ and ‘will be the basis on which MEPs will try to reach an agreement with MS,’ the EP said in a statement.

“The new EP position is bad news for businesses,” explains Nick Johnson, Partner at Osborne Clarke. “[Businesses] will have to incur significant costs, but with little benefit in return.”

New rules
Under the new rules, goods must be delivered within 30 days and consumers will have a 14-day EU-wide withdrawal period in which they may change their minds. The newly introduced Article 17 has especially angered many e-businesses, since it will make retailers liable for covering the cost of the return of a product valued over €40 after a consumer exercises their right to withdraw.

‘This places an unfair burden on e-retailers,’ the IMRG said in a statement. ‘For those sectors that have high return rates and low product costs, the potential losses could be catastrophic.’

Rohan Massey, Partner at McDermott Will & Emery, is not surprised many retailers have responded negatively since “the obligations [are] being placed on traders”. He predicts products are going to be more expensive since “traders will look to offset costs by increasing prices”.

Johnson agrees with this: “Of course, consumers will ultimately pay for all of this. Prices [will] go up. That, in turn, means EU businesses lose out to competitors in the US, Asia and elsewhere - hardly a recipe for job creation and economic growth in Europe.”

Michiel Willems. Published previously in E-Commerce L&P, London 2010. Copyrights apply.

2011-04-07T11:35:00.002+01:00

My latest radio 1 broadcast in the Netherlands - in Dutch. Click HERE and my item starts straight away.

www.radio1.nl

Alternatively, you can copy/paste the link into your web browser: http://player.omroep.nl/?aflID=12302726&start=01%3A01%3A32

Industry moves against EU Commission’s plans to regulate payments

2011-04-07T11:28:00.001+01:00

London - The European banking and payments industry is increasingly objecting to proposals by the European Commission (EC) to regulate the European payments landscape.

The European Payments Council (EPC), representing the European banking industry in relation to payments, has heavily criticised the EC’s plans. On 15 March, EPC’s Chairman Gerard Hartsink said: “It is not appropriate for the EC to take on the role of a de facto scheme manager and standard setter in the area of payments”.

Hartsink was referring to proposals set out by the EC in December for EU-wide end-dates for the migration of national credit transfers and direct debits to Single European Payment Area (SEPA) instruments. The EC’s plans also include a set of common standards and technical requirements that would be mandatory for all bank account payments in the Eurozone.

Hartsink said about the ‘interference’ of the EC: “It is simply not warranted or efficient that standards should be defined and evolved by law”.

“There are improvements [to the EC’s proposals] that we would want to see,” explained Michelle Whiteman, of the UK Payments Council. “We wish that the scope is set precisely”, while the European Banking Association expressed its ‘concerns’ on 24 February, in a letter to the European Commission, which pointed out ‘negative, unintended consequences’.

“I think the EPC has a point,” said Dave Birch, Consultant at Hyperion. “If the EC wants to take over standard-setting, then what was the point of the last decade?”

In December, the EC said it made the proposals ‘because self-regulation by the banks had failed, with minimal take-up of new payment instruments evident’. Birch believes “the EC should focus on competition issues [instead], because these are the way to exploit new technology to make payments services better".

The EPC, backed by most European banks, remarked in its Annual Activity Report: ‘Self-regulation by banks provides the most efficient means to create innovative, effective and secure payment systems’. Hartsink stressed that ‘self-regulation represents the established approach in all national banking communities’.

John Worthy, Partner at Field Fisher Waterhouse, believes that although “banks will be keen to avoid extra regulatory intervention on SEPA”, the EPC “may need to work hard to make the case, given the perceived weaknesses of self-regulation resulting from the financial crisis”.

Published previously in E-Finance Magazine, Michiel Willems, London 2011, Copyrights apply.

Streaking

2011-04-07T11:15:00.003+01:00

A radio item I did on Radio 1 in the Netherlands the other day - in Dutch, about Mike Roberts, the most famous streaker in the world. Click on the link HERE and my item starts right away

www.radio1.nl

Alternatively, if the link does not work, you can copy/paste this URL
http://player.omroep.nl/?aflID=12174200&start=00%3A37%3A40

Some of my tweets this week...

2011-03-25T15:36:00.002Z

www.twitter.com/michielwil

30 minutes of fun, 30 years on the meds. The number of HIV infections in the UK has doubled in the last 10 years - http://alturl.com/723z7

Watch you step after one sangria too many - quite the pavement http://alturl.com/426vt

Ladies and gentleman, please fasten your seat belt. Except for Pete the Penguin - http://www.youtube.com/watch?v=DoHcO5GqsLk

Wedding bells: best day of your life? Not on this video -- http://alturl.com/wifzs

Thailand - She = he. Subtitles start after the song; undoubtedly the raunchiest jury ever -- http://www.youtube.com/watch?v=zFeP87rbKzM

Watford swan: the blog of an English girl at a top Russian ballet school.. and she's from Watford - http://natcarter.wordpress.com/

South Africa’s e-businesses are preparing for new Consumer Act

2011-03-21T17:47:00.004Z

South Africa is preparing for a new consumer protection regime, since the Consumer Protection Act (CPA) is set to come into force on 1 April 2011.

The CPA, which was signed into law in April 2009, “is not just another Act,” said Gerrie Van Gaalen, Partner at Van Gaalen Attorneys. “It will ensure that suppliers deal with consumers without withholding important information.”

The CPA sets out strict rules for businesses and creates a number of consumer rights, such as the right to inspect goods and the right to information. Fixed-term agreements will have to be in ‘plain and understandable language’ and courts will get the power to redraft consumer contracts.

“The CPA will oblige e-commerce sites to abandon the practice of providing bare minimum or often just generic information about items, stock availability and delivery terms,” said Godfrey Parkin, CEO of Britefire. “And businesses will now have to take the privacy and security of customer data very seriously.”

Many e-businesses are in the process of reviewing the text of standard agreements, terms and conditions, and are rethinking the wording of their marketing. “They are also scurrying to try to get their mailing lists in order, since South Africa has never had anti-spam legislation with any teeth,” said Parkin. “There is a lot of scrambling taking place to try to be compliant before 1 April.”

This is not a surprise since “failure to comply could lead to jail time or a fine, which could be as much as R1 million, or 10% of annual turnover, whichever is greater,” explains Simone Monty, Partner at Eversheds.

Published previously in E-Commerce Law & Policy, March 2011. Copyrights apply.

Opinion: Facilitating problems online

2011-03-11T13:55:00.002Z

The UK Gambling Commission (GC) presented its British Gambling Prevalence Survey 2010 (BGPS) on 15 February - the first specific data on the current state of play of the gambling market in the UK since the enactment of the Gambling Act 2005, in September 2007.

One of the most remarkable conclusions of the GC is that nearly three quarters (73%) of adults in the UK gamble. Whether offline or on the net, playing the Lotto twice a year or spending days on end at William Hill, it is a significant increase compared to 68% in 2007.

“The survey confirms that there is a significant and growing number of people who take part in gambling”, said Brian Pomeroy, the GC’s Chairman, highlighting the importance of the GC’s work and therefore supporting its existence, in response to reports published in October 2010 urging the UK Government to abolish the GC, or at least to merge it with another commission at the Department for Culture, Media and Sports.

Those who thought gambling is a man’s world, should think again. The GC found that more women than ever before have found their way to a casino, whether on- or offline. The BGPS generally shows that gambling has become more accepted and more mainstream.

The question as to whether the UK Gambling Act 2005 has contributed to this change - whether the law facilitates gambling, or in other words whether gambling facilities are too easily accessible in the UK - was raised at the press conference for the presentation of the Survey on 15 February in London.

