Alleged Spammer Hit With $3.95M Judgment

LOS ANGELES — A federal judge has ordered the owner of a Canoga Park, Calif., Internet company to pay $3.95 million for illegally using Microsoft’s trademarks in “typosquatting” spam messages.

U.S. District Court Judge Manuel Real ordered that Daniel Khoshnood stop using Microsoft's trademarks and name, stop spamming, and pay damages and legal fees to the Redmond, Wash., software giant. The suit named Khoshnood and his companies, Pointcom and Joshuathan Investments.

Microsoft filed the civil case against Khoshnood last year claiming that the owner of Pointcom Inc. was abusing Hotmail and MSN email services by sending unsolicited emails misrepresenting an affiliation with Microsoft.

The “typosquatting” emails used subtle variations of Microsoft properties, such as wwmsn.com and bcentrals.com, and were presented as security patches or system updates. The messages were actually offering a toolbar for download that claimed to automatically update the user's Windows security.

But Microsoft claims that the messages were simply a series of links to Goto.com, which normally pays affiliates 3 cents for delivering traffic to its site.

Khoshnood was accused of sending millions of unsolicited email messages in violation of the Washington Commercial Electronic Mail Act and the Washington Consumer Protection Act. The case was filed in June 2003, before the federal Can-Spam Act went into effect.

Microsoft in court documents also alleged that Khoshnood, through Joshuathan Investments, had been named in no fewer than nine additional actions involving domain names that infringed upon the trademarks of America Online Inc., American Express Co., BMW AG, CompUSA Management Co., Expedia Inc., Grolier Inc., Infospace Inc., Southwestern Bell Yellow Pages Inc., and Sunglass Hut Corp.

According to Microsoft, the July 7 decision represented the company’s first summary judgment handed down in a case alleging illegal spamming, although the damages were awarded mainly for trademark infringement.

Microsoft attorney Aaron Kornblum told XBiz that the company is targeting and filing suits against the “most harmful spammers.”

“These individuals need to understand that their activity is illegal and that if they inundate consumers with spam they will be identified, targeted and sued,” Kornblum said.

Kornblum said Microsoft had been taking legal action against Khoshnood since 1997 and had entered into agreements with him to stop the trademark violations, but the agreements were breached.

Khoshnood could not be reached by XBiz for comment.

The case against Khoshnood and his companies isn’t the only one Microsoft has filed against alleged spammers.

Since launching an anti-spam initiative in early 2003, Microsoft has filed 60 lawsuits in the United States. The software giant so far has been awarded a total of $54 million in resolved cases, including four settlements and six default judgments.

One case involves XPays, which runs a large-scale online adult site affiliate operation in San Francisco. That case continues in King County Superior Court in Seattle.

The cases are Microsoft Corp. vs. Khoshnood, No. 03-4269, and Microsoft Corp. vs. XPays, No. 03-2-27988-9.

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

XBIZ 2027 Hotel Room Booking Now Open

Hotel booking is now open for XBIZ 2027, giving attendees the opportunity to secure their stay at the host venue, JW Marriott L.A. Live.

FSC Case Against Tennessee AV Law Can Go Forward, Court Rules

A U.S. district court on Tuesday denied the Tennessee attorney general’s motion to dismiss a Free Speech Coalition lawsuit challenging the Protect Tennessee Minors Act as unconstitutional.

AEBN Publishes Popular Searches for July, August

AEBN has published the top search terms for July and August from its straight and gay theaters in all 50 states and the District of Columbia.

2027 XMA 'Fan Favorite' Pre-Nominations Period Now Open

XMA event organizers have announced that the pre-nomination period for Fan Favorite categories for the January 2027 ceremony is now open.

California Legislature Passes Stricter UGC Rules for Adult Sites

A bill to impose tighter compliance standards for user-generated content (UGC) on adult websites has been approved by the California state legislature and now awaits the governor’s signature.

CollabGPS Rolls Out 'Verification Badge' Update

CollabGPS has launched a badge system for user verification.

X3 Amsterdam Imports Hollywood Glitz With Continental Style

A throng of fans from across Europe and around the globe descended on the Passenger Terminal building on Friday, eager to meet their favorite adult stars at the inaugural X3 Amsterdam fan expo.

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.

Show More