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Microsoft and Spam King Scott Richter announce settlement

August 09, 2005

 
Richter agrees to fundamental change of e-mailing practices, pays $7 million in damages.


 

 

 

 
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Microsoft and Scott Richter today announced they reached a full settlement of Microsoft's claims against Richter and his company OptInRealBig.com LLC.

As part of its effort to fight spam, Microsoft filed a lawsuit against Richter and his company in December 2003, when he was ranked one of the top spammers in the world.

The settlement is conditioned upon dismissal of the bankruptcy cases filed in March by Richter and OptInRealBig at the U.S. Bankruptcy Court in Denver. Richter and OptInRealBig plan to file today a motion to dismiss these cases.

As part of the settlement, Richter and his company agreed to pay $7 million to Microsoft. The settlement also stipulates that Richter, his company and his affiliates will continue to comply fully with all federal and state anti-spam laws, including the U.S. CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing) Act, and will not send spam to any person who has not confirmed a willingness to receive the e-mail.

Microsoft will direct $5 million of the settlement to expand the company's Internet safety partnerships with governments and law enforcement worldwide through technical training, investigative and forensic assistance, and the development of new technology tools. The company has pledged an additional $1 million to provide many community centers in New York state broader access to computers for underprivileged children and adults through Microsoft's Unlimited Potential Program.

Under terms of the settlement and to ensure compliance, Richter and his company have agreed to submit to three years of oversight.

 
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