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Dana Dana Blankenhorn has been a business journalist for over 25 years and has covered the online world professionally since 1985. He founded the "Interactive Age Daily" for CMP Media, and has written for the Chicago Tribune, Advertising Age, and dozens of other publications over the years.
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January 25, 2006

Porn Fight Kills the E-Mail Guy

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Posted by Dana Blankenhorn

matthew%20prince%20unspam.jpgEveryone hates spam. But there has been no political constituency potent enough to fight the well-organized Direct Marketing Association, which has successfully defended spammers from meaningful regulation for a decade.

Now Matthew Prince, a young Chicago lawyer, thinks he has the answer. Porn. Well, anti-porn.

Using the Christian Right as his political base Prince’s company, Unspam Inc., has gotten laws passed in Utah and Michigan that could both make him rich and make most e-mail disappear. While fighting for the law in a Utah court, he has taken his show on the road to Georgia, Illinois, Wisconsin and Minnesota, trying to get identical laws passed there.

The laws create a “do not porn” registry, run by Unspam, that e-mailers must filter their messages through. Anything in an e-mail deemed “harmful to minors,” even in a link, becomes a felony. Not just porn offers, but alcohol, tobacco, gambling, firearms and illegal drugs are covered. Parents on the list get the right to sue for up to $1,000 per message (Utah) or $5,000 per message (Michigan). There are also criminal penalties, including jail time.

Prince spends money through his “base,” using Susan Zahn’s WDC Media (the same folks used by Christian broadcasters) for his PR, and emphasizing the porn angle in his releases. An Unspam press release sent out via Webwire identifies only the porn industry as fighting the new laws.

But the direct mail industry is now energized as well. WindowsSecrets editor Brian Livingston put out an article on Earthweb last year blasting Prince as essentially a patent troll. (The company has filed U.S. patent application 20040148506 to protect its registry, he says.) Prince claims he wins his registry contracts through competitive bids, but if you got the law through and patented the required technology, well, you figure it out. (I should note here that WindowsSecrets is an e-mail newsletter, so Livingston would have to filter his lists through Unspam if the law holds up in court.)

A recent Wall Street Journal story on Unspam estimates compliance costs this way:

Businesses are charged $7 for every 1,000 email addresses examined each month in Michigan, and $5 per 1,000 in Utah. Companies must have their lists examined once a month. A company with a list of 100,000 emails would pay $14,400 annually to have its list examined by both states. Unspam receives the majority of the revenue to administer the registry, and the rest goes to the state.

Livingston disputes the WSJ conclusions. He says monthly screening won’t protect e-mailers, that 85% of the money goes to the state. He then offers two illustrations of how easy it would be for the law to be abused:

  • A conservative activist puts her e-mail address, which is also used by her daughter, on a state registry. The listing takes 30 days to become effective. She then e-mails a health clinic for information about morning-after pills. If the clinic replies with the information, the sender is guilty of a felony.
  • A liberal activist registers his and his son's e-mail address. After 30 days, he e-mails a gun dealer, asking for product listings. If the dealer replies with details, he's guilty of a felony.

After flying somewhat under the radar for most of the last year, Prince has now gotten the attention of both the marketing industry and of e-rights groups like the Electronic Frontier Foundation. But he has also had time to hone his pitch – porn, porn, porn – and given the Bush Administration’s new War on Porn he has powerful allies in Washington.

The battle has just begun.

Comments (1) + TrackBacks (0) | Category: Business Models | Business Strategy | Politics | Telecommunications | e-commerce | law | marketing | online advertising | spam


COMMENTS

1. Chad Steele on February 5, 2006 05:36 PM writes...

The spam email problem can be fixed with a very simple law. Make spoofing an email address a felony and require all email sends to be authenticated by an SSL certificate. This would not effect an end user wanting to send an anonymous email. Non authenticated email would be subject to spam filters and all normal blocking procedures


Anytime the christian right(oxymoron) is involved in anything it is a ironclad guarantee that it will be screwed up beyond all comprehension.

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