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MySpace Wins A Settlement Against Spamming by TheGlobe

The News Corp owned MySpace.com, a popular social networking site, reached a settlement with TheGlobe.com after filing a lawsuit against it for sending 400,000 spam advertising e-mails to users of MySpace.

MySpace.com did not outline any terms and conditions, but according to TheGlobe.com's regulatory filing early in May 2007, the settlement valued about $2.55 million. Red Herring reported this on May 31, 2007.

MySpace complained that TheGlobe.com, based in Florida, delivered unwanted e-mails to users of MySpace from more than 95 fake accounts. MySpace filed several lawsuits against spammers and phishers over the past two years of which TheGlobe.com suit is one. In this too, TheGlobe.com tried to capture passwords and personal information via e-mail.

In February this year, a Federal Court blamed TheGlobe.com for violating the CAN SPAM Act, a business law applicable in California, and the terms for using MySpace. MySpace doesn't merely prohibit spam though it imposes "liquidated damages" at a high rate of $50 per spam mail delivered.

In addition, the court demanded explanation from TheGlobe.com under California Business and Professions Code Section 17529.5. The code bars transmission of e-mails to and from California e-mail ids that have fake, misleading or forged subject lines.

TheGlobe.com is answerable for every spam mail it delivered to MySpace users dating from March 18, 2006. The resulting losses were equivalent to $5.5 million. However, both the websites mutually settled for an agreement whose monetary terms are strictly confidential. TheGlobe.com even agreed that it would not use MySpace in any commercial form.

The answerable e-mails estimate to only 110,000 out of 400,000 junk messages sent. That means a significant difference for owners of both the sites. It also acts as a warning for spammers around the world that they would be held responsible for their actions.

This ruling would be an additional help in protecting MySpace users from spam and phishing, said Hemanshu Nigam, chief security officer for MySpace. The company hopes to make it clear that it would take strong steps against violators of the law and destructors of its members' experiences, Hemanshu added in his statement. Digital Trends published this, May 31, 2007.

Related article: MySpace Wants Apple To Update QuickTime

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