Not surprisingly, it was ‘not the Gambling Commission’s task to answer that question’. However, the BGPS could not deny that the number of problem gamblers in the UK has gone up significantly in the last three years, from 0.6% of the adult population in 2007 to 0.9% in 2011, which means that more than 150,000 adults have become new problem gamblers since 2007. Interesting numbers if you keep the economic crisis, pay freezes and rising unemployment figures in mind.

Whilst the number of adults placing a bet might have gone up, online gambling figures are nowhere near those spectacular numbers. Even though 17% of all gamblers said they play offline as well as on the net, only 2% of the adults who gambled last year did so exclusively online. Although there are no concrete figures, the GC said many of the (new) problem gamblers fit in this category: ‘in an offline casino, someone can be stopped, his age can be verified or if he had one drink too many he can be sent away. On the net, that is impossible’.

Published previously in World Online Gambling Law Report, February 2011. Copyrights apply.

Betsson’s China move fuels market opening speculation

2011-03-11T13:52:00.001Z

Swedish operator Betsson announced on 8 February it ‘has established a business relationship with a local company in China which has set up a joint venture (JV) in the sports lottery related industry together with a Chinese state owned company’, the company said in a statement, fuelling speculation that China is beginning to open its online gambling market.

Paul Davis, Managing Director of Counting House, is “not sure whether this move signals an opening of the market, but at least it signifies a willingness to put a toe in the water and test the temperature, something that appeared very unlikely for years”. Davis expects other operators to follow “almost certainly, although the supply of suitable [Chinese] partners may be found very thin indeed”.

Wei Zhang, Partner at Jun He, is more sceptical: “Even though the online sale of two types of lotteries are now permitted, we cannot reach the conclusion that online gambling will be allowed in the near future, as this is against the political and moral guidance that one should get rich through hard work”.

Currently, only welfare lotteries and sports lotteries are legal in China, which boasts the largest and fastest growing number of internet users in the world. “I believe that the authorities will fully understand our structure and will continue and support it, by issuing a sale permit to this JV in due course”, said Pontus Lindwall, CEO of Betsson.

In China, all gambling activities are controlled by the state - that is why “Betsson's choice of partner should be highly scrutinised, it almost certainly brings government involvement in the market with it”, said Nao Matsukata, Senior Policy Advisor at Alston and Bird LLP. Davis thinks this is actually an advantage: “For two decades the route to sustainable business development in China has been through joint ventures with local businesses”, he said. “[Betsson’s] choice of partner is commendable in that closeness to government is one of the best guarantees of continuity.”

Matsukata points out other issues: “Considering Beijing's strict control of the internet, there are bound to be privacy and data security issues for online gamblers of the services that Betsson may come to offer”, he said. “Consumers and service providers will both eagerly wait what model it develops to protect sensitive information.” Betsson did not disclose the name of the Chinese ‘local company’ it has established a relationship with.

Published previously in World Online Gambling Law Report, February 2011, London. Michiel Willems, copyrights apply.

FB launches credit-only payment tool

2011-03-11T13:43:00.003Z

The social networking site Facebook has announced it will make Facebook Credits (FC) – the site’s online currency – the single buy-in point to convert real money into credit that can be spent on games and other applications.

Facebook confirmed on 25 January it is planning to force game developers to only accept the FC currency as a payment method on the website. All social game developers (such as the immensely popular Farmville) will have to comply by 1 July.

Although developers can still use their own ‘in-game’ currencies, it does mean that consumers will be required to process the transactions with FC. Facebook works with more than 350 applications and 150 developers.

“The new requirement is a natural progression in the growth of Facebook's brand”, said Mark Herpel, Editor of DGC Magazine. “Requiring a ‘one-size-fits-all’ currency reduces the barriers of entry and should greatly benefit developers. I do envision a ‘pay with [FC]’ option in the near future where this virtual currency can be used in third-party websites to buy physical goods.”

Published previously in E-Finance &PL&P, February 2011. Copyrights apply.

Telefónica and MasterCard bring m-payments to South America

2011-03-11T13:40:00.002Z

MasterCard and Telefónica announced on 25 January they will introduce mobile payments in 12 countries in South America (SA).

The US payment service provider and the Spanish mobile phone operator said in a statement that a joint venture will ‘offer mobile financial solutions’ through Telefónica’s Movistar network, one of the biggest in SA. Services such as bill payments and retail purchases will be linked to a mobile wallet or prepaid account in, among others, Argentina and Mexico.

“A first of its kind with that scale in Latin America”, said Aiaze Mitha, CEO of Amarante Consulting. “This venture has the potential to transform the payments landscape [in SA].’’
Eduardo Ferrari, Partner at Posadas, Posadas & Vecino in Uruguay, thinks the initiative “is very significant because of the magnitude of the investment and the lead role of its participants in their respective fields as it provides a brand new service”.

The joint venture could be a big step forward in making banking services accessible to millions of unbanked people, since 70% of South Americans do not have a bank account but most of them do own a mobile phone. “It sends a very strong message to the [SA] industry”, said Aiaze Mitha. “A card association is willing to partner directly with mobile operators and align their strategic interests to conquer the unbanked market.”

“The cell phone market has reached costumers of all different ages and asocial structures”, added Ferrari. “There are currently more cell phones than inhabitants in Uruguay.”

Published previously in E-Finance &PL&P, London, 2011. Copyrights apply.

Anger over usage-based bills and small ISP caps in Canada

2011-03-11T13:38:00.000Z

A ruling by the Canadian Radio Telecommunications Commission (CRTC), the country’s telecoms and internet regulator, has outraged many Canadians and turned usage-based internet billing (UBB) - bills based on internet usage per month - into a national issue.

The CRTC decided on 25 January that internet service providers (ISPs) could continue charging customers for exceeding their monthly broadband allowance. However, following the negative response from the public, the independent regulator released a statement on 3 February stating that the ‘decisions were set to take effect on 1 March, but in light of the evident concerns expressed by Canadians, [the CRTC] has decided to delay the implementation by 60 days’ and ‘launch a review’. Industry Minister Tony Clement said it will “not [be] acceptable for the government” if the decision remains unchanged. Clement said earlier that UBB would ultimately lead to “more competition and lower prices”. Most bills, however, have risen sharply since September 2010, when the CRTC allowed large ISP Bell to start billing its customers for exceeding their monthly broadband allowance.

The ruling has reignited the debate about UBB in Canada. The Vancouver Sun wrote that ‘[UBB] will artificially inflate the costs of online access’, while Michael Hinka, commentator for CBC, said UBB would be “fairer for light users. Pay for what you use.”

“Customers who don’t use much may prefer a pay-per-use model. However, that does not appear to be the view of the majority”, said Chris Bennett, Partner at Davis LLP. “The public backlash against the decision has been significant. As a result, there appears to be strong political support for reconsidering the decision.”

Another issue is the position of smaller ISPs. Although the CRTC ruled that Bell has to offer its wholesale customers - smaller ISPs who ‘rent’ space on Bell’s network - a 15% discount when exceeding their limits, it can impose a cap on these limits, limiting smaller ISPs’ use of networks. “[The ruling] will make it difficult for smaller ISPs to differentiate their services and stifle competition”, said Bennett. “That is an issue because there is already very little competition in Canada.”

“The industry in Canada is essentially an oligopoly”, explains Bernice Karn, Partner at Cassels Brock, while Martin Kratz, Partner at Bennett Jones, wonders “whether a discount is sufficient to permit wholesale operators to survive and differentiate themselves.”

