Smiling Bob And Ecstasy - Courts Continue To Struggle With the Intersection of Technology and The Fourth Amendment

Two recent cases highlight the problems that courts have with the confluence of technology and the Fourth Amendment prohibition against unreasonable search and seizures.

The Sixth Circuit Court of Appeals held that compelling a defendant's internet service provider to turn over the defendant's e-mails without a warrant violated the Fourth Amendment.

The Supreme Court of California held that the search of a smart phone that was on a defendant's body when arrested could be searched without a warrant.

The Sixth Circuit Case involved the makers of Enzyte, a herbal supplement that employed a very annoying "Smiling Bob" and a plethora of thinly disguised puns and props to indicate that the supplement would increase the size, durability and apparently the appearance of your external genitalia.  Imagine our surprise when the makers and distributors were accused of deception, fraud and a number of other transgressions, including money laundering.  During the investigation, the government compelled an internet service provider to release e-mails more than 180 days old without getting a warrant.  The government relied on a provision in The Stored Communications Act 18 U.S.C. §§ 2701 et seq., which allowed for such shenanigans when the e-mails were of such an age.

The Sixth Circuit held that the defendants still had a reasonable expectation of privacy in such old e-mails and held that portion of the Stored Communications Act as unconstitutional.  The court likened the internet service provider to the post office or the phone company and noted that interception of a letter or a phone call could not be done without a probable cause warrant.  The court said an e-mail was entitled to the same stature.

The California case involved an accused seller of Ecstasy, the amphetamine fuel of choice for all night "raves" or for extended sexual encounters.  In this case, the defendant Diaz attempted to sell Ecstasy to a police informant.  A sale was made, an arrest ensued and Mr. Diaz's cell phone was taken from his person.  An hour and a half later, back at the station, an investigator looked at text messages on the phone and found the text: "6 4 80".  This apparently means that the defendant offered to sell six tablets for $80.  The defendant was shown the text and promptly confessed.

Upon appeal, the defendant claimed that the phone was searched without a warrant and therefore the text and the subsequent confession should be excluded.  Courts faced with similar issues in the past have held that the search of the person and the immediate area incident to a lawful arrest without a warrant is acceptable in order to check for weapons or check for evidence that might be lost.  The California court held that the cell phone “was an item [of personal property] on [defendant‟s] person at the time of his arrest and during the administrative processing at the police station" and was therefore “immediately associated with [defendant‟s] person and that the warrantless search of the cell phone therefore was valid".

In a dissenting opinion, justices stated that the nature of the cell phone i.e. that it basically amounts to a pocket held computer should warrant (pun intended) a distinction between such devices and weapons, paint chips and crumpled cigarette packages, items that had been approved for search in cases on which the majority relied.  The majority cited cases that stated explicitly that the validity of a warrantless search does not depend on the character of the searched item.

It is unlikely that the result would have been the same if a the defendant had been holding a laptop at the time of arrest and a subsequent warrantless search was made of the laptop.  This ruling probably deserves some further consideration and refinement.  Stay tuned.

App Developers Need to Pay Attention to the DMCA Ruling on Jailbreaking the iPhone

A recent ruling by the Library of Congress on the Digital Millennium Copyright Act (DMCA) resulted in large changes for cell phone users. The Copyright ruling spoke to several issues on circumvention, but for our discussion today, we shall discuss jailbreaking. Jailbreaking is the process of bypassing cell phone software allowing the user to purchase cell phone applications other than ones required by the cell phone manufacturer (here’s some info on the subject). This ruling has large implications in the app development community and could change the face of apps and cell phones … or according to others - do nothing.

First, when I was discussing this with some friends of mine the first question most had was, “Say what?! Why is the Library of Congress speaking on jailbreaking and who gave them authority? How is jailbreaking a Copyright issue?” So before I go into an analysis of the ruling, a quick rundown of the logistics of this might be in order.

