Chicago Business Lawyer Blog

A privacy lawsuit in Chicago accusing comScore, an online tracking and analytics firm, highlights the ongoing issues involving technology and privacy.

Intellectual property and technology attorneys in Chicago are seeing an increasing number of such cases. From privacy concerns involving Facebook, to allegations against Apple for tracking users of iPads and iPhones, technology continues to complicate privacy issues. Last year, Google's Street View car also came under fire after it accidentally collected reams of data from unsecured Wi-Fi networks.

In this case, the proposed class-action lawsuit accuses comScore of numerous alleged violations, including:

-Secretly collecting social security numbers.

-Collecting consumer data without permission.

-Changing security settings and opening backdoors into user systems.

-Stealing information from electronic documents.

-Redirecting user traffic.

-Injecting code into computer applications.

The Chicago Tribune reports that credit card information and passwords are also involved.

Two plaintiffs -- one from California and one from Illinois -- have filed suit claiming violation of their rights to privacy. The lawsuit seeks an injunction and damages, alleging that the company violated the Stored Communications Act , the Computer Fraud and Abuse Act and other statutes.

"The scope and breadth of data that comScore collects from unsuspecting consumers is terrifying," the 30-page complaint alleges.

A spokesperson for comScore denied the allegations and promised an aggressive defense. The company said it makes "commercially viable efforts" to purge itself of private consumer data whenever it's inadvertently collected.

comScore is a publicly traded company that provides Internet audience measurement statistics and customer tracking. It provides the information to some 2,000 customers, including advertising agencies and commerce sites.

The software behind such technology is usually downloaded onto a user's computer via other free products -- such as screen savers. In some cases, the user downloads the product to win entry into sweepstakes or because of other inducements.

It's the second high-profile tracking issue to surface in recent days -- earlier this month Microsoft came under fire after a Stanford University report accused the company of using "supercookies," to persistently track users. Microsoft agreed to immediately disable the technology.

Privacy advocates continue to sound the alarm -- particularly as more and more sensitive activities move online -- including banking and medical records. Several lawmakers have begun to consider Do Not Track legislation, which would permit consumers to opt-out in a fashion similar to Do No Call regulations. Still, privacy issues are bound to continue as new technology uses consumer data in a way never before anticipated.

The case is Mike Harris and Jeff Dunstan, individually, and on behalf of a class of similarly situated individuals v. comScore Inc, case no. 11-cv-5807. It was filed in U.S. District Court, Northern District of Illinois.

Continue reading "Chicago Privacy Lawsuit Highlights Ongoing Issues Involving Technology " »

With Google coming to Chicago, change will no doubt be coming to Motorola.

With the U.S. regulatory approval process ahead in the wake of Google's announced purchase of Motorola Mobility, there will be platoons of attorneys working on both sides of this deal. Even China is weighing in with claims that Google must seek its government approval. The $12.5 billion deal represented a 63 percent premium to Motorola's stock price at the time.

Chicago merger and acquisition attorneys should be consulted whenever two businesses merge, or one entity decides to purchase another.

Seeking qualified legal advice when dealing with the purchase or sale of a business in Chicago is critical. Common issues include:

-Strategy and Structure: Corporate structure, accounting and tax implications, personnel issues and a host of other legal considerations must be taken into account.

-Negotiation and Drafting: Non-disclosure agreements, term sheet, letter of intent, stock purchases, and asset purchase agreements are just a few of the legal documents that can have a major impact on your sale, purchase or merger. Getting them right -- and ensuring that they are drafted in the best interest of your company -- is critical to the long-term success of your business.

-Due Diligence: Preparing to hurdle the due-diligence threshold is often no easy task -- particularly when dealing with the sale of a private company. Likewise, it's critical that buyers make the most of due diligence. Few surprises at or after closing is typically the result of proper due diligence.

-Risk Management: This is the critical task of assigning responsibility for liabilities that occur before a deal's closing. This may include product liability or environmental concerns. Risk management is an area that can be particularly vital to both buyer and seller.

Google already supplies the Android operating system for smart phones. With the purchase of Motorola, Google is getting a once-proud company that invented the cell phone only to see its market share be taken away by more nimble competitors.

"Motorola Mobility's total commitment to Android has created a natural fit for our two companies," said Google CEO Larry Page. "Together, we will create amazing user experiences that supercharge the entire Android ecosystem for the benefit of consumers, partners and developers."

Industry watchers say a primary motivation for the purchase of Motorola was the control of its patents. As we continue to report on our Chicago Business Lawyer Blog, the patent wars among tech companies has made buying available patents a critical step in protecting against lawsuits.

The issues surrounding mergers and acquisitions are almost limitless. Already, the Chicago Tribune is questioning whether the move will result in layoffs at Motorola's headquarters or renewed vigor for the once-proud company.

Lower taxes could lure some of Google's workforce to Chicago. Relocating Motorola Mobility, however, could be devastating to the area surrounding its headquarters in Chicago's northwest suburbs. Motorola Mobility has about 3,300 Illinois employees.

Continue reading "Google - Motorola Mobility Deal Highlights Complexity of Mergers and Acquisitions in Chicago" »