[ISN] Baidu hacking lawsuit allowed to proceed

http://news.cnet.com/8301-1023_3-20011428-93.html

By Steven Musil
Digital Media
CNet News
July 22, 2010

Baidu, China's leading Internet search company, has a "plausible" case 
against its U.S.-based domain registry for allegedly allowing a hacking 
attack that left the site disabled and defaced, a U.S. judge ruled 
Thursday.

The order, signed by Judge Denny Chin of the U.S. District Court for 
Southern New York, allows Baidu to proceed with a lawsuit it filed 
against Register.com in January. Baidu's suit accuses Register.com of 
breach of contract, gross negligence, and recklessness related to a 
January 11 hack attack that left Baidu disabled for several hours. 
Visitors to the site during those hours were redirected to a site where 
a group calling itself the "Iranian Cyber Army" claimed responsibility 
for the attack.

"I hold that Baidu has alleged sufficient facts in its complaint to give 
rise to a plausible claim of gross negligence or recklessness," Chin 
said in his ruling. "If these allegations are proven, then Register 
failed to follow its own security protocols and essentially handed over 
control of Baidu's account to an unauthorized intruder, who engaged in 
cyber vandalism."

However, Register.com did score a partial victory when Chin dismissed 
five of Baidu's seven claims against the domain registry, including 
contributing to trademark infringement and aiding trespass. Register.com 
still faces breach of contract and negligence charges.

[...]


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