MySpace Wins Another Lawsuit Against Another Famous Spam King

from the richter-goes-down-again dept

Just a month after MySpace won a huge fine against famed spam king Sanford “Spamford” Wallace, it’s now won its lawsuit against another big name spam king: Scott Richter, who it sued a year and a half ago. Richter and his father (who runs the company) are claiming victory in that the fine is only $6 million — when MySpace had been asking for much more. You may notice that I’m not linking to coverage of this story, since right now it appears that only the Associated Press is writing about it — and, as you may have heard, the AP has decided it doesn’t want bloggers linking to its stories. Fair enough. Update: Here’s the News.com coverage.

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Companies: myspace

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Comments on “MySpace Wins Another Lawsuit Against Another Famous Spam King”

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17 Comments
John (profile) says:

I agree

I agree with poster #11: sure, MySpace “wins”, but will they collect? Probably not. If the spammer has a good lawyer (and I bet he does), they’ll appeal the case for years and years without having to pay anything to MySpace.

And is a $6 million judgment really effective against spammers? I would bet that they could just save their money for a few months, pay the judgment, and write it off as a cost of spamming users on MySpace.

Willton says:

Re: I agree

I agree with poster #11: sure, MySpace “wins”, but will they collect? Probably not. If the spammer has a good lawyer (and I bet he does), they’ll appeal the case for years and years without having to pay anything to MySpace.

No, they won’t appeal this decision. First, every day that the spammer delays payment is another day that interest accrues on the award, making it more expensive to pay the $6M. Second, this was a binding arbitration decision under the Federal Arbitration Act, which allows for expedited review. The FAA only allows for vacatur of an award in extremely limited circumstances, such as the arbitrator was fraudulent or exceeded his powers. Thus, if MySpace moves to confirm the award in federal court, they can get judgment rendered pretty swiftly.

Further, if the spammer refuses to pay, MySpace can order seizure of the spammer’s assets, and if that doesn’t work, MySpace can take a loss on its tax return, thereby alerting the IRS that the spammer may be committing tax evasion.

Alex says:

Poster #13

Richter has said he will pay and I bet he will because MySpace won $230 million against 2 of Richter’s “affiliates” Wallace and Rines. (I wonder how much these two made for Richter if a Federal Judge determined they owe MySpace $230 million)

If Richter appealed, he would probably be order to pay more. He got lucky with arbitration.

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