Published previously in E-Commerce L&P, February 2011. Copyrights apply.

Talk like an Egyptian

2011-02-23T17:38:00.003Z

The 1987 Bangles’ hit ‘Walk Like an Egyptian’ might have been adopted as an inspirational song during the recent protest in Egypt, it was not so much walking that gave the world a glimpse of what was happening in the country.

On 28 January, the Egyptian Government abruptly blocked all internet access, bringing online traffic in the country to a standstill. Hours after net activity in Egypt dropped to zero, Google realised this was a unique opportunity to try out SayNow, the voice technology company it had acquired only days earlier. SayNow’s engineers and the social networking website Twitter worked non-stop over the weekend and, as a result, a new service which managed to circumvent the internet ban was launched on 31 January. A system called ‘Speak-to-tweet’ gave Egyptians the chance to post messages online without the need for a computer or an internet connection. Via international telephone numbers in the US, Switzerland and Bahrain (+16504194196, +390662207 294 and +973161 99855), callers can leave a voice message. The spoken message is then converted into an electronic message and published as a ‘tweet’. Conversely, people are able to listen to messages by calling the same phone numbers, an effective way to obtain information about protest times and venues.

The new service might have frightened some authoritarian regimes around the world, it certainly made a huge impression on the e-commerce industry. Surely, the conversion of a voice message into an electronic post already existed, but never before was it carried out on such a large scale, with thousands calling in at the same time. Google and Twitter could not have wished for a better way to promote their new service.
Many industry specialists speculated on the net and in European and American media whether the voice service should be seen as a major step forward in the development of electronic information exchange. In the near future, will it be possible to send an email or statement from a deserted mountain or remote island, without the need for a computer or internet connection? As long as there is a (satellite) phone and one can speak, preventing the posting of online messages will almost be impossible. The system could benefit certain groups in society as well; think of the blind, the dyslexic, the illiterate and the elderly.

Naturally, legal issues will arise. To leave a voice message, for example, there is no need for an account, so everyone can say anything about anyone without knowing who said what, and this can have consequences if Twitter’s filters do not pick up certain comments. Will the introduction of a mobile phone account or the need to have your number registered be an idea for the future? This needs to be worked out, but the system has potential, since ‘Speak-to-tweet’ has made the industry realise this new technology creates commercial opportunities and makes it much harder to silence an active internet community, as long as there is a phone.

Published previously in a London based publication. Copyrights apply. Michiel Willems (c) 2010

OFT announces crackdown on product endorsement blogs

2011-01-28T11:46:00.001Z

London - The UK Office of Fair Trading (OFT) has begun a crackdown on users of social networking website Twitter who endorse products and brands without clarifying whether they have been paid for their online remarks.

Enforcing the Consumer Protection from Unfair Trading Regulations (CPRs), the OFT said in a statement on 13 December: ‘Online advertising and marketing practices that do not disclose they include paid-for promotions are deceptive under [CPR] fair trading laws. This includes comments on blogs such as Twitter’.

The announcement follows a July 2010 OFT investigation into whether PR firm Handpicked Media (HM) had paid bloggers to write exclusively about the firm’s clients. “[The OFT] wanted to make an example of us”, said Krista Madden, of HM. “The public should be smart enough to realise when it is a genuine tweet. It will be hard to monitor [paid posts]. Celebrities have been given freebies, gifts and jollies for years without having to declare them.”

“Under the CPRs, [this] can be regarded as an unfair commercial practice”, said Oliver Bray, Partner at Reynolds Porter Chamberlain. “Brands need to make clear when promotions have been paid for or there is a very real risk of enforcement action by the OFT.”

In the US, the Federal Trade Commission demands that paid posts contain the words ‘ad’ or ‘spon’. This requirement does not exist in the UK. “The key here is transparency,” said Nick Johnson, Partner at Osborne Clarke. “The US short-form disclosures are an efficient way of achieving that.”

Published previously in E-Commerce L&P magazine, London 2010. Copyrights apply.

Gambling markets in 2010 - a global view

2011-01-10T16:24:00.003Z

This year started with a sigh of relief for UK-based operators, when, in January, the UK Government took away a competitive advantage for offshore businesses and proposed a licencing regime for foreign gambling operators. While the Chinese cracked down heavily on gambling a month later, the French rolled out their plans for ‘controlled liberalisation’ when ARJEL, the French authority in charge of online gambling, disclosed new licensing requirements.

In March, a new Bill banning payment processors from accepting online gambling payments was signed into law in Norway. In the UK, with the general elections just a month away, the Horseracing Levy became an election topic in April when the Labour Party announced it would force offshore operators to contribute to the Levy and pay taxes, while the Conservative Party called the system ‘outdated’.

While regulation at European-level seemed further away than ever, the Council of Ministers of the EU did manage to agree on a common definition of ‘illegal gambling’ in May. The European Commission (EC) finally closed a series of legal cases against Italy: on 5 May the EC stated it no longer had any objections against a new gambling law allowing Italy to open its online sports betting market to foreign operators.

Attention shifted away from Europe in June when the Australian Government rejected the advice of one of its own commissions to regulate online gambling. Further up, the Antiguan Prime Minister was considering imposing sanctions on the United States following the long-standing dispute over Antiguan operators on the US market. The South African market came to an abrupt standstill when a court ruled on 16 August that online gambling operators, payment processors and internet service providers were in breach of the country’s National Gambling Act and they could no longer operate without the risk of prosecution.

Hope in the US for the regulation of the market reached an all-time high in August when the House of Representatives Financial Services Committee approved HR2267, the ‘Barney Frank Bill’. Six months and an election later, however, it seems very unlikely online gambling will be legalised anytime soon. The optimism of August did encourage companies to strike deals with the US though. Sportingbet and the US Attorney's Office in New York reached a non-prosecution agreement in September. The London-based company paid the US a $33 million fine, and will not be criminally prosecuted for providing gambling services to US customers. A month later, the US announced it was going to put forward proposals to require financial institutions to report all electronic transfers in and from the US, even very small amounts of money, from 2012. This would make it much easier for law enforcers to pick up (illegal) gambling transactions.

Back in Europe, the EC notified Romania in October it could not accept the country's draft gambling law. Only last month the new Australian Government surprised the gambling industry by appointing an expert panel while postponing the introduction of the controversial and much-talked about internet filters, possibly until 2012. This month, the new Danish law came under scrutiny of the EC, with the investigation undoubtedly to be continued in 2011.

Published previously in World Online Gambling. London, 2010. Copyrights apply.

Reid pushes for e-gambling Act in ‘lame duck’ Congress

2011-01-10T16:20:00.004Z

US Senate Majority Leader Harry Reid (Democrat) confirmed on 7 December he is pushing for a last-minute Bill to legalise online poker in the US. “Senator Reid is working to find a way to get it done”, his Spokesman said. While the text of the Bill has not been made public, members of Reid’s team have been circulating a 57-page document since late November, proposing to amend the Unlawful Internet Gambling Enforcement Act - which bans online gambling in the US.

To increase the chances of success, it is expected the Bill will be ‘linked’ to another piece of legislation and will be introduced before 5 January, the end of the ‘lame duck’ session - the period between the election and Congress’ new term. After that, chances of success will dwindle rapidly since a majority of newly elected Members - mostly Republicans - opposes online gambling. Under the proposals, internet poker games could only be offered by operators of existing bricks-and-mortar casinos. Most of these businesses are located in Las Vegas, Nevada, Reid’s home state. That explains why “Reid will do whatever it takes to protect and advance this proposal”, said Elizabeth Corey, Partner at Foley & Lardner LLP. “He will look for any vehicle to attach this gaming proposal to.”

