Thank you for visiting the Euclid Managers, LLC Weblog. For the past 5 years, our blog has been primarily dedicated to providing professional liability insurance coverage news and analysis for the internet, tech and media industries. We hope you enjoy reading our blog entries and we welcome your story ideas. Our blog is updated with new entries on about a bi-weekly basis so please bookmark our site or just use our RSS feed. Need sample claims? Visit the Claim Examples section of our Blog. Try our Comments feature. You are not required to register or provide your email address. Just click on the “post a comment” link at the bottom of the entry, type your feedback, and click on the “create post” button.
Scent Technology
PC World is reporting on some interesting new gadget patents including one for seeing 3D without the special eyewear as well as one for utilizing avatars as means for heckling a television or movie actor you don’t enjoy, complete with the virtual rotten tomatoes. But it’s the patent for scent technology that caught our eye as we haven’t seen anything reminiscent of Smell-O-Vision for a while. Is a scent used in movies or advertising considered a type of content? Could be. Will a professional liability policy cover it? Possibly. Check to see if scent is included in the definition of content or matter. If scent is not specifically mentioned in the definition then a definition that allows the content to be in any nature or form might be broad enough to encompass scent. Or not. Good idea to get it clarified if the insured is utilizing scent technology.
Security Threat Predictions for 2010
As the new year begins, it’s typically time for lists, including lists of top security threats. BitDefender suggests netbooks, mobile operating systems and social networks are among the vulnerable. ZDNet proposes Mac and iPhones are facing increased vulnerability because of their growing popularity. McAfee includes cybercriminal activity targeted to Adobe Reader and Flash in its list of security threats. For an overview of security threats, Network World has a review of many of the 2010 predictions from multiple sources. Overall, social networking appears to be one of the most frequently mentioned security exposures for 2010. But social networking isn’t necessarily a new threat as it was also listed as one of the top security exposures in 2008.
Texting and Employee Privacy
The Supreme Court has agreed to hear an appeal on a case involving text messaging privacy. Whether or not employees have a right to privacy when texting on employer-owned devices is an issue of keen interest to many employers and employees alike. But this case may not have a sweeping application as the matter pertains to a city and its employee rather than the private sector. Simply, the case involves privacy under the fourth amendment protections, which differ between private and government employees. In his Technology and Marketing Law blog, Eric Goldman offers a good round-up of what the law firms are saying about the case as well as some insights as to why the Supreme Court has agreed to consider the case. While speculations may persist until the Supreme Court renders its decision, the consensus on operating procedures suggests employers should maintain an electronic communications policy (and follow it) and employees should avoid private communications on company time or equipment.
Twitter Litigation
Twitter is the top word of 2009, beating out Obama, H1N1 and stimulus. Other tech terms and phrases making the top list include 2.0 and cloud computing. Of course Twitter can’t be that popular without creating an opportunity for litigation. Some Twitter scenarios:
New Virus Is Reminder of Security Issues
There’s a new virus infecting iPhones in Australia that replaces the phone owner’s own wallpaper choice with a pic of Rick Astley. The photo features a message; “ikee is never gonna give you up.” Interestingly, the virus only affects an iPhone if it has had its built-in security system altered, which Apple disallows in its developer program licensing agreement. The virus works by exploiting users who have not changed the phone’s default password. While this virus appears more irritating (amusing?) than harmful, it is a reminder of the importance of quality passwords, or at least a reminder not to use the default one that comes with the phone or whatever software or system. Further, for third party security insurance coverages, it’s a reminder that security threats can impact more than an office computer or network. So, looking for security coverage that contemplates mobile devices is prudent. Sometimes, the failure to prevent introduction of malicious code or virus policy language will be limited to computer systems or networks and an expansion to include other media containing content is necessary. For a refresher on additional security issues, read LJ’s lists of what to watch out for.
Update to previous post: Bloggers Are Advertisers?
The FTC has published its final revisions to its guide for how to keep testimonial ads and endorsements in compliance with the FTC Act.
Key provisions include
*Customer testimonials that describe unusual results must include clear disclosure of what a typical result is instead of just tacking on a “results not typical” disclaimer.
Two Surveys: A Look at Personal Data Protection
A survey of about 500 companies conducted by Imperva and Ponemon Institute studied the level of compliance with the Payment Card Industry’s Data Security Standard (PCI DSS). The results show that 71 percent of the companies surveyed do not view data security as “a strategic initiative across the enterprise.” Further about half of the companies surveyed indicated that they are not “proactive in managing privacy and data protection risks.” Twenty-five percent of the respondents said they are not currently compliant with PCI DSS requirements. The other 75 percent had varying levels of compliance.
