Volume III

Issue : 9: May 5, 2005

• New Yorks Highest Court Upholds Internet Cigarette Sales Regulation
• Asian-Pacific Regulators Increase Efforts to Combat Spam
• Hackers to Assist the British Parliament
• IBM Sued For Security Breach
• New York State Takes Aim at Internet Companys Use of Spyware
• Bush Signs Family Entertainment and Copyright Bill
• Canada Included on U.S. List of Countries Requiring Improvements to Digital IP Laws

Home > Volume III > Issue 9: May 5, 2005 > IBM Sued For Security Breach

IBM Sued For Security Breach

A large warehouse club operator in the Eastern United States has sued IBM, claiming that IBM's software caused a breach of the club operator's credit card database. One of the main concerns with the software is that the software apparently stores credit card information on computer logs, which are vulnerable to hacking. Many credit card companies now prohibit such storage.

The lawsuit seeks millions of dollars in damages for financial losses relating to the breach, including losses for fraudulent credit card purchases made using the stolen data. IBM is placing high hopes on the limitation of liability clauses in its contract with the club operator.

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