Spamhaus $11 million fine thrown out

Appeal court quashes earlier e360 compensation ruling.

Anti-spam operation Spamhaus, previously ordered to pay $11 million to mass-mailing firm e360 Insight after refusing to contest a case accusing it of falsely labelling those behind e360 as spammers, has had the fine thrown out in an appeal court.

The case was first brought last autumn, and after initially challenging the charges Spamhaus withdrew from the case, as the US court in which it was brought had no jurisdiction over the organisation's UK-based operation. e360 was thus granted a default ruling in its favour, with the $11.7 million fine called for based on its own uncontested evaluation of the damage caused by Spamhaus filtering out its mails. The spam fighting organisation was also ordered to apologise publicly and to remove e360 from its 'ROKSO' list of known spammers in perpetuity - another ruling whose legality has been questioned by the appeal court.

The appeal court ruling still grants 360 the case, due to Spamhaus' refusal to contest it, but has passed the settlement award back to the lower court to be analysed more closely. Spamhaus continues to include e360 on its list of spammers, and has suggested e360 brings the case to a UK court, where its activities would fall under stricter anti-spam laws. Attempts by e360 to have Spamhaus's domain registration revoked have been ignored by US courts.

A Wired.com blogger looks into the case in more detail here, and carries a full copy of the latest ruling (in PDF format) here.

07 September 2007

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