Microsoft Extracted $7 Million from "Spam King" in Settlement

As described in an open letter from Brad Smith, Microsoft's General Counsel, Microsoft announced that it is expanding its partnership with government and law-enforcement authorities against illegal practices on the Internet. This is a result of legal action by Microsoft and the New York Attorney General against one of the world’s most prolific spammers. Self-proclaimed “Spam King” Scott Richter has agreed to pay $7 million in damages, pending approval by the court.

After covering its legal expenses for the case, Microsoft plans to reinvest the remainder. Of the residual, $5 million dollars will be dedicated to increasing Microsoft's internet enforcement efforts and expanding technical and investigative support to help law enforcement address computer-related crimes. Another $1 million of the settlement fund will be directed to New York State through the Microsoft Unlimited Potential donations which help community centers to expand computer-related skills training for youths and adults.

We occasionally poke fun at Microsoft and toss a few barbs their way but this settlement is a victory for all consumers, including Mac users, who rely on the internet because it means fewer unwanted emails will appear in one's inbox. Richter has agreed to send e-mail only to those who have requested it, complying fully with all federal and state anti-spam laws. Before changing his practices, Richter sent, and assisted others in sending, more than 38 billion emails a year. Of course, this legal victory will not end spam, but it is a significant contribution given the huge amount of spam sent by Richter. Hopefully, he will comply with the settlement in spirit as well as in letter. More... [Bill Fox]