The American Gaming Association (AGA) has welcomed Reid's proposals. “This is law-and-order legislation...a solid regulatory framework,” said Frank Fahrenkopf, the AGA’s Chief Executive. Supporters of Reid, mainly gambling businesses and Nevada politicans, have claimed the proposed legislation would bring in more than $3 billion in tax revenue and will create thousands of jobs.

While it is far from certain whether the new Bill will be passed before Republicans take control of Congress in January, “Reid does for online gamblers in one week what Frank could not do in four years”, wrote Larry Rutherford, Staff Editor at CasinoGamblingWeb.com, on his popular blog.

A number of Republicans, however, wrote in a public letter to Reid on 1 December that “creating a federal right to gamble requires careful deliberation, not back-room deals or earmarks for special interests”.

Corey believes that “Reid has lost the element of surprise and faces continuing opposition. But Reid is a fighter and he gives as good as he gets,” she said. “We all know stranger things have happened as Congress rushes to adjournment.”

Published previously in World Online Gambling. London, 2010. UK Copyright laws apply.

Twenty Ten

2011-01-04T12:11:00.000Z

- 2010: an e-commerce year to remember -

The year kicked off with a victory for manufacturers of luxury products keen to protect their brands, when, in February, a Paris court ruled that eBay should compensate Louis Vuitton for facilitating the sale of counterfeit Louis Vuitton products. Although another case in which a UK court ruled that eBay was not liable for listing fake L’Oréal goods illustrated the battle of ‘the brand owners v counterfeiters’ is far from over, 2010 should be considered as a year in which copyright infringements and counterfeiting were taken more seriously than ever before.

Many countries, like the UK, France, Ireland and South Korea, passed new or updated laws aimed at combatting online piracy more effectively by creating a more defined framework for copyright breaches on the net. In the UK, the controversial Digital Economy Act (DEA) came into force in June and a highly symbollic copyright agreement with China - the biggest infringer - was signed. Enforcement is still considered to be one of the biggest challenges, so many welcomed, in November, the publication of the final draft of the Anti-Counterfeiting Trade Agreement, aimed at establishing standards on intellectual rights enforcement. The US, in the meantime, has taken its own approach and has, without a court order, started shutting down file sharing websites.

It was certainly also a year in which Google dominated the headlines. Its controversial AdWords policy, the data protection and copyright agreements with a number of countries and groups, and the announced investigation into possible abuse in the online search market in Europe all made the headlines. But it was not only bad press for Google: its advertising revenues rose to $25 billion this year.

And 2010 might go down as the year free online news saw the beginning of the end. In July, Rupert Murdoch put his collection of newspapers The Times, The Sunday Times and the Financial Times (FT) behind a paywall. Although unique readership numbers have fallen significantly - readership has fallen around 90% - it seems publishers are starting to see the lucrative side of it: in December, the FT reported The Telegraph Media Group (publisher of The Daily Telegraph) will launch a similar scheme in the New Year, with others expected to follow.
Television also made a digital jump forward. Google launched its Google TV service in November and the UK High Court ruled, in the same month, that the activities of a TV streaming website are covered by copyright law despite the fact that it is not a broadcaster itself.

In publishing, more books were sold online than in traditional bookshops and 2010 was the year of the ‘e-reader’. When the year kicked off, Kindles and Nooks sold impressively well on Amazon but the launch of the Apple iPad in April was an outright, unrivalled milestone. With three million devices sold in the first 80 days, it was undeniably the e-commerce hit of this year.

Published previously in E-Commerce Magazine, London 2010 (C) Copyrights apply

2010-12-01T13:14:00.004Z

Winter
Icy temperatures, arctic winds and snow showers might disrupt many tube and train lines in Greater London - forcing thousands of commuters to find alternative transport or walk for miles through icy winds - it sure delivers some picturesque pictures and marvelous scenes. All around northern Europe temperatures have gone down and snow showers have been reported. This picture, taken by two unnamed students, is a scene in Finland. Winter has arrived early this year.

Future of the cheque in the UK

2010-12-01T12:59:00.001Z

MPs: keep the cheque in the UK after 2018

A group of UK Members of Parliament (MPs), headed by Liberal Democrat MP David Ward, has launched a campaign to ‘save’ the cheque.

On 2 November, Ward introduced a Bill that would bring cheques under the consumer protection scope of the Financial Services Authority (FSA) and urged banks to re-think the proposals to abandon the cheque in 2018, introduced by the UK Payments Council (PC) in December 2009.

“[Abolishing the cheque] is a stitch-up by the banking industry, who have shirked every opportunity to modernise the system, and will be the main winners from its abolition”, Ward said on his website. “It is disgusting that a group with such vested interests in getting rid of cheques should be entrusted with this decision.”

Ward, and a number of other MPs from different parties, have claimed that eliminating the cheque will have a major impact on small businesses and it could hit the elderly as well as visually impaired people.

Ward’s Bill will be discussed in Parliament in June 2011. In December 2009, the PC and its members voted to stop clearing cheques by 31 October 2018.

Published previously in E-Finance & Payments Law & Policy Magazine, November 2010. Copyrights apply

Pilot plan to harmonise payment infrastructure in Southern Africa

2010-12-01T12:56:00.001Z

The Central Banks of 15 states in southern Africa will complete a pilot project to harmonise the payment infrastructures of the four countries with the ‘Rand’ currency within two years.

The Southern African Development Community (SADC) - an intergovernmental organisation which aims to improve economic integration - is built on the Single European Payments Area (SEPA) model, as Tim Masela, of the South African (SA) Reserve Bank, said on 25 October: “There is a common currency target for the region of 2018 and we want to make sure that any new infrastructure can support it. The experience in Europe is very useful”.

The pilot comprises of two phases. Firstly, the Central Banks of SA, Namibia, Swaziland and Lesotho will harmonise existing bank and payment systems. In the second phase, integration will be expanded to Congo and Zimbabwe.

“It’s an important move and very good for SA”, said Simon Cavill, Director of Strategy at Mi-Pay. “The first phase will be easy to implement as the countries have historically been close toSA, but it will be challenging to align countries with radically different political and economic structures.”

Not everyone thinks SEPA should be an example. “Let’s hope that SA keeps this as a business-led project and does not get tied up with politics and red tape like in the EU”, said Gary Wright, of BISS Research.

Cavill remarks: “I can see the value for SA, as the commercial powerhouse of the region, but what's in it for the smaller countries?”

Published previously in E-Finance & Payments Law & Policy, Michiel Willems 2010. Copyrights apply

UK: No harmonization of consumer protection at EU level

2010-12-01T12:53:00.001Z

The UK has indicated it will oppose a strict harmonization of consumer protection legislation in Member States, the Department for Business, Innovation and Skills (BIS) said on 19 October.

"Minimum harmonization...would enable Member States to apply their own rules. The UK would be free to regulate this matter internally in domestic law", the BIS said in the 'Negotiating Line for the Consumer Rights Directive' Report.

The Response Report - the outcome of a consultation launched in July - makes clear the UK is not in favor of a stringent Consumer Rights Directive, which is currently being negotiated and will replace four existing Directives.

“The current EU legislative patchwork on consumer protection is overly complex and has its flaws", said Rohan Massey, Partner at McDermott, Will & Emery. "But in trying to harmonize, the EU runs the risk of removing protection currently given to consumers in certain jurisdictions. This is one of the UK's key concerns, which currently has one of the more robust regimes."

