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

BranditScan Rolls Out 2 New Platform Features

BranditScan has introduced its new Traffic Optimization and Doxing Protection features for creators.

NMG Management Partners With Cosplayground to Scale Distribution

NMG Management has partnered with Cosplayground to expand the studio’s digital distribution and licensing operations.

Dreamcam Rolls Out 'Voice Translator AI'

Dreamcam has introduced a Voice Translator AI to its livestreaming platform.

UK Government May Limit 'Step' Porn Ban With New Amendments

The U.K. Ministry of Justice on Friday revealed new government amendments to the pending Crime and Policing Bill, potentially limiting a pending ban on “step” content to apply only if adult performers role-play as minors.

Arizona Senate Removes 'Catch-22' Provision From Consent Bill

The Arizona State Senate has amended a bill that would impose new requirements for adult content uploaded online, removing a seemingly contradictory provision that could have effectively made it impossible for adult sites to operate in the state.

Climaxx Media Launches Networking Platform

Climaxx Media has officially launched its new networking platform.

Italian Court in Aylo Case Limits International Reach of AV Rules

An Italian administrative court has ruled that Italy’s recently-enacted age verification rules for adult content may not currently be enforced against sites based in other EU member states, pending further procedural action under the EU’s Directive on Electronic Commerce.

OCC, FDIC Prohibit Use of 'Reputation Risk' by Regulators

The Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) on Tuesday issued a final rule codifying the elimination of ‘reputation risk’ as a criterion in their supervision of financial institutions.

Wisconsin Governor Vetoes Age Verification Bill

Gov. Tony Evers on Friday vetoed AB 105, an age verification bill that would have allowed anyone to sue adult content providers for damages over alleged failure to age-verify users in Wisconsin, with penalties of up to $10,000 per violation.

FSC Releases Statement on Wisconsin Governor Vetoing AV Bill

The Free Speech Coalition has released a statement on Wisconsin Governor Tony Evers' veto of the state's age verification legislation.

Show More