Settlement with 'Spam King' nets Microsoft US$7 million
Settlement with 'Spam King' nets Microsoft US$7 million
Aug 10, 2005: Microsoft has reached a full settlement of Microsoft’s claims against Scott Richter, the man dubbed the 'Spam King', and his company OptInRealBig.com LLC, with Richter agreeing to pay the software giant US$7 million, the bulk of which Microsoft has pledged to plough back into its various Internet safety partnerships.
As part of its widely publicised 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, sending an estimated 38 BILLION emails a year.
Richter has since dramatically scaled down his spamming, to the extent that in July of this year, he was removed from the Register of Known Spam Operators maintained by the Spamhaus Project, a leading anti-spam and consumer advocacy organisation.
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.
The settlement also stipulates that Richter, his company and his affiliates will continue to comply fully with all federal and state anti-spam laws and will not send spam to any person who has not confirmed a willingness to receive the email.
Microsoft will direct US$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 US$1 million to provide many community centres in New York state broader access to computers for underprivileged children and adults through Microsoft’s Unlimited Potential Program.
Richter said he had changed his emailing 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 emailing practices and have paid a heavy price. I am committed to sending email only to those who have requested it and to complying fully with all federal and state anti-spam laws.”
Microsoft’s senior vice president and general counsel, Brad Smith, expressed satisfaction regarding the impact of Microsoft’s litigation. “When we filed this action, Mr. Richter was listed as one of the top three spammers in the world. Because of this litigation, Mr. Richter has fundamentally changed his practices and forfeited ill-gotten gains. Microsoft looks forward to a permanent change in Mr. Richter’s practices.”
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