Jill Johnstone, of Consumer Focus, said: "UK consumers risk losing out if maximum, not minimum harmonization is adopted".

The European Commission (EC) believes strict harmonized legislation is necessary to increase cross-border online retail - last year, less than 2% of the total European retail trade. In August, when the EC launched a consultation about the future of e-commerce in the EU, it said 'a lack of confidence was holding back the development of the e-commerce market'.

“To increase cross-border trade in e-commerce, there needs to be greater standardization of legislation", agrees Massey. "But any attempt by the EU that results in a reduction of mandatory consumer protection will be met with strong political resistance locally."

Ben Allgrove, Partner at Baker & McKenzie, thinks the UK should not go its own way: "For online businesses, national regulation is actually a barrier. You need to consider and comply with 27 Member States' consumer protection regimes, which is costly to do".

Stephen Groom, of Osborne Clarke, believes enforcement should be on top of the agenda. "Enforcement is virtually ignored. There are still enormous disparities across the EU in how laws are policed and enforced." Groom continues: "How about a halt on any new laws at UK and EU levels until enforcement of existing consumer protection laws is given proper attention?"

Published previously in E-Commerce Law & Policy Magazine, London. Michiel Willems 2010. Copyrights apply.

World gone mad: 'Should this woman have an abortion? Vote now'

2010-11-19T10:09:00.002Z

The fate of an unborn child might be decided by a number of anonymous online web users, after a married American couple set up a website inviting people to cast their vote on whether the woman should have an abortion.

Alisha Arnold and her husband Peter, who live in the American city of Minneapolis, are unsure if they can combine parenthood with full-time careers and have decided to let the public make the decision for them. Now Alisha is 17 weeks pregnant the decisive moment is slowly approaching: the last votes will be counted on December 7, two days before she reaches the 20-week cut-off for a legal abortion in the State of Minnesota.

They upload scans and pictures of the foetus regularly and doctors have told them it is a healthy boy. On her website, Alisha asked herself: “we vote on everything from president to American Idol, so why not to continue or abort a pregnancy?”

Visit www.birthornot.com to cast your vote

City life can be a lonely bitch

2010-11-11T12:01:00.007Z

Yesterday night I watched a show on tv called Royle Family: behind the Sofa - on GOLD Channel - where they discussed a recent survey about family life in the UK. The presenter disclosed that family units in London are the most lonely and isolated of all 92 counties in the United Kingdom. Surprised?

According to the survey, more than 20% of London teenagers said ‘not to respect their parents at all’ and an equal proportion does not get along with siblings. Compare that to the north (Yorkshire, Cumbria, Durham, Northumberland) where a fifth beyond the age of 24 still live with their parents. And in the midlands (Leicestershire, Warwickshire, Derbyshire, Cheshire, Shropshire) this is even a third (34%).

In the south, however, more than 40% has left home by the time they turn 20 and that percentage is even higher in London. This surprised me, since the average London lifestyle is – by far – the most expensive in the UK, if not in the whole of Europe. Having said that, the presenter gave as one of the possible explanations that education levels in the north are much lower, and that more people in the south have a degree. People with higher education qualifications tend to move out sooner (for example, when they go to uni or for a job change) and, generally, earn more money - so they have the funds to move out.

In Newcastle or Preston, parents are ‘lucky’ compared to the south, more than 20% of northerners claim to visit - or be visited by - their parents every day, a figure that is less than 10% in the south. Overall, families in the north spend more time together and argue less frequently, the presenter continued. They also share more interests than people in the south.

Christmas: family time? With Christmas coming up in less than seven weeks, the research showed that northern family units will be spending the most time together, over 65% will spend the holidays in the company of their (extended) family, compared to less than 40% in the south. And it’s not just during Christmas, 60% of the northerners enjoy a family meal at least three times a week - in the midlands even 65% - compared to relatives in London, where only 1 in 3 has a ‘regular weekly family meal’.

The programme said the survey had merely focused on British-born residents with most of the extended family living in the UK. If the large immigrant, foreign and expat communities in the British capital – to whom I belong – were included in the examination, figures would have been even lower, since most of their families are based overseas, which makes it is impossible to ‘stop by for a chat’ or have a family meal three times a week.

While the presenter was busy making his slot remarks, I tried to justify this given fact by concluding that family time should be about quality, not quantity. A lame excuse perhaps, but it still works for me.

Royle Family: behind the sofa - every Wednesday at 9 pm - GOLD Channel

Time out (for US' online gambling industry)

2010-11-05T15:05:00.000Z

Since 2009 there have been glimmers of hope the United States might move towards a legalisation of online gambling. Since the online market was outlawed in 2006, huge efforts have been made to bring back online gambling.

Expectations in and outside the United States were raised with the introduction of two bills in Congress in the last 18 months. The Democrat Barney Frank submitted in May 2009 HR2276 and not long after that his fellow Democrat Robert Menendez introduced S1597. Both legislative pieces aim to bring online gambling activities back to the US and would make it possible for operators to re-enter this potentially lucrative market under strict requirements.

Operators and businesses became increasingly hopeful on 28 July of this year, when the Financial Services Committee of the House of Representatives approved Frank’s Bill. Many in favour of regulation believed legalisation had become a serious possibility and though the financial climate – the US being desperately in need of funds and the federal government’s active search for new revenue sources – could be the final push to a ‘yes’ vote.

Three months down the line, however, many experts believe it is unrealistic to expect any bill to succeed anytime soon. Speculation might have been building and a number of legislative proposals submitted, but the moment has passed.

With the mid-term elections in less than a month, the chance of any legislation being passed before the elections is practically zero. “I’m not optimistic”, Frank said last month, pointing out that the busy House of Representative Fall schedule simply does not allow a vote before the elections.

If the outcome of the elections will indeed be a reflection of the current polls – Republicans are expected to win and the Democrats to lose their majority in both houses - things are not looking good for those in favour of regulation. Not one leading Republican has plans to overturn the legislation passed in 2006, the Unlawful Internet Gambling Enforcement Act, which banned online gambling in the US.

Most Democrats ignore the issue or have spoken out against regulation, since many American voters believe (online) gambling to be immoral and see it as a dangerous spare time activity. After the elections, no heavyweight in US politics - Democrat or Republican - is expected to put regulation of online gambling on top of the agenda anytime soon, certainly not in the run-up to the presidential election in 2012. It is simply not a priority. Frank and Menendez will become lonely voices at Capitol Hill and their bills will in all probability be buried in the bottom drawer. Realistically, that means the next opportunity for a serious attempt to regulate will most likely not take place until the Spring of 2013.

The information in this editorial might be outdated, since it was first published in World Online Gambling Law Report magazine, London 2010. Copyrights apply.

Business unusual

2010-11-02T15:21:00.005Z

China is well-known for the trade of exotic animals, and parts of the animals. Think of rhinoceros horn or bear bile. Now sea turtle guitar picks are being offered too. Last week Qing Song was convicted by a Californian Court to violate US laws, because she had imported turtle shells of the hawksbill turtle as well as guitar picks from China. Judge Breyer has ruled she has to spend 10 months in prison, pay a $2000 fine for her remarkable business activities and has been forbidden to ever sell the animal - or parts of it - again.