The Library of Congress governs the United States Copyright office (it’s actually a division of the Library of Congress), and as such the Librarian of Congress discusses certain rules from time to time. Okay?! But this still doesn’t answer why this is a Copyright issue. In 1996 there were treaties passed by the World Intellectual Property Organization (WIPO), and the DMCA is the implementation of those treaties. These treaties covered several aspects of IP law, but for this post the relevant area of the treaties implemented into the DMCA dealt with the prohibition of circumvention of technology measures that control access to copyrighted works. In other words, this gave the Copyright office the ability to govern technologies on cell phones that protected copyrighted works, such as applications. As a result, the Librarian of Congress can determine if things such as jailbreaking of phones should be legal or not.

The Librarian of Congress, stated jailbreaking a cell phone was an exception to the general rule of prohibiting people from circumventing certain Copyright protection technologies. Namely, you can jailbreak the iPhone and buy “non-App Store” apps for it. The ruling states:

“Persons who circumvent access controls in order to engage in noninfringing uses of works in these six classes will not be subject to the statutory prohibition against circumvention.

(2) Computer programs that enable wireless telephone handsets to execute software applications, where circumvention is accomplished for the sole purpose of enabling interoperability of such applications, when they have been lawfully obtained, with computer programs on the telephone handset.”

 

Therefore, you can bypass certain iPhone access controls if you are going to legally purchase a non-Apple application for your iPhone.

As you can imagine, Apple doesn’t want this to happen for multiple reasons, and they are doing much to ensure the ruling has no effect on the app market. First, Apple states that if a user jailbreaks the iPhone they will breach their end-user license agreement (EULA). This breach would relieve Apple from its obligation to provide a warranty, repairs, and anything stated in the agreement. Additionally, Apple will continue to develop updates of its software attempting to outsmart the jailbreak engineers. There will be a continuous back and forth of Apple updates and the soon to follow jailbreaking updates. As a result, it might make the process too difficult for the end user keeping them from jailbreaking the phone. But currently that doesn’t seem to be the case. A developer going by the name Comex has been flooded with so much interest in the new Jailbreakme 2.0 software, his site is crashing from too much traffic. I have spoken with some app developers that believe ultimately the consumer will not want to risk losing the warranty, so most things won’t change. However, what occurs when the warranty runs out?

It’s no secret that Apple has a significant market share in the cell phone and application market. The Android markets have been gaining ground, but Apple still maintains a solid position in the market. Prior to this ruling, the iPhone, iTouch, and iPad were all limited to apps from the iTunes App Store. The popularity of these products fuels application development to be more Apple based. Currently, if you are developer, you are going to develop for Apple first and then the Android or other platforms second (if at all). Now that the powers that be say no violation occurs when jailbreaking your iPhone, other application sites will undoubtedly begin to arise. Getjar, an application site already in existence, is about to hit 1 billion downloads. However, iTunes has almost three times as many applications and Apple has stated that they have already surpassed the 5 billion downloaded apps milestone producing over a billion dollars for app developers (leaving Apple with $300 million).  Creating a market others will want to cut into. This ruling will no doubt assist in the loss of significant application market share.

Apple makes its money off the iPhone, but how much will the new app markets affect the purchasing of the iPhone? I recently wrote about Apple’s firm position in governing its operating systems and the type of code and applications that would be submitted. Apple believes that flash is a poor system and that it frustrates the Apple OS, so flash products cannot be utilized in app development for Apple. However, flash is not the only restriction with Apple (percentage of sales, procedure of approval, etc.). If other markets begin to lure other developers away from the Apple market higher quality applications will be developed and be sold at other app stores

So what will be the repercussions of new application sites? I assume with the creation of several application sites new license agreements will arise. The freedom to negotiate price, term, programming platforms, etc. will affect how licensing is accomplished in this arena. Although many other outcomes will arise from this ruling, one issue developers will face is how they go about licensing their applications. There won’t be the standard app development agreement as the only option anymore. Competition should likely create flexibility in these otherwise strict agreements. Therefore in developing apps, the creators should begin to realize the popularity of the application could be beneficial for the new app store itself and provide options to the now standard boilerplate agreements.