Do Business, Regulatory Realities Trump Constitutional Principle in Gag Orders Fight?
Large tech companies' ability to operate overseas may hinge largely on their challenges to gag orders prohibiting them from informing their customers of government collection
May 09, 2017 at 01:22 PM
14 minute read
Silencing some of the biggest technology companies is no small feat. But for many federal authorities, it is becoming an increasingly common endeavor. Empowered by Section 2705 of the Stored Communications Act, the federal government is prohibiting tech companies from notifying customers of the legal collection of their data, sometimes indefinitely.
But large technology companies like Microsoft and Adobe are fighting back, arguing that such “gag orders,” infringe on their and their customers constitutional rights. While some of these challenges have found limited success, a final word on the legality of Section 2705 gag orders may be a long time coming. But these gag orders represent not only a potential infringement on the rights of large tech companies, but a business and regulatory threat that is fought with little downside.
To hear tech companies explain it, challenging these gag orders is in large part a matter of constitutional principle. In a blog post in April 2016, Brad Smith, president and chief legal officer at Microsoft, called his company's legal fight “an issue of fundamental rights.” He explained that Section 2705 gag orders “violate two of the fundamental rights that have been part of this country since its founding,” referring to the 1st and 4th Amendments.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllTrending Stories
- 1LSU General Counsel Quits Amid Fracas Over First Amendment Rights of Law Professor
- 2An Eye on ‘De-Risking’: Chewing on Hot Topics in Litigation Funding With Jeffery Lula of GLS Capital
- 3Arguing Class Actions: With Friends Like These...
- 4How Some Elite Law Firms Are Growing Equity Partner Ranks Faster Than Others
- 5Fried Frank Partner Leaves for Paul Hastings to Start Tech Transactions Practice
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250