The Hawksbill turtle is very rare and hardly seen. It is considered to be one of the most endangered turtle species in the world and is listed under the Endangered Species Act in the United States. They are considered to be 'extremely endangered' - one step above being extinct in the world.

http://www.ticklethewire.com 2010 (c)

Changing channels

2010-10-25T10:59:00.004+01:00

Google’s announcement this month, that its new online TV service will go live on 1 November, should be seen as an important day for the future development of television. On 4 October, the internet giant reached agreements with most major US channels - such as HBO, CBS, NBC and Cartoon Network - to broadcast their shows on Google TV. Under the agreements, NBC will provide news, HBO drama and comedy and Amazon Video on-Demand will offer access to around 75.000 movie titles.

Many experts see this move as television’s long-awaited online breakthrough. The time viewers just watched broadcasts passively could soon be over. Online channels allow viewers to interact and connect with many of their favourite web services, so it comes as no surprise that Boo-Keun Yoon, Vice President of Visual Display at Samsung, recently said that Google TV “is no doubt the future of TV".

For Google, the TV service is a new way to sell advertising, and television companies aim to capitalise on growing demand for content that combines internet features with TV programming. Selling products related to a popular show or its participants is a goldmine for advertisers.

With the global reach of the internet and behavioural advertising methods, online channels have the potential to change the TV advertising landscape forever, but it will have legal implications, too. It raises issues regarding the applicable law: is it that of the country where the server is based, where the studios are or where the shows are made? Operating from a foreign jurisdiction, for example, can have huge advantages for television businesses. What will OFCOM’s role in the UK be if most Britons watch foreign-based online TV channels?

And countries with a licence fee - such as the UK, Holland and Italy - will have to review their definitions if they wish to maintain the tax in such a new TV environment. Current UK laws require that viewers need ‘to be covered by a licence [to] watch TV online at the same time as it is being broadcast on conventional TV`. What if there is a delay of five minutes, or new online channels start broadcasting shows that are not shown on conventional (UK-based) TV stations at all?

As long as new online TV channels do not breach any copyrights, the influence of current UK legislation – such as the Digital Economy Act - is limited. Perhaps it is slowly time for the UK Government to start thinking about an ‘online TV licence regime’, with a key role for the national internet service providers who, after all, grant online viewers the access to watch. Conventional is suddenly so yesterday.

Published previously in E-Commerce Magazine, London, October 2010. Copyrights apply.

Mario Vargas Llosa

2010-10-07T13:55:00.006+01:00

Today, it was announced that the Peruvian writer Mario Vargas Llosa has won the Nobel Prize in Literature.

The Arequipa-born writer, who once ran for President in Peru but lost the elections in 1990, is one of the most acclaimed writers in the Spanish-speaking world, a man of letters who also braved the violence and political divisions of Peru and had to courage the enter the political arena in a time that assassinations, kidnappings and disappearances were not uncommon. Some critics consider him to have had a larger international impact and worldwide audience than any other South American writer. Many of Vargas Llosa's stories are influenced by the writer's perception of society in Peru and his own experiences as a native Peruvian.

Years ago, I must have been in the summer of 2006, I read one of his best known books, The Feast of the Goat, and enjoyed every page of it. The book is set in the Dominican Republic and portrays the assassination of the Dominican dictator Rafael Leonidas Trujillo, and its aftermath, from two distinct points of view: during and immediately after the assassination itself, in May 1961; and thirty years later, in 1996.

In my opinion, the Nobel Committee made a fantastic choice, and Vargas Llosa is one the most admirable Peruvians ever lived.

Picture: San Francisco Chronicle, copyrights apply

Industry divided over mobile payment plans in Holland

2010-10-07T13:47:00.002+01:00

Industry experts have given a mixed response to plans by a consortium of Dutch banks and mobile phone operators to establish a nationwide mobile payments system by 2012.

On 9 September, Dutch banks ABN Amro, ING and Rabobank, and mobile phone operators T-Mobile, KPN and Vodafone signed a letter of intent to create a single, harmonised mobile payments system in the Netherlands. ‘It is technically and commercially feasible to introduce m-payments in the Netherlands. In 2012, it will be possible to pay at the check out [of shops] with your phone’, the consortium said in a statement.

“It is the first time that major banks and phone operators in a European country have all joined forces with regard to mobile payments”, said a Spokeswoman for ING Bank.

Quinten Kroes, Counsel at Allen & Overy, said: “With all three network operators and major retail banks on board, the new consortium has all the players needed to make m-payments really take off on the Dutch market”. Bart van Reeken, Partner at De Brauw Blackstone Westbroek, added: “This puts the telecom providers on top of customer data. It facilitates targeted marketing, may transform operators into advertising partners and raises interesting data protection issues”.

Dag-Inge Flatraaker, of the European Payments Council, believes it is key to ensure cross-industry cooperation in the mobile payments area: “This initiative will contribute to an evolution towards a Single Euro Payments Area for mobile payments. The Dutch initiative must be seen as an important step in this direction”.

Many experts, however, believe success is not guaranteed. “I am sceptical about any announcement such as this”, said Trevor La Fleche, Senior Research Analyst at IDC Financial Insights. “Payment mechanisms in Europe need to be more or less universal. It would be a disaster for every country in Europe to develop its own mobile payments scheme.”

Security is another concern. “It will be interesting to see whether [the consortium] will be able to convince consumers and retailers of the security of the new system”, said Peter Eijsvoogel, Partner at Allen & Overy. “The conditions of the security risks involved will play an important role.”

But Andrew Newsham, Spokesman for Rabobank, insists that consumers have nothing to worry about: “The payment software itself is located in a secure part of the SIM-card. No payment information is sent over the mobile network”.

Michiel Willems 2010. Copyrights apply. Published previously in E-Finance & Payments Law & Policy magazine.

New round of tube strikes in London

2010-10-04T13:59:00.004+01:00

Londoners on their way to work this morning - including me - were faced with another 24 hours of tube strikes. Millions of commuters were forced to look for alternative transport as most of the London underground tube lines were closed, suspended or delayed. Buses were packed, taxis in demand and many turned to bikes or went by foot. Below an impression of the morning spectacle at Waterloo station, together with Victoria, Euston, Kings Cross, Farringdon, Paddington and London Bridge the main hubs in the British capital.

Below: Pimlico station - on the Victoria line - is one of the hundreds of tube stations closed for the public today.

The public is losing its last bit of respect for Union leader Bob Crow, who is the mastermind behind the recent wave of tube strikes. A recent poll by the Evening Standard suggested that most Londoners do not (longer) sympathise with the strikers.

Picture of the week

2010-10-01T15:46:00.002+01:00

A cameraman tries to capture a shark up close and personal. 'Ocean of fear'.

Industry sceptical about UK-China copyright agreement

2010-10-01T15:26:00.003+01:00

The UK and China have signed an agreement that will see both countries work closely together on copyright issues. On 3 September, the UK Intellectual Property Minister, Baroness Judith Wilcox, signed the Memorandum of Under-standing on Strategic Cooperation on Copyright (MoU) with Liu Binjie, the Minister of the National Copyright Administration of China. Both countries agreed to seek coordination on copyright issues, exchange ideas and best practices, and improve IP laws.

Many experts are sceptical about the impact of the MoU, which defines itself as ‘a general framework for bilateral cooperation’. “I doubt whether the agreement will have any impact on copyright enforcement”, said Lewis Ho, Partner at Simmons & Simmons in Shanghai. “Websites in China blatantly make films and other copyrighted work available to the public. Some websites even receive funding from venture capital and are seeking approval to float on the stock exchange.”

Rico Calleja, Consultant at Calleja Consulting, said: “UK companies should not expect an instant improvement in protection of their IP in China and should continue to take a cautious approach”.

But a spokesperson for the UK Intellectual Property Office, insists that “the MoU is binding for both parties and reducing online piracy is certainly a very important aspect [of the agreement]”.

