Federal Appeals Court Allows Email Interception

BOSTON — A federal appeals court ruling this week could open the door to further interpretations of the federal Wiretap Act that could erode personal privacy rights.

In a decision by the 1st U.S. Circuit Court of Appeals with potentially profound implications, the court upheld a federal judge's dismissal last year of a wiretapping charge against a former Interloc vice president, Branford C. Councilman.

The government said that Interloc, a now-defunct online seller of rare books, tried to exploit the Amazon emails "to develop a list of books, learn about competitors and attain a commercial advantage."

Councilman had directed employees to write computer code to intercept and copy all incoming emails from Amazon.com to Interloc's subscribers — all prior to the eventual delivery of email messages to their intended recipients, the book dealers who had an email account with Interloc.

The government charged Councilman with conspiracy to violate the Wiretap Act; namely, to intercept an electronic communication and disclose its contents.

But Councilman argued that no violation of the Wiretap Act had occurred because the emails were copied while in "electronic storage."

He claimed the messages were in the process of being routed through a network of servers to recipients.

Because such messages were in "electronic storage," they were not intercepted for purposes of the Wiretap Act, Judge Juan R. Torruella wrote for the majority of the appeals panel.

The court said that messages in storage, however "temporary" or "intermediate" such storage might be, are not protected as electronic communications under the Wiretap Act.

In Tuesday’s dissenting opinion, Judge Kermit V. Lipez of the Boston-based 1st Circuit wrote that upholding Councilman's arguments "would undo decades of practice and precedent regarding the scope of the Wiretap Act and would essentially render the act irrelevant to the protection of wire and electronic privacy."

The Electronic Frontier Foundation immediately denounced the ruling, saying in a statement that the court "dealt a grave blow to the privacy of Internet communications."

Jerry Berman, president of the Center for Democracy and Technology, said he thinks the ruling “violates the letter and spirit of the statute," and that the ruling makes it acceptable for companies that offer email service to surreptitiously track subscribers' messages.

"It puts all of our electronic communications in jeopardy — voice mail, email, you name it," he said.

The case is United States vs. Councilman, No. 03-1383

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

California, Florida Reps File Latest Bill to Repeal Section 230

Two members of Congress on Thursday introduced new legislation to repeal Section 230 of the Communications Decency Act, which protects interactive computer services — including adult platforms — from liability for user-generated content.

Admaze Introduces Flat-Rate Media Buying for Publishers, Advertisers

Adult ad network and agency Admaze has introduced a flat-rate media buying model for publishers and advertisers.

Centro Launches Lifetime Revenue Share Affiliate Program 'CentroPulse'

Centro has launched CentroPulse, its new lifetime revenue share affiliate program for performance marketers, adult traffic affiliates, established webmasters, and sub-affiliate network operators.

Fanstage Launches Telegram Sales Solution

Fanstage has launched its new platform, allowing creators to sell PPV content directly from their Telegram DMs.

Second Bill Proposed to Shield US Sites From 'Foreign Censorship'

For the second time in recent weeks, a Republican congressman has introduced legislation to bar U.S. courts from helping to enforce foreign laws restricting speech that would domestically be protected under the First Amendment, potentially including foreign age verification laws.

SextPanther Launches in EU, UK

SextPanther has expanded its territory to include the U.K. and E.U.

Segpay Expands to Australia, Names Sam O'Connell Managing Director

Segpay has expanded its territory to include Australia and named Sam O’Connell as managing director of its Australian operation.

Ondato Joins ASACP as Corporate Sponsor

Age and identity verification company Ondato has signed on as the latest corporate sponsor for Association of Sites Advocating Child Protection (ASACP).

2026 XBIZ Amsterdam Conference Schedule Announced

XBIZ is pleased to announce the release of the full show schedule for XBIZ Amsterdam, set to take place Sept. 10-13 at Passenger Terminal Amsterdam.

Ukrainian Legislators Revive Porn Decriminalization Push

The Verkhovna Rada, Ukraine’s parliament, is once again considering a bill that would decriminalize the creation and distribution of pornography in that country — an activity that currently carries a prison sentence of three to five years.

Show More