Microsoft wins $7m spam fine case

Microsoft has succeeded in a legal case brought against a company considered to be one of he world's top three spam e-mailers.

In the case, which was taken against Scott Richter's company OptInRealBig for "illegal internet practices," under federal law, Microsoft alleged that millions of unsolicited e-mails had been sent using forged sender identities and false subject descriptions.

In a statement Brad Smith, Microsoft VP and General Counsel said: "This week, as a result of legal action by Microsoft and the New York Attorney General against one of the world’s most prolific spammers, Microsoft is expanding its successful partnership with government and law-enforcement authorities against illegal practices on the Internet.

"Self-proclaimed 'Spam King' Scott Richter has agreed to pay $7 million in damages, pending approval by the court."

Mr Smith pledged that after covering legal expenses for the case, Microsoft would "reinvest $5 million dollars to increase our Internet enforcement efforts and expand technical and investigative support to help law enforcement address computer-related crimes."

As part of the settlement, Richter has agreed to send e-mail only to those who have requested it, complying fully with all federal and state anti-spam laws. In turn he is to move to have bankruptcy cases against OptInRealBig dismissed at the US Bankruptcy Court in Denver.

According to Microsoft, Mr Richter had changed his e-mailing practices in part because Microsoft and the New York Attorney General sued him in December 2003.

“In response to Microsoft’s and the New York Attorney General’s lawsuits, we made significant changes to OptInRealBig.com’s e-mailing practices and have paid a heavy price,” Mr. Richter said. “I am committed to sending e-mail only to those who have requested it and to complying fully with all federal and state anti-spam laws.”

However prior to this agreement being reached, Microsoft estimate that Richter's marketing company was responsible for sending more than 38 billion e-mails-a-year.

(SP/KMcA)