“Any initiative to improve the protection of IP through international cooperation in combatting counterfeiting and piracy must be welcomed”, said Andrew Tibber, Partner at Burges Salmon. “While there do not seem to be any concrete proposals as yet, a programme for raising awareness of the legal framework for protecting copyrights in China would give British businesses the confidence to expand into what is still perceived as a risky, but potentially lucrative arena.”

With the MoU, China anticipates to improve its business image. “This is the latest in a series of developments helping to position China as a safe trading ground for innovators”, said Adrian Tombling, Attorney at Withers & Rogers. “In October last year, the People’s Congress announced amendments to its country’s IP regime, bringing it into line with the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPs)”. TRIPs was established by the World Trade Organisation (WTO) in 1994 and sets minimum IP standards for WTO Member States.

In China, summer 2010

This article was previously published in E-Commerce Magazine, London 2010. Copyrights apply, also for Chinese

2010-09-27T15:47:00.000+01:00

During a recent journey through China I visited metropolitan Hong Kong, isolated Xi'an in central China and the southern city of Guangzhou. Here a few impressions of that magnificent country.

spending cuts in the UK

2010-09-13T14:16:00.001+01:00

My latest radio 1 report in Holland, about spending cuts and tax rises.
Click on the link and my item starts right away - in Dutch:

http://player.omroep.nl/?aflID=11404263&start=00:51:37

www.radio1.nl

New card to make Bangkok cashless

2010-09-13T11:29:00.001+01:00

Bangkok Smartcard System (BBS) has announced a partnership with Australian smart card developer Vix ERG to develop, design and deliver a smart card that can be used for micro-payments in Bangkok’s transportation, retail, service and tourism sectors.

The card can also be used as an access card at companies and universities. Nelson Leung, Executive Director of BSS, said on 28 July that “the system will initially provide support for an integrated payments solution for the Bangkok metro and transit systems”. It will then be extended to “provide support for micro-payments in Bangkok”.

With the launch of the card, BBS is attempting to take a major step towards the creation of a cashless society in Bangkok.

“[BBS’ mission is] to direct Bangkok towards a sophisticated cashless society”, said a Spokesman for BSS. “The card system makes payments easy for transit and retail networks. When consumers have the card, it means that they have less cash and fewer cards to carry as the card can also function as an employee or student card. Coin change problems are eliminated.”

Published in the August issue of E-Finance & Payments Law & Policy, copyrights apply.

Biggest US telecoms to give m-payments a major push

2010-09-13T11:27:00.001+01:00

The two biggest US mobile phone operators, AT&T and Verizon Wirless, are planning a partnership with Discover Financial Services and Barclays, two sources at Bloomberg confirmed to E-Finance & Payments Law & Policy.

Under the plans, which experts claim will give m-payments a major push in the US, payments would be processed through Discover’s network – the fourth biggest US payment processor – while Barclays would be managing customer bank accounts. AT&T declined to comment on the partnership, but did not deny such plans are being made. “Mobile payments are a next logical step for consumers and we are looking at new ways”, said Mark Siegel, Executive Director of Media Relations at AT&T. Laura Gingiss, Senior PR Manager at Discover, also did not deny the partnership. “I cannot say anything else than that Discover is evaluating technology solutions”, she said.

The plans would establish mobile payments through near field communication (NFC). Under the plans, payments will be made by waving a smart phone in front of a terminal.

Mobile payments are not as widely used in the US as they are in Europe and Asia. Dave Birch, Consultant at Hyperion, expects the US market to change soon. “While AT&T and Verizon may have taken the market by surprise, plenty of others will be rolling out mobile payments. This will serve as a pathfinder, steering the US in a similar direction to Europe and Asia.”

“This is definitely a game-changer”, said Richard Crone, Consultant at Crone Consulting LLC. "The one who enrolls is the one who controls, and the wireless carriers are the only ones that have the mobile credentials. This has become a race for enrollment.”

The partnership poses a direct threat to Visa and Mastercard, America’s biggest payment processors. “Mobile carriers have an advantage over Visa and MasterCard in the race to control the market because the phone companies have access to their customers’ mobile numbers and bank account information”, said Crone. “All other businesses, be it a bank or retailer, must first get their customers to opt-in, and register their mobiles.”

Crone also expects m-payments terminals to be installed soon in the US. “All new payment types start with merchant acceptance and big retailers are the sleeping giant in the US mobile payments race”, he said. “Trust me, the top 50 retailers will have a phone application by the end of the year.”

This article was published in the August issue of E-Finance & Payments Law & Policy, copyrights apply.

Maputo burning

2010-09-03T12:23:00.003+01:00

Some familiar streets on GMTV this morning. The news that more than 7 people have died in Mozambique's capital Maputo in the last two days took me by surprise.

When the first images came in, I had to think of a trip I made to the Southern African country - one of the world's poorest - several years ago; where have the days gone you could walk around Maputo freely, sit on the beach till dawn and play table football with some locals?

www.bbc.co.uk/news/world-africa-11168381

MOZAMBIQUE'S capital MAPUTO endured a second day of deadly rioting over rising food prices as the United Nations warned that the effects of a global spike in the cost of staples would hit the world's poor the hardest.

Shops were looted, cars set ablaze, roads barricaded and one of the Maputo protesters killed, bringing the death toll to seven after two days of violence prompted by soaring bread prices. One of the dead was a six-year-old girl on her way home from school. Youths have blocked roads with burning tyres. Troops have been deployed to restore order.

The US State Department and the UK Foreign Office have urged their citizens to avoid all unnecessary travel and remain at your residence/hotel, especially after dusk. The US and UK Embassies will only provide emergency ervices. All non-emergency embassy employees remain excused from duty.

http://www.theaustralian.com.au/news/world/deadly-riots-in-mozambique-as-food-prices-rise/story-e6frg6so-1225913714936

downtown Maputo

central Maputo

Sunrise in Maputo, seen from the north

in front of the Maputo train station, built by the Portuguese

Sjoerd found it hard to say no

going back to South Africa

Mozambique yesterday and today

Mozambique yesterday (picture BBC)

Maputo 2 Sept 2010, Australian.com.au

yesterday

Too secure for its own good

2010-08-23T15:39:00.003+01:00

The BlackBerry (BB) is under fire. Security issues have prompted countries around the world to consider taking measures that will limit the use of the smartphone.

The United Arab Emirates (UAE) announced in early August that, as from 11 October, BB users in the UAE will no longer be able to check their email, browse the internet or use instant messaging services. Saudi-Arabia (SA) had announced to do the same, although it has, for now, withdrawn a ban. Indonesia said on 4 August it is considering following the UAE’s move and India has indicated it might do the same. On 11 August, the German Interior Minister revealed that the German IT security agency has advised German Government officials not to use the BB any longer.

The reasoning behind this is that BB data is encrypted and routed overseas, sent through servers in Canada, where the BB manufacturer Research In Motion (RIM) is based. Since users need a national telecom provider in their country to access the RIM server, the UAE has banned its national operators to offer BB online services.

The BB is much more secure than other phones, since it makes messages far harder to monitor than those sent through domestic servers that authorities can tap into. So its excellent security features have actually become a security issue for a number of governments, for different reasons. The UAE wants a local BB server and data sharing deal so it can monitor its citizens’ messaging traffic, something RIM has – so far – refused. The German Government is uneasy about all its data passing through the RIM centre in Canada. India thinks terrorists use the BB because Indian security services cannot intercept the messages.

