Article update: the New York law to require web sites to collect sales tax has been signed in to law, ands it is now drawing lawsuits from e-commerce sites.

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Last week, New York Governor Eliot Spitzer introduced–and quickly withdrew–plans to require Internet retailers who use affiliate marketers in that state to collect sales tax payments.

This would not have technically been a new tax on New Yorkers, who are already required to pay sales tax on goods purchased online. The state, however, lacks an effective collection mechanism for this, and although residents are asked to report such purchases on their annual tax forms, few ever do. So while it would not be a new tax, it would certainly result in new revenue.
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I recently sold a house in a market where all brokers with access to the Multiple Listing Service required a 6 percent commission. The agents had signed agreements to charge a standard commission in order to have access to MLS. Local laws prevented rebating any portion of that fee. It seemed anti-competitive at the time, and I recall thinking how much easier it was to process online sales.

Now these practices are drawing new federal scrutiny. The Department of Justice has set up a website to promote competitive new forms of real estate brokerage, many of which are Net-based. The FTC has brought prosecutions against brokers for collusion against Internet-based brokers.

The real estate industry is reacting with alarm to the new scrutiny. “I’d rather pay 6 percent in commission than lose the biggest homeowner advocate in the world,” says Blanche Evans, publisher of Realty Times.

The Internet has brought profound changes to business models in the travel industry and journalism. This new attention to anti-competitive practices in real estate could open the door to accelerated restructuring in the real estate industry, or introduce new opportunities for competition.

1. Posters and Reproductions of Historic French Patents
Just in time for the holidays, the French Patent Office suggests giving historic patent illustrations. Presented as posters or copies of original applications, these distinctive prints will stand out as unusual gifts for equally distinctive recipients.
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In a potentially precedent-setting trial, Tiffany & Co. has sued eBay for contributory trademark infringement, claiming the online auction company allowed the sale of counterfeit Tiffany jewelry on its site. The case is likely to turn on whether, as Tiffany charges, “eBay turns a blind eye to fraud,” or whether eBay’s responsible moves to prevent and aid in the prosecution of such actions immunize it from this complaint.

IP maven Ron Coleman cheers Tiffany on.  However, Law.com provides great attention to brands such as Calloway Golf, which says it gets “excellent cooperation from eBay” in protecting its brands using eBay’s Verified Rights Owner (VeRO) Program. Another measured endorsement came on NPR from jewelry maker Judith Ripka, who described eBay as pretty responsive.

This case is part of a larger trend of brand holders going after online markets for contributing to the competing actions of a third party. And though they both might deny it, there’s greater direct competition between the two than you might expect.

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Facebook’s latest roll-out saw CEO Mark Zuckerman flanked by a cadre of blue-chip advertisers, new Microsoft investment, and a big new idea. Facebook says it’s positioned to drive “product demand” and create a potential new 400-billion-dollar-a-year marketing channel through Social Ads.

The plan is to use members’ online statements and actions as content, to be included with targeted advertising. So if Facebook knows who your friends are, it can feed you news about how they use the products advertisers want you to buy. Here’s an example.

But is the implicit consent in having taken a public action, or Facebook’s Terms of Use Agreement, enough to make this use legal? Its been just a year since Facebook’s and Zuckerberg’s last privacy fumble. This move could make Facebook the next decade’s Google–or the last decade’s CompuServe.

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If you have a question or comment, feel free to send it along. Fields marked with an asterisk are required fields.

Northeastern University apparently holds a patent on techniques for parallel data processing, useful in dividing search requests between multiple computers. It exclusively licensed the 1997 patent to a Waltham-based start-up, Jarg Corporation. Lawyers who had seen a presentation on Google’s data search processes tipped off Jarg executives to the possibility of infringement.

There are several factors that should make us initially skeptical about the validity of this claim. Continued

Harvard’s Citizen Media Law Project has introduced its newest service, a Legal Threats Database to catalog the growing number of lawsuits, cease and desist letters, and other legal challenges faced globally by those engaging in online speech.  

It organizes cases using standard forms to make it easy to check their status and trial details.  So far, I’ve found the results to substantially lag the news, but it’s an excellent way to research topics and validate other sources.

It’s the first of several related initiatives funded by the John S. and James L. Knight Foundation.  Next, expected are a set of state-by-state law guides for citizen journalists and bloggers in early 2008.

“I wonder how far off we are from ceasing to issue traditional press releases altogether… after all, no news agency could possibly suggest they reach a greater portion of the planet than the internet.”
                                           – Jonathan Schwartz, CEO & President
                                              Sun Microsystems

Sun Microsystems President Jonathan Schwartz announced on his corporate blog that financial results would be reported on the company’s website and RSS feeds prior to their release to online news services.

This may not seem like a sea change, but it embodies Sun’s focus on “0penness” and their interest in the direct delivery of digital content. Its a good marketing move, and is the result of a policy discussion which took place largely on blogs. Continued

Part 2 in a series of 3.  (Read Part 1 | Part 3 )

In addition to the popular Second Life (SL), how many of these virtual worlds exist? Gobs, and it’s getting more gobby every day. The folks over at TechCrunch.com have a chart that describes a number of the more well-known virtual worlds. Still more can be found on Virtual Worlds Review.

Some are successful in niches like Club Penguin – which Disney has just purchased for $700 million August. Some offer monitization through advertising, eCommerce tools, and natrurally a wide range of term addressing intellectual property protections.
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