The matter has exposed the increasingly cross-border character of online technology. If the controller of a server or website does not wish to share its users’ data, governments hardly have any other possibilities than an outright ban.

RIM now faces the choice to switch to national servers, which governments can tap and which keep data in the home territory, or to hold on to its encrypted messaging server system through Canada, and potentially lose a lot of business.

If, for example, SA imposes a BB internet ban after all, it is expected millions of Saudis will switch to phones that do offer online services. As a result BB sales will drop and with more than 45 million BB users in SA alone, that is not something RIM is looking forward to.

Published in the August issue of E-Commerce Law & Policy Magazine. Copyrights apply.

Tag me if you dare

2010-08-09T10:08:00.006+01:00

In July, the social networking website Facebook celebrated the milestone figure of 500 million users, meaning that one in 12 people in the world have a Facebook account. For many people, Facebook has become a part of their daily life and the website’s growing importance has raised legal issues.

Although Facebook often escapes liability thanks to its Terms of Use (posts should not be ‘threatening, unlawful, defamatory, infringing or abusive’), the website has become a fertile ground for legal claims. Users against users. Apart from the ongoing discussion about its Terms of Use and privacy settings, one case in particular deserves attention.

The High Court of England and Wales awarded, on 27 July, £10,000 in libel damages to Raymond Bryce. Bryce took offence when a former friend posted an image of child sex abuse on Bryce’s Facebook page with the comment ‘Ray, you like kids’. Although the picture was removed within 24 hours, the image was ‘tagged’ (linked) to Bryce’s and 11 other profiles, allowing thousands of ‘friends’ to see the picture for hours after it had been posted.

Dr Ian Brown, from the Oxford Internet Institute, said: “This is worse in some ways than putting offensive posters on lamp posts because it’s going directly to your friends or colleagues. It is almost impossible not to see it”.

The case comes a year after the High Court awarded £22,000 to a businessman whose personal details were made public in a fake Facebook profile, created by a former friend. Although cases like these are still relatively rare - and it is not easy to build a libel case - the rulings emphasise that what is posted online has consequences. There is a very fine line between libeling someone and just poking fun at a friend or colleague, when innocent banter turns into libellous smear. Jeremy Clarke-Williams, Partner at Russell, Jones and Walker, said: “What a lot of people do not realise, users of Facebook and other social networking sites can be just as much subject to the laws of libel as other media outlets if the information, as in this case, is published online for third parties to view”.

However, even if someone has been subject to defamation, suing is not always the best option, according to Louise Fullwood, Legal Director at Pinsent Masons: “Going so far as to sue may be counterproductive in both drawing more attention to the comments made and often provoking ill-feeling and further actions”.

Published previously in the July issue of E-Commerce Law Reports, London 2010 - (c) 2010 CP Publishing

The 'other' side of London

2010-08-03T14:38:00.008+01:00

1200 pictures of the 'other' side of London, the ugly side that is. And since the city is so big, we divided the vast amount of images in different categories. Explore the city of Britan's capital you never saw before, from Bermondsey to Waterloo, and from Harrow to Lewisham, the decline cannot be avoided. The pictures were taken by Paul Talling (c) 2010.

Oman to equip ID card with electronic payment features

2010-08-02T11:35:00.002+01:00

The Sultanate of Oman is going to link e-payment options to national ID Cards, the Oman Information Technology Authority (ITA) has announced.

Under the 'e-Purse system', introduced last year to promote cashless and electronic payments in the Sultanate, ID cards will be equipped with payment features using an embedded application in the Smart chip on the ID card. According to Muhanna Moosa Baqer, ITA’s e-Payments Manager, “ID cards can soon be used for paying fees, driving licences, shopping, phone subscriptions, visa applications, parking and tollgate fees”.

“[Oman] puts a contactless e-purse on the national ID card as a way to kick-start the shift to cashless environments”, said David Birch, Director of Consult Hyperion. “As well as providing an alternative to debit and credit cards, it will help government departments to collect their payments.” The e-Purse system was introduced in May 2009. The first phase of this national e-wallet system began in July last year, allowing Omani citizens and residents to upload and store money on their national ID cards, in order to pay government and police bills. In the next few months, the system will be rolled out further. ITA stated that all major banks in Oman are participating so retailers will be able to collect payments via the ID card. “This is a prime example of how government agencies and private institutions can partner to improve services to the public”, said Bruce Palmer, Managing Partner of Curtis, Mallet-Prevost’s Muscat office. Abdullah Al Kalbani, Captain of the Royal Oman Police, said: “Since it is mandatory for every adult resident in Oman to have a national ID card this will help those citizens in Oman who have no bank accounts, who do not carry debit or credit cards”.

Mr Kevin Wong, General Manager of Astute Pte Ltd, the Singaporean company that is behind the development of the new Omani ID card, said: “The company is in discussions with the governments of Saudi Arabia, Kuwait, Bahrain and Jordan for a similar service”.

“The future of payments is the future of identity”, adds David Birch. “One could envisage, whether you think it is a good idea or not, a simple universal payment scheme that is linked to a single universal identity, a kind of galactic PayPal in which everyone participates.”

Review: Blackberry Stains

2010-07-26T16:25:00.000+01:00

Watched this short film recently, and I must say, what a nice piece of work! Genuinely enjoyed every minute of it. An intense story with an emotional feel, but brought lightly and realistic, that gives this short film its charm and makes it convincing and credible.

In short: two boys are abused by their teacher, the parents do not notice anything. In the end, of the boys kills the teacher by pushing him off a ladder.

The actor who plays the teacher/pedophile does a very impressive job, especially the scene in the car when one of the young boys (the friend of the main character) is so nervous ("sir, sir, sir") and knows what is coming. Truly heartbreaking and you feel a genuine need you wish you could punch that old pervert in the face, so he does an amazing job and manages to convince the viewer he is value for money.

The camera team managed to reach a professional level with some amazing shots. A few scenes in particular: where the boy is washing his face in the white bathroom - at the end of the film - or when the camera slowly approaches the car from the side, very nicely done for a (relatively) small budget film like this.

You can tell someone did spend time thinking about the right music. It suits the different scenes - different feelings and emotions - very well. It is present, but not mostly not dominating and that gives the movie a great feel. In particular, the transition from the last scene to the credits should be remembered, the music and the images seem to become one.

The casting was pretty good. I must admit I had to get used to Matthew's character the first few minutes, but the way he expresses himself and his body language suit the film very well. Although the young boys are clearly not experienced actors, Matthew's friend (the main character's friend) manages to move the viewer. The teacher is a truly impressive actor, it is difficult to deny he portrays a true creep and he is someone you want to keep away from your kids. The interaction between the preys and the hunter feels natural and not scripted. You can perfectly imagine how uncomfortable the boys must have felt. You forget they are on a script, and they manage to make the viewer feel genuinely angry and disgusted when you watch the unhealthy moments they go through. The mother does a decent job as well. It is a pity - but nicely played - she does not really pick up what Matthew says or what he is going through.

The tragic end is very understandable. It kind of seems to answer the desire of the viewer ('pull the ladder under the dirt bag's legs'), without being over the top. And it is a smart end to a short story. No happy ending, no police involvement or a teacher who gets away with it, but the anger built within which eventually finishes off this failed and morally lost teacher.
One of One Eyed Dog's finest productions.

http://www.one-eyed-dog-films.com/

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2010-07-25T15:25:00.001+01:00

My latest radio show in Holland, about attempts by the Mayor to get more Londoners to cycle. Click on the link and my item starts straight away (in Dutch)

http://player.omroep.nl/?aflID=11202701&start=